Local IT firms seek role in toll collection

Domestic technology companies are seeking opportunities to be involved in the collection of tolls from roads and bridges built with public funds.
The Bangladesh Association of Software and Information Services (BASIS) recently sent a letter to the Bangladesh Public Procurement Authority (BPPA), seeking a provision for joint ventures in the process, which would enable new-generation firms to participate and provide innovative solutions like AI-driven toll systems.
Hashim Ahmed, secretary of BASIS, issued the letter, and a copy was sent to the secretary of the Implementation Monitoring and Evaluation Division (IMED) under the planning ministry, said sources.
BASIS said in the letter the current procurement process for toll collection favours foreign players and lacks quality control, which may result in project inefficiency and the misuse of public funds.
It emphasised a large number of local IT companies have the expertise to handle such tasks but are often sidelined due to monopolistic practices.
Several information technology entrepreneurs said toll collection contractors are selected through the procurement of non-consulting services (PSN) method, which was introduced to hire non-technical people for human-oriented work.
Toll collection has now become complex technology-oriented work with the introduction of artificial intelligence, electronic toll collection, digital payment, and other automation processes, they said.
They also said the existing PSN method does not allow joint ventures in bidding and local companies cannot get involved in toll collection due to the absence of experience even though they have capabilities.
AKM Fahim Mashroor, former president of BASIS and CEO of AjkerDeal.com, told The Financial Express there is a need to ensure automation in toll collection to ensure transparency and domestic IT companies are capable in this regard.
"Over a dozen local companies are providing software services for foreign clients," he said, asking why domestic firms would be deprived of participating in toll collection bidding in the country.
He urged BPPA to start engaging domestic companies in toll collection considering the existing pressure on foreign exchange reserves, as well as the possibility of employment generation and the expansion of IT and IT enabled services in the country.
A senior BPPA official said the government had earlier made a preliminary decision to allow joint ventures in the PSN method.
The BASIS letter accelerated the activities in this regard, he also said.
The letter said the lack of a quality control mechanism in the existing PSN method often results in abnormally low bids. Such practices could lead to substandard project implementation and the potential misuse of public funds.
BASIS emphasised over 3,000 local IT companies, many with a strong track record of international and domestic success, are capable of executing toll management projects. However, monopolistic practices and political influence have excluded them from these opportunities.
The association recommended allowing joint ventures in toll management tendering to enable local firms to gain experience and compete effectively.
It also urged the government to modernise toll collection practices by adopting AI-driven and automated systems, moving away from outdated methods that require vehicles to stop at toll booths.
The association stressed the need for inclusive policies to support the domestic IT industry, which has become a key contributor to the national economy through software development and export.

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