Professional Documents
Culture Documents
1. Executive Summary
This report is devised to find out the Challenges, Plans, current status and framework of the
Public Private Partnership (PPP) projects in Bangladesh. It is a widely accepted avenue of
delivering public goods and services. Besides, it can act as a catalyst in developing infrastructure
if we can fit it into the reality of our country. Efforts have been made to highlight some existing
PPP projects of Bangladesh and explore the prospective areas which can best-suit such projects
in the country. One of the key findings of this study is the lack of institutional and legal
framework for PPP in Bangladesh which is hindering the successful implementation of such
projects in the country. At the end, some recommendations have been developed for smooth,
sound, and sustainable run of PPP in Bangladesh.
Public- Private Partnership (PPP) describes a government service or private business venture
which is funded and operated through a partnership of government and one or more private
sector companies. The term public refers to government including both central and local level
state institutions. This review has grouped both the profit private sector, and non-profit NGOs
under the term private sector. It also highlights PPP potentials, infrastructures, roles of PPPs as
well as advantages and disadvantages of PPP in Bangladesh.
2. Introduction
PPP involves a contract between a public sector authority and a private party, in which the
private party provides a public service or project and assumes substantial, technical and
operational risk in the project. In some types of PPP, the cost of using the services is borne
exclusively by the users of the services and not by the taxpayer. In other types (notably the
private finance initiative), capital investment is by the private sector on the strength of a contract
with government to provide agreed services and the cost of providing the service is borne wholly
or in part by the government. Bangladesh has been facing many development challenges since
gaining independence in 1971. To overcome some of these challenges, the country requires
significant investment in energy, transport, and water supply infrastructure and several other
sectors. In mid-2009, a policy encouraging public-private collaboration was included by the
Government of Bangladesh in the national budget legislation, but it lacked clear guidelines on
how to put the government's intentions into practice. Due to the absence of clear guidelines, most
of the budget allocated for partnerships by the government was not utilized and the intended
public private engagement did not take place. The PPP policy is currently administered under the
Prime Minister's Office (PMO), indicating high level support for its effective implementation.
The PPP policy and strategy was published in August 2010. The government has also allocated a
significant amount of money in the FY 2011 budget to take PPPs forward.
people who are getting richer every day and amassing wealth beyond measure. An average of the
income of the common people and that of rising wealthy community may rise from time to time,
but that does not indicate a real income growth. Parameters of growth stretch far beyond and
involve series of socio-politico-economic challenges, some of which are mentioned below:
1. Absence of inclusive growth:
2. Absence of family/ social bonding:
3. Ensuring institutional capacity building and good governance:
4. Providing equal opportunities for local and foreign investors:
5. Maintaining a balance between local versus imported products:
6. Maintaining political stability:
7. Managing rise in unemployment:
8. Ensuring demand driven and profession oriented education:
(PPP) projects and other innovative models to deliver infrastructure, utility and other services in
an environment-friendly manner. Vision 2021 Goals:
1.
2.
3.
4.
5.
6.
7.
8.
A Perspective Plan (2010-2021) and two five year plans, 6th (2011-2015) and 7 th (2016- 2020),
were to implement Vision 2021.
Plan Goals and Targets 7th FYP
Income and poverty
Sector Development
Macroeconomic Development
Urban Development
Human Resource Development (Education, Health and Population)
Water and Sanitation
Energy and Infrastructure
Gender equality, income inequality and social protection
Environmental Sustainability
ICT Development
Innovation.
Transparency of process.
B.
C.
D.
E.
cost efficiencies
Time-to-delivery savings
Improved response to market forces
Broad support
Insecurity
Inefficiencies
Culture gap
Short term rigidities
Hold-up problem
Public sector staff concern
Dhaka-Elevated Expressway
Hemodialysis Centre at Chittagong Medical College Hospital
IT Village at Mohakhali
Development of Integrated Tourism & Entertainment Village at Coxs Bazar
Upgrading of Dhaka Bypass to 4 Lane
Flyover from Santinagar to Mawa Road
Dhaka-Chittagong Access Controlled Highway
Economic Zone 5: Anowara, Chittagong
Improvement of Hatirjheel
New Modern Medical College & Hospital of 250 beds on the unused land in Khulna
2nd Padma Multipurpose Bridge at Paturia-Goalundo
4.3
PPP can promote local economic growth and employment opportunities. The third world must
not depend only on the donors for infrastructure investments. Private-public combined efforts
will have the greatest effect in this sector. The previously predominant areas like energy,
transport, water and sanitation, education and health provide a good offer for the private
organizations and the public bodies to apply the financial acumen and managerial skill while
sharing the risks associated.
The prospective sectors under PPP could be the following:
Information Technology
Pure Drinking Water
Industry
Health and Family Welfare
Education (particularly secondary and technical) and Research
Housing
Climate management
5.2 Conclusion
PPPs have become more globally prominent in recent decades as contractual partnerships where
responsibilities and risks are shared between the public and private sectors. Research findings on
the effectiveness of these partnerships are mixed: while there is some evidence of production
cost efficiencies arising from PPPs, much of this may be cancelled out by higher transaction
costs. On balance, evidence suggests PPP performance is probably no worse than traditional
public sector operations done under contract with private sector, and better than older forms of
public works department projects. PPPs also appear to deliver infrastructure more quickly than
through traditional methods. There is not much to cheer about PPP in Bangladesh. Every year,
PPP allocation had to be reverted due to lack of implementation. Unlike Bangladesh, many
countries have succeeded in implementing PPP projects. It is a matter of optimism for
Bangladesh that many ASEAN and SAARC countries are among the list of the stand-out
performers. In the process, countries have managed to increase productivity without putting any
stress on government revenue.