JBS Vol 15. Num 2. 2013 - The Performance and Challenges of Public-Private Partnership (PPP) Projects in Bangladesh

Like many other countries, Public-Private Partnership (PPP) has been appreciated as an important way out for infrastructure development in Bangladesh. Though there have been recent successes in institutional and regulatory framework, other critical issues like transaction expertise and PPP financing facilities are yet to be boosted in the country. There also needs to be a strong incentive for the executing agencies that will bring more bankable PPP projects for the private sector. So far, around 40 private sector infrastructure projects have been completed in Bangladesh with a total investment value of US$ 2.93 billion, and around 40 additional projects are in the national pipeline. Many PPP projects that were awarded earlier are not performing well due to weaknesses in transaction processes. Under the circumstances, it is essential to evaluate the effectiveness of the existing PPP project framework in Bangladesh. This paper analyzes selected PPP projects in Bangladesh to draw lessons in view of the institutional, regulatory, project financing, and other policy relevant issues. The paper specially focuses on upfront project development constrains and corresponding solutions for creating a greater PPP-enabled environment in the country.