Bangladesh enacts Public-Private Partnership (PPP) Act, 2015

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Bangladesh enacts Public-Private Partnership (PPP) Act, 2015

The government of Bangladesh has enacted a public private partnership (PPP) law, PPP Act 2015, to improve the country's infrastructure.

This announcement comes after Sheikh Hasina, Prime Minister of Bangladesh, approved the law this month.

The PPP law, to streamline the legal status of PPPs and foreign financing of projects, has been developed during the last three years. The new law expands the definition and process of government procurement to add concessions. It expects to boost, among others, the expansion of energy utilities and the development of public transportation infrastructures. 

The PPP act has been structured over 7  chapters, after the initial chapter on preliminaries and definitions:

  • Chapter 2 provides for the establishment of a PPP Authority, which shall be neutral and independent in relation to all financial, administrative matters and in carrying out its functions.
  • Chapter 3 sets out the provisions for the identification and approval of PPP projects. The Cabinet Committee on Economic Affairs (CCEA) is mandated to provide the in-principal and final approval for PPP projects.
  • Chapter 4 broadly covers the selection of a private partner to develop and execute PPP projects.
  • Chapter 5 of the PPP Act emphasizes the importance of transparency in the implementation of the PPP program.
  • Chapter 6 identifies some of the key issues that should be covered in a PPP contract.It also provides for land access rights and the right of the private partner to impose levy on users for accessing public services or purchasing public goods.
  • Chapter 7 sets out a number of miscellaneous measures covering issues such as grievance procedures, confidentiality, etc.

According to Afsor Uddin, CEO of Bangladesh's PPP office, Bangaldesh will have US$100 billion in infrastructure investment during the next five years.

The government of Bangladesh has Tk30 billion (US$377.3 million) to finance PPP projects through the Bangladesh Infrastructure Financing Fund (BIFF). The PPP office also has Tk1 billion (US$12.6 million) for conducting technical surveys on projects. In addition, a total of Tk4 billion (US$50.3 million) has been kept as a viability gap fund to inject money into projects.

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