Bangladesh: Public-Private Partnership Program Operationalization

Sovereign Project | 44316-012 Status: Closed

Summary

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Project Name Public-Private Partnership Program Operationalization
Project Number 44316-012
Country Bangladesh
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7691-BAN: Public-Private Partnership Program Operationalization
Technical Assistance Special Fund US$ 1.00 million
TA 7691-BAN: Public-Private Partnership Program Operationalization (Supplementary)
Technical Assistance Special Fund US$ 225,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Education - Education sector development

Energy - Energy sector development and institutional reform

Finance - Finance sector development - Infrastructure finance and investment funds

Public sector management - Public expenditure and fiscal management

Transport - Transport policies and institutional development

Water and other urban infrastructure and services - Other urban services

Gender Equity and Mainstreaming No gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

Government has appointed a professionally experienced Chief Executive Officer for the PPP Office from the private sector. The PPP Office operates out of a commercial office complex located in a key commercial business district. The PPP Office has approached its full complement of staff and has begun ordinary business operations. Applying the screening criteria developed under the TA, the PPP Office has identified a number of PPP pilot projects and has received In-Principle Approval from the Cabinet Committee on Economic Affairs to pursue further development of a subset of these projects.

The MOF PPP Unit operates separately and independently from the PPP Office, fulfilling its check-and-balance' function looking after fiscal viability of PPP projects. The government has successfully sanctioned its PPP investment support vehicles Viability Gap Fund, PPP Technical Assistance Fund and Bangladesh Infrastructure Finance Fund. The Government has capitalized each of the fund vehicles with public funds. The MOF PPP Unit has transferred day-to-day operating responsibility of the PPPTAF to the PPP Office which is now being used to procure professional consultants and advisors to further develop the approved pilot PPP projects.

Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

The PPP Office and MOF PPP Unit have been formally constituted and are fully operational. At the Government's request, the TA project team has drafted a national PPP Law to further strengthen institutional and operational arrangements of the respective offices and the policies and processes they administer under the national PPP program. The Draft PPP Law was extensively reviewed by stakeholders, including in inter-ministerial meetings, translated into Bangla as required under GOB procedures, and has now been approved by the Cabinet. It awaits enactment by Parliament.

The organizational structure for both implementing agencies has been agreed and adopted by government. The processes, procedures and policies governing MOF PPP Unit operations have been drafted, approved and adopted.

The processes, procedures and policies governing the PPP Office, and, by extension, the operations of the national PPP program have been finalized and have been presented to the Cabinet Committee on Economic Affairs for sanctioning. These measures, however, are already being applied under the gazetted authorities of the PPP Offices.

The deliverables under the PPP TA project were delivered according to the elapsed time schedule envisioned and under budget.

The Government requested ADB to extend its support under TA-7691 to 31 December 2013 in order to receive needed support to evolve practical implementing rules for selected processes under the PPP policy.

Activities have been initiated to financially close the TA.

Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design

The TA team has consulted with the following entities specifically in preparation of this proposal:

- Prime Minister's Office - scope of work and specifications for PPP Office

- Ministry of Finance, Finance Division - scope of work and specifications for MOF PPP Unit, BIFF

- Bangladesh Bank - scope and nature of BIFF

- Economic Relations Division - review of entire TA program

- Infrastructure Investment Facilitation Center - role in supporting operating PPP Office

- RSA Capital - consultations on BIFF

The Team has held informal discussions with the following government entities regarding projects they have designed and sought to implement, challenges they have encountered, and desires for the future:

- Bangladesh Bridge Authority

- Ministry of Communications

- Ministry of Local Government

- Power Division, Ministry of Power, Energy and Mineral Resources

The Team has also held informal discussions with the following regarding their experience with and their assessment of the conditions of private sector initiatives in infrastructure within Bangladesh. contacts in the private sector, with particular focus amongst prospective project developers

- Dhaka Chamber of Commerce and Industry

- Foreign Investors' Chamber of Commerce and Industry

- American Chamber of Commerce in Bangladesh

- Asia Foundation, Bangladesh

- The World Bank, Bangladesh country office

- Project developers in power and transportation (preferred to remain anonymous)

During Project Implementation

At the Implementing Agencies' request, the TA team launched a comprehensive stakeholder outreach program designed to solicit the maximum feedback and input from concerned stakeholders. To date, more than 30 Government ministries and departments have been consulted, including both senior and subordinate members of those government bodies.

Consultations with the private sector have also been conducted, including five domestic chambers of commerce and industry and five bilateral foreign chambers of commerce as well as individual financial institutions, domestic and foreign companies. The PPP Office and ADB have supported dialogue on the PPP program through participation in chamber of commerce events, media releases and focus group consultations. In December 2012, a Global PPP Investors' Forum was held in Dhaka, chaired by the Honorable Prime Minister. Pilot PPP projects were debuted to investors during the event. The event attracted over 650 public and private participants and built a global profile for the Bangladesh PPP program.

Through coordination with ADB, outreach has been maintained to ADB development partners of multilateral and bilateral development agencies active in Bangladesh.

Business Opportunities

Consulting Services

International expertise (four consultants, 21 person-months) will be required in the areas of PPP commercial and/or financial advisory, legal, technical, environmental, and social safeguards. The national consultants (five for 23 person-months) will have expertise in finance, infrastructure policy, legal, and information technology. ADB will engage the consultants in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time).

Under the enhanced scope of the TA, 2 international consultants and 3 national consultants, will be recruited on an individual basis, totaling 13 person-months of consulting services.

Responsible Staff

Responsible ADB Officer Lise Weidner
Responsible ADB Department South Asia Department
Responsible ADB Division Office of the Director General, SARD
Executing Agencies
Prime Minister's Office
Old Sangsad Bhaban, Tejgaon, Dhaka 1215

Timetable

Concept Clearance 22 Nov 2010
Fact Finding 06 Dec 2010 to 09 Dec 2010
MRM -
Approval -
Last Review Mission -
Last PDS Update 25 Mar 2014

TA 7691-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Dec 2010 21 Dec 2010 21 Dec 2010 30 Jun 2011 31 Dec 2013 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,225,000.00 0.00 200,000.00 0.00 0.00 0.00 1,425,000.00 06 Dec 2010 988,490.30

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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