Dhaka, Bangladesh (BBN)– The Asian Development Bank (ADB) and the Bangladesh Public–Private Partnership Authority on Thursday signed a transaction advisory services agreement to expand road connectivity.
The deal will pave the way for a public-private partnership project (PPP) to prepare and develop a major access road to boost connectivity and cut traffic congestion in central Dhaka.
The Rampura-Amulia-Demra PPP road will provide much needed and improved connectivity between the highways from Chittagong and Sylhet, and central Dhaka.
The project also complements ADB’s existing support to Bangladesh’s Roads and Highways Department for inter-city road connectivity under the South Asia Subregional Economic Cooperation Project.
The PPP project will develop a four-lane 13.5-km access controlled road. As part of its advisory mandate, ADB will carry out a feasibility study for the $200 million project, develop a bankable PPP structure, and organize a competitive tender process to select a suitable private sector partner.
A transparent competitive tender process is expected to deliver the best value for the construction, operation, and maintenance of the road, and will help in developing a template for PPP roads in Bangladesh.
ADB has been a long serving supporter of Bangladesh’s PPP program, including providing technical assistance that helped pave the way for the passage of the country’s PPP law in September 2015, and in the preparation of PPP projects.
“We are highly encouraged by the progress made by the Government of Bangladesh and its PPP Authority and we are excited to expand our support through this transaction advisory services agreement which will help structure viable and bankable PPP projects,” said Ryuichi Kaga, Head of ADB’s Office of Public–Private Partnership (OPPP).
In September 2014, ADB established the OPPP to provide independent transaction advice on specific deals and to develop broader PPP knowledge in the region.