Dhaka, Bangladesh (BBN)– The Dhaka Chamber of Commerce & Industry (DCCI) has urged Public Private Partnership (PPP) Authority to form a Public-Private Infrastructure Platform immediately.
The request was made while the board of directors of DCCI led by its President Abul Kasem Khan called on Chief Executive Officer of Public Private Partnership (PPP) Authority Syed Afsor H. Uddin on Sunday.
During the discussion Abul Kasem Khan said that 47 Projects costing US$14 billion has been principally approved in PPP office.
Bangladesh is placed at the bottom, ranking 177 in the World Bank report “Doing Business 2018”, he said. Consecutive fall in doing business index hurts the potential of foreign investment in PPP projects.
“To improve the rank in Ease of Doing Business and investment position, PPP Authority can work with BIDA in a shared taskforce for focused improvement of underperforming criteria in doing business index.”
The infrastructure Investment to GDP trend is discouraging and still below 5.0 per cent. The Infrastructure investment to GDP was 2.87 per cent in 2016 which increased to 2.96 per cent of GDP in 2017.
On the other hand, the private investment and GDP is currently 23 per cent which is to be raised to 29 per cent.
For minimum 5.0 per cent infra Investment, we require additional BDT 425.10 billion equivalent to $5.45 billion fund each year, the DCCI chief added.
He said proposed to form “National Infrastructure Development and Monitoring Advisory Authority” (NIDMAA) to faster implement and monitor large mega infrastructure projects.
The DCCI requested to include private sector in the PPP Board for faster implementation of PPP projects in future.
He also proposed to form an Infrastructure Bond under the stock market for facilitate financing of large infrastructure projects.
CEO of PPP Authority Syed Afsor H. Uddin underscored the importance of forming a Public-Private Infrastructure Platform and a National Infrastructure Plan.
The PPP CEO said that for proper and timely implementation of mega projects, a national infrastructure execution committee can be formed.
He pointed out some challenges in timely execution of PPP projects for instance finance, skilled manpower, lack of specialist project delivery team and lengthy procedures in feasibility study.
He also said that by the year 2018 about US$1.6 billion will be spent for about 13 mega PPP projects which include road sector, township, tourism sector, health sector, port sector and industrial sector.
He further said that in terms of investing in PPP projects the investor will get tax and VAT exemption for 10 years from the time of operation.
DCCI Directors Engr. Akber (Al) Hakim, Andaleeb Hasan, Humayun Rashid, Salim Akhter Khan, Waqar Ahmad Choudhury and Secretary General AHM Rezaul Kabir were also present.