The Public-Private Partnership (PPP) program in Bangladesh is making strides toward success, as more PPP projects come to fruition. The recent completion of the first phase of the water distribution PPP project in Purbachal New Town marks a significant milestone.
Prime Minister Sheikh Hasina declared the project's Commercial Operations Date (COD) in a virtual ceremony On February 2, 2023. This project represents the first instance of direct private sector participation in the water sector in Bangladesh, setting a new standard for future PPP initiatives in the country, read a press release.
The Purbachal New Town Project (PNTP), being developed by RAJUK, is set to become the largest planned township in Bangladesh.
Spanning a massive 6,227 acres, the project is divided into 30 sectors and will offer a total of 25,016 residential plots ranging from 3 to 10 katha, as well as numerous commercial, administrative, institutional, and educational plots.
With 8 high-rise apartment blocks, 8 blocks for low-income groups, two government housing complexes, and five RAJUK office and residential complexes, PNTP will provide ample housing options for a diverse range of people.
What's more, the project has been meticulously planned to ensure that all urban facilities and social infrastructure needs are met, making it a highly attractive destination for those seeking a modern and sustainable living experience in Bangladesh.
The Purbachal New Town Project (PNTP) has already handed over approximately 16,000 residential plots to their owners, with a significant demand for water supply facilities from the residents.
The Regulatory Authority of Bangladesh (RAJUK) has been working tirelessly to construct and develop reliable water supply facilities in the area to ensure residents have access to potable water.
This is because the successful development of any proposed township is largely dependent on the availability of adequate water supply facilities. These facilities provide the necessary foundation for developing residences and other public infrastructure.
Recognizing the vital importance of water supply facilities, RAJUK has undertaken a PPP project to develop them in the PNTP area.
With an expected population of 1.6 million, the demand for water is projected to reach 340 MLD by 2050. The project will develop a water supply system along the 320 km road network of PNTP, with a design capacity of 340 MLD.
The construction time for the project is four years, with an additional 11 years for operation and maintenance. The project will be implemented in four phases, and Chinese United Water Corporation and Delcot Water Limited will jointly implement it.
This project marks the first PPP project in the water sector in Bangladesh, and its total cost is estimated at Tk 592.39 crore.
Upon completion of all four phases, the Special Purpose Vehicle will run the water supply for the next 11 years to recover their investment and make a profit. RAJUK will provide Tk 57 crore every year during this operational period. Once the project is completed, it will be handed over to RAJUK at no cost.
The WASH sector in Bangladesh has several public-private partnership (PPP) projects in the pipeline. The demand for clean water and sanitation services in the country has led to the development of more projects to meet the needs of the growing population.
Among these projects are the Central Effluent Treatment Plant in Bangabandhu Sheikh Mujib Shilpa Nagari, Integrated Wastewater Management Project under Gazipur City Corporation, and Water Treatment and Supply from Meghna River by the Chattogram WASA for Mirsarai Bangabandhu Industrial Park.
Additionally, the Chattogram Metropolitan Sewerage Project for Patenga Catchment-6 by Chittagong WASA is also being considered for development under the PPP model. These projects have been approved in principle by the Cabinet Committee on Economic Affairs (CCEA) and are expected to be implemented under different PPP models.
The Purbachal New Town project has set precedence for these PPP projects. Currently, the PPP Pipeline in Bangladesh has 78 projects worth more than USD 38 billion. The Mongla Port Jetties, Dhaka First Elevated Expressway, and part of Dhaka Bypass Toll Road projects are expected to be operational in 2023.
In conclusion, the recent completion of the Purbachal New Town water distribution PPP project in Bangladesh marks a significant milestone for the country's public-private partnership program.
This project has set a new standard for future initiatives in the country and provides a vital foundation for the successful development of the largest planned township in Bangladesh.
With the growing demand for clean water and sanitation services, several other PPP projects in the WASH sector are in the pipeline, indicating the continued success of the program. The country's commitment to partnering with the private sector to drive development will undoubtedly have a positive impact on the economy and the lives of its citizens.
The article is written by two PPP experts - M Murshed Haider and AM Al-Amin
