PPP project payments should depend on quality: Experts

Experts have urged the government to ensure that the payments in projects, particularly those under the public-private partnership (PPP) model, are made based on implementation quality and if they meet international standards.

They also called for forming a dedicated cell to monitor and reduce the waste of time and money in projects, attract more investors for PPP projects and make the line ministries more active to implement projects on time.

They also recommended acquiring land and ensuring utility before initiating the PPP projects to improve the success rate.

The experts shared their views during a seminar organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at its office in Dhaka on Saturday.

Reading out the keynote paper on achieving Vision 2041 and the role of PPP, Foreign Investors Chamber of Commerce and Industry (FICCI) President Naser Ezaz Bijoy said the government should emphasise ensuring accountability and time management when it comes to projects.

Based on the current trend of government financing in the infrastructure sector, there will be an investment gap of $192 billion in this sector by 2037. However, there is an opportunity to funnel $200 billion in funding through PPP, he said.

Professor Dr Shamsul Hoque of BUET’s civil engineering department said a proper investment environment, elimination of corruption and skilled manpower are crucial to building quality projects in the country. Addressing the seminar, Policy Exchange of Bangladesh Chairman Dr Masrur Reaz said the PPP Act was enacted in 2015 but it has not been implemented as expected.

He said Indonesia has already implemented 145 PPP projects and Vietnam 154. Around 3,000 projects have been implemented in developing Asian countries between 1990 and 2015. And, about 6,400 PPP projects have been implemented in low and middle-income countries between 1995 and 2012. But Bangladesh has completed only one health sector project in the last five-six years. Seven-eight projects out of 78 PPP projects are still in the pipeline.

He said the payment system in infrastructure development projects should also be based on the project’s quality.

Speaking as the chief guest, the prime minister’s Private Industry and Investment Adviser Salman F Rahman told the seminar that there is no alternative to implement projects without PPP to deal with the crisis Bangladesh is facing now in the context of the current global situation.

To deal with the reserve crisis and budget limitations, PPP can finance the country’s development projects and drive the country towards Vision 2041, he said.

Describing PPP as the future of the upcoming days, he also said that an investment-friendly environment needs to be ensured to attract more investors.

A review should be conducted to see if there is a possibility to make the PPP procedure work faster within the existing law. Otherwise, the law should be amended, Salman added.

FBCCI President Jasim Uddin urged the government to implement the PPP projects as soon as possible to ensure sustainable economic development and achieve the country's targeted goals on time.