The Islamic Development Bank expressed its interest to collaborate with Public Private Partnership Authority (PPPA) in developing and implementing Public Private Partnership (PPP) projects in Bangladesh.
The interest was expressed at a virtual meeting with the PPPA on Tuesday. The bank is keen to increase its portfolio in Bangladesh by financially supporting infrastructure projects, says a press release.
Sultana Afroz, Secretary to the Government and the Chief Executive Officer of PPP Authority under the Prime Minister’s Office, stated that Bangladesh has evolved into an investment destination under the able leadership of the Prime Minister Sheikh Hasina.
Besides financing PPP infrastructures, she said, the bank can play a vital role as transaction advisor for PPP projects in Bangladesh and can also work with PPPA for both upstream and downstream collaboration including capacity building for Ministries, Government Agencies and PPPA officials, developing effective tools like formulating model contracts for specific sectors, introducing ICT based tools for project management, and drafting guidelines and procedures for the Authority.
SulaimanNassis, Regional Manager, Regional Hub of Dhaka, Bangladesh of the bank, conveyed that IsDB is actively engaged with sponsors and development partners in a number of its member countries to support various infrastructure projects that are in various stages of readiness for procurement under the public private partnership modality.
Noman Siddiqui, Manager PPP, IsDB, gave an overview of IsDB supported PPP activities in Bangladesh. The bank is financing Bhola and Summit Bibiyana power plants. He said that they are ready to increase their portfolio in Bangladesh by financing quality infrastructure projects well-structured for PPP concessions. IsDB is also committed to support capacity building through PPP advisory services by hosting workshops, seminars and project preparation assistance.
Bangladesh has built a PPP project pipeline of 79 projects with an investment value of more than US$29 Billion to realize the government’s vision of bringing about a transformational change to its infrastructure sector. IsDB would be given the opportunity to review the projects and select any one or more of them for financing.
The meeting ended with strong recommendation and agreement by both PPPA and IsDB for signing aMemorandum of Understanding (MOU) between PPPA and IsDB as the next step for undertaking the activities suggested in the meeting.