BIBM study finds five hurdles to PPP projects; not a single one completed in 9 years

Despite the policymakers' high hopes, not even one of the around 50 projects initiated under the public-private partnership or PPP, has been completed in nine years.

The Bangladesh Institute of Bank Management or BIBM researchers have identified five obstacles behind the sluggishness in the projects in a report titled ‘Financial and Non-Financial Issues in Implementing PPP in Bangladesh: An Examination of PPP Projects of PPP Projects in Pipeline’.

BIBM Director (Research, Development and Consultancy) Prof Prashanta Kumar Banerjee presented the report at a programme at BIBM Auditorium in Dhaka on Wednesday.

According to the findings, abnormal expenses, corruption, lack of government supervision and capability along with the failure to pick up right projects have slowed down the implementation of these projects.

The Awami League government initiated PPP enthusiastically after coming to power in 2009, but not a single project under this initiative has been completed.

Finance Minister AMA Muhith kept Tk 20 billion in the 2009-10 budget for infrastructure development through the PPP.

The PPP has been bankrolled Tk 30 billion in each financial year since 2010-11, but the authorities have failed to spend the fund and the money has been returned regularly.

The number of PPP projects remained the same at 47 for several years. Tenders have been floated for some of these while the progress is in the early stages in some others.

Bangladesh Bank Deputy Governor Abu Hena Mohd Razee Hassan defended PPP at the programme, saying it is not possible for the government alone to implement all the projects necessary to spur economic growth.

He agreed that there were obstacles to implement these projects and said it would be difficult to keep up the growth if these were not tackled.

Former Sonali Bank managing director SA Chowdhury said the expenses were rising due to the repeated extension of the PPP projects.

BIBM Director Prashanta said the researchers gathered information from 65 organisations including banks, non-bank financial institutions, government agencies, and donors.

BIBM Associate Prof Md Mahbubur Rahman Alam presented another report titled ‘An Evaluation of Core Banking Software in Banks of Bangladesh’. 

The report alleged the banks are using low-quality software and it has raised the number of incidents of fraud.

SA Chowdhury and Mohammad Nurul Amin, former MDs of Sonali Bank, said the banks should invest more in IT manpower.

BIBM Director General Toufic Ahmad Choudhury chaired the programme.