5.5% of the total financing needs of the SDGs targeted through the PPP


The information was revealed during a signing event of a memorandum of understanding on the PPP financing partnership with 15 interested banks and non-bank financial institutions.

5.5% of total SDG financing needs were targeted through the Bangladesh Public-Private Partnership (PPP) Authority.

According to the long-term plan of the government of Bangladesh, to become a developed country by 2041, the estimated investment amount of the PPP project is around $ 3.8 billion per year.

The information was revealed during a signing event of a memorandum of understanding on the PPP financing partnership with 15 interested banks and non-bank financial institutions.

The Prime Minister’s Principal Secretary, Dr Ahmad Kaikaus, attended the event as the main guest while the Secretary of the Financial Institutions Division, Sheikh Mohammad Salim Ullah, attended as a special guest.

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In 2016, the PPP Authority signed a memorandum of understanding with 14 other banking and non-banking financial institutions.

The MoU mandate has ended and new banks have expressed interest in becoming PPP funding partners. Therefore, this MoU signing event has taken place.

“To ensure quick and easy access to project information for lenders and to facilitate financial closure of some PPP projects, this MoU will play a central role,” Dr Ahmad Kaikaus said at the event.

“While national financial institutions must be made more aware of PPP projects, the signing of this memorandum of understanding will be a milestone in this regard,” he added.

Bangladesh Government Secretary and Director General of the PPP Authority Sultana Afroz chaired the event.

She recognized the importance of timely funding for successful project implementation.

Sultana Afroz said: “The PPP is the brainchild of Prime Minister Sheikh Hasina and the PPP Authority works tirelessly for the development of the country’s infrastructure.

“To make the PPP finance partnership program more efficient and dynamic, the PPP Authority held a workshop earlier this year with financial institutions, and based on feedback from that workshop, today’s event was organized, ”she added.

The challenges of financing PPP projects in Bangladesh include a mismatch between the loan terms in PPP projects and the period of savings and loan disbursement of financial institutions, the limited use of the project finance method for financing of PPP projects.

Other challenges are non-mortgage of government land as collateral in PPP projects, limitation of maximum single borrower limit, insufficient loan amount from various financial institutions and lack of sources. alternatives, including the bond market, insurance fund, pension fund, etc.

All bank and non-bank financial institutions, including the Finance Division, the Financial Institutions Division, the Bank of Bangladesh and the Securities and Exchange Commission, must propose the necessary changes in the conventional banking system to provide the required financing to companies. PPP project through the project finance system, a press release read.

At the event, the activities of the PPP Authority, the procurement process of PPP projects, existing PPP financing partnership memoranda of understanding and suitable PPP projects for future financing were discussed in detail.

It is hoped that this will further speed up the communication of these organizations with the PPP authority.

This MoU will exist for the next five years from the date of signature. PPP funding partners are expected to be able to finance PPP projects under the MoU and contribute to much needed infrastructure development in the country.

A Non-Disclosure Agreement (NDA) is also signed to complete the Memorandum of Understanding.

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The banks and financial institutions that have signed the agreement are: Eastern Bank Limited, Prime Bank Ltd, HSBC, The City Bank Ltd, Standard Chartered Bank, Mutual Trust Bank Ltd, Southeast Bank Ltd, Midland Bank Ltd, Lankan Alliance Finance Ltd, Prime Bank Investment Limited, NDB Capital Ltd, Industrial and Infrastructure Development Finance Co Ltd, Brac EPL Investments Ltd, Riverstone Capital Ltd and UCB Investment Ltd.

The event was hosted by the PPP Authority under the Prime Minister’s Office on Thursday at the Pan Pacific Sonargaon Hotel, Dhaka.

Senior officials from government agencies and other financial institutions were present as well as prominent banking and business specialists and journalists.

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