Tk5,040cr allocation for PPP projects encouraging: Bida executive chairman

Chowdhury Ashik Mahmud Bin Harun, executive chairman of the Bangladesh Investment Development Authority (Bida), has welcomed the allocation of Tk5,040 crore in the proposed budget for the fiscal year 2025-26 to implement investment projects through public-private partnerships (PPPs).

In an immediate reaction to the proposed budget presented by Finance Adviser Salehuddin Ahmed today (2 June), the Bida executive chairman told TBS, "So far, there has not been much success in the PPP project. However, this time, development is possible if we move forward in a targeted manner. This allocation will be effective in implementing the project."

The finance adviser said in his budget speech, "It has been proposed to allocate Tk5,040 crore to the PPP fund in the next fiscal year to encourage investment in public-private partnerships in potential sectors."

Ashik, also executive chairman of the Bangladesh Economic Zones Authority (Beza), said, "We are trying to bring all the institutions related to investment development – such as PPP Authority, Bida, Baza, Bepza, and other investment promotion agencies (IPAs) – under one umbrella."

When the PPP Authority comes under the same umbrella, the scope of work of the PPP Authority will increase and the speed of work will increase, he said.

Ashik said, "This time, the finance ministry has given a target-based budget instead of a large-scale one, which is commendable. We are working closely with various government ministries. Particularly from the finance ministry, we have received significant support regarding investment, and continue to do so. These aspects are reflected in the budget as a continuation of that. They are very much aligned with Bida's work."

Expressing satisfaction that the implementation of a "National Single Window" to create a business-friendly environment was included in the budget, he said, "We are working closely with this. Additionally, an initiative to launch a service-oriented platform like the "Bangladesh Business Portal" has been undertaken, which was discussed at Bida's governing body meeting. The budget also mentions support for this."

Regarding the development of an investor pipeline, Ashik said, "We are taking action in two ways: firstly, by modelling an Investor Relationship Management System, and secondly, by trying to launch an incentive scheme for everyone to attract investment. Anyone who brings in investment will be offered these incentives. We are trying to offer an incentive scheme similar to the cash-back provided for exports. The budget includes a commitment to financial assistance in this sector."

He further added, "A proposal to reduce shareholders in some government-owned agencies has been put forth, something we have advocated for a long time. This will increase the profitability and efficiency of these agencies and reduce government losses."