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FRIDAY, JULY 18, 2025
An ideal PPP model for creating transformative infrastructure

Supplement

Dr Md Mushfiqur Rahman
02 September, 2023, 10:35 am
Last modified: 02 September, 2023, 01:40 pm

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An ideal PPP model for creating transformative infrastructure

Covering 11 kilometres and equipped with 15 ramps, the Hazrat Shahjalal International Airport and Farmgate part of the Dhaka Elevated Expressway is expected to save an estimated 160,000 travel hours annually

Dr Md Mushfiqur Rahman
02 September, 2023, 10:35 am
Last modified: 02 September, 2023, 01:40 pm
Sketch: TBS
Sketch: TBS

Public-Private Partnership, commonly known as PPP, is the brainchild of Prime Minister Sheikh Hasina. Her visionary leadership in formulating the PPP regime in Bangladesh is a major leap toward transforming Bangladesh into a developed country by 2041. 

I am delighted and proud to witness the success of that PPP program and the nearing inauguration of the First Dhaka Elevated Expressway. This project has seen an investment of $1.3 billion. It represents a remarkable milestone in our country's development journey and stands as a testament to the effectiveness of the PPP model in creating transformative infrastructure for our citizens.

This part of the Dhaka Elevated Expressway, covering 11 kilometres and equipped with 15 ramps, is projected to significantly reduce travel time between Hazrat Shahjalal International Airport and Farmgate. You can reach Farmgate in approximately 10 minutes by the expressway. 

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Diverting traffic from existing roadways is expected to save an estimated 160,000 travel hours annually. This will enhance transport network efficiency and offer a smoother commuting experience for the people.

The PPP Authority has been intricately involved in all stages of the Dhaka Elevated Expressway project, conceptualised in 2011. Our role in facilitating the financial structuring of this $1.3 billion project has been crucial.

We thank the Contracting Authority, Bangladesh Bridge Authority (BBA), Road Transport and Highways Division, Finance Division, Prime Minister's Office, RAJUK, Bangladesh Railway, Dhaka North and South City Corporations for their relentless engagement, management, support and guidance. 

Besides, we collaborated closely with the Italian Thai Development Public Company Limited, China Shandong International Economic and Technical Cooperation Group, and Sinohydro Corporation Limited to ensure successful implementation of the project.

With the initial phase's partial inauguration, our focus remains steadfast on meeting the project's overall completion deadline of June 2024. 

Our action plan involves maintaining a rigorous project management approach, ensuring efficient coordination among stakeholders, and promptly addressing any challenges that may arise.

We know factors contributing to project delays have been observed, even after obtaining in-principle approval and signing agreements. Complex infrastructure projects often encounter hurdles that can lead to delays. Regulatory approvals, unforeseen technical complexities and coordination issues can all contribute to it as well. It is worth noting, however, that we have taken comprehensive steps to minimise these challenges and ensure timely progress.

The successful execution of the Dhaka Elevated Expressway has provided us with valuable insights. We are determined to enhance our risk assessment and mitigation strategies, streamline approval processes and improve stakeholder communication to ensure the timely implementation of future PPP projects. 

The PPP model offers a sustainable solution to financing constraints. We can attract substantial investments into infrastructure projects by leveraging private sector expertise and resources. The $1.3 billion investment in the Dhaka Elevated Expressway demonstrates the model's ability to bridge funding gaps and accelerate infrastructure development.

The main obstacles we faced were land acquisition processes, alignment with other development projects, and unexpected technical challenges. We focused on simplifying procedures, enhancing stakeholder coordination, and creating an enabling environment for efficient project execution.

The participation of domestic entrepreneurs as private partners in PPP projects appears limited. The hesitance of domestic entrepreneurs can be attributed to risk perceptions and financing challenges. 

Going forward, we are committed to addressing this by fostering greater awareness about the benefits of PPP, providing capacity-building support and exploring innovative financing models. Engaging with conventional banks to create financing structures tailored to PPP projects is also a priority.


Dr Md Mushfiqur Rahman is the CEO of the Public Private Partnership Authority (PPPA) and Secretary to the government. 

Disclaimer: The article is based on the author's interview given to TBS Senior Staff Correspondent Jahidul Islam.

 

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