Download Presentaion to PM

Public-Private Partnerships In South Asia Webinar Series
17 February 2015, Webinar
Presentation to The Hon’ble Prime Minister
PPPs in Bangladesh:
Institutions and Financing
June 19, 2013
Syed A. H. Uddin
Chief Executive Officer
PPP Office (Prime Minister’s Office)
PPP Office, Prime Minister’s Office
Discussion Topics
1
Background: Vision
Why was the PPP program launched?
Development of Private
Sector Partnership
How has Government developed its approach for
partnership with the private sector?
Revised PPP Program
What key changes were implemented under the new PPP policy?
What institutions were created and what are their roles?
Program Achievements
What has been achieved since the program was launched?
Critical Success Factors
How can development partners support the successful
implementation of PPP programmes?
Conclusions
An overview of accomplishments and look ahead
2
3
4
5
6
World Bank South Asia Webinar Series: PPPs in Bangladesh
Page 2
Bangladesh: A decade of growth
Bangladesh GDP Growth
(2004-2013)
8.0
7.0
6.0
Bangladesh has registered
steady and consistent growth
over the last 10 years ... even
during the GFC
GDP Growth Rate (%)
5.0
4.0
3.0
2.0
1.0
0.0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Year
----- Average GDP Growth (2004-2013)
“Vision 2021 aspires for Bangladesh to attain a Middle Income
Country (MIC) status by FY21. To achieve this it sets a growth
target that rises from 6.1 percent annual growth in FY10 to 8
percent per annum in FY15 and 10 percent in FY21.”
- Sixth Five Year Plan (FY 2011-2015)
World Bank South Asia Webinar Series: PPPs in Bangladesh
Page 3
6th Five Year Plan: The drive for the PPP program
“The Government recognizes that strong public private partnerships can play a
catalytic role in mobilizing additional resources as well as creating additional
capacity & help for implementing public programs...accordingly, Government has
put emphasis on PPP to ensure expeditious development of [public] services.”
- (Page 32), “Sixth Five Year Plan FY2011 – FY2015”
Sixth 5 Year Plan Infrastructure Target
> Increase infrastructure investment from 2% to 6% of GDP
> Target 77% investment from private sector
6%
Percentage of GDP
The use of PPP for essential
social and economic
infrastructure will enhance
the quality of
services and relieve the
strain on the government
budget
5%
4%
Public
Investment
3%
2%
Private
Investment
1%
0%
0
1
2
3
4
Plan Year
World Bank South Asia Webinar Series: PPPs in Bangladesh
Page 4
History of partnerships with private sector
Project Based
Initiative
1996 – 2004
Sector Focused
Initiative
1996: Private
Sector Power
Generation
Policy
Policy
Phase
Up to 1995
2005 - 2010
Program
Initiative
2004: Private
Sector
Infrastructure
Guidelines
2010 - On going
Centrally
Integrated
Program
Initiative
2010: Strategy
and Policy for
PPP
2010: Special
Power Act
Projects
(TBC: Draft
PPP Law)
Fertiliser JV
(e.g. KAFCO)
Health
(e.g. BIRDEM, Heart
Foundation)
Power Projects
(e.g. Haripur 360MW
& Meghnaghat 450
MW power plants)
Power Projects
(e.g. Dhaka PBS 1)
Multi-Sectoral
Projects
(e.g. Transport,
Port Projects
Port, Power, Health,
(e.g. Teknaf Land Port) Zones, Civil
Accommodation,
Road Projects
Housing, Tourism)
(e.g. Hanif Flyover)
World Bank South Asia Webinar Series: PPPs in Bangladesh
Page 5
A New Framework for PPP: Key Reforms
Centralised regulatory
unit and program
champion
Injection of targeted
and catalytic funding
support
Financial
Support
Public and private
sector transaction
execution capacity
enhancement
Capacity
Development
Institutional
Changes
Regulatory
Changes
Streamlined
approval and
integrated policy
framework
Project
Preparation
Structured process with
expert support for
project development
World Bank South Asia Webinar Series: PPPs in Bangladesh
Page 6
PPP Institutions in Bangladesh
Market Policy Direction
PPP Project and Policy
Approval
PPP Funding and
Contingent Liability
PPP Regulation and
Facilitation
PPP Project Advisory
Support
PPP Financing
PPP Project Development
and Implementation
World Bank South Asia Webinar Series: PPPs in Bangladesh
Page 7
PPP Institutions in Bangladesh
PPP Advisory Council
(headed by Hon. PM)
Market Policy Direction
Cabinet Committee on
Economic Affairs
PPP Project and Policy
(headed by Hon. FM)
Approval
PPP Unit
PPP Funding
and
(Ministry
of Finance)
Contingent Liability
(PPP Project and Policy Approvals)
(Market Policy Direction)
(PPP funding and contingent
liability)
PPP Office
(Prime Minister’s Office)
PPP Regulation and
Facilitation
(PPP regulation and facilitation)
BIFFL
(State Owned Enterprise - MoF)
IIFCAdvisory
PPP Project
(State Owned
Enterprise - MoF)
Support
(PPP project advisory and support)
Line Ministry / Agency
PPP Project Development
and Implementation
(PPP project development and
implementation)
PPP Financing
(PPP financing + investment)
IDCOL
(State Owned Enterprise - MoF)
(PPP financing)
World Bank South Asia Webinar Series: PPPs in Bangladesh
Page 8
PPP Office: Delivery of Roles & Remit
Screening & Approving Projects
Monitoring and Reporting
Screened & Approved
Capacity Building
Screening &
Monitoring and
Approving
Reporting
Projects
42 PPP Projects
Policy
Development &
Enforcement
Capacity Building
Donor Agency Engagement
Donor Agency
Engagement
PPP
Office
Role
Appointing
Transaction
Advisors
Stakeholder Engagement
Stakeholder
Engagement
Promotion & Marketing
Expert Project
Facilitation
Promotion &
Marketing
World Bank South Asia Webinar Series: PPPs in Bangladesh
Expert Project Facilitation
Hemodialysis Centre
at NIKDU & CMCH
Dhaka Ashulia
Elev.
Expressway
2 Jetties at
Mongla Port
through PPP
Flyover from
Shantinagar to
Mawa
Senior Citizen
Health Care &
Hospitality
Upgrading
Dhaka By Pass
Road to 4 Lanes
Upgrading of
Hemayatpur
Singair
Manikganj
Mirpur Low Cost
Housing
Complex
Page 9
The PPP Process
Process specified in government Policy and Strategy for PPP, 2010
Only pick projects
suitable for PPP
Monitor
implementation; use
learning to inform
policy/next projects
Screen
Leverage
Government
resources to
prepare
PreDevelop
Monitor
CCEA
Approval
Private sector
arranges finance;
Govt provides info
and supports to
help close financing
Finance
Support
Tender
Provide professional
development
support backed by
early stage funding
Prepare ALL docs
and support upfront
+ Robust bid process
World Bank South Asia Webinar Series: PPPs in Bangladesh
Page 10
PPP Awareness and Capacity Building Events: 2012 - 2014
Tailored Training Program
Policy Level Consultations
20 Events
10 Events
(Approx. 120 Participants)
(Approx. 200 Participants)
Total
63 Events
PPP Capacity Building
10 Events
(Approx. 300 Participants)
(Covering over
3600
participants)
PPP Awareness Seminar
World Bank South Asia Webinar Series: PPPs in Bangladesh
23 Events
(Approx. 3000
Participants)
Page 11
Provision of Targeted Financial Support
Fund
Technical
Assistance
Financing
Viability Gap
Financing
Bangladesh
Infrastructure
Financing Fund
Objective
Support PPP
project
development
Enhance financial
viability of PPP
project
Provision of
longer term
Financing
Amount
TK 100 Crore
(Approx. $12m)
TK 400 Crore
(Approx. $50m)
TK 2500 Crore
(Approx. $315m)
Agency
PPP Office
PPP Unit
BIFFL
World Bank South Asia Webinar Series: PPPs in Bangladesh
Page 12
Bangladesh Project Pipeline
In Principal Approval
Advisor Engagement
Investor Selection
(Number of projects)
(Number of completed/on-going
projects)
(Number of projects that have issued
ROI, RFQ, RFP, CA)
39
42
34
33
17
12/13
13/14
Current
(Oct 14)
In Principal Approval
Number of PPP projects with In Principal
Approval and after completion of preliminary
screening or prefeasibility
11/12
13/14
Current
(Oct 14)
2
3
11/12
12
6
14
7
12
12/13
13/14
11/12
Current
(Oct 14)
Advisor Engagement
Number of PPP projects where engagement of
advisors have been completed or are on-going to
carry out detailed feasibility study
PPP Projects by Size
12/13
Investor Selection
Number of PPP projects where registration of
interest, request for qualification, request for
proposal or letter of award has been issued
PPP Projects by Sector
Large Project
16
33 Projects
(Over $13bn)
Medium Projects
Small Projects
5 Projects
4 Projects
(Est. $100m)
(Est. $15m)
8
8
5
Total
4
42 Projects
(Over
$13bn)
1
Transport
Health
World Bank South Asia Webinar Series: PPPs in Bangladesh
Zone
Civil
Accomod.
Tourism
Energy
Page 13
Critical Success Factors: Key role for development partners
High level
political
support
Strong
investment
climate
Patient long
term
commitment
Critical
Success
Factors
Skilled
resources
blended
with local
context
Adequate
financing
capacity
“Multilateral and
Donor Agencies have a
strong role to play and
a unique opportunity
to ensure sustainable
development.”
Adequate
funds for
development
and reward
World Bank South Asia Webinar Series: PPPs in Bangladesh
Page 14
Conclusions
Key Messages
1
PPP – A universal
model to support
public finances
2
Significant
progress since
PPP Office
operationalization
3
Capacity building
programs are
critical
4
Need for long
term vision &
commitment to
reforms
5
Commentary
►
With over 80% of the world applying PPP, it is
a now a globally accepted model for supporting
public finances in accelerating the
development and improving the delivery of
infrastructure and public services.
►
In-principal approved project rose to 42 projects
valued at over $14bn; 34 projects with advisors
appointed or being processed for appointment
First batch of contract award on projects
expected from January 2015
►
►
►
►
►
►
PPP well placed
for development
target
Extensive public and private sector capacity
building programs started
Over 3600 people participated in over 60
events during 2012-2014; 30 public sector
officials underwent intensive 1 yr. PPP training
PPPs programs require substantial policy and
procedural reform; capacity enhancement and
clear regulatory mandate to ensure success
Sustained long term policy commitment is vital
to provide platform for delivery and success
The PPP program in Bangladesh is well placed
to meet the transformation goals envisaged in
our Millennium Development Goals and Vision
2021.
World Bank South Asia Webinar Series: PPPs in Bangladesh
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