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PPP projects to get Tk2,000cr allocation in next fiscal year

  • Published at 01:22 am May 16th, 2017
PPP projects to get Tk2,000cr allocation in next fiscal year
The government has decided to allocate Tk2,000 crore for Public-Private Partnership (PPP) projects in the next fiscal year’s budget as seed money, Finance Division officials said. Such a big amount will be allocated in the sector despite the fact that only Tk35 crore was spent in last one year allocated for the PPP projects in the current budget. Last fiscal year, the government also allocated Tk2,000 crore for the PPP projects. The decision of the Tk2,000 crore allocation in the upcoming fiscal year too was taken on Sunday at the meeting with Finance Minister AMA Muhith in the chair. “It has been decided to allocate Tk2,000 crore for major eight PPP projects in next fiscal year. But the authorities concerned were not able to spend the money allocated in the previous year,” said an official. If the PPP seed funds are not spent, it will be put aside for meeting shortage of revenue collected by the National Board of Revenue, according to the officials. Major projects in the pipeline for next fiscal year to be implementable under PPP programme include development of both sides of the service lane of Joydebpur-Debgram-Bhuta-Madanpur (Dhaka bypass) for 4-lane highways, 217 km of Dhaka-Chittagong Expressway, Shahjalal International Airport Multimodal Transport Hub Construction, construction of Hatirjheel-Rampura-Banasree Ideal School and College service lanes on both sides of the highway. In the last budget speech, Finance Minister AMA Muhith said there had been little progress in the PPP initiatives during the last six years. He said: “There is no denying the fact that, initially, our procedural and institutional framework was not robust enough to take this agenda forward.” In the new budget, 42 PPP projects have been approved in principle, of which agreements for three projects have been signed.