Transformation of Bangladesh roads accelerated by PPP deal

DHAKA, BANGLADESH - A consortium of firms from China have signed a concession contract with the federal government of Bangladesh to improve the Dhaka Bypass underneath a public-private partnership (PPP) association.

The businesses concerned are Sichuan Highway and Bridge Group, Shamim Enterprise Ltd., and UDC Development Restricted.

This venture brings a brand new dimension to public service supply in Bangladesh. It's the first access-controlled expressway within the nation, Chief Govt Officer of PPPA Mr. Syed Afsor H. Uddin stated Thursday.

This landmark transaction will pave the best way for a pipeline of nationwide expressways throughout Bangladesh.

The Asian Growth Financial institution (ADB) assisted the Bangladesh authorities in negotiating the deal.

ADB goals to speed up street improvement in Bangladesh whereas minimizing the financing and operational burden and bringing in a various set of internationally famend infrastructure builders, operators, and monetary establishments, the Head of ADBs Workplace of PublicPrivate Partnership (OPPP) Yoji Morishita stated Thursday.

The federal government of Bangladesh establishes the goals of the infrastructure in addition to some credit score helps to sort out the visitors problem, whereas the personal sector takes duty for assembly the goals. The Dhaka Bypass is step one in our technique to deliver Bangladesh roads to the worldwide market based mostly on the PPP mannequin.

ADB additionally offered authorized assist for thetransaction andhelped to develop a concession contract template for street PPPsthrough the Asia Pacific Challenge Preparation Facility (AP3F), a multi-donor belief fund managed by ADB.This venture marks the primary profitable collaboration between ADBs transaction advisory companies and AP3F.

Underneath the contract signed with the Ministry of Roads and Bridges, a four-lane tollway and a two-lane service street can be added to the JoydevpurDebogramBhultaMadanpur Highway (N-105) part of the expressway. The 48-kilometer (km) venture will present a serious arterial connection between the economic zone northeast of Dhaka and nationwide freeway N1 connecting to the port metropolis of Chattogram, in addition to to N2, N3, and N4 highways resulting in different main cities.

The consortium will design, construct, finance, function, and keep the tolled expressway over a 25-year concession interval, and can be capable of cost tolls based mostly on car sort. The federal government of Bangladesh will provide viability hole funding of three.1 billion taka and a minimal income assure to the consortium to optimize the price of financing. The contract additionally gives the federal government with a share of revenues generated by the consortium over a sure threshold.

ADB says it has been working with the federal government of Bangladesh for over 5 years to rework the countrys roads by making them a bankable asset class enticing to worldwide buyers, as has occurred in different sectors such because the unbiased energy producer sector. ADBs OPPP can be the transaction advisor to PPPA on the 13.5-km RampuraAmuliaDemra Expressway in Dhaka and in December 2018 was appointed transaction advisor for the roughly 210-km Dhaka Chattogram Expressway,the busiest street artery for passenger and freight within the nation.

ADB has lengthy supported PPPs and in 2014 established the OPPP to offer unbiased transactional recommendation and develop broader PPP data and experience within the area. ADB has additionally pioneered the AP3F, a $73 million belief fund supported by the governments of Japan, Canada, and Australia, to offer venture preparation, venture definition, and capacity-building supportto governments for PPP initiatives.

Established in 1966, ADB is owned by 67 members, forty eight from inside the area.

Transformation of Bangladesh roads accelerated by PPP deal Transformation of Bangladesh roads accelerated by PPP deal Reviewed by bazid ahmad on November 21, 2018 Rating: 5

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