Workshop on enhancement of long-term PPP Financing
Posting Date: 4 May, 2013
A discussion meeting was organized by IPFF project cell, Bangladesh Bank with the participation of the World Bank, PPP office and Managing Directors/Chief Executive officers of Banks and Financial Institutions on Prospective Project Pipeline Development held at the conference room of Hotel Sarina on 4th May, 2013 at 3.30 pm. The objective of the meeting is to address the difficulties faced by PFIs for loan disbursement and other unaddressed issues in this regard and to find ways to accelerate the use of on-lending component of IPFF fund. The meeting was chaired by Mr. Abul Quasem, Deputy Governor of Bangladesh bank as well as project director of IPFF project. Mr. A.K.M Abdullah, Financial Sector Specialist, The World Bank and Mr. Syed Afsor H. Uddin, CEO of PPP office were also present in the meeting.
At the outset of the meeting, welcoming all the participants, the Chairman delivered the opening speech. After that Deputy Project Director of IPFF Project Mrs. Husne Ara Shikha made a power point presentation on the opportunities available in IPFF project for PFIs. CEO, PPP Office, Mr. Syed Afsor H Uddin delivered his speech narrating the future projects of PPP to be financed by banks and financial institutions. He also presented a new concept called Indicative Financial Support where the engagement of the PFIs in the crucial steps (RFQ, RFP etc.) of awarding PPP projects would be ensured. After that World Bank's Financial Sector Specialist Mr. A.K.M. Abdullah presented various aspects on how the WB review a loan proposal and there concerns for development of present PPP scenario in Bangladesh. As a last speaker, Chairman of Mongla Port Authority Mr. H.R Bhuiyan delivered his speech depicting strategic reason for Bangladesh for an alternative port and explaining the necessity to upgrade the capacity of Mongla port for the greater interest of the People of Bangladesh.
Mr. Syed Afsor H Uddin discussed about the broader avenue of PPP. He opined that financing a PPP project should not be the goal rather it should be treated as a program as PPP is a new concept in Bangladesh. He told that if the PFIs would involve in various steps of awarding a PPP project, it would reduce the uncertainty of financing by the PFIs.
He also told that, once there will be successful implementation of a PPP project, a number of PPP projects will come automatically. He assured that PPP office is working relentlessly to build a strong pipeline of PPP project and by the next year 10 to 15 PPP projects would be ready for financing. In his speech he also showed the process specified in Public Private Partnership (PPP), 2010.
The chairman thanked the CEO, PPP Office for preparing a pipeline consisting of 37 Nos. PPP projects. The participants of PFIs raised a number of issues regarding financing in PPP projects that require attention of Bangladesh Bank as well as the World Bank. The chair assured to take care of those matters and hoped that in the journey of IPFF, the PFIs would act proactively to finance PPP projects. He believe that interaction between government, investors and financial institutions will help us financing more and more PPP projects under IPFF project and improve the overall PPP scenario in Bangladesh.