Prospects Of Public Private Partnership in Bangladesh

Introduction

Bangladesh has been facing a lot of development challenges since her independence in 1971. For accomplishing improvement, a considerable measure of divisions like foundation advancement, vitality and transport are should have been financed. The administration of Bangladesh had presented another strategy in the national spending enactment in mid 2009. Be that as it may, there was no reasonable rules on the most proficient method to try the administration expectation and how to designated spending plan on segments based. A casual discussion was held among government and business pioneers to deal with hindrances and arrangement in executing open private association. The strategy of the PPP is presently worked by PM's Office (PMO). The technique and arrangement of PPP was distributed in 2010. In the Fiscal Year 2011, government allotted a lot of cash to take PPP's forward. Since 1954 Asia Foundation has been assuming an extraordinary job in the advancement of Bangladesh. The Asian Foundation considers the activities a need for the up and coming long haul improvement of Bangladesh and chance of open and private areas of cooperating to accomplish advancements. The Asia Foundation is functioning as a scaffold between governments (The Prime pastor Office, service of fund) and private areas (Federation of Bangladesh Chambers of Commerce and Industry-FBCCI, Foreign Investors Chamber of Commerce and Industry – FICCI, American Chamber of Commerce – AMCHAM and so on). The connection predominantly centers around the striking elements of executing PPP.

Defining PPPsA public-private partnership, or P3, can be defined as a contract between a governmental body and a private entity, with the goal of providing some public benefit, either an asset or a service. Public-private partnerships typically are long-term and involve large corporations on the private side. The private party must take on a significant portion of the risk is a key element of these contracts because the contractually specified remuneration — how much the private party receives for its participation — typically depends on performance. Scholars have been divided in their thinking about PPPs. The greatest divide seems to be between researchers who view PPPs as a tool of governance and those who think it is a “language game”.

Most views of partnerships emphasize that PPPs are established because they can benefit both the public and private sectors. The line of reasoning is simple — both the public and private sectors have specific qualities, and if those qualities are combined, the end result will be better for all. The broad alternative view of PPPs is as a language game. Under this philosophy, the language of PPPs is a game designed to “cloud” other strategies and purposes. One such purpose is privatization and the encouragement of private providers to supply public services at the expense of public organizations themselves.

It is not a simple theme to judge whether PPPs are the next part in the privatization story or another promise in our continuous endeavors to better define and measure public sector service performance for boosting business in difficult times; or a language game camouflaging the next frontier of conquering transaction merchants, and merchant bankers pursuing fat commissions. Perhaps the PPP phenomenon is all of these, and we need to understand the performance of each partnership family member better. PPPs and Bangladesh Public-Private-Partnership is relatively a new concept for Bangladesh. During its first 30 years, the country has gone through rigorous nationalization followed by vigorous privatization. Bangladesh had entered into a number of individual PPP transactions before in mid-1990s. In 1996, an approach system was acquainted for PPPs all together with empower private division organizations in power age. With the help of the ADB and the World Bank two expansive power extends, the Meghnaghat (450MW) and Haripur (360MW) control plants, were effectively contracted in 2001.

In 2004, to expand on this achievement in foundation territories, the GOB presented the Private Sector Infrastructure Guidelines. In sixth Five-Year Plan was propelled in 2010, where the Government's vision was to enhance the nation's direction of monetary development to a Middle-Income Country status by 2021(Sixth Five Year Plan, FY2011-FY2015). The PPP Policy 2010 introduced a total extent of changes, including charge propelling powers for PPP adventures, expected to develop a plausible PPP program over various parts. Starting from a cluster of endeavors in 2012, the PPP Office is by and by supporting the change and execution of 49 PPP adventures with a capital estimation of around US$ 15 billion; this assembles a pipeline of more than 20 reaches out in the power division. In August 2010, the Bangladesh Government issued the Policy and Strategy for Public Private Partnership (PPP) to support the headway of focus portion open establishment and organizations basic for the all inclusive community of Bangladesh. The PPP program is a bit of the Government's Vision 2021 target to ensure an all the more quick, thorough advancement bearing, and to all the more promptly address the issue for enhanced, extraordinary open organizations in a fiscally achievable manner. As indicated by Ministry of Planning, Bangladesh (2015), with the end goal to accomplish the Vision 2021 objective of Bangladesh turning into a center wage nation by 2021, she should guarantee a quicker, comprehensive development direction. For this Bangladesh needs to raise the GDP development rate to 8 percent. There has been some achievement in drawing in private speculation through PPP course in the power, gas and telecom divisions. The Government looks for greater interest in these and different segments, for example, ports, streets, railroad, water supply, squander administration, tourism, e-benefit conveyance and so forth.

Success of PPP in Bangladesh at a glance:

• AES Meghnaghat 450MW Power Project
• Sonamasjid Land Port
• Jatrabari-Gulistan Flyover Project
• Patenga Sea Port Project.

Present Legal Basis for PPP in Bangladesh

The Bangladesh Private Sector Infrastructure Guidelines (PSIG), issued by the Cabinet Division 2004 as of now is the rule for actualizing PPP extends in Bangladesh. Be that as it may, this isn't passed by the parliament. So it makes questions, needs lucidity, and carries irregularity with the Public Procurement Act (PPA) 2003. Afterward, the Public Procurement Act (PPA)-2006, was ordered by the national parliament.

The Rule 129 of Public Procurement Rules (PPR) 2008 fuses different PPP models. At present, Section-66 of PPA-2006 and Rule-129 of PPR-2008 go about as the reason for PPP venture usage. Prospects of PPPs: PPPs keep on grabbing the enthusiasm of policymakers, open executives, and scholarly specialists looking for hierarchical musings and instruments that hold guarantee for assembling assets past those accessible to open division elements alone, and offering answers for complex issues.

• PPPs give preferred framework arrangements over an activity which is completely open or entirely private. Every member does what it excels at.
• Including time-to-fulfillment as a proportion of execution result in quicker task fruitions and diminished postponements on framework extends by and along these lines of benefit.
• ROI or, an open private organization's arrival on speculation, may be more noteworthy than ventures with customary, all-private or all-administration satisfaction. At the point when the two substances cooperate imaginative outline and financing approaches end up accessible.
• To decide venture plausibility, dangers are completely assessed from the get-go. In this sense, against improbable government guarantees or desires, the private accomplice can fill in as a check.
• The operational and venture execution dangers are exchanged from the legislature to the private member, which as a rule has more involvement in cost suppression.
• Public-private associations incorporate early finish rewards that further improve proficiency. They can once in a while lessen change arrange cost too.
• It permits government assets to be diverted to other imperative financial regions by expanding the proficiency of the administration's venture.
• Government spending plans and spending shortage is diminished by the more noteworthy proficiency of P3s. High-quality norms are better accomplished and maintained for the duration of the existence cycle of the task.
• Public-private organizations that decrease costs conceivably can manual for lower charges.

Public Private Partnership Challenges:

• Every open private organization is engaged with hazard for the private member, which sensibly foresees to be made up for tolerating those dangers. This can raise government costs.
• When there are just a set number of private elements that can play out these errands, the set number of private members that are sufficiently huge to take these assignments on may restrain the aggressiveness fundamental for savvy cooperating.
• Profits of the activities can fluctuate contingent upon the accepted hazard, focused level, intricacy, and the volume of the task being performed.
• The government is at an inborn burden, if the ability in the organization lies vigorously on the private side. For instance, it may not be able absolutely evaluate the proposed costs.

Concluding words

The matter of good pleasure is that Bangladesh Government is very optimistic about the efficiency of PPP initiative efforts. For example, the first major step toward drawing private sector investment under Public-Private Partnership (PPP) credible is the ample design of The Dhaka- Chittagong six-lane expressway. Implementation of that project under PPP is decided by a cabinet committee. There is a voluntarily raised fund in Sirajganj for developing the financial power of women from low-income families of Sirajganj in order to build homes under a government program named Housing Development Fund. So we can see financing through PPP persuasive in Bangladesh is growing day by day.

We see that a PPP project may have both positive and negative outcomes based on its usage. Even then the associated expertise of public and private sectors creates a synergy for development. If public sectors will be corrupted and the private sector’s greed will be increasing rapidly then it will turn into an evil twin. Then development will be endangered, no doubt.