After six years of operation the Public Private Partnership (PPP) Authority yesterday realised that it needs to formulate an integrated master plan and set priorities to attract the private sector for the country's much-needed infrastructure projects.

“We have to find out the gaps and lapses with the PPP. We need to understand why the private sector is not coming to invest in the PPP projects,” said Kazi M Aminul Islam, executive chairman of the Bangladesh Investment Development Authority.

Islam's comments came at a roundtable styled “What must we do to meet PPP investment challenges?”, organised by the PPP Authority and Watermark MCL at the capital's Sonargaon hotel.

The government is keen to facilitate the private sector in unlocking the development potential of the country by providing them the necessary support for the PPP projects, said Islam, who moderated the event.

Syed Afsor H Uddin, chief executive officer of the PPP Authority, made a presentation exhibiting the current status of the PPP projects in Bangladesh. Speakers from private and public sector took part in the discussion.

At present, 47 PPP projects are in the pipeline.

Bangladesh needs to increase its investment in infrastructure from the current $3-$3.5 billion to $12.5 billion per year to meet its development targets, Afsor H Uddin said.

The government formulated a PPP policy and set up an office in 2010. The office began operation in January 2012. Later, the government enacted the PPP law in 2015 and established an authority under the law in the same year.

“Commercially viable project is vital for PPP. So, time has come to make an integrated master plan and set priority projects for PPP,” Afsor H Uddin said.

Sabur Khan, former president of the Dhaka Chamber of Commerce and Industry, criticised the authority for not setting priorities for PPP projects.

Khan, who is also the chairman of Daffodil Group, was surprised to see the PPP Authority is yet to take any project that can reduce the hassle of airport-bound and arrival passengers.

“It is a shame that there is no public transport at the airport. I have seen public transport in Nepal in 1991.”  The government can also think of involving the private sector to manage the city's traffic system under a PPP project.

The former DCCI president also said the airport should be connected through an accelerated or elevated way and if the PPP Authority takes an initiative many private entrepreneurs will come forward.

Responding to Khan's point, the PPP Authority CEO said the airport was commercially viable.

Rafiqul Islam Khan, joint secretary (PPP Unit) of the finance ministry, said there is a policy, budget and project viability and still the private sector is not coming up.

“This needs to be looked at seriously,” he added.

Some of the speakers also talked about the financing of the PPP projects. Financing PPP projects is a complex and long-term matter, for which the banks are not very keen to provide funds.

“Banks do not have long-term source of funds for which they cannot invest in a long-term project,” said Prashanta Kumar Banerjee, who teaches banking and finance at the Bangladesh Institute of Bank Management.

He asked the authority to look for alternative sources of investment, such as Sukuk and Diaspora bonds.

India has many infrastructure bonds that Bangladesh can replicate to implement long-term projects, said Ershad Hossain, chief executive officer of City Bank Capital.

The capital market can be another source for financing PPP projects, he added.

Tabarak Hossain Bhuiyan, additional managing director of Prime Bank, also spoke on the occasion. Prime Bank sponsored the event.