Public Private Partnership (PPP) projects in Bangladesh have attracted investments of $6.74 billion, with a majority in the energy sector, according to the Asian Development Bank (ADB).

The energy sector accounted for 76 per cent of the investments, while the port sector attracted more than 12 per cent of investments, it said.

It was disclosed in the PPP Monitor, a flagship publication of the Manila-based lender aimed at monitoring PPPs. It will be launched at a programme in Dhaka today.

The PPP Monitor has been upgraded to provide a "one-stop" information source, derived from a consolidation of the previous PPP Monitor, leading PPP databases of multilateral development banks, such as the World Bank and the International Finance Corporation, and organisations like the Economist Intelligence Unit, and the Global Infrastructure Hub, reports of a country's PPP unit, a country's legal framework, and consultations with leading technical experts and legal firms as well as financial institutions.

The PPP Monitor is expected to become a knowledge base for assessing a country's PPP environment for the government and the business community.

It said Bangladesh has developed its foundation for the PPP Authority in a structured manner.

A policy and strategy for PPPs were introduced in 2010, which improved the regulation of PPP projects and established an office to promote PPPs.

"However, the PPP Authority has no statutory authority."

A PPP Act was enacted in 2015 to facilitate the development of core sector public infrastructure and services.

Following the PPP Act, the institutional set-up improved as the Office for PPP became the PPP Authority under the Prime Minister's Office, with responsibilities including appointing advisors, developing and approving PPP contracts, and supervising the progress of PPP projects.

A new PPP unit was established under the finance ministry, and it approves government funding to a PPP project.

The review said the development of PPP projects in Bangladesh is reflected further by the Economist Intelligence Unit Infrascope Index.

Among the 19 countries evaluated, Bangladesh scored an overall rank of 7th for PPPs, with strong showings in institutional structure and market maturity.

After the enactment of the PPP Act in 2015, the government has taken further measures to strengthen the regulatory framework and institutional set-up in the country, said the PPP Monitor.

The country has also put in place clear guidelines and rules related to project screening, technical assistance financing, viability gap funding (VGF), and handling unsolicited proposals.

"Owing to the well-developed institutional structure and regulatory framework, Bangladesh has been able to successfully close several PPP transactions."

A total of 69 PPP projects across various sectors were implemented from 1990 to 2019. The energy sector has seen widespread interest in PPP in Bangladesh.

Except for one project in the airport sector that was awarded and cancelled, the PPPs have largely been successful.

According to the PPP Monitor, of the projects awarded in the information and communication technology sector, two were rated as distressed assets as of June 2020.

"The ADB is ready to provide technical support to monitor PPP projects and provide updated information to help investors and the PPP Authority," said Mohammad Abdul Awal, director for investment promotion at the PPP Authority.

"This would help mobilse funds for PPP projects."

According to the official, 76 PPP projects involving $36.5 billion have been taken up since 2015.

But only one project involving the setting up of dialysis centres in Dhaka and Chattogram implemented in association with Indian Sandor Medicaids has become operational.

The PPP projects are at various stages of preparation and procurement, under implementation, feasibility study and under discussion with stakeholders.