PPP law on way to speed up projects

A draft of the public-private partnership (PPP) law formulated by the Prime Minister's Office to expedite implementation of projects under the scheme, is set to be placed at today's meeting of the cabinet committee on economic affairs.
The draft states that private equity providers of the companies formed in PPP will not have more than 25 percent voting rights.
It also states that parties interested in the PPP scheme will have to form a consortium, with one dominant member holding a minimum of 26 percent shares. The member will have to stay with the company for three years as the single largest share holder.
The responsibilities of the PPP office have also been outlined in the draft, which would be to collect technical assistance fund, maintain and oversee its implementation. It will also coordinate among the stakeholders and concerned ministries on miscellaneous issues.
Finance Minister AMA Muhith in his first budget speech in 2009 announced implementation of big projects under the PPP scheme, but none of them have taken shape yet.
In every budget since 2009, the government has allocated funds for it, never to be used.
Of the Tk 3,000 crore allocated in current fiscal year's budget, only Tk 10 crore was spent. In the upcoming fiscal year's budget too, Tk 3,000 crore has been set aside.
Muhith, in his budget speech last Thursday, however, acknowledged the delay. He presented the implementation status of some 17 projects to be undertaken under the PPP scheme, where the probable cumulative expenditure would be $8.22 billion.
The finance minister's statement shows that all the projects have been approved in principle or are in the study phase.
However, in the post-budget press conference last Friday Muhith said all preliminary work for implementation of the PPP projects has been complemented, with the projects set to take off in fiscal 2013-14.