Transcript Presentaion to PM

Foreign Investment in Bangladesh: Opportunities and Prospects
Venue: Hotel Ruposhi Bangla, Dhaka
Date: 29 March 2014
Presentation to The Hon’ble Prime Minister
PPP Program (2009-2013):
Achievements and
Deliverables
June 19, 2013
Syed A. H. Uddin
Chief Executive Officer
PPP Office (Prime Minister’s Office)
PPP Office, Prime Minister’s Office
Discussion Topics
1
Background: Vision and
International Perspective
Why was the PPP program launched?
How widely used and supported is PPP internationally?
PPP Program: Key
Deliverables (2009-2013)
What has been achieved since the launch of the PPP program?
PPP Project Pipeline
Development (2011-2013)
How many projects have been developed for PPP
implementation?
Delivery of PPP Office Role
and Remit
What has the PPP Office worked on for the last 18 months?
Recommendations and
Conclusions
What can be done to accelerate and increase scale of delivery?
2
3
4
5
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Bangladesh: A Decade of Growth
Bangladesh Economic Growth 2002-2011
8.0%
140
Composition of GDP
7.0%
120
Government
6%
100
5.0%
80
4.0%
60
3.0%
GDP (USD Bn)
GDP Growth Rate
6.0%
Agriculture
20%
40
2.0%
1.0%
20
0.0%
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
(F)
GDP (RHS)
Private
Services
57%
GDP Growth Rate
Bangladesh has registered steady
and consistent growth over the
last 10 years ... Even during the
recent credit crunch
Page 3
Manufacturing
17%
Presentation March 29, 2014
•Garment industry drives growth,
yet only contributes to 14% to GDP
•Economic growth is underpinned by
strong domestic demand,
accounting for nearly 80% of GDP
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6th Five Year Plan: The Drive for the PPP Program
“The Government recognizes that strong public private partnerships can play a
catalytic role in mobilizing additional resources as well as creating additional
capacity & help for implementing public programs...accordingly, Government has
put emphasis on PPP to ensure expeditious development of [public] services.”
- (Page 32), “Sixth Five Year Plan FY2011 – FY2015”
Sixth 5 Year Plan Infrastructure Target
> Increase infrastructure investment from 2% to 6% of GDP
> Target 77% investment from private sector
6%
Percentage of GDP
PPP is a key element of
the 6th Five Year Plan to
deliver the infrastructure
investments required to
deliver our target to
become a Middle
Income Country by 2021.
5%
4%
Public
Investment
3%
2%
Private
Investment
1%
0%
0
1
2
3
4
Plan Year
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PPP: Targeted Outcomes and Benefits
Targeted Outcomes:
Win-Win-Win Benefits:
1.
Accelerating investments
a)
2.
Improved quality
3.
Timely delivery
4.
Reduced costs
5.
Innovative solutions
b)
c)
Consumer: delivery of a services
that people want and would not have
access to at the same price, in a
business as usual situation.
Government: fulfillment of a
political need, social obligation,
development imperative.
Private Sector: generate a profitable
revenue stream and expand market
access.
The use of PPP for essential social and economic
infrastructure will enhance the quality of
services and relieve the strain on the
government budget
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PPP in the Global Context: Addressing Policy Continuity
PPP Practicing Countries
Africa
(76%)
South
America
(92%)
North
America
Asia
(98%)
World
(87%) Australia
(79%)
(73%)
*Source: PPP Office
research (2013)
More than 50
Multilateral &
Donor Agencies
work with PPP
Europe
(98%)
PPP recognised and accepted
globally as a crucial tool to aid
infrastructure development and
public service delivery
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A New Framework for PPP in Bangladesh
Government Policy:
New framework established by the Policy and Strategy
for Public Private Partnerships, 2010.
Represents a fundamental re-think of how PPPs are to
be pursued in Bangladesh
• Studied global best practices, success stories
• Conducted critical analysis of what has worked and
what did not
• Tailored approach for Bangladesh, accounting for
past experience, future goals
Conclusion:
A complete overhaul of the institutional framework
and how it operated, the approvals process, the project
development approach , communications and
marketing and the financing environment was a
necessity to create the conditions for success.
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PPP Program: Key Deliverables 2009 - 2013
Development of Implementation
Processes
Development of Enabling Framework
3.0 years
1.5 years
Significant increase in
delivery of outputs over
the period 2009-2013
Global PPP
Investors
Conference
CCEA
Approval of
PPP Law
(Dec 2012)
(Jun 2013)
CCEA
Approval of
Screening
Manual
(Jun 2013)
Finalize 11
Guidance &
Model Docs
PPP TAF
Gazette
PPP VGF
Gazette
(Jul 2012)
(Sep 2012
(Jul 2012)
PPP Unit
Established
(Jun 2011)
Budgetary
Support for
PPP
(Jun 2009)
PPP Program
Announced
(Jun 2009)
2009
Page 8
PPP Office Set
Up
ADP TA
Program
(Sep 2010)
(Apr 2011)
PPP Policy &
Strategy
Gazette
WB IPFF
Support to PPP
(Aug 2010)
(Mar 2011)
2010
2011
Presentation March 29, 2014
Engagement with Donor
Agencies for PPP Support:
ADB, WB, IFC, DFID, IDB,
JICA, CIDA and SCE
(Mar 2012)
( On-going)
Engagement with Private
Stakeholder
Sector Stakeholders,
Consultation
Chambers,
Banks, NBFI
on PPP Doc
and Investors
(Mar/Jun ‘12)
( On-going)
ice
> 30 Capacity Building and
Sensitization Courses
CEO
delivered to >1700 public
Appointed
and private sector
(Jan 2012)
( On-going)
PPP Pilot
Projects
Initiative
2012
2013
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The PPP Process
Process specified in government Policy and Strategy for PPP, 2010
Only pick projects
suitable for PPP
Monitor
implementation; use
learning to inform
policy/next projects
Screen
PreDevelop
Monitor
CCEA
Approval
Private sector
arranges finance;
Govt provides info
and supports to
help close financing
Finance
Support
Tender
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Leverage
Government
resources to
prepare
Provide professional
development
support backed by
early stage funding
Prepare ALL docs
and support upfront
+ Robust bid process
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PPP Project Pipeline Analysis 2011 - 2013
PPP Screening
• Identification of project
• Screening to confirm viability
PPP Pipeline Trend Analysis 2011-2014
60
CCEA Approval
• In Principal Approval by
CCEA / Line Minister
Procurement
• REOI, RFQ, RFP
• Selection of Tenderer
Significant boost in
Processing of PPP
Projects after
PPP Office
Operations
50
Number of PPP Projects
Project Development
• Advisor Appointment
• Feasibility Study & Bid Docs
55
40
30
30
20
17
20
14
10
10
5
7
6
2
0
3
1
2
0
PPP
Screening
Jun-11
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36
34
CCEA In-Principle
Approval
Jun-12
Advisor
Appointment/DFS
Jun-13
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Procurement
Jun-14 (forecast)
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PPP Project Dashboard
PPP Projects Pipeline
(Note: Project names have been shortened)
PPP Projects by Size
SL.
Sectors
Implementing Agency
Project
Size
Name of the Project
Estimated
Cost (US$m)
1
Road
2
ICT
3
Health
DGHS
4
Health
DGHS
5
Bridge
BD Bridge Auth
6
Road
RAJUK
7
Port
MPA
8
Social Care
DSS
Oboshor: Senior Citizen Health Care Complex
Medium
9
Road
Dhaka-Chittagong Access Controlled Highway
Large
$1,585
10
Rail Bridge
Roads & Highways
Dept
Bangladesh Railway
Fulchhari Bahadurabad MG Railway Bridge
Large
$1,400
11
Rail Bridge
Bangladesh Railway
Dual gauge Double line Bangabandhu Bridge
Large
$1,000
12
Road
Dhaka Bypass 4 Lane (Joydevpur-Madanpur)
Large
$114
13
Tourism
Roads & Highways
Dept
BD Parjatan Corp
5 Star Beach Hotel with 18-Hole Golf Course
Large
$125
34 Projects
14
Housing
Nat Housing Assoc
NHA Housing Satellite Project at Mirpur
Large
$57
15
Port
CTG Port Authority
Construction of Laldia Bulk Terminal
Large
$60
($12,573m)
16
Bridge
BD Bridge Authority
2nd Padma Multipurpose Bridge Paturia-Goalundo
Large
$1,902
17
Port
CTG Port Authority
3rd Sea Port
Large
$1,200
18
Road
Jatrabari-Sultana Kamal Brdg-Tarabo PPP Rd
Large
$44
19
Road
Hemayetpur-Singair-Manikganj PPP Road
Large
$84
20
Housing
Roads & Highways
Dept
Roads & Highways
Dept
RAJUK
High–Rise Apartment Complex Purbachal Phase 1
Large
$1,199
21
Airport
CAAB
Medium
$23
22
Health
Bangladesh Railway
Med College/Hospital Upgrade-Kamlapur
Large
$97
23
Health
Bangladesh Railway
Medical College/Hospital Upgrade- CRB Chittagong
Large
$73
24
Health
Bangladesh Railway
Med College/Hospital Upgrade- Saidpur Nilphamary
Large
$73
25
Health
Bangladesh Railway
Med College/Hospital Upgrade-Paksey Pabna
Large
$73
26
Health
Bangladesh Railway
New Medical College & Hospital - Khulna
Large
$97
27
Rail Depot
Bangladesh Railway
New Inland Container Depot - Dhirasram Rail
Station
Large
$150
Large
$40
Large
$36
Large Project
25 Projects
($12,455m)
Medium Projects
Small Projects
6 Projects
3 Projects
($110m)
($7m)
Total
BD Bridge Authority
Large
$1,088
Large
$125
40 beds Hemodialysis Centre at CMCH
Small
$2
Hemodialysis Centre at NIKDU
Small
$1
Dhaka-Ashulia Elevated Expressway
Large
$1,471
Flyover - Santinagar to Mawa over Buriganga River
Large
$313
2 Jetties at Mongla Port through PPP
Large
$50
Dhaka-Elevated Expressway
BD Hi-tech Park Auth Hi-tech Park at Kaliakoir
Multi Mode Surveillance System (Radar) HSIA
Inland Container Terminal PPP-Khanpur
$6
28
Port
BIWTA
29
Tourism
Bangladesh Railway
5 Star Hotel at Zakir Hossen Road, Chittagong
30
Hospitality
Bangladesh Railway
Shoping Mall with Hotel-cum-Guest House in Khulna Medium
$29
31
Hospitality
Bangladesh Railway
Shoping Mall with Hotelin Chittagong
Medium
$11
32
BD Petroleum Corp
LPG Bottling Plant (Jetty, Pipelines) Kumira
Medium
$31
33
LPG /
Energy
Hospitality
Mongla Port Tower
Medium
$10
34
Fisheries
Small
$4
MPA
Dep of Livestock Serv 16 X Fisheries and Livestock Projects
Note: (1) All figures are initial estimates and will be updated in project
development & procurement phase.
(2) Figures have been converted to US$ @ BDT80=US$1
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International Comparator: PPP Programs in Asia
The 2011 Infrascope*: PPP Environment in Asia
Evaluated Scores
100.0
80.0
60.0
40.0
20.0
0.0
Emerging Asian
Countries
Papua N. Guinea (16)
Developed
Asian Countries
Mongolia (15)
Benchmark
Countries
Vietnam (14)
(current estimate)
Kazakhtsan (13)
Pakistan (12)
Bangladesh (11)
Thailand (10)
Indonesia (9)
Phillipines (8)
China (7)
Japan (6)
India (5)
Gujarat State (4)
Korea Rep. (3)
UK (2)
Australia (1)
Bangladesh
Nascent Asian
Countries
* Commissioned by ADB, Compiled by Economic Intelligence Unit (2011)
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PPP Office: Delivery of Roles & Remit
Stakeholder Engagement
Expert
Promotion
Project
& Marketing
Facilitation
Hemodialysis Centre
at NIKDU & CMCH
Dhaka Ashulia Elev.
Expressway
2 Jetties at Mongla
Port through PPP
Flyover from
Shantinagar to
Mawa
Monitoring and
Reporting
Senior Citizen
Health Care &
Hospitality
Upgrading Dhaka
By Pass Road to 4
Lanes
Upgrading of
Hemayatpur Singair
Manikganj
Screening &
Approving
Projects
Mirpur Low Cost
Housing Complex
Capacity Building
Screening
Manual
Project
Development
Safeguards
System
Tendering
Manual
Policy
Development &
Enforcement
Model
PPP
Contracts
Office
Donor Agency
Panel of Transaction Advisors Role
Appointing
Transaction
Engagement
Advisors
Donor Agency
Engagement
Capacity
Building
Screening & Approving Projects
Monitoring and Reporting
Stakeholder
Expert Project
Financial
Technical
Analysis
Assistance
Engagement
Facilitation
PPP Office has a
Policy
wide multi discipline
Promotion
&
Development
Screened &
Marketing
based technical &
& Enforcement
Approved
commercial role
34 PPP Projects
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Concluding Remarks
Key Messages
1
PPP – A universal
model to support
public finances
2
Commentary
►
With over 80% of the world applying PPP, it is
a now a globally accepted model for supporting
public finances in accelerating the
development and improving the delivery of
infrastructure and public services.
►
There is a strong acceptance and keen interest
in PPPs across various stakeholder groups.
This has been aided by use of PPP modalities
since at least the 1990’s in different sectors
(e.g. power, telecoms, ports).
►
PPPs programs require substantial reform and
capacity enhancement to ensure success over
a longer time horizon.
Sustained long term policy commitment is vital
to provide platform for delivery and success.
General
acceptability of
PPP
3
Need for long
term vision &
commitment
4
►
►
Bangladesh PPP
program to be
visible imminently
5
►
►
PPP well placed
for development
target
Page 14
Significant development has taken place over
the 1st 18 months of PPP Office operation.
The result of all this detailed work will be
visible imminently when 34 projects worth a
combined $12.5bn are implemented.
The PPP program is well placed to meet the
transformation goals envisaged in our
Millennium Development Goals and Vision
2021.
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Contact Details
Public Private Partnership Office
(Prime Minister's Office)
Address:
AIMS Tower (13th Floor)
51-52 Mohakhali
Dhaka-1212, Bangladesh
Phone: +88-02-9898530
E-mail: [email protected]
Fax: +88-02-9898511
Website: www.pppo.gov.bd
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