The allocation for the matching fund to implement development projects under Public Private Partnership (PPP) to increase by Tk500 crore in the budget for 2020-21. Finance minister AHM Mustafa Kamal has proposed Tk3500 for PPP projects, which was Tk3000 crore in FY 2019-20. The minister also proposed to continue the existing VAT exemption facility for PPP projects along with some other sectors. He also said, six projects under Public-Private Partnership are underway. To increase the number of PPP initiatives in improving the country’s infrastructure, step has been taken to amend the Bangladesh Public-Private Partnership Act, 2015. Former Finance Minister Abdul Maal A Muhith introduced PPP system in the budget speech for the fiscal year 2009-10, to find financing worth Tk196000 crore for the next five years from the private sector, Tk39 crore each year. Despite no significant success story of implementation of PPP projects but Mayor Hanif Flyover, the government has allocated over Tk2000 crore in each fiscal. However, the government has intention to implement about 30 percent of infrastructure projects. In this regard, the Planning Commission has introduced a list of 61 projects to implement under PPP arrangement. Among these, Dhaka Elevated Expressway, 20-km road worth Tk8940 crore will connect Shahjalal International Airport to Kuthubkhali of Dhaka-Chittagong highway. Sultana Afroze, chief executive officer of the PPP office told the Business Standard, “Five ministries and division of the government will implement 61 PPP projects.” “The government is seeking alternative source of funding to recover from Covid-19 crisis, and the PPP arrangement would help to achieve this purpose,” she added.
