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Presentation to The Hon’ble Prime Minister June 19, 2013

Presentation to The Hon’ble Prime Minister June 19, 2013. Foreign Investment in Bangladesh: Opportunities and Prospects Venue: Hotel Ruposhi Bangla, Dhaka Date: 29 March 2014. PPP Program ( 2009-2013): Achievements and Deliverables. Syed A. H. Uddin Chief Executive Officer

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Presentation to The Hon’ble Prime Minister June 19, 2013

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  1. Presentation to The Hon’ble Prime Minister June 19, 2013 Foreign Investment in Bangladesh: Opportunities and Prospects Venue: Hotel Ruposhi Bangla, DhakaDate: 29 March 2014 PPP Program (2009-2013): Achievements and Deliverables Syed A. H. Uddin Chief Executive Officer PPP Office (Prime Minister’s Office) PPP Office, Prime Minister’s Office

  2. Discussion Topics 1 Why was the PPP program launched? How widely used and supported is PPP internationally? Background: Vision and International Perspective 2 What has been achieved since the launch of the PPP program? PPP Program: Key Deliverables (2009-2013) 3 How many projects have been developed for PPP implementation? PPP Project Pipeline Development (2011-2013) 4 What has the PPP Office worked on for the last 18 months? Delivery of PPP Office Role and Remit 5 What can be done to accelerate and increase scale of delivery? Recommendations and Conclusions Strictly Confidential Presentation March 29, 2014 Page 2

  3. Bangladesh: A Decade of Growth • 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 Bangladesh has registered steady and consistent growth over the last 10 years ... Even during the recent credit crunch Strictly Confidential Presentation March 29, 2014 Page 3

  4. 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 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. Strictly Confidential Presentation March 29, 2014 Page 4

  5. PPP: Targeted Outcomes and Benefits Targeted Outcomes: • Accelerating investments • Improved quality • Timely delivery • Reduced costs • Innovative solutions Win-Win-Win Benefits: • 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 Strictly Confidential Presentation March 29, 2014 Page 5

  6. PPP in the Global Context: Addressing Policy Continuity PPP Practicing Countries More than 50 Multilateral & Donor Agencies work with PPP • Africa (76%) • South America (92%) • Asia • (98%) • World (87%) • North America • (73%) • Australia (79%) • Europe (98%) *Source: PPP Office research (2013) PPP recognised and accepted globally as a crucial tool to aid infrastructure development and public service delivery Strictly Confidential Presentation March 29, 2014 Page 6

  7. 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. Strictly Confidential Presentation March 29, 2014 Page 7

  8. PPP Program: Key Deliverables 2009 - 2013 Development of Implementation Processes Development of Enabling Framework 3.0 years 1.5 years Global PPP Investors Conference (Dec 2012) CCEA Approval of PPP Law (Jun 2013) CCEA Approval of Screening Manual (Jun 2013) Significant increase in delivery of outputs over the period 2009-2013 Finalize 11 Guidance & Model Docs (Jul 2012) PPP TAF Gazette (Jul 2012) PPP VGF Gazette (Sep 2012 PPP Pilot Projects Initiative (Mar 2012) PPP Unit Established (Jun 2011) Engagement with Donor Agencies for PPP Support: ADB, WB, IFC, DFID, IDB, JICA, CIDA and SCE ( On-going) Budgetary Support for PPP (Jun 2009) PPP Office Set Up (Sep 2010) ADP TA Program (Apr 2011) Stakeholder Consultation on PPP Doc (Mar/Jun ‘12) Engagement with Private Sector Stakeholders, Chambers, Banks, NBFI and Investors ( On-going) ice CEO Appointed (Jan 2012) > 30 Capacity Building and Sensitization Courses delivered to >1700 public and private sector ( On-going) PPP Program Announced (Jun 2009) PPP Policy & Strategy Gazette (Aug 2010) WB IPFF Support to PPP (Mar 2011) 2009 2012 2013 2010 2011 Strictly Confidential Presentation March 29, 2014 Page 8

  9. 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 Leverage Government resources to prepare • CCEA Approval Provide professional development support backed by early stage funding Private sector arranges finance; Govt provides info and supports to help close financing Prepare ALL docs and support upfront + Robust bid process Strictly Confidential Presentation March 29, 2014 Page 9

  10. PPP Project Pipeline Analysis 2011 - 2013 • PPP Screening • Identification of project • Screening to confirm viability • CCEA Approval • In Principal Approval by CCEA / Line Minister • Project Development • Advisor Appointment • Feasibility Study & Bid Docs • Procurement • REOI, RFQ, RFP • Selection of Tenderer Significant boost in Processing of PPP Projects after PPP Office Operations Strictly Confidential Presentation March 29, 2014 Page 10

  11. PPP Project Dashboard PPP Projects by Size 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 Strictly Confidential Presentation March 29, 2014 Page 11

  12. International Comparator: PPP Programs in Asia Bangladesh (current estimate) Benchmark Countries Developed Asian Countries Emerging Asian Countries Nascent Asian Countries * Commissioned by ADB, Compiled by Economic Intelligence Unit (2011) Strictly Confidential Presentation March 29, 2014 Page 12

  13. PPP Office: Delivery of Roles & Remit Donor Agency Engagement Screening & Approving Projects Expert Project Facilitation Capacity Building Stakeholder Engagement Hemodialysis Centre at NIKDU & CMCH Dhaka Ashulia Elev. Expressway 2 Jetties at Mongla Port through PPP Flyover from Shantinagar to Mawa Screened & Approved 34 PPP Projects Senior Citizen Health Care & Hospitality Upgrading of HemayatpurSingairManikganj Upgrading Dhaka By Pass Road to 4 Lanes Mirpur Low Cost Housing Complex PPP Office Role Model Contracts Project Development Screening Manual Safeguards System Tendering Manual Panel of Transaction Advisors Promotion & Marketing Monitoring and Reporting Financial Analysis Technical Assistance PPP Office has a wide multi discipline based technical & commercial role Policy Development & Enforcement Strictly Confidential Presentation March 29, 2014 Page 13

  14. Concluding Remarks Key Messages Commentary 1 PPP – A universal model to support public finances • 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. 2 General acceptability of PPP • 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). 3 Need for long term vision & commitment • 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. 4 Bangladesh PPP program to be visible imminently • 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. 5 PPP well placed for development target • The PPP program is well placed to meet the transformation goals envisaged in our Millennium Development Goals and Vision 2021. Strictly Confidential Presentation March 29, 2014 Page 14

  15. Contact Details Public Private Partnership Office (Prime Minister's Office)Address: AIMS Tower (13th Floor) 51-52 MohakhaliDhaka-1212, Bangladesh Strictly Confidential Presentation March 29, 2014 Page 15

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