Organised by Civil Service College, Dhaka

Md. Abu RashedSenior Consultant (PPP)

Infrastructure Investment Facilitation Center18 February 2012

PPP Frameworks in Bangladesh

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Lecture No. 4

22

PART A: Forms of PartnershipsPART A: Forms of Partnerships• IntroductionIntroduction

• Type of PPP’sType of PPP’s

PART B: PPP Frameworks of BangladeshPART B: PPP Frameworks of Bangladesh• First Generation PPPsFirst Generation PPPs

• Second Generation PPPsSecond Generation PPPs

• Third Generation PPPsThird Generation PPPs

PART A: PART A:

Forms of Forms of PartnershipsPartnerships

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Medium to long term relationship between the public and private Sector

Enable Government to work with private sectors to provide infrastructure

Involves sharing and transferring of risks and rewards between public and private Sector

Attempts to utilise multi-sectoral and multi-disciplinary expertise to structure, finance and deliver desired policy outcomes

Clear governance structures established to manage the partnerships

Achieving improved value by

• utilising the innovative capabilities

• skills to deliver performance improvements and

• efficiency savings

Leveraging private sector expertise and capital

• to obtain efficiency gains in service delivery

• and asset creation

Life-cycle responsibility, value for money, output specification, risk transfer fundamental

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Service ContractsService Contracts Management ContractsManagement Contracts Lease ArrangementsLease Arrangements ConcessionsConcessions

• BOOTBOOT• BOTBOT• BOOBOO• BTBT• BTOBTO• ROTROT• ROMROM• SOTSOT

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Duration (yrs)Increasing level of delegation, risk & irreversibility

Service Service contractscontracts

ManagemeManagement nt contractscontracts

LeasesLeases

ConcessionsConcessions

DivestituresDivestitures100 % non-public 100 % non-public ownershipownership

100 % Public 100 % Public ownershipownership

5 10 15 20 25 30

BOTBOT

BOOBOO

Provider

Enabler/ Regulator

Government’sRole

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Equity Investors

Lenders/ Institutional Investors

Borrower / Concessionaire

Executing Agency

Dividends

Equity InvestmentDebt Finance

Debt Service (Principal + Interest)

Concession Agreement

Toll Payments

Revenues/Cash FlowsProject

Construction, Operations and

Maintenance

Toll Rate/ Fare Collection

Revenue

Government of

Bangladesh

Performance Guarantee

Annuity Payments

PART B: PART B:

PPP Frameworks PPP Frameworks of Bangladeshof Bangladesh

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