2 more projects dropped

Two more development projects to be implemented following a public-private partnership module under Bangladesh-Japan joint initiative have been dropped.

The projects are expansion of Chattogram-Cox's Bazar Highway and the upgrading of Nabinagar-Manikganj-Paturia Highway into an expressway.

The decision came at the sixth Bangladesh-Japan Joint PPP Platform meeting held in Dhaka on March 18 this year, shows its minutes.

With the two, five projects have been dropped from the government-to-government initiative, which had created hopes of receiving huge investments from Japanese companies.

The development came at a time when most of the other projects under the initiative could not make significant progress over the last six years due to multiple problems.

Most of the projects were included in the list without carrying out any studies. So, when the studies were done, the projects were found not to be viable for PPP, leading to their exclusion from the list, officials said.

Besides, some Japanese companies involved in the process needed more engagement, they added.

However, a new project for building two bridges -- Tora Bridge on Dhaka-Aricha highway and the second Bhairab Bridge -- was included in the initiative.

Following an agreement signed between Public-Private Partnership Authority (PPPA) in Bangladesh and the Ministry of Land, Infrastructure, Transport, and Tourism of Japan in 2017, Japanese companies will invest under the initiative without taking part in any bidding.

At the platform's first meeting in December 2017, Bangladesh's PPPA sought multi-billion-dollar support from Japan for 18 infrastructure projects.

But Japanese companies showed interest in investing US $6.4 billion in six projects -- a multi-modal transport hub each at Kamalapur and Airport Railway stations; an inland container depot at Dhirasram in Gazipur; the improvement of Chattogram-Cox's Bazar highway; the outer ring road around Dhaka; and Mass Rapid Transit (MRT) Line-2.

Three projects on the list -- multi-modal transport hub at Airport Railway Station, the inland container depot, and MRT Line-2 -- were withdrawn earlier.

During the sixth platform meeting, it was decided to delist two more.

The Chattogram-Cox's Bazar Highway was supposed to be expanded under the initiative and a sub-working group (SWG) -- led by Marubeni Corporation -- was selected for the work. The project's feasibility study was also done.

But during the fifth platform meeting in October 2022, a representative of Roads and Highways Department said JICA would provide a loan for a separate project undertaken to remove bottlenecks at five points on the Chattogram-Cox's Bazar highway.

Implementation of the project will be faster if it is done with a JICA loan instead of PPP. Besides, it will eliminate the risk of design uniformity and synchronisation, said the RHD representative.

The issues were also discussed in the sixth platform meeting and a representative of Marubeni Corporation suggested carrying out a study about the possibility of a PPP modality for the operation and maintenance of this road after project completion.

Given the situation, the meeting decided to delist the project and said the discussion regarding operation and maintenance following the PPP module may continue between RHD and the SWG.

Regarding the Nabinagar-Manikganj-Paturia highway project, an RHD representative said this project is not viable in terms of traffic projection as there was a significant drop in traffic on this highway following the opening of Padma Bridge.

As the SWG agreed to the RHD's proposal, the meeting decided to delist the project.

Another project for constructing Dhaka Outer Ring Road is also on the verge of withdrawal from the initiative, as RHD disagreed with a Japanese company's proposal to implement only one of the three parts of the road.

The decision concerning the withdrawal of the project from the platform shall be decided after RHD and Road Transport and Highways Division discuss it with MLIT, according to the meeting's minutes.

Regarding the Kamalapur Multi-Modal Transport Hub project, it was decided that Bangladesh Railway and SWG will continue to work with the stakeholders to fulfil the conditions to move forward with the project in line with proposed schedule.

Regarding Chattogram Metropolitan Sewerage Project, the meeting decided that the SWG concerned will carry out a risk assessment on property connections, and next decision will be taken based on the findings.

In connection with the project for operation and maintenance of the third terminal of Hazrat Shahjalal International Airport, the meeting decided that Civil Aviation Authority of Bangladesh and the SWG concerned will continue discussions regarding the schedule and key contractual terms.