Do proper feasibility study before seeking funds

The Public-Private Partnership (PPP) Authority should carry out a proper feasibility study to see whether a project is viable or not before talking to any investor or development partner for funding, said the cabinet secretary yesterday.

"The development partner or investor will not talk to you if you don't have any feasibility study," said Khandker Anwarul Islam.

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The secretary made the comments while delivering a speech at an event titled "Sustainable Development in the Context of Post-Pandemic and Climate Vulnerability: PPP's Role, Prospects and Challenges in Bangladesh."

The PPP Authority organised the programme in partnership with the United Nations Development Programme (UNDP) Bangladesh.

Islam said the feasibility report gives a precise economic analysis and the cost-benefit analysis related to a project, as well as whether it would be undertaken by the government or the private sector and would give a significant return to the investor.

Because of the proper feasibility study, the construction of the Padma bridge and the Karnaphuli tunnel did not stop for a single day despite the coronavirus pandemic, the cabinet secretary said.

The government is going to open the Padma bridge on June 30, he also said.

While making a presentation, AKM Mamunur Rashid, climate change specialist of the UNDP Bangladesh, said the current financing gap for climate actions in Bangladesh is $3 billion annually. 

"Diverting development finance to meet climate emergencies is also causing development deficits. In this context, PPP is one of the most feasible financing options to reduce financing gaps and cut the development deficits of the government."

The PPP Authority is developing an innovation lab to explore the opportunities for climate-smart PPP projects in Bangladesh.

Mohammad Muslim Chowdhury, Comptroller and Auditor General, Ito Naoki, ambassador of Japan to Bangladesh, Li Jiming, ambassador of China, Essa Yousef Essa Alduhailan, ambassador of Saudi Arabia, Mustafa Osman Turan, ambassador of Turkey, and Sultana Afroz, CEO of the PPP Authority, also spoke.