Private Sector Infrastructure Development

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The Private Sector Infrastructure Development Project supports Bangladesh in its bid to develop a modern and efficient infrastructure system, with the significant participation of the private sector in the financing, construction, and operation of infrastructure facilities. This project has two components: project financing and sub-project transaction development. The financing component supports sub-projects in mobilizing adequate debt financing if they meet funding eligibility criteria, where the sub-project sponsors have reached the limit of mobilizing market-based financing. It is expected that the sub-projects will be structured as build-operate-own (BOO) or build-operate-transfer (BOT) projects (or variations thereof), and financed on a limited recourse basis. Transaction development is a government-led function involving initiatives by project agencies, line ministries, and other parastatals. Technical assistance will be available to Bangladesh agencies and line ministries to promote private sector participation, both at a policy level and to promote specific transactions. Assistance is also required by line managers and ministries prior to transactions, to establish proper framework and policies, identify viable sub-projects, and carry out feasibility studies. During transactions, assistance is required to conduct competitive and transparent procurement processes, market sub-projects to encourage good competition among quality sponsors, and manage the entire process of structuring, documentation, bidding, negotiations, and concession awards. After award, a core advisory services unit will be set up to continuously assist the private sector developer and the public sector counterpart agency with the project's timely construction, operation, and regulation.