$8.38 billion Japanese fund to revamp transport system

Japan will invest $8.38 billion, equivalent to Tk71,000 crore, through public-private partnerships to implement five transport projects.

The matter will be discussed today at the 4th meeting of the Bangladesh-Japan Joint PPP Platform.

About $2,70 billion of the amount will be spent on the construction of the south side of the outer ring road around the capital.

Two Japanese investors are also willing to construct two multimodal transport hubs centring on Kamalapur and airport railway stations at a cost of $515 million.

The Metro Rail Line-2 from Gabtoli to Chattogram Road in Narayanganj via Bosila, Jigatola, New Market, Palashi, Motijheel, Kamalapur and Demra will get $3.47 billion investment.

Officials of the PPP Authority (PPPA) Bangladesh said a decision had already been made on the investments through government-to-government arrangements.

But the actual expenditure of the projects could not be estimated without feasibility studies, they said. Today's meeting is intended to expedite the procedures, including feasibility studies and the preliminary designs, prior to the start of the construction.

Under a PPP, Chattogram to Cox's Bazar Highway will be upgraded, which has been estimated to cost $1.69 billion.

The Bangladesh government also wants to upgrade the Savar-Paturia road for the construction of a second Padma bridge, with support from Japan, according to the PPP authority. A proposal on this will be placed in the meeting.

Japanese Mitsubishi Corporation has proposed to manage and maintain the third terminal of Dhaka's Hazrat Shahjalal International Airport, which is undergoing construction.

The meeting will discuss this matter as well.

Principal Secretary to the Prime Minister Ahmad Kaikaus will lead the Bangladeshi side while a vice minister will head the Japanese side.

According to sources at the PPPA office, the first meeting of the board of governors of the PPPA approved "Policy for implementing PPP projects through government-to-government partnership" in 2017.

That same year, the first meeting of Bangladesh-Japan Joint PPP Platform was held. Eighteen projects were identified at the time for Japanese investments.

Chief Executive Officer of PPPA Sultana Afroz said Japan as the second largest development partner of Bangladesh had come forward to mitigate the shortage of funds for infrastructure.

The proposed Japanese investments constitute 30% of the total fund of PPP projects in the pipeline. The transport sector will have a turnaround if the projects are implemented.