PPPA inks Financing Partnership with 15 institutions

The Public Private Partnership Authority (PPPA), Prime Minister's Office, has signed a Memorandum of Understanding on PPP Financing Partnership with 15 banks and non-banking financial institutions on Thursday at Hotel Pan Pacific Sonargaon in the capital.

Dr Ahmad Kaikaus, principal secretary to the prime minister attended the event as chief guest; while Sheikh Mohammad Salim Ullah, secretary, Financial Institutions Division, was present as special guest. Sultana Afroz, secretary to the government and CEO of the PPP Authority, presided over the ceremony, reads a press release.

The PPP financing partner banks and other institutions are - Eastern Bank Limited

Prime Bank Ltd, HSBC, City Bank Ltd, Standard Chartered Bank, Mutual Trust Bank Ltd, Southeast Bank Ltd, Midland Bank Ltd, Lankan Alliance Finance Ltd Prime Bank Investment Limited, NDB Capital Ltd, Industrial and Infrastructure Development Finance Co. Ltd, Brac EPL Investments Ltd, Riverstone Capital Ltd, and UCB Investment Ltd.

Dr Ahmad Kaikaus said, "To ensure quick and easy access to project information for lenders and to facilitate financial closure for selected PPP projects this MoU shall play a pivotal role. As domestic financial institutions need to be made more aware in PPP projects, the signing of this MoU will be a milestone event in this regard."

Sultana Afroz acknowledged the importance of timely finance to the projects' successful implementation. She mentioned, "PPP is the brainchild of Prime Minister Sheikh Hasina and the PPP Authority is working tirelessly for the infrastructural development of the country."

According to the long-term plan of the government, to become a developed country by 2041, the estimated amount of investment from the PPP project is about $3.8 billion per year. In addition, 5.5% of the total SDG financing requirement has been targeted through PPP.

In 2016, the PPP Authority signed a MoU with 14 banking and non-banking financial institutions. The tenure of the MoU has ended and new banks have shown interest to be PPP financing partners, therefore, this MoU signing event took place.

This MoU will exist for the next five years from the signing date. It is expected that the PPP Financing Partners will be able to finance the PPP projects under the MoU and contribute to the development of the much-needed infrastructure of the nation. A Non-Disclosure Agreement (NDA) was also signed to complement the MoU.