Policies and Guidelines >> Eligible Sectors

The sectors or sub sectors in which Private Infrastructure Projects may be implemented are: telecommunication, energy, power, port development (sea, river and land), communications, airports and terminals, tourism industry, water supply and sewerage, industrial estates and parks, city and property development, land reclamation, dredging of rivers, health and educational facilities, waste management and urban, municipal and rural infrastructure.

Policies and Guidelines >> Specific Support Provided


The development of private infrastructure requires support from ministries other than the Line Ministry for carrying out the project. Some specific supports identified in the Guidelines are:

	Priority for land acquisition or other land matters in Private Infrastructure Projects;
	Expeditious transfer of land from one ministry to another;
	In property development projects, a Line Ministry or Executing Agency may convert its full ownership of land to a partial ownership of land and buildings, and cash;
	Priority and allocation of funds for public sector projects associated or linked to a private sector project.

Policies and Guidelines >> Capacity Buiding


The Guidelines emphasizes on capacity building. PICOM is required to prepare a comprehensive plan, in consultation with the Line Ministries and Executing Agencies, for developing the skills of Government officials for Build-Operate-Transfer (BOT), Build-Own Operate (BOO) etc. projects. PICOM reviews skill gaps and identifies appropriate training courses on private sector development.

Policies and Guidelines >> Technical Advisers for Private Infrastructure Projects


Consultants used for Private Infrastructure Projects have to possess experience in private sector infrastructure transactions. Local expertise needs to be promoted and developed. If possible, Government utilizes its own funds hiring high-level commercial, contractual and negotiation consultants. Consultants or advisers may be engaged through success fees mode in which case the fees is recovered from the Investors.

Policies and Guidelines >> Commercial Aspects


The Executing Agency and/or the Line Ministry, and the winning tenderer/the project company enters into a contract for a project. The contract lays out in detail, the rights and obligations of the Executing Agency, the Government and the Project Company. The allocation of risk between the Government and the Project Company is based upon the principle that the party best able to manage a risk should bear that risk. In the first few flagship projects in a particular sector, the Government may need to assume more risks. Such risks to the Government shall however reduce over time as a sector matures with more private investment.

The Executing Agency carries out a feasibility study with broad functional specifications on technical matters but gives emphasis on commercial aspects, assessing risks and regulatory frameworks very carefully. An Investor has the responsibility for the assessment of viability including commercial risks, detailed feasibility and engineering parameters.

The term of a BOT Project can be up to 20 years for infrastructure projects involving process plant and machinery. For infrastructure projects dominated by civil construction such as bridge, road, port, water supply etc, the term could be up to 30 years. The Government may seek a Royalty on a Project, through a combination of fixed and variable components, including escalation indices or adjustments.

Financing a Project is the sole responsibility of the private Investor. The Government does not provide any direct guarantee of the Investor's loans for the repayment of its debts in the event of default in its loan obligations. The termination liability of the Government for all Large Infrastructure Projects is monitored by PICOM. Bangladesh Bank or a suitable organisation monitors the macro economic and foreign exchange impact arising from Private Infrastructure Projects.