Procurement under public private partnership: a study on its process efficiency in Bangladesh

Abstract

With its alternative funding mechanism, improved efficiency and scope for innovation, PPP has emerged as viable alternative to traditional procurement to meet the growing demand of infrastructure in Bangladesh. While there have been many studies on overall impact of different sectoral PPP projects, focused study on the PPP procurement process of Bangladesh has not been done before which is the focus of this practicum. Review of the PPP procurement process of Bangladesh shows that regulatory framework of the PPP procurement process in Bangladesh are efficient and streamlined. Data analysis shows that all three projects reviewed took substantially more time to complete their procurement process compared to the expected timeframe. Further analysis of the procurement timeframe of each project shows that the different project has taken substantially more time compared to expected timeframe in different phases. The Dhaka Bypass project has taken more time in bidding phase while RAD project has taken more time in approval and award phase which means these projects faced different challenges and shortcomings. To address the issues identified, the practicum suggested recommendations such as capacity development of officials, organizations and agencies, improving the variables that can improve the overall PPP project implementation environment such as long term project financing, improving legal framework for contract management etc.