Growth Empirics of Public Private Partnership (PPP) in the Infrastructure Development of Bangladesh

Abstract

According to the 7th Five-year Plan, Bangladesh requires GDP’s 6 percent or nearly $15 billion investment in physical infrastructure and service sector a year to achieve the development goals set in Vision 2021 and Vision 2041. Out of this required investment, the share of PPP has been estimated at GDP’s 1.8 percent or 4.5 billion a year, which is 30 percent of total investment in infrastructure and service sector. To meet the rising infrastructure investment demand, the government has already directed the ministries and divisions to implement 30 percent of their investment projects under PPP. The paper analyses the growth empirics of PPP in the infrastructure development of Bangladesh. Regression analysis on the secondary data reveals the transformation of PPP landscape in Bangladesh over the last five years. The paper also denotes that the reforms and initiatives introduced over a decade have led to the establishment of one of the largest PPP project pipelines across the sectors in emerging markets..
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