The government should digitalise land records and property title registration to help stakeholders find information about properties at ease with a view to giving a boost to the implementation of projects under the public-private partnership (PPP) framework, said speakers yesterday.

In Bangladesh, there is no regulation on land rights under the PPP framework and land documentation is largely manual, said Naser Ezaz Bijoy, chief executive officer of Standard Chartered Bangladesh.

"So, increasing access to and preservation of property records should be initiated by digitalising all land records and property title registration." 

He made the remarks while giving a presentation at a session styled "PPPs for Vision 2041: Private Sector Role and Investment Opportunities" on the third and concluding day of the Bangladesh Business Summit at the Bangabandhu International Conference Centre in the capital.

Naser said laws and regulations make it complex, long, and costly to administer and find relevant information for a piece of land.

So, the PPP Authority can have a coordinator for ministerial approvals for land and leases, resettlement and relocation, and assess land-related costs at the outset, he said.

Naser pointed out that government employees overseeing execution usually have short-term appointments while PPP projects are long-term in nature.

He recommended targeted capacity building in the line ministries and implementation authorities, in partnership with multilateral agencies.

He said project review and milestone tracking are done by an inter-ministerial committee. But the PPP Authority needs a strong board of advisers comprising representatives from the private sector and multilateral agencies in the areas of finance, legal issues and engineering, procurement and construction.

Speaking about the bankability challenge, Naser said a lack of sufficient protections for lenders as well as confidence in future cashflows limit bankability, creating challenges for long-term financing.

So, he called for engaging financial advisers and legal teams at the onset to incorporate contractual terms that will make projects bankable.

"This will provide necessary comforts for lenders to offer optimised debt strategy through short and long-term solutions."

The banker suggested using take-out financing, in which a second lender promises to take over a loan at some point in the future, thereby encouraging the original lender to provide longer-term debt during the construction phase.

Existing debts can be refinanced through project bonds for pension or sovereign wealth funds with an appetite for long-term investments. "New solutions such sustainable bonds or sukuks can be pursued for a wider range of investors," he added.

Mushfiqur Rahman, CEO of the Public Private Partnership Authority, said the agency seeks to stimulate economic growth, innovation, expertise in physical and social infrastructure development, and efficiency in project delivery and operations while providing the private sector with a chance to expand their businesses.

He said Bangladesh is making efforts to strengthen the PPP prospects by extending legal and policy support and expanding the public sector's capacity and funding assistance, the market capacity and the private sector's participation and access to finance.

Takeo Koike, a director of the Office of the Public-Private Partnership at the Asian Development Bank, said the ADB is working as a partner in the implementation of many development projects.

"He hopes the trend would continue in the future.

Shafiqul Islam Akand, chief operating officer of the Dhaka Bypass Expressway Development Company Limited, said the PPP market in Bangladesh is more developed compared to neighbouring countries. However, PPP implementation has faced a number of difficulties.

Mamun Rashid, managing partner of PwC Bangladesh, said implementing a PPP project is hampered by a lack of confidence between the government and the private sector.

"The cost of project execution is rising and there are many difficulties in implementing PPP projects."

Rashid suggested changing the mindsets of both the public and private sectors for ensuring the sustainable development of the country.

Nihad Kabir, a former president of the Metropolitan Chamber of Commerce and Industry, said there had been reluctance among large foreign investors to come into PPPs in Bangladesh by forming joint ventures with local partners because they were not confident about the capacity of Bangladeshi firms.

Lee Jang-keun, ambassador of South Korea to Bangladesh, said his country would continue to stand by Bangladesh in its journey towards becoming an infrastructure powerhouse with modern technologies and ample experience in infrastructure development.