Japan’s interest in big projects

MEDIA report said more than a dozen Japanese companies have shown interest to invest in eight big infrastructure projects in Bangladesh, including a second Padma bridge and another metro rail. We welcome the Japanese companies’ interest to vigorously involve in developing major infrastructure projects in our country that will hopefully transform the country’s face to join the status of developing nations from the least developed one so far.

Japan is a trusted development partner of Bangladesh offering highest foreign aid to the country’s socio-economic development. The interest of the Japanese companies showed us once again the continued interest of the country’s investors to put their money in Bangladesh to the mutual benefit of both the nations.

As per information by Bangladesh’s Public-Private Partnership Authority (PPPA) the Japanese companies will invest under the government-to-government arrangement without bidding. At the first Japan-Bangladesh Joint PPP meeting in last December in Tokyo, Dhaka has sought multi-billion dollar investment in 18 infrastructure projects. They include a second Padma Bridge at Paturia-Goalanda, inland container depot near Dhirasram Railway Station in Gazipur, multimodal hubs at Kamalapur Railway Station and Dhaka Biman Bandar Railway Station, circular railway line around Dhaka city, Outer Ring Road connecting six transportation hubs, Dhaka Mass Rapid Transit Development Project (MRT Line-2), and improvement of Chittagong-Cox’s Bazar Highway.

It appears Japanese investment will bring a big boost to the country’s development. But what is important is that Bangladesh should increase the capacity and efficiency of the bureaucracy and the competence of the political leadership to quickly develop the projects documents, give approval to them and provide the material support to project officials to implement them without waste of time and money. Corruption should also be held in check for smooth implementation of the projects.

The other issue involves is giving contracts to Japanese companies for implementation of those projects without soliciting tenders from competitive bidders. Our experience suggests it keep the project cost exorbitantly high and Bangladesh will have to bear the load at the end. In our view Japanese government should allow a limited bidding among Japanese firms to keep the project cost relatively low. Bangladesh wants the fruits of development and high project cost should not make them liability at the end.