The Asian Development Bank’s Office of Public–Private Partnership (OPPP) has been mandated to provide transaction advice on Joydebpur-Mymensingh Road PPP project to be built along one of the country’s busiest economic corridors.
The project, being implemented with an estimated budget of $400 million, is expected to usher the possibility of door to create jobs and skills, as well as cutting road congestion and improving road safety, the lending agency said in a media release.
The scope of the mandate agreed with Bangladesh’s PPP authority covers project feasibility, transaction due diligence and structuring, bidder procurement and negotiation to reach commercial and financial closure, it said.
The Roads and Highways Department under Road Transport and Bridges Ministry is implementing the project.
F Cleo Kawawaki, head of OPPP, said, “This project builds on OPPP’s successful track record in supporting the Government of Bangladesh in the road sector”.
“This expressway will further demonstrate how the private sector’s innovation, efficiency and capital can be leveraged to build climate resilient adaptable infrastructure”, he said.
OPPP is focused on providing advice that assesses options to decarbonise the expressway and plan for future interventions like electric vehicle charging and innovative climate mitigation and adaptations, he said.
In addition to advising on the project, OPPP’s mandate will encompass capacity augmentation to identify a robust pipeline of new opportunities and monitor two other road PPP projects in Bangladesh—Dhaka Bypass Road PPP project and Rampura Amulia Demra project.
These two projects are estimated to mobilise over $600 million of a private sector capital.
The project will convert the existing national highway-3, an 87-kilometre road connecting Joydebpur city at the outskirts of Dhaka to the northern district of Mymensingh, to a four-lane access-controlled expressway with service lanes on each side for local traffic.
ADB’s advice will help ensure the project maximizes gains in connectivity and logistics while helping rebalance regional disparities.
The project is aligned with ADB’s country partnership strategy for Bangladesh, 2021–2025, which prioritises road transport, urban and water, and health for targeted PPP-related support, reports UNB.