
Greening Infrastructure Development: The Role of Public-Private Partnerships in Bangladesh
M Murshed Haider, CP3P
Partner, Infrastructure Strategy Partners
Introduction
Bangladesh, one of South Asia’s fastest-growing economies, has experienced remarkable economic progress in recent years. According to the World Bank, the country maintained a GDP growth rate of approximately 6–7% in 2023. However, rapid industrialization and urbanization have intensified environmental challenges, including deteriorating air and water quality, deforestation, inefficient waste management, and the escalating impacts of climate change—such as frequent flooding, cyclones, and rising sea levels. As a nation with a population exceeding 165 million and one of the most vulnerable to climate change, integrating sustainable practices into its infrastructure development agenda is imperative.
Public-Private Partnerships (PPPs) offer a promising avenue to address these challenges by mobilizing private investment, leveraging technical expertise, and fostering innovation in infrastructure projects. By aligning economic growth with environmental sustainability, PPPs can play a pivotal role in creating climate-resilient urban centers and promoting green energy solutions. However, embedding environmental considerations into PPP frameworks remains a complex task, necessitating coordinated policy reforms, robust regulatory oversight, and enhanced inter-agency collaboration.
This article examines Bangladesh’s pressing environmental challenges, explores the potential of PPPs to drive green infrastructure development, and outlines strategic policy recommendations designed to overcome current obstacles. Through a detailed analysis of recent trends and initiatives, the article aims to provide a roadmap for achieving sustainable and resilient infrastructure in Bangladesh.
Environmental Challenges in Bangladesh
Bangladesh struggles with severe environmental degradation. Air pollution in Dhaka frequently exceeds WHO safe limits due to industrial emissions, brick kilns, and vehicular traffic. Rivers like the Buriganga, Turag, and Shitalakshya are heavily polluted by untreated industrial and household waste, harming ecosystems and public health. The country is highly vulnerable to climate change, with rising sea levels, frequent flooding, and intensified cyclones threatening infrastructure and livelihoods. Deforestation, driven by encroachment and illegal logging, has reduced forest cover, impacting biodiversity. A growing waste management crisis, particularly plastic waste, poses significant environmental and health hazards due to low recycling rates and reliance on open landfills.
The Role of PPPs in Environmental Protection
PPPs can be instrumental in driving sustainable infrastructure, promoting green energy, and building climate-resilient urban development. By leveraging private sector expertise, financing, and technology, PPPs can contribute to environmentally sound solutions across various sectors:
- Renewable Energy Projects: Bangladesh has set ambitious renewable energy targets, aiming to generate a significant percentage of its electricity from clean sources by 2041. Public-Private Partnerships (PPPs) can play a crucial role in attracting private investment in solar, wind, and other renewable energy projects, reducing reliance on fossil fuels. Several large-scale solar parks are already operational, demonstrating the success of PPP-driven renewable initiatives. Notable examples include the 200 MW Beximco Solar Park in Gaibandha, 100 MW Dynamic Sun Energy Solar Park in Pabna, and 75 MW Sonagazi Solar Park in Feni, which have significantly contributed to the national grid. The Teknaf Solar Park remains a benchmark for large-scale solar implementation.
- Waste-to-Energy Projects: Converting waste into energy through Public-Private Partnerships (PPPs) presents a dual solution—addressing both waste management challenges and the growing energy demand. In Bangladesh, entities like the Hi-Tech Park Authority can take the lead in PPP-driven e-waste management initiatives, ensuring sustainable disposal of electronic waste while generating clean energy. Similarly, City Corporations can leverage PPP models to develop municipal waste-to-energy projects, reducing landfill dependency and promoting environmental sustainability.
- Sustainable Transport and Green Urban Development: PPPs can facilitate the development of electric bus systems, metro lines, and other low-carbon transport solutions. The Dhaka Metro Rail exemplifies this. Amsterdam’s electric bus fleets, developed through PPPs, provide another example. In Bangladesh, the Dhaka Elevated Expressway and the upgraded Dhaka Bypass, while primarily aimed at easing congestion, can contribute to reduced emissions.
- Climate-Resilient Infrastructure: PPPs can be used to develop flood-resistant roads, eco-friendly housing, and green industrial zones. BEZA is utilizing PPPs to develop climate-resilient economic zones. The Netherlands’ Room for the River project highlights innovative approaches to flood management. The Urban Development of Water Distribution and Supply Facilities at Purbachal New Town highlights the potential for PPPs to improve access to clean water.
- Other Infrastructure and Social Sector PPPs with Environmental Implications: Beyond traditional infrastructure, other PPPs can have environmental dimensions. The Hemodialysis Centre at Chittagong Medical College Hospital and NIKDU can incorporate sustainable practices. The Patenga Container Terminal and the jetties at Mongla Port can incorporate environmental safeguards. The Kaliakair Hi-Tech City can be developed with a focus on sustainable infrastructure.
Challenges in Implementing Green PPPs
Several obstacles hinder the implementation of environmentally sound PPPs. Existing PPP frameworks may lack robust environmental guidelines. Environmental impact assessment (EIA) processes can be lengthy and bureaucratic. Green projects often involve higher initial costs, deterring private investors. Access to climate finance may be limited. Lack of coordination between government agencies and the private sector can create confusion. Limited expertise in structuring green PPPs can also be a challenge. Public resistance due to environmental concerns or lack of transparency can also hinder projects.
Policy Recommendations and Priorities
To overcome the challenges hindering the implementation of environmentally sound PPPs and to ensure future projects contribute to sustainable development, targeted policy reforms and strategic priorities are essential. These recommendations should be integrated into the project lifecycle, particularly during the development phase, including feasibility studies, and should guide the selection and design of pipeline PPP projects.
- Strengthening Environmental Regulations and Integration: Mandatory Environmental Impact Assessments (EIAs) with clear, stringent guidelines and robust monitoring mechanisms should be integral to all PPP projects. These assessments must consider the full project lifecycle and cumulative environmental impacts. Green procurement policies, prioritizing environmentally friendly materials and practices, should be incorporated into PPP frameworks. Pipeline projects should be evaluated against these strengthened environmental standards from the outset.
- Promoting Green Financing and Incentives: A dedicated Green PPP Fund can provide crucial financial support for environmentally sustainable projects, de-risking investments and making them more attractive to the private sector. Incentives, such as tax breaks, subsidies, and risk-sharing mechanisms, can further encourage private sector participation in green PPPs. Feasibility studies for pipeline projects should explore and incorporate green financing options, including green bonds and climate finance mechanisms.
- Enhancing Institutional Capacity and Inter-Agency Coordination: Strengthening the capacity of PPP authorities to assess and enforce environmental compliance is crucial. This includes developing expertise in evaluating EIAs, monitoring environmental performance, and ensuring adherence to green procurement guidelines. Inter-agency coordination is vital to streamline regulatory processes and avoid conflicting requirements. Public-private task forces can facilitate collaboration and knowledge sharing, ensuring that environmental considerations are integrated into all stages of pipeline project development.
- Prioritizing Climate-Resilient and Low-Carbon PPPs: Nature-based solutions, such as mangrove restoration, afforestation, and wetland conservation, should be prioritized in PPP models, recognizing their co-benefits for climate change mitigation and adaptation. Pipeline projects should explore opportunities for incorporating nature-based solutions and prioritize low-carbon technologies and practices. Eco-friendly industrial parks and circular economy projects, promoting resource efficiency and waste reduction, should be actively pursued through PPPs.
- Enhancing Public Engagement and Transparency: Meaningful community consultations are essential to incorporate local perspectives and address potential environmental concerns early in the project planning process. Transparent monitoring and reporting of environmental performance in PPP projects are crucial for building public trust and accountability. Pipeline projects must develop robust communication strategies to ensure transparency and public engagement throughout the project lifecycle. Grievance mechanisms should be established to address community concerns promptly and effectively.
Conclusion
As Bangladesh pursues infrastructure development through PPPs, prioritizing environmental sustainability is critical. PPPs offer a valuable mechanism, but they must be structured to align with climate goals and environmental protection. By strengthening policies, mobilizing green finance, fostering collaboration, and prioritizing community engagement, Bangladesh can unlock the potential of green PPPs for sustainable development. The transition to greener PPPs is a necessity for a resilient Bangladesh.