The Legal Framework of Public-Private Partnership (PPP) in Bangladesh: Opportunity and Regulatory Constraints

Abstract

Public-Private Partnerships (PPPs) have become an important mechanism for infrastructure development and economic growth in Bangladesh. Through collaboration between the government and private investors, PPPs have contributed to the development of roads, airports, power generation, and other public services. This study examines the legal and regulatory framework governing PPPs in Bangladesh, with particular emphasis on the PPP Act 2015, the PPP Policy and Strategy 2010, and the institutions responsible for implementing PPP projects. The research explores both the opportunities and challenges associated with PPP projects. It finds that PPPs have encouraged private investment, reduced pressure on public finances, promoted technological innovation, and supported infrastructure expansion. As a result, PPPs have emerged as an effective tool for achieving national development objectives. Despite these benefits, several regulatory and institutional challenges continue to affect the successful implementation of PPP projects. These include legal ambiguities, lengthy approval procedures, land acquisition difficulties, weak contract enforcement, and disputes among stakeholders. Such challenges may reduce investor confidence and hinder project efficiency. This study is based on an analysis of relevant laws, policies, government reports, and academic literature. It argues that while Bangladesh has established a basic legal foundation for PPPs, further reforms are necessary to enhance transparency, strengthen institutional coordination, reduce bureaucratic barriers, and improve accountability. The effectiveness of PPPs depends not only on the existence of laws and policies but also on their practical implementation. The study concludes that PPPs will continue to play a significant role in Bangladesh's development. Their long-term success will depend on strengthening governance, ensuring regulatory certainty, and building trust between public authorities and private investors. Effective implementation of the legal framework is essential to achieving sustainable development and serving the public interest.