The Government of Bangladesh engaged WSP to provide transaction advisory services for the construction of a major highway via an alternative delivery model (public-private partnership/P3). With a capital cost of approximately USD 500M, the project involved upgrading the existing Joydevpur-Debogram Bhulta-Madanpur Road (N105) from two-lanes to four-lanes. It is contemplated to include a controlled access toll road, and a two-lane service road, along 50 km of highway to the east of Dhaka. The Dhaka By-Pass Road would provide for a major arterial connection between the industrial zone north and northeast of Dhaka, with the port connection to Chittagong in the south, while providing a link with national highways N1, N2, N3, and N4.
WSP provided advisory services in determining the project’s feasibility and development, and following the project’s approval, will continue to develop and implement the P3 procurement process. The first phase, completed in August 2014, involved examining the highway’s technical, social, environmental, economic, financial, and commercial viability. The second phase involves leading the procurement process from inception to implementation; this includes developing procurement documents (RFQ and RFP) and market engagement, arranging the project’s management and governance structures, obtaining procurement support, commercial and financial support, and early operations support, and building client capacity and knowledge transfer.
Successfully Overcoming Challenges
Developing a commercial structure that would lead to a bankable project in a developing country
Working with the Government of Bangladesh and understanding local challenges
Working with international development agencies and banks to secure funding