The Bangladesh Securities and Exchange Commission has initiated a move to streamline a commission order as part of its decision to provide policy support to the private entities in investing in public private partnership projects.
The capital market regulator took the decision to streamline its orders at a commission meeting presided over by its chairman M Khairul Hossain in September, BSEC officials told New Age last week.
Under the initiative, private entities which will invest in the PPP projects would not require to get BSEC’s approval in increasing their paid-up capital above Tk 10 crore. At present getting approval from the commission is a must for all private companies in raising their capital above the limit.
Besides, the commission also waived another mandatory provision, for the same ventures, that made conversion of a private limited entity into a public limited company mandatory once their paid-up capital exceeds Tk 40 crore.
BSEC officials also expect that the exemptions will make it easier for the present and potential investors to invest in the PPP projects.
As the government has initiated to implement a number of mega projects under PPP, such waiver will help in availing more response from investors, they said.
Earlier in June this year, the commission took the decision to exempt such entities from the provisions following an instruction from the Public Private Partnership Authority at the prime minister’s office to provide stimulus for the PPP projects.
The commission following its earlier decision drafted an order and notification to replace earlier order and notification at a meeting held in September. The order or notification is yet to be published.
Public Private Partnership is a collaborative work of government and private companies. Under the project, private party provides a public service or implements project and assumes substantial financial, technical and operational responsibilities of such project.
At present there are 44 PPP projects at different stage.
For instance, in order to minimize the acute traffic congestion, the government will implement Dhaka Elevated Expressway, approximately 23 km of elevated expressway in the northern part of Dhaka city on a PPP basis.
According to government’s plane, the four lane Elevated Expressway will commence at Shahjalal International Airport and run alongside New Airport Road, with the rail alignment through the Mohakhali, Tejgaon and Moghbazar to Kamalapur Railway station and then the alignment crossing over Jatrabari before connecting to Dhaka Chittagong Highway.
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