Beyond open tendering
How PPP and G2G deals can secure Bangladesh's maritime horizon
S M Moniruzzaman
Published :
Jan 13, 2026 00:17
Updated :
Jan 13, 2026 00:17
A view of Chittagong Port —Agency Photo
As Chairman of the Chittagong Port Authority, I welcome the decisive shift of the Nobel Laureate Dr Muhammad Yunus-led government towards port-centred maritime development as a foundation of Bangladesh's economic transformation. More than 92 per cent of our international trade passes through Chittagong, necessitating quick movement to clients and markets, which makes immediate modernisation non-negotiable. The issue before us is not whether expansion is required, but rather the method through which it should be achieved. While institutional debt financing can underwrite port infrastructure expansion, it imposes material constraints-credit exposure, collateral pledges, and long-term repayment obligations. By contrast, structuring port concession models to attract foreign direct investment (FDI) delivers a more strategic capital solution: it accelerates modernisation, enhances operational competitiveness, and mitigates sovereign debt accumulation, thereby safeguarding fiscal resilience while unlocking sustainable growth. I can clearly state that concessions awarded to reputed foreign operators through Public-Private Partnerships (PPP) and Government-to-Government (G2G) arrangements are far more effective than the traditional open-tendering route. This position is not shaped by preference. It is rooted in evidence, practical experience, and the principles of the PPP Framework together with the associated rules and regulations for foreign operator engagement.
Open tendering, in theory, aims to deliver transparency and competitive pricing. In practice, it often fails to uphold international standards, best practice benchmarks, and essential compliance requirements. The PPP Law outlines strict procedures for due diligence, negotiation, and risk sharing because open tendering has repeatedly shown its limitations in ensuring these protections. The law requires feasibility studies that cover financial, legal, commercial, and environmental aspects and states that a project may proceed only if the Net Present Value (NPV) is above 1. This is not administrative clutter. It represents disciplined financial safeguards that defend the national interest. Open tendering, by contrast, often encourages decision-making based on the lowest bid or highest bid, which can undermine long-term sustainability. It often prioritises the lowest or highest bidder, risking substandard maritime infrastructure and operational delays. This model lacks the strategic long-term investment, specialised technology transfer, and direct foreign capital commitment. For any greenfield port project, attracting credible international operators depends on embedding global standards from the earliest phase. Ensuring this standard of quality is conditional upon PPP and G2G concessions with dependable partners. Such arrangements mitigate the inherent risks of lowest-bidder procurement models, while facilitating sustained foreign capital inflows, access to specialised maritime expertise, and the integration of international best practices that collectively enhance operational efficiency beyond what open tendering can deliver.
The Special Purpose Company (SPC) model, which forms a core component of the PPP system, strengthens each concession through comprehensive due diligence.
International rates of return assessments prevent speculative or short-sighted investment. Legal vetting ensures full compliance with domestic legislation and relevant international conventions. Commercial studies link capacity planning to real trade patterns, while environmental evaluations help prevent ecological degradation, including reduction of carbon emissions. This combination demonstrates the level of sophistication that PPPs offer. They balance national priorities with the assurances demanded by international investors. Negotiations within the PPP framework are structured rather than improvised and are designed to reach revenue-sharing arrangements that benefit both sides. Bangladesh gains reliable long-term income streams, and operators secure conditions that support stable profitability.
The landlord port model under which Chittagong Port operates strengthens this approach further. As a landlord port, we retain ownership of land and core infrastructure, while foreign operators invest in and manage operations under Build-Operate-Transfer (BOT) concessions. For Bangladesh, the financial benefit is clear. There are no liabilities, no debt burdens, and guaranteed returns based on mutually agreed terms. When the concession period ends, the assets return to us, enhanced by years of operation that follow international standards.
The advantages of involving reputed operators are visible and immediate. Capacity expansion is essential as Bangladesh's export and import trade continues to grow at double-digit rates. Effective port management reduces cargo dwell time and lowers logistics costs, which directly assists our garment exporters who operate with very narrow profit margins. Vietnam's deep-water hubs and foreign terminal operators slashed turnaround times, accelerating speed to market by 11 days. As a peer competitor, Vietnam now dominates high-spec electronics; Bangladesh must upgrade its port infrastructure and transition from basic apparel to high-value manufacturing. Such a transition will allow Chittagong Port to remain globally aligned with best practices and gain a competitive edge.
Each port concession attracts vital Foreign Direct Investment (FDI), strengthening national reserves and signalling robust economic confidence. This capital injection ensures terminal operations meet global standards, while parallel infrastructure development (logistics parks) and collaboration (industry-academia training) upskill local human resources, securing long-term economic growth. This is how Bangladesh positions itself for competitiveness in a region where Colombo, Singapore and Port Klang are advancing quickly. Revenue generated through PPP concessions is stable and predictable, and the establishment of such partnerships sends a wider message of confidence to foreign investors across sectors. It demonstrates that Bangladesh has evolved into a dependable investment environment. International connectivity grows as feeder services and shipping opportunities increase, drawing us more deeply into global trade pathways.
The figures embedded in our PPP Law and foreign operator frameworks reinforce this point. The requirement for an NPV greater than 1 acts as a safeguard against waste. The law's detailed provisions on negotiation, equity contributions and risk sharing show a level of maturity that tendering can neither match nor ensure. The foreign operator documents outline structured assemblies, executive sessions and long-term planning, which reflects Bangladesh's commitment to forward-looking strategy. These are not abstract ideas. They form the foundation of a maritime future that aligns with international best practices, transparency and sustainability. Open tendering, on the other hand, struggles to enforce compliance and leaves gaps that weaken competitiveness. In a sector as strategic as maritime trade, such gaps cannot be accepted.
Bangladesh's maritime future rests on the choice that we make now. By adopting PPP and G2G concessions, we can ensure that our ports are developed to global standards, operated with international levels of efficiency, and fully connected to global supply chains. We would attract foreign investment, strengthen the skills of our workforce, lower costs, and generate revenue without taking on liabilities. We will be able to communicate to the world that Bangladesh is prepared, competitive and secure. As Chairman of the Chittagong Port Authority, I declare with conviction that strategic concessions are not merely transactions, they are powerful instruments of progress. They deliver greater value, foster long-term partnerships, and embody the very essence of international best practices. Open tendering may serve a purpose, but it is strategic concessions that truly unlock our potential and position us on the global stage.
Rear Admiral S. M. Moniruzzaman, OSP, NDC, NCC, PSC is the
Chairman of Chittagong Port Authority
Bangladesh Defense
