Higher financing requirements Sample Clauses

Higher financing requirements. Indicative infrastructure requirements10 estimated in the 7th FYP foresee an increased demand for transport investment from 1.6% of GDP in the baseline year of FY2015 to a yearly average of 3% during the following years of the plan. The list of infrastructure areas that need attention is vast and includes roads, highways and bridges, railways, urban and rural transport quality and safety, ports, civil aviation airports, inland water transportation, and port infrastructure. Achieving visible progress in all these areas is challenging and will have to come from private sector investment including through public– private partnerships (PPP) arrangements. Similarly, demand for energy is critical. Although the 6th FYP achieved substantial progress in energy generation along with expansion of transmission and distribution networks, the gap remains large and the investment needs are challenging. Total investment requirements in the energy sector add up to 2.5% of GDP per year, of which it is estimated that the public sector will only cover 1.7% per year on average. The remainder will have to come from the private sector which will mainly be pursued through PPPs. The 7th FYP aims to substantially increase the amount of PPP investments from an average of about 0.2% of GDP in FY2015 to between 1% and 2% of GDP per year during the 7th FYP.11 Table 1: Financing Requirements 2011–2020 (% of GDP per year) Bangladesh Item Low High Transport 3.60 4.50 Electricity 1.10 1.65 WSS 1.20 1.80 Solid waste 0.21 0.42 Telecom 0.50 0.50 Irrigation 0.77 1.15 Total 7.38 10.02 WSS = Water Supply and Sanitation. Source: Government of Bangladesh, Planning Commission, General Economics Division, Seventh Five-Year Plan 2015.