13 projects worth Tk52,648cr under review to weed out unimportant ones

The interim government has planned to review 13 major projects taken up by the previous Sheikh Hasina administration, worth a total value of Tk52,648 crore.

According to Planning Commission officials, the review includes four ongoing projects for which revised proposals have been submitted, and nine newly proposed initiatives.

The goal of the reevaluation is to exclude projects that may not be beneficial or are not urgently needed. Non-essential components of some projects may be removed. The interim government will be making the final decisions.

The new projects are set to require a budget of Tk21,441 crore, while the cost of the ongoing projects, originally approved at Tk20,375 crore, was proposed by the previous government for a significant rise to Tk31,207 crore.

Suleman Khan, member (secretary) of the Physical Infrastructure Division under the Planning Commission, said, "During the previous government's tenure, these projects were prepared and sent to Ecnec for a presentation at its meeting. Now, they will be reevaluated, and decisions will be made after assessing their justification and costs."

Infographic: TBS

Officials added that the review will extend to nearly all projects initiated during the Awami League government except those nearing completion. A list of these projects will be sent to the interim government for further review. Projects deemed politically motivated or unnecessary will also be reassessed.

Currently, there are 1,326 ongoing projects under the Annual Development Programme with about 1,200 still awaiting approval.

A planning official said they had concerns about the justification, costs, and various aspects of many projects. "However, we were pressured by the political leadership to approve them despite our reservations. This is why a reevaluation of these ongoing projects is necessary."

Planning Adviser Wahiduddin Mahmud, during a meeting with Planning Commission officials on 19 August, said projects initiated for political purposes or group interests will be scrutinised and trimmed down.

"It's crucial to thoroughly examine both ongoing and proposed projects due to the significant mismanagement in the planning process," he added.

The adviser further said economic rationale should guide project decisions. "Just because some money has already been spent on an ongoing project doesn't mean the project must be completed; this rationale does not make sense in economics."

The key consideration is how much more needs to be spent and whether the entire project will yield benefits, he explained, referring to the sunk-cost fallacy.

The projects

One project under reevaluation is the land acquisition for upgrading the Faridpur-Bhanga-Barishal-Patuakhali-Kuakata National Highway to a four-lane road. Initially approved by Ecnec in 2017 with a budget of Tk1,867.86 crore, the revised cost has now surged to Tk5,800 crore.

According to Planning Commission officials, the government will review whether the highway upgrade is still feasible under current economic conditions and check for any irregularities in the increased land acquisition costs.

An official from the Roads and Highways Department said that when the project began in 2016, it was expected to have 120 feet of space on each side of the road. However, only 60 feet were available. Additionally, compensation rules have changed from 1.5 times the value to three times the value, further driving up costs.

A new project, the rail-cum-road bridge over the Karnaphuli River at Kalurghat in Chattogram, estimated at Tk11,560 crore, will also be reassessed. Korea is expected to provide an $815 million loan for this project.

The Matarbari Port Development Project initially had a cost estimate of Tk17,777 crore, but the revised proposal suggests increasing it to Tk24,381 crore. The Planning Commission previously considered this cost increase excessive.

The Planning Commission said significant cost hikes midway through a project, even with a feasibility study, are unreasonable. The feasibility study for this project was done by the Japan International Cooperation Agency (Jica). The revised proposal blames the increase on a rising dollar value and higher prices for certain items.

Prof Shamsul Hoque from the Bangladesh University of Engineering and Technology (Buet) said foreign-funded infrastructure projects in Bangladesh often cost more than similar projects in other countries. He cited the example of Indonesia's metro rail, which was funded by Japan but cost less than Bangladesh's metro rail project.

He said, "Many neighbouring countries have built similar infrastructure at lower costs. Contractors exploit weaknesses in our administrative processes, leading to higher expenses. With the same amount of foreign debt, other countries can build more projects."

The revised budget for the RAB Forces Headquarters project will be reviewed. It was initially set at Tk495 crore but is now proposed to increase to Tk691 crore. The budget for the Chilmari River Port construction project is also being revised, with an increase of Tk100 crore to a total of Tk335 crore.

Other new projects under reevaluation include the construction of multipurpose cyclone shelters for Tk993 crore, the Resilient Urban and Territorial Development Project for Tk5,911 crore, and road developments by Rangpur City Corporation for Tk1,654 crore. 

Additional projects include the Gachbaria-Sholkata-Kalabibir Dighi road for Tk466 crore, the Mongla-Bouddhamari Bazar Highway for Tk421 crore, and a project to enhance nutritional security through pulses and oilseeds for Tk266 crore. 

Plans also include residential buildings for Department of Land Records and Surveys employees for Tk95 crore and the expansion of fish farming technology services at the union level for Tk75 crore.