Why mega projects cost $7b more than initial budget during Hasina govt? Task force finds 8 reasons
The initial budget for eight mega projects was $11.12 billion, which shot up to $18.64 billion due to graft and other irregularities
A task force formed by the interim government has found eight reasons for cost and time overruns in implementing mega projects in Bangladesh.
The task force's report, which Planning Adviser Wahiduddin Mahmud handed over to Chief Adviser Prof Muhammad Yunus on Thursday (30 January), listed eight of the Awami League government's mega projects, including Padma Bridge and Dhaka-Mawa Expressway, as examples of cost and time overruns in implementing such projects in Bangladesh.
The other six mega projects which required more time and money than their initial estimation are Padma Bridge Rail Link, Jamuna Railway Bridge, Karnaphuli Tunnel, MRT Line-6, BRT-3 and Third Terminal of Hazrat Shahjalal International Airport (HSIA).
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According to the report, the initial budget for the eight mega projects listed by the task force was $11.12 billion but it shot up to $18.64 billion due to corruption and other irregularities.
The mega project with the shortest implementation period was Dhaka-Mawa Expressway with a five-year timeline, while Padma Bridge took 13 years to be completed, which was the longest timeframe, the report said.
While explaining the reasons behind such huge cost and time behind the implementation of these projects, the report by the task force listed eight causes, which include poor and faulty feasibility studies and indiscipline in undertaking feasibility studies.
The other six reasons behind cost and time overrun are land acquisition, conflicts with other projects, sequential approach, frequent change of project directors, institutional weaknesses and project financing issues, the report reads.
The report also mentioned the deteriorating transport system and the costly, disjointed infrastructure development as crippling the country's economy.
As the ministries of road transport and bridges; local government, rural development and co-operatives; railway; shipping; civil aviation and tourism are all involved in developing transport infrastructure, this division results in uncoordinated development, leading to conflicts, inefficiencies, higher costs and longer travel times, the report said.
The task force further mentioned shortcomings of the Planning Commission, which are a lack of expertise and strategic planning, and the absence of a national project dashboard.
The task force -- citing China, Vietnam and Japan as examples -- said the Planning Commission should have the authority to appraise, approve, coordinate and oversee all public projects.
