Health, education prioritised in govt’s 36-project foreign financing plan
Expert says foreign financing should be directed towards projects that deliver high economic, human capital returns
Highlights
- Total investment in 36 projects over Tk1 lakh crore
- Nine projects in higher education, seven in health
- Other projects in power, local govt, railway, water resources
- Single projects in airport, bridges, ICT, agri, labour, youth, transport
- Four Chinese-funded health projects include hospitals in Rangpur, Dhaka
- Also includes Dhaka University Tk2,840cr development project
The government will present 36 projects to development partners for foreign financing, prioritising development in the education and health sectors over traditional physical infrastructure.
Nine of these projects target higher education, while seven focus on health facilities, according to officials of the Economic Relations Division (ERD).
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The projects will be formally presented at the 70th meeting of the Foreign Aid Review Committee today, chaired by ERD secretary Shahriar Kader Siddiky. The session is part of the final stage for submitting formal loan proposals to development partners.
Officials said 24 projects were listed initially for the Aid Review Committee meeting. Later, 12 additional projects were added based on priority, bringing the total to 36.
They said the government plans to seek foreign loans for the 24 original projects, with a total investment of Tk80,751 crore, of which Tk68,639 crore will be loaned. Including the newly added projects, the total investment for all 36 projects are expected to reach over Tk1 lakh crore.
In addition to the 16 projects in health and education, five projects are in local government, two in the power sector, three in railway infrastructure, and three in water resources. Single projects are planned for airports, bridges, inland water transport, ICT, agriculture, labour, and youth and sports.
M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, said foreign financing should be directed towards projects that deliver high economic and human capital returns.
"Investments should generate long-term economic growth while improving people's skills, health, and education," he said. "Education and health projects meet these criteria, and proper assessment and implementation will enhance national human capital, ultimately boosting productivity."
He noted that over the past decade, foreign financing in Bangladesh has been heavily focused on infrastructure, leaving vital sectors like health and education underdeveloped.
"Prioritising service sectors now is a sound decision. Strengthening governance and institutional capacity is crucial, as no project can achieve its objectives without good governance," he added.
ERD officials said all 36 projects have already received policy approval from the Planning Commission as Preliminary Project Proposals. Many have been discussed with development partners, who have expressed interest in several, allowing loan procedures to be initiated swiftly.
However, some projects have yet to undergo partner discussions, with the selection of development partners depending on project type and loan conditions. Once finalised, all PPPs and loan proposals will be formally sent to the relevant partners.
Health projects
In the health sector, four projects are planned under Chinese loans and grants, including hospitals in Dhaka and Rangpur. The Rangpur project, a 1,000-bed hospital worth Tk1,480.22 crore, will be fully grant-funded, featuring advanced diagnostic facilities, specialised units, and dialysis machines nationwide.
China is also considering a 500–700-bed hospital in Hathazari, Chattogram, costing Tk2,627.49 crore, with Tk1,944 crore as a grant. Other priorities include strengthening district hospitals (Tk4,575 crore), upgrading upazila health complexes (Tk12,960 crore), and enhancing the Venom Research Centre (Tk31 crore grant).
Education projects
The government has approved a Tk2,840 crore project for Dhaka University's development, while foreign loan proposals include a Tk616 crore 4IR Research and Innovation Park, upgraded CVASU research facilities, a marine hazards warning system, and advanced pharmaceutical labs.
Other plans cover student housing, health-focused infrastructure, a mental health centre, and foreign student research facilities at BUP.
Infrastructure projects
Major infrastructure projects seeking foreign loans include Cox's Bazar Airport (Phase-II), railway electrification from Narayanganj to Joydebpur, an ICD at Dhirasram, and the Teesta River Comprehensive Management and Restoration Project (TRCMRP) Phase-1.
The Tk20,000 crore Cox's Bazar project has extended the runway to 9,000 feet and widened it to 200 feet, with sea expansion under way. A new terminal, costing Tk362 crore, is set to open on 30 September, doubling annual capacity to 1.8 million passengers.
Teesta project
For the Teesta River Comprehensive Management and Restoration Project (TRCMRP) Phase-1, Bangladesh will seek a $550.62 million loan from China, with total costs of $747.25 million.
China has already expressed interest, officials said.
The project aims to reclaim 170.87 sq km of land over 102 km from the Teesta barrage, using dredged soil for agriculture, industry, urban settlements, and solar plants.
There are also projected port and rail development, for which Korea and multilateral lenders will be approached.
Economist Masrur Reaz warned that rising foreign debt demands caution, urging borrowing only for high-priority projects. He said Bangladesh should gradually shift infrastructure financing towards PPPs and private investment, reducing reliance on foreign loans while expanding private sector involvement.
