One year of interim govt: From roads to railways, projects stuck in slow lane

Highlights

• Many projects stalled as contractor, director exits after regime change
• India funded projects facing financial issues, alternatives under consideration
• Govt cautious approving new projects, ongoing projects not reviewed
• Only a few politically motivated projects by previous regime cancelled

Sreemangal, Bangladesh's tea capital, is just 176 kilometres from Dhaka by road. On paper, a car travelling at 40 km/h should reach it in under five hours. 

In reality, the journey takes eight to nine.

The road is in such deplorable condition that it not only drains commuters of time and energy but also damages vehicles.

The government began upgrading the 209.328km highway from Dhaka (Kanchpur) to Sylhet into four lanes in 2021, with a target completion of December 2026. 

Nearly five years later, only about 15% of the work is done, and almost no progress has been made over the last year.

The economic cost is substantial. 

Dozens of factories – textile mills, agro-processing units, chemical plants, ceramics makers - set up over the last decade and a half, largely because of gas availability, are now in trouble.

And the tea gardens? They have been suffering for decades, and this road has only made life harder. "It seems no one is monitoring the road conditions," the CEO of a Srimangal tea garden told The Business Standard.

The problem is not limited to Sylhet. Across the country, many projects are crawling – or stalled. The change of government last year saw many project directors and contractors quietly exit, leaving sites abandoned.

Analysts warn that simply tightening the approval process for new projects will not fix this. Without fundamental reforms in implementation, the bottlenecks will persist. 

Yes, the ERD last month issued a circular directing that, for foreign-funded projects, land acquisition, project director appointments and tender preparations must be completed before signing agreements. 

But whether this will make any difference – only time will tell.

M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, said the government has been conservative in approving new projects, carefully vetting proposals, reviewing costs, ensuring funding, and considering the projects' strategic importance before granting approval. 

However, unusual expenditures in ongoing projects are not being reviewed, he said. 

"Although there have been long-standing discussions about cancelling unnecessary projects, the government has so far scrapped only a few. To curb delays, corruption, and waste in development projects, the review and oversight of ongoing projects must be significantly strengthened," he told The Business Standard.

Old patterns continue in projects

Although the interim government raised hopes for changes in the approval and execution of development projects, major infrastructure projects remain trapped in the old cycle of cost and deadline overruns. 

Officials said if a project is not completed on time, costs increase by around 15%.

Planning Commission officials said the government is being cautious when approving new projects, thoroughly vetting and verifying them before giving the green light. 

However, there has been little effort to review unusual expenditures or progress in ongoing projects, he added. 

They cited the Gazipur–Airport BRT project as an example: on 27 July, an Ecnec meeting returned the proposal due to proposed cost and timeline increases, and a committee was formed to trace the project's original funding sources and designers.

Dhaka–Sylhet, Ashuganj–Akhaura

The four-lane Dhaka–Sylhet project has made just 4.55% progress in four years, with no work completed over 192.32km. Land acquisition complications have also hindered road maintenance, making travel difficult during rains and increasing traffic congestion and accident risks.

Similarly, the Ashuganj–Akhaura four-lane project, funded by an Indian loan, has stalled – despite 58% reported progress, contractors are absent from the site. 

Moreover, because this section is under the project, the Roads and Highways Department has been unable to carry out regular maintenance, resulting in numerous small and large potholes. 

The situation is particularly severe at Ashuganj Golchattar and Saraill–Bishwaroad junction, where potholes constantly cause traffic congestion. 

Vehicles take 7–8 hours to cover the 12km stretch from Ashuganj Golchattar to Bishwaro Road, with pothole-ridden roads worsening conditions during rainfall.

Shamim Ahmed, project director of the Ashuganj–Akhaura four-lane highway, said the government cannot use revenue funds for repairs within the project area. 

According to regulations, the contractor is responsible for maintenance, he said. However, urgent repair work is being carried out to keep traffic moving. 

The contractor has already applied to extend the project deadline to June 2027, he added. "Pressure is being applied to accelerate the work and ensure completion."

Abu Sayeed Md Nazmul Huda, Additional Chief Engineer (Sylhet Zone), said the project, funded under an Indian Line of Credit, is currently facing financial difficulties. 

"Moreover, the Indian contractor is absent from the site. The government is now considering completing the project through alternative financing," he told TBS.

Payra port, other mega projects

The current government is reassessing the fast-track projects initiated by the previous administration, including the Payra deep-sea port. Planning adviser has said extensive dredging will be required annually due to silt accumulation. Currently, three Payra port-centric projects worth Tk15,430 crore are ongoing.

Meanwhile, the proposed cost of the MRT-5 (South Route) metro rail project has been reduced by Tk6,898 crore to Tk47,721.44 crore. However, other major projects, including the Rooppur Nuclear Power Plant and the Padma rail link, have not undergone any cost review.

No progress cancelling unnecessary projects

Although the interim government announced it would scrap projects selected for political reasons, in practice only a handful have been cancelled. 

The Agriculture and Water Resources Ministry recommended cancelling ten insignificant projects worth Tk5,000 crore, but objections from most ministries prevented this. 

A similar pattern is seen in the infrastructure, social sector, industry, and energy divisions.

New mega projects approved

Over the past year, the government has approved several major projects, including the Bay Terminal Project (Tk13,525 crore, with a World Bank loan of Tk9,333 crore), the Kalurghat Rail-Cum-Road Bridge (Tk11,560.77 crore), the revised Matarbari Deep-Sea Port Project (cost increased to Tk24,381 crore), and the Mongla Port Facility Expansion (Tk4,068 crore, with a Chinese loan of Tk3,592 crore).