Regional connectivity projects face unprecedented delays after political changeover

Infograph: TBS

The implementation of projects aimed at enhancing regional connectivity, particularly those focused on easing connectivity with India, is progressing slower than ever, according to planning ministry sources.

Officials of the Implementation Monitoring and Evaluation Division (IMED), which operates under the ministry, say the current Annual Development Program (ADP) includes several projects aimed at facilitating trade and communication with neighbouring countries, including India.

The projects include the Bangladesh Regional Connectivity Project-1, aimed at increasing trade with India, Bhutan and Nepal; the South Asia Sub-regional Economic Cooperation (SASEC) Project, designed to boost trade with neighbouring countries; and the Accelerating Transport and Trade Connectivity in Eastern South Asia project.

An IMED official on condition of anonymity told TBS, "The current government is not giving special priority to projects involving India. Instead, more focus is being placed on scrutinising why such projects were initiated in the first place, which has led to slower implementation of these projects."

Officials say the projects are being implemented with funding from the World Bank and the Asian Development Bank (ADB). The main work of these projects is being carried out by the Land Port Authority of the Ministry of Shipping in coordination with other ministries.

According to the minutes of a review meeting on the Ministry of Shipping's development project implementation progress, the implementation of these projects has been slow this fiscal year, and it will not be possible to complete them within the scheduled timeframe.

Mohammad Manzarul Mannan, chairman of the Bangladesh Land Port Authority, told TBS on 17 March that there has been considerable delay in starting these projects. Due to land acquisition and other procedural issues, progress has been slow.

He mentioned that the Bangladesh Regional Connectivity Project is nearing completion, with only some work remaining at the Ramgarh port.

"For infrastructure work within 150 yards of the border, approval from both countries is required, and land acquisition processes are also involved. These factors are causing delays in completing the Ramgarh project," he said.

After the Awami League government's fall on 5 August last year in a mass uprising, former Prime Minister Sheikh Hasina departed for India, where she has been since. Since the interim government took office, relations with India have been on a nosedive.

The government has decided not to implement at least 11 projects in Bangladesh that were to be funded by Indian loans.

Most recently, the Joint Rivers Commission meeting held in Kolkata from 3 to 8 March ended without any decisions being reached. Bangladesh had requested approval for dredging and repairs at 70 points on various rivers in the country, but India did not make any decisions.

However, despite the strained diplomatic relations, imports and exports between the countries continue at both government and private levels.

Bangladesh Regional Connectivity Project-1 

This project was initiated to remove supply-side barriers and modernise border management to increase trade with India, Bhutan and Nepal. It also focuses on reducing time and costs related to trade, as well as improving trade infrastructure in regional transport corridors.

Additionally, the project includes plans to enhance opportunities for women in trade, with the goal of increasing their participation in regional and global supply chains.

The project is being jointly implemented by the Ministry of Commerce's WTO Cell, the Land Port Authority under the Ministry of Shipping and the National Board of Revenue under the Ministry of Finance.

According to the minutes of the review meeting, launched in July 2017, the project is scheduled to be completed by June 2025. However, the Land Port Authority is now seeking an extension of the project's timeline.

Funded by the Bangladesh government and the World Bank, the project entails a total cost of Tk966 crore. For the current fiscal year, Tk324 crore has been allocated in the ADP. As of last December, Tk95 crore had been spent, and 74% of the project work has been completed to date.

South Asia Sub-regional Economic Cooperation (SASEC) Project 

This project is being implemented by the Bangladesh Land Port Authority. The project, with a timeline from July 2022 to June 2026, has a total cost of Tk249 crore. Of this, Tk211 crore is funded by a loan from the Asian Development Bank, and the remaining Tk38 crore is financed by the government.

For the current 2024-25 fiscal year, the budget allocation for the project is Tk60 crore. However, in the first six months of the fiscal year (from June to December), only Tk31 lakh has been spent.

Under this project, the Tamabil Land Port in Sylhet and the Akhaura Land Port in Brahmanbaria will be developed.

Although the SASEC project was initiated in 2022, work has yet to begin.

Manzarul Mannan said there have been delays in starting the SASEC project. "However, the good news is that the advisory committee on government procurement has approved the purchase related to the SASEC project."

"The work order is expected to be issued to the contractor by the end of this month, and physical work is expected to begin next month," the chairman informed.

Accelerating Transport and Trade Connectivity in Eastern South Asia Project (Bangladesh Phase 1) 

This project is scheduled to run from April 2023 to June 2027, with a total budget of Tk3,457 crore.

The project aims to develop infrastructure at Benapole, Bhomra and Burimari land ports to facilitate cargo handling, storage, transshipment, parking and passenger movement. Additionally, it will introduce modern security systems, automation in port operations and initiatives to reduce environmental pollution and greenhouse gas emissions.

According to the meeting minutes, as of now, only 0.10% of the project has been implemented.

In the 2024-25 fiscal year, Tk600 crore has been allocated for the project, and during the first half of the fiscal year (July-December), Tk60.85 lakh was spent.

Regarding the project, Mohammad Manzarul Mannan said progress was slow initially but is now moving forward more smoothly. However, some additional time may still be needed to complete this project.