Costs of Hasina govt's 8 mega projects overran by $7b. Task force finds 8 reasons

A task force formed by the interim government has identified eight reasons, including corruption, 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 Professor Muhammad Yunus on Thursday, listed eight of the Awami League government's mega projects, including the Padma Bridge and the Dhaka-Mawa Expressway, as examples of cost and time overruns.

The other six mega projects that required more time and money than initially estimated are the Padma Bridge Rail Link, the Jamuna Railway Bridge, the Karnaphuli Tunnel, MRT Line-6, BRT-3, and the Third Terminal of Hazrat Shahjalal International Airport.

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 mismanagement.

The mega project with the shortest implementation period was the Dhaka-Mawa Expressway, which had a five-year timeline, while the Padma Bridge took 13 years to complete, the longest timeframe, the report said.

While explaining the reasons behind such huge cost and time overruns, the report by the task force listed eight causes, including poor and faulty feasibility studies and indiscipline in undertaking feasibility studies. 

The other six reasons behind cost and time overruns are land acquisition, conflicts with other projects, a sequential approach, frequent changes in project directors, institutional weaknesses, and project financing issues, the report reads.

The report also mentioned that the deteriorating transport system and costly, disjointed infrastructure development are crippling the country's economy.

As the ministries of road transport and bridges, local government, rural development and co-operatives, railway, shipping, and 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, including a lack of expertise and strategic planning, as well as 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.