Bangladesh risks losing billions as World Bank-funded projects stall
11 WB-funded projects worth $3.298 billion, but $2.72 billion remains unused
Highlights:
- $753m ACCESS project stalled, $710m undisbursed since 2023
- Bureaucracy, land issues, weak coordination causing major delays
- World Bank warns: hundreds of millions risk cancellation
- Eleven WB projects face $2.72b unused, $696m cancelled
- Other stalled projects: sanitation, health, climate, education, infrastructure
- ERD, WB, agencies meeting to enforce contracts and rescue funds
A $753.45 million World Bank-financed project aimed at boosting trade and connectivity is facing significant delays, with more than $710 million still undisbursed over two years after approval.
The project, effective from May 2023, involves three implementing agencies – Bangladesh Land Port Authority (BLPA), National Board of Revenue (NBR), and Roads and Highways Department (RHD).
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But progress remains uneven, hindered by bureaucracy, procurement delays, and poor coordination.
Now, the project, titled Accelerating Transport and Trade Connectivity in Eastern South Asia (ACCESS), risks fund cancellations if upcoming deadlines are missed, Economic Relations Division (ERD) officials warned.
Officials said the World Bank (WB) may withdraw $266 million from RHD's allocation if contracts are not signed by December 2025, while NBR risks losing $119 million if tenders are not issued by then.
The ACCESS project is among 11 slow-moving World Bank-funded projects in Bangladesh.
These 11 projects are worth $3.298 billion, but $2.72 billion remains unused. Due to delays, the World Bank has already cancelled $696 million in loans, later reallocating the funds as budgetary support.
To address the issues, the ERD will host a Tripartite Portfolio Review Meeting today. Officials from the World Bank, ERD, and the three implementing agencies will attend the meeting in Dhaka.
Project documents show, in the ACCESS project, BLPA faced delays due to late staff appointments and retendering issues tied to loan defaulters, though procurement and land acquisition recently accelerated.
NBR suffered setbacks due to a lack of office space and vehicles until May 2025, and slow recruitment of design and project management consultants. Activities only gained momentum after July 2025.
RHD continues to face alignment disputes, slow bid evaluations, and delayed land acquisition, with progress lagging despite reducing land needs from 247 to 170 acres.
ERD officials said the WB has flagged the project – set to close on 30 June 2028 – as a serious concern.
To avoid cancellations, the lender has set clear targets: BLPA must sign at least two contracts worth $55 million by 30 November; NBR must finalise two contracts totalling $16 million by the same date; and RHD must award its $266 million road package by then.
Officials fear that unless swift corrective measures are taken, the prolonged delays could erode the project's intended impact and cost Bangladesh hundreds of millions in lost development funds.
Md Ruhul Amin Miah, project director of ACCESS (BLPA component), said the main reason for delays in project implementation is complications in land acquisition.
Confirming that the WB has warned them that part of the loan could be cancelled, he said all implementing agencies have already prepared a joint action plan.
"If this plan is followed and implemented effectively, the funds are expected to be secured," he added.
$170m at risk for environmental project
According to a recent WB report, the $184.74 million Bangladesh Environmental Sustainability and Transformation (BEST) Project has disbursed only $14.7 million.
The project's purpose is to strengthen environmental governance and sustainability.
Approved in December 2022 and running to 2028, the project – managed by the Department of Environment, Bangladesh Bank, BRTA, and Bangladesh Hi-Tech Park Authority – has been rated "moderately unsatisfactory" due to procurement failures and budget complications.
The ERD has instructed the team to secure revised approval at the next ECNEC meeting in October and resolve contract and budget issues with the Finance and ICT divisions.
$280m Dhaka sanitation project stalled
The Dhaka Sanitation Improvement Project (DSIP), jointly financed by the WB ($175.42 million) and the AIIB ($170 million), is struggling with slow implementation, with more than $280 million still undisbursed.
Approved in March 2020 and implemented by Dhaka Water Supply and Sewerage Authority, delays include finalising designs for the Pagla Sewage Treatment Plant, weak contract management, technical staff shortages, and slow road-cutting permits.
The project aims to modernise Dhaka's sanitation system with advanced sewage treatment and expanded sewerage networks.
$45m at risk in digital govt project
The Enhancing Digital Government and Economy (EDGE) Project, originally committed at $295 million, has undergone three restructurings and a $175 million budget cut, leaving $120 million with $45.4 million still undisbursed.
Implemented by the Bangladesh Computer Council and ICT Division, it has been granted a nine-month extension to June 2026.
Previously flagged as problematic, its current Project Development Objective and Implementation Progress ratings remain "moderately unsatisfactory." The project aims to Improve digital government efficiency, cybersecurity, and digitally enabled employment.
$438m in WeCARE Project
According to the WB, the Western Economic Corridor and Regional Enhancement Program (WeCare) project is similarly stalled.
Nearly $437.5 million remains undisbursed due to administrative bottlenecks at LGED, where the Project Implementation Unit has been unable to get a Revised DPP approved, and land acquisition issues at RHD, leaving some contracts less than 5% complete.
Its aim is to ensure safe, efficient, and resilient road connectivity in western Bangladesh and strengthen road sector management.
$194m undisbursed in urban health project
The $204 million Urban Health, Nutrition and Population (HNP) project has disbursed just $10 million and faces delays in budget approvals under the health ministry.
Remaining funds total $194.3 million, with the closing date set for December 2028. The initiative targets improving urban health, nutrition, and population outcomes.
$417m at risk for RIVER project
The $450 million Resilient Infrastructure for Adaptation and Vulnerability Reduction (RIVER) project has disbursed only 7.2% of its budget.
Procurement approvals average seven months, and leadership gaps after the August removal of the Project Director have compounded delays.
Over $417 million remains undisbursed, putting the 2028 targets at risk. The project aims to build climate-resilient infrastructure for vulnerable communities.
$74m stalled in climate smart
The Climate-smart Agriculture and Water Management Project (CSAWMP), cut from $120 million to $95 million after restructuring, has stalled due to slow consultant mobilization and two- to three-year land acquisition delays. Authorities face a choice between cancelling $37 million of unawarded lots or extending the closing date to June 2027.
Around $74 million undisturbed amount is at risk of the project aimed at designing and rehabilitating flood control and drainage infrastructure.
$72m stuck in waterway transport project
The Bangladesh Regional Waterway Transport Project ($214 million) seeks an 18-month extension to complete key terminals, with $71.8 million undisbursed.
Procurement delays, land acquisition bottlenecks, and weak contractor performance have slowed progress, despite improvements in disbursement from 12% in mid-2023 to 64% by July 2025.
This initiative is taken to modernise inland waterways for passenger and cargo transport.
$174 vulnerable in road safety project
The $350 million Bangladesh Road Safety Project has been cut to $208 million, with $173.9 million undisbursed. Implementation is sluggish, despite new leadership and contracts for ambulances and patrol vehicles, while major road safety works face a December 2025 deadline.
The project focuses on implementing comprehensive safety measures, including better engineering, signing, speed enforcement, and pedestrian facilities, particularly on national highways
$143m in higher education project
Approved in 2023 with $191 million, the Higher Education Acceleration and Transformation (HEAT) project has already lost $22.6 million in cancelled funds, leaving $142.85 million undisbursed.
Bureaucratic delays, manpower shortages, and slow approval of financial rates have stalled infrastructure upgrades, teacher training, and research grants.
This project aims at strengthening higher education governance, resilience, and graduate employability, improve women's access, and enable rapid response to crises or emergencies.
