Rethinking public project execution in Bangladesh

In Bangladesh, development predominantly relies on the successful execution of projects, making it largely project-based. However, as in many other countries, development projects in Bangladesh frequently face delays and cost overruns, which strain resources and hinder the country's progress.

Over the past decade, Bangladesh has encountered significant cost escalations in its development initiatives, underscoring persistent challenges in project management, planning, and execution. Recent data from various governmental and non-governmental sources indicate that approximately 60–70% of large-scale infrastructure projects have suffered from budget and time overruns, with some exceeding initial estimates by more than 100%. 

This trend is particularly noticeable in sectors such as transportation, energy, and urban development. Analyses of major infrastructure projects reveal that over 75% of public sector initiatives exceeded their original budgets, with average cost increases of 45%. For instance, the Dhaka–Chattogram Highway widening project, initially estimated at $240 million, ultimately cost $530 million—representing a 120% increase.

The prevalence of time and cost overruns in Bangladeshi development projects is deeply rooted in a complex web of systemic issues that reflect broader governance and structural inefficiencies. A major contributing factor is widespread corruption, compounded by significant delays in project approval, tendering, and execution stages. Weak institutional oversight and inadequate accountability mechanisms further exacerbate these problems, allowing budget inflation and project delays to go largely unchecked.

Moreover, inadequate feasibility studies and unrealistic cost estimations during the initial planning phases frequently lead to under-resourced and poorly scheduled projects. Political pressures or a lack of technical expertise often influence these shortcomings. As a result, projects are launched with insufficient preparation, necessitating mid-course corrections that inflate costs and prolong timelines.

Political interference also complicates project implementation. Frequent shifts in governmental priorities—often driven by political agendas rather than developmental needs—result in abrupt changes to project scopes or funding allocations. This leads to redesigns, renegotiations, and the reallocation of resources, all of which contribute to extended delays and rising costs.

In addition, the lack of modern project management techniques and technologies limits oversight and control. Environmental and logistical challenges further exacerbate the situation. Bangladesh's vulnerability to natural disasters—particularly flooding—often disrupts construction timelines and damages materials, causing expensive setbacks. Land acquisition challenges, rooted in legal disputes and insufficient compensation for displaced communities, frequently bring projects to a standstill.

Furthermore, the absence of a robust legal and regulatory framework to enforce contracts and penalise non-compliance allows contractors to miss deadlines or inflate costs with little consequence.

Studying international best practices is essential before undertaking strategic reforms. Japan, for example, is renowned for efficiency in construction and infrastructure development. One effective methodology employed there is Lean Construction, derived from the Toyota Production System. This approach focuses on maximising value by minimising waste, optimising workflow, and enhancing efficiency across the project lifecycle. 

Additionally, Japan uses a collaborative planning model known as the Last Planner System (LPS), which involves all stakeholders in the scheduling process and bases task planning on actual constraints and capacities.

The Netherlands has embraced Building Information Modelling (BIM) to reduce errors and miscommunication during construction. BIM facilitates detailed visualisation and simulation of projects before ground-breaking, enabling better planning and fewer unforeseen complications. 

Meanwhile, Germany emphasises standardisation, employing the Deutsches Institut für Normung (DIN) standards to ensure consistency across projects. This reduces variability and delays associated with non-compliance or poor workmanship. Germany also maintains a rigorous project audit and oversight system to ensure adherence to standards.

Drawing on these global lessons, Bangladesh must develop strategic approaches to reduce inefficiencies in project management. Effective project management is critical to ensuring projects remain on track. Implementing frameworks such as PMBOK (Project Management Body of Knowledge) or PRINCE2 can help standardise procedures and promote best practices.

A merit-based system for appointing project directors—focusing on professional competence and experience—is crucial. Furthermore, a reward-and-penalty mechanism for successful or failed project execution should be institutionalised. Annual Performance Agreements (APAs) for development ministries and divisions should incorporate Key Performance Indicators (KPIs) that assign significant weight to effective project implementation.

Excessive spending and poor management also contribute to cost overruns. The use of digital platforms to track project progress and monitor financial transactions can reduce corruption and enhance transparency. Regular publication of project updates and financial reports would promote stakeholder accountability and keep the public informed.

Modern technologies can significantly boost productivity and reduce costs. Project planning and management tools such as Microsoft Project, Trello, or Asana can streamline scheduling and monitoring. In construction, BIM enhances planning, design, and execution. Similarly, drones and Geographic Information System (GIS) technologies can be instrumental in surveying, monitoring, and managing large-scale infrastructure projects.

Simplifying the approval process can accelerate project initiation and completion. Establishing clear, consistent guidelines for implementation can reduce uncertainty and eliminate bottlenecks. Community involvement during planning and implementation phases can ensure more inclusive, effective, and accepted outcomes. Regular feedback from stakeholders helps identify issues early and fosters adaptive management.

It is equally important to establish and regularly track KPIs to monitor progress and ensure accountability. Efficient contract management is also essential. This includes drafting clear and comprehensive contracts that define scope, timelines, responsibilities, dispute resolution mechanisms, and processes for managing change.

In summary, addressing time and cost overruns in Bangladesh's development projects requires a comprehensive and coordinated approach encompassing strategic planning, sound management, enhanced transparency, adoption of modern technology, improved procurement practices, stronger institutional capacity, policy reform, and inclusive stakeholder engagement. 

By implementing these strategies, Bangladesh can enhance the efficiency and impact of its development efforts, fostering long-term economic growth and improved public welfare.

Dr Mohammad Kamrul Hasan is Public Administration and Public Policy Researcher and Analyst. 

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.