Weak planning, coordination gaps drive mega project delays, cost overruns: Experts

Weak project planning, fragmented institutional coordination and poor oversight are driving repeated delays and cost overruns in Bangladesh's major infrastructure projects, experts said at the Bay of Bengal Conversation 2026 yesterday (4 October).

Unrealistic initial budgets, inadequate feasibility studies, frequent design changes, land acquisition problems and lengthy approval processes often push project costs far beyond original estimates, they said at a session "Why Projects Fail: Cost, Delivery, and Accountability in Infrastructure" at a Dhaka hotel.

M Shamim Z Basunia, emeritus professor of civil engineering at the University of Asia Pacific, said the problems often begin at the project formulation stage, when development project proposals are prepared with "squeezed" budgets that fail to reflect engineering realities.

Basunia, who recently served as convenor of a review committee for MRT Line-1 and Line-5, said the committee completed its review within five weeks and found that cost increases were linked to technical and economic factors rather than arbitrary revisions.

He pointed to unrealistic assumptions, inadequate technical assessments, exchange-rate fluctuations, inflation and design changes as major factors behind cost escalation.

In some cases, project costs have risen by more than 100% after major changes in scope and design, he said, questioning why such issues were not addressed during initial planning.

Citing the Dhaka Elevated Expressway and Tongi-Gazipur BRT projects as examples of unrealistic timelines and systemic implementation problems, the expert pointed to changes in MRT projects, saying underground stations initially planned at 300 metres are now being extended to 600 metres, substantially increasing costs.

Fahmida Khatun, distinguished fellow at the Centre for Policy Dialogue, said Bangladesh's fiscal space is becoming increasingly constrained ahead of its graduation from the least developed country category.

With limited budgetary flexibility, the government will face greater difficulty financing development projects efficiently, she said.

She also questioned whether scarce public resources should continue to be concentrated on large infrastructure projects when the country needs greater investment in health, education and social protection.

After LDC graduation, Bangladesh is feared to face reduced access to concessional financing, while development loans may come with higher interest rates and shorter repayment and grace periods, Fahmida said.

Engineer Ghulam Mohammed Alomgir, chairman of Max Group, said the core problem is not the practice of awarding contracts to the lowest bidder but weaknesses in project formulation and oversight.

He said feasibility studies and initial designs should be at least 90% accurate before a development project proposal is approved. In practice, however, non-technical bureaucratic interventions can reduce proposed costs by 15-20% without considering engineering requirements, resulting in unrealistic budgets.

Alomgir said contractor selection generally follows procurement rules but implementation is often slowed by lengthy approval processes.

He alleged that some consultants prolong approvals because their contracts are time-based, allowing them to earn more without facing penalties.

Anurag Acharya, director at Policy Entrepreneurs Incorporated of Nepal, said infrastructure projects in Nepal show similar problems, pointing to weak governance, fragmented authority and poor accountability.

He cited the Pokhara and Gautam Buddha international airports, which faced two to four years of delays and around 15% cost increases. The Upper Tamakoshi Hydropower Project saw a five-year delay and 51% cost escalation, while the Sikta Irrigation Project was delayed by 18 years, with costs rising more than 300%.

Anurag said land acquisition, environmental clearances, utility relocation and local resistance often compound delays.