Bangladesh Railway initiated the project to build a railway factory in Rajbari, the constituency of former Railway Minister Zillul Hakim. The project’s cost exceeds Tk 75 billion. However, the interim government is set to cancel the project pending approval.
Top officials at the Ministry of Railways have stated that the railway currently operates two factories: one in Pahartali, Chattogram, and another in Syedpur, Nilphamari.
Due to a shortage of manpower, low allocations, outdated machinery, and lack of raw materials, both factories are underperforming. The initiative to build a new factory was taken without first modernising the existing two.
This issue is not limited to railway factories. The government plans to cancel "politically motivated, unprofitable, and unimportant" projects across various ministries, including railways, roads, education, information technology (ICT), disaster management, environment, and local government.
The construction of a flyover in the haor area of Kishoreganj began last year in the interest of former president Md Abdul Hamid. Approximately Tk 56.51 billion is being allocated for the project
An analysis of data from 10 ministries has identified at least 35 projects that will either be cancelled, have their allocations suspended, or see cuts in spending. The total cost of these projects exceeds Tk 1 trillion.
Earlier, during a meeting with officials from the Planning Commission on 19 August, Wahiduddin Mahmud, the planning adviser to the interim government, directed them to list projects that were politically motivated and deemed less important. In response to this directive, ministries and departments began preparing lists of such projects.
Of the 35 projects that are set to be cancelled or postponed, some are already in progress, some have just begun, and others have yet to start. Several projects are still in the approval stage. Ministry officials have noted that the number of projects on the cancelled or postponed list is likely to increase.
Muhammad Fouzul Kabir Khan, adviser to the Ministry of Power, Energy, and Mineral Resources, told Prothom Alo that projects initiated by the previous government are being cancelled based on three factors as following whether the project addresses the needs of the people, what the returns (benefits) of the project will be, and w hether the project poses any environmental harm. He also emphasised that many projects were launched for political reasons and would be scrapped accordingly.
Projects in the interest of president, ministers
The construction of a flyover in the haor (wetlands) area of Kishoreganj began last year in the interest of former president Md Abdul Hamid. Approximately Tk 56.51 billion is being allocated for the project.
However, according to sources in the bridges division, the funding for this project may be suspended. The anticipated traffic volume for the flyover is deemed unlikely to be as high as projected, and there are concerns about potential environmental and biodiversity damage if the flyover is constructed in the Haor.
The flyover was planned to begin in Mithamain Upazila of Kishoreganj and end at Morichkhali in Karimganj Upazila. The project was approved by the Executive Committee of the National Economic Council (ECNEC) in January last year.
Before this, in September 2022, Prothom Alo published a report titled "Flyover over haor at a cost of Tk 60b." The report questioned the feasibility of the project, noting that the expected daily traffic volume would exceed that of vehicles on the Padma Bridge and the Bangabandhu Bridge over the Jamuna River.
When asked about the project’s potential cancellation, Sarwar Morshed, the project director for the flyover, told Prothom Alo that measures would be taken based on the decision of the interim government.
The Ministry of Local Government also proposed the construction of another flyover in the Haor region to establish road connectivity between Sunamganj District and Netrakona. The estimated cost of this project was Tk 34.90 billion. However, on 31 October, the Planning Commission held a meeting where it was decided that this project would be cancelled due to its potential negative impact on biodiversity and the environment.
Another project, the 'Bangabandhu Sheikh Mujib Safari Park, Moulvibazar (Phase I)', was approved last year in the Lathitila Forest area in Juri Upazila, Moulvibazar, which is the constituency of former Minister of Environment Shahab Uddin.
The park was planned to be built on 5,631 acres of reserved forest, with an estimated expenditure of Tk 3.64 billion. Environmentalists and the Planning Commission raised objections to building a safari park in a reserved forest, but despite these concerns, the project was approved. The new government has now decided to cancel the project.
Additionally, former Local Government Minister Khandaker Mosharraf Hossain initiated the construction of a park in his constituency in Tepakhola, Faridpur, during his tenure (2014-2018).
The project, which was estimated to cost Tk 1.8 billion, began in 2018. Former Minister of Fisheries and Livestock Abdur Rahman laid the foundation stone for the park earlier this year, but the project has not yet started. Its funding is now also being suspended.
In 2019, an economic zone development project was launched in Nawabganj, the constituency of Salman F Rahman, Adviser on Private Industry and Investment Affairs to the ousted Prime Minister Sheikh Hasina. The estimated cost of the project was Tk 19.15 billion.
In 2018, another economic zone development project was initiated in Netrokona, the constituency of Sajjadul Hasan, former Secretary of the Prime Minister's Office and former Member of Parliament.
The expenditure was estimated at Tk 15.03 billion. According to sources at the Bangladesh Economic Zones Authority (BEZA), both of these projects are now being canceled.
An initiative to establish a maritime institute in Meherpur, the constituency of former Farhad Hossain, was taken immediately after the 7 January elections.
The project, which was still awaiting approval, had an estimated cost of Tk 2.20 billion. However, it is now being canceled while still in the approval process.
Sources within the Ministry of Shipping report that there are already two maritime institutes, one in Chattogram and another in Madaripur. Both of these institutes are facing manpower and financial crises. The new institute was proposed under pressure from Farhad Hossain, despite the need to first strengthen the existing ones.
Following the 2018 elections, a project to build rural infrastructure was launched based on the preferences of MPs. The estimated cost of the project was Tk 65.26 billion, and 68 per cent of the allocated funds have already been spent. However, it was decided to cancel the project in a meeting of the Planning Commission on 31 October.
In the aftermath of the fall of the Awami League government following a student led mass uprising, many ministers and MPs are either in hiding or in prison which is why their statements could not be obtained.
List of projects to be cancelled
In April last year, the Awami League government launched a project titled "Development Promotion at the Grassroots" to highlight its “development work” over three consecutive terms.
The estimated cost of the project was Tk 430 million. Through this initiative, the government showcased its development efforts by traveling from village to village using a bioscope. Around Tk 130 million has already been spent on the project, which was halted after the interim government took over.
The Ministry of Information and Broadcasting was responsible for the project. Ministry officials argue that the project served only to promote the previous government's development efforts without providing tangible benefits to the people.
As a result, the project was cancelled. Shariful Arman, the deputy project director, told Prothom Alo that all development promotion activities have been suspended for the time being.
The construction of 550 Mujib Killas (Shelter Centres) across various districts of the country began in 2018 to provide shelter during disasters. The estimated cost of the project is Tk 19.97 billion, of which Tk 4.5 billion has already been spent.
Officials from the Ministry of Relief and Disaster Management have stated that shelter centres were built in certain areas under the pressure of ministers and MPs, but many of these centres are not functioning.
There have also been reports of irregularities and corruption during construction, with substandard materials used in several parts of the country. The Ministry of Disaster Management has confirmed that this project will be suspended.
The Metrorail’s southern route project (MRT Line-5), which was planned to run from Hemayetpur to Dasherkandi via Aftabnagar in Dhaka, may also be cancelled. The project was awaiting approval, with an estimated cost of Tk 546.18 billion.
Sources claim that the project was conceived to benefit influential housing developers. Instead, the government is focusing on the construction of Metrorail Line-2, which will run from Gabtali to Narayanganj.
On 23 September, the Planning Commission sent a letter to the Road and Highways Department, instructing a thorough re-examination of the MRT Line-5 project and requesting further action.
Other projects on the cancellation or allocation cut list include the construction of agricultural research institutes in three districts (Feni, Chandpur, and Tangail), hi-tech parks in 12 districts, digital connectivity projects, mobile game applications, and the Sheikh Hasina Institute of Frontier Technology.
People requested to assist
The Annual Development Programme (ADP) for the current financial year 2024-25 is set at Tk 2.65 trillion, covering 1,326 projects. Since taking office, the interim government has not initiated any new projects, and proposals for new projects awaiting approval are being sent back. Officials from the Planning Commission have indicated that the budget for the current financial year will be revised in February. Many low-priority projects will be excluded from the revised budget, and funding for some projects will be suspended.
Cuts in government development spending also negatively impact employment and product demand, which in turn can slow the growth of Gross Domestic Product (GDP).
Zahid Hossain, former Chief Economist of the World Bank’s Dhaka office, told Prothom Alo that the decision to cancel non-essential and politically motivated projects is a correct one.
He emphasised that, if funding permits, new projects aimed at real public welfare should be prioritised. He also suggested reducing expenditure on projects while increasing funding for social safety nets to provide relief to the public amid the ongoing inflationary pressures.
Hossain further proposed that the social security programme allowance be increased, and direct cash transfers be provided to poor people to help alleviate their financial struggles.
* This report, originally published in Prothom Alo print edition, has been rewritten in English by Farjana Liakat