Govt to review cost of 7 mega projects worth 2.3tn

Seven mega projects undertaken by the ousted Sheikh Hasina government are in progress with an estimated cost of Tk 2.30 trillion, and 90 per cent of the work of these projects has been completed except for the Rooppur Nuclear Power Plant.

Now the Implementation Monitoring and Evaluation Division (IMED) of the planning ministry is reviewing the huge cost of these projects, while the white paper on the economy by the interim government will look into the rationality and necessity of undertaking these mega projects.

Several big projects - Payra port, Matarbari thermal power plant, Rooppur nuclear power plant, metro rail in Dhaka, Padma bridge, and four-lane road – were taken during the past Awami League government. Some projects were taken up on political consideration as well as money was allegedly misappropriated through overspending on these projects.

Former lead economist of the World Bank Dhaka office, Zahid Hussain told Prothm Alo the projects undertaken by the past government should certainly be reviewed. The Padma Bridge project has been completed, but how much value it has added, while the cost to maintain the shipping route connecting Pyra sea port will require about Tk 6 billion annually; the nuclear power plant will require more uranium because of the old reactor. The Dohazari-Cox’s Bazar railway has opened, but few trains are operated. Huge money has been spent on these projects, he added.

The last Awami League government fast-tracked a total of eight projects with the Padma Bridge project being warped up officially in June this year. The project cost started at Tk 2.2 billion and lastly revised to Tk 3.2 billion and the entire fund came from tax money.

The Dhaka metro rail project started in 2021 connecting Uttara to Motijheel via Mirpur and Farmgate. Metro rail service has opened on this route with expansion work underway to connect Kamalapur. The post cost is Tk 334.72 billion and the progress of structure work is 90 per cent as of July. The government borrowed Tk 197.18 billion from the Japan International Cooperation Agency (JICA) for this project. It will take 45 years to repay the loans by selling tickets only.

As of July this year, 99 per cent of work on the Rampal power plant, jointly financed by Bangladesh and India, has been completed. A unit of this project, which costs Tk 160 billion, has already gone into operation. However, the project faced allegations of polluting the environment and destroying the Sundarbans since the beginning.

Implementation of the Padma rail link project at a cost of Tk 392.46 billion is underway to connect Dhaka with the southern region of the country, and 95 per cent of the work has been completed. Train service also started, but only 10 trains operate daily instead of 48.

With the loans from Russia, construction of the Rooppur nuclear power plant began in July 2016 at a cost of Tk 1.13 trillion. As of July, work progress was 69 per cent. Repayment of annual loan instalment of USD 500 million to Russia starting from the beginning of 2027 has become a matter of concern now.

Work progress of the Matarbari thermal power plant is 88 per cent with the remaining work likely to end in December 2026.

The cost of the Payra deep sea port construction project has been revised twice to Tk 43.74 billion and 93 per cent of the work has been completed. The Payra port project was undertaken solely on political considerations despite the Mongla port being located within a 100-km distance. The Payra port will not function smoothly without regular dredging.

Ninety-nine per cent of work on the Dhoajari-Cox’s Bazar railway project has been completed, but the railway track connecting the Myanmar border will not be built for the time being. Only six trains move on this route daily instead of 26 trains.

Regarding this, IMED secretary Abul Kashem Md. Mohiuddin told Prothom Alo an initiative has been taken to review the big projects and it will finish soon.

This report appeared in the print and online editions of Prothom Alo and has been rewritten in English by Hasanul Banna