New Age | Nothing is being done to stop cost and time overruns in projects

The authorities’ failure to complete major rail and road infrastructure projects by the June deadline shows that they have not kept their promise not to delay the implementation of the projects. These projects, among others, concern the rail link on the Padma Bridge. The rehabilitation, construction and modernization of many important level crossing gates, the purchase of 200-meter gauge wagons, the rehabilitation of 100-meter gauge wagons, the project for improving the operation of rolling stock and the technical assistance project for improving the energy efficiency of rolling stock operations have not met the deadlines as of 30 June. Road infrastructure projects that have missed deadlines include the Joydevpur–Madanpur (Dhaka bypass) road project, construction of three underpasses on the Dhaka–Chattogram highway and the U-loop at Paduar Bazar junction and construction of axle load control centres at source points on major highways. Extension of deadlines for the projects is ongoing. Such extension of deadlines, which have unfortunately become the norm, are leading to cost overruns and thwarting the expected benefits of the project.

While timely implementation of projects is considered the key to effective and efficient development, agencies consistently fail to implement development projects on time and within budget. Even frontline projects, most of which are financed, at least in part, by external debt, are not completed on time and within the original budget. About 40 projects were revised in FY2022, of which 326 projects failed to meet deadlines. The number of projects revised in FY2023 was 369. Corruption and inefficiency are considered to be behind the increasing trend of implementation delays and cost overruns, and the government has failed to address these issues. The situation also calls into question the reliability and acceptability of feasibility studies and project proposals, which are also very costly. Experts have consistently pointed out that projects are approved without adequate feasibility studies and stakeholder consultations. A study by the Implementation Monitoring and Evaluation Division indicates that Bangladesh is slow to complete most projects on time and within budget, and there is a lack of transparency and accountability. Studies have also revealed the absence of proper feasibility studies and technical designs, delays in land acquisition and fund management, lack of institutional capacity to manage multiple projects simultaneously, lengthy tender processes, irregularities and corruption responsible for time and cost overruns.

Most development projects are partially or fully implemented through loans that do not meet deadlines and the budget is bleeding the economy. The government has repeatedly admitted the ills of implementation delays and cost overruns but has done nothing to stop this practice. It is high time the government changed course and ensured efficiency, transparency and speedy implementation to reap the expected benefits of the projects.