Bangladesh Budget 2025-26

Rooppur, MRT-1, Matarbari to get special focus

9.9pc of FY26 ADP will go to the three mega projects

Three mega projects will get special focus in the upcoming development budget with the view to providing cheaper electricity, easing Dhaka dwellers' transportation problem and enhancing international trade for Bangladesh.

The three mega projects -- Rooppur nuclear power plant, Dhaka mass rapid transit line-1 (MRT-1) and the Matarbari Port Development Project -- are together getting Tk 22,710 crore, which is 9.9 percent of the development budget of Tk 230,000 crore for fiscal 2025-26.

The Rooppur nuclear power plant, which aims to provide cheaper electricity, is set to receive the highest allocation in next fiscal year's annual development programme: Tk 12,177 crore.

In the revised budget for this fiscal year as well, the power plant secured the highest allocation: Tk 11,899 crore.

The government is targeting the start of commercial operations of the 2,400-megawatt (MW) nuclear power plant this year, said planning ministry officials.

The first 1,200MW unit is expected to come online in December this year, while the second unit is projected to start operations in December 2026, according to the latest progress report of the Bangladesh Power Development Board.

Once operational, the power plant would reduce dependence on smaller and more expensive power plants, such as those running on furnace oil.

The Rooppur plant is over 80 percent complete, Finance Adviser Salehuddin Ahmed told The Daily Star in an interview recently.

A test run is expected by September or October, with one unit becoming fully operational by the year's end, he said, adding that the second unit is approximately 60 percent complete.

Additionally, five related projects -- including transmission lines, a high-frequency telecommunications system and water supply -- received Tk 2,166 crore in the upcoming ADP, down 10.6 percent year-on-year.

The five projects' total cost is Tk 17,471 crore, with Tk 6,792 crore spent as of June last year.

The MRT-1 project will receive the second highest allocation: Tk 8,631 crore, up from Tk 2,043 crore this fiscal year.

The 31.24-kilometre project, stretching from Hazrat Shahjalal International Airport to Kamalapur via Purbachal, includes a 19.87-kilometre underground line. The Tk 53,977 crore project began in February 2023.

Besides MRT-1, two other JICA-funded metro projects -- MRT-6 and MRT-2 -- are also getting priority in the upcoming budget. Their combined allocation stands at Tk 2,837 crore, up 13.1 percent year-on-year.

The Matarbari Port Development Project will get Tk 4,068 crore in fiscal 2025-26, up 55.8 percent year-on-year.

The project cost was revised upwards by about 37 percent to Tk 24,381 crore shortly after the interim government took charge. Initially launched in 2020, the project's deadline has now been extended to December 2029.

Ahead of his recent trip to Japan, Chief Adviser Muhammad Yunus stressed the importance of fast-tracking development in the Matarbari region with the view to turning it into the country's largest manufacturing and export-oriented free trade zone.

"We envision Matarbari as the nation's largest hub for ports, logistics, manufacturing and energy. To realise this vision, we must attract substantial foreign investment," he said.

In April, the Chittagong Port Authority signed a deal with a Japanese joint venture comprising Penta-Ocean Construction and TOA Corporation to construct a terminal for a deep-sea port at Matarbari.

The terminal will enable the handling of mother vessels and reduce Bangladesh's dependence on transshipment ports for import and export cargo.

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