Move to speed up fast-track projects

A fifth of the forthcoming fiscal year's total development budget is earmarked for six fast-track projects to make their progress visible before the next general elections.

Of Tk 1, 53,331 crore Annual Development Programme (ADP) outlay slated for the financial year 2017-18, a hefty Tk 30,614 crore is set aside for the six projects -- Padma Bridge, Padma Rail Link, Metro Rail, Dohazari-Cox's Bazar-Gundum Rail Project, Matarbari Coal-fired Power Plant and Rooppur Nuclear Power Plant.

The move comes at a time when many of the government's 10 fast-track projects are registering slow progress.

For instance, the six projects, which are going to get a good pie of ADP cake in 2017-18, also did receive an allocation of Tk 15,986 crore in the outgoing fiscal but, the government could spend  only Tk 4,547 crore  or 28.44 percent of that allocation in the first eight months of 2016-17.

Yet, the finance ministry sources said, the government is moving ahead with its plan to allocate a large chunk of ADP outlay in such big projects with an aim to making some visible progress in a few of these, which would give some political advantages ahead of the next polls billed for later next year.

In June last year for the first time the government placed a separate budget document titled “Big Projects in Infrastructure Change:  New Dimension for Growth Path” in which the 10 fast track projects were included.

In the current fiscal year big allocations were given to the fast track projects so that people get the benefits soon. However, amidst slow progress, most of the allocations made to the concerned ministries were slashed in the revised budget.

There are uncertainties as to whether many of the projects could be completed as per schedule.

PADMA BRIDGE

Of the projects, the Padma Bridge is the most talked about one and the government has a plan to make the bridge operational by December 2018.

Till February this year, 42.26 percent of the total cost has been spent. In the current FY the original allocation was Tk 6,026 crore but it is now being revised down to Tk 4,674 crore. In the first eight months, only Tk 1,798 crore was spent.

In some pre-budget meetings the finance minister, however, expressed hope that the government would be able to complete the bridge within the timeframe.

PADMA BRIDGE RAIL LINK

Padma Bridge Rail Link is scheduled to be completed by 2022. The government, however, intends to build the rail link on the Jazira end of the bridge by December next year.

In the current fiscal year Tk 4,102 crore was allocated for the project and was later further enhanced to Tk 4,813 crore in the revised budget but, only Tk 566 crore could be spent till February this year.

According to railways ministry officials, China will finance 71 percent of the total project cost. But Chinese Exim Bank has not yet made any formal commitment. In this regard finance ministry has been continuing exchange of letters with the bank so that the agreement can be signed within this year.

METRO RAIL

Dhaka Mass Rapid Transit Development or Metro Rail project is scheduled to be completed by June 2024. As per the plan by December 2019 it would be made partially operational. But, in reality the progress of the project is very slow.

In the current fiscal year, the allocation was Tk 2,227 crore, which was slashed to Tk 1,182 crore in the revised budget. In the first eight months of the current fiscal year only Tk 165 crore could be spent. Of the total, only 3.19 percent of the project's money could be spent till February this year.

Japan International Cooperation Agency (JICA) has been financing about 75 percent of the project.

Officials said, after the militant attack on Holey Artisan Bakery in Gulshan in July last year, the project implementation slowed down. The officials say it is now picking up.

DOHAZARI-COX'S BAZAR-GUNDUM RAIL PROJECT

Taken in 2010, the Dohazari-Cox's Bazar-Gundum Rail project is set to see its completion by 2022 but there has been no physical work yet.

In the current fiscal year, the initial allocation of Tk 613 crore was revised to Tk 1,031 crore and Tk 822 crore was spent in the first eight months.

The Asian Development Bank (ADB) joined the project last year with a 72 percent cost financing commitment and planning ministry officials said, the project got momentum after the ADB joined it. They hoped that the construction work of the rail track could be started this year.

MATARBARI COAL-FIRED POWER PLANT

Another large project is Japan-financed Matarbari Ultra-super Coal-fired power plant. Starting in July 2014, this project's scheduled end period is 2023.

But till February this year, only 2.3 percent of the total project cost has been spent.

In the current fiscal year, Tk 2,400 crore was allocated in the project but in the first eight months only Tk 277 crore was spent. In the revised budget the allocation has been slashed down to Tk 525 crore.

 The implementation of the project has also been slowed down following the militant attack at Holey Artisan Bakery, planning ministry officials said.

ROOPPUR NUCLEAR POWER PLANT 

In the history of Bangladesh, Rooppur Nuclear Power Plant project is the single largest project ever. It is slated to the completed by 2024. The government plans to commission one nuclear based power plant by 2022.

The project has gained some progress. A Tk 5,087 crore project was taken for the preparatory work in the first phase of the power plant which is now almost at the end stage.

In the second phase the total project cost is Tk 1,13,092 crore. Of this, Tk 10,186 crore has been allocated for the next FY. In the current fiscal year, the revised allocation is Tk 3,407 crore. Of the amount, Tk 800 crore has already been spent.

Apart from the abovementioned six projects, there are four other fast track projects of the government. Among those four projects - Sonadia Deep Seaport, Rampal Power Project and Payra Seaport are at initial stage while two private companies have been awarded work of the Moheshkhali LNG Terminal project.