Even after more than 3 months of the interim government, the indecision surrounding 257 new development projects is not ending. The Awami League government had prioritized these projects for seeking foreign loans in the current fiscal year. But the Planning Ministry or the Planning Commission has not yet received any specific instructions on what this government will do. Therefore, the Economic Relations Division (ERD) is hesitant to seek new loans from development assistance agencies and the country for these projects.
There is a possibility of new instructions on the overall Annual Development Program (ADP) including these projects in the meeting of the Executive Committee of the National Economic Council (ECNEC) held yesterday. Although two ECNECs were held at Ganabhaban after the current government took office, this is the first time that the ECNEC meeting is held at the NEC conference room in Agargaon in the capital. It was chaired by Chief Advisor Dr. Muhammad Yunus. The news is from relevant sources.
The previous government aimed to find various conventional and unconventional development partners including the World Bank, ADB, IDB, JICA, China, India, and Russia for loans for new projects.
When asked about this, former ERD Secretary Kazi Shafiqul Azam told Daily Industry that any change is bound to have an impact on everything. In this case too, if there are projects that are given priority due to political considerations, they need to be verified quickly. However, it may not be the case that all projects will be given due to political considerations. The list of these projects is also given to development partners at the beginning of the fiscal year. Therefore, the interim government will have to take a decision on the projects quickly.
Since we have a need for foreign money, it is also necessary to increase the foreign money allowance. The government is also saying that special importance is being given to projects dependent on foreign loans. Therefore, the sooner a decision can be taken on this, the better. This will also facilitate development partners in making investment decisions. This may be fixed in the revised ADP. But before that, the concerned ministries should talk to the government and take a decision.
Sources said that in the current 2024-25 fiscal year, 257 new development projects of foreign loans were prioritized in the ADP. A list of these projects was given without approval and allocation to attract lenders. The implementation of the projects will cost about Tk 9 lakh crore. Of this, about Tk 6 lakh 35 thousand 580 crore has been taken as foreign loans. Of these, 217 have been given high priority, 36 medium and 4 low priority projects.
When asked, Implementation, Monitoring and Evaluation Department (IMED) Secretary Abul Kashem Md. Mohiuddin told Daily Industry that no specific instructions have been received yet. However, we hope that some instructions may come in the ECNEC held yesterday. The ERD will be able to say whether they have any instructions regarding these projects. In response to a question, he said that overall, a quick decision is needed on all new and old projects included in the ADP. Because the situation in implementing the ADP is quite bad.
According to Planning Commission sources, among the new projects that depend on foreign assistance added to the ADP as a priority of the previous government, the largest number is in the transport and communication sector, 48 of which are in the transport and communication sector. A loan of Tk 274,644 crore will be required to implement them. In second place, the housing and community facilities sector will require a loan of Tk 158,569 crore for 43 projects. In third place, the power and energy sector, which is in third place, will require a loan of Tk 43,725 crore. In addition, among other sectors, 13 projects in the general government services sector will require Tk 19,020 crore, Tk 18,030 crore for industrial and economic services, 19 projects in agriculture will require Tk 9,350 crore, and 16 projects in the local government and rural development sector will require a loan of Tk 44,000 crore. There are also 7 projects in the health sector worth Tk 66,742 crore, 4 projects in religion and culture worth Tk 337 crore, 16 projects in education worth Tk 10,216 crore, 8 projects in science and information technology worth Tk 782 crore and 2 projects in the social security sector worth Tk 156 crore for foreign loans.
Some of the notable projects on this list are- The cost of implementing the Fifth Health, Population and Nutrition Sector Program has been estimated at Tk 2,75,582 crore. Out of this, the expected foreign loan is Tk 56,556 crore. The Health Services Department wants to implement it by June 2029. In addition, the total cost of the Dhaka-Chittagong Highway Development Project has been estimated at Tk 73,151 crore.
Out of this, the foreign loan requirement is Tk 61,186 crore. If the loan is received, the target of implementing it by 2030 from the current fiscal year has been set. The cost of the Bangladesh South Corridor Development Project (Faridpur-Barisal and Barisal-Kuakata) has been estimated at Tk 34,919.17 crore. Of this, the expected foreign loan is Tk 28,119 crore. The implementation time has been estimated from the current fiscal year to June 2030. The total cost of the Water Front Smart City Keraniganj project has been estimated at Tk 81,492 crore. Of this, the foreign loan is Tk 54,673 crore. It is targeted to be implemented by June 2034. In addition, the cost of the conservation of the floodplain of the Turag River and the implementation of the Compact Township Development Project has been estimated at Tk 86,966 crore. Of this, the target foreign loan is Tk 45,966 crore. The project is targeted to be implemented by June 2034. The total cost of the Dhaka Mass Rapid Transit Development Project (Metrorail Line-5) will be Tk 54,618 crore.
Of this, foreign debt has been estimated at Tk 39,138 crore. The Road Transport and Highways Department is trying to implement it by 2030. Some other notable projects are the Haor Flood and Livelihood Project, the Climate Resilient Sustainable Livelihood Expansion Project, the Bhanga-Jessore-Benapole Highway Development Project, and the broad gauge railway construction project from Bhanga Jayshan (Faridpur) to Payrabandar and Kuakata via Barisal.
