Govt Plans Tk 91 Billion Funding Cut for Railway Projects

The Mongla port-upgrading project, funded by India, is facing challenges as the Indian consultant proposed an 84% cost increase, raising the total from Tk 60.14 billion to Tk 110.91 billion. The project involves constructing terminals, jetties, roads, and acquiring vessels.

A study by Transparency International Bangladesh (TIB) found that Tk 508.35 billion in bribes were involved in road, highway, and bridge construction over the past 15 years. Covering fiscal years 2009-2010 to 2023-24, the research revealed corruption involving political leaders, bureaucrats, engineers, and contractors within the Roads and Highways Department (RHD). Bribery ranged from 23% to 40% of project costs, with Tk 1.27 trillion spent on RHD projects.

The interim government in Bangladesh plans to cut significant funding from three major railway megaprojects due to inflated cost estimates from the previous administration. Approximately Tk 91 billion is expected to be reduced, with Tk 66 billion to be cut from the Dohazari-Ramu-Cox's Bazar-Ghundhum project and Tk 25 billion from the Padma rail-link project. The Ministry of Railway has instructed the Bangladesh Railway to review and rationalize costs, eliminating unnecessary expenses.

The Matarbari Deep Sea Port construction project, approved four years ago, has yet to commence. Despite the lack of progress, the budget will increase for a second time by Tk 6,500 crore, following an initial rise of over Tk 30 crore. The project's revised budget was approved in a recent Executive Committee of the National Economic Council (ECNEC) meeting, with the Chittagong Port Authority and the Road and Highways Department overseeing its implementation.

The Interim Government's economic policy body has decided to proceed with the long-delayed Matarbari deep-sea port project, selecting Japan as the builder over China or India due to quality concerns and geopolitical issues. This decision, revealed by a planning adviser, comes after a meeting of the Executive Committee of the National Economic Council (ECNEC), where it was emphasized that Japan's funded projects in Bangladesh have maintained quality and timeliness.

The Bangladesh Road Transport Corporation (BRTC) is struggling to repay its debt service liability (DSL) of Tk 11.37 billion to the government due to rising operational costs. The loan, taken five decades ago, has accumulated with interest, and despite recent increases in revenue, the state entity has stated it cannot settle the full amount.