Long delays and inconceivable cost overruns have become integrally associated with the implementation of public infrastructure projects in Bangladesh to a level that some projects face similar fates even before they could be initiated.
We do not need to go too far to refresh our memory. The construction work of the Dhaka- Ashulia Elevated Expressway project was inaugurated by the PM in November 2022 whereas the project was initially planned to be completed by June 2022.
This is just one of the many projects which witnessed sluggish implementation and continued cost overruns. An IMED report shows that 117 projects had zero physical progress and many other projects had unsatisfactory physical and financial progress. Despite these, many projects have sought and received time extensions and increased budget allocation.
One of the notable projects which witnessed delays and overruns year after year would be the Dhaka Elevated Expressway, connecting Shahjalal International Airport to Dhaka Chittagong Highway.
Despite being inaugurated back in 2011, the project witnessed slow progress and thus, has been revised multiple times. Although the Public Private Partnership Authority's website claims the project to be completed in FY 2018-19, there is skepticism if it will get completed by 2023 as scheduled as per the revised plan.
What has been discussed so far is nothing new. And, we cannot be optimistic that the scenario will get any better soon. To be fair, it is most likely to get grimmer because of delayed payment on outstanding bills, higher costs of construction materials, the dollar crisis, and difficulties in opening LCs to import necessary construction materials, etc.
While the abovementioned factors are new additions, the persisting reasons affecting the implementation of projects are quite long. In a recent study by IMED titled “Issues and Challenges of Implementation of Development Projects in Bangladesh with special focus on time and cost over-run,” several problems were identified that cause delays and overruns throughout the project cycle. They also put forward recommendations, many of which are well known, to ameliorate the situation. However, a few fundamentals are not adequately highlighted.
Public projects, or for that matter any project, must focus on value for money (VfM). VfM promotes economic, efficient, economic use of scarce resources to maximize envisaged benefits. With repetitive cost overruns and delays, one wonders if VfM is adopted in designing the projects and is practiced in project implementation. The World Bank underscores the significance of VfM, mentioning that it “shall be considered at all stages of the procurement process.”
While we consider the cost of delays and cost overruns of projects, we need to factor in the lost benefits (socio-economic and environmental) of poor design and unsatisfactory implementation of the project as they increase the social cost.
Similarly, the cost of extended suffering, especially health hazards and traffic congestion of the infrastructure projects, needs to be added to the list. A pertinent example would be the Bus Rapid Transit (BRT) project which has been the source of immense sufferings for the commuters caused by poor condition and narrowed nature of the road, and endless congestion.
People and entities responsible for poor design and unsatisfactory implementation of the projects are not necessarily brought to task for their potential negligence. Weak governance structures and lax monitoring mechanisms have further challenged the integrity of the system. As a result, corruption and the use of external forces have been affecting the implementation process.
At the end of the day, the repercussions of all the inefficiencies, delays, and overruns will be on the citizens. The welfare of the common will be sacrificed, the burden of tax and increased debts will get worsened, the return on investments will be diminished, and the overall competitiveness of the country will be substantially affected.
In this new height of uncertainty, I want to ask a naïve question: Why should I bear the cost of all these delays and overruns?
Makshudul Alom Mokul Mondal is a consultant and researcher on socio-economic and geo-strategic issues.
