A MEDIA report on Monday said that the government for the first time is going to make a separate allocation in the upcoming budget for 10 mega-projects which will cost about Tk. 18,700 crore. The number of mega projects is increasing every year; but in many cases, shortage of finance has become the obstacle to implement such projects. To overcome fund deficiency, the government has to largely depend on foreign hard loans instead of soft or concessional loans causing huge adverse impact on the economy.
First track development projects in Bangladesh are mostly undertaken on political considerations and hence at times lack on the ground justifications for such high cost exercises measured in terms of felt needs and social cost effectiveness.
Such projects have a history of problems in Bangladesh, viz cost overruns, delays, failed procurement, unavailability of low cost financing and many of these problems stem from a lack of professional and forward-looking risk management. Large infrastructure projects suffer from significant under-management of risk nearly at all stages of the value chain and throughout the implementation cycle of a project.
It is presumed these big projects will unlock the door for big corruptions. In the roadmap of 10 mega projects, the experts doubt that there might have lack of utility direction through feasibility study as marked out in almost all previous mega projects, resulting in time consuming and cost overrun and finally it leads at times to huge financial loss to the nation. For such mega projects what is needed is to develop an expert team capable of not only managing construction hazards and arranging funds, but also ensuring utility orientation and enforcing a high level of transparency in financial and legal matters.
Everything, however, depends on how the government perceives the whole issue considering the issues so related to selecting development projects from both political and economic angles. Each of such projects involves a stream of intricate matters to be looked into, examined thoroughly and sorted out. This is why; the decision taken has to be prudent and practical.
Responsible policy-planners outside the government are of the opinion that loans taken for such first-track projects would become a perpetual debt-burden for the next generations to come on recurring basis. They held the views that the government, if sincere in developing the country in real sense, should take up medium size projects ensuring common goods for common people and obviously on home-grown technologies to address the felt needs of the people.
In our view, the government should opt for development exercises that cover the social safety net for the vulnerable and poor people, health and education and manpower development which will enhance natural productivity as a whole and transform the economy on solid footings.
First track development projects in Bangladesh are mostly undertaken on political considerations and hence at times lack on the ground justifications for such high cost exercises measured in terms of felt needs and social cost effectiveness.
Such projects have a history of problems in Bangladesh, viz cost overruns, delays, failed procurement, unavailability of low cost financing and many of these problems stem from a lack of professional and forward-looking risk management. Large infrastructure projects suffer from significant under-management of risk nearly at all stages of the value chain and throughout the implementation cycle of a project.
It is presumed these big projects will unlock the door for big corruptions. In the roadmap of 10 mega projects, the experts doubt that there might have lack of utility direction through feasibility study as marked out in almost all previous mega projects, resulting in time consuming and cost overrun and finally it leads at times to huge financial loss to the nation. For such mega projects what is needed is to develop an expert team capable of not only managing construction hazards and arranging funds, but also ensuring utility orientation and enforcing a high level of transparency in financial and legal matters.
Everything, however, depends on how the government perceives the whole issue considering the issues so related to selecting development projects from both political and economic angles. Each of such projects involves a stream of intricate matters to be looked into, examined thoroughly and sorted out. This is why; the decision taken has to be prudent and practical.
Responsible policy-planners outside the government are of the opinion that loans taken for such first-track projects would become a perpetual debt-burden for the next generations to come on recurring basis. They held the views that the government, if sincere in developing the country in real sense, should take up medium size projects ensuring common goods for common people and obviously on home-grown technologies to address the felt needs of the people.
In our view, the government should opt for development exercises that cover the social safety net for the vulnerable and poor people, health and education and manpower development which will enhance natural productivity as a whole and transform the economy on solid footings.
