The government has given its endorsement to 16 development projects, amounting to a total cost of Tk 243.62 billion. These projects mainly focus on rural and urban infrastructure development. The Executive Committee of the National Economic Council (ECNEC) approved these projects during a meeting chaired by Prime Minister Sheikh Hasina in the capital. Among the approved projects, at least seven are related to rural infrastructure development, while two pertain to urban infrastructure.
After the ECNEC meeting, Planning Minister MA Mannan highlighted that the government has prioritised rural infrastructure development, aiming to enhance the overall development of villages. He also addressed concerns about the timing of these large-scale projects in light of the upcoming national elections and the government’s ongoing commitment to austerity measures. Minister Mannan also emphasised that the government is conscious of the need for austerity and is therefore focused on undertaking only essential projects, rather than constructing highways or buildings.
Need of timely execution of the projects
Out of the total project cost, Tk 128.73 billion will be financed through internal resources, Tk 161.5 million will come from the implementing agencies’ own funds, and the remaining Tk 114.73 billion will be acquired from external resources in the form of project assistance.
During the meeting, it was revealed that out of the 16 approved projects, eight are new initiatives while the remaining eight are revised projects. Prime Minister Sheikh Hasina addressed the issue of inflation and urged cabinet members and officials to take measures to curb it, as it has been impacting the lives of the people in recent months. Minister Mannan quoted the Prime Minister as saying that it is the responsibility of all relevant stakeholders to tackle inflation. Prime Minister Hasina also stressed the importance of mobilizing foreign aid from external sources to support the implementation of these projects. This approach aims to alleviate pressure on the country’s foreign exchange reserves. She further instructed the authorities to ensure the optimal utilization of approximately US$50 billion in foreign assistance that is currently in the pipeline for various development projects. The Prime Minister specifically mentioned the need for the Economic Relations Division and the Finance Division to work towards mobilizing additional foreign aid to finance these development initiatives.
Stable macroeconomic indicators in help
State Minister for Planning, Dr. Shamsul Alam, emphasized the importance of timely execution of projects using the foreign aid available in the pipeline. He highlighted that utilizing foreign funding is beneficial for the government as the interest rates are lower compared to borrowing from the local market.
In addition to this, Prime Minister Hasina instructed the relevant authorities to work towards achieving cent-per-cent agriculture irrigation through the use of solar-powered pumps. Minister Mannan informed the journalists that the Prime Minister specifically directed the Ministry of Agriculture to install high solar panels to facilitate the cultivation of crops such as onion, ginger, turmeric, and fish.
The government is willing to provide necessary support, including tax-related facilities, to the private sector if they come forward to install solar panel systems. However, Prime Minister Hasina also emphasized the importance of minimizing land usage during the implementation of such projects, urging the executing agencies to be mindful of land conservation.
In regards to the country’s macroeconomic situation, the planning minister has stated that there has been an increase in inward remittances as well as imports and exports. Meanwhile, the foreign currency reserves have remained stable. Furthermore, due to the stable price trend of rice, the planning minister expects a decrease in general point-to-point inflation in the near future.
Chancery Complex, Underpass, and Road Development Projects get green light
During the ECNEC meeting, several projects were approved with their respective budgets. The Improving Urban Governance and Infrastructure Project (IUGIP) received a budget of Tk 63.45 billion. The agriculture irrigation project, which involves the use of solar-powered pumps, was revised for the second time, incurring an additional cost of Tk 2.01 billion.
Additionally, the infrastructure development of the BCS Tax Academy (1st phase) received a budget of Tk 1.16 billion. The construction of the Bangladesh Chancery Complex in Berlin, Germany (1st revised), was approved with an additional cost of Tk 602.5 million.
The construction of the Shalla-Jolshukha road portion of the Sunamganj-Madanpur-Dirai-Shalla-Jolshukha-Ajmiriganj-Habiganj highway (1st revised) received an additional budget of Tk 2.29 billion. Moreover, the underpass project at Hazrat Shahjalal International Airport was approved with a budget of Tk 11.84 billion. Lastly, the 3rd city operations and infrastructural development sector project underwent a third revision and received an additional budget of Tk 845.2 million.
Some more projects underway
At the meeting, other various projects were endorsed too, demonstrating the commitment to development and infrastructure enhancement in Bangladesh. Among the projects approved were the replacement and modernization of the signalling and interlocking system at Ishwardi-Parbatipur section stations in the western region of Bangladesh Railway. This project has been allocated a budget of Tk 6.48 billion. Another significant project receiving endorsement was the Economic Acceleration and Resilience for NEET (EARN) project, which has been allocated Tk 33.48 billion. This initiative aims to foster economic growth and resilience among the NEET (Not in Education, Employment, or Training) population. Additionally, the Khurushkul Special Ashrayan Project (1st revised) received approval at an additional cost of Tk 1.33 billion. This project focuses on providing special housing facilities for marginalized communities.
The Rural Connectivity Improvement Project (RCIP) (1st revised) also received endorsement with an additional budget of Tk 28.25 billion. The aim of this project is to improve connectivity in rural areas, specifically by widening and strengthening important upazila and union roads in Chattogram. Furthermore, the construction of a 1,490-meter-long PC girder bridge over the Teesta River on the connecting road between Panchpir Bazar and Chilmari upazila Sadar in Sundarganj upazila, Gaibandha district (3rd revised), was approved at an additional cost of Tk 393 million. Other endorsed projects include the widening and strengthening of important upazila and union roads in the Rajshahi Division at a cost of Tk 24 billion, the development of important rural infrastructure in Noakhali, Feni, and Laxmipur districts at a budget of Tk 26.50 billion, and the implementation of herringbone bond techniques for making rural earth roads sustainable (1st revised) with an additional cost of Tk 9.88 billion.
The meeting witnessed the presence of ministers, members of the Planning Commission, and other high-ranking officials who played a crucial role in the endorsement of these projects. This collective effort signifies the government’s dedication to advancing the nation’s development agenda and fostering sustainable growth.
Cover Photo Credit: Yeasin Kabir Joy