Owing to many bank owners and industrialists going “traceless” and a dip in government expenditure on projects taken to the past government’s political objectives, the state of investment in the country is not good, Planning Adviser Wahid Uddin Mahmud said today (7 October), adding this was to be expected after a big political changeover.
Speaking to reporters after the National Economic Council Executive Committee (ECNEC) meeting, he said the effects of this fall in both private and public sector investments could be felt even in the villages, where people say their businesses aren’t doing well.
Emphasising that the past regime had taken up less important projects, he said, “We are approving projects based on the context.”
On the slowing of investment, he said, “Many industry and bank owners are traceless. Disbursement of loans from banks to private sectors has also slowed. The private sector is the driving force in the economy and its investments are being hampered…after such a big political change, it is normal that this will be the case,” he said.
On public sector investment, he said all ongoing and proposed projects of the government will be scruntinised.
“Many projects were taken due to political considerations. Many projects have not been implemented properly or the planning was wrong. For example, a road was built in a certain location for the convenience of an influential person instead of thinking about the direction of traffic. These have to be sorted out. Ongoing projects can be revised.
“Unnecessary projects or politically motivated projects, as far as they are concerned, are not being allocated funds if they are self-sustaining.”
Tk11,560cr rail-cum-road bridge construction project at Kalurghat approved
The Ecnec meeting today also approved a Tk11,560.77 crore new rail-cum-road bridge project over the Karnaphuli River at Kalurghat beside the existing old bridge to ensure a smooth and uninterrupted communication system between Chattogram and Cox’s Bazar.
The approval came from the 3rd Ecnec meeting of the current fiscal year and the 2nd of the interim government held at the Chief Adviser’s Office in the capital with Chief Adviser Prof Dr Muhammad Yunus in the chair.
Planning Adviser Wahiduddin said the meeting approved a total of four projects involving an overall estimated cost of Tk24,412.94 crore.
“Of the total project cost, Tk7,746.66 crore will come from the government of Bangladesh portion, Tk16,012.33 crore from project assistance and Tk653.95 crore from the concerned organisation’s own fund.
“Of the approved four projects, two are new while two others are revised projects,” the adviser said.
Besides, the meeting approved the timeframe extension of seven projects without raising their costs.
The Ministry of Railways will implement the rail-cum-road bridge project to be implemented by December 2030.
Out of the total project cost of Tk11,560.77 crore, Tk4,435.62 crore will come from the government of Bangladesh while the rest of Tk7,125.15 crore will come from the Economic Development Cooperation Fund (EDCF) and Economic Development Promotion Facility (EDPF), Korea.
The planning adviser said the fresh project has been considered since the existing bridge at Kalurghat is old and dilapidated.
Besides, he said the government also wants to transform Cox’s Bazar as a much-improved tourist destination side by side with the Matarbari coal-based power plant and adjacent economic zone needs improved communication. For this, the government felt that a fresh project should have to be undertaken in this regard, he added.
Regarding the approval of Matarbari Port Development, 2nd revised with an additional cost of Tk6,573.96 crore, the adviser said it is a big project and it also has geopolitical aspects.
He said there has been a row between China and India for long over funding of this port.
The planning adviser said necessary works are yet to begin at Matarbari Port while roads would be constructed for Port development.
The two other projects approved in the meeting are SASEC Road Connectivity, Project-2: Elenga-Hatikamrul-Rangpur Highway Four Lane Upgradation, 2nd revised with an additional cost of Tk376.99 crore and Resilient Urban and Territorial Development Project (REUTDP) with Tk5,901.22 crore.
