Any new government, especially a post-poll one starting a fresh term, prepares national budget for the upcoming fiscal year in a way that reflects the election pledges of the party assuming office. The incumbent Awami League government is also learnt to have begun drawing up the budget for FY 2024-25 prioritising mega infrastructure projects that are public-welfare-oriented ones. Notably, in its previous term, the government undertook a number of big mega infrastructure projects like the Padma Multipurpose Bridge, Dhaka Metro Rail, Dhaka Elevated Expressway, Karnaphuli tunnel etc.
No doubt, Dhaka, a city notorious for its agonising traffic mess badly needs such massive transport infrastructure projects to reduce public suffering and keep it mobile. The Padma bridge that connects 21 southern districts of the country with the capital city, for instance, has started to deliver as envisaged since its inauguration more than a year and a half back. But thus far, only one aspect of its immense potential as a facilitator of cross-country communications, has been realised.
Better road communication also means social and economic development of the areas and people living there, the government needs to prioritise those issue in the upcoming budget. So, to complement the Padma Bridge's benefits, it is essential to begin implementing other dreams associated with it such as setting up two export processing zones (EPZs), 17 economic zones, expanding the potential of the country's second largest seaport, the Mongla Port and so on.
Proliferation of retail shops, or encroachment of agricultural lands for non-productive purpose on either side of the highway linked to the bridge does not help achieve the larger aim of adding 1.23 per cent to the country's gross domestic product (gdp), or 2.0 per cent to the regional economy of 21 southern districts as originally conceived. Similar argument of drawing multiple public benefits also applies to other large infrastructure projects. It is indeed uplifting to see that the metro rail project or the Dhaka Elevated Expressway, though not fully completed, has already started to deliver the goods as expected to the great relief of the city's daily commuters.
However, various hurdles including scarcity of foreign currency to undertake new ambitious projects, especially related to the infrastructure-related ones, the government needs to be circumspect. At this point, it would be worthwhile to keep in mind the experience of the Dhaka Expressway for which its original contractor could not start the project even after the elapse of eight years since 2011 following inking of the project deal due to fund shortage.
Now that the project work started following the original contractor (Italian-Thai Development Public Company Limited) having surrendered a large chunk of company share to two Chinese companies in exchange for procuring necessary project loans, it has again been stalled due to refusal of fund disbursement by the lenders. Worse yet, the dispute has been taken to court for settlement.
Lessons can be learnt from the unacceptable wastage of time and the opportunities already lost due to long delay. The government must get prepared for the scarcity of foreign exchange and other bottlenecks on way to starting any fresh mega infrastructure project in the new financial year.
The good news is, this time the relevant committee looking after the fiscal, monetary, currency exchange and resource management under the finance ministry is learnt to have planned to curtail usual budgetary expansion for the next fiscal year. Hopefully, the government would undertake welfare-oriented projects and make the budget required in the next fiscal year with necessary caution to produce better results.
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