Lower fund allocation in FY 21

Mega projects may see slow progress

'The budget cut logical in present situation'


Munima Sultana | Published: June 12, 2020 23:48:57


Mega projects may see slow progress

Mega projects, including the fast-track ones, are likely to see slow progress during the upcoming fiscal year (FY), 2020-21, as the new budget has proposed lower allocation than the ongoing fiscal for their implementing ministries and agencies.
Mega projects like Padma Bridge, metro rails, power plants, Padma Rail-link, Payra Seaport, Matarbari-Moheskhali power plant, and Moheskhali LNG terminal etc have made good progress until the corona pandemic hit the country.
Except two ministries, the budget for FY 2020-21 has proposed reduced allocations, ranging from Tk 1.5 billion to Tk 12 billion, for these ministries than FY 20. The ministries include road transport and bridges, shipping, railways, and power, energy and mineral resources.
Two ministries - civil aviation and tourism, and shipping - have been proposed Tk 2.60 billion and Tk 1.5 billion higher allotments.
However, experts have considered the lower allocation realistic and logical when uncertainty looms large over implementing these projects by setting yearly targets amid the pandemic situation in the country.
They said target-based implementation of the mega projects would be difficult during the next fiscal year due to non availability of experts, labourers and materials, considering spread of the outbreak.
According to the budget for FY 2020-21, the highest Tk 12.10 billion reduced budget has been proposed for the Power Division under the Ministry of Power, Energy and Mineral Resources.
It is implementing Matarbari power plant, Rooppur nuclear power plant and Rampal coal-fired power plant projects.
The Road Transport and Highways Division has been proposed Tk 3.39 billion lower allotment than FY 2019-20. In the budget for FY 2019-20, the division was allotted Tk 251.64 billion.
It is executing projects like Mass Rapid Transit (MRT) Line-1 and 6, SASEC Road Connectivity, Dhaka-Sylhet-Tamabil four-lane, Rangpur-Burimari highway, and Dhaka city circular road.
The Bridges Division has been proposed Tk 5.89 billion lower allocation in FY 2020-21, amounting to Tk 79.73 billion. During the current fiscal year, its allotted budget was Tk 85.62 billion that was later revised to Tk 66.82 billion.
Mega and fast-track projects like Padma Multipurpose Bridge, Dhaka Elevated Expressway and Bangabandhu Sheikh Mujib tunnel are being implemented under the Bridges Division.
The Ministry of Railways has been proposed Tk 124.91 billion in FY 2020-21, which is Tk 1.08 billion lower than the allotment in FY 2019-20.
Under the agency Padma rail-link, Dohazari-Cox's Bazar rail-track, and Bangabandhu dedicated rail-bridge over Jamuna River projects rare being implemented.
The ministry was allotted Tk 125.99 billion in FY 2019-20, which was revised to Tk 102.49 billion. Padma rail-link project was allotted Tk 39.96 billion, but the project office could spend only Tk 2.28 billion until February.
The civil aviation and tourism ministry and shipping ministry have been proposed Tk 36.29 billion and Tk 32.65 billion allocations respectively in next FY against their allotments of Tk 33.69 billion and Tk 31.14 billion in FY 2019-20.
Economist Zahid Hussain termed the lower allotment for these ministries 'logical' when the government has to focus on spending more to tackle corona-related situation.
"Budget for the mega projects always remains high. But implementation of these projects is highly dependent on availability of consultants and workers. It will be challenging during the corona crisis," he told the FE.
Professor M Shamsul Hoque of BUET's Civil Engineering Department said the corona situation has created the need for focusing on non-budget issues, including policies and decisions, to tackle the pandemic at all levels.
As works of the mega projects are done at the field level, focus is needed to ensure protection of all concerned than on fulfilling project implementation target, he also said.
"Construction-related activities will be challenging, as many people are involved with those, including aged and experienced consultants. So, non-budgetary measures are needed to ensure their health, safety and hygiene etc for continuing the mega projects," he opined.

smunima@yahoo.com

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