A2i project faces massive cost surge

The government's flagship Aspire-to-Innovate (a2i) project has run into major financial controversy after racking up deferred payments of Tk 3.0 billion in its data-preservation segment, twelve times the original allocation.
Despite an initial provision of only Tk 250 million, the project authority is now seeking more than Tk 3.55 billion to clear outstanding bills and sustain critical digital services.
Officials at the Planning Commission (PC) say the ICT Division has proposed a second revision of the project, which would raise its total estimated cost to Tk 13.60 billion, over 59 per cent higher than the first revised figure of Tk 8.55 billion.
The soaring costs have prompted scrutiny from policymakers, who question both the financial discipline and procurement practices of one of the government's most prominent digital initiatives.
The Planning Commission's Socio-Economic Infrastructure Division recently hosted a meeting of the Special Project Evaluation Committee (SPEC) to assess the proposal.
Officials said the meeting raised concerns about the justification for procuring services on deferred payment.
"Spending more than the allocated amount in any component goes against a project's financial discipline," said Abdur Rouf, Chief at the Planning Commission.
"Moreover, there is no provision in government projects to purchase goods and services on credit, leaving payments outstanding year after year in any segment."
Contacted over phone, Project Director Abdur Rofiq, however, declined to comment on the matter. When asked for an appointment last week, he said he would be travelling abroad and would provide comments upon his return next month.
The a2i project was approved in 2020 with an estimated cost of Tk 4.85 billion. Widely regarded as the Awami League government's flagship ICT initiative, its cost rose to Tk 8.55 billion following the first revision.
Approval of the second revision would push the total to Tk 13.60 billion, an increase of Tk 8.75 billion, or 180.22 per cent of the initial estimate.
According to the ICT Division's proposal, critical digital systems such as D-Nothi, National Portal, MyGov, EkPay, and Muktopaath are hosted on Bangladesh Data Center Company Limited (BDCCL) infrastructure.
"Over past project cycles, hosting and service costs have accumulated due to budget shortfalls in the allocation. With rapid service expansion, resource use at BDCCL has increased, leading to higher bills," the proposal stated.
As of FY 2024-25, outstanding dues stand at around Tk 3.0 billion, which must be cleared to ensure smooth operations, the proposal added.
Several other expenditure heads have also been proposed to rise by more than 50 per cent, according to discussions at the SPEC meeting.
Planning Commission officials noted that the second revision has drawn particular scrutiny because of steep increases in certain allocations. Notably, the revised proposal shows that the budget for procuring computers has been raised to Tk 852.95 million, Tk 827.95 million higher than the original estimate of Tk 25 million, representing a 34-fold increase.
The ICT Division has also proposed Tk 1.9 billion for software development, up Tk 564.14 million from the latest revision.
At the SPEC meeting, commission officials questioned the rationale for such allocations, given that the project has already been under implementation for nearly six years.

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