Slower big projects lower fund demand

Slower implementation of all mega-projects in bridge-building sector, including Padma Bridge, has squeezed fund demand by 22 per cent in the upcoming fiscal.
Bangladesh Bridge Authority (BBA) has placed such an abridged demand for allocations in the budget for the next fiscal year (FY), 2017-18, according to sources.
Owing to slow progress of its three mega infrastructure projects, BBA also had to surrender over 29 per cent of its budget allocated in the current fiscal year (2016-17).
BBA officials said the authority has sought Tk 79.03 billion against its year-on-year demand plan of Tk 101.52 billion for the upcoming fiscal year in view of the ground reality.
Sources said all these three projects - Padma Multipurpose Bridge Project, Dhaka Elevated Expressway and Karnaphuli Tunnel Project-were lagging behind their respective schedules, prompting project offices to surrender Tk 26.8 billion.
The BBA was provided Tk 92.07 billion in the FY 2016-17 for implementing these three important projects but received Tk 65.27 billion in the revised budget being unable to make the desired progress.
Officials said of the total demand placed for the upcoming year, Tk 55.24 billion has been sought for the Padma Multipurpose Bridge, Tk 8.05 billion for Dhaka Elevated Expressway and Tk 15.74 billion for the Karnaphuli-tunnel project.
PMPB project office has revised Tk 13.52 billion down, failing to make due progress, while DEE project could not use 64 per cent of allotted budget.
The Karnaphuli-tunnel project, which was inaugurated during Chinese President's visit to Bangladesh last October, could also not make any headway due to long silence of the Chinese EXIM bank.
Budget allocation for the Karnaphuli tunnel was Tk 19.81 billion in the current fiscal year, which was, however, revised to Tk 14 billion for unavailability of the Chinese loan as project assistance.
The project assistance was shown Tk 11 billion.
But sources said BBA could spend Tk 1.38 billion in the current fiscal year from government part of the budget for land acquisition.
An official said in the light of the reality, lesser budget was sought for the three projects as the Padma Bridge project's main bridge contractor and river-training contractor could not work much before next dry season.
PMPB and DEE projects have gone through various difficulties like financial crisis since inception in early 2010. Due to the difficulties, project-completion deadlines for the two infrastructure projects were extended up to December 2018 and 2019.
However, construction of the Karnaphuli Tunnel is yet to be started though it was also planned to be completed in three years.
smunima@yahoo.com