Failing to implement two schemes of a mega project in time, the shipping ministry has sought a 40 per cent reduction in its allocation in the upcoming revised development budget for FY25, officials said on Thursday.
As the schemes could not make more headway in time, the ministry proposed cutting Tk 46.95 billion from its Tk 117.537 billion initial allocation in the FY25 Annual Development Programme (ADP), they said.
The ministry recently requested the Planning Commission to revise down the allocation to Tk 70.588 billion in the revised ADP, said commission officials.
"We have sought a cut in the allocation as implementation was affected to some extent during the 2024 July-August uprising. We are hopeful of completing the unfinished work in FY26," said a senior shipping ministry official.
He said they had proposed slashing the Matarbari port development project fund due to implementation delays.
Planning Commission officials said Tk 18.087 billion had been proposed to be cut from the current Tk 43.79 billion outlay of two components of the project. One of the components is under the Chittagong Port Authority (CPA) and the other under the Roads and Highways Department (RHD).
The government in March 2020 undertook the project's CPA part at a cost of Tk 88.32 billion involving the establishment of a deep seaport. At the same time, it also took on the RHD part at a cost of Tk 89.75 billion to build Cox's Bazar-Moheshkhali connecting highways.
The government earlier revised both parts of the project, raising the costs and extending the deadline up to December 2026.
The Japan International Cooperation Agency (JICA) is supporting the government to implement both schemes.
The CPA is building the country's first deep seaport in Matarbari. The project was taken up to increase Bangladesh's cargo handling capacity, reduce pressure on the Chittagong port, and meet the future international trade needs.
On the other hand, the RHD is constructing a 25.8km, four-lane port access road on the new embankment to connect the deep seaport.
Meanwhile, the Planning Commission has started revising the Tk 2.65 trillion ADP. All the ministries have already sent to the commission their revised fund requirements for the ongoing projects.
The Payra Port Authority under the shipping ministry has proposed keeping its current Tk 10.95 billion allocation unchanged in the revised ADP.
The shipping ministry is currently implementing 33 development projects at a combined cost of Tk 693.61 billion.
In the current ADP, the government allocated Tk 117.537 billion for the ministry to implement the projects.
Of the amount, Tk 54.89 billion will come from internal resources and Tk 45.87 billion from external resources as project aid. The remaining Tk 16.76 billion will come from the implementing agencies' own funds.
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