OVER the past two decades, infrastructure construction in Bangladesh has been used as a key instrument of economic transformation. Expressways, bridges, railroads, subway networks, thermal power plants and ports are celebrated examples of public works that symbolise the country’s vision. But behind these impressive pictures, another truth remains unnoticed — most public projects take more than twice, and sometimes even three times, the time originally envisaged for their implementation. Thus, a project initially estimated to last 3 to 4 years becomes a 10-year venture.
Considering the above, project delays are no longer an annoying administrative nuisance. On the contrary, it is a serious economic problem leading to inefficient use of state funds, low investor interest and poor execution efficiency. Moreover, Bangladesh cannot expect its transition towards upper-middle or high-income country status in the face of constant time overruns that also always turn into cost overruns.
The problem does not boil down to a lack of budget funding. Also, neither political instability nor corruption alone explains this phenomenon. In fact, the issue concerns institutional weaknesses, inefficiencies, outdated administrative systems and the lack of managerial competencies in public works.
If these weaknesses persist, no development programme will be executed properly, no matter how great it might seem initially.
Complications of land acquisition processes represent the biggest challenge to effective infrastructure development in Bangladesh. Compensation payments are made punctually to the implementing agency. However, the actual delivery of land becomes problematic due to delays in document circulation, valuation processes and other factors within the district- and sub-district-level revenue administrations.
These factors may prolong the land acquisition procedure by several months or even years, resulting in additional expenses for machinery rental, continued payment of foreign consultant fees, claimants’ requests for extensions of work deadlines, inflation-induced price increases, etc.
Thus, Bangladesh requires legally mandatory timetables for the land acquisition process. After making the necessary payments, the administration offices shall ensure that at least half of the land is handed over within six months after the deadline expires, while the remaining land shall be available within nine months at the latest. Otherwise, the whole process becomes pointless in terms of timelines and costs.
Utility relocation represents another important bottleneck in the timely completion of projects. There is a pattern observed across Bangladesh: new buildings are constructed and left unused because some sections are incomplete and require relocation of utility pipes. The reason is again related to the inefficiency of existing mechanisms rather than insufficient funding.
Currently, utility companies pursue their own procurement policy, select subcontractors with low capacity and fail to coordinate activities with the main contractor. To solve this problem, it is proposed to allow utility companies to execute utility pipe relocation through the main contractor or selected subcontractors accountable to the main contractor directly.
The practice has proven effective for the fast-track development of infrastructure in various countries. If relocation funds are disbursed, utilities must relocate their pipes within six to nine months at the latest. Thereby, fast development becomes possible.
Another problem is administrative inefficiency within governmental departments involved in the project implementation process. Although technical evaluation committees recommend procurement proposals, the documents remain in the offices for various reasons. Such behaviour demonstrates inefficiency and a lack of initiative rather than responsibility.
It is crucial for Bangladesh to introduce a governance paradigm shift in which technically oriented individuals gain significant authority within the project implementation process. Indeed, this process involves numerous technical actions, including design, logistics, environmental control, financing and others.
Therefore, more attention should be paid to the technical evaluation of projects at each stage rather than excessive bureaucracy. Specifically, one possible measure is to impose a limit on file holding by ministries of no more than seven working days without objections.
Finally, Bangladesh needs to improve technical capacities among project managers and officials. Although the country has achieved impressive infrastructure construction, these projects were implemented with the participation of foreign experts. As a result, local engineers and planners lack sufficient practical knowledge of contemporary technologies.
Modern large infrastructure projects cannot be implemented with pure engineering skills anymore. Today, it is crucial to know how to monitor them using advanced information systems, manage conflicts, implement projects on schedule, ensure quality assurance and safety, apply relevant international standards and more.
The only way to overcome this challenge is to allocate additional resources to training and development of managerial skills. For mega projects, this amount could be set at 0.5 per cent of project costs. This expenditure shall be mandatory for projects valued at over Tk 1000 crore. By doing this, the country will gain a team of highly qualified public project managers capable of successfully implementing future projects.
Another important step to overcome challenges associated with project delays involves changing the mechanism for working with foreign consultants. Currently, many consultants receive payment per man-month, with no penalties for delays. As a result, their revenues keep increasing with extended deadlines, so it is profitable for them to delay.
In other words, there is an evident problem of incentives and disincentives.
Future consultancy contracts should either fix the number of man-months for payment or reduce it in case of delays. Also, the same consultant should not be able to continue performing the work at the previous rate after exceeding the initial schedule. Thus, it would become more expensive for the consultancy company not to perform project work within the specified deadlines.
Bangladesh also requires stronger accountability for contractors who fail to complete their projects on time. Unfortunately, there is a tendency for their re-participation in new projects despite a negative performance record accumulated during previous tenders. This situation undermines both contractors’ competitive spirit and the credibility of government authorities.
Thus, the country needs to introduce a database of contractor performance records, implement strict blacklisting systems and conduct performance audits. All those who commit voluntary defaults, both domestic and foreign companies, shall be subject to a minimum of a multi-year ban on participation in public tenders. At the same time, accountability should cover not only contractors but also project directors and officials who supervise these projects.
Experience from other countries provides evidence that project delays can be reduced by improving governance systems. Namely, fast project realisation is achieved by creating strict deadlines, empowering technical bodies with decision-making rights, applying advanced technologies, using advanced coordination and communication tools and ensuring effective accountability.
Bangladesh has proved its ability to develop infrastructure projects. The example of Padma Bridge construction illustrates this point very well. Now, the main task is to institutionalise these processes, which would help the country achieve higher efficiency of project completion.
Indeed, the timely implementation of development projects is a key determinant of economic success, as it saves years of economic gains, including improvements in transport efficiency, increased industrial production, reduced logistics costs, job creation and more.
Against the backdrop of increased fiscal pressure, economic uncertainties and expectations for better use of the state budget, project delays need to be minimised in Bangladesh. Otherwise, the country will not be able to compete with other nations.
Thus, the main priority for Bangladesh’s future development is the establishment of efficient and accountable governance in infrastructure development projects. If Bangladesh succeeds in achieving this, it will not only save billions of takas; more importantly, the country will develop efficient institutional management.
Zillur Rahman is a political analyst and president at the Centre for Governance Studies (CGS). He hosts ‘Tritiyo Matra’ on Channel i. His X handle is @zillur.
