One-fourth of proposed ADP budget goes to 10 mega projects
The government yesterday allocated more than one-fourth of the total development budget for the fiscal year of 2022-23 to 10 mega projects on the fast-track list with a view to accelerating their completion.
Of the total 1,349 projects being developed across the country, the government allocated Tk 58,287 crore for these 10 projects alone considering their importance to the economy.
The size of the annual development programme (ADP) for FY23 has been fixed at a record-high Tk 246,066 crore, of which Tk 153,066 crore will come from internal sources while foreign aid will contribute the rest.
"The number of projects has been reduced this year as we have brought small and/or similar initiatives under a single project," said Professor Shamsul Alam, the state minister for planning, while briefing journalists after a meeting of the National Economic Council chaired by Prime Minister Sheikh Hasina virtually.
Between 1,700 and 1,800 projects were included in the ADP in the last few years but this time around, the number has been reduced to around 1,300.
"This approval is keeping in mind the overall development of the country. Various developments, including the implementation of mega projects, have been given priority," Prof Alam added.
The state minister went on to say that with this measure, qualitative changes are being brought to the project implementation system.
"Also, poverty alleviation work has been given importance in the upcoming ADP."
The proposed ADP has increased by 9.2 per cent compared to what it was in the original budget for the fiscal year 2021-22 and 18.56 per cent compared to the revised financial plan for the same year.
However, the increased allocation is still Tk 38,699 crore short of what implementing ministries and divisions had sought.
Foreign aid for the proposed ADP is expected to be 5.65 per cent higher than its value in the original budget for the ongoing fiscal year while it is 32.38 per cent higher than what it was in the revised budget.
Of the mega projects, the Rooppur Nuclear Power Plant was given the highest allocation of Tk 13,396 crore. The project attained about 45 per cent completion as of March and remains the top performer among all mega projects being built this year.
"Construction work has not stopped even for once despite the ongoing global situation. Work even continued amid the coronavirus pandemic, making it the fastest implementation of a project," said Planning Minister MA Mannan.
Regarding the management of foreign funds, he said it will not be a disaster.
"Getting foreign funds has not mattered much so far. We are just facing higher shipping costs and an increase in the cost of raw materials such rods and cement."
The project, which became mired in uncertainty following Russia's invasion of Ukraine and the resulting Western sanctions against Russia, is progressing as per schedule with the first unit set to open by 2024 and the second unit by 2025.
Among other mega projects, the Fourth Primary Education Development Programme got an allocation of Tk 8,759 crore in the new ADP.
The government allocated Tk 5,809 crore for another mega project, the Padma Bridge Rail Link Project, while the Matarbari 600MW ultra-supercritical coal-fired power project got Tk 6,554 crore.
The Hazrat Shahjalal International Airport expansion project got Tk 6,019 crore and the Dhaka-Ashulia Elevated Expressway Tk 3,703 crore.
In the proposed ADP, the government allocated Tk 70,695 crore for the transport and communication sector, an increase of 14.7 per cent compared to what it was in the current year's development programme.
The second highest allocation went to the power and energy sector with Tk 39,412 crore, which was slashed by 16.37 per cent compared to that of the current fiscal year's ADP.
Meanwhile, spending on education in the proposed ADP has increased by 25.46 per cent compared to the previous amount set aside for the sector.