10 LARGEST BANGLADESHI PROJECTS

Submitted by
MD. NAYMUL HASAN
ID: 1908012

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Submitted to

DR. NAFIS AHMED

Professor

Department of IPE, BUET

Submission date: 21-05-2022

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 1. The Padma Multipurpose Bridge (PMB) project

❖ Construction started: In November 2014.

❖ Budget: Tk 287.93 billion (28,793 crore).

❖ Duration: Approximately 8 years. (Expected to end within June 2022)

❖ Cost of finance: The project cost was estimated to be US$3.00 billion. The Padma
Multipurpose Bridge (PMB) project was designed to be funded by donors such as
the World Bank, Japan International Cooperation Agency (JICA), Asian
Development Bank (ADB), and Islamic Development Bank (IDB). After an
allegation of corruption by some people associated with project preparation, the
World Bank withdrew its commitment and other donors followed. However, the
corruption allegations were subsequently found to be false and without merit and
the Canadian Court subsequently dismissed the case. The project is now being
funded from the own resources of the Government of Bangladesh.

❖ Loss/burden to public/future generation: The construction of the bridge will

have a huge economic impact on the country. In an analysis or study report, the
bridge's design consultant, in 2010, the bridge's Benefit-Cost Ratio (BCR) was 1.6
percent and the Economic Internal Rate of Return (ERR) was 18 percent. The BCR
will be 2.1 and ERR 22 percent. In other words, the construction of this bridge will
be economically profitable. Dhaka's communication with 21 southern districts will
be reduced by 2 to 4 hours. The direct connectivity with the capital will help expand
trade and commerce and ease the supply of raw materials and industrialization.
Small and big industries will be set up in the 21 districts. Agriculture will greatly
improve. Farmers will get better commodity prices. Production will increase. So, it
is not a burden to the people but a blessing for the southern people as well as the
whole country.

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 2. Padma Rail link

o Construction started: In July 2018.

o Budget: Tk 39,246 crore.

o Duration: Approximately 6 years.

o Cost of finance: This is also financed from domestic sources. It’s also
under construction by a Chinese company.

o Loss/burden to public/future generation: The rail link project will

improve accessibility between Dhaka and the south-western regions of
Bangladesh. The direct connectivity with the capital will help expand trade
and commerce and ease the supply of raw materials and industrialization.
Small and big industries will be set up in the 21 districts. Agriculture will
greatly improve. Farmers will get better commodity prices. Production will
increase. So, it is not a burden to the people but a blessing for the southern
people as well as the whole country. If government remains aware enough
of such a process, Bangladesh can erase the problem like SriLanka is
currently facing

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 3. Dhaka Metro Rail Project

➢ Construction started: On 26 June 2016.

➢ Budget: $2.8 billion.

➢ Duration: Approximately 6 years.

➢ Cost of finance: Japan International Corporation Agency (JICA) has confirmed

they will provide Tk 16,600 crore of the project’s total cost while the
Bangladesh government bears the rest.

➢ Loss/burden to public/future generation: The metro rail will bring down the
travel time by 50 percent to 70 percent. It is worthwhile to mention that once
complete, the metro train will be able to carry 60, 000 passengers an hour.
Moreover, the estimated time to travel, from Uttara to Motijheel, is 35 minutes
despite having 16 stations. Now it takes approximately two hours to travel the
same distance on a working day. It’ll be a blessing for the people in Dhaka to
be a solution to the traffic jam. So, it’ll not be a burden to the public/future
generation.

➢ Responsibilities of the public to avoid the Sri-Lanka like situation: It’s the
responsibility of the Bangladesh government to reimburse the loan taken from
JICA to avoid any crisis. Bangladesh will have 30 years to repay the loan with
0.7 percent interest.

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 4. Karnaphuli Tunnel

• Construction started: In December 2016.

• Budget: Tk 10,374 crore.
• Duration: Approximately 6 years.
• Cost of finance: Bangladesh has formally signed a US$705 million deal
with China Communication Construction to build a multi-lane road tunnel
underneath the Karnaphuli River in Chittagong.
• Loss/burden to public/future generation: The Karnaphuli Tunnel Project
long cherished by the people of the port city is expected to change Chattogram
by linking the south and the north part of the district through the tunnel
connecting both banks of the river Karnaphuli. After the completion of one
of the biggest projects in Bangladesh, Chattogram city will get two towns on
both banks of the river. The project will strengthen the country's economy as
Chattogram port, the main port of Bangladesh will be safe from the siltation
of the river.
• Responsibilities of the public to avoid the Sri Lanka-like situation: Such
projects can be a cause of economic failures like Sri Lanka. Our foreign
reserve is declining day by day. The value of the dollar is skyrocketing
parallel to TK. So, Government should be very careful about planning such
types of less significant projects. And the public should be concerned about
these such rich-worthy projects which are not so much necessary for our
country in this economic condition.

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 5. Rooppur Nuclear Power Plant Project

✓ Construction started: On 30 November 2017.

✓ Budget: $12.65 billion.

✓ Duration: Approximately 6 years.

✓ Cost of finance: Bangladesh has signed its biggest-ever contract worth

$12.65 billion with Russia’s state-run company to build the Rooppur
nuclear power plant that would generate 2,400 megawatts of electricity.

✓ Loss/burden to public/future generation: The project is being

implemented by the Bangladesh Atomic Energy Commission (BAEC),
under the guidance of the Science and Technology Ministry of the
Government of Bangladesh. The nuclear power plant (NPP) will include two
units, Rooppur Unit-1 and Rooppur Unit-2 with a capacity of 1200 MW
each. The project will provide low-cost electricity and create new jobs in
Bangladesh. If this power plant can be operated properly then it could
enhance our economic growth. But the proposed Rooppur Nuclear Power
Plant Project will bring more harm than good to the country, environmental
experts warned. A group of Bangladeshi scientists voiced profound concern
over the safety and economic viability of this plant.

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 6. Matarbari Deep Sea Port

o Construction started: In November 2020.

o Budget: Tk 17,775 crore.

o Duration: Approximately 6 years.

o Cost of finance: In June 2018, the Japanese government approved a loan

of US$24 million for the project, as part of its 39th Official Development
Assistance (ODA) loan package. In March 2020, the Executive Committee
of the National Economic Council (Ecnec) approved the “Matarbari Port
Development Project” (Tk 17,777.16 crore).

o Loss/burden to public/future generation: This is another 'dream' project

for the country and it will further strengthen our journey towards the ocean
as well as boost our trade and commerce. Matarbari Sea Port will be the
country's fourth port after Chattogram, Mongla, and Payra and it will be built
as a huge port given the growing pressure of economic activities. This port
will minimize the pressure on the Chattogram Port alongside meeting the
growing demand for the country's import and export activities. Goods
transportation to and from the potential industrial estates at Matarbari and
Moheshkhali will also be facilitated once this port is established.

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 7. Bangabandhu Satellite-1

▪ Construction started: In May 2015.

▪ Budget: Tk 19.51 billion.

▪ Duration: Approximately 3 years.

▪ Cost of finance: The development of the BD-1 satellite is estimated to cost

$248m. The Bangladeshi Executive Committee of the National Economic
Council (ECNEC) approved $37.58m in funding for the development of
the country’s first satellite in September 2014. Hong Kong and Shanghai
Banking Corporation (HSBC) agreed to provide $17.46m for the
construction of the BD-1 and its ground equipment.

▪ Loss/burden to public/future generation: This satellite will bring

enormous development & uninterrupted telecommunication system in
Bangladesh, especially in television, telephone & Internet service which
Bangladesh usually purchases from overseas. At present Bangladesh is
spending annually more than $14 million on satellite rent to ensure
connectivity of television, radio, telephone, and internet. So, this satellite
will make Bangladesh self-contained & Bangladesh will also earn some
foreign currency by broadcasting services. India & Pakistan have their
satellites, and Sri Lanka is in a queue. So, Bangladesh rents services to
Nepal. Myanmar or Bhutan & may earn more than $50 million per year.
Finally, the communication system of Bangladesh will get a new progression
of development. This satellite will give Bangladesh a long-term service with
large scalability, global availability, reliability, versatility & super
performance.

▪ Responsibilities of the public to avoid the Sri-Lanka-like situation: It

was not up to expectations, but the Bangladesh Satellite Company Limited
(BSCL) says the Bangabandhu satellite has generated Tk 3.0 billion in
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 revenue over three years. The statement dismissed reports the satellite failed
to earn anything in the past three years, saying it continuously generated
revenue. Though BSCL officials say revenue still lags behind the targets set
in that feasibility study. So, the public should pressurize the government not
to launch another satellite but use this one properly to make more and more
revenue.

8. Bangabandhu Railway Bridge Project

Construction started: November 29, 2020.

Budget: Tk 16,780.95 crore.

Duration: Approximately 4 years.

Cost of finance: The main bridge would be constructed under two packages. Japan
will fund the lion's share (72 percent) of the cost as soft loans. A joint venture of
Obayashi Corporation, TOA Corporation, and JFE would construct the eastern part
of the bridge at a cost of Tk 6,801 crore, while another joint venture of the IHI and
SMCC will work on the western part which will cost Tk 6,148 crore.

Loss/burden to public/future generation: The 4.8km long rail bridge, expected

to become operational in August 2024, will ensure faster train services as the route
is a part of regional rail connectivity. The bridge will improve our connectivity with
such neighboring countries as India, Nepal, and Bhutan. We have a plan to launch
a new train service between Bangladesh and India through the Panchagarh-Siliguri
route. This will also give the authorities the option to increase the number of both
passenger and freight trains, which is expected to develop the country’s rail
services and strengthen regional connectivity.

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 9. Bangladesh's first LNG import terminal

❖ Construction started: On July 18, 2016.

❖ Budget: $179.5 million.

❖ Duration: Approximately 2 years.

❖ Cost of finance: Loans totaling US$102.5 million provided by the

International Finance Corporation (IFC), CDC Group, Deutsche
Investitions- und Entwicklungsgesellschaft, FMO, and the Japan
International Cooperation Agency, US$53.9 million in equity from IFC and
Excelerate Energy.

❖ Loss/burden to public/future generation: Excelerate Energy contracted

MacGregor to supply the mooring and gas transfer system for the FSRU.
Svitzer has been subcontracted by Excelerate Energy for 15 years to provide
marine support services. The company will use five vessels for the project,
including three under-construction Robert Allen Rastar 3200 Ocean Going
Terminal tugs, one 36m Crew Boat, and the MSV Svitzer Foxtrot Benefits
of Moheshkhali LNG terminal. The new terminal will enable Petrobangla to
import LNG from international gas markets and increase the natural gas
supply in Bangladesh by approximately 20%. It will also diversify
Bangladesh's sources of natural gas and provide the country with access to
clean energy. Additionally, the development is expected to provide sufficient
natural gas to support power generation of up to 3,000MW, which is
essential to promote power reliability industrial development, and the
creation of jobs in the country.

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 10.Hazrat Shahjalal International Airport Terminal 3

✓ Construction started: On December 29, 2019.

✓ Budget: Tk 21,300 Crore.

✓ Duration: Approximately 4 years.

✓ Cost of finance: Around two crore passengers will be able to use Dhaka
airport following the construction of the third terminal, 70 percent of the
funding for which is coming from the Japan International Cooperation
Agency (Jica).

✓ Loss/burden to public/future generation: Construction of the third

terminal of Hazrat Shahjalal International Airport is expected to significantly
enhance the capacity of passenger and cargo handling and will contribute to
boosting Bangladesh's trade. The new terminal is set to more than double the
airport's annual passenger handling capacity – from eight million to over 20
million – and cargo capacity – from 200,000 tons to 500,000 tons. The
world-class terminal equipped with modern amenities will provide all
services under a single roof, ensuring seamless operations and the comfort
of passengers. The import cargo complex will be 27,000 square meters, with
a capacity of handling 273,470 tons per year. So, it’ll lessen our time-
consuming period and enhance our efficiency in our day-to-day life which
will have an indirect effect on our economy.

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