How change of ministers altered project priorities during AL regime

The Tk334 crore lavish circuit house project planned in the capital’s Bailey Road was deemed less important and sent back by the then planning minister in 2022.

But in less than one and half years the same project got approved by the Executive Committee of the National Economic Council (Ecnec) at the insistence of another planning minister.

This is only one instance how a project’s priority changes with the change of persons with authority and it gets cleared, no matter whether the Planning Commission raised questions about cost estimations or its very relevance.

Vested interest groups with political connections were allegedly at play in the circuit house construction project, which aimed to build a 5-star facility on the site of the old circuit house on Bailey Road.

The Planning Commission raised several objections to the project, and even the public administration ministry was reluctant to propose the project, which was meant to benefit public officials. That, however, did not stop its approval.

Approval despite objections

The Project Evaluation Committee (PEC) of the Planning Commission held a meeting on 5 May 2022 to discuss the project. The proposal was excluded in November that year by then Planning Minister Abdul Mannan.

Around two years later, in 2024, Major General Abdus Salam became the new planning minister after the 7 January election. With his appointment, the project’s fate changed.

On 2 April 2024, Abdus Salam instructed that the project be presented at the Ecnec, and it was subsequently approved on 9 April.

According to the project proposal, two buildings – one with 13 floors and another with eight – will be constructed, and management will be outsourced to private companies under the district administration.

The proposal also mentions that various luxury materials for the circuit house will be sourced from the USA and the UK.

However, the Planning Commission raised several objections to the high-cost, lavish circuit house construction project.

Officials noted concerns about the project’s effectiveness, pointing out that government officials expected to stay at the circuit house would need to pay a significant amount to use the facility.

In 2022, Mamun-Al-Rashid was a member of the Planning Commission’s Physical Infrastructure Division.

He told TBS that there were objections regarding the high costs of the lavish project, which is why it was not presented to the Ecnec at that time.

Planning Commission officials say that in 2024, former planning minister Abdus Salam pressured the Physical Infrastructure Division to expedite the project for presentation at the Ecnec.

According to the officials, the Public Works Division was designated to implement the project under the Ministry of Public Administration. However, the ministry showed little interest in it. A vested group with political connections reportedly influenced the project’s approval process.

On 5 September, in a letter sent to the Physical Infrastructure Division by the Planning Division, it was revealed that the revised project proposal changed funds allocated for certain components of the project, deviating from the original DPP and the decisions made at the Ecnec meeting.

The letter said since the project was approved by the Ecnec, no changes can be made outside the scope of the meeting’s decision.

According to the project proposal, former prime minister Sheikh Hasina directed the initiation of the circuit house construction project in January 2019.

During the Ecnec meeting that approved the project, the public administration secretary questioned the project’s rationale for use by government officials, given its high costs. However, he suggested that the circuit house could be used for hosting foreign delegates.

What could be the project’s future

Despite the project’s approval, it is still awaiting a government order from the Ecnec wing of the Planning Commission. Without this order, the project cannot move forward.

Officials indicate that a decision will be made based on the opinions of relevant stakeholders on whether the government order should be issued for the project’s implementation.

They also note that projects initiated just before the fall of the Awami League government following the mass uprising on 5 August, and which have yet to begin, may be cancelled. Similarly, projects that are not immediately necessary or are deemed unimportant could also face cancellation.

The interim government is expected to review and make new decisions on many projects, including this one.

However, officials say the government will re-evaluate each project before making any final cancellation decisions.

Planning Adviser Wahiduddin Mahmud, in his first meeting with Planning Commission officials, stated that projects initiated for political or group interests will be cancelled.

A rail project with similar fate

Another project with a similar fate is the Akhaura-Sylhet Railway Line Conversion project. The proposal was presented at the Planning Commission’s PEC meeting on 12 July 2018.

At that time, the estimated cost for constructing 239km of railway track was Tk15,705 crore. The Planning Commission raised objections to this expenditure.

The project was to be funded through a G2G system, with the Chinese government expected to lend Tk10,267 crore, while the remaining Tk5,438 crore would come from the Bangladesh government.

The commission’s report noted that the project costs were unusually high. Subsequently, then Planning Minister AHM Mustafa Kamal returned the project without presenting it to the Ecnec.

A year later, the Bangladesh Railway submitted a revised project proposal, further increasing the project’s cost. Abdul Mannan was the Planning Minister at the time, and when the project was presented to the Ecnec, it was approved on 9 April 2019.

At that point, the estimated cost had risen to Tk16,104 crore. The project was awarded to the Chinese firm Construction Bridge Engineering Bureau Group. However, following instructions from the Prime Minister’s Office, the cost was reduced by Tk3,354 crore. Despite this, the Chinese contractor withdrew without implementing the project, leaving it with no progress to date.

Planning Commission officials say a Bangladeshi individual acted as a lobbyist for the Chinese contractor on this project, significantly influencing the project approval process.

Mamunul Islam, the project’s director, said although China was supposed to finance the project, its future is uncertain. There has been no progress in negotiations with China. The interim government will decide on the project’s future implementation.