No penalty for project revisions; costs, deadlines increase without objections

Despite rules for penalties and accountability, the Planning Commission is approving project revisions without imposing any punishment for delays. As a result, implementing agencies are not held responsible, and projects are being revised without objections. Even if budgets aren't increased, deadlines are extended, reducing motivation for timely completion.

Economists say that the provision of 'extending time without increasing cost' is often misused as a tactic to delay ADP-funded projects for years. In reality, extending a project's duration almost always leads to higher costs. This is because running a development project requires spending a significant amount on salaries and various allowances for officials and staff involved. Typically, beyond regular salaries, a project includes around 11 types of additional allowances under revenue expenditure.

This issue first came to light in 2023 when, due to the economic downturn, the government decided to release funds only for priority and first-class projects as part of an austerity drive. The problem worsened after the government’s fall on August 5. While there was minimal accountability before, now even that is not being followed.

Several officials from the Planning Commission told Views Bangladesh that there are provisions to bring implementing agencies under accountability and impose penalties if necessary. After proper evaluation, only then should project duration or budget be increased as part of a justified revision. However, these rules are either not being followed or not properly enforced. Instead, projects are often revised and extended without any thorough assessment. Moreover, such revisions are being approved by the Executive Committee of the National Economic Council (ECNEC) without any objections. In short, penalties are being replaced with rewards.

A source from the Planning Commission has revealed that in the first seven months of the current fiscal year, the Ministry of Planning received proposals to extend the duration of 142 development projects. Of these, the Implementation Monitoring and Evaluation Division (IMED) recommended extensions for 136 projects. Meanwhile, according to commission officials, various ministries and departments submitted over 50 new extension proposals to the Planning Commission and IMED last month alone, with six of them currently under legal review.

According to the Implementation Monitoring and Evaluation Division (IMED) of the Planning Ministry, in the first seven months of the current 2024–25 fiscal year, the ministry received proposals to extend the duration of 142 projects. Of these, extensions for 136 projects were recommended. Over the past four and a half years, this number has reached 1,720 projects.

According to IMED data, the highest number of project extensions occurred in the 2022–23 fiscal year. Data analysis shows that 345 projects were extended in 2023–24, while in 2022–23, due to failure to complete on time, extensions were recommended for 354 projects.

In line with this trend, following the National Economic Council (NEC) meeting on March 3, Planning Adviser Dr Wahiduddin Mahmud told journalists that many development projects have remained inactive for years. Although these projects continue to receive funding, actual work is not being done. He added that irregularities and corruption are more frequent in these idle or nearly defunct projects. According to him, the concerned ministries are also not providing proper lists of such stagnant projects, likely to hide the extent of corruption.

Meanwhile, during a press briefing after the NEC meeting on March 23, Planning Adviser Dr Wahiduddin Mahmud referred to the Payra Seaport's first terminal and associated facilities (second revised) project as a blight on the country's economy. He said that this project would not be a proper naval port, let alone a seaport. Despite these concerns, the project was approved by the NEC.

The four-year project, which began in January 2019, initially had a cost estimate of Tk3,982cr 10 lakh. In 2023, the cost was increased by Tk534cr, bringing the total to Tk4,516cr 75 lakh. In addition to the cost increase, the project's duration has been extended until June 2025.

Another project, the Sayedabad Water Treatment Plant project, was also approved in the recent ECNEC meeting. The cost of this project has increased fourfold, while the progress of work over the past ten years has only reached 9%.

The project to reduce the use of underground water and increase the use of river water began in 2015. The original approved cost of the project was Tk4,597 cr. However, despite minimal progress, the cost of the project has increased fourfold. According to the second revised proposal, the cost is now projected to be Tk16,000cr. According to IMED sources from the Planning Commission, only 9% of the work has been completed as of February 2025, with a financial progress of just 2.24%.

Meanwhile, the Ministry of Water Resources has recently submitted the 'Kopotakkho River Waterlogging Removal Project' (Phase 2) to the Planning Commission for a deadline extension. The project is being implemented by the Bangladesh Water Development Board (BWDB). The project was approved in the National Economic Council (ECNEC) meeting in August 2020. The original project duration was from July 2020 to June 2024, but it has now been extended until June 2025. The total cost of the four-year project is Tk531cr 7 lakh Taka, funded entirely by the government.

A senior official of the Planning Commission, speaking on condition of anonymity, said that many projects only propose time extensions without increasing costs. Even if the work is completed within the extended time, the cost often ends up doubling. This happens because the cost estimates for components are made at the time of proposal, but over time, prices increase. The worst aspect of this process is that the penalty provision for not completing the project on time is not being applied. Instead of facing penalties, these projects seem to be getting a "gift" for their delay.

On the other hand, the private research organization Institute for Inclusive Finance and Development (InM) believes that if the project duration is intentionally extended or there are delays in implementation, the concerned organization or project director (PD) should be brought under strict punishment.

The executive director of the organization, Dr Mustafa K Mujeri, stated that extending project duration or increasing costs has become a culture. Although project directors (PDs) or concerned organizations are supposed to be held accountable or fined, this is not being followed. In this context, he urged the Planning Commission to take a strict stance, emphasizing that no leniency should be given. He further mentioned that if there is intentional delay in project implementation, punitive measures must be enforced.