Debapriya Urges Govt to Reconsider Mega Projects
In a recent virtual dialogue on the Top 20 Mega Projects in Bangladesh, renowned economist Debapriya Bhattacharya has raised critical concerns about the country’s economic stability. With the government yet to kick off the physical work on several mega projects, Debapriya emphasizes the need to reassess their importance in light of the challenging economic climate. Given the looming debt situation and repayment obligations set to begin in 2024-26, Debapriya urges the government to exercise caution.
The Cost of Mega Projects
Debapriya’s research reveals that the total implementation cost of the 20 mega projects amounts to Tk 556,955.74 crore, with over 50 percent of the financing expected from foreign sources. These projects span various sectors, including transportation, communication, electricity, fuel, education, health, and housing. However, Debapriya notes that the heavy investment in mega projects has come at the expense of critical social sectors like health and education.
Loan and Repayment Challenges
The implementation of these mega projects involves a complex web of 40 loan packages and five grants. While the terms of the loans for the top 20 projects seem favorable with a significant portion in grants and concessional loans, the looming repayment obligations pose a challenge. With $32.26 billion due for repayment by 2024, the government must carefully strategize its repayment plan to avoid further economic strain.
A Call for Transparency and Accountability
Debapriya’s call for close monitoring and a review of projects plagued by corruption highlights the need for transparency and accountability in the execution of these mega projects. The lack of transparency, delays in implementation, and mismanagement have already begun to impact the country’s foreign reserves and economic stability. As the government navigates these challenges, Debapriya stresses the importance of fiscal responsibility and prudent financial management to safeguard Bangladesh’s economic future.
By shedding light on the potential risks posed by these mega projects, Debapriya’s insights serve as a critical wake-up call for the government and stakeholders involved. As Bangladesh grapples with economic uncertainties, the decision to reassess the importance of these projects and prioritize fiscal sustainability will be crucial in steering the country towards long-term prosperity and stability.