Decline in pvt, public investment natural after such a major political change: Planning Advisor

Stressing that the previous regime had undertaken less important projects, he said: “We approve projects based on context.”

TBS report

October 7, 2024, at 18:25

Last modified: October 7, 2024, 19:13

Chief Advisor prof. Muhammad Yunus chairs the 3rd Ecnec meeting held at the Office of the Chief Counsel on October 7, 2024. Photo: PID

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Chief Advisor prof. Muhammad Yunus chairs the 3rd Ecnec meeting held at the Office of the Chief Counsel on October 7, 2024. Photo: PID

Due to the “traceless” activities of many bank owners and industrialists and the decline in government spending on projects implementing the political goals of the previous government, the state of investment in the country is not good, planning advisor Wahid Uddin Mahmud said today (October 7): this could have been added to expect after a major political change.

Speaking to reporters after a meeting of the Executive Committee of the National Economic Council (ECNEC), he said the impact of this decline in investment in both the private and public sectors could be felt even in villages where people say their companies are not performing well.

Stressing that the previous regime had undertaken less important projects, he said: “We approve projects based on context.”

Referring to the slowdown in investment, he said: “Many business owners and banks have no footprint. Loan disbursement from banks to the private sector has also slowed down. The private sector is the driving force of the economy and its investments are hampered… after such a crisis, a big political change is normal, it is normal that this will happen, he said.

On public sector investment, he said all ongoing and proposed projects of the government would be scrutinized.

“Many projects were undertaken for political reasons. Many projects were not implemented properly or planning was incorrect. For example, a road was built in a certain place for the convenience of an influential person, instead of thinking about the direction of traffic. This needs to be sorted out. Existing designs can be reviewed.

“Unnecessary projects or projects of a political nature, as far as projects are concerned, are not allocated funds if they are self-sustaining.”

Tk11,560cr rail-road bridge construction project at Kalurghat approved

The Ecnec meeting today also approved the design of a new ₹11,560.77-crore rail-road bridge over the Karnaphuli River at Kalurghat alongside the existing old bridge to ensure smooth and uninterrupted communication system between Chattogram and Cox’s Bazar.

The approval came during the 3rd Ecnec meeting of the current financial year and the 2nd meeting of the caretaker government, held at the Office of the Chief Adviser in the capital under the chairmanship of the Chief Adviser, Prof. Dr. Muhammad Yunus.

Planning advisor Wahiduddin said a total of four projects were approved at the meeting with a total estimated cost of Tk 24,412.94 crore.

“Of the total project cost, Tk 7,746.66 crore will come from Bangladesh government’s share, Tk 16,012.33 crore from project assistance and Tk 653.95 crore from the concerned organization’s own funds.

“Of the four approved designs, two are new and the remaining two are revised designs,” the advisor said.

Moreover, the meeting approved the extension of the schedule of seven projects without increasing their costs.

The Ministry of Railways will implement the rail-road bridge project with a completion date of December 2030.

Of the total project cost of Tk 11,560.77 crore, Tk 4,435.62 crore will come from the Government of Bangladesh and the rest Tk 7,125.15 crore will come from the Economic Development Cooperation Fund (EDCF) and the Economic Development Promotion Facility (EDPF) . , Korea.

The planning advisor said that the new design was being considered as the existing bridge at Kalurghat is old and dilapidated.

Besides, he said the government also wants to develop Cox’s Bazar into a much improved tourist destination next to the Matarbari coal-fired power plant and the adjacent economic zone needs better connectivity. Therefore, the government decided that a new project in this regard should be undertaken, he added.

Regarding the approval of the Matarbari Port Development project, the second revised one with an additional cost of Tk 6,573.96 crore, the advisor said it is a big project and also has geopolitical aspects.

He said there has been a long-standing dispute between China and India over the financing of this port.

The planning advisor said that necessary work is yet to start at Matarbari port and roads will be constructed in connection with the development of the port.

The other two projects approved at the meeting were SASEC Road Connectivity, Project-2: Elenga-Hatikamrul-Rangpur Upgrading Four Lanes of the Highway, the second improved at an additional cost of Tk 376.99 crore, and Resilient Urban and Territorial Development Project (REUTDP) with Tk5,901 .22 crores.