About Bangladesh

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All the ongoing megaprojects can be divided into two main categories viz. i) Communication Infrastructure and ii) Power Projects.

Communication Infrastructure

Dhaka Metro Rail

With an aim to provide a safe, fast, affordable and modern means of transportation for the city dwellers, this urban public transport service promises to significantly reduce congestion in Dhaka and prevent environmental pollution.

Project Update: A total of five lines (MRT Lines 1, 2, 4, 5 and 6) have been proposed for the project. The Dhaka Urban Transport Network Development Survey (DHUTS 1) funded by the Japan International Cooperation Agency (JICA) assessed Dhaka’s STP and selected the first MRT Line-6 from Uttara, a northern suburb to Motijheel, for development. The design work on the project started in 2014. MRT Line-6 is the first line to be approved under the project and is estimated to cost USD 2.82 billion.^[4]

The government allocated BDT 7,212 crore in the budget of 2019-20 fiscal year for this megaproject. The country’s first-ever metro rail will be able to start operation on December 16, 2021, when the nation celebrates its golden jubilee of independence. Once completed, a total of 24 trains together will transfer 60,000 passengers every hour in both directions.^[4]

Entities Involved: It is a part of the 20-year long Strategic Transport Plan (STP) outlined by the Dhaka Transport Coordination Authority (DTCA), a governmental agency. It is being developed by the Dhaka Mass Transit Company (DMTC).

A joint venture by Marubeni and L&T was awarded the contract valued at USD 510 million by DMTC to provide electrical and mechanical rail systems for Line-6 in June, 2018.  Different aspects of the MRT Line-6 were subcontracted to many foreign companies as shown below:

• • Fastening solution: Pandrol, a rail infrastructure solutions provider.
  • Telecommunication: Himachal Futuristic Communications, a telecom infrastructure company based in India, was subcontracted to implement telecommunication systems.
  • Civil constructions: Sinohydro Corporation, an engineering and construction company based in China, and Italian-Thai Development Public Company, a construction company based in Thailand.

Shah Cement, Sarens, Systra, and Amir Group are the other contractors involved in the project.

Padma Multipurpose Bridge

The mega Padma Bridge project is a self-funded project of the Bangladesh government worth USD 3.65 billion.

Project Update: The bridge will connect the southern part of Bangladesh with the capital city as well as eastern part of the country. The bridge will have road and rail linkages in two separate decks. 71% of the overall work of the long-awaited Padma Bridge project has been completed while 81% of the work of the main bridge has been completed as of June, 2019. The 6.1 km double-deck bridge is expected to be open for traffic by 2021.^[5] The fourteenth span of the 6.15 km bridge has been installed, making 2,100 metres of the bridge visible.^[6]

Entities Involved: The Ministry of Road Transport and Bridges is overseeing the project. There are 11 different components of the project. Some of the components and respective contractors are as follows:

• Main bridge: China Major Bridge Engineering Co. Ltd.
• River Training Works: Sinohydro Corporation Limited, China
• Jinjira Approach Road: AML-HCM JV, a Joint Venture between Abdul Monem Limited, Bangladesh and HCM Engineering Sdn Bhd, Malaysia
• Mawa Approach Road: AML-HCM JV
• Service Area-2: Abdul Monem Ltd.
• Construction Supervision Consultant (CSC) Main Bridge and RTW: Korea Expressway Corporation
• CSC Approach Road and Service Area: Special Works Organization, Bangladesh Army in association with Bureau of Research, Testing and Consultation of BUET.

 

The project has been allocated BDT 5,370 crore in the budget for 2019-20 fiscal year.^[3] It is expected that the construction of the bridge will comprehensively transform the pace of economy in the region improving the lives of millions of people on both sides of the river.^[6]

Padma Rail Link

The Padma Multipurpose Bridge provides four lanes for road traffic on top deck and in bottom deck a Broad-gauge Single Railway Track. After this, construction of a rail link between Dhaka and Jashore earned prime importance for connection of Dhaka with the South-west part of the country.

Project Update: Total route length of the rail link is around 169 km which has been divided into following four 4 sections:

• Section-1: Dhaka – Gandaria (3 km)
• Section-2: Gandaria – Mawa (37 km)
• Section-3: Mawa – Bhanga Junction – Bhanga (42 km)
• Section-4: Bhanga Junction – Jessore (87 km)

According to Bangladesh Railways (BR) monthly progress report, the BDT 39,246.79 crore project witnessed 17.15 % physical progress till October, 2019.^[9]

The project period is set from January 1, 2016 to June 30, 2024. Chief sources of funds for the project include the Chinese Government.^[8] The budget for 2019-2020 fiscal year has allocated BDT 3,995 crore for the Padma Rail Link project.^[2]

Entities Involved: The Ministry of Railways is sponsoring this project with Bangladesh Railway as the executing agency. Bangladesh Army’s Construction Supervision Consultant Cell Core of Engineering is overseeing the project to help implement it in due time keeping international standards intact.

Payra Deep Sea Port

Initiating its operational activities in 2016, Payra Sea port is another mega project comprising a total of 19 components. Out of these, 13 components will be implemented under FDI and the remaining six under the government-to-government (G2G) deals.

Project Update: To implement the project, the government has signed an agreement with Belgian company Jan De Nul for an estimated USD 2 billion capital in dredging and maintenance dredging. Large-scale investment opportunities are open to implement the project components.

The port is being developed in three stages. Under the Long-Term Plan, by 2023 the port will have a 16 meter channel, all terminals will be constructed, and associated facilities – an EEZ, airport, port city, dockyard/shipyard, and eco-tourism facilities – will be in place.^[10]

Entities Involved: This project is part of the Bangladesh-China-India-Myanmar Economic Corridor, which was initially put forth under China’s Belt and Road Initiative (BRI). India has not signed on to the BRI but has supported and financed the development of Payra Port.^[7]

Hazrat Shahjalal International Airport Expansion

The Hazrat Shahjalal International Airport in Dhaka, Bangladesh, is being expanded in order to address the continued increase in domestic and international passengers and cargo passing through the facility. The airport is anticipated to witness passenger traffic of approximately 12 million by August 2022 and up to 22 million by 2035. The expansion project is set to more than double the airport’s annual passenger handling capacity from the current eight million to approximately 20 million, and the cargo capacity from 200,000 tons to 500,000 tons.^[11] It is also expected to improve air transportation, as well as economic and social development in Bangladesh.

Project Update: The ground-breaking ceremony of the third passenger terminal building and other infrastructure was held in December, 2019 and is scheduled for completion in 2022. The Government of the People’s Republic of Bangladesh signed an agreement with the Japan International Cooperation Agency (JICA) in June 2017 to provide an Official Development Assistance (ODA) loan of up to USD 689 million for the expansion. Civil Aviation Authority, Bangladesh (CAAB) awarded a five-year contract worth USD 42.1 million to a consortium led by Japanese engineering and consulting company Nippon Koei for the project in August 2017.^[10]

Entities Involved: The project is being executed by the Civil Aviation Authority of Bangladesh (CAAB) and the Ministry of Civil Aviation and Tourism. The consortium implementing the project comprises Singapore-based CPG Consultants, Bangladesh-based Development Design Consultants, and Japanese engineering consulting firm Oriental Consultant Global.

Karnaphuli Underwater Tunnel

Chinese President Xi Jinping and Bangladesh Prime Minister Sheikh Hasina laid the foundation of Karnaphuli Underwater Tunnel worth USD 2.49 billion in 2016. The construction of the proposed tunnel would improve the connectivity between Chattogram and Cox’s Bazar and impact positively on the operation of Chattogram port.

Project Update: The excavation beneath the tunnel was inaugurated by the Prime Minister in February, 2019. The total length of the tunnel will be around 9.1 km, including 3.4 km under the Karnaphuli River, with a 4.89 km approach road alongside 740 meter of bridges, linking the main port city and western side of the Karnaphuli to the industrial zones on the eastern side of the river. For the project, a tunnel boring machine (TBM) acquired from China has been deployed at the construction site. This machine is being used as it can dig through soil, sand and even rock layers.^[12]

Entities Involved: A contract for building the tunnel has been awarded to the China Communication Construction Company. The project started in December, 2017 and is expected to conclude by 2022.

The construction of the Karnaphuli Tunnel is expected to bolster industrial development, enhance tourism, and expand trade and commerce near the project area, creating employment for thousands of people and boost exports.^[7]

Dhaka Elevated Expressway

The transport sector of Dhaka needs to expand as the population of the city is increasing rapidly. In order to minimize the acute traffic congestion, Bangladesh Bridge Authority (Government of Bangladesh) is working to deliver a project for the construction of approximately 23 km of Elevated Expressway in the northern part of Dhaka City on a Public Private Partnership (PPP) basis.

The 46.73km Dhaka Elevated Expressway will link the Shahjalal International Airport and the Dhaka-Chattroram Highway extending the road connection to Chattogram’s Kutubkhali via Kuril, Banani, Mohakhali, Tejgaon, Moghbazar, Kamalapur, Sayedabad, and Jatrabari in the capital.

The Ministry of Road Transport and Bridges is implementing the project through Bangladesh Bridge Authority.

Project Update:  The project has been split into three parts for implementation.

• Section-1: Shahjalal International Airport to Banani (7.45 kilometres)
• Section-2: Banani to Moghbazar (5.85 kilometres)
• Section-3: Moghbazar to Kutubkhali (6.43 kilometres)

 

Work on the BDT 90 billion project began in 2011 but hit several snags since then, with only 22% of the construction work being completed in 8 years. Almost 50% of work on the first section of expressway has been completed.^[13] The first phase of the project will be completed by September, 2020. Land acquisition for the second phase is complete. Different structures along the stretch from Banani to Moghbazar have been removed. Construction of at least 1,333 piles, 307 pile caps, 93 cross-beams, 201 completed columns and 131 partially completed columns, 186 eye-guarder and 14 spans are completed.

Entities Involved: The Bridges Department signed a contract with the Ital-Thai Development Company to construct the Dhaka Elevated Expressway on Jan 19, 2011. The project had stalled for two years due to complications with land acquisition. The contract had to be renewed with the construction company in 2013 as the project cost soared due to inflation and design changes. Ital-Thai now owns 51% of the project while China Shengdong International Economic and Technical Company Group Limited owns 35% and Sino Hydro 14%, respectively.

Tolls at different rates for different types of vehicles will be charged at the expressway. Cars and microbuses will be charged BDT 125 to travel from the airport to Kutubkhali. The minimum toll for use of the expressway will be BDT 100. Buses will pay BDT 200-250 while trucks will be charged between BDT 400 and BDT 500.

Chattogram-Cox’s Bazar Railway Link 

A new rail link connecting the port city of Chattogram and the tourism hub Cox’s Bazar is expected to open in 2023 aiming to help promote trade, investment and tourism in Bangladesh.

Project Update: The project is planned to be implemented in two phases:

• Phase 1: The first phase of the project will include a single-track rail line approximately 102 km in length. It will pass through eight sub-districts (upazilas) including the Chandanaish, Satkania and Lohagara sub-divisions in Chittagong district and the Chakaria, Cox’s Bazar Sadar, Ramu and Ukhia sub-divisions in Cox’s Bazar district. The line will begin at Dohazari village and continue southwards to Cox’s Bazar.
• Phase 2: During this phase, the rail line will be extended to the Myanmar border, as well as a planned deep-sea port on Matarbari Island.

Entities Involved: Max Group has been awarded the single largest contract of Bangladesh Railway to construct the Dual Gauge Single Railway Line from Dohazari to Cox’s bazaar via Ramu. The company will also construct the iconic Cox’s Bazar Railway Station under the ADB funded contract.

The estimated investment for the project is USD 2.012 billion, USD 512 million of which will be provided by the Bangladesh government.^[14]

Dhaka-Chattogram Express Railway

For the first time in the history of Bangladesh, high-speed railway is going to be introduced to improve the quality of life and to facilitate the country’s economic development. The Dhaka-Chattogram High-Speed Railway is expected to be with a route length of 230 km (approximately) with six (06) stations: Dhaka, Narayanganj, Cumilla, Feni, Pahartali and Chattogram. The present route goes through Tongi-Bhairab Bazar-Brahmanbaria-Cumilla while the new route will go following Dhaka-Cumilla/Laksam-Chattogram route. It will be operated through electric traction and the design speed will be 300 km/h.

Project Update: In order to conduct the feasibility study for that, a project titled “Feasibility Study and Detail Design for Construction of Dhaka-Chattagram Via Cumilla/Laksam High-Speed Railway Project” was approved by the Planning Minister on 18th March, 2017 at a cost of BDT 11.5929 crore under GOB finance.^[15] The proposed feasibility study will determine the viability of construction of high-speed railway between Dhaka-Chattogram. If the project is found economically & financially viable, an investment project would be taken in hand based on the detailed design. Initial construction to prepare the detailed design and a feasibility study for the project is ongoing. Overall progress of the project is at 21% as of February, 2019. ^[17]

Entities Involved: The contract for the project has been signed between Bangladesh Railway, China Railway Design Corporation, China and Mazumder Enterprise, Bangladesh consortium at a cost of BDT 102.1 crore funded by the government.^[16]

Power Projects

Rooppur Nuclear Power Plant

Project Update: A USD 11.38 billion financing agreement has been signed with Russia for the construction of 2,400 megawatt Rooppur nuclear power project. The first and second agreements of the project between Bangladesh and Russia as well as 4 independent agreements between the implementing agencies of these two countries has been fully completed leading to the inauguration of the construction work of the Power Unit 1 in November 2017 and Unit 2 in July 2018. The agreements covered feasibility evaluation, environmental impact assessment, engineering survey, technical documentation and working documentation. The commissioning of unit 1 is planned in 2022 while the commissioning of Unit 2 is planned in 2023.^[7] Having begun in 2016, the project is scheduled to be completed within 2025. Although the project saw slow progress at the preliminary stage, it has made significant progress in the last fiscal year. The government has proposed the highest allocation of BDT 14,980 crore for the country’s first nuclear power plant at Rooppur.^[2]

Entities Involved: 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. JSC Atomstroyexport, a subsidiary of Rosatom, has been appointed as a general contractor by BAEC for the project. The contractual scope includes the supply of equipment and materials, and nuclear fuel, as well as providing training to the project management team.

A USD 79.3 million contract was awarded to Inter RAO Engineering for pit excavation of the main buildings, and construction and erection of facilities for the plant. Goldenberg Group of Companies was awarded the civil construction and pipe laying works contract. Orgenergostroy carried out a comprehensive engineering survey for the plant and constructed the pilot bases and residential camps for the contractors.^[22]

Matarbari Power Plant

Matarbari coal-fired power plant is being developed in Maheshkhali in the Cox’s Bazar district of Bangladesh.

Project Update: The Matarbari power plant was proposed in September, 2011 and granted environmental approval in October, 2013. Ground-breaking ceremony for the project took place in January, 2018. As of May 2019, 25% of the project has been completed. The BDT 35,984 crore project is scheduled to be completed by 2023.^[5]

Entities Involved: Coal Power Generation Company Bangladesh (CPGCBL), a state-owned enterprise of Bangladesh, is developing the 1.2 GW project with an estimated investment of USD 4.5 billion. Some key contractors involved in the project are:

• JICA Study Team and Tokyo Electric Power Services prepared the environmental impact study for the power plant.
• A consortium of Sumitomo, Toshiba and IHI was awarded the engineering, procurement and construction contract for the project, in August 2017.
• Sumitomo subcontracted Toshiba Plant Systems and Services for constructing the port and providing other plant equipment and associated civil work, while Penta-Ocean Construction was awarded a USD 1.4 billion-worth subcontract for the construction works related to Matarbari port.
• Toshiba will supply the steam turbines and generators for the power plant, while IHI will provide the boilers.
• Sumitomo awarded the civil engineering contract worth $840m to Posco E&C, a company based in Korea.
• Roads and Highways Department (RHD), Bangladesh contracted DevCon for the detailed design and supervision of access road construction for the Matarbari coal-fired power plant.^[24]

The plant is expected to account for 10% of the total generation capacity of Bangladesh.^[18] The expected requirement of 3.73 million tonnes of coal a year will be met by imported coal from Indonesia, Australia and South Africa through the Matarbari Port.

Moheshkhali LNG Terminal

Moheshkhali Floating LNG (MLNG) is a completed megaproject with an integral component to ensuring the vitality of Bangladesh’s energy future. With up to 500 million standard cubic feet of gas per day (MMscf/d) of regasification capacity, Moheshkhali Floating LNG provides much-needed clean energy to promote power reliability, and industrial development in a sustainable manner.^[19]

Entities Involved: Excelerate Energy, Petrobangla, and International Finance Corporation (IFC) collaborated on this project. International Finance Corporation (IFC) is acting as the lead arranger for the project’s financing. The organisation arranged a debt financing package of USD 125.7 million, including a USD 32.8 million loan from its own account. The remaining loan is being provided by a group of banks including CDC Group, Development Bank of Germany (DEG), Japan International Cooperation Agency (JICA) and the Dutch-led Entrepreneurial Development Bank (FMO).^[19]

Excelerate Energy and IFC had previously signed an equity agreement for the project. IFC has contributed approximately USD 10.8m in equity under the agreement, while Excelerate contributed a total of USD 43.1 million. Excelerate Energy developed and will operate the terminal for 15 years, after which the company will transfer ownership to Petrobangla allowing for continued realization of its benefits.

Rampal Coal Power Project

The Rampal Power Station is a 1320 megawatt coal-fired power station at Rampal Upazila of Bagerhat District in Khulna, Bangladesh. The project is set on an area of over 1834 acres of land and is situated 14 kilometres north of the world’s largest mangrove forest, the Sundarbans, which is a UNESCO world heritage site. It will be the largest power plant of Bangladesh.

Project Update: As of March of 2019, the project achieved 31.69% progress with a spending of BDT 38.24 billion (24% of the total budget BDT 160 billion).^[20] The first unit of the project is expected to come into commission in February 2021 and the second one in August of the same year.

Entities Involved: The power plant is being set up by BIFPCL (Bangladesh India Friendship Power Company Limited) which is a joint venture between India’s state owned National Thermal Power Corporation (NTPC) and Bangladesh’s Bangladesh Power Development Board (BPDB).

Environmentalists, both local and international, raised their voice against implementation of the project because of its proximity to the Sundarbans. According to them, the project will hamper ecological imbalance at the Sundarbans. The government, however, said that they  would fulfil the conditions set by UNESCO for implementing the Rampal power plant project near the Sundarbans.^[21]

Drawbacks and Challenges

• There have been delays in completion for multiple megaprojects and deadlines have been extended multiple times. Each of these delays and exceeding budgets are major problems for the country and defeat the purpose of a megaproject in the first place.
• The red-tape culture has a debilitating effect on decision-making and implementation. Such procedural delays make it harder to complete the megaprojects in time.
• Delay in some projects, especially the urban transport projects, are causing unexpected disruption in daily lives for which the project cost and productivity both are increasing.
• Inefficiency in planning well ahead and lack of experience in dealing with such large scale projects combined with lack of transparency and political pressure in selecting the implementing agency are some of the reasons for which most of the megaprojects are facing delays with massive increases in cost.
• Diversifying the fuel mix is a major challenge. Sole dependence on depleting natural gas can exacerbate the gas famine situation in Bangladesh.
• The current global fuel market is volatile. The dependence of Bangladesh on imported liquid fuel-based contingency plants has grown above 40% needs to change and sustainable alternatives should be chosen.^[24]
• The coal import programs have yet to bring intended results. All mega coal-fired power projects are running 3-4 years behind schedule. Transportation is an issue here as only  Matarbari South is available for reliable coal port development.
• Most of the current mega projects are being constructed by foreign firms and by their technology. Despite the arrangements, successful training of our own manpower has not been possible due to lack of academic competence and lack of experience to understand advanced technology.
• The country’s macro-economy now depends on public investment for the megaprojects. Such economic management has weak relation to private investment, revenue mobilisation, monetary policy and even trade policy. Private investment has stagnated at around 23% for years although the economy is expanding fast.^[25] Instances of money plundering, capital flight and tax evasion have increased.

References

• 1. Is the boom in megaprojects sustainable? – World Economic Forum
• 2. 14 mega projects get BDT 45,140 crore – Dhaka Tribune
• 3. 14 mega projects dominate budget – Bangladesh Post
• 4. Dhaka Metro Mass Rapid Transit System, Bangladesh – Railway Technology
• 5. Top 10 Mega Projects in Bangladesh: Five pick up pace, finally – The Daily Star
• 6. Padma Bridge to open by 2021: Obaidul Quader – The Daily Star
• 7. Mega projects of Bangladesh and prospective impacts in transforming the economy – Saudi Gazette
• 8. Padma Bridge Rail Link Project – A dream project under Ministry of Railway – Padma Rail Link Project Website
• 9. Padma Bridge Rail Link: Mawa-Bhanga route to open in June 2021 – The Daily Star
• 10. Payra Deep Sea Port (Construction) – Reconnecting Asia
• 11. Hazrat Shahjalal International Airport Expansion, Dhaka – Airport Technology
• 12. Bangladesh to commence excavation work for $1.2bn Karnaphuli tunnel
• 13. First phase of Dhaka Elevated Expressway to open to traffic next year –
• 14. Chittagong-Cox’s Bazar Railway Line – Railway Technology
• 15. Country’s first high-speed railway – The Guardian
• 16. Contract signed for feasibility study of high speed train – New Age
• 17. Dhaka-Chittagong high-speed railway in the works –  Dhaka Tribune
• 18. Matarbari coal-fired power plant, Cox Bazaar, Bangladesh – NS Energy
• 19. Moheshkhali Floating LNG Terminal – Offshore Technology
• 20. Rampal power plant attains 32pc physical progress | 2019-03-19 – Daily Sun
• 21. Rampal Power Plant: Govt to comply with Unesco conditions – The Daily Star
• 22. Rooppur Nuclear Power Plant, Ishwardi – Power technology
• 23. Padma Bridge Rail Link Project: Land acquisition could drive up cost – The Daily Star
• 24. Mega Projects, Major Issues – Out Time
• 25. Economy thriving on ‘mega projects’ – The Financial Express