Budget 2016-17: One-fourth of ADP fund to go to 10 mega projects

The government is set to reinvigorate mega infrastructure and power projects through the upcoming budget, as finance minister AMA Muhith in his budget speech is likely to propose above Tk 28,000 crore against fast track projects for 2016-17 financial year.
The likely allocation is 22.70 per cent of the total annual development programme outlay of Tk 1,23,345 crore, a top finance ministry official said.
The budget for 2016-2017 fiscal year, slated to be unveiled on Thursday at Jatiya Sangsad, will include a special booklet on 10 fast track projects with a roadmap on their timely implementation and financing modalities, a top finance ministry official said.
The projects, excluding Sonadia and Payra deep sea ports, involving nearly $30 billion, are to be implemented between December 2018 and 2022, the official added.
Nearly $24 billion or 80 per cent of the total required funds will be lent by bilateral and multilateral lenders as non-concessional loan, a source at the economic relations division said.
It could not be known if the resource for the mega projects would be channeled from domestic or external sources.
The projects in the priority list of the government were included over the last two years, in phases, with the last two – Padma Bridge Rail Link project and construction of single line dual gauge track from Dohazari-Ramu-Cox’s Bazar and Ramu to Ghundum near Myanmar border –being included in March.
A number of finance officials involved in the budge preparation said the special booklet on fast track projects will give a breakdown of the allocation of Tk 28,000 crore against each project.
‘Mentioning the projects in the budget speech, with a hefty allocation, demonstrate the commitment of the government on their timely implementation, as the projects have direct link to growth and development,’ another senior official in the finance ministry told New Age.
The projects in the list are Padma multi-purpose Bridge, Metro Rail, Rooppur Nuclear Project, LNG Terminal, Rampal coal-fired power plant project, Matarbari Thermal Power Plant, Payra Sea Port, Sonadia Deep Sea Port, Padma Bridge Rail Link project and construction of single line dual gauge track from Dohazari-Ramu-Cox’s Bazar and Ramu to Ghundum near Myanmar border.
Among the projects, only the Padma bridge project as of March used up the highest 31 per cent of its allocation.
As of March, the progress in the construction work of the main bridge was 21 percent, while that of the river training was 18 percent; the financial progress of the project was 34 percent, and the overall progress was 31 percent, according to the latest report of the planning ministry.
According to a report of the planning ministry, around Tk 340 crore was spent till March this year on Matarbari 2x 600 MW ultra-super critical coal fired power plant project with cumulative financial progress of only one per cent out of an overall project cost of Tk 35,984.46 crore.
‘The remaining eight projects have no tangible progress so far, some being in the process of agreement signing with lenders, while others will endure feasibility studies and memos with China and Japan,’ another ERD official, who is assigned to track the fast track projects, said.