Experts call for mandatory local stake in strategic infrastructure projects
Speakers at the event further noted that the country should adopt policies that ensure stronger local ownership and participation in key infrastructure projects.
Economists, policy experts and civil society representatives have urged the government to prioritise domestic investors over foreign entities in strategic sectors such as ports, airports and energy.
While acknowledging the importance of foreign direct investment to Bangladesh's economic growth, they warned that increasing foreign control over critical infrastructure could pose long-term risks to national security and economic sovereignty.
The observations came at a policy roundtable titled "Prioritising Domestic Investment in Strategic Assets", organised by the Center for Strategic Research at a hotel in Dhaka today (19 May).
Keep updated, follow The Business Standard's Google news channel
Speakers at the event further noted that the country should adopt policies that ensure stronger local ownership and participation in key infrastructure projects.
Presenting the keynote paper, Saqeeb Anwar, executive director of Center for Strategic Research, said Bangladesh was witnessing a troubling trend of local exclusion in strategic infrastructure projects.
Citing the Patenga Container Terminal as an example, he said the project was often presented as an FDI success story despite much of the financing coming from local and regional debt rather than foreign equity.
"While PCT is celebrated as an FDI success, the reality is that 58.8% of the $170 million investment came from local and regional debt, not foreign equity," he said.
National interest will receive the highest priority. We are moving towards a performance-based evaluation system for the bureaucracy to ensure projects are implemented efficiently and without inflated budgets.
Saqeeb also claimed that the New Mooring Container Terminal, operated by local firm Chittagong Dry Dock Limited under the Bangladesh Navy, achieved 46.66% higher productivity than its foreign-backed predecessor.
He further questioned the transparency of several government-to-government agreements, alleging that the contract for the Laldia Container Terminal was finalised in just 13 days, bypassing the 62-day timeline recommended by the International Finance Corporation.
Former director of Bangladesh Small and Cottage Industries Corporation Abu Taher Khan criticised the existing industrial policy for failing to distinguish adequately between manufacturing and service sectors.
"Since 1991, manufacturing has been neglected in favour of the service sector due to pressure from international donors. We must amend the industrial policy to provide distinct incentives for manufacturing if we want sustainable growth," he said.
He also proposed making the state-owned Petrobangla a mandatory partner in all production-sharing contracts in the oil and gas sector.
Shushashoner Jonno Nagorik (SHUJAN) Secretary Badiul Alam Majumdar highlighted the potential for reverse brain drain, saying many skilled Bangladeshis living abroad were interested in investing in the country but remained discouraged by the lack of a supportive investment environment.
He also questioned the distinction between foreign and domestic companies in Bangladesh, arguing that some large conglomerates, including S Alam Group and Summit Group, strategically shifted identities depending on which status offered greater policy benefits.
Speaking as chief guest, Zonayed Saki, state minister for planning, said the government's current policy direction was centred on a "Bangladesh First" approach.
"National interest will receive the highest priority. We are moving towards a performance-based evaluation system for the bureaucracy to ensure projects are implemented efficiently and without inflated budgets," he said.
The state minister acknowledged weaknesses in the country's public investment management system, including integration gaps and cost overruns, and said the government was working on reforms to address those challenges.
The roundtable ended with a series of policy recommendations from Center for Strategic Research, including mandatory joint ventures with at least 51% local ownership in strategic assets, compulsory technology transfer clauses in foreign investment agreements, and open competitive tendering instead of no-tender government-to-government deals.
The Center for Strategic Research also warned that the "lopsided" power agreement with Adani Group, under which Bangladesh allegedly pays higher prices for electricity and coal imports, should serve as a cautionary example against excessive dependence on foreign entities.
