The projects we build and the system that breaks them

The driver of economic change has always been infrastructure. In a fast-developing economy like Bangladesh, the expansion of roads, bridges and transport systems is necessary to continue industrial growth, invite investment and enhance national competitiveness.

However, an old issue remains. Most of the projects undertaken by the government take considerably more time to finish. The costs get higher than initially estimated. Delays, cost overruns and recurrent deadline extensions have become the new normal. 

These are not merely administrative inefficiencies. They reflect deeper institutional weakness with significant economic consequences. In the ongoing fiscal year (FY 2025–26), around 21% of projects were implemented in the first 7 months (July–January), 17.5% in the first 6 months, and only 8.3% in the first 4 months, indicating a declining implementation trend.

Bangladesh and India: A comparison

The challenges faced by Bangladesh are not unique. In India, infrastructure development was once severely affected by delays in land acquisition, regulatory approvals and fragmented administrative responsibilities. 

Over the past decade, India strengthened project monitoring mechanisms and introduced digital platforms that allow central authorities to track major projects in real time. As a result, highway construction under India's national infrastructure programmes now progresses much faster, with costs typically ranging between $6-8 million per kilometre depending on terrain and land acquisition complexity. 

On the contrary, in Bangladesh, costs are often two to three times higher. There are several factors that contribute to this. These include overestimation in the Bill of Quantities, low bid competition in some projects, time overruns leading to contractor claims, and the inclusion of administrative and non-core costs.  

The challenge, therefore, lies less in engineering and more in the institutional systems governing project preparation and management.

The rising cost of delay

Bangladesh's major infrastructure projects illustrate how delays translate into financial escalation. When first approved in 2007, the Padma Bridge project was estimated to cost about Tk10,161 crore. Over time, design changes, river training works and implementation delays pushed the final cost to approximately Tk30,193 crore, nearly three times the original estimate. 

Similarly, the country's first metro rail system, MRT Line-6, saw its cost rise from about Tk21,985 crore to roughly Tk33,472 crore during implementation. These are not accounting adjustments. In a rapidly growing economy, time itself is an economic resource and delays in project execution translate directly into lost development opportunities.

Projects that burn money rather than solve problems

The framing of development projects in the Annual Development Programme (ADP) is one of the deep-rooted causes of such recurrent issues. In practice, some projects function more as mechanisms for budget utilisation than as solutions to real problems.

Government organisations are usually under pressure to spend the amount of funds allocated during the financial year. Consequently, projects can deliver high ratings of budget usage and still fail to produce the functional results that they warranted their preliminary acceptance.

Divided ownership and low accountability

Institutional fragmentation significantly complicates project implementation. Large infrastructure projects typically involve multiple ministries, divisions and implementing agencies. While decision-making authority is dispersed across different administrative levels, accountability rarely rests clearly with a single institution.

Project Directors responsible for implementation are often transferred before key milestones are achieved. Such turnover disrupts continuity and weakens ownership. 

The absence of project leadership at the design phase

Another critical weakness is the absence of the core project management team during the early stages of project preparation. 

In Bangladesh, Project Directors (PDs), Deputy Project Directors (DPDs) and procurement personnel are usually appointed only after a project has been approved. By that time, feasibility studies, cost estimates and procurement frameworks have already been finalised. This disconnect between project design and project implementation creates serious operational challenges. 

Moreover, many PDs are not systematically trained in project management, procurement systems or contract administration. In effect, the system expects them to drive without first ensuring that they possess the necessary driving skills.

Revamping the architecture of project delivery

Strengthen project preparation

Project approval should rely on rigorous feasibility studies supported by credible baseline data and realistic demand projections.

Ensure leadership stability

Project Directors should remain in their positions throughout the lifecycle of major projects to ensure continuity and accountability. 

Integrate the project management team early

PDs, DPDs and procurement specialists should be involved during project preparation so that implementation realities shape feasibility studies and procurement strategies.

Build professional project management capacity

Structured training programmes should equip project leaders with skills in procurement, contract management and risk analysis.

Reform procurement practices

Procurement systems should emphasise contractor capability and long-term value rather than simply the lowest bid.

Introduce stronger project monitoring

Digital monitoring systems—similar to those used in India—could allow policymakers to track progress and resolve bottlenecks quickly.

Empower implementing agencies

Project teams should have greater operational authority to address emerging challenges without excessive central approvals.

Developing a delivery system

Bangladesh has demonstrated that it can provide large infrastructure projects. At this point, these must be done efficiently and on time. Small projects are also noteworthy- they contribute a big portion of the budget. An effective, well-coordinated management style for projects of any magnitude will guarantee an improved outcome, responsibility and long-term economic gains.

Sketch: TBS

Maj Gen (Retd) Md Nazrul Islam is a former executive chairman of BEPZA, a retired major general of the Bangladesh Army, and a PhD researcher on technology, workforce transformation, and industrial competitiveness.

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the opinions and views of The Business Standard.