Midsize projects also face budget downsizing

Many midsize development schemes also find their fate entwined with megaprojects in the infrastructure sector in downsizing budget outlays as the interim government tries to make two ends meet with limited funds.

Sources say a large number of medium-scale development schemes under the Annual Development Programme (ADP) of the current fiscal year are also facing substantial allocation cuts, alongside the trimming of megaprojects.

The proposed Revised ADP (RADP) allocations are being sharply reduced not only for metro-rail, highway and port-development projects but also for schemes related to hospital construction, establishment of educational institutions, rural development and social infrastructure across various sectors, Planning Commission sources have said.

"Programming Division of the Planning Commission has finalised the project-wise allocation in the RADP worth Tk 2.0 trillion, with a combination of Tk 1.28 trillion from domestic sources and Tk 720 billion as project aid in the form of foreign loans and grants," says a senior official.

The proposal to be placed at the extended committee of the planning commission to be held Monday with Planning Adviser Dr Wahiduddin Mahmud presiding, he adds.

The drafted RADP is to be trimmed down by 13.04 per cent from the original ADP worth Tk 2.30 trillion approved by the National Economic Council (NEC) prior to the beginning of the fiscal year.

An analysis of the estimated revised allocation for 35 projects by The Financial Express shows that allocations for these projects have been reduced to Tk 143.23 billion from the original Tk 478.94 billion.

These projects are set to lose allocations worth Tk 335.71 billion, about 70 per cent of the original estimates.

While large transport and port projects dominate the headline figures, 13 medium-sized projects in health, education, social protection and urban social services have seen their allocations slashed by 82.67 per cent.

Economists warn sustained underfunding of both megaprojects and midsize ones-especially in transport, health and education-could weaken growth prospects and disrupt service delivery unless financing and implementation momentum are restored in the coming fiscal years.

Analyses have found three separate projects to establish medical universities in Sylhet, Chattogram and Rajshahi set to have allocation cut deeply by 89.04 per cent.

These projects would receive an aggregate allocation worth Tk 2.60 billion, after cutting Tk 21.12 billion from original allocation of Tk 23.72 billion.

Establishment of Sylhet Medical University project approved with estimated cost of Tk 20.36 billion is set to see the fund slashed by 94.23 per cent from original Tk 13.0 billion.

The health sector has emerged as one of the hardest-hit while allocations for establishing four 500-bed medical college hospitals in Jashore, Cox's Bazar, Pabna and Noakhali have been slashed by Tk 26.88 billion, nearly 88 per cent of the original allocation.

Funding for Chandpur Medical College and Hospital is up to lose 85.19 per cent from original allocation Tk 10.02 billion to the revised allocation of Tk 1.48 billion.

Education and human capital projects, too, face deep reductions while development support for selected non-government secondary schools has been cut by over 76 per cent.

The ICT-based education-expansion project at secondary and higher-secondary levels has lost nearly 94 per cent of its allocation.

Each of the Higher Education Acceleration and Transformation (HEAT) project and the Economic Acceleration and Resilience for NEET (EARN) project is destined to see cuts of about Tk 8 billion, which are 77.18 per cent and 71.52 per cent of original allocation respectively.

Allocation for the government primary school feeding programme introduced recently set to shed nearly 50 per cent, while the Improving Urban Governance and Infrastructure Project (IUGIP) Tk 7.10 billion.

Officials involved with the RADP process say the reductions reflect slower implementation progress, foreign-aid-disbursement delays, and government effort to rein in public spending amid pressure on foreign-exchange reserves and rising debt-servicing costs.

Metro rail is set to see massive cut among megaprojects.

In a major blow to Dhaka's metro-rail expansion, a proposal has been placed to cut Tk 90.52 billion from three projects being implemented by Dhaka Mass Transit Company Limited (DMTCL).

According to official documents, around 79 per cent of the original allocation of Tk 114.69 billion is set to be withdrawn, leaving only Tk 24.17 billion for the three metro-rail projects in the revised Annual Development Programme for the fiscal year 2025-26.

The sharpest cut of all-amounting to Tk 78.3 billion-has been proposed for the Dhaka Mass Rapid Transit Development Project (Line-1), which covers construction of the underground metro rail from Hazrat Shahjalal International Airport to Kamalapur and the elevated metro rail from New Market to Purbachal.

Under the RADP, the Line-1 project has been allocated Tk 8.01 billion against the original ADP allocation of Tk 86.31 billion.

The project, which has been under implementation since 2019, is scheduled to expire in the current fiscal year, raising concerns over execution delays amid shrinking funding.

Allocation for MRT Line-5 (Northern Route) has been cut by Tk 8.98 billion, while MRT Line-6 has lost Tk 3.24 billion. The Jamuna Railway Bridge project has seen a cut of Tk 9.10 billion, and funding for the Padma Bridge railway link has been reduced by Tk 3.30 billion.

The Matarbari Port Development Project has also seen its funding reduced sharply, by Tk 29.83 billion, or more than 73 per cent.

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