RADP fund cut may hit roadwork hard

The interim government is economising development spending, which is likely to hit road development badly as allocations for the sector in the FY25 revised annual development programme (RADP) have been reduced by 39.97 per cent.

Besides, the sector's FY26 allocation may be 16.90 per cent less than its demand.

Sources said the Roads and Highways Department (RHD), which is implementing 124 projects in the current fiscal year, has been allocated Tk 138.57 billion in the RADP.

The initial allocation was Tk 230.84 billion.

Besides, the RHD, responsible for developing highways and bridges, is likely to get Tk 194.74 billion for FY26.

The department under the Ministry of Road Transport and Bridges placed a demand for Tk 234.35 billion for the upcoming fiscal year.

Experts appreciated the initiative to lower expenditures in the current economic situation, but said allocations for properly-designed projects that bear importance for the road network should be considered on a case-by-case basis.

"No new project has been approved in the current fiscal year. Almost all ongoing projects remain stalled due to not getting revised development project proposals (DPPs) approved or variation of work. Even land acquisition allocations were approved initially," said an insider.

According to RHD and Road Transport and Highways Division (RTHD), the DPPs of eight new projects were formulated for regional highway development in different parts of the country during the current fiscal year.

However, those were sent back either from the RTHD or the Planning Commission.

Besides, in a recent meeting, Rail and Road Adviser Fouzul Kabir Khan directed the RHD to abandon 20 projects.

Dr Md Shamsul Hoque, a civil engineering professor at Bangladesh University of Engineering and Technology, welcomed the fund-cut initiative considering the government's limitations.

He said going slow is better than randomly allocating funds for all projects as many were undertaken for either personal benefits or political reasons.

Even many feasibility studies during the previous regime were customised, he said.

"Minimising the budget is smart and acceptable as it can ensure proper project reviews on a case-by-case basis to identify the risk factors," Dr Hoque told The Financial Express.

The transport expert also said many new and ongoing RHD projects, such as Dhaka-Sylhet highway development, and Dhaka-Chattogram and Dhaka-Mymensingh highway expansion, may lower the scope for developing expressways for not having need-based designs.

Noted economist M Masrur Reaz also supported the government's move to reduce expenditures but emphasised keeping a balance in the ongoing projects' implementation as well as in dropping and taking on new projects so that the economy functions well.

"A close review of projects is laudable considering that many bad projects received large allocations and vice versa during the past government," he said.

However, he said a wholesale approach in terms of fund cuts for road projects may badly impact the economy.

Dr Reaz, the chairman of Policy Exchange Bangladesh, also said infrastructure development helps with revenue generation by creating jobs and boosting business. Keeping the road network functional is also important for logistics and lifestyle, he added.

Sources said the RHD's proposed projects costing between Tk 3.0 billion and Tk 20 billion were rejected, but a Tk 60 billion border road development scheme is likely to be approved soon.

smunima@yahoo.com