Govt scraps 9 ADP projects, merges 32 to tighten fiscal belt

Mustafa K Mujeri, former director general of the Bangladesh Institute of Development Studies (BIDS), noted that dropping only nine schemes from an ADP containing over 1,000 projects appeared modest, suggesting a broader review could uncover further candidates for cancellation. He added that while merging projects saves costs, savings must not compromise infrastructure quality.

Financial viability, implementation delays drive cancellations

Planning Commission officials said the restructuring aims to reduce administrative and supervision costs, accelerate implementation and prevent wasteful spending. Similar projects operating in the same administrative zones or geographical areas will be brought under integrated schemes to reduce duplication in procurement, contracting and management.

Financial and economic viability was another key consideration behind the cancellations, officials said. 

Detailed assessments found that three major smart prepaid gas meter and related supervisory control and data acquisition (SCADA) projects under Titas Gas and Petrobangla were no longer financially or economically viable under current conditions.

The report said funds from cancelled foreign-funded projects could be redirected to urgent and higher-priority development activities.

Several other projects were dropped because they had remained stalled for years, with no or negligible physical progress. These included building construction schemes under the Technical and Madrasa Education Division and the Shahid Md Saiful Park development project in Mymensingh. 

Three gas-sector projects involving smart prepaid meters, SCADA systems and related infrastructure have been discontinued despite remaining incomplete.

The Gas Sector Efficiency Improvement and Carbon Abatement Project, which includes the installation of smart prepaid gas meters for Titas Gas Transmission and Distribution Company Ltd, had an estimated cost of Tk3,542.17 crore. Launched in 2024, it had recorded physical progress of only 0.38%.

Another project, the Smart Metering Energy Efficiency Improvement Project for installing prepaid gas meters for Titas Gas, was launched in 2024 with an estimated cost of Tk2,214 crore. Its physical progress stood at 6%.

A third project to install smart prepaid gas meters, SCADA and distribution regulation stations (DRS) in areas under the PGCBL was launched towards the end of 2023. It had an estimated cost of Tk681.33 crore, while physical progress was only 4%.

Other cancelled schemes include the Tk1,513.95-crore project to expand the capacity of 15 polytechnic institutes, which began implementation in January 2025 but had recorded no physical progress. The Tk451.07-crore project to construct academic buildings at eight polytechnics and a Tk44.58-crore madrasa building construction project have also been dropped.

The Shahid Md Saiful Park project under the Mymensingh Public Works Division was cancelled after physical progress stalled at 1%. A research project under the Bangladesh Academy for Rural Development (BARD), costing Tk40.45 crore, was also dropped after recording no progress. Meanwhile, a livestock breed improvement project of Milk Vita in Faridpur has been terminated despite achieving 22.97% physical progress.

Road, rail, inland waterway projects to be consolidated

The committee’s report details several major consolidations across the transport sector.

In the Cumilla zone, two road development projects covering the Araihazar-Nabinagar and Nabinagar-Ashuganj routes, with a combined estimated cost of Tk2,137 crore, have been merged. Their respective physical progress stood at 10% and 83%.

In the Sylhet zone, the Kumar Gaon four-lane road project, with 55% progress, and the Borobhanga bridge construction project, with 6% progress, have been consolidated. Similarly, the Shariatpur ferry terminal road project, with 68% progress, and the Shariatpur-Jajira approach road development project, with 82% progress, have been combined under an integrated scheme.

Two Bangladesh Railway projects for renovating level crossings in the eastern and western zones have also been merged. The projects, worth a combined Tk333.54 crore, had recorded physical progress of 100% and 98.69%, respectively.

Two separate railway track maintenance and rehabilitation projects, with a combined estimated cost of Tk3,821 crore, are also being consolidated in the ADP. Physical progress stood at 3.50% in the eastern zone and zero in the western zone.

The BIWTA’s projects to procure new vessels and undertake dredging, with a combined estimated cost of Tk6,601 crore, have also been merged. Their respective physical progress levels were 18% and 48.17%.

In the defence sector, separate projects for accommodation and training infrastructure for the Army and the Air Force have been consolidated as part of the restructuring exercise.

According to Planning Commission officials, implementation was progressing very slowly in many projects, while the proliferation of small, separate projects in the same areas was driving up administrative costs. 

The commission expects the “rescoping” and “repurposing” exercise to accelerate implementation and curb waste, while allowing foreign loans tied to cancelled projects to be redirected towards other priority development projects that serve the public interest.

185 unapproved ‘green-page’ projects dropped

To maintain fiscal discipline and contain budget deficits, the government removed 185 proposed but unapproved “green-page” projects from the revised ADP.

A special advisory committee found many proposals inconsistent with economic capacity and national development priorities.

According to the commission’s final report, 53 projects under the Agriculture, Water Resources and Rural Institutions Division, 46 under the Physical Infrastructure Division, 63 under the Socio-Economic Infrastructure Division and 23 under the Industry and Energy Division have been dropped.

The commission’s stated objective is to prevent a backlog of new proposals and keep the budget deficit under control by prioritising funding for major ongoing national projects rather than allocating resources to non-essential, unapproved schemes.

Dropped projects under the Agriculture, Water Resources and Rural Institutions Division are rural infrastructure projects in Noakhali, Mymensingh, and the Hill Tracts; irrigation schemes in Patuakhali and Barguna; seed distribution initiatives; and marine fisheries surveys.

Projects removed from the Physical Infrastructure Division include  studies for the Chaumuhani-Lakshmipur rail line extension and a new Padma railway bridge (Dhalarchar-Rajbari), alongside the Baghabari river port modernisation and police station reconstruction schemes.

In the socio-economic infrastructure sector that had 63 proposals, among the dropped projects are: seven regional madrasa teacher training institutes, nationwide smart classroom rollouts, and specialised polytechnic upgrades.

In the industry and energy sector, the proposed Bangladesh Salt Research and Training Centre has been removed from the list. A proposal to establish new starch and active pharmaceutical ingredient (API) complexes on the premises of Khulna Newsprint Mills Ltd and Khulna Hardboard Mills Ltd has also been dropped in view of financial constraints.