Published: 09 October 2024
Context
Development expenditure is considered a catalyst for economic growth. Such expenditure is allocated to various activities, including infrastructure development, income generation, employment creation, poverty alleviation, and social security. Over the last fifteen fiscal years (2009-10 to 2023-24), about 28 to 41 percent of the total national budget had been allocated as development expenditure. The Annual Development Programme (ADP) is an important short-term yearly plan for implementing development allocations. Considering the number of projects and allocations, a number of prominent sectors receiving priority in the last 15 years (2009-2024) include Transport and Communications, Power and Energy, Housing and Community Amenities, and Local Government and Rural Development. Under the pretext of accelerating economic development, creating employment opportunities, and achieving economic growth, 11 mega projects, along with a significant number of government-funded development projects, were undertaken in the transport sector between 2014 and 2018. Since the 2014-15 fiscal year, the transport and communication sector had received the highest allocation in the ADP, with a notable increase in development budget allocation (21-28% of total development expenditure).
Development Projects of Roads and Highways Department
In 2023-24 fiscal year, 258 development projects in the Transport and Communication sector received a total allocation of BDT 63,263 crore, with the highest allocation going to the Road Transport and Highways Division (BDT 27,803 crore for 158 projects), which ranks second in terms of division or ministry-wise allocation and first in terms of the number of projects. Most of the development projects under the Road Transport and Highways Division were implemented through the Roads and Highways Department during the 2023-24 fiscal year (BDT 24,077 crore for 145 projects). The total development expenditure from the ADP allocation of the Roads and Highways Department between 2009-10 and 2023-24 amounted to BDT 169,450 crore. All development allocations and expenditures were utilized across 22,476 km of roads (National, Regional, and District Roads) throughout the country, implemented via 10 zones, 22 circles, and 65 divisional offices of the Roads and Highways Department.
Political pressure in adopting development programmes, deliberate overestimation of project budgets during planning, irregularities and corruption in road construction activities are often discussed in the public domain. Construction cost for four-lane roads in Bangladesh (BDT 21-100 crore per km) is two to nine times higher compared to neighboring countries and Europe. Inability to spend allocated budgets on time—leading to rushed expenditures at the end of the fiscal year—along with a lack of sustainability and usability in implemented projects, are some of the notable governance challenges, irregularities, and corruption observed in most road and highway development projects in Bangladesh, also highlighted in various research studies, articles, and media reports.
Research Objective
The overall objective of this study was to review the governance challenges in the implementation of government-funded road and highway development projects. The specific objectives were to identify governance challenges at various stages of project implementation, analyse the nature and magnitude of irregularities and corruption, review the control and supervision roles of relevant stakeholders in ensuring governance, and identify ways to overcome these challenges.
For details see below.
