Bangladesh looking for Tk 6.35 tr foreign loan

Zarif Mahmud: The Annual Development Program (ADP) is the major part of the development budget for the next financial year (2024-25). A total of 257 new development projects of foreign loans are added to it.
A list of these projects is given without approval and allocation to attract lenders. About Tk 9 trillion will be spent on the implementation of the projects. Out of this, Tk 6.35trillion has been considered as foreign debt. The rest of the money will be provided by the government.
Out of these, 217 projects have been assigned high priority, 36 medium and 4 new priority projects. This information was obtained by reviewing the recently approved ADP. Meanwhile, there are 232 such projects in ADP for the current financial year (2023-24). The next financial year has increased by 25.
When asked about this, the former senior secretary of the Economic Relations Department (ERD) Kazi Shafiqul Azam told that having such a list would benefit both parties. The government’s priority areas are clear. Development partners can then align funding with their own priorities. It is easier to reconcile the needs of the government with the needs of the lenders.
However, government priorities may change from time to time. The types of projects that are realistically required are added. For this, meetings are also organized with the relevant ministries and departments.

According to sources, among the new projects dependent on foreign aid to be included in the ADP of the next financial year, 48 are in the transport and communication sector. To implement these, a loan of Tk 2.74 trillion will be required. Tk 1.58 trillion will be required for loan for 43 projects of housing and community facilities sector in the second position.
Tk 43,725 crores of loan will be required for 42 projects of power and energy sector which is ranked third. Apart from this, among other sectors, Tk 19,002 crore required for 13 projects of general public service sector, Tk 18,003 crore for industrial and economic services, Tk 9,350 crore for 19 projects of agriculture and Tk 44 thousand crore for 16 projects of local government and rural development sector.
There are also Tk 66,742 crores in 7 projects of health sector, Tk 337 crores in 4 projects of religion and culture, Tk 10,216 crores in 16 projects of education, Tk 7,082 crores in 8 projects of science and information technology and Tk 156 crores of foreign loans are needed for 2 projects of social security sector.
Conventional and non-conventional development partners including World Bank, ADB, IDB, JICA, China, India, Russia are said to be sought for the loan.
Some of the notable projects in this list are – Fifth health, population and nutrition sector program has been estimated to cost Tk 2 lakh 75 thousand 582 crores. Out of this, foreign debt is expected to be Tk 56,556 crores. The Health Services Department wants to implement it by June 2029.
Besides, the total expenditure for the Dhaka-Chittagong highway development project has been estimated at Tk 73,151 crores. Of this, the foreign loan requirement is Tk 61,186 crores. It is targeted to be implemented by 2030 from the beginning of the next financial year if the loan is received. The cost of Bangladesh South Corridor Development Project (Faridpur-Barisal and Barisal-Kuakata) has been estimated at Tk 34,919.17 crore.
Out of this, foreign debt is expected to be Tk 28,119 crores. The implementation time has been fixed between the beginning of the next financial year and June 2030. The total cost of the Water Front Smart City Keraniganj project has been estimated at Tk 81,492 crores. Out of this, foreign debt is Tk 54,673 crores.
It is targeted for implementation by June 2034. In addition, the cost of implementing the compact township development project and conservation of Turag river flood flow area has been estimated at Tk 86,966 crores. Out of this, the target of foreign debt is Tk 45,096 crores. The government wants to implement the project by June 2034.
The total cost of Dhaka Mass Rapid Transit Development Project (Metrorail Line-5) will be Tk 54,618 crores. Out of this, the foreign debt is estimated at Tk 39,138 crores. The Road Transport and Highways Department wants to implement it by 2030.
Some of the other notable projects are Hawre Flood and Livelihood Project, Climate Resilient Sustainable Livelihood Development Project, Bhanga-Jeshore-Benapole Highway Development and Broad Gauge Railline Construction Project from Bhanga Jaishan (Faridpur) to Payarabandar and Kuakata via Barisal.