Infrastructure
Under the visionary leadership of Prime Minister Sheikh Hasina, these gigantic infrastructure construction mega projects would significantly develop the country's communications, transportation, ports and energy sectors by 2030 and help the country to achieve reaching the status of upper mid-income country by 2041.
Global Perspective
Infrastructure is an important driver for the growth of economy of any region. Growing urbanization in developing countries helps boost infrastructure sectors. There is widespread consensus among governments and businesses that increasing the quality of infrastructure is an imperative for economic growth. According to research, the current infrastructure spending at the global level is USD 4.3 trillion. According to World Economic Forum, worldwide investment in infrastructure is expected to be US$79 trillion by 2040. However, the actual global investment need is closer to US$97 trillion. To close this US$18 trillion gap, average annual global infrastructure investment would need to increase by around 23% peryear.
Graph-V
DEVELOPMENT BUDGET: 2019-20
(TAKA 2,116.83 BILLION)
Details of Sector-wise Allocation
(All in Percentage)
No Data Found
National Perspective
According to The Global Competitiveness Index, 2019, Bangladesh has ranked 105th out of 141 countries. In terms of infrastructure, the country ranked 114th which is the lowest among South Asian countries. Sri Lanka ranked 61st. India 70th, Pakistan 105th and Nepal 112th.
Considering these facts, Bangladesh has identified access to infrastructure services asa major driver for accelerating growth and empowering citizens in its national development strategies such as the Five Year Plan (FYP), Perspective Plan, and SDGs Financing Strategy. The seventh FYP has classified infrastructure investment as apriority and emphasized on the categorization of the infrastructure projects, allocation of resources, and timely completion of transformational infrastructure investment. According to the seventh FYP, Bangladesh needs more than five percent of GDP as additional investment in major infrastructure projects per year to sustain growth at ahigher level. However, to attain the infrastructure related SDG targets, the additional cost for infrastructural development has been estimated to be 5.67 percent for fiscal year 2030 (GED, 2017). Improving access to infrastructure services will boost oureconomic activities and produce spill-over effects in its various productive sectors. The potential economic impact can be as high as USD 35.5 billion for Bangladesh by 2030 (UNESCAP, 2017). The government is giving highest priority to accelerate the ongoing mega projects with an aim to deliver the economic and social goods for millions of people of the country as per the Vision 2021 and Vision 2041.
highlights: mega projects
Padma Bridge
Tk 30,193 Cr
expenditure till may, 2019
tk 19,153.12 cr
project tenure january 2009 to december 2019
metro rail
Tk 21,985.07 Cr
expenditure till may, 2019
tk 6,458.56 cr
project tenure jane 2012 to december 2024
rampal power project
Tk 16,000 Cr
expenditure till feb, 2019
tk 3,923 cr
project tenure july 2009 to june 2020
payra deep sea port
Tk 3,350 Cr
expenditure till may, 2019
tk 1,449.27 cr
project tenure july 2015 to june 2020
padma rail link project
Tk 34,988 Cr
expenditure till may, 2019
tk 9,305.64 cr
project tenure january 2016 to june 2024
chattogram-cox's bazar rail line
Tk 18,034 Cr
expenditure till Feb, 2019
tk 3,367 cr
project tenure july 2010 to june 2022
Padma Brimatabari coal power plantdge
Tk 35,984 Cr
expenditure till may, 2019
tk 8,501.84 cr
project tenure july 2014 to june 2023
rooppur nuclear power plant
Tk 1,13,092 Cr
expenditure till may, 2019
tk 17,927.20 cr
project tenure 2016 to december 2025
infrastructure materials/product industry sector
Export Potential
Bangladesh, at present, exports bricks to some adjacent Indian provinces. Bangladesh House Building Research Institute (HBRI) produced cement concrete (CC) brick is produced without fire. It is also called green brick. Barapukuria coalmine’s stone is high quality stone that can be exported or used within Bangladesh for infrastructure development.
Skill Availability
There are about 42000 skilled graduate engineers and IT experts registered with Institute of Engineers Bangladesh (IEB). So infrastructures specialists are available here. Bangladesh has continued to be an attractive destination for foreign companies to do business due to lower production cost and labor wage compared to those of 19 countries in Asia and Oceania.
investment potentials
Bangladesh is one of the fastest growing economies in the world. The country. has been hailed by The Economist as the new Asian Tiger. Besides, a recent report of Price water house Coopers (PWC), a renowned economy reviewer projects that Bangladesh is going to be the 23rd largest global economy in the world by 2050 which is good news for the investors.
The potential investment areas related to infrastructure in Bangladesh are power generation, distribution and exploration of gas and other mineral resources, highway development including bridge, express-way and tunnels, Port infrastructure facilities, Industrial parks/private export processing
Developing and increasing access to infrastructure services and improving their quality is a key to industrialization. Investment in infrastructure is a priority agenda. Bangladesh will remain apriority market for potential investors and development partners for next decades. Its economic growth and growing. demand will drive to attract for more foreign investment in infrastructure sector.
South Asia is the least integrated region and the cost of trading across borders is one of the highest in the world. Co-operation with its neighboring countries offers benefits to Bangladeshi owned road, rail and water transport services and port services. Opening up Chittagong or Mongla Port will earn huge revenue for Bangladesh. Similarly such benefits could be realized if the Government offer Bhutan, Nepal and the North-East India states, the opportunity to transit through Bangladesh to reach the heartland of India, in exchange for the right of Bangladeshi truck and river vessel operators and Bangladesh Railways to share in this traffic. Bangladesh can earn huge potential revenue from connectivity with Nepal, Bhutan and India to Payra deep seaport through the development of Road and Railway infrastructure and services.
current infrastructure scenario
At present multiple mega projects are being implemented with public and private financing. Some of the mega projects already have been completed. Japan and China are major development partners for long time. JICA is supporting us in Dhaka Mass Rapid Transit Development Project, the Kachpur, Meghna and Gumti 2nd Bridge Construction and Existing Bridges Rehabilitation Project, Western Bangladesh Bridges Improvement Project (WBBIP) and Cross-Border Road Network Improvement Project Bangladesh. China has investment in Padma Railway Bridge and some other mega projects. Greater Dhaka Sustainable Urban Transport Project (BRT Gazipur-Airport), South Asian Sub-regional Economic Cooperation (SASEC) Road Connectivity Project, Improvement of Joydevpur-Chandra-Tangail-Elenga Road (N-4) to a 4-Lane Highway and SASEC Road Connectivity Project-II: Improvement of Elenga-Hatikamrul-Rangpur Road to a 4-Lane Highway are supported by Asian Development Bank (ADB). Moreover, Korean International Cooperation Agency (KOICA), Saudi Fund and Kuwait Fund have investment in infrastructure sector in Bangladesh.
