Dr. Mohammad Kamrul Hasan

In Bangladesh, development predominantly relies on the successful execution of projects. However, like in many other countries, development projects in Bangladesh frequently face delays and budget overrun, which considerably strain resources and impede the country's growth. Over the past decade, Bangladesh has encountered significant cost overruns in its development projects, reflecting difficulties in project management, planning and implementation.

Recent data from various government and non-governmental sources indicate that approximately 60-70% of large-scale infrastructure projects in the country have experienced budget and time overruns, with some projects surpassing initial estimates by more than 100%. This trend is particularly evident in sectors such as transportation, energy and urban development. Some analysis of major infrastructure projects reveals that over 75% of public sector projects exceeded their original budgets, with an average cost increase of 45% from the initial estimates. For instance, the Dhaka-Chattogram Highway widening project, which was expected to cost $240 million, ultimately totaled $530 million, a 120% increase.

In Bangladesh, time and cost overruns in development projects are deeply rooted in a complex network of systemic issues that highlight governance challenges and structural inefficiencies. A major contributing factor is the widespread corruption and substantial delays in the approval, tendering and execution phases of projects. Weak institutional oversight and lack of accountability further worsen the situation, allowing delays and budget escalations to go unchecked. Moreover, inadequate feasibility studies and unrealistic cost estimations due to political pressures or a lack of technical expertise often lead to resource underestimations and time inefficiencies. Consequently, projects are initiated with insufficient preparation, resulting in mid-course corrections that inflate costs and extend timelines.

Furthermore, political interference complicates project implementation in Bangladesh. Frequent changes in government priorities, driven by political agendas rather than developmental needs, often lead to sudden modifications to project scopes or funding allocations, necessitating redesigns, renegotiations and reallocation of resources, all contributing to significant delays and cost increases. Additionally, the absence of advanced project management techniques and technologies means that many projects lack the rigorous oversight. Environmental and logistical challenges further exacerbate these issues. Moreover, the absence of a robust legal and regulatory framework to enforce contracts and penalise non-compliance allows contractors to miss deadlines or inflate costs without significant repercussions.

Studying global lessons is crucial before making any strategic decisions. Japan has a reputation for its efficiency in construction and development projects. One of the effective strategies used in Japan is "Lean Construction," which is derived from the Toyota Production System. Lean Construction focuses on maximizing value by minimising waste, optimising workflow, and improving efficiency throughout the project lifecycle. Moreover, they follow a collaborative planning approach called "Last Planner System (LPS)," involving all stakeholders in the scheduling process and planning tasks based on actual constraints and capacities.

Additionally, the Netherlands has focused on “Building Information Modelling (BIM)” to reduce errors and miscommunications during the construction phase. BIM allows for detailed visualisation and simulation of projects before construction begins, leading to better planning and fewer surprises. Moreover, Germany puts emphasis on standardisation. They rely on Deutsches Institut für Normung (DIN) standards to ensure consistency across the industry, reducing variability and delays caused by non-compliance or substandard work. Germany also has a rigorous system of project audits and oversight to ensure compliance.

Considering the global lessons and realities, we should plan to reduce inefficiencies in project management. Effective project management is critical to keeping projects on track. Using frameworks like PMBOK (Project Management Body of Knowledge) or PRINCE2 can help establish standardised procedures and best practices. And, there should be a comprehensive system of appointing and selecting project directors based on professional competency and experience. Introducing a reward and punishment system for success and failure in efficient project implementation is important. Also, it is crucial to incorporate a compulsory key performance indicator (KPI), giving special weightage to efficient project implementation.

In addition, excessive spending and poor management significantly contribute to cost overrun. The use of digital platforms to monitor project progress and financial transactions can help minimise corruption and enhance transparency. Alongside, regular publication of project updates and financial reports can ensure accountability of stakeholders and keep the public well-informed. Besides, incorporating modern technology can greatly enhance productivity and cut down expenses. Tools such as MS Project, Trello, or Asana can facilitate project planning, scheduling and monitoring. In the context of construction projects, Building Information Modeling (BIM) can enhance planning, design and construction processes, leading to improved time and cost management.

Meanwhile, simplifying approval processes can expedite project initiation and completion. Establishing clear and consistent guidelines for project implementation can reduce uncertainties and delays. It is also crucial to involve communities in the planning and implementation phases to ensure more effective and widely accepted projects. Regularly seeking feedback from stakeholders can help identify and promptly address issues.

In conclusion, it can be said that a comprehensive approach addressing planning, management, transparency, technology, procurement, institutional capacity, policy reforms and stakeholder engagement is essential to reduce time and cost overruns in development projects in Bangladesh. By adopting these strategies, Bangladesh can improve the efficiency and effectiveness of its development projects, contributing to sustained economic growth and improved public welfare.

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The writer is a public administration and public policy analyst