Economist Dr Debapriya Bhattacharya on Thursday called for a roadmap for debt repayment of the top mega projects which will be started between 2024 and 2026.
“A major shock is coming to the economy between 2024 and 2026 in terms of debt repayments for mega projects that cause concern for the economy. A plan is needed to deal with this situation,” he suggested.
Dr Debapriya, a special fellow of the Center for Policy Dialogue (CPD), a private think tank, spoke to reporters about 20 mega projects in the country in a virtual conversation on Thursday.
He also said currently the ratio of foreign debt to gross domestic product (GDP) is 1.1 per cent which may be doubled by 2026.
In response to the question of whether Bangladesh will be in trouble or not, he said, it will actually depend on how the country’s reserve situation is at that time, and how well the economy remains.
Debapriya also said that Russia, China, and Japan will have to pay more for big projects. Among them, China’s debt repayment period is quite short.
He analyzed 20 mega projects, including Padma Bridge, Rooppur Nuclear Power Plant, tunnel under Karnaphuli River, Matarbari coal-based power plant, metro rail, rail connection of Padma Bridge and others.
About Tk5.57 lakh crore is being spent on these projects. About 62 per cent of this is foreign debt.
Debapriya also said that since 2009 there is a kind of national consensus on taking up big projects. Politicians show interest in it as visible development can be seen if big projects are implemented, he said.
Even though 20 projects are scheduled to be completed by 2028, Debapriya said that it will not be possible to complete all of them in the current decade.
He also pointed out that there is a lack of transparency and accountability in project implementation.
