Concerns in changed landscape push contractors to pause key projects

Development projects worth hundreds of billions of takas have been halted after the political shift, mounting public suffering

Tawfik Ahmed, making his usual car journey from Mymensingh to Dhaka, found himself stuck at Gazipur's Chourasta signal, a familiar frustration that had now stretched into half an hour. As a regular on this route, his exasperation was clear. "If only this flyover were finished," he sighed, "we could glide through this nightmare without a traffic jam in sight. Right now, it takes more than half an hour just to cover a single kilometre."

While Tawfik voiced his weariness, local resident Jibon Hasan’s frustration had long turned to anger. "This place has been a traffic hell for the last 10 years," he fumed. "I've watched them work on this flyover for five years, but it never seems to get done. I heard it would be finished this year, but ever since the government changed, there’s been no progress. Who knows when this misery will finally end?"

The BRT project, halted due to the violence before and after the fall of the government during the civil uprising, has not resumed. This crucial project to reduce traffic congestion has seen no presence of contractors or subcontractors on-site.

It’s not just this project—since the fall of the Awami League, influential contractors with ties to the party have all but vanished, and even government-backed contractors have ceased operations. As a result, development projects worth tens of billions of takas have ground to a halt, leaving progress at a standstill.

A similar situation is unfolding across nearly every sector, from road construction to essential services. It’s not just Dhaka and Gazipur—contractors nationwide are pausing to assess the uncertain landscape. Many are questioning whether they will encounter obstacles in the field or if they will be fairly compensated for completing the remaining work. The atmosphere is one of caution and hesitation, as the future of these projects hangs in the balance.

Contractors are also concerned about whether the new government will prioritise projects passed during Sheikh Hasina's tenure.

Alongside major projects, smaller ones have also come to a halt. Fearing attacks, many contractors affiliated with the Awami League and its fronts have gone into hiding, just like the party leaders. Even contractors with government support are hesitating to come out in public. A significant portion of these contractors had long been involved in road and drainage construction and repair work.

As a result, ongoing development work across the country has stalled. The few projects still in progress seem to be running with fewer workers than required, slowing down the progress.

The purchase of equipment, payments for ongoing work, financial approvals, and administrative tasks related to development work have all been halted as well.

In the changed circumstances, contractors are demanding the government quickly issue guidelines on which projects will proceed and which will not. They are waiting for an official government announcement to avoid major financial losses if projects are cancelled.

WORK DELAYED, PUBLIC SUFFERING

Though there was hope to finish work by September this year and open the Gazipur BRT project to traffic by December, project officials now believe this is unlikely. During the quota reform movement and the protests that led to the government to collapse, several parts of this project suffered extensive damage. As a result, implementation has been significantly delayed, and the public continues to suffer.

The Gazipur section of the BRT project is being implemented under the Roads and Highways Department, or RHD. Project Director ASM Elias Shah said that during the protests, 13 stations were set on fire. The flyover near Chourasta was about 90 percent complete.

“There’s certainly been an effect from the protests and the change in government. Still, the contractors have started resuming work. It will take another couple of weeks for the work to fully pick up,” he added.

Despite the project director's statement about contractors returning to work, a visit to the project area last week showed no ongoing activity. When this was pointed out, he responded: "You may not have seen any work, but there is some minor progress on the flyover from Mymensingh to Dhaka at Chourasta. It's moving slowly, just like other projects."

Reflecting on the challenges faced by the project, he said: "The contractors are in shock, trying to figure out how to proceed. They are assessing the damage to their materials and will inform us once they have clarity. We are also working to restart the work. Right now, we are determining the extent of the damage, and only then can we estimate how long it will take to complete the project."

This project, which covers a total of 20.5 kilometres from the airport to Gazipur Chourasta, includes nine flyovers and 25 stations, of which 13 were set on fire.

The construction of the underpass from the National Parliament to the MPs' residential area in the capital has also been stalled since the fall of the government. When attempts were made to inquire about the current status of the project, no responsible officials were found. Even after looking for engineers to find out how much work remains, none could be located.

Security guard Abdur Rouf Mia, who was patrolling around the project area, told bdnews24.com: "The work is currently stopped. They’ve kept me here just to keep watch. I don’t know anything about the work."

Harunur Rashid, a rickshaw puller who works around the parliament area, said that since Aug 5, after the fall of the government, he hasn’t seen anyone working inside or outside the underpass project.

"Since the government left, this work has been stopped. The labourers have also left. The work is completely halted. Some people have even removed part of the tin fence."

The underpass project was being handled by a contracting company called Constech and Technology Limited. Its engineer Arif said that the project is temporarily halted due to the lack of any updates on whether the work will proceed.

"We heard that the interim government said only the most urgent projects will continue. The ones that aren’t as urgent will be stopped with some compensation."

He mentioned that only about 10 percent of the work on this project had been completed. As soon as the violence during the protests began, all the workers left the site.

One of the major contracting companies in the country, Toma Construction, is responsible for ongoing development work in various areas, including Demra, Sylhet, and Cox's Bazar. However, work has come to a standstill in all these projects.

A senior official from the mechanical department of the company, who requested anonymity, explained the reason for this. "The situation we're seeing with other projects across the country is the same for us. There were minor incidents at some of the projects during the protests."

However, the official believes that the work of Toma Construction, known for its influence during the previous government, will continue.

He said, "The work funded from external sources and for public benefit won't be cancelled. We're not worried about that. But there were supposed to be tenders for many new projects. Whether those will happen now or later is a separate concern for contractors."

CONTRACTORS UNCERTAIN GOVERNMENT’S PROJECT PRIORITIES

Md Shafiqul, the managing director of Reliable Builders Limited, said: "We contractors are in a state of uncertainty, wondering which of the ongoing projects will be prioritised by the interim government and which will receive less importance.

"The previous government had its own plans and wanted to execute them accordingly. But when a new government comes in, they advance with their new plans. Sometimes projects are cancelled if they are considered less important. This uncertainty has left contractors deeply concerned."

Since the protests in July, all development project work has been halted, he noted, adding: "We need a clear guideline on which projects will continue and which won't. If this government declares that no work orders from the previous government's time will remain valid, what will happen to the contractors? As a result, all development projects worth billions of taka across the country are at a standstill."

Shafiqul, who obtained his licence in 1998, currently has ongoing work under the RHD in Narsingdi, Mymensingh, and Gopalganj. However, he claims he cannot move forward due to uncertainty about whether these projects will continue under the new government.

He estimates that construction work worth Tk 100 to 150 billion across various government departments is currently halted. According to him, 99 percent of projects in the country have been paused. The few that are still ongoing are being conducted with reduced manpower, and workers are operating in fear, barely keeping the work alive.

In Gabtoli's Gaidartek area, drainage line construction under the North City Corporation was halfway completed. After the protests and the fall of the government, the work has slowed down significantly.

A similar situation is observed at Khalpar in Uttara, where drainage line excavation work under the Rajdhani Unnayan Kartripakkha, or RAJUK, the capital development authority, was underway. Since the government changed, this project has also lost momentum.

In New Market, under the jurisdiction of the Dhaka North City Corporation, a contractor won a contract to work on a roadside drainage system in April. However, due to concerns about his political affiliation with the Awami League, he feared that his work might not continue under the new government.

To mitigate this risk, he handed the project over to an acquaintance affiliated with another party, ensuring the project wouldn't be cancelled. The condition was that the new person would give him a share of the profits.

Contractors are in fear that their tendered work might be cancelled following the change in government. One contractor offered: "I’m afraid that the work I have secured through a tender might get cancelled later. I can’t even discuss with any responsible authority whether I should proceed with my project or not.

“The new government is cancelling many things that were started under the previous government, including the elections. In this situation, it’s hard to say if development projects will continue."

The contractor shared that one of his friends, another contractor, had won a tender six months ago for a seven-kilometre road in Eliotganj, Cumilla. He began work in June and completed half a kilometre of the road. He was fully prepared to complete the rest, but now lacks the courage to proceed.

Contractors say that senior engineers in local government, city corporations, and other departments, responsible for overseeing projects, are also unsure if they will remain in their current roles. With everything in flux, these officials are hesitant to make any decisions.

Md Mahmudul Hasan, director general of the Implementation Monitoring and Evaluation Division, or IMED, under the local government ministry, said contractors need more time to regain momentum. He acknowledged that some contractors have halted work due to concerns about whether the new government will prioritise projects from the previous administration.

When asked if he was aware that many contractors had stopped work due to this uncertainty, Hasan responded, "That might be the case, but we can’t specify the exact number. We’ll have to wait a few more days to gather that information."

He explained that IMED prepares monthly reports and will conduct a review soon.

"If we see less progress, we’ll hold immediate meetings and make decisions accordingly," he added.

Regarding the financial losses contractors are facing due to the halted work, Hasan said: "We don’t address the losses. That’s something you can analyse. However, contractors can compensate for delays by increasing their workforce. If an extension is needed, it will be granted according to the rules."

Hasan also noted that IMED has 227 approved projects for the 2024-2025 fiscal year, with a total expenditure of Tk 350 billion. All of these projects are ongoing, with some being 5 percent complete, while others are up to 95 percent complete. By June next year, the fiscal year will end, and around 40 to 50 projects are expected to be completed. Most of these projects are three-year initiatives, involving over 1,000 contractors.

Md Mahbub Alam, executive engineer at the RHD said that there are currently 126 ongoing projects under his department, ranging from small to large ones. Some projects are nearing completion, while others have a lot of work remaining.

"Contractors who do good work will receive proper payment. They must adhere to the tender conditions. Contractors are well aware of whether there’s enough funding. If we don’t have the budget, we don’t ask them to proceed with the work. We always push contractors to finish quickly because people are suffering," he added. He couldn’t specify how many contractors were involved in the 126 projects.

Since the fall of the government, the chief executive engineer of Dhaka South City Corporation has gone into hiding. He also held the role of additional chief engineer, meaning no one is overseeing project progress, causing significant difficulties for various project contractors.

Private think tank the Centre for Policy Dialogue’s distinguished fellow Mustafizur Rahman emphasised the need to review the ongoing projects.

"We need to assess which projects are necessary and which ones should be prioritised for funding, especially considering the current financial constraints. Some projects may need to be postponed, while others need to be completed quickly."

He also pointed out that some projects were unnecessary in the first place, saying, "We need to review and take action on such projects. Cancelling some of these would be beneficial for the country."