Impact of Infrastructure Development Project: A Study of Growth and Poverty in Bangladesh

Impact of Infrastructure Development Project: A
Study of Growth and Poverty in Bangladesh

ii
Term Paper on
“Impact of Infrastructure Development Project: A Study of Growth and Poverty in Bangladesh”
Submitted to
Prof. Nafees Ahmed Imtiazuddin
Faculty of Business Administration
Bangladesh University of Professionals
Submitted By
Group – 05
2023033012 FAHMIDA KABIR SHANTA
2023033016 KHATUNE JANNAT LAYA
2023033044 MD. ABDUL MUNEM
2023033058 MD. GOLAM KIBRIA
2023033060 ANNAPURNA DEBNATH
2023033080 MUMTAHINA KHANAM
2023033088 MD MEHEDI HASAN RUMI
Program: MBA (Professional)
Batch: 25, Sec: B
Faculty of Business Studies
Date of submission: 18th
March 2021
BUP- Bangladesh University of Professionals

iii
Group Profile
Group: 05
Serial
No.
Name Student ID
01 Annapurna Debnath (Group Leader) 2023033060
02 Fahmida Kabir Shanta 2023033012
03 Khatune Jannat Laya 2023033016
04 Md. Abdul Munem 2023033044
05 Md. Golam Kibria 2023033058
06 Mumtahina Khanam 2023033080
07 Md. Mehedi Hasan 2023033088

iv
ACKNOWLEDGEMENT
First of all, we would like to thank the Almighty ALLAH for giving us the strength and passion to
complete this report. Then we thank our families to give us the opportunity to complete our post-
graduation. We are blessed to have our academic instructor Prof. Nafees Ahmed Imtiazuddin Sir
at BUP,who had the attitude and the substance to be a true mentor as he guided me throughout the
preparation of the term paper. Then we thank those people who provide authentic information.
Also we are thankful to our group mates that we have been able to cooperate each other. Finally,
we would like to thank everyone who was helping us to complete our term paper.

v
Letter of Transmittal
March 18, 2021
Prof. Nafees Ahmed Imtiazuddin
Professor
BUP
Subject: Submission of Term Paper.
Dear Sir,
With due respect we would like to inform you that we are student of MBA(Professional) of Faculty
of Business Administration, BUP standing on the other entity of our course completion, hence are
finalized with our practicum report naming as “Impact of Infrastructure Development Project: A
Study of Growth and Poverty in Bangladesh”. Our term paper comprises adequate endeavors.
However no doubt, our contribution will be best evaluated on your sharp scale of acceptance &
analytical remarks.
We are submitting our term paper for your very concern. Hopefully, you will discover our well-
researched, informative approach as a hallmark of hard work. In case of any further clarification
or elaboration as to our term paper, we would welcome the opportunity to consult with you to
explore how my findings could best meet your queries.
Thanking You.
Sincerely,
Group 05
ID: 2023033060, 2023033012, 2023033016, 2023033044
2023033058, 2023033080, 2023033088
Section: B, Batch: 25
MBA (Professional)
BUP

vi
Student’s Declaration
We hereby declared that the project work entitled “Impact of Infrastructure Development Project:
A Study of Growth and Poverty in Bangladesh”. Submitted to BUP is a recorded of an original
work done by us under the guidance of Prof. Nafees Ahmed Imtiazuddin, Faculty of Business
Administration at BUP. This project work has not prepared for any other purpose like reward or
presentation.
Sincerely,
Group 05
ID: 2023033060, 2023033012, 2023033016, 2023033044
2023033058, 2023033080, 2023033088
Section: B, Batch: 25
MBA (Professional)
BUP

vii
Executive Summary
Infrastructure development is a catchword at present. It creates an impact on the improvement of
road connectivity. It reduces poverty, hence increases the economic growth of the country. The
purpose of the term paper is to find out the impact of infrastructure on productivity, road
connectivity, economic growth, and returns on investment from government projects in
Bangladesh. A 10-item questionnaire was made to collect the data. Data was collected through an
online survey. All the respondents were asked questions regarding consultation process of
infrastructure, government involvement, recovery sector, result of infrastructure in growth and
poverty eradication, necessity of foreign aids, maintenance, and also criteria for accepting the
approval of infrastructure projects. The findings are totally based on the opinion of respondents,
which indicated that government and foreign aids/funds are playing a very crucial role for the
infrastructural projects. Among all the sectors, the power sector has been proved very important.
Public Private Partnership (PPP) can facilitate vital services for the people of Bangladesh.
Infrastructure projects must be done to increase GDP growth. The recommendation states that
developing relationships with foreign countries can become more helpful for Bangladesh.
Keyword: Infrastructure, rate of returns, government, road, economic growth, productivity,
foreign aids, poverty, investment, development.

viii
Table of Contents:
Title fly i
Cover Page ii
Group Profile iii
Acknowledgement iv
Letter of transmittal v
Student declaration vi
Executive summary vii
Table of contents ix
Chapter One: Introductory part
1.1 Introduction 1
1.2 Objective of the term paper 2
1.3 Significance of the term paper 2
1.4 Limitations of the study 2
Chapter Two: Literature Review
2.1 Literature Review 4
2.2 Investment Vs. return of investment 4
Chapter Three: Methodology
3.0 Methodology 7
Chapter Four: Analysis and Findings
4.1 Analysis 8
4.2 Findings 18
Chapter Five: Recommendation and Conclusion
5.1 Recommendation 20
5.2 Conclusion 21
Bibliography 22
Appendix 23

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List of figure
Figure 1 stage development do consultation processes take place 8
Figure 2 short list of priority projects 9
Figure 3 necessary sector to recover the cost from the project 10
Figure 4 best possible result in growth and poverty eradication 11
Figure 5 infrastructure development we should seek foreign aid/ funds 12
Figure 6 the maintenance after infrastructural development 13
Figure 7 financial and non-financial performance 14
Figure 8 to keep pace with projected GDP growth 15
Figure 9 investment for infrastructure development projects 16
Figure 10 the central Budget Authority to the approval of infrastructure project 17

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Chapter 1: Introduction
Infrastructure is considered as one of the most important elements for economic growth for
developing countries like Bangladesh. Infrastructure projects can act as a direct economic
stimulation to continuously improve the quality of life by providing better quality goods and
services. Infrastructure projects are a way to make a linkage between developed and developing
countries. Just like China-Bangladesh started a diplomatic relationship in 1976. With the Belt and
Road Initiative (BRI) project, when president Xi’s visited Dhaka in 2016, created a good initiative
for the development of Sino- Bangladesh relations (Pereira, H. M. ;2018). Infrastructure projects
are there for creating long term improvements. Roger McNamee states that “It is high time people
stop thinking about infrastructure as a profit-making incitement and start thinking about it as a plan
of action (Fan, H.; Ismail, H. M.; & Reza, S. M, 2018). Bangladesh has achieved a lot of
developments in roads, bridges, electricity, communication, tunnels, industries, transportation,
power, ports through infrastructure projects.
Infrastructure plays a very crucial role for economic growth. EU has confirmed that there is a
positive correlation between infrastructure and economic growth. It stimulates the GDP growth
rate of Bangladesh. It has a positive result in the overall growth of urban and rural areas. In
Bangladesh, Dhaka city faces many problems in many sectors due to infrastructure. The corruption
and mismanagement of infrastructure authority failed to have a proper contribution in
infrastructure services. For infrastructure development, Bangladesh has been ranked in 80th
position in 81 positions, scoring 2.3 out of 10, which reflects poor economic development in
Bangladesh. However, within 2021-2025, it is expected to capture 70th
position, scoring 4.3,
through numerous projects. (September, 2020). Infrastructure can be a great way to reduce poverty
and to achieve Millennium Development Goals (MDG) in Bangladesh. Infrastructure is likely to
reduce poverty by enhancing growth, given that positive strong correlation between income growth
and poverty reduction has been widely observed (Besley and Burgess, 2003; Dollar and Kraay,
2002, Ravallion, 2001).
The term paper by Khandakar et al (2006) showed that enormous positive changes is possible on
agricultural sectors and also on socio-economic sector through rural road investment in

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Bangladesh. It can be said that investment in communications such as roads, internet can have a
great contribution on the acceleration of value of life of the people in Bangladesh. Infrastructures
such as roads, bridges, financial institutions, electricity, and hospitals have reduced poverty and
increased economic growth.
To enhance market productivity, infrastructure is a must. Yao (2003) claimed that to reduce
poverty farm sectors such as agriculture, fishing, and hunting as well as non-farm sectors such as
tourism, manufacturing, construction needs accessibility so that poor people can enter the market,
produce efficient outcome and increase productivity. Infrastructure enhances competitiveness and
productivity, which impacts the economy for long term.
Infrastructure ensures financial returns. Rate of return determine the level of investment. Higher
return might require higher investment and higher risk. The estimated rate of return in developing
countries like Bangladesh is considered to be high. Government involvement, technical risks, such
as system change, inflation increases, sudden revenue changes, unexpected returns, and delay in
land acquisition are also there to create an impact on rate of returns (Yoshino et al., 2018).
1.2 Objective of the term paper:
 To study the improvement of road connectivity throughout the country.
 To find out the return of investment from Government infrastructure projects by analyzing
benefits.
 To find out the impact of infrastructure by studying productivity and researching economic
growth in the increased attention.
1.3 Significance of the term paper:
 By this term paper we can know about the development or urban and rural road transport
systems infrastructure.
 We knew about the processes for infrastructure approval.
 At a glance this term paper gives organized governance of infrastructure i.e. the intuitional
roles, procedures, assessment tools and related issues.
 Current Status of infrastructure management in Bangladesh.
 Found out the financial sources such as tax revenue, reserve fund, subsidies, financial aid from
foreign source.

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1.4 Limitations of the study:
There are some problems, which are faced during the formation of the term pare, which we have
faced. The following limitations have been faced.
⮚ Lack of primary sources: Some information has been collected from secondary sources. So,
the information might not be accurate.
⮚ Creation of confusion: The information shown in different articles vary a lot, which creates
confusion.
⮚ Drawback: Due to our lack of experience, there might be some lacking in our term term paper.
⮚ Participation of the respondents: It has been a great problem to collect the response from
others for online surveys.
⮚ Pandemic situations: Because of COVID-19, it has been a huge problem to collect
information due to physical reach. Considering the current pandemic situation, we conducted
our survey online. However, otherwise, we may have collected data through in-person surveys
which could contribute to our study further.
⮚ Technological competences: Some participants mentioned their difficulties navigating
through the survey using their mobile phone, which was a limitation.
⮚ Transparency: Virtual participation although is convenient can have its own drawbacks. We
sent our surveys and relied on the answers we received. However, this process overlooks issues
like transparency of participation.
⮚ Overall representation: We reached out to participants whom we know already and asked
them to forward to others, whom they know. Thus, we do not expect that our study will
represent the corporate culture and practices of all professionals in general.

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Chapter 02: Literature Review
The link between infrastructure investment and development outcomes is a worldwide most
popular topic. Before investment each and every investor is concerned about how they can get
benefited from this invest.
2.2 Investment vs. return of investment:
The role of infrastructure is widely analyzed. Available and quality of infrastructure result in
different decisions to invest and many influence migration, business establishment location.
Key infrastructure assets create additional economic benefits by supporting urbanization and
industrialization growth and providing better access to joining districts to districts and village to
village and a stronger trade links. And then the increasing growth in GDP per capita and turn
greater financial returns.
In the traditional neoclassical model of economic growth (e.g. Solow, 1956)) public policies such
as a change in the rate of public investment spending can have effects on the long-run level but
not the long-run growth rates of output and productivity. But recently a new class of economic
growth models has been developed (Romer, 1986, Rebelo, 1991)) in which public policy change
can impact the long run rate of growth of output or productivity.
(Henckel , 2010) arranged a conference that was happened in March 2010 in Sydney, Australia
with leading international experts so that we can explore the many aspects of infrastructure. He
concluded that indeed, although there are potentially large theoretical gains of infrastructure
investment for economic growth, the efficiency of infrastructure spending in practice is at best
mixed.
Moreover it has been analyzed that in Africa the returns to investment in infrastructure are very
significant with on average eighty percent returns from the road infrastructure (kingombe, 2011)
Conceptually, infrastructure may affect output in many ways:
1) Directly, considering the sector contribution to GDP formation.
2) Add an additional input in the production process of other sectors.

5
3) Indirectly raising total factor productivity by reducing transaction and other costs thus
allowing a more efficient use of conventional productive inputs. (kingombe, 2011)
Populace information for the year 2001 has been gathered from the Census Department. Population
projections for the year 2011 and 2021 have been worked out from the Master Plan, 2021 of HUDA
(Haryana Urban Development Authority). Employment projection has been accomplished for the
year 2011 and 2021 in counsel with ground breaking strategy of HUDA, thinking about 2003 as
the base year. In 2003 the employment rate was 2million against 6 million population, but in 2021
it was 4.5 million employment against 13.64 million of population under the Hyderabad Metrorail
projects. (Delhi Metro Rail Corporation, 2021).
A term paper talks about the sources of instability, and the general benefits of elective proportions
of dependability and models for anticipating unwavering quality. Methods for surveying and
relieving the effects of debasement of intra-urban and urban road networks, and for assessing the
economic benefit of lessening travel time unconventionality, are represented. It likewise diagrams
examination into the versatility of road networks and the clients/associations which depend upon
them. It centers on basic issues and methodological issues, and presumes that few such issues and
issues are yet to be settled (Nicholson et al., 2007).
The road infrastructure projects scaled up private turn of events, both in Kisumu and Accra, as the
roads added to housing rents and land costs to increase and delivered peri-metropolitan networks
along them as appealing zones for real estate developers. Moreover, availability to offices and
services improved. Likewise, in the two urban communities, the roads improvement fuelled
employment openings. On the other hand, in the two urban communities, the roads improvement
projects prompted improvement and along these lines to the dislodging of helpless inhabitants into
the hinterlands, which changed the social fiber and coordination in a limited way. The roads
improvement projects profited the rich, who own property to the detriment of poor people. The
discoveries that the effects of street foundation seem to vary in locational setting and class of
people inside peri-metropolitan territories cause us to propose that place-based and individuals
based arrangements should be joined to address the outcomes of roads improvement projects
(Khanani, Adugbila & Martinez et al., 2020).

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The change in GDP because of power creation through Rooppur Power Plant is assessed $1.4
billion every year. The net economic advantage, which is the contrast between limited financial
advantage and limited economic cost, will be around $71.4 billion. The minor effect of every dollar
spent in Rooppur Power Plant would be 3.6 against 1.3 for coal based power creation. Bangladesh
intends to raise the per capita pay in the country to $12,500 by 2041 lay to a great extent on the
scale and speed of industrialization of the economy (Rahman et al., 2020).
The benefit of road connectivity project on 2,533 km road work finished, 63% of actual
advancement according to most recent appraisal. 309 km of execution based support contract
finished as far as introductory fix, 72% of actual advancement according to most recent appraisal.
22 million people living roads and waterways benefitted (World Banket al., 2016).

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Chapter 03: Methodology
The objective of this term paper is to derive some insights about the impact of infrastructural
development for economic growth and poverty alleviation in Bangladesh. In doing so, a structured
questionnaire was used to collect primary data. Due to this Covid -19 pandemic situation, it was
not feasible to take face to face interviews. Under these circumstances, we conducted online
survey. As mentioned earlier, we used Google form to conduct our survey, which is a very
convenient option considering current situation.
We designed our survey with simple questions and overall short length in order to make it easier
for participants to understand the questions and answer without taking a lot of time from their daily
schedule. There were ten (10) close-ended questions in our questionnaire. The first part of the
questionnaire was intended to collect demographic data like age, gender, marital status, education,
employment etc.
The second part of the questionnaire mainly focused on respondents’ perception about the
economic variables, political stability, bureaucracy, corruption etc. which were the independent
variables of this term paper.
We reached out approximately 66 respondents to gather the necessary information for directing
this term paper. The survey was self-directed by the respondents.

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Chapter 04: Analysis and Findings
4.1 Analysis
1. By which stage development do consultation processes take place?
Answer Respondents
a. By evaluating of infrastructure needed 30
b. Decision prioritization of infrastructure 6
c. Infrastructure project preparation 15
Graph 1: stage development do consultation processes take place
Through the respondents, 59% has been chosen by evaluating of infrastructure needed. Because
the evaluation method as introduced is a model which is refined and culminated as new
assessments are made. The progress of a computer based apparatus for data collection with respect
to site is one illustration of an improvement of the instrument with a view to more deliberate use
in any new improvement project for road infrastructure in the Brussels Capital Region.
12% of respondents chosen decision prioritization of infrastructure. As Government have been taken
a lots of projects, but they do prioritize basis, such example the Padma Bridge comes first, than
Metro-Rail in Bangladesh. It concern about economical demand.
59%
12%
29%
1. BY WHICH STAGE DEVELOPMENT DO CONSULTATION
PROCESSES TAKE PLACE?
a. By evaluating of
infrastructure needed
b. Decision prioritization of
infrastructure
c. Infrastructure project
preparation

9
29% of respondents respectively expressed their opinions with the statement of stage development
do consultation processes take place. Prioritize on infrastructure speculation improves efficiency,
incites seriousness and adds to long term feasible economic development. In any case, the grade
of understanding these advantages from infrastructure venture differs impressively across areas,
by localities and by level of administrative and institutional development.
2. Does the government have an overall short list of priority projects that it has politically
committed to make happens within the medium term?
Answer Respondents
a. No 12
b. Neutral 24
c. Yes 30
Graph2 : short list of priority projects
The Bangladesh government has shortlisted some of the priority projects like Metrorail, Padma
Bridge, four-lane national highway etc. which are the current government’s election manifesto.
If we consider the outcome of our survey, then we can also observe that the majority of the
respondents (45%) thinks that the government has shortlisted the priority projects and committed
18%
36%
46%
2. DOES THE GOVERNMENT HAVE AN OVERALL SHORT LIST
OF PRIORITY PROJECTS THAT IT HAS POLITICALLY
COMMITTED TO MAKE HAPPENS WITHIN THE MEDIUM
TERM?
a. No
b. Neutral
c. Yes

10
to accomplish those within the medium term. on the other hand only 18% respondents feel the vice
versa. and 36% respondents are not sure about the government's actual plan in this regard.
3. Which sector is necessary to recover the cost from the project?
Answer Respondents
a. Private Sector 27
b. Government 24
c. User 15
Figure 2 : necessary sector to recover the cost from the project
Recovering cost from infrastructure is very crucial. Investment on infrastructure also depends on
recovering cost. So, the private sector, government sector and user are the sources to recover the
cost.
According to our survey, the majority of the people, which is 41% think that the private sector is
necessary to recover the cost from the project. Private sector highly maximize their profit by using
the government property. So the private industry would responsible to recover this process.
41%
36%
23%
3. WHICH SECTOR IS NECESSARY TO RECOVER
THE COST FROM THE PROJECT?
a. Private Sector
b. Government
c. User

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36% think that the government sector is necessary for recovering cost, because most of the projects
are run by the government. Government took responsibility of a project.
And another 23% think that users are necessary to recover the cost from the users. Such example
the toll plaza, the project authority will collect the benefit by collecting toll from the users.
4. How to get the best possible result in growth and poverty eradication by infrastructure development?
Answer Respondents
a. By developing the communication sector to increase economic development. 33
b. By developing power sector for manufacturing and storage of goods, 15
c. To help mass people to connect to the market. 18
Figure 4: best possible result in growth and poverty eradication
For a developing country like Bangladesh, infrastructure is very necessary for economic growth
and poverty reduction. It improves the quality of life for the poor and increases GDP per capita.
There is a high linkage between infrastructure and growth and poverty in Bangladesh.
In survey, 59% people think that by developing the communication sector to increase economic
development, 27% think that by developing power sector for manufacturing and storage of goods,
50%
23%
27%
4. HOW TO GET THE BEST POSSIBLE RESULT IN GROWTH
AND POVERTY ERADICATION BY INFRASTRUCTURE
DEVELOPMENT?
a. By developing the communication
sector to increase economic
development.
b. By developing power sector for
manufacturing and storage of goods,
c. To help mass people to connect to
the market.

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and other 23% think that through mass people to connect to the market it is best possible to get
result in growth and poverty eradication by infrastructure development.
From the perspective of 59% people that if the Government can ensure the development of the
communication sector then the economic growth can rise in the long run. People can go to the
workplace in a short time. It helps from time waste.
The development of the power sector and storage sector also help to build the economic sector.
But most of the people think it is not that much efficient. So the percentage of choosing the option
is low.
On the other hand, developing the connection of the market place with the mass people can build
a significant scope. The mass people can ensure their desired product is selling or buying. The
overall growth of the economy can be improved in a significant way.
5. Do you think for infrastructure development we should seek foreign aid/ funds?
Answer Respondents
a. Yes 39
b. No comment 18
c. No 9
Figure 5: infrastructure development we should seek foreign aid/ funds
59%
27%
14%
5. DO YOU THINK FOR INFRASTRUCTURE
DEVELOPMENT WE SHOULD SEEK FOREIGN
AID/ FUNDS?
a. Yes
b. No comment
c. No

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A question is raised among all of the participants for their opinion on whether any kind of foreign
cooperation is needed for the infrastructural development of our country. In answer to that question, we
found that 59% of the people agreed to say YES, 14% said NO, and 27% said NO COMMENT. For a
developing country like ours to be placed on the world map as a developed country, it needs the help of
external agencies.
Foreign aid, Economic growth, economic development is a burning question for comforting researchers
and economists. Foreign aid is donation of money, goods, service from one nation to another. Mainly the
developed countries come forward to help the poor or developing country. While providing foreign aid to
the less developed economies, donor countries less give it away in the form of a free transfer of income.
Instead, conditions are imposed that specify the terms on which the funds are provided by the donor to the
recipient. This worldwide practice of tying aid has stimulated a large volume of practice on the welfare
implications of transfers that are conditional on some action or policy change being implemented by the
recipient. Some countries don’t want to seek foreign aid. They want to utilize their own capability. But this
percentage is very low. So from our survey part there is 59 percent people think that the Government should
seek the foreign loan.
6. After infrastructural development, the maintenance should be done by
Answer Respondents
a. Public 6
b. Private 3
c. Public-private partnership 57
Figure 6: the maintenance after infrastructural development
9%
5%
86%
6. AFTER INFRASTRUCTURAL DEVELOPMENT, THE
MAINTENANCE SHOULD BE DONE BY
a. Public
b. Private
c. Public-private
partnership

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Building current, manageable, and solid foundation is basic for meeting the rising yearnings of
billions of individuals around the planet and for tending to the environmental change challenge.
Moreover, Foundation speculation helps raise monetary development rates, offers new financial
freedoms, and encourages interest in human resources.
In survey, 9% people think that after infrastructural development, the maintenance should be done
by Public, only 5% think that the maintenance should be done by Private and others 86% think
that maintenance should be done combined public and private by infrastructure development.
7. Who collects information on financial and non-financial performance of infrastructure?
Answer Respondents
a. Public 21
b. Private 30
c. Foreign loan 15
Figure 7: financial and non-financial performance
Building current, manageable, and solid foundation is basic for meeting the rising yearnings of
billions of individuals around the planet and for tending to the environmental change challenge.
Moreover, Foundation speculation helps raise monetary development rates, offers new financial
freedoms, and encourages interest in human resources. The maintenance of urban infrastructure,
32%
45%
23%
7. WHO COLLECTS INFORMATION ON FINANCIAL
AND NON-FINANCIAL PERFORMANCE OF
INFRASTRUCTURE?
a. Public
b. Private
c. Foreign loan

15
in particular, has a remarkable influence in the country's productivity growth. Both towns and
urban areas absorb the influences.
In survey, 9% people think that after infrastructural development, the maintenance should be done
by Public, only 5% think that the maintenance should be done by Private and others 86% think
that maintenance should be done combined public and private by infrastructure development.
From the survey there has been a clear concept that 86 percent of people think that the maintenance
should be done by Public-Private-Partnership (PPP) and that is definitely true in large purposes.
Worldwide practice recommended that only the Government should not take the maintenance
responsibility nor only the private sector should take but it is more preferable to take the
responsibility in public and private both..
8. Do you think infrastructure development projects are done to keep pace with projected GDP
growth?
Answer Respondents
a. Yes 36
b. No 3
c. Neutral 27
Figure 8: to keep pace with projected GDP growth
55%
4%
41%
8. DO YOU THINK INFRASTRUCTURE
DEVELOPMENT PROJECTS ARE DONE TO KEEP
PACE WITH PROJECTED GDP GROWTH?
a. Yes
b. No
c. Neutral

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The Economic growth of a country mainly depends on many factors. One of them is the increase
of GDP in the country. Nowadays most of the country invests in such a project where the nation
will be benefited such as an increase of GDP.
From the response, about 55% people think that obviously infrastructure development projects are
done to keep pace with projected GDP growth. About 41% give their opinion that they do not
agree with it and 5% selected neutral option.
9. Why investment is done for infrastructure development projects?
Answer Respondents
A. To increase GDP in the long run. 48
b. To decrease GDP in the long run 3
c. To remain the same GDP in the long run. 15
Figure 9: investment for infrastructure development projects
Infrastructure Investment is essential for the long term economic development of a country.
Infrastructure development creates the linkage between developed and undeveloped nations.
From this graph, in the words of 73% people it reflects that to increase GDP in the long run is
better for infrastructure development projects. Again 23% of people think of decreasing GDP in
the long run whereas only 5% people want to keep the same GDP in the long run.
73%
4%
23%
9. WHY INVESTMENT IS DONE FOR
INFRASTRUCTURE DEVELOPMENT PROJECTS?
A. To increase GDP in
the long run.
b. To decrease GDP in
the long run
c. To remain the same
GDP in the long run.

17
10. What are the criteria used by the central Budget Authority to the approval of infrastructure
project?
Answer Respondents
a. Benefits of users 6
b. Affordability 30
c. Value of money 30
Figure 10: the central Budget Authority to the approval of infrastructure project
The Central Budget Authority of Bangladesh works with many sectors. They must have to consider
many factors to classify the approval of the project.
In the choice of how infrastructure is delivered and who or whom should be in charge for its
improvement has implications for public sector discretionary control, value for money and
affordability. In many countries in the world, the choice of modality is often based on habit and
lacks specific criteria both for traditional infrastructure and private finance options.
If the challenge is to recommend greater cost efficiency then the market mechanism might be
benefited.
This survey shows that about 9% of people think that the Central Budget Authority of Bangladesh
may consider the benefits of users and the 45% people think there should be considered
affordability and value of money.
9%
46%
45%
10. WHAT ARE THE CRITERIA USED BY THE CENTRAL
BUDGET AUTHORITY TO THE APPROVAL OF
INFRASTRUCTURE PROJECT?
a. Benefits of users
b. Affordability
c. Value of money

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From the survey we see that maximum people who are participate in the survey think that
affordability and value of money are the best criteria to the central Budget Authority to the
approval of infrastructure project.
Findings:
The findings of impact of infrastructure development project in Bangladesh based on public
opinion can be stratified through a question-based approach
1. The type of consultation attempted may likewise contrast through various phases of the
arrangement advancement measure. consultation may be broken into three general stages:
a. Pre-announcement.
b. Informing until the project is made conduct.
Three types: Post-project conduct, during running project and after completion.
c. The project is being conducted and evaluated.
2. The various works mentioned in the time of formation of the government / in the election
promises are started after the election of the government. At present, various types of development
work are visible in our country. However, it is not possible to carry out the activities of all the
works at once without the promise of the government. In that case, implement the activities by
making a short list based on the importance of the work. Later other tasks were taken up from time
to time.
3. The government has been playing a special role in the development of the country, same
to the private sectors. Corruption in the public sector has increased significantly in this country as
compared to the private sectors. The activities that are going on under the government and the
activities that will be taken up in the future need to be looked at much more than the private sectors.
4. In the context of the answer to 4, it is concluded that with the development of the communication
system of a country, the economy and development of that country takes place. The power sector has
received the most project assistance in the revised annual development program. The country's industrial
establishments are dependent on power. In that case development of power sector is very important.
Ultimately, a country whose economy, power and industry are well developed is already a developed
country in terms of business.

19
5. Bangladesh gathers unfamiliar guide from different Bilateral and Multilateral Development
Partners around the globe. Among them are the World Bank, ADB, IDB, UN, European Union, and so on
Multilateral and Russia, Japan, China, Saudi Arabia, UK, Nordic nations, and so on are among the
reciprocal advancement accomplices. These unfamiliar help from advancement accomplices assume a
critical part in supporting Bangladesh's foundation and financial turn of events and high development. In
the 2017-18 monetary year, the most elevated unfamiliar guide (responsibility) from the World Bank was
gotten among the multilateral advancement accomplices, adding up to US 2,935.84 million. Among the
two-sided improvement accomplices, the most noteworthy responsibility came from Japan, adding up to
US 1,613.21 million. Then again, the World Bank delivered the biggest measure of unfamiliar guide among
multilateral sources in this monetary year, adding up to US 1,422.75 million. Japan has delivered a limit of
US 1,544.14 million in unfamiliar guide from respective sources.
6. The Government of Bangladesh issued the Policy and Strategy for Public Private
Partnership (PPP) so that Government can be facilitated the developed the core sector of public
infrastructure and services vital for the people of Bangladesh.
7. The overall financial position of Bangladesh looks sustainable, but there are concerns or
we should keep in mind that Bangladesh may be trapped in a low revenue-low capital spending
equilibrium, which is holding back Bangladesh’s economic growth potential. So it is very urgent
to collect all financial and non-financial performance.
8. Infrastructure development project must be done to pace with the project GDP growth. If
there is no increasing of GDP then the country fall financially.
9. In the long run a country is called developed if the country financially sustainable. If the
GDP growth remain same then there is no progress. So an infrastructure development project’s
main objective is to increase GDP growth.
10. Benefits of users and affordability should be ensured to choose the criteria of infrastructure
development project.

20
Chapter 05: Recommendation and Conclusion
5.1 Recommendation
1. In spite of the fact that in this stage we feel that most significant creating activities ought
to be held in open private organization which will be useful for the average citizens and
responsibility ought to be kept up every once in a while.
2. In the here and now Corruption in the public area has expanded altogether in this nation
when contrasted with the private areas. Moreover, Debasement counteraction components
regularly start with decides that disallow specific sorts of direct. Rules incorporate lawful
forbiddances against debasement, and criminal and common punishments coordinated at
both the general population and private areas yet in addition incorporate sets of accepted
rules and morals for public authorities.
3. All things considered improvement of the force area is vital. This requires exhaustive
changes in the force area, including tending to failures at various phases of force supply
and conveyance, and decreasing reliance on imported petroleum products.
4. We need greater responsibility which alludes to the capacity, everything being equal, to get
to government contract openings. Full openness is needed to build rivalry in open
acquirement and encourage the cooperation of little and medium-sized endeavors (SMEs)
in open obtainment.
5. The Government of Bangladesh issued the Policy and Strategy for Public Private
Partnership (PPP) but unfortunately most of them did not follow the proper way. So, we
should follow the all the Policy and Strategy for Public Private Partnership (PPP) issued
by the Bangladesh Government.
6. IN a developing nation setting like Bangladesh where GDP has hit 7% development rate
per annum, it is regularly said that framework megaprojects are critical drivers for speeding
up monetary development. For these creating economies, the benchmark of 7% monetary
development is typically required both for capital amassing to subsidize the super
undertakings and to receive the rewards of these ventures for boosting the development
rate to the mysterious two-digit number.
7. Best practices can assist governments with contributing foundation that extends the
economy and better serves the general population. Particularly essential Infrastructure like

21
transportation, force, water, and telecom frameworks supports financial movement and
catalyzes development and advancement.
8. As most of the mega projects are complex, use modern technology and involve complicated
financial arrangements such as proper planning and detailed feasibility study before
undertaking mega projects. Moreover, before undertaking a Government-to-Government
mega project, proper analysis and strong negotiation should be commenced. Make long
term plan for debt servicing.
5.2 Conclusion
This term paper focus on some topic like improvement of road connectivity, investment of Government
infrastructure projects and also economic growth which is relate with infrastructure projects. A brief
introduction and the problem statement of the subject considered are addressed in the first chapter. The
literature review deals with the Master plan, source, benefits and also discussed about GDP with is related
with infrastructure projects. The research methodology deals with questionnaire part and respondents. Data
analysis and major findings have enlightened us all the way in regards of the term paper. Finally, the final
chapter was devoted to the recommendation, conclusion, references and appendix.

22
References
1. Fan, H., Ismail, H. M., & Reza, S. M. (2018). Technological innovation, infrastructure and
industrial growth in Bangladesh: Empirical evidence from ardl and granger causality
approach. Asian Economic and Financial Review, 8(7), 964-985
2. Ascensão, F., Fahrig, L., Clevenger, A. P., Corlett, R. T., Jaeger, J. A., Laurance, W. F., & Pereira,
H. M. (2018). Environmental challenges for the Belt and Road Initiative. Nature
Sustainability, 1(5), 206-209.
3. https://www.eiu.com/n/infrastructure-enhancements-will-underpin-growth-in-dhaka/
4. Yao, X. (2003), “Infrastructure and Poverty Reduction—Making Markets Work for the Poor”; ERD
Policy Brief no. 14, Economics and Research Department, Asian Development Bank.
5. N. Yoshino, N. Hendriyetty, and S. Lakhia. 2019. Quality Infrastructure Investment: Ways to
Increase the Rate of Return for Infrastructure Investments(link is external). ADBI Working Paper
Series. No. 932. Tokyo: Asian Development Bank Institute.
6. Khandker, S.R., Bakht, Z. and Koolwal, G.B. (2006); “The Poverty Impact of Rural
Roads:Evidence from Bangladesh”, World Bank Policy Research Working Paper 3875.
7. Source: Global Infrastructure: How To Fill A $500 Billion Hole
(http://www.standardandpoors.com/spf/upload/Ratings_EMEA/HowToFIllAn500BillionHoleJan1
62014.pdf)
8. (Source: https://g20.org/wp-
content/uploads/2014/12/Infrastructure%20investment%20policy%20note.pdf)
9. Barro, Robert J., (1991). Endogenous Growth in a Cross Section of Countries. Quarterly Journal of
Economics 106: 404-444.
10. Barro, Robert J. and Xavier Sala-I-Martin (1992). “Public Finance in Models of Economic
Growth.” Review of Economic Studies 59: 645-661
11. Henckel, T., (2010). The Economics of Infrastructure in a Globalized World:Issues, Lessons and
Future Challenges, presentation given at the conferenceheld in Sydney, Australia on March18-19,
2010
12. Kingombe C. K.M. (2011). Maping the New Infrastructure Financing Landscape. London: verseas
Development Institute.

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