Parliamentary Body To Investigate Karnaphuli Tunnel Financial Losses As 256 Projects Face Delays

🏛 A parliamentary standing committee on the Planning Ministry has decided to investigate the implementation of the Karnaphuli Tunnel project and the reasons behind its current financial losses. The committee took the decision at its second meeting at the Jatiya Sangsad Bhaban on Saturday, UNB reports. The committee discussed the tunnel''s feasibility study, implementation process and financial losses, and decided to hold a detailed discussion on the matter at its next meeting.

📊 The committee also unanimously agreed to examine the project''s implementation and financial losses through a proper investigation, with the relevant authorities expected to provide the committee with necessary assistance. The meeting also reviewed delays in development projects under the Planning Ministry and the reasons for extending their implementation periods. According to the ministry, the implementation periods of 256 projects were extended in the 2025-26 fiscal year.

🏛 Karnaphuli Tunnel project background

The Karnaphuli Tunnel project — also known as the Karnaphuli Underwater Tunnel — is a major infrastructure project designed to connect the two banks of the Karnaphuli River in Chattogram. The tunnel was conceived as a way to reduce traffic congestion in Chattogram city and to improve connectivity between the port area and the broader Chattogram region. The project has been a flagship infrastructure investment — but it has faced multiple challenges, including cost overruns, delays, and questions about its financial viability.

The parliamentary committee''s decision to investigate the tunnel''s financial losses suggests that there are significant concerns about the project''s economic performance. Large infrastructure projects are often subject to cost overruns and revenue shortfalls, but the scale of the Karnaphuli Tunnel''s financial losses appears to be substantial enough to warrant parliamentary scrutiny. The investigation will help determine whether the losses are the result of implementation challenges, design flaws, demand overestimation, or other factors.

👥 The broader project delay problem

The Karnaphuli Tunnel investigation is part of a broader pattern of project implementation challenges in Bangladesh. The Planning Ministry reported that 256 projects had their implementation periods extended in FY26 — a striking figure that reflects the systemic challenges in project execution. The ministry attributed the extensions to several factors:

• ⚠ Land acquisition complications: Land acquisition has historically been a major bottleneck for infrastructure projects in Bangladesh, with disputes over land ownership, valuation, and compensation causing significant delays.
• ⚠ Dependence on imports: Many projects depend on imported machinery, equipment, and materials — which can be delayed by international supply chain disruptions, customs clearance issues, and foreign exchange constraints.
• ⚠ Difficulties in appointing project directors: The appointment of qualified project directors has been a challenge, particularly for complex projects that require specialised technical expertise.
• ⚠ Inadequate feasibility studies: Many projects have been approved without adequate feasibility studies — leading to design changes, cost overruns, and implementation challenges after work begins.
• ⚠ Delays in releasing funds: Funds for project implementation have been delayed due to fiscal constraints, bureaucratic procedures, and coordination challenges between the Finance Division and the Planning Ministry.
• ⚠ Conflicts between ministries: Inter-ministerial conflicts over project design, implementation responsibilities, and resource allocation have caused delays.

💰 Economic cost of project delays

The economic cost of project delays is substantial. When projects are delayed, the benefits that they are expected to deliver — such as improved transport connectivity, enhanced port capacity, or increased power generation — are also delayed. This means that the economic returns from the investment are pushed further into the future, reducing their present value and potentially making some projects economically unviable.

Project delays also impose additional costs through inflation, as the prices of construction materials, labour, and equipment rise over time. The original project budgets, often calculated years before actual implementation, become inadequate — requiring supplementary allocations that strain the government''s fiscal position. For a country with a revenue-to-GDP ratio of just 7% and significant macroeconomic pressures, the cost of project delays is particularly burdensome.

🤝 Looking ahead

For Bangladesh, the parliamentary committee''s investigation of the Karnaphuli Tunnel — and the broader review of project delays — is a positive signal that there is growing accountability for infrastructure project performance. The committee''s recommendations could help address the systemic challenges that have caused delays and cost overruns across the project portfolio.

The coming months will show whether the investigation translates into concrete reforms. If the committee''s work leads to improved project selection, better feasibility studies, stronger implementation management, and more timely fund release, the benefits could be substantial — both in terms of the specific projects affected and the broader efficiency of Bangladesh''s development investment programme. The Karnaphuli Tunnel investigation is a test case for whether parliamentary oversight can drive meaningful improvement in infrastructure project delivery.