The Teesta River, a vital waterway in northern Bangladesh, has long been a lifeline for agriculture, livelihoods and biodiversity in the region. However, seasonal variations, with excessive flooding during monsoons and acute water shortages during dry spells, have created a pressing need for a comprehensive management and restoration project.
As discussions around the Teesta River Project intensify, Bangladesh faces a critical choice: Should the country rely on foreign investments from India and China, or should it follow the self-reliant path it successfully charted with the Padma Bridge and fund the project domestically?
This article explores the potential benefits and challenges of own-funding the Teesta River Project, drawing lessons from the Padma Bridge experience.
Potential benefits from self-funding
Bangladesh’s decision to fund the Padma Bridge from its resources following the World Bank’s withdrawal is a testament to its resilience and determination. The Padma Bridge, now nearing completion, is set to be a game-changer for the country’s infrastructure, enhancing connectivity and boosting economic growth. This success has instilled a sense of national pride and demonstrated Bangladesh’s capacity to undertake large-scale infrastructure projects independently.
First of all, funding the Teesta River Project domestically would grant Bangladesh full control over the project’s planning, implementation, and management. This autonomy ensures that the project aligns with national interests and priorities and is free from external influences that might accompany foreign investments. Economic sovereignty also allows for greater flexibility in decision-making and project execution, which can be crucial for addressing local needs effectively.
Second, investing in the Teesta River Project through self-funding can significantly impact the local economy. The construction and maintenance phases of the project would create numerous jobs for local engineers, laborers and businesses, providing a much-needed economic stimulus. Moreover, using local resources and contractors can foster the growth of domestic industries, from construction to technology sectors, creating a multiplier effect that benefits the broader economy.
Third, undertaking a large-scale project like the Teesta River Project domestically can enhance the skills and expertise of local professionals, contributing to human resource development. It also presents an opportunity to strengthen local institutions and governance structures involved in project management and implementation. This capacity building is crucial for future similar projects’ long-term sustainability and success.
Finally, self-funding can streamline project approval and implementation processes, reducing delays often associated with international funding and bureaucratic procedures. Additionally, having full control over the project allows Bangladesh to adapt quickly to changing circumstances and make timely decisions, ensuring that the project remains on track and responsive to local needs.
Challenges of self-funding
One of the most significant challenges of self-funding the Teesta River Project is the financial strain it could impose on the national budget. Large-scale infrastructure projects require substantial investment, which could divert funds from other essential sectors such as health, education and social services. Careful planning and efficient resource allocation are essential to balance these competing demands.
If the government decides to finance the project through domestic loans or bonds, that could increase the national debt burden. Managing this debt responsibly is crucial to avoid long-term economic repercussions. Transparent and prudent financial management practices will be essential to ensure that the project does not compromise the country’s fiscal stability.
Large-scale infrastructure projects require extensive technical and managerial expertise. It’s important to ensure that local teams have the necessary skills to handle complex aspects of the project, from engineering to environmental management. Investing in capacity building and seeking technical assistance from international experts where necessary can help mitigate this challenge.
Domestic funding involves financial risks, including inflation, currency devaluation, and economic downturns, which can impact the project’s feasibility and cost. Political instability and policy changes also pose risks to project continuity and success. Robust risk management strategies, including contingency planning and strong governance mechanisms, are essential to address these challenges effectively.
India and China have both expressed interest in investing in the Teesta River Project, reflecting the region’s geopolitical significance. While foreign investments can bring in much-needed capital and technical expertise, they often come with strings attached. Balancing these interests with national sovereignty is crucial. Bangladesh must carefully negotiate any foreign involvement to ensure that the project remains aligned with its national interests and does not compromise its economic or political autonomy.
Charting a path forward
The decision to fund the Teesta River Project domestically or seek foreign investments is complex and has significant implications for Bangladesh’s future. The success of the Padma Bridge provides a strong case for self-funding, demonstrating the country’s capacity for self-reliance and the benefits of economic sovereignty. However, the challenges of financial strain, debt burden and technical expertise must be carefully managed.
A hybrid approach, in which Bangladesh funds a significant portion of the project while selectively seeking foreign investments and technical assistance, could provide a balanced solution. This approach would leverage the benefits of self-funding while mitigating its challenges, ensuring that the Teesta River Project serves the best interests of the people of northern Bangladesh and contributes to the nation’s sustainable development.
Md Tanvir Rahman is a Post Graduate Student in the Department of Journalism, Media and Communication of Daffodil International University.
