The Teesta River, a vital lake in northeastern Bangladesh, has long been a crutch for crops, livelihoods and wildlife in the region. However, a pressing need for a comprehensive control and restoration project has been exacerbated by seasonal variations, such as extreme flooding during downpours and severe water shortages during dry spells.
Bangladesh is faced with a difficult choice as the Teesta River Project discussions get more serious: If the nation rely on foreign investments from China and India, or should it following the self-reliant way it properly charted with the Padma Bridge and fund the project internally?
Drawing instructions from the Padma Bridge knowledge, this article examines the possible benefits and drawbacks of funding the Teesta River Project on its own.
Possible advantages from self-funding
Bangladesh’s resolve and endurance are demonstrated by its decision to use its resources to finance the Padma Bridge following the World Bank’s removal. The Padma Bridge, then nearing completion, is set to be a game-changer for the government’s system, enhancing communication and boosting economic growth. This victory has sparked a sense of satisfaction among Bangladeshis and demonstrated its ability to carry out large-scale infrastructure projects separately.
First of all, funding the Teesta River Project internally would give Bangladesh complete control over the site’s planning, execution, and supervision. This freedom ensures that the project is free of external influences that may come with foreign investments and that it is in line with national priorities and interests. Financial independence also allows for greater flexibility in decision-making and project implementation, which can be essential for addressing regional needs effectively.
Next, self-funding for the Teesta River Project can have a significant impact on the local market. The construction and maintenance phases of the project would make several tasks for local professionals, workmen and companies, providing a much-needed monetary stimulus. Additionally, using local resources and contractors may promote local industries ‘ progress, from the design to the technology sectors, creating a multiplier effect that benefits the economy as a whole.
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. Additionally, it provides a chance to strengthen local authorities and governance structures involved in project management and implementation. This capacity building is essential to the long-term viability and success of similar projects in the future.
Finally, self-funding can streamline project approval and implementation processes, reducing delays often associated with international funding and bureaucratic procedures. Additionally, having complete control over the project enables Bangladesh to change quickly and make informed decisions, keeping the project on track and meeting local needs.
Challenges of self-funding
The Teesta River Project’s financial constraints could have an impact on the national budget, one of its biggest challenges. Large-scale infrastructure projects require substantial investment, which could divert funds from other essential sectors such as health, education and social services. To balance these competing demands, careful planning and effective resource allocation are necessary.
The national debt burden could grow if the government decides to finance the project with domestic bonds or loans. Managing this debt responsibly is crucial to avoid long-term economic repercussions. It will be necessary to follow transparent and prudent financial management principles to prevent the project from compromising the nation’s fiscal stability.
Large-scale infrastructure projects call for a lot of technical and managerial expertise. It’s crucial to make sure local teams have the necessary abilities to handle complex projects, including those involving engineering and environmental management. Investing in capacity building and requesting technical assistance from international experts where necessary can help alleviate this issue.
Domestic funding involves financial risks, including inflation, currency devaluation, and economic downturns, which can impact the project’s feasibility and cost. Political unrest and policy adjustments also present a risk to the success and stability of the project. 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. It is crucial to balance these concerns with national sovereignty. Bangladesh must carefully negotiate any foreign involvement to ensure that the project’s economic or political autonomy is maintained in line with its national interests.
Charting a path forward
The Teesta River Project’s funding domestically or through foreign investments has a number of complicated 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, where Bangladesh funds a sizable portion of the project while selectively looking for foreign investments and technical assistance, might be the answer. This approach would make use of the advantages of self-funding while reducing its drawbacks, making sure that the Teesta River Project serves the interests of northern Bangladeshis and contributes to the country’s sustainable development.
Md Tanvir Rahman is a postgraduate student at Daffodil International University’s Department of Journalism, Media, and Communication.