A government-funded project to expand and upgrade the electricity distribution network across the Sylhet division has fallen nearly seven years behind schedule, according to a monitoring report by the Implementation Monitoring and Evaluation Division (IMED).
The IMED report blamed frequent changes in leadership, delayed land acquisition, and weak initial planning for the prolonged delays.
The project, titled “Power Distribution System Development Project, Sylhet Division,” is being implemented by the Bangladesh Power Development Board (BPDB) under the Power Division.
It covers 10 upazilas and city corporation areas across four districts: Sylhet, Sunamganj, Habiganj, and Moulvibazar.
The project aims to construct 13 new 33/11 kV substations, upgrade or renovate seven existing substations, install 2,098 kilometres of new distribution lines, build 49 kilometres of underground lines and renovate 2,739 kilometres of existing distribution lines.
Project timeline revised repeatedly
The Executive Committee of the National Economic Council (ECNEC) approved the project on 3 May, 2016, at an estimated cost of Tk1,890.85 crore, with completion scheduled for March 2019.
The project has since undergone multiple revisions.
The first revision, approved in July 2019, increased the cost to Tk2,052.95 crore and extended the deadline to June 2021. The implementation period was later extended by another year, to June 2022, without any increase in cost.
A second revision, approved in March 2023, reduced the project cost to Tk1,840.87 crore, including Tk1,723.04 crore in government funding and Tk117.83 crore from BPDB’s own resources, while extending the completion deadline to June 2024.
The deadline was subsequently pushed back again to June 2026 without any additional allocation.
A third revision is now under consideration, which proposes to further reduce the project cost to about Tk1,723.46 crore.
As of March 2026, financial progress stood at 85.04%, while physical progress had reached around 98%, according to the IMED survey.
Delays linked to planning and management failures
The IMED report identified frequent changes of project director, delays in tendering, a weak initial feasibility study, prolonged land acquisition, delayed handover of work sites and slow approval of final designs as the principal reasons for the implementation delays.
Of the 13 planned substations, 12 have already been completed and commissioned, adding 533 MVA of capacity to the national grid. Around 4,783 kilometres of distribution lines have also been constructed or renovated.
However, one substation under Package-14 in Habiganj remains unfinished and must be completed by June 2026, the report said.
The report also noted that contracts awarded to a single contractor for upgrading seven existing substations had to be terminated following recommendations by the project’s steering committee, causing further delays.
Land acquisition emerged as one of the most significant bottlenecks. Of the eight sites requiring land acquisition, seven have been completed.
However, each acquisition took approximately one and a half to two years after BPDB submitted proposals to the respective deputy commissioner’s office.
Other factors contributing to the delays included the Covid-19 pandemic, recurrent flooding and heavy rainfall, difficult access to haor areas, rising construction material prices and volatility in foreign exchange rates.
The report further found that meetings of the Project Steering Committee and Project Implementation Committee were not held regularly, weakening project oversight and coordination.
IMED recommendations
IMED recommended strengthening supervision to ensure completion of the remaining Habiganj substation and outstanding distribution line works without compromising quality.
For future projects, it recommended conducting independent third-party feasibility studies before project approval, in line with the Planning Division’s 2022 circular, rather than after implementation begins.
The report also urged authorities to initiate land acquisition at the very beginning of project implementation through a coordination committee involving the relevant ministry, district administration and implementing agency, supported by monthly progress reviews.
To improve project management, IMED recommended adhering to the government’s 2022 circular governing the appointment and removal of project directors to avoid frequent leadership changes.
It also stressed the use of construction materials that comply with the latest Bangladesh National Building Code.
In addition, BPDB was advised to preserve technical documents, including as-built drawings and building manuals, provide training for technical personnel and promptly resolve outstanding audit objections to strengthen accountability and transparency.
Despite the prolonged delays, the report concluded that the project has significantly enhanced the reliability and quality of electricity supply in Sylhet division, helped meet growing electricity demand and reduced system losses across the distribution network.
With the current completion deadline set for June 2026, IMED said the project director must expedite the remaining work to ensure timely completion.