Only one-fifth of digital connectivity project done in 4.5 years

A major government ICT infrastructure project has been hit by severe delays and allegations of financial and administrative irregularities, according to a government evaluation report.

The project, titled Digital Connectivity Establishment, was approved on November 23, 2021, with a budget of Tk 5,923.72 crore. It aims to expand broadband and ICT infrastructure to schools, health centres and government offices nationwide. Implementation was scheduled from December 2021 to November 2026.

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However, progress has remained far behind target. By April this year, only 18.4 percent of the work had been completed. As completion by the deadline is now unlikely, project authorities have proposed a three-year extension until November 2029.

The budget has also been significantly reduced. A planned loan agreement with China was never signed, and under the second revision, the allocation has been cut to Tk 2,545.15 crore, a reduction of Tk 3,378.58 crore.

PROCUREMENT DELAYS AND FINANCIAL IRREGULARITIES

The Implementation Monitoring and Evaluation Division (IMED) report identifies prolonged procurement delays as a key reason for slow progress. A major tender issued on August 22, 2022, resulted in a contract being signed only on February 1, 2024, with the evaluation report approved only on January 2, 2024—an unusually long 18-month procurement cycle for an IT project.

The Request for Proposal (RFP) process also moved slowly, with five evaluation meetings held between July and December 2023, reflecting weak coordination and decision-making.

The report also details multiple financial and administrative irregularities found by external auditors. In FY23, findings included contracts awarded outside the Development Project Proposal, consultant appointments without quarterly reports, overspending beyond approved limits, excess training costs, payments made without goods being delivered, and missing asset verification records.

In FY24, auditors raised 16 objections, including a reported loss of Tk 24.53 crore due to irrational pricing in router procurement and irregularities in renovation and contracting works. In FY25, objections fell to 11, but auditors flagged an irregular payment of Tk 92.26 crore in optical fibre cable procurement.

While some objections have been partially resolved, most remain unsettled. The report also notes that no internal audit has been completed in over four years, weakening oversight and accountability.

STRUCTURAL FLAWS AND SERVICE GAPS

IMED found deeper structural problems in project design, calling the centralised system for internet procurement and management a “serious conceptual error” that limits competition and contradicts decentralised service principles. Institutions cannot access local market options and are tied to centrally selected providers, with restrictions on switching even after 30 days, requiring approval from two upazila officials thereafter.

Internet connectivity costs average Tk 34,326 per institution, significantly above market rates. While access has expanded, service quality remains inconsistent, with frequent complaints of slow speeds, disconnections and unstable connections, especially in rural areas, disrupting online operations in schools and offices.

Field inspections also identified construction defects in several upazila ICT centres, including roof leaks, substandard materials, dampness and plumbing issues, while some routers and connections were found non-functional or only partially operational.

The report noted uneven procurement practices, including offline processing instead of the e-Government Procurement (e-GP) system, further reducing transparency. One infrastructure package took 48 days from tender opening to contract signing, and another 52 days, both exceeding acceptable timelines.

“To ensure sustainable project implementation and financial transparency, strict compliance with procurement rules, regular asset verification, and prompt settlement of audit objections are essential,” the report said.

IMED recommended decentralising procurement and service management to the upazila level, mandating full use of e-GP, establishing a central monitoring system, and accelerating the resolution of audit objections through improved coordination.