An inter-ministerial meeting, chaired by Finance Minister M Saifur Rahman yesterday decided that two ministries and five government agencies would jointly implement the project. They are the ministries of land and environment, Water Development Board, Roads and Highways Department, Dhaka Wasa, Dhaka City Corporation and Rajuk.

A steering committee will ensure coordination among them for speedy implementation of the project.

The meeting also decided to seek the World Bank's support for a feasibility study on the project and for capacity building of the ministries and agencies concerned.

It was however not decided when the project would take off.

"It is a very important project," Saifur told journalists after the meeting. "It has multiple components and huge monetary involvement. We need to decide first how much of the funds we can arrange locally and how much from external sources. This is why we want to scrutinise it before making a final decision."

He added, "I don't think we can start this enormous project by the next financial year."

The inter-ministerial meeting focussed on two projects -- dredging of rivers around the capital and environmental improvement, and Dhaka flood protection embankment-cum-eastern bypass road multipurpose project.

The planning ministry estimated the cost of the dredging and environmental improvement project at Tk 650 crore. The government on March 24 wrote to the World Bank (WB) seeking assistance for it. The WB is yet to respond.

The multipurpose project with an estimated cost of Tk 2475 crore was originally designed in 1999 following a WB study. The Executive Committee of the National Economic Council (Ecnec) approved it the same year and it was supposed to be completed by 2004.

But lack of funds stalled the process.

The government in September 2003 sought the WB's cooperation for this scheme. After a year, the WB responded saying that since various government agencies are involved in it, a separate body should be formed first for its implementation.

Moreover, the WB's affiliate Infrastructure Investment Facilitation Centre (IIFC) submitted a concept paper proposing formation of a body -- East City Development Company -- which would collect funds from development partners and private entities.

Based on its partial study in 1998, the WB said much land has to be acquired for the project, and it might create social problems. The government should consider how to handle these problems before deciding on arranging the funds.

The government estimates that 1,494 hectares of land is to be acquired for the project.

"There is no denying the fact that this project has become absolutely necessary for the city. Our demands for water, electricity and commuting are increasing and we have to meet them," Saifur said.