Climate funds misused in name of development

Pinky Akter

January 30, 2026

Climate funds misused in name of development

Although it may seem unbelievable that the climate change trust fund was used to build a park, that’s exactly what the previous fascist government did in the Khulna region. The park was built in memory of Sheikh Hasina’s late younger brother, Sheikh RusselThe ‘Sheikh Russel Eco Park’ was built at a cost of Tk 29 crore. Of this, Tk 8.67 crore was allocated from the climate fund. After the fall of the Hasina government, the park was renamed “Khulna Riverview Park.”Environmental organisations consider such projects inconsistent and an unjust waste of resources, especially in areas grappling with shortages of potable water and the intrusion of salinity that threatens the environment, agriculture, and public health.The project saw four different officials serving as project directors over time. However, none could clearly explain why such a project was undertaken with climate funds. The final project director was Abu Naser Mohsin Hossain, former Divisional Forest Officer of the Sundarbans West Forest Division. The project officially concluded in June last year, while Hasina remained in power.

“We suffer in saline water; our land is snatched away, diseases are spreading, and we don’t even have drinking water. While we die from water scarcity, the government builds a park. How will this park help us?” questioned Abu Sayem of Dakop in Khulna with a sigh.Bangladesh’s coastal belt is home to an estimated 35 to 40 million people across 19 districts—around 21.24% of the country’s population—who are exposed annually to cyclones, tidal surges, and rising salinity.Mahfuzur, Khulna Divisional Coordinator of the Bangladesh Environmental Lawyers Association (BELA), commented, “The Climate Change Trust Fund money is meant to help people endangered by climate impacts or to build their resilience. A park cannot be built with this money. Funds were wasted in the name of a park. Projects should be designed after consulting affected communities, but no such consultation was done. The funds were plundered under the guise of development.”Misappropriation in water tank distribution

In addition to the park, seven other projects received a combined allocation of Tk60.32 crore from the climate fund. The most severe misappropriation occurred in the distribution of water tanks.Md. Foysal Alam Gazi, a union council member in Ward No. 1 of Kailashganj Union, Dakop Upazila, alleged that Dipto Mondol, son of former Awami League MP Nani Gopal Mondol, collected Tk5,000–5,500 per water tank from affected households. On November 29 last year, Hafizul Sheikh of Banisanta Union filed a case with the Senior Judicial Magistrate’s Court in Dakop, accusing Nani Gopal Mondol, Dipto Mondol, and two others—Joni Sardar and Chhobed Ali Sardar of Garhkali village, Tildanga Union—of taking Tk1,080,000 from families but failing to deliver on promises.Reportedly, those who paid more received tanks earlier. In some cases, families got two or three tanks in exchange for bribes. Toward the end of the Hasina government, many who paid were defrauded when Nani Gopal Mondol and Dipto Mondol disappeared after August 5.Meanwhile, impoverished families enduring climate-induced hardship received no water tanks at all.

Due to rising salinity from climate change, more than 100 upazilas across 18 of the 19 coastal districts face an acute shortage of drinking water. The crisis has worsened in Sundarbans-adjacent regions. To alleviate the problem, water tanks were officially allocated. Yet, obtaining them requires enduring harassment and paying bribes. Though key political figures have fled, coastal communities remain trapped in a web of irregularities and corruption.In Khulna’s upazilas—Koyra, Dakop, Paikgachha, Dumuria, Batiaghata, Terokhada, and Rupsha—rainwater harvesting systems (using rooftop rainwater collected via pipes) are under installation.Under the project: Koyra is to get 8,192 systems, Dakop 5,826, Paikgachha 9,792, Dumuria 5,490, Batiaghata 2,534, Terokhada 4,926, Rupsha 3,245 systemsAccording to April 2025 data from the Khulna Public Health Engineering Department, the district has 76,559 water sources of different types: 24,112 deep tube wells, 13,426 shallow tube wells, 1,390 pond sand filters (PSF), and 32,636 rainwater harvesting units. Other sources include reverse osmosis (RO) units, solar desalination systems, SSTs, solar PSFs, ponds, and surface water treatment plants. Official records state that 12,073 of these sources are now defunct. As water bodies dry up, most PSFs no longer function effectively.

Regarding the irregularities in tank distribution, Superintending Engineer Md. Bahar Uddin Mridha said, “I have recently joined in Khulna. I have no information about this.”Corruption pattern in climate fundsTo tackle climate change, the government created three funds: the National Adaptation Programme of Action (NAPA) in 2005; the Bangladesh Climate Change Strategy and Action Plan (BCCSAP) in 2009; and, based on that, the Bangladesh Climate Change Trust Fund (BCCTF) in 2010. That same year, the Bangladesh Climate Change Resilience Fund (BCCRF) and Pilot Programme for Climate Resilience (PPCR) were also launched under World Bank oversight.Through the BCCTF alone, around $450 million has been spent to date. Annually, the government allocates approximately $1 billion to climate-related activities, with many donor agencies, including the World Bank, involved.

In 2020, Transparency International Bangladesh (TIB) and SOAS University of London jointly published research revealing extensive corruption and waste in climate projects. According to their findings, approximately 35% of adaptation project funding was embezzled, leading to incomplete or substandard embankments, cyclone shelters, and critical infrastructure.

In the coastal districts of Barguna, Satkhira, and Patuakhali, corruption in four projects ranged from 14% to as high as 77%. In seven mitigation projects, about 54.4% of funds—roughly Tk37 crore—were either misused or stolen. NGOs reportedly had to pay up to 20% in bribes to access funds. The most severe corruption was found in embankment projects in Satkhira, with 77% of allocated money misappropriated— the highest in the country.

The report cited political interference, awarding incompetent sub-contracts, and a lack of quality control as primary reasons why the embankments and infrastructure were neither durable nor effective, exposing communities to disasters.

During much of this time (2009–2013), Hasan Mahmud served as Forest and Environment Minister under the Awami League government. TIB’s findings showed particularly high irregularities in cyclone shelter construction in Barisal. Though Barguna saw somewhat less misappropriation, Satkhira’s embankment projects were the most corrupt.

The 2011 water management project in Barisal saw Tk140 crore—14.36% of its Tk975 crore budget—stolen. In 2016, embankment construction in Barguna and Patuakhali lost Tk16.8 crore of its Tk72 crore allocation to corruption—23.37%.

More alarmingly, in 2019, the Manu River Pump House project lost 63% of its funds to graft: Tk34.4 crore out of a Tk54.83 crore budget. In 2020, a Koyra embankment restoration project with a budget of Tk1,200 crore lost 76.92% of its money to waste and corruption.

Project approval through political interference

Between 2009 and 2024, Bangladesh implemented 281 climate projects. Of these, 138 were in coastal regions (Barisal, Chattogram, Khulna), while the Barind region (Rajshahi, Rangpur) and inland districts received only 143 projects. Recent years have seen projects in the Barind region decline to just 63, far short of meeting the real needs of vulnerable communities, according to the Center for Participatory Research and Development (CPRD).

CPRD’s research found that many projects were directly shaped by political influence, especially by MPs and local leaders. The allocation of funds often favoured less vulnerable areas associated with those in power, sidelining communities in genuine need. In 45% of projects, truly vulnerable populations were excluded. In 35%, local administrations took biased decisions.

CPRD Executive Director Md. Shamsuddoha said the greatest corruption occurred in embankment projects due to the opportunity for large-scale embezzlement—sometimes even in places that did not need embankments. He added, “Most projects are designed to serve political interests or to influence elections. Much of the funding goes to non-climate projects that do not improve the lives of climate-affected communities. As a result, Bangladesh’s climate vulnerability is only increasing.”

He recommended reforming the BCCTF board by including independent experts instead of only ministers, secretaries, and political figures. To ensure transparency, he also called for an independent commission to oversee fund disbursement and project monitoring.

Project expired, but remains unfinished

In 2020, the Ministry of Water Resources launched an embankment rehabilitation project in Koyra. Work began in December 2022, with the two-year project scheduled for completion by December 2024. The deadline has since been extended by another year, yet only 30% progress has been achieved, sparking frustration among local residents.

Imdadul Haque of Madinabad village said, “Though Tk1,200 crore was allocated for embankment repairs, hardly any visible progress has been made. Even after the fall of the Awami League government on August 5, the work hasn’t accelerated. In the rainy season, high tides flood the river. Many embankments remain vulnerable. The government must not allow this looting to continue. We demand prompt implementation.”

Mokbul Ahmed of Sathalia village added, “Cyclones and tidal surges have repeatedly destroyed embankments, roads, houses, schools, mosques, crops, and fish farms. We need a sustainable embankment. We don’t want to float in saltwater anymore. If the embankment were strong, our farms and ponds would sustain our families.”

Imtiaz Uddin, General Secretary of the Koyra Development Struggle Coordination Committee, said that when the Tk1,172 crore embankment project was approved on November 23, 2021, people were hopeful. But the work has progressed at a snail’s pace.

According to the Water Development Board (WDB), the project was entrusted jointly to Khulna and Satkhira-2 divisions. Through tenders, 25 contractors were selected to construct about 32 km of permanent embankments along the Kapotakkho and Shakbaria rivers. However, delays and disputes over land acquisition have caused tension between contractors and locals.

There are allegations that parts of the embankment are being built on private land without formal acquisition.

WDB Executive Engineer Md. Ashraful Alam said, “Out of the Tk1,172 crore budget, only 20–22% of funds have been released. Physical progress is 30%. The project period extends to December this year, and more time will be needed. No new contractors have been appointed; the existing ones remain.”