Pragmatic plan for development projects

The directive of the Prime Minister Sheikh Hasina to the relevant authorities late last week for preparation of development projects in line with the current prices of construction materials and currency exchange rates is, in effect, a forewarning against flawed planning leading to undesirable revisions that often typify the country's development projects. The prime minister gave such directives while chairing the 1st meeting of the Executive Committee of the National Economic Council (ECNEC) of the current fiscal year (FY24) held on July 18. In the meeting, ECNEC endorsed a total of 15 projects involving an estimated cost of Tk 180.10 billion. At a press conference after the meeting, Planning Minister MA Mannan said, the premier in the meeting noted that the prices of construction materials like iron, cement, stones and bricks are experiencing an upward trend, for which the prices of such items often go up during the project implementation period compared to the time of framing the rate schedule of development projects. In order to avoid such situation arising from price rise of materials as well as fluctuating forex exchange rate, in particular of the US dollar, the PM reportedly asked the officials concerned to accommodate these issues at the time of project planning.

The directive reflects only a part of the overall picture. True, escalation of cost of materials during the implementation phase calls for revision of project budget to a higher level, but equally important is the time over-run that also necessitates upward revision. It is generally acknowledged that absence of required drive and less than efficient management skills are often responsible for delays in project implementation, requiring revision. In fact, save rare exceptions, most development projects suffer from time over-run. Hence revisions, sometimes repeated, are required to somehow complete projects.

This being the reality, it is efficient management that accounts for a good deal of success in project implementation. However, saying so is not to disregard rising cost of materials that at times impede project implementation, requiring revision. In the ECNEC meeting the head of the government also mentioned another aspect in connection with framing development projects that, too, has become an unwelcome feature of the country's project culture. It is the duplication of similar projects in the same area which the PM has cautioned against.

It is true that over the years there has been a considerable expansion in the country's Annual Development Plan (ADP) with not only the increase in the number of projects and money allocated in the national budget but also the widening of the range of projects undertaken. However, the problems that persisted in the past seem to have remained despite the expansion and experiences gained from project execution. The PM has rightly pointed out some of the fundamental problems embedded in the planning of development projects. It is now for the authorities concerned to be mindful, as far as possible, of avoiding the same mistakes and overcoming the lapses.