Govt won't downsize ADP at this stage: Mirza Aziz

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FE Report
Finance adviser Mirza Azizul Islam said Thursday the government will not downsize the Annual Development Programme (ADP) at this stage although its implementation has suffered a setback due to recurrent floods and devastating cyclone.
"Although the ADP implementation rate is not satisfactory in the first quarter, we will not cut its size immediately," Islam told reporters emerging from the meeting of the Executive Committee of the National Economic Council (ECNEC) Thursday.
According to sources, only about 8.0 per cent of ADP was implemented in the first quarter of current fiscal (July-September).
Presided over by Chief Adviser Fakhruddin Ahmed, the ECNEC approved a rehabilitation "package programme" for the flood-hit areas along with 14 other development projects involving a total cost of Tk 52.01 billion.
Out of the amount, donors will provide Tk 30.25 billion as project assistance while the government will mobilise the rest of the funds from its own sources for implementing the 15 projects.
Successive floods in July-September period caused extensive damage to the property and crops in most parts of the country. The Planning Commission with the support of Asian Development Bank (ADB) has taken a rehabilitation programme styled "Second Flood Damage Rehabilitation Programme" at a cost of Tk 12.14 billion.
For the flood-rehabilitation programme, the ADB will provide Tk 8.60 billion and the government will mobilise the rest Tk 3.54 billion.
The flood rehabilitation programme will cover some development projects under Water Resources Ministry, Local Government Division (LGD), Water Development Board, Local Government and Engineering Department (LGED) and Roads & Highways Department (RHD) under the Communications Ministry.
To a query, the finance and planning adviser replied: "Usually, we trim the ADP in the last quarter of the fiscal. As the ADP was never fully implemented in the past, it is not necessary to slash the original ADP at this moment."
"The project implementing agencies have informed us that the recurrent floods and recent cyclone Sidr are hampering the project execution," he said adding "we will have a series of review meetings shortly with the ministries and agencies to expedite the implementation rate."
The approved projects are: Tk 1.76 billion Vulnerable Group Development for the Ultra-Poor (VGD-UP) Project, Tk 14.66 billion Dhaka Water Supply Development Project, Tk 850 million project on production, preservation and distribution of rice, wheat and jute seeds at the farmers' level, Tk 280 million project on production, preservation and distribution of lentil, oil and onion seeds at the farmers' level and Tk 4.15 billion project for conversion of Dhaka-Joydevpur metre-gauge railway line into duel-gauge line.
Islam told newsmen that the ECNEC meeting also sent back the Danish-government funded "Sayedabad Water Treatment Plant (Phase-II) Project" for further scrutiny.
Advisers and secretaries of different ministries, the cabinet secretary, the principal secretary to the Chief Adviser and high officials form different ministries were present at the meeting.