$1.35b foreign aid received in first 9 months
Sunday, 17 May 2009
FHM Humayan Kabir
Bangladesh has received a record foreign aid worth US$1.35 billion in the first three quarters of the current financial year despite the global economic meltdown that resulted in slashing of aid to poor nations, officials said Tuesday.
The assistance is $15 million higher than $1.33 billion worth of assistance the country received during the same period last financial year 2008, a senior economic relations division official told the FE.
"Challenging many predictions, foreign aid flow to the country has still been showing positive growth. The economic downturn has not affected the external aid flow to Banfladesh," the official said.
The multilateral donors are still providing adequate financial support to our development works and they are committed to continue their assistance in future days, the ERD official said.
The Asian Development Bank (ADB) and the World Bank are on the top two positions in terms of aid disbursement until March 2009 whereas the largest bilateral donor Japan's support has slipped.
ADB has given $561.33 million and the World Bank $341.42 million during July-March period of the current FY2009 while Japan has bankrolled only $30 million, the ERD said.
The government has revised its foreign aid receipt target to $1.95 billion from the original estimation of $2.14 billion in the current financial year ending June 30 following to poor performance in executing projects.
Yet the ERD sees the target now looked "very much achievable."
"If the government agencies could execute their projects efficiently in due time, the country will receive more aid than the estimated target," another ERD official said.
The foreign aid disbursement depends on implementation of the donor-funded projects. The donors usually provide their committed funds in phases during execution of the development projects.
In the last financial year the country received pledges worth $2.084 billion but only $822.42 million was disbursed in the first two quarters (July-December '07).
The ERD official has rejected any concern that the aid flow would dip since the rich countries were engrossed in bailing out their own economies rather than bankrolling the poor nations.
"We don't think the global recession will have any major impact on our external aid flow in the near future as the donors are still keen to support us and upholding their previous commitments," the official said.
Between first July 2008 and 27th April 2009, the donors have committed $2.36 billion worth of loan and grants for Bangladesh including a sizeable amount to the country's ailing power sector, he said.
A spokesman of the World Bank, the biggest donor of Bangladesh, said major aid agencies and bilateral donors don't have any plan to cut aid to Dhaka despite themselves being affected by the global recession.
"We've adequate funds to help Bangladesh. We will be continuing our support to the country despite the global economic fallout," the spokesman told the FE.
Many people including some donors had earlier forecast that Bangladesh's foreign aid flow would be hit hard along with its export and manpower sectors in the wake of the global meltdown.
Out of the record $1.35 billion aid during firth three quarters until March 2009, the country has received $972.05 million as loan and $376.92 million grant.
Bangladesh has received a record foreign aid worth US$1.35 billion in the first three quarters of the current financial year despite the global economic meltdown that resulted in slashing of aid to poor nations, officials said Tuesday.
The assistance is $15 million higher than $1.33 billion worth of assistance the country received during the same period last financial year 2008, a senior economic relations division official told the FE.
"Challenging many predictions, foreign aid flow to the country has still been showing positive growth. The economic downturn has not affected the external aid flow to Banfladesh," the official said.
The multilateral donors are still providing adequate financial support to our development works and they are committed to continue their assistance in future days, the ERD official said.
The Asian Development Bank (ADB) and the World Bank are on the top two positions in terms of aid disbursement until March 2009 whereas the largest bilateral donor Japan's support has slipped.
ADB has given $561.33 million and the World Bank $341.42 million during July-March period of the current FY2009 while Japan has bankrolled only $30 million, the ERD said.
The government has revised its foreign aid receipt target to $1.95 billion from the original estimation of $2.14 billion in the current financial year ending June 30 following to poor performance in executing projects.
Yet the ERD sees the target now looked "very much achievable."
"If the government agencies could execute their projects efficiently in due time, the country will receive more aid than the estimated target," another ERD official said.
The foreign aid disbursement depends on implementation of the donor-funded projects. The donors usually provide their committed funds in phases during execution of the development projects.
In the last financial year the country received pledges worth $2.084 billion but only $822.42 million was disbursed in the first two quarters (July-December '07).
The ERD official has rejected any concern that the aid flow would dip since the rich countries were engrossed in bailing out their own economies rather than bankrolling the poor nations.
"We don't think the global recession will have any major impact on our external aid flow in the near future as the donors are still keen to support us and upholding their previous commitments," the official said.
Between first July 2008 and 27th April 2009, the donors have committed $2.36 billion worth of loan and grants for Bangladesh including a sizeable amount to the country's ailing power sector, he said.
A spokesman of the World Bank, the biggest donor of Bangladesh, said major aid agencies and bilateral donors don't have any plan to cut aid to Dhaka despite themselves being affected by the global recession.
"We've adequate funds to help Bangladesh. We will be continuing our support to the country despite the global economic fallout," the spokesman told the FE.
Many people including some donors had earlier forecast that Bangladesh's foreign aid flow would be hit hard along with its export and manpower sectors in the wake of the global meltdown.
Out of the record $1.35 billion aid during firth three quarters until March 2009, the country has received $972.05 million as loan and $376.92 million grant.