BR spends only 10pc of ADP allocation in H1

Despite having higher allocation in Annual Development Programme (ADP), Bangladesh Railway (BR) could spend only 10 per cent in the first half of the current fiscal year due to mainly delay in implementing some big projects.
Sources said half-yearly performance of state railway operator was 13 percentage point lower than that of the same period last fiscal year.
However, they said BR's poor financial progress was related to almost zero progress of four foreign-aided projects during the period between July and December as the railway sector development agency could not make headway in signing a loan agreement or awarding contracts to start implementing those projects.
These include Padma Rail Link project, Kulaura-Shahbazpur section rehabilitation and 3rd and 4th Dhaka-Tongi dual gauge line and Tongi-Joydevpur dual gauge double line projects. Though BR signed commercial contract with a Chinese company to implement Padma rail link project, but it is yet to sign loan deal with Chinese government.
Two other projects are being implemented under Indian line of credit (LoC).
Official sources said due to delay in implementing these major projects, the Ministry of Railway is likely to seek Tk 16.16 billion less allocation in the revised ADP. BR has proposed allocation of Tk 5.61 billion less for the Padma rail link project in the revised ADP.
Of total foreign aid, 64 per cent was allocated for the Padma Rail Link project.
According to the official data until December 2017, BR was allotted Tk 124.35 billion for implementing 43 investment and technical projects during the FY 2017-18. Of the total, Tk 76.27 billion was shown as foreign aid.
Though overall progress of 43 projects was 10.86 per cent until December, progress of 18 government-funded projects was only 9.01 per cent. BR could spend Tk 4.33 billion against its allocation of Tk 13.5 billion for these projects. Progress of 19 foreign-funded projects was 12.02 per cent.
"We are worried mainly over Padma Rail Link project as delay in signing of loan deal may lead us behind spending fund in ADP in the current fiscal year," said a senior official.
The BR's performance in the last fiscal year was also unsatisfactory as it failed to spend the money set aside for the Padma Rail Link project for lack of loan agreement with Chinese Exim Bank until the end of FY 2016-17.
The authorities concerned expected that signing of the loan deal would be completed by December this year. But they could not sign the agreement due to reasons unknown.
However, poor performance in the LoC projects was related to delay in awarding work to contractors.
BR officials said due to getting much higher rate than the rate mentioned in the tender in Dhaka-Tongi and Tongi Joydevpur dual gauge projects, the project office invited fresh tender last month.
Another official, however, attributed shortage of manpower to poor performance of the railway sector development projects as almost half of the official posts in its various departments remain vacant.

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