CA seeks report from ERD on aid utilisation
Tuesday, 6 November 2007
FE Report
The Chief Adviser has asked the Economic Relations Division (ERD) to submit a report on the present status of funds pledged by donors against different development projects in the pipeline and procedural obstacles, if there is any, by November 8, official sources said.
Sources said poor flow of foreign aid during the first two months of the current fiscal year has prompted the Chief Adviser to seek a report on the issue from the ERD.
Another source, however, said the government had taken the initiative to speed up the implementation of foreign-funded projects and also to remove obstacles to the disbursement of funds against projects that are now in the pipeline.
ERD statistics showed that the government received only US$ 62.98 million foreign assistance during July-August period of the current fiscal 2007-08. The amount is well below the expected flow of aid.
Besides, according to ERD sources, disbursement of funds pledged by donors for various development projects is being delayed due to multiple reasons.
"Some ministries often are found to be uninterested to utilise loans from the donors due to stringent conditions. At times they fail to comply with the conditions set by the donors within the stipulated time which impedes disbursement," a senior ERD official said.
For example, the official said, the World Bank is yet to confirm a loan of $275 million pledged against the Siddhirganj power plant due to the failure of the agency concerned to comply with pre-conditions.
About the low pace of implementation in foreign-funded project, the ERD sources said, some agencies have performed badly as they could utilise only 5.8 per cent of the fund allocated to them during the first four months of the current fiscal.
The Chief Adviser has asked the Economic Relations Division (ERD) to submit a report on the present status of funds pledged by donors against different development projects in the pipeline and procedural obstacles, if there is any, by November 8, official sources said.
Sources said poor flow of foreign aid during the first two months of the current fiscal year has prompted the Chief Adviser to seek a report on the issue from the ERD.
Another source, however, said the government had taken the initiative to speed up the implementation of foreign-funded projects and also to remove obstacles to the disbursement of funds against projects that are now in the pipeline.
ERD statistics showed that the government received only US$ 62.98 million foreign assistance during July-August period of the current fiscal 2007-08. The amount is well below the expected flow of aid.
Besides, according to ERD sources, disbursement of funds pledged by donors for various development projects is being delayed due to multiple reasons.
"Some ministries often are found to be uninterested to utilise loans from the donors due to stringent conditions. At times they fail to comply with the conditions set by the donors within the stipulated time which impedes disbursement," a senior ERD official said.
For example, the official said, the World Bank is yet to confirm a loan of $275 million pledged against the Siddhirganj power plant due to the failure of the agency concerned to comply with pre-conditions.
About the low pace of implementation in foreign-funded project, the ERD sources said, some agencies have performed badly as they could utilise only 5.8 per cent of the fund allocated to them during the first four months of the current fiscal.