Dec deadline set for completing flood rehab project procedures
Friday, 31 August 2007
Shakhawat Hossain
The Ministry of Finance (MoF) has set December as the deadline to complete procedures relating to flood rehabilitation projects by the ministries and divisions to ensure utilisation of foreign aid and help maintain budgetary discipline, sources said.
It will be difficult for the MoF to accomplish the flood recovery programme and utilise the fund from donor agencies without completing the procedures by the deadline.
Sources fear any failure might put the MoF in a difficult situation to maintain fiscal discipline as the government has already diverted budgetary allocation equivalent to 0.8 per cent of the gross domestic product (GDP) to recoup the losses caused by the floods.
The MoF will issue directives in this regard shortly. It has already asked eight ministries and divisions involved in flood rehabilitation programme to submit flood-damage assessment, sources added.
Agriculture, communication, food and disaster management, local government, health and education are the leading ministries and divisions that are given responsibilities of flood rehabilitation in 39 affected districts.
The MoF has sought an additional aid worth US$150 million as budgetary support from donor agencies and countries to help achieve the projected growth and maintain macro-economic stability.
Without the foreign assistance, it said, the government will have to depend on borrowing, which will fuel inflation, slow down private sector investment and its growth, affect implementation of annual development programme (ADP) and hamper poverty reduction activities.
According to the MoF report placed at the meeting with donor agencies and countries, the severity of this year's flood is almost half of that of the 2004 flood.
The 2004 flood caused economic losses to the tune of US $2.0 billion. This includes losses worth $500 million in the agricultural sector.
Available statistics of the department of agricultural extension (DAE) said crops and vegetables on some 1.4 million acres of area have been affected due to the recent floods.
Of them, agricultural products on almost half of the area have been totally washed out.
The government has already earmarked Tk 77.00 billion as agricultural loans for the current fiscal aiming at recovering the flood losses on agricultural products.
The Palli Karmasahayak Foundation (PKSF) will distribute agricultural loan through non-governmental organisations (NGOs) at 10 per cent rate of interest.
Besides, the recent flood damaged 2,668 km of roads fully and 22,591 km partially. Education institutes numbering at 510 are totally destroyed and the number of affected ones is 6,672.
Some 87 kms of embankment are totally destroyed and some 727 kms suffered partial damage. The flood damaged 72 bridges and culverts fully and 1536 partially.
The Ministry of Finance (MoF) has set December as the deadline to complete procedures relating to flood rehabilitation projects by the ministries and divisions to ensure utilisation of foreign aid and help maintain budgetary discipline, sources said.
It will be difficult for the MoF to accomplish the flood recovery programme and utilise the fund from donor agencies without completing the procedures by the deadline.
Sources fear any failure might put the MoF in a difficult situation to maintain fiscal discipline as the government has already diverted budgetary allocation equivalent to 0.8 per cent of the gross domestic product (GDP) to recoup the losses caused by the floods.
The MoF will issue directives in this regard shortly. It has already asked eight ministries and divisions involved in flood rehabilitation programme to submit flood-damage assessment, sources added.
Agriculture, communication, food and disaster management, local government, health and education are the leading ministries and divisions that are given responsibilities of flood rehabilitation in 39 affected districts.
The MoF has sought an additional aid worth US$150 million as budgetary support from donor agencies and countries to help achieve the projected growth and maintain macro-economic stability.
Without the foreign assistance, it said, the government will have to depend on borrowing, which will fuel inflation, slow down private sector investment and its growth, affect implementation of annual development programme (ADP) and hamper poverty reduction activities.
According to the MoF report placed at the meeting with donor agencies and countries, the severity of this year's flood is almost half of that of the 2004 flood.
The 2004 flood caused economic losses to the tune of US $2.0 billion. This includes losses worth $500 million in the agricultural sector.
Available statistics of the department of agricultural extension (DAE) said crops and vegetables on some 1.4 million acres of area have been affected due to the recent floods.
Of them, agricultural products on almost half of the area have been totally washed out.
The government has already earmarked Tk 77.00 billion as agricultural loans for the current fiscal aiming at recovering the flood losses on agricultural products.
The Palli Karmasahayak Foundation (PKSF) will distribute agricultural loan through non-governmental organisations (NGOs) at 10 per cent rate of interest.
Besides, the recent flood damaged 2,668 km of roads fully and 22,591 km partially. Education institutes numbering at 510 are totally destroyed and the number of affected ones is 6,672.
Some 87 kms of embankment are totally destroyed and some 727 kms suffered partial damage. The flood damaged 72 bridges and culverts fully and 1536 partially.