ERD seeks info about reasons for lower funding requirements

The Economic Relations Division (ERD) has asked the ministries concerned, having demand for foreign assistance less than 20 per cent of their respective Revised Annual Development Programme (RADP), to inform it about the reasons for lower funding requirements, officials said.
The ERD asked on Monday last the ministries concerned to report by the current week.
"The ERD has asked the ministries concerned to send the reasons why the demand for funds has been reduced in RADP than ADP," additional secretary of the ERD Farida Nasreen told the FE on Tuesday.
She, however, said the authorities concerned will take next course of actions immediately after getting replies from the ministries concerned.
RADP for the current fiscal year is being prepared now. On December 30 and 31 last year, the ERD held meetings with project implementing ministries, divisions and agencies on RADP, a source concerned said.
Demand for project assistance proposals has been reduced in the RADP than the ADP, according to the data presented by different ministries and its divisions in the meetings. As a result, the overall investment target set by the government may not be achieved, he said.
Besides, release of foreign assistance mainly depends on implementation of the projects. So, it is badly needed to increase 'utilisation' rate of the projects funded by donors, he added.
Project implementing agencies spent only 17 per cent of the Tk 970 billion ADP outlay in the first five months (July-November) of the current fiscal year.
Earlier, the planning minister expressed his dissatisfaction over the 17 per cent implementation rate of ADP projects by the ministries and agencies in the last five months, sources concerned said.
In the corresponding period last year, government agencies spent 20 per cent of the ADP outlay worth Tk 860 billion.
The government has undertaken a Tk 970 billion ADP in the current fiscal year, which ends in June 2016, for executing more than 1,155 development projects.
According to an IMED report, some major ministries and divisions, including Power Division, Road Transport and Highways Division, Bridges Division, Education Ministry, Health and Family Welfare Ministry, and Railway Ministry, were lagging behind the mark.
Railway Ministry and Bridges Division spent only 13 per cent each, Energy Division and Water Resources Ministry 10 per cent each, Road Transport and Highways Division 14 per cent, Power Division 18 per cent and Education Ministry 17 per cent and Health and Family Welfare Ministry 17 per cent of their total allocations during the July-Nov period.
Planning Ministry officials said implementing agencies usually take time to start implementing the projects in the first few months of a fiscal year.
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