Fine-tuning development administration

Various government agencies have a very poor record as far as the rate of implementation of development projects initiated by them is concerned. It seems that the situation is turning from bad to worse with the passage of time.
The track record of the agencies in the implementation of the Annual Development Programme (ADP) for the current financial year is a case in point. Only 31 per cent of the ADP money could be utilised during the July-January period of the current financial year (2014-15), the lowest in four years.  
It seems that the executing agencies are also reluctant to adhere to the rules of the game as far as pushing of their development projects for approval by the Planning Commission (PC) is concerned.
The Roads and Highways Department (RHD) remains at the top of the list of agencies that usually push almost every year the development projects beyond the ones included in the original ADPs. These agencies do create pressure on the PC to include fresh projects when the PC prepares the revised ADP, usually during the third quarter of every fiscal.
The RHD, however, sends fresh projects for inclusion in the ADP itself coming under pressure from influential quarters, particularly ministers and ruling party lawmakers.
For instance, the RHD reportedly has sent more than 70 fresh development projects recently to the PC for their incorporation in the RADP notwithstanding the fact that its parent ministry--- the ministry of road transports and bridges--- will get no extra fund this fiscal.
The RHD already has 117 approved projects in the ADP and PC approved 10 more projects during the July-January period of this fiscal.
At times, the RHD or any other government agency demonstrates a sort of desperation to get a few projects included in the RADP since some very powerful people in the government want speedy implementation of the same.
In the event of inclusion, funds meant for projects included in the original ADP are often diverted to projects pushed forward out of political exigencies.
The entire affairs smacks of indiscipline in development planning and project implementation in the public sector.
Of late a move is being made by a government division to set a far more serious instance of indiscipline.  The instance relates to the approval of the 1320 megawatt'Moitree' power plant which has already raised lots of controversy due to its location at Rampal, a place close to the Sundarbans. Environmentalists have expressed their grave concern over setting up of the coal-fired power plant near the world's largest mangrove forests.  
However, what is being done by the power division has nothing to do with environment. The division is trying to get the approval of the PC for the power project that is essentially a private sector joint venture project. The PC, according to the government rules, is not mandated to scrutinise and approve private sector projects.
In September 2014, the PC, according to a report published in this paper recently, sent back a power division project proposal involving the $1.82 billion 'Moitree' (friendship) power plant on the ground of funding and ownership complexities. The power project will be installed by the Bangladesh-India Friendship Power Company (BIFPC) Private Limited.  The government has only a partial ownership of the proposed power project which will be largely financed by an external credit agency.
The existing rules do not permit the PC to approve any project that has private ownership in any form. The Bangladesh Power Development Board (BPDB) has only 15 per cent equity in the project. There are also complexities with regard to foreign borrowing since as an owner the BPDB would have to secure sovereign guarantee. But the government cannot extend such guarantee to any privately-owned project.
Yet the power division is reportedly trying to secure PC's approval for the power project. If the PC succumbs to such unlawful pressure it would set a bad precedence.
It is not that public sector agencies are only slow in project implementation. Graft, financial irregularities and wastage are also hurting the quality of project implementation. The donor agencies have been particularly concerned about the quality of the projects financed by them. With a view to addressing their concern, the government has put in place procurement law and rules in 2006 and 2008 respectively. But the desired level of results is yet to come by from the move because of the weak adherence to the procurement rules by the agencies concerned.
The indiscipline in the formulation of ADP or RADP coupled with irregularities in project execution does amply indicate major weaknesses in development administration of the country. Those need to be addressed with due seriousness at the earliest.
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