Foreign aid flow falls in Q1
Wednesday, 27 October 2010
FHM Humayan Kabir
The foreign aid flow fell in the first quarter this fiscal at US$278 million compared with $358.31 million received during the corresponding period last year, officials said Monday.
Finance ministry officials, however, said the amount came against commitment of $1.68 billion for July-September period of fiscal 2010-11.
"We have received $169.06 million in loans and $108.62 million worth of grants in July-September period," a senior economic relations division (ERD) official told the FE.
He said the flow of foreign aid dropped in the first quarter this fiscal due to inefficiency of the project implementing agencies.
The government project executing agencies have spent only nine per cent of total Tk385 billion (US$5.54 billion) development budget for implementing the annual development programme (ADP).
The ERD official said the largest donors World Bank and Japan released small amount of aid in the Q1 affecting the overall aid flow.
The country's largest multilateral donor World Bank disbursed only $39.42 million worth of aid and Japan government $5.40 million during July-September period this year.
The Manila-based lender Asian Development Bank (ADB) is on the top of the aid disbursement list with its $112.65 million released against different projects in Q1 of FY2011.
The aid commitment swelled to $1.68 billion in the Q1 this fiscal as the Bangladesh government signed $1.0 billion loan agreement in early August with the Indian government for developing transit and transshipment facilities for the big neighbour.
"If the government agencies can speed up their project implementation, the targeted aid from the donors in the current fiscal will be received," the ERD official said.
The foreign aid flow fell in the first quarter this fiscal at US$278 million compared with $358.31 million received during the corresponding period last year, officials said Monday.
Finance ministry officials, however, said the amount came against commitment of $1.68 billion for July-September period of fiscal 2010-11.
"We have received $169.06 million in loans and $108.62 million worth of grants in July-September period," a senior economic relations division (ERD) official told the FE.
He said the flow of foreign aid dropped in the first quarter this fiscal due to inefficiency of the project implementing agencies.
The government project executing agencies have spent only nine per cent of total Tk385 billion (US$5.54 billion) development budget for implementing the annual development programme (ADP).
The ERD official said the largest donors World Bank and Japan released small amount of aid in the Q1 affecting the overall aid flow.
The country's largest multilateral donor World Bank disbursed only $39.42 million worth of aid and Japan government $5.40 million during July-September period this year.
The Manila-based lender Asian Development Bank (ADB) is on the top of the aid disbursement list with its $112.65 million released against different projects in Q1 of FY2011.
The aid commitment swelled to $1.68 billion in the Q1 this fiscal as the Bangladesh government signed $1.0 billion loan agreement in early August with the Indian government for developing transit and transshipment facilities for the big neighbour.
"If the government agencies can speed up their project implementation, the targeted aid from the donors in the current fiscal will be received," the ERD official said.