Govt seeks time extension of four IDB-funded projects

The government has sought extension of time for at least four projects funded by the Islamic Development Bank (IDB) as various factors have delayed their implementation, sources said.
The time extension was sought at a recent meeting when an IDB Mission visited Dhaka to discuss its funding plan for Bangladesh during 2014-2016 period and review the status of ongoing projects.
During the meeting, the IDB Mission and the government also discussed status of the projects, financing plans and co-financing arrangements, modes of financing and acceptance of the terms and conditions set by the Jeddah-based bank.
Besides, the country's recent micro-economic developments, current foreign borrowing needs, constraints, near term outlook and the government's strategic priorities also were discussed.
Sources said the government requested for time extension for a project titled 'Capacity Building for Marine Fisheries' as its implementation was delayed by more than three years due to delay in signing a tripartite memorandum of understanding (MoU) with Malaysia.
The project implementation actually started in fiscal year 2012-13 and until September last only US$1.0 million could be disbursed. The five-year long Tk 1.20 billion project is being implemented by the Ministry of Fisheries and Livestock.          
The IDB supervision mission made specific recommendation to closely monitor implementation progress and accelerate submission of requests for payment to the suppliers, particularly, the vessel suppliers.  
The Economic Relations Division (ERD) of the government also requested the IDB for extension of Greater Rajshahi Division Integrated Rural Development project. The implementation status of the projects was found to be satisfactory.
However, the mission had expressed concern about the probability of sustainability of self-help groups which were a component of the Tk 2.05 billion project.   
The project has covered 31 upazilas of Rajshahi, Natore, Naogaon and Chapainawabganj districts under which roads, bridges/culverts, rural markets, and sanitary latrines were built.
Sources said during the meeting the government sought time extension for Water and Sanitation in Cyclone Prone Coastal Areas project. The physical achievement of the project, until September last, was 43 per cent and financial achievement was 25 per cent.
The government, for the project, requested the IDB to increase threshold value of disbursement from $0.5 million to $1.0 million as 'project implementation otherwise would suffer'.
The government also sought time extension up to June 2015 for implementation of the Primary Education Development Project. Some $18 million was received from the IDB for construction of primary schools in several districts.  
During the 2014-16 period, the IDB's funding will focus on power sector and urban development, assisting sustainable agriculture and rural development, supporting primary, secondary, and vocational training.
Sources said during the meeting, the ERD has proposed to the IDB for funding $561 million projects in power sector, information technology, urban development, capacity building, Islamic finance, education, and rural development