Implementation of foreign-aided projects poor
Saturday, 3 November 2007
FHM Humayan Kabir
Some project executing agencies have performed badly in implementation of foreign-aided projects as only 5.835 per cent of fund was utilised during the first four months of the current fiscal.
The development partners disbursed only small amount of aid money due to the poor implementation of the foreign-funded projects during the period, official sources said.
According to sources in the ministry of finance (MoF), during July-October period the project implementing agencies of 36 big projects spent Tk 3.736 billion against the total allocations of Tk 64.0244 billion in project aid under the Annual Development Programme (ADP) for fiscal 2007-08.
During the period, the government received Tk 957.6 million worth of project aid, the sources added.
The dismal picture was found when the Economic Relations Division (ERD) Wednesday last reviewed implementation status of 36 big foreign-funded projects under different ministries at a meeting, sources in the MoF said.
Project directors and officials concerned of different project implementing agencies were present in the meeting that was held against the backdrop of poor aid flow against the impressive commitment by different donors.
ERD statistics showed that the donors had disbursed only US$ 62.98 million foreign assistance during July-August period against their commitments of $324.63 million for July-September of the current fiscal 2007-08.
Officials, who attended the Wednesday meeting, told the FE that inefficiency in project implementation, procrastination in making decisions and complex procedures in fund release by the donors are the main reasons for delay in project implementation.
When asked, a senior government official told the FE Friday that in most of the cases the delay in implementation had been caused by complicated procedures relating to disbursement of foreign fund.
Citing an example, he said: "We need to take a number of approvals of the Asian Development Bank (ADB), the Manila-based donor, for appointment of consultants, preparation of tender documents and compilation reports on expenditure. All these exercises cost us time."
According to the MoF sources, the Power Division, which is implementing 13 out of the 36 big foreign-funded projects under the current ADP, has show poor performance.
Different agencies under the division has spent only Tk 714.2 million from its own resources against the total foreign aid allocation worth Tk 15.9352 billion for the 13 projects.
The implementation agencies of the 13 projects also failed to get any foreign assistance released from the donors including Asian Development Bank (ADB), the World Bank (WB), the UK's Department for International Development (DFID), German agency KFW and China, the sources added.
The Local Government, Rural Development and Cooperative Ministry has been able to spend only Tk 656.7 million for its seven projects against disbursed amount of Tk 923.3 million worth of aid. The total foreign aid allocation for the projects is Tk 11.6423 billion.
Some projects directors and concerned officials of the ministries, divisions or agencies told the meeting that the delay in procurement, appointment of consultants, complex tender procedures, and recent floods are the key reasons for the poor ADP implementation during July-October period.
Some project executing agencies have performed badly in implementation of foreign-aided projects as only 5.835 per cent of fund was utilised during the first four months of the current fiscal.
The development partners disbursed only small amount of aid money due to the poor implementation of the foreign-funded projects during the period, official sources said.
According to sources in the ministry of finance (MoF), during July-October period the project implementing agencies of 36 big projects spent Tk 3.736 billion against the total allocations of Tk 64.0244 billion in project aid under the Annual Development Programme (ADP) for fiscal 2007-08.
During the period, the government received Tk 957.6 million worth of project aid, the sources added.
The dismal picture was found when the Economic Relations Division (ERD) Wednesday last reviewed implementation status of 36 big foreign-funded projects under different ministries at a meeting, sources in the MoF said.
Project directors and officials concerned of different project implementing agencies were present in the meeting that was held against the backdrop of poor aid flow against the impressive commitment by different donors.
ERD statistics showed that the donors had disbursed only US$ 62.98 million foreign assistance during July-August period against their commitments of $324.63 million for July-September of the current fiscal 2007-08.
Officials, who attended the Wednesday meeting, told the FE that inefficiency in project implementation, procrastination in making decisions and complex procedures in fund release by the donors are the main reasons for delay in project implementation.
When asked, a senior government official told the FE Friday that in most of the cases the delay in implementation had been caused by complicated procedures relating to disbursement of foreign fund.
Citing an example, he said: "We need to take a number of approvals of the Asian Development Bank (ADB), the Manila-based donor, for appointment of consultants, preparation of tender documents and compilation reports on expenditure. All these exercises cost us time."
According to the MoF sources, the Power Division, which is implementing 13 out of the 36 big foreign-funded projects under the current ADP, has show poor performance.
Different agencies under the division has spent only Tk 714.2 million from its own resources against the total foreign aid allocation worth Tk 15.9352 billion for the 13 projects.
The implementation agencies of the 13 projects also failed to get any foreign assistance released from the donors including Asian Development Bank (ADB), the World Bank (WB), the UK's Department for International Development (DFID), German agency KFW and China, the sources added.
The Local Government, Rural Development and Cooperative Ministry has been able to spend only Tk 656.7 million for its seven projects against disbursed amount of Tk 923.3 million worth of aid. The total foreign aid allocation for the projects is Tk 11.6423 billion.
Some projects directors and concerned officials of the ministries, divisions or agencies told the meeting that the delay in procurement, appointment of consultants, complex tender procedures, and recent floods are the key reasons for the poor ADP implementation during July-October period.