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Pry, mass education sector may lose $ 667m foreign aid unless donors’ conditions met

Rezaul Karim and Khairul Islam | Sunday, 9 March 2014



The country's primary and mass education sector may lose US$ 667 million in foreign aid unless the government meets certain conditions set by donors, including reviewing its decision to cut the sector's development allocation beyond 15 per cent, officials said.
The government needs to fulfil some conditions set by nine development agencies under a Disbursement Linked Indicator (DLI) to avail their funding supports, according to them.
Of the conditions, the government must not cut its total budget allocations for primary and mass education sector by more than 15 per cent and implement at least 30 per cent of the donor-funded development projects a fiscal year (FY), they mentioned.
But, the total budget outlay for education sector has already been slashed by 18.72 per cent in the Revised Annual Development Programme (RADP), sources at the ministry of primary and mass education (MoPME) said.
Besides, the MoPME has also informed the ministry of finance (MoF) that it would not be possible to complete 30 per cent of the development projects this fiscal unless an additional Tk 7.0 billion fund is available from the government, they added.
Focusing on the overall situation, the MoPME has recently sent a letter addressing Finance Secretary Fazle Kabir seeking a review in the RADP to get the foreign aid.
Currently, the MoPME is implementing four sub-projects under the Primary Education Development Project (PEDP)-3 worth Tk 221.96 billion funding by the nine development partners.
Primary Education Secretary Kazi Akther Hossain said the nine development partners are expected to sit with the implementing body by the middle of this month for mid-term evaluation of the ongoing projects.
He said that based on the progress made under the PEDP-3 the development partners are also expected to sign some fresh deals worth $ 650 million with the MoPME.
The secretary said the government cut down the proposed budget by 18.72 per cent of the total ADP, pushing the total figure from Tk 45.95 billion to Tk 37.12 billion for the outgoing FY (2013-2014)," he added.
Mr Hossain said the MoPME also requested the MoF to review the revised development budget allocating Tk 44 billion including an additional Tk 7.0 billion in the RADP to get the foreign assistance.
According to the information available at the planning commission, the MoPME has suggested reduction of total Tk 9.73 billion including Tk 8.82 billion from the government's fund which is 18.72 per cent of the total development budget.
The government is committed to completing at least 30 per cent of the development works under the DLI worth Tk 18.50 billion, but the MoPME received only Tk 12 billion.
The secretary said according the DLI, the government should provide Tk 7.72 billion during the first year of PEDP-3 execution and Tk 27.90 billion in the following year to get the monetary assistance from the agencies.
"Unfortunately, the government provided only Tk 1.42 billion in the first year and Tk 15.20 billion in the following year, which is a combined 47.74 per cent of the estimated budget," he noted.
Besides, if the government doesn't supply the required fund in the RADP, the MoPME couldn't be able to provide at least one instalment worth Tk 2.50 billion for the stipend programme, depriving some 0.78 billion poor school-going students, he added.         
The ongoing development projects under the MoPME include construction of 10,000 schools, and 7,000 wash blocks and 1,200 tube-wells.