WB picks 5 of its projects as 'risky and problematic'
Saturday, 23 October 2010
FHM Humayan Kabir
The World Bank has identified five projects funded by it in Bangladesh as 'risky and problematic' due to different irregularities including failure to implement those on time, officials said.
Finance ministry officials said the Washington-based lender has asked the government agencies to streamline the implementation in a bid to receive its continuous support to those projects.
The bank has identified the avian influenza preparedness, water management development, Siddhirganj 350-megawatt power generation, promotion of services for the disabled persons and enterprise growth and bank modernisation projects as 'risky and problematic'.
"We have identified five 'problem or risky projects' out of 28 ongoing schemes that resulted from slow disbursement of the funds," World Bank (WB) spokesperson at the Dhaka office Mehrin A Mahbub told the FE.
She said although these schemes have been identified as problem and risky projects, "we are still discussing with the government about expediting their implementation".
A senior Economic Relations Division (ERD) official said that as the government agencies have failed to implement the projects on time, the global lender has not released the funds fully.
"We have called a meeting early next month. The relevant implementing agencies and the World Bank representatives will be present there to eliminate the barriers to project execution as well as fund disbursement by the donor," he said.
The World Bank Dhaka office said the Department of Livestock has spent only 16.3 per cent of US$ 12.2 million committed funds from the World Bank for the avian influenza preparedness and control project, started in July 2007.
The Water Development Board (WDB) has not been able to release $84.3 million funds from the total $94.2 million, committed by the World Bank for the water management developing project, that started in July 2004.
Due to failure in spending the foreign assistance, the WB has shifted $40.4 million funds to 2007 cyclone Sidr affected areas' rehabilitation project, the bank said.
The power division has spent only 0.2 per cent of the World Bank committed funds for Siddhirganj 350mw power generation project and the rest $338.3 million remains unutilised.
The World Bank has said that it has suggested the government to recast the design of the power generation project scrapping the present one, which it is interested to bankroll.
For the promotion of services and opportunities of the disabled persons in Bangladesh, a project of the Jatiya Protibondhi Unnoyan Foundation, the World Bank's un-disbursed money was $31.3 million while it has disbursed only 5.4 per cent of the total committed funds.
The government's project executing agency has been able to spend $243.418 million from the World Bank-committed $305.418 million funds for the Enterprise Growth and Bank Modernisation Project of Bangladesh Bank.
"Although the project period will be over in December 2010, the implementing agency will not be able to execute the remaining works as well as spend the un-disbursed money on time," the World Bank said.
Another top ERD official told the FE that the fund disbursement on time has been affected due to inefficiency of the government project implementing agencies and "sometimes for the World Bank's complex fund release procedures".
The World Bank has been bankrolling 28 projects in Bangladesh. It has agreed to provide US$ 3.60 billion funds for the 28 ongoing projects for developing the country's ailing infrastructure and upgrading the socio-economic conditions.
The World Bank has identified five projects funded by it in Bangladesh as 'risky and problematic' due to different irregularities including failure to implement those on time, officials said.
Finance ministry officials said the Washington-based lender has asked the government agencies to streamline the implementation in a bid to receive its continuous support to those projects.
The bank has identified the avian influenza preparedness, water management development, Siddhirganj 350-megawatt power generation, promotion of services for the disabled persons and enterprise growth and bank modernisation projects as 'risky and problematic'.
"We have identified five 'problem or risky projects' out of 28 ongoing schemes that resulted from slow disbursement of the funds," World Bank (WB) spokesperson at the Dhaka office Mehrin A Mahbub told the FE.
She said although these schemes have been identified as problem and risky projects, "we are still discussing with the government about expediting their implementation".
A senior Economic Relations Division (ERD) official said that as the government agencies have failed to implement the projects on time, the global lender has not released the funds fully.
"We have called a meeting early next month. The relevant implementing agencies and the World Bank representatives will be present there to eliminate the barriers to project execution as well as fund disbursement by the donor," he said.
The World Bank Dhaka office said the Department of Livestock has spent only 16.3 per cent of US$ 12.2 million committed funds from the World Bank for the avian influenza preparedness and control project, started in July 2007.
The Water Development Board (WDB) has not been able to release $84.3 million funds from the total $94.2 million, committed by the World Bank for the water management developing project, that started in July 2004.
Due to failure in spending the foreign assistance, the WB has shifted $40.4 million funds to 2007 cyclone Sidr affected areas' rehabilitation project, the bank said.
The power division has spent only 0.2 per cent of the World Bank committed funds for Siddhirganj 350mw power generation project and the rest $338.3 million remains unutilised.
The World Bank has said that it has suggested the government to recast the design of the power generation project scrapping the present one, which it is interested to bankroll.
For the promotion of services and opportunities of the disabled persons in Bangladesh, a project of the Jatiya Protibondhi Unnoyan Foundation, the World Bank's un-disbursed money was $31.3 million while it has disbursed only 5.4 per cent of the total committed funds.
The government's project executing agency has been able to spend $243.418 million from the World Bank-committed $305.418 million funds for the Enterprise Growth and Bank Modernisation Project of Bangladesh Bank.
"Although the project period will be over in December 2010, the implementing agency will not be able to execute the remaining works as well as spend the un-disbursed money on time," the World Bank said.
Another top ERD official told the FE that the fund disbursement on time has been affected due to inefficiency of the government project implementing agencies and "sometimes for the World Bank's complex fund release procedures".
The World Bank has been bankrolling 28 projects in Bangladesh. It has agreed to provide US$ 3.60 billion funds for the 28 ongoing projects for developing the country's ailing infrastructure and upgrading the socio-economic conditions.