EEF needs more funds for agro-based projects

Rezaul Karim | Published: February 24, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

Shortage of fund is hindering the operational activities of Equity and Entrepreneurship Fund (EEF) for agro-processing projects, officials concerned said.
Currently, Tk 15.39 billion is urgently needed for the agro-based projects, they said, adding that Bangladesh Bank (BB) and Investment Corporation of Bangladesh (ICB) have contributed only Tk 2.88 billion to EEF for agro projects.
But funds for information and communication technology (ICT) sector remain unutilised due to lack of adequate number of qualified entrepreneurs, the officials added.
"Funds for agro-processing and its different sectors are insufficient while ICT sector has a surplus of fund. So, we slow down providing funds to farm sector projects pending with us due to dearth of resources," a high official of ICB told the FE Thursday, preferring anonymity.
"A good number of entrepreneurs want to finance the agro-based projects, but ICT fund cannot be disbursed because of not getting qualified and competent entrepreneurs. Some applicants of ICT don't receive their fund after sanction," he said.
"We have received a number of applications from entrepreneurs for these two sectors that are lying pending with us. But EEF agro fund suffers from capital deficit whereas IT sector has a surplus of fund. ICT has still over Tk 4.25 billion," he added.
ICB sanctioned over Tk 28.51 billion against 1,567 agro-related projects under EEF till January, 2015. Tk 10.24 billion was released under EEF, according to the latest data.
EEF unit of BB sent a letter to Dr. M Aslam Alam, Secretary of Bank and Financial Institutions Division (BFID) under the ministry of finance (MoF), Thursday last seeking Tk 3.0 billion for agro-based projects.
"It would be better if the sector gets Tk 3.00 billion from the government. The authorities concerned should take initiatives to release the funds immediately for agro-processing sectors for implementation of projects properly," an official concerned told the FE.
The letter said Tk 10.24 billion out of Tk 28.51 billion was released until January last. Moreover, Tk 18.27 billion was urgently needed for the approved agro-based projects.
A sum of Tk 3.0 billion has been earmarked in the budget for the current fiscal year (FY) 2014-15 for agro-based projects. It was Tk 3.0 billion for FY 2013-14.
But ICB sanctioned over Tk 1.53 billion in favour of 103 ICT projects. Some Tk 860 million was disbursed against 74 projects until January last.
The government's financial support to EEF is not sufficient. The amount should be increased as per demand, sources concerned said.
The BB has planned to double the government's equity support for ICT related projects under the initiative of EEF to boost the promising sector of the country.
The government introduced the EEF in the fiscal year (FY) 2000-01 to help promote entrepreneurship and create employment opportunities in areas of agro-based industry (excluding conventional sub-sectors such as rice mills, flour mills, fishing trawlers, and cold storage etc), and information technology (IT).
The decade-old fund was earlier managed by Bangladesh Bank (BB). In June 2009, the central bank handed over its management to the state-owned ICB. The ICB Capital Management Ltd acts as project appraisal arm for EEF.
Â Â Â rezamumu@gmail.com