Now comes Project Preparatory Fund

Rezaul Karim | Published: November 09, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

The government is now working on fixing modalities for the formation of Project Preparatory Fund (PPF) that will complete preliminary activities before the launch of projects, officials said.
A high official of the finance ministry said the Ministry of Planning (MoP) will frame the modalities for the PPF as projects are approved and revised by this ministry.
Under the move, the proposed fund will bear the costs of land acquisition, feasibility study and environmental impact assessment (EIA) for development projects, a source in the planning ministry said.
The decision on establishment of the fund has been taken at the 6th meeting of the taskforce on fast-track project monitoring under the prime ministers' office (PMO).
The proposed fund will be created to finance the cost of land acquisition for project implementation, feasibility study for different large projects and fast-track projects, a high official of the planning division said.
"Different important development projects limp before undertaking mainly for lack of necessary preparatory funds and land acquisition," he said.
Presently, block allocation is kept in budget for urgent allocation to new and current projects under the annual development programme (ADP), according to data of the planning division.
In fiscal year (FY) 2014-15, the government had kept allocation for two sectors. The sectors were land acquisition and others for the projects, the data showed.
Land acquisition will be completed under the new fund before taking up a project under ADP to reduce complexities in land acquisition that delays project implementation, sources concerned said.
The fast-track projects and some large projects experienced difficulties due mainly to complexities in land acquisition which increases the project costs and extends the implementation time, they added.
"The size of the fund of the PPF will be fixed later by the ministries concerned," a finance ministry official said.
The MoP is the responsible ministry for establishing the PPF. "The ministry might call a meeting soon," Additional Secretary of Finance Division Jalal Ahmed told the FE.
Secretary of the Planning Division Mohammad Shafiqul Azam wouldn't make comment on the matter. Â
Â Â Â rezamumu@gmail.com