ADP implementation remains slow

Staff Correspondent | Published: 22:40, Sep 10,2017

 
 

Progress in implementation of the annual development programme remained as usually in slower track in the first two months of the current fiscal year 2017-2018 starting in July. 
The government agencies in the July-August period could implement only 5.15 per cent of total allocation.
High officials of the planning ministry attributed failure of some ministries and divisions having highest allocations in implementation of the development budget and problems related to disbursement of foreign loans and grants to the key causes of poor scenario.
According to the statistics of the Implementation Monitoring and Evaluation Division of the planning ministry, the 57 ministries and divisions responsible for execution of development budget could spend only Tk 8,457 crore or 5.15 per cent in the July-August period of total ADP outlay of Tk 1,64,084.83 crore for the entire fiscal year.
Of which, the agencies could spend only 3.67 per cent of foreign loans.
In July-August of the last fiscal year, overall ADP implementation rate was 3.86 per cent.
According to finance ministry data, the government agencies could implement up to 8 per cent of ADP in the July-August period over the last few years.
In this context, planning minister AHM Mustafa Kamal on Sunday held a meeting with secretaries of 16 ministries and divisions with the highest allocation under the ADP to evaluate their performance at NEC auditorium at Agargaon in Dhaka.
Of the ministries and divisions which got allocations of around 86 per cent of total outlay, ministries of railway, science and technology, water resources and shipping and Bridges Division could spend below one per cent of total allocation, according to the IMED data.
Science and technology ministry and Bridges Division even could not spend any penny under project aids, the data showed.
At the meeting, Kamal gave a set of instructions to the Economic Relations Division to expedite disbursement process and solve other related problems to accelerate the ADP implementation process.
‘The government agencies face problems in implementation of project aid components of development projects as the development partners take long time to disburse the promised loans and grants,’ Kamal said at a press briefing after the meeting.
International lenders change the terms and conditions for several times after signing of a memorandum of understanding to provide loans for a project which makes delay in disbursement, he said.
Loans and grants do not match with purpose and demand of the country due to such delay, the planning minister said.
‘So, we asked the ERD to expedite the process through consultation with the development partners,’ he said.
The meeting also favoured not to take foreign loans for implementing the small but important projects due to the complexities related to disbursement.
The meeting also asked the ERD to explore the possibilities of diversion of loans and grants from slow-progressed projects to better projects.
Secretaries of the ministries and divisions also raised the issues related to delay in disbursement, Kamal said.
The government will have to spend Tk 60,416 crore in project aid which is 36.82 per cent of the total ADP.
It will be difficult to implement the portion as commercial contracts of many projects have not been signed yet and if the disbursement problems are not solved, Kamal said.
He also asked the secretaries to form a team to resolve if any problem arose during implementation of the ADP. 

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