No money spent on 90 ADP projects last year | 2019-03-22 |

No money spent on 90 ADP projects last year

Hasibul Aman

22 March, 2019 12:00 AM printer

Not even a single penny was spent on 90 schemes under the ADP last year because of a number of reasons that literally leads to procrastination of project implementation.

The latest IMED evaluation report suggests that executing agencies failed to spend any amount from Tk916 crore allocated against those projects for 2017-18 fiscal year’s Annual Development Programme (ADP). 

 Besides, these projects have zero financial progress, now work was done for 98 ADP projects

The zero financial progress projects include Matarbari coal-fired power plant project, construction of national revenue building, construction of factory building of Chattagram BEPZA and patronisation for science education at government colleges.

Also, establishing Kushtia Medical College Hospital, Nursing Institute in Pabna and six new television stations for Bangladesh Television and improving Dhaka-Chattogram railway are also on the list of projects. 

“The failure in spending money leads to procrastination in project implementation alongside shooting up project expenditure,” the IMED report observed.

The public sector project watchdog has identified a number of reasons at project framing and execution for the failure in spending the allocated money.

Delay in floating tenders while tenders not being effective, not getting project loan, no foreign fund release or delay in fund release, not being able to acquire land, litigation problems and repeated project revisions are the reasons behind the failure to use the allocated money.  

Delay in approving the revised projects, loan contract signing with the lenders and nominal fund allocations are also responsible for the situation.

In its report, IMED said preparing projects without a long-sighted plan or not taking into consideration future context eventually increase the volume of project work, hindering project implementation. 

Besides, picking up projects without taking into account the market and the demand create execution problems at the halfway leading to repeated project revisions.

For the reasons, some projects sometimes are bound to face sudden closure or project cost goes up, IMED observed.

As a major reason for implementation problem, it identified selection of projects without measuring project implementation capability of the executing agency.

Other implementation problems are absence of any procurement plan and action plan, frequent transfer of project directors, assigning one PD for multiple projects, delay in loan deals with lenders, activating the loans and approval from the lenders for consultant appointment and tenders. 

About the delay from the parts of lenders, Planning Minister MA Mannan said: “Usually, we’re held responsible for project delay. But the lenders also consume long time for some approvals, which should be looked into by the media as well.”

The IMED evaluation also showed that out of 1,740 ADP projects in FY’18, 75 projects saw less than 25 percent expenditure while 80 projects saw 26 to 50 percent expenditure.

Some 25 projects fetched nominal allocation of one lakh taka each last year, of which only two were able to spend some money.

The report said the financial progress of 237 projects and physical progress of 193 were not satisfactory, while it found 159 projects’ financial progress and 123 projects’ physical progress modestly satisfactory. 

However, 43 projects saw the expenditure of full allocation or more, of which nine projects got finished in the last fiscal year.