Bangladesh News

Although power, energy and agriculture are the high priority areas, the government is going to cut allocation by 18 to 75 per cent in the foreign aided projects for these sectors due to their failure to spend the allotted money in the current fiscal year.

Sources said the donors committed and signed agreement to provide money but the amount is not being disbursed now, as the ministries concerned could not spend the allotted money in the Annual Development Programme (ADP).

Planning Ministry and Economic Relations Division (ERD) officials said the ministries call meetings to discuss the problems in implementing the projects but officials concerned often remain absent from the meetings.

Several officials said the ministries have failed to spend money to boost production when the country is reeling under multifarious problems due to shortage of power and gas.

In the current fiscal year, the amount of foreign resources was estimated at Tk 14,575 crore, of which the project aid was Tk 12,000 crore.

Sources said different ministries including, power, energy and agriculture, are going to reduce project aid by 15 per cent in the revised ADP and fix it at 10,200 crore.

In the investment programme, the power division got allocation of Tk 1,835 crore. Only 40 per cent of the allocation was spent in eight months (July to February). In the revised ADP, it is going to be slashed by 19 per cent and fixed at Tk 1,491 crore.

In the technical assistance programme, the power division could spend only 11 per cent of the allocation in eight months. As a result, technical allocation is going to be cut by 17 per cent in the revised allocation.

In the same way, the energy and mineral resources division could spend only 43 per cent of its allocation of Tk 520 crore in the first eight months of the current FY. In the revised ADP, its allocation are being cut by 75 per cent and set at Tk 127 crore.

In the same fashion, technical assistance allocation in the energy and mineral resources division is being cut by 26 per cent.

The ministry of agriculture could spend only 24 per cent of its allocation in eight months. As a result, the ministry’s allocation is going to be cut by 33 per cent and fixed at Tk 196 crore in the revised ADP.

ERD sources said a number of meetings have been called to sort out problems in implementing the projects under the power division but officials of the power division remained absent from those meetings. The cause of delay in project implementation can be understood from this.

When asked about the requirement of foreign assistance, the energy ministry informed the ERD that they would need assistance worth Tk 1,238 crore. But later the ministry cut the requirement to Tk 289 crore, slashing it by about Tk 1,000 crore overnight.

An official of energy ministry said they cut the amount after the finance ministry discouraged them to go for larger requirement, as it would remain unspent.

However, the planning ministry officials said the present government came to power with many pledges. If the ministries fail to spend allotted money it will be very difficult to fulfil the pledges.

ERD sources said the energy division gave detailed project-wise causes of delay in implementing projects to the ERD. Citing a number of projects of ADB, it said no objection from ADB has to be obtained for all activities from processing tender/service to contract awarding, delaying the project implementation.

As the prices of steel and other products have gone up in international market, tenders were cancelled after floating in the past. They also cited various other reasons.

ERD and Planning ministry officials said these problems persisted in the past. If projects cannot be implemented removing these problems, the government’s election pledges would remain unfulfilled.

Giving an example the officials said coal could not be extracted from Barapukuria coal due to inability to determine the mode of extraction over the years. On the other hand, power generation is being hampered due to shortage of energy.