Cancel projects with zero or slow implementation: Planning Commission

The government has decided to identify and exclude projects that have not progressed despite implementation work going on for a long time from the Annual Development Programme (ADP).

The projects will be left unfinished, and no further progress will be made, the Planning Commission decided at a meeting on the progress of the implementation of ongoing projects of 15 ministries and divisions which received the maximum allocation in the ADP for the fiscal 2022-23.

The decision was taken to reduce unnecessary expenditure on development projects, said sources. Planning Minister MA Mannan chaired the meeting at the NEC conference room in Sher-E-Bangla Nagar on Tuesday.

There are many projects that have been greenlit for a long time, but either their implementation work has stalled or hasn't started at all.

Although the work of the projects is stopped, money is still being spent on those for salaries and allowances, alongside office rent and electricity bills.

This increases the wastage of government money.

The planning minister also said there is no harm in removing those projects which do not impact national development.

At the meeting, Mannan said if the list of non-progressive projects is sent from the ministry, the Planning Commission can start the process of removing those.

Those concerned said due to complexities in the tender process, land acquisition and foreign financing, among others, it is not possible to start the implementation of many projects.

One such project was presented at the meeting: the procurement of 70 Metre Gauge (MG) diesel electric locomotives of the Bangladesh Railways (BR). 

The approval for it was given at the meeting of the Executive Committee of the National Economic Council in September 2011, but no progress has been made even in a decade. 

Bidders were also not found against the tenders for the first and second phase of the project. 

Later, a new tender was floated after changing the technical specifications. Korean company Hyundai Rotem was the lowest bidder in the third round of tender. 

The BR signed the agreement in October 2018, but the credit proposal submitted by them was inflexible and the Economic Relations Division (ERD) did not agree to take the loan.

The BR signed a purchase agreement with the contractor in the first month of 2022. In the meeting of the steering committee of the project last September, it was decided to implement the project with government funding or foreign funding on easy terms without canceling the project.

Secretary of the Planning Division Md Mamun-Al-Rashid told The Business Standard that if implementation works go on for a long time, the costs of the projects increase. 

Projects will be looked at on a case by case basis. If a project has stalled for days even after 50% progress, it may still be terminated, he said. 

For example, in some projects with Indian debt, implementation is delayed. If the ministry concerned feels that the project should be excluded, it will be done.

Again, due to the complexity of the tender, many projects are not progressing. A list of such projects will be sent to the Planning Commission. which will announce the completion, said the secretary of the Planning Division.

Officials of the Planning Commission said the longer the implementation time, the higher the project costs. 

Ministries and divisions also take a lot of time to appoint project managers and give administrative approvals.

In Tuesday's meeting, instructions were also given to appoint project directors within five days of project approval. 

Besides, after approving the project, the ministry must provide administrative approval of the project within one day of receiving the letter from the Planning Commission.

It was also decided in the meeting that action will be taken against those who delegate work without approval. 

Many implementing agencies change the site, construction materials, or design of assigned procurement works without obtaining the approval of the relevant ministry or division leading to added cost.

Sources also said the issue of public suffering during the implementation of Greater Dhaka Sustainable Urban Transport Project (BRT, Gazipur-Airport) was discussed in the meeting.

Project officials said the implementation of the project will be delayed as the work for it can only be done twice a week. 

Based on this project, the Planning Commission also directed to finalise the issue of traffic management before the implementation of any development project.

If the implementation of a project becomes uncertain due to land acquisition complications, then the project may be terminated, said the Planning Commission secretary.

According to a report presented at the meeting, a total of 82.65% of the ADP for the current fiscal year has been allocated to 15 ministries and divisions. 

In the first four months of the fiscal year, of the ministries and divisions which got the highest allocations, the Bridges Division spent 37% of the allocation while the shipping ministry spent only 4.54% of the money.

The Ministry of Primary and Mass Education spent 5.73%, Health Service Division spent 6%, Ministry of Science and Technology spent 8.03%, Secondary and Higher Education Division spent 8.67% and the Ministry of Water Resources spent 8.75% from their allocations.

The report mentioned that of the ministries and divisions with the highest allocation, the Power Division, the railway ministry, and the local government division have posted speedy implementation of the ADP.

Apart from the state minister for planning, members of the Planning Commission and 15 senior officials of ministries and divisions were also present.