Ex-officials' talents to be tapped for development

The government plans to utilise the experience and skills of retired government officials by appointing them as project directors to streamline the implementation and management of development projects, which have typically been plagued by sluggish progress, repeated time and cost overruns, and failure to utilise funds efficiently.

Additionally, government officials with higher education and training from abroad and those with a reputation for efficiently implementing projects in the past will also be appointed in project implementation and management.

On 24 January, during a meeting of the Planning Commission, Prime Minister Sheikh Hasina instructed officials to revise the existing rules for the appointment of project directors.

Experts commend the decision as timely, saying it will be wise to use retired government officials' skills and experience to expedite project implementation and ensure efficient usage of development funds.

The PM also instructed that no official can be made director for more than one project at a time.

As per the meeting minutes, she also ordered the formation of a "pool of experts" under the Ministry of Public Administration, comprising experienced retired officers and trained and skilled government officials.

The public administration ministry will consider appointing project directors or other officials as per requirements of implementing ministries or departments, she said during her attendance at the Planning Commission meeting after nine years.

Besides, the government will enlist the help of skilled and experienced retired officials to reduce dependence on foreign consultants and lower project costs.

Earlier, a decision was made to form a pool of project directors under the ministry, which has not been implemented yet.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, praised the government's initiative, noting that officials retiring at the age of 59 still possess the energy and potential to serve for another 10 years.

"The skills, experience and training they have acquired in their career are national assets. It is wise to utilise their expertise especially when the country is experiencing a shortage of skilled human resources," he told The Business Standard.

He, however, stressed the importance of establishing selection criteria based on the skills and experience of retired officers to prevent unqualified individuals from inclusion.

"There are also political and economic considerations in this matter. When a large project is undertaken, an official from the relevant ministry may anticipate becoming a project director and gaining perks such as a new car, additional salary, and opportunities to travel abroad. The presence of a retired officer as director may lead to demotivation," he added.

Former secretary of the Cabinet Division, Ali Imam Majumder, told TBS that skilled human resources are essential for project implementation. He said if there are enough qualified personnel among regular officers, it may not be appropriate to hire retirees as this could limit opportunities for regular officers.

"If competent officers are not available among regular officers, then retired skilled and experienced officers can be appointed by the government for a limited period to implement a project," he added.

Officials from the Ministry of Public Administration said the current retirement age for government service is 59 years, with over a hundred officials retiring annually from the joint secretary level and above.

Among them, some officials who retire at the secretary and additional secretary levels receive contractual appointments in various institutions under the ministry from which they retired. However, it is uncommon for retired officers to be assigned as project directors or in project management roles, they say.

Harun Or Rashid Chowdhury's appointment as the Karnaphuli Tunnel construction project director after retirement from regular position and former road transport secretary MAN Siddique serving as Dhaka Mass Rapid Transit Company's managing director are two recent examples,  the officials cited.

Finance Division officials said development lenders such as the World Bank and the Asian Development Bank often engage retired government officials in the preparation of Detailed Project Proposals (DPPs).

Curbs on ministry officials being PDs

A committee comprising members from all departments of the Planning Commission has been formed for project selection during a meeting chaired by the prime minister. At present, only the Planning Commission's Programming Division is involved in including new projects, resulting in difficulties in smoothly selecting the most important and necessary projects.

During the meeting, Satyajit Karmakar, senior secretary of the Planning Commission, said the existing circular instructs the appointment of a full-time project director for projects valued above Tk50 crore and prohibits the same officer from serving as project director for multiple projects.

"But in some cases, the project is being implemented by assigning additional responsibilities as project directors to ministry and department officials. This is causing delays in project implementation and increasing project costs," he added.

In this context, it was decided in the meeting that no official from a ministry or department can serve as a project director for any agency's project under the ministry. Instead, officers from the concerned agency should be appointed as project directors. Officials from any ministry or department cannot be project directors except for technical assistance projects or projects directly under their jurisdiction.

During the meeting, emphasis was placed on maximising the utilisation of foreign loans or grants in the implementation of the Annual Development Programme (ADP).

According to the Planning Division, the ratio of government expenditure to foreign loans and grants in the ADP was 60:40 in 2008-09 fiscal year (FY09), which increased to 65:35 in FY23.

In FY11, 64.1% of the original allocation of foreign loans and grants was utilised in the ADP, a figure that rose to 72.4% in FY23. The FY18 witnessed the highest utilisation of foreign loans by Bangladesh, which amounted to 91.8% of the original allocation.

Satyajit Karmakar said if the funds from foreign-funded projects are not spent on time, it has an adverse effect on the economy.

Internal Resources Division Secretary Md Shahriar Kader Siddiky mentioned that Bangladesh received a total of $52 billion in foreign loans and grants from various sources until 30 June.

He noted that due to the lack of coordination between the start of the project and fund release after project approval, timely utilisation of foreign loans becomes challenging. Even if the funds are not released, commitment fees must be paid for that period as per the loan agreement terms.

In this regard, the prime minister remarked during the meeting that the project implementation start date should be realistically determined during the DPP preparation and approval process, and these matters should be thoroughly reviewed during negotiations for foreign financing.