Vicious 'zero progress' cycle keeps plaguing dev projects

121, 186, 117, 101, and 104. These figures here do not represent a cricket team or a batter's scores from their last five innings. These are the numbers of development projects that have shown no physical progress in implementation over the last five fiscal years.

Remarkably, this count has exceeded 100 in eight out of the past 10 years, with the remaining two years recording 92 and 98 such projects – indicative of a concerning trend requiring immediate intervention to disrupt this vicious cycle.

Experts have linked this issue to projects initiated for political reasons rather than economic feasibility. They stress the need for thorough vetting of factors such as land acquisition, design development, manpower recruitment, and financing arrangements during project approval to prevent implementation stagnation.

According to a report from the Implementation Monitoring and Evaluation Division (IMED), some 104 projects within the revised Annual Development Programme (ADP) for FY23 displayed no advancement in their physical work.

The number of projects with zero physical progress stood at 101 in FY22, 117 in FY21, and 186 in FY20. This highlights the ongoing challenge faced by various government ministries and departments in the implementation process.

The most recent report from IMED, released on 27 February, also revealed that some of these zero-progress projects even utilised allocated funds for various purposes, including staff salaries and office expenses, without achieving any tangible progress.

The report – covering 1,686 public-interest projects in the power, health, transport communication infrastructure and agriculture sectors – was presented at a National Economic Council (NEC) meeting, chaired by Prime Minister Sheikh Hasina on Tuesday.

Zahid Hussain, the former lead economist of the World Bank's Dhaka office, told TBS, that projects often face limited progress during the initial stages due to various factors such as land-related issues, delays in procurement, challenges in staffing, and design complexities. Consequently, funds may be allocated to certain projects at the outset, but implementation progress remains stagnant. Also, projects sometimes fail to demonstrate any advancement in fund utilisation due to a lack of physical progress.

"Certain factors require attention during the project approval process to tackle this issue. All necessary preparations, including land acquisition, design development, manpower recruitment, and financing arrangements, should be completed before presenting the project for approval by the Executive Committee of the National Economic Council (Ecnec). The complete design of the project should be presented to Ecnec," he said.

The project proposal should provide details about the appointment of the director and other relevant officials. Delays in appointing manpower often hinder project progress. Besides, it should be clarified during the approval process who will provide financing as needed, Zahid Hussain added.

The IMED report revealed that in FY23, 75 projects had achieved less than 25% physical progress, a result described as "disappointing". Some 161 projects exhibited progress ranging from 26% to 50%, while 275 projects advanced between 51% and 75%; however, their implementation was still deemed "unsatisfactory".

Concerning the projects marked as concluded, the report said of the 1,686 projects, only 264 were officially declared complete in the last fiscal year. However, among these, 160 projects successfully completed all physical tasks, while the remaining projects were marked as completed despite not fully executing the physical work.

Progress in fund utilisation

The report has also categorised the projects based on the implementing agencies' capacity to utilise the allocated funds.

Some110 projects did not utilise any funds out of an allocation totalling Tk1,489 crore, while an additional 68 projects expended less than 25% of the revised ADP allocation of Tk5,150 crore. This situation has been described as "frustrating" by the monitoring and evaluation authorities.

The reasons for the sluggish project spending noted by the IMED are typical: land acquisition issues, tender delay, lack of feasibility studies and planning, and project undertaking without any assurance of foreign funding.

The IMED report notes that of the total 1,686 projects, expenditure on 114 projects ranges between 26% and 50%. Additionally, 247 projects have recorded expenditure between 51% and 75%, while 264 projects have achieved a commendable 100% expenditure.

Dr Moinul Islam, an economist and former professor of Chittagong University, said often projects fail to progress due to inadequate feasibility surveys conducted before their initiation. Consequently, individuals involved in such projects end up spending funds on salaries and office expenses, among other purposes. As a result, the costs of these stagnant projects escalate over time, leading to delays in their completion.

"In our country, issues arise when projects are initiated based on political motivations rather than economic viability. Projects that may not be necessary are pursued initially, only to receive no further allocation later on. This highlights a political vulnerability within our system. To overcome this challenge, projects should be undertaken following thorough economic assessments," he added.

What do officials concerned say?

Out of the 28 ongoing projects of Bangladesh Railway, eight made no progress in FY23.

SM Salimullah Bahar, the chief planning officer of Bangladesh Railway, told TBS that one of these projects aimed at converting the Meter Gauge Rail Line to Dual Gauge on the Akhaura-Sylhet Section was initially set to be financed by China. However, following a government review that recommended cost reductions, China lost interest in funding the project. As a result, the project's implementation has been halted.

He said various issues unique to each project are causing delays in progress. The primary reasons for these stalls include the inability to secure financing, the failure to procure contractors via the tendering process, and the lack of approval for the Hard Term Loan Committee. Consequently, a decision was made to conclude some projects with some of its parts remaining incomplete.

Apart from Railway projects, seven health sector projects were identified on the list of projects showing zero progress. 

In addition, 16 projects under the Ministry of Housing and Public Works experienced no progress. 

Syed Mamunul Alam, the additional secretary of the Ministry of Housing and Public Works, told TBS that there are multiple reasons behind the delays in implementation. It is common for projects to face challenges like site relocation, which can pause their development for extended periods. In these situations, a nominal allocation is made in the Annual Development Programme (ADP) to maintain the projects' existence, albeit only in name.

Pointing out other reasons for delays, he said, "For example, foreign-funded projects frequently encounter hold-ups in obtaining the needed financial support promptly, which stalls their progress. Furthermore, the lack of efficiency among project officials can lead to delays. Each project is subject to its own specific set of obstacles."

Mamunul Alam further said while these issues were present in the previous fiscal year, the current year has seen a significant improvement as all 60 ongoing projects under the Ministry of Housing and Public Works are making satisfactory progress, indicating a positive shift in project implementation.