ADP implementation record low amid political turmoil, project review

Infographics: TBS

The Annual Development Programme (ADP) saw a record-low implementation of 4.75% in the first quarter of the current fiscal year (FY25), attributed to political turmoil and the interim government's ongoing review of projects initiated by the previous government.

Data from the Implementation Monitoring and Evaluation Department (IMED), released yesterday, show that Tk13,215 crore was spent in the first quarter against the Tk2.78 lakh crore ADP allocation.

Based on IMED data available since FY2010-11, previous years' implementation for the same quarter typically ranged between 7.5% and 10%.

IMED officials attributed the slow implementation to political unrest, which began with the student-led uprising in July, followed by the fall of the Awami League government in August, the takeover by the interim government, and persistent volatility of political conditions.

IMED Secretary Abul Kashem Md Mohiuddin told TBS, "The new government is currently reviewing all projects [taken during the previous government's tenure]. Following this review, decisions will be made regarding less critical projects, leading to reduced funding for many of them. That is why ADP implementation is slower compared to the same periods in previous fiscal years."

According to IMED officials, the government is now prioritising the disbursement of funds for critical projects, further impacting the overall ADP implementation rate. Plans to extend the deadline and increase costs for some projects are also on hold, contributing to the delayed implementation.

Certain foreign-funded projects also experienced setbacks as foreign consultants, contractor representatives, and workers left project sites, affecting project continuity, they said. 

Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development, told TBS, "Current ADP projects were initiated by the previous government, many of which were driven by political motives rather than public welfare. This is why the current government is reviewing these projects."

"The projects will undergo screening and unnecessary or unimportant ones will be eliminated. Furthermore, since the previous government has already invested significantly in certain projects, the costs of many of them will be reduced after the review," he said.

However, he stressed that this review process needs to happen quickly, as more than three months of FY25 have passed and the selection work remains incomplete, which further diminishes the ADP implementation rate. 

Nevertheless, Mujeri cautioned that funds should not be released without proper scrutiny.

IMED data show that 15 ministries, divisions and departments received a combined 76.65% of the ADP allocation for the current fiscal year.

In the first quarter, the implementation rates were 8.26% for the Local Government Division, 8.11% for the Power Division, 7.81% for the Ministry of Railways, 6.07% for the Ministry of Primary and Mass Education, 3.34% for the Roads and Highways Department, and 3.27% for the Ministry of Science and Technology.

Among those with the lowest implementation rates were the Ministry of Shipping at 1.86%, the Directorate General of Health Services at 2.21%, the Ministry of Water Resources at 0.36%, the Bridges Division at 0.89%, and the Medical Education and Family Welfare Division at 0.91%.

Spending on ADP implementation from both government funds and foreign loans and grants declined in the July-September quarter of this fiscal year.