$19.3b foreign aid in pipeline till June next
UNB, Dhaka :
The Cabinet on Monday expressed its satisfaction over the progress of implementation of the foreign-aided projects and directed the authorities concerned to further expedite the implementation of projects.
The directive came from a meeting of the Cabinet when the Economic Relations Division (ERD) of the Finance Ministry submitted a report before the Cabinet on the amount of foreign aid in the pipeline and its utilization. Prime Minister Sheikh Hasina presided over the meeting.
Briefing the reporters after the meeting, Cabinet Secretary M Musharraf Hossain Bhuiyan said the amount of foreign aid to Bangladesh in the pipeline totaled $19.3 billion till June 30, 2014.
He said, that according to the ERD estimation, about 18 percent of foreign aid out of the pipeline is disbursed every year on average and an aided project usually takes some 6 (six) years to be implemented.
The Cabinet Secretary said that the ERD has taken initiative to this end to raise the disbursement of foreign aid to 22 percent from 18 percent on average per year by June 2016 out of the amount in the pipeline.
“Initiative would also be there to raise the aid disbursement gradually to 25 percent
per year on average to make the implementation tenure of the foreign aided projects to four years.”
He said, the Cabinet expressed satisfaction over the disbursement of fund by the development partners as well as its utilization, and directed the authorities concerned to further expedite the implementation of projects.
The Cabinet also observed that the trend of foreign aid commitments and disbursements is better in Bangladesh compared to the other countries.
The ERD report also cited five reasons for delay in the execution of the foreign aided projects. These are delay in appointing necessary manpower in the projects; complexities in land acquisition; delay in the formulation of Development Project Proforma and also in procurement while there is often re-tendering; delay because of the development partners especially in getting no objection from them in various tiers of procurement in the aided projects.
Musharraf Hossain Bhuiyan said, the government is aware of the situation and has been trying its best to overcome the situation.
Under the circumstances, the ERD put forward a three-point recommendation that include strengthening the inspection and monitoring system; resolving any problem by holding tripartite meeting among the government, implementing agencies and the development partners and empowering the field offices of the development partners on procurement-related matters.
The Cabinet on Monday expressed its satisfaction over the progress of implementation of the foreign-aided projects and directed the authorities concerned to further expedite the implementation of projects.
The directive came from a meeting of the Cabinet when the Economic Relations Division (ERD) of the Finance Ministry submitted a report before the Cabinet on the amount of foreign aid in the pipeline and its utilization. Prime Minister Sheikh Hasina presided over the meeting.
Briefing the reporters after the meeting, Cabinet Secretary M Musharraf Hossain Bhuiyan said the amount of foreign aid to Bangladesh in the pipeline totaled $19.3 billion till June 30, 2014.
He said, that according to the ERD estimation, about 18 percent of foreign aid out of the pipeline is disbursed every year on average and an aided project usually takes some 6 (six) years to be implemented.
The Cabinet Secretary said that the ERD has taken initiative to this end to raise the disbursement of foreign aid to 22 percent from 18 percent on average per year by June 2016 out of the amount in the pipeline.
“Initiative would also be there to raise the aid disbursement gradually to 25 percent
per year on average to make the implementation tenure of the foreign aided projects to four years.”
He said, the Cabinet expressed satisfaction over the disbursement of fund by the development partners as well as its utilization, and directed the authorities concerned to further expedite the implementation of projects.
The Cabinet also observed that the trend of foreign aid commitments and disbursements is better in Bangladesh compared to the other countries.
The ERD report also cited five reasons for delay in the execution of the foreign aided projects. These are delay in appointing necessary manpower in the projects; complexities in land acquisition; delay in the formulation of Development Project Proforma and also in procurement while there is often re-tendering; delay because of the development partners especially in getting no objection from them in various tiers of procurement in the aided projects.
Musharraf Hossain Bhuiyan said, the government is aware of the situation and has been trying its best to overcome the situation.
Under the circumstances, the ERD put forward a three-point recommendation that include strengthening the inspection and monitoring system; resolving any problem by holding tripartite meeting among the government, implementing agencies and the development partners and empowering the field offices of the development partners on procurement-related matters.
