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Corporate - Power & Energy - April 9, 2023

No new projects in ADP for FY2023

Zarif Mahmud: Completion of ongoing projects on time without taking up new projects, discouragement of taking up less important projects except nationally important projects.
Nationally important projects, fast track projects and mega projects including foreign aided projects are being given more importance considering resource constraints and unless they are absolutely essential and highly prioritized, government funded new projects cannot be included in the Annual Development Program (ADP).
Recently the organization has issued guidelines for preparation of new Annual Development Program (ADP). This issue has been highlighted there. According to the Planning Commission, such initiatives have been taken for proper utilization of resources and obtaining the desired benefits. Along with this, the ministries and departments have been asked to ensure allocation to fast-paced projects by deducting the money from the slow-moving projects – according to the relevant sources.
In this context, the policy signed by Planning Secretary Satyajit Karma has said that the current global economic context should be taken into account in the allocation of funds for ADP in the next financial year. In this case, for food security, agriculture, agro-based industry, power sector, increasing the efficiency of labor force, poverty reduction projects should be given the most importance.
Along with this, priority should be given in the allocation of projects related to rehabilitation of natural calamities such as cyclones, tidal waves, floods, heavy rains etc.
When asked, former Planning Secretary Mamun-al-Rashid said that there is an obligation to follow the policies that are issued for the ADP or revised ADP. Ministries and departments send about 30-35 project proposals for ADP. The Planning Commission examines the policy in terms of allocation of funds or addition of other projects. If these are not met, the proposal is not accepted.
According to Planning Commission sources, projects that have foreign loans or grants are being given importance in the context of the ongoing dollar crisis. In this regard, it has been said that priority should be given to proposals for allocation of matching funds to foreign aided (contracted/guaranteed aid) projects. Also, priority should be given to new projects that have foreign funding.
It has also been said that allocations should be ensured for the government’s highest priority fast track projects and projects scheduled for completion in the financial year 2023-24. In terms of allocation of funds in ADP, importance should be given to supporting projects (link projects) in the implementation of initiatives undertaken on the basis of Public-Private Partnership (PPP).
The guidelines from the Planning Commission also state that the approved DPP (Development Project Proposal) should follow the guidelines regarding the use of funds provided in the price contingency and physical contingency sectors.
According to the sources, there are several precautions in preparing the ADP for the next financial year. One of these is to follow the government plans to increase per capita income, reduce poverty and improve the quality of life of the people. For example, projects should be proposed in accordance with the Vision Plan (2021-41), Eighth Five Year Plan (2020-25) and Bandip Plan-2100.
In the preparation of ADP for the next financial year, sector-wise allocation, approved projects, unauthorized new projects without allocation and self-financed projects should be included in ADP in accordance with these plans.
The Planning Commission has also said that investment projects which have undergone feasibility studies should be included in the list of new unapproved projects only. Besides, feasibility study projects like investment and technical projects should be included in the list of new unapproved unallocated projects in ADP to be processed for project approval. It is not appropriate to give projects that will be taken up in the future.

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