Home Bangladesh New projects discourage due to financial crisis
Bangladesh - Management - April 25, 2023

New projects discourage due to financial crisis

Zarif Mahmud: The Planning Commission is discouraging new projects due to financial crisis. In this regard, emphasis is being given on timely completion of ongoing projects rather than taking up new projects in the next financial year 2023-24. Not only this, it has said that in view of the resource constraints, new projects not approved for government funding can’t be included in the ADP unless they are absolutely essential and of high priority.
Recently the organization has issued guidelines for preparation of new Annual Development Program (ADP). This issue has been highlighted there. The commission also said that such initiatives have been taken for fair 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 money from the slow-moving projects.
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 to ADP in the next financial year. In this regard, for food security, agriculture, agro-based industries, power sector, labor-power efficiency enhancement, poverty alleviation projects should be given utmost importance.
Along with this, priority should be given in the allocation of projects related to the rehabilitation of natural disasters such as cyclones, floods, floods, heavy rains etc. When asked, former Planning Secretary Mamun-al-Rashid told, “There is an obligation to follow the policies that are issued for 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 accepted, 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 them is to follow the government plans to increase per capita income, reduce poverty and improve the quality of life of the people. For example, the Project must 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 studies 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.

Check Also

Govt plans to borrow Tk 2.5 tr for budgetary support in FY 2025

Mahfuja Mukul: Government’s dependence on debt to meet development and operational expendi…