ADP implementation rate hits 5yr low in July-Aug

September 29, 2014

Progress in implementation of annual development programme remained as usual slow and fell to five-year low at 5 per cent in the first two months of the current fiscal year, mainly because of low execution rate of big projects, officials and experts said. In July-August, 55 government ministries and divisions could spend only Tk 3,816 crore of Tk 80,315 crore ADP for the entire fiscal year of 2014-15, according to statistics of the Implementation Monitoring and Evaluation Division of the planning ministry.
Out of 55 ADP implementing agencies, 8 ministries and division could not spend any money in the period while 13 could spend below 1 per cent of their respective allocation, the data released on Sunday showed.
Centre for Policy Dialogue executive director Mustafizur Rahman identified the weakness in institutional capacity in implementing development projects as the reason behind slow progress in ADP execution.
There may be some problems including tendering, procurement, appointment and land acquisition in the beginning of execution of large projects that cause slow progress in ADP implementation.
But the overall progress should be higher as there are no such problems in case of ongoing projects, he said.
The government should improve the situation as delay in execution of development works minimises the benefits as well as hampers private investment, he said.
Bangladesh Institute of Development Studies research director Zaid Bakht said that traditionally ADP implementation remains slow in the first few months due to some long-existing reasons including delay in fund release, appointment of project staff, land acquisition and most importantly, lack of coordination among the ministries and divisions.
‘This year, the delay in execution of mega projects contributed in slow progress rate of ADP implementation,’ he told New Age.
He said that ADP implementation would get momentum once the physical works of those projects including Padma Bridge and metro rail get started.
According to IMED data, the agencies spent Tk 2,841 crore or 5 per cent of government fund while in case of foreign loan and grants as project assistance it was Tk 975 crore or 4 per cent.
The large 10 ministries and divisions in terms of allocation which got 72 per cent resources of total allocation could spend only 5 per cent in the period.
Among large ministries and divisions, science and technology ministry could not spend any money even in two months while water resource ministry executed 0.31 per cent, Road Transport and Highways Division 1 per cent, health and family welfare ministry 2 per cent, ministries of education, and primary and mass education could spend 3 per cent of their total allocation, the data showed.
According to the statistics, civil aviation and tourism ministry spent the highest 30 per cent of its allocation followed by religious affairs ministry with 21 per cent and expatriates’ welfare and overseas employment ministry with 17 per cent.
The ministries and divisions which spent no money in the months include ministries of public administration and foreign affairs, Information and Communication Technology Division, Anti-Corruption Commission, Bank and Financial Institutions Division, Internal Resource Division and Cabinet Division.
According to the statistics, the earlier lowest ADP implementation in the first two months was 4 per cent in FY 2009-2010.
In July-August of FY2013-14, FY 2012-13, FY 2011-12 and 2010-11, the ADP implementing government agencies spent 6 per cent, 8 per cent, 6 per cent and 6 per cent respectively, the data showed.

-With New Age input

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