WB threatens to slash funds for poor execution
Seven 'problem projects' identified
DHAKA, DEC 24: The World Bank (WB) has warned the government that if it fails to improve implementation of projects, particularly those with large procurements, the bank will check further funding.The WB warning came in a letter sent to the Economic Relations Division (ERD), on December 4.It has also urged the government to improve the implementation status as it will be critical to jointly monitor the implementation timeline. Held on December 3, the Joint Technical Quarterly Portfolio Review of the WB assistant projects covered 15 projects out of the total 32 projects.
The WB identified seven projects as problem projects, while seven other projects were slow-disbursing projects.The problem projects include "Chittagong Water Sanitation and Supply Programme," "Water Management Improvement," "Investment Promotion Financing Facilities," "Deepening MTBF and Financial Management (FM) Accountability," "Central Bank Strengthening Project," "Disability and Children at Risk" and "Secondary Education Quality and Access Enhancement."
Earlier, the donor agency's "problems and solutions" meeting of the foreign-aided projects, which were included in the Annual Development Programme (ADP) for implementation in FY 2011-12, on October 19, sought frequent discussions with the government on the progress of the foreign-aided projects to ensure the proper utilisation of foreign aid.
In the meeting, the WB put forward three suggestions, ensuring commitment from the highest authorities of the ministries concerned in implementing the projects, holding review meeting at least twice a year for close monitoring of those projects.
With regard to the "Chittagong Water Sanitation and Supply Programme," the government assured the WB that the project would take off without delay after recruiting the technical consultancies to conduct the hydraulic modelling and detailed engineering designs of the transmission and distribution systems as well as engineering designs for the Modhunaghat water treatment plant.
The "Water Management Improvement" project has been put out to tender and international contract bidding, while it's also awaiting revised project plan approvals.
There have been no disbursement under the additional financing of investment promotion financing facility (IPFF). The appointment of chief executive officer for the project is still pending although IPFF has provided the necessary infrastructure and logistic support."Deepening MTBF and FM Accountability" was also identified as a problem project and is now undergoing restructuring to realign the components.The "Central Bank Strengthening" project is scheduled to close on December 30 and it is likely that the two remaining packages will have been implemented by then.
Sources said Bangladesh Bank would initially review the extension request. If the extension was not possible, the bank would need to provide financing for the ongoing and new contracts, the sources added.Staff recruitment is yet to complete for the "Disability and Children" project though it came into effect on January 22, 2009. Moreover, the detailed revised project plan is yet to be approved by the executive committee of national economic committee (ECNEC).
The WB signed an agreement to provide $130 million for improvement of the quality of secondary education, systematic monitoring of learning outcomes, and to increase access and equity in project upazilas.However, some irregularities were reportedly found in the implementation of the project. The ministry of education took action based on an internal investigation report.
In addition, a credit of $1.2 billion for the Padma Multipurpose Bridge still hangs into balance, clouded by allegations of corruption.
The WB, which agreed to lend $1.2 billion for the $2.9-billion project, suspended release of $1.345 billion until the allegation of corruption in the bidding process was dealt with.
The WB's integrity vice-president, Leonard F McCarthy, on September 21, handed over a confidential letter and the Institutional Integrity's (INT) investigation report on corruption related to the Padma bridge project to finance minister AMA Muhith, in Washington.The investigation report said that communications minister Syed Abul Hossain and SAHCO, his family-owned company, sought to coerce several companies into using SAHCO as a paid 'silent agent' for getting permission to bid for the main bridge contract of the Padma Multipurpose Bridge project.
Allegations of corruption in the bidding process of the main bridge were made by the WB, and the Royal Canadian Mounted Police has already launched investigation into corruption in the bidding process for appointment of a supervision consultant.
http://theindependentbd.com/paper-edition/frontpage/129-frontpage/86375-wb-threatens-to-slash-funds-for-poor-execution.html
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