Govt trims project cost after WB withdraws fund

The government on Tuesday trimmed the cost of a project by Tk 462.26 crore after the World Bank withdrew US$50 million fund citing failure in maintaining loan conditions.

The project titled ‘Support Programme for the Poorest (ISPP) – JAWTNO, was taken in 2015 with the aim of transferring cash benefits to pregnant women and mothers with children below the age of five from the selected poor households.

Mainly funded by the WB, the household data was  supposed to be collected from the National Household Database under the Bangladesh Bureau of Statistics by the Local Government Division for implementing the project by this year.

But the failure by the BBS to complete the database led to the WB’s withdrawal of the fund, forcing thereby the Executive Committee of the National Economic Council to revise down the project at Tk 1,962.74 crore from Tk 2,425.00 crore at its meeting on the day.

Chaired by prime minister Sheikh Hasina the virtual meeting from her official residence, the Ganabhaban, also increased the deadline by two years to June 2022 under the project’s third revision.

Planning minister MA Mannan, who attended the meeting, told reporters in an online briefing that the WB withdrew the fund and diverted it to the Rohingya rehabilitation projects in Cox’s Bazar.

Asked to evaluate the failure of the BSS working under his ministry, MA Mannan said they had already started the scrutiny to find out errant agencies, BBS or the others.

Withdrawal or cancellation of fund by the WB on the grounds of lapses is not new in Bangladesh, the suspension of US$1.2 billion loan to Padma Multipurpose Bridge in 2012 involved the largest amount promised.

Manan said the ECNEC also made downward revision to another project — ‘Amar Bari Amar Khamar’, previously called ‘Ekti Bari Ekti Khamar’— by Tk 125 crore to Tk 7,885 crore from Tk 8,110 crore.

He said elimination of some components of the project and changes of the project’s name required the fourth revision to the project taken in 2009 and now slated to run until June 2021.

The ECNEC also approved five new projects including the improvement of cotton research and technology transfer at the cost of Tk 63.55 crore by the Cotton Development Board under the ministry of agriculture until 2024.

The project aimed at encouraging the use of the genetically modified cotton seeds to grow more cotton and meet the local demand by 25 per cent from the current 1.5 per cent.

Md Zakir Hossain Akanda, member of the Agriculture, Water Resources and Rural Institutions Division under the planning commission, said that the GM cotton had no adverse impacts on humans since it was not a food item.

Such cotton has been cultivated in India and China too, he said.

In 2018, Bangladesh imported 8.2 million bales of cotton, of which some 37.06 per cent cotton was imported from Africa, 26.12 per cent from India, 11.35 per cent from the Commonwealth countries, 11.14 per cent from the US, 4.65 per cent from Australia, and the rest, 9.65 per cent from other countries, according to the Bangladesh Textile Mills Association.

Other projects approved by ENNEC are Khulna Sewerage System Development at a cost of Tk 2,334.14 crore to be implemented by Khulna WASA by June 2025; Water Supply System Rehabilitation in Rajshahi City at a cost Tk 93.45 crore; Sheikh Russel Digital Lab (Phase-II) Establishment Project at cost cost Tk 938.73 crore and Mujibnagar Irrigation Development Project at a cost Tk 231.33 crore.

MA Mannan said that while approving the local government project, the PM directed the local government bodies to become self-reliant gradually by increasing their revenues.

She reiterated that coordination among the agencies should be strengthened for implementing the projects in time.

News Courtesy: www.newagebd.net