Aid disbursement under investment projects for the first quarter of fiscal 1996-97 improved considerably compared with the last four years Indicating a positive trend in project implementation.

According to official sources. disbursement of aid through August of the current fiscal year was 4.43 per cent or 62.12 million US dollars of the undisbursed opening balance of 1140.04 million dollars as against 1.93 per cent during the same period of last fiscal year.

This disbursement rate is the highest for the last four years, they pointed out. In 1995-96, this rate was 1.91 per cent, in 1994-95 it was 2.46 per cent, and in 1993-94 the rate was 3.72 per cent.

Officials of the Economic Relations Division (ERD) has-pegged four reasons for this improved disbursement perfor

mance : political stability, improved implementation rate and large release of some funds.

The political stability has certainly added to this better performance," said a senior official at the ERD. "In the last two years, the rate of disbursement was at its lowest because project activities were hampered due to disturbance. Now, we had three months of trouble free work environment that kept the wheels moving undisturbed."

The World Bank, however, has attributed the increased disbursement to large payments under four credits programmes — fourth Population project. Jamuna Bridge. Second Road Rehabilitation and Maintenance. and Third Inland Water transport.

Aio-dtebursement nr agfteul ture sector projects witnessed the biggest improvement during the first quarter of the current fiscal. According to official figures, disbursement for agriculture projects was 6.08 per Cent of the opening balance during the first quarter of 1996-97 Sainst 1.04 per cent in 1995-

. 2.10 per cent in 1994-95. 3.04 per cent In 1993-94 and 1.10 per cent in 1992-93.

The disbursement performance of the non-agriculture projects was rated as 5.21 per cent of the opening balance in the ffrst quarter of 1996-97. while it was 2.58 per cent in 1995-96. 2.52 per cent In 1994-95, 2.94 per cent in 1996-94 and 3.80 per cent in 1992-93.

Of the total disbursed amount of 62.12 million dollars during the first quarter of 1995-96, 19.35 million dollars were in agriculture projects and 42.77 million dollars in nonagriculture projects.

Meanwhile, a recent letter from the World Bank to the ERD has pointed out that disbursement claims by the government on six projects are slow and urged the government that appropriate measures be taken to speed up submission of disbursement claims.