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Procurement, Recruitment Delays

Govt failed to spend full funds of ADB projects

Rejaul Karim Byron and Ashfaq Wares Khan
The government has failed to spend its Asian Development Bank (ADB) project funds in time due to significant delays in procurement and recruitment, according to an ADB study.
The finding comes as the ADB plains to lend 52.8 billion between 2009 and 2011 to be given on the basis of performance and fundabsorption capacity.
The proposed loan will be subject to regular performance-based
assessment and will only finance large infrastructure projects that contribute more directly to growth', according to ADB documents.
The issue will be discussed irt detail at a meeting between the government and ADB today, which will wrap up the assessment and planning of ADB programmes and evaluate the government performance in implementing projects.
The ADB study, which will be presented at today’s meeting, has found that none of its eight projects has fully disbursed the funds, with
two projects in the energy and power sector missing the disbursement deadline.
The 5180 million West Zone Power Development project has spent only 62 percent of its fund despite running over the target timeframe by 26 percent. The $50 million Dhaka Clean Fuel project has disbursed only 67 percent despite being 11 percent over its target period.
On the other hand, the massive S230 million Gas Transmission and Development project has dis jursed only 2 percent of its project unds with 42 percent of its target imeframe elapsed.
With two-thirds of the time ^lapsed, the Road Network mprovement and Maintenance jroject has disbursed only 2 percent ind the Chittagong Port Trade -acilitation project has spent only 4 jercent
Meanwhile, delays in major jooijs and works procurement range rom 161 days to 462 days.
The Gas Transmission and Development project suffered a 462-iay delay in procurement, when the wrmal period for contract signing jeing only 147 days instead of the 609 lays already elapsed on the contract, fhe government has invited re-jidding for the project.
Delays in consultant recruitment ■ange between 16 months to 27 nonths for ADB-govemment pro-ects in2007, says the ADB study.
Similar delays have forced defer-al of the'Clean Fuel Sector Development Programme and the Development ofTransport Corridors or TYade Facilitation Project, with he ADB transferring the allocated >460 million from these two projects o next year.
However, these findings have not iignifi candy affected the ADB's plans jive loans to Bangladesh over the iext fewyears.
The ADB has proposed to lend >847 million for 2009, $815 million or 2010 and $820 million fo r 2011.
The proposal includes $610 Trillion for the power and gas sector aetween 2009 and 2010.
Three of the major priorities for he sector include a new gas distribu -ion company for the southwest, narket-oriented pricing to ease inancial pressure, and enactment of he Gas Act to regulate transmission ind distribution of gas.
The transport sector will get aroposed $1.2 billion in 2009 and
$475 million for 2010. The transport loans will focus on better governance and improving regional connectivity, including plans to improve rail-links between Dhaka-Chittagong-Bogra, and with neighbouring countries.
The 2009 fund also has a large chunk going towards improving the capacity of Chittagong Port to better handle cross-border regional traffic and reforming the Mongla Port.