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Minimal record of ADP implementation amid political turmoil, project review
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Minimal record of ADP implementation amid political turmoil, project review

This rate marks the lowest ADP implementation recorded to date based on available IMED data from FY 2010-11, where implementation in previous years ranged between 8-10% for the same period.

TBS report

October 28, 2024, 4:10 p.m

Last modified: 29 October 2024, 04:11

Infographic: TBS

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Infographic: TBS

Infographic: TBS

The Annual Development Program (ADP) saw a record implementation of 4.75% in the first quarter of the current fiscal year (FY25), attributed to political turmoil and the ongoing review by the caretaker government of projects initiated by the previous government.

Data from the Implementation Monitoring and Evaluation Department (IMED), released yesterday, shows that 13,215 million lei was spent in the first quarter against the ADP allocation of 2.78 million lei.

Based on IMED data available as of FY 2010-2011, implementation in previous years for the same quarter typically ranged between 7.5% and 10%.

IMED officials attributed the slow implementation to political unrest, which began with the student-led uprising in July, followed by the fall of the Awami League government in August, the takeover by the caretaker government, and the persistent volatility of political conditions.

IMED Secretary Abul Kashem Md Mohiuddin told TBS, “The new government is currently reviewing all the projects (taken during the tenure of the previous government). Following this review, decisions will be made on less critical projects, leading to reduced funding for many of them. Therefore, ADP implementation is slower compared to the same periods in previous fiscal years.”

According to IMED officials, the government is prioritizing the disbursement of funds for critical projects, further impacting the overall ADP implementation rate. Plans to extend the deadline and increase costs for some projects are also on hold, contributing to the delay in implementation.

Some foreign-funded projects also suffered setbacks as foreign consultants, contractor representatives and workers left project sites, affecting project continuity, they said.

Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development, told TBS: “The current ADP projects were initiated by the previous government, many of which were driven by political motives rather than public welfare. This is why the current government is reviewing these projects.”

“Projects will be screened and unnecessary or unimportant ones will be eliminated. Moreover, since the previous government has already invested significantly in certain projects, the costs of many of them will be reduced after the review,” he said.

However, he stressed that this review process needs to happen quickly as it is more than three months into FY25 and the selection work remains incomplete, which further slows down the rate of implementation of the ADP.

However, Mujeri warned that the funds should not be released without proper scrutiny.

IMED data shows that 15 ministries, divisions and departments received a total of 76.65% of the ADP allocation for the current fiscal year.

In the first quarter, the implementation rates were 8.26% for the Local Administration Directorate, 8.11% for the Energy Directorate, 7.81% for the Ministry of Railways, 6.07% for the Ministry of Primary and Mass Education, 3.34 % for Roads and Highways. Department, and 3.27% for the Ministry of Science and Technology.

Among those with the lowest implementation rates were the Ministry of Shipping at 1.86%, the Directorate General of Health Services at 2.21%, the Ministry of Water Resources at 0.36%, the Bridges Division at 0.89% and the Division of Medical Education and Family Welfare. to 0.91%.

Expenditure on ADP implementation from both government funds and external loans and grants declined in the July-September quarter of this fiscal year.