Development works slow as only 75 projects cleared last fiscal

Development works suffered badly as only 75 new projects involving Tk 984.98 billion were endorsed in the past fiscal year--the lowest in two decades in terms of both their number and expenditure.

Official statistics show the Executive Committee of the National Economic Council (ECNEC) gave its seal of approval to these few development projects in the fiscal year 2024-25, evidently as the entire time reeled from political upheavals and regime change.

However, the total approved projects came to 79 as the Planning Adviser and former Planning Minister approved another 14 projects with a cost limit of Tk 500 million each outside the ECNEC purview, reveal several documents of the planning commission.

Documents show that 243 projects on average received approval in the fiscal tear 2023-24 and the number of approved projects in the last fiscal was only 32.58 per cent of the previous one.

Planning Commission officials have said the decline in project approvals reflects the interim government's strategy of subjecting projects to stricter scrutiny-both in terms of necessity and component-wise cost estimates-to ensure the best use of public money.

However, experts and economists say the lowest implementation of the Annual Development Programme (ADP) in a decade has already increased pressure on ordinary people by reducing the flow of cash in the economy.

They warn that if the process of approving new projects continues to stall, development activities will slow down further, resulting not only in a reduced money flow to the general public but also in a disruption to private investment.

Planning Adviser Prof Wahiduddin Mahmud has reiterated on several occasions that the government adopted a cautious approach-slowing down both the implementation of ongoing projects and the approval of new ones-to prevent waste of public funds.

At the same time, he acknowledged the need for fresh projects to maintain economic momentum, while attributing the shortfall in proposals to capacity constraints among officials of ministries and divisions responsible for preparing project plans.

A review has found that the number of approved projects annually from FY 2020-21 to FY 2023-24 varied from 207 to 290.

The lowest project approvals in the last fiscal year have brought down the number of investment projects in the current year's Annual Development Programme (ADP) to just 996-26-per cent lower than the 1,345 projects in the Revised ADP (RADP) of the last fiscal.

Planning Commission data show that while the RADP of FY2008-09 had 1,040 projects, the number had never dropped below one thousand in any fiscal year until the last one.

Data of the Implementation Monitoring and Evaluation Division (IMED) show that while only 79 projects were approved in the last fiscal year, nearly 300 were completed, and another 291 are scheduled for completion this year.

Experts warn that unless new project approvals keep pace, the continuity of development works could be at risk.

Dr Mustafa K. Mujeri, former Executive Director of the Bangladesh Institute of Development Studies (BIDS), says most of the ADP funds are spent on construction-related works, including buildings, roads and railways, with only a portion reaching the pockets of the poor.

With such works slowing down, not only has cash flow to the poor declined but linked industries have also faced disruptions.

"It is true that unchecked project approvals in the name of development led to embezzlement of public money such practices must be stopped to ensure continuity of development works," he told the FE.

He suggests sufficient reforms to strengthen project approval, implementation and monitoring processes. Planning Commission senior officials have said several ongoing projects have been scrapped as a cautionary measure, while major works-including a metro rail-remain stalled. Ministries are also submitting fewer project proposals under the same cautious approach.

Musrat Meh Jabin, Chief (Additional Secretary) of the Programming Division at the Planning Commission, says the Commission is solely responsible for project approval, while sector officials, members of the Project Evaluation Committees, and representatives of implementing agencies also share responsibility.

She says, "The number of new project proposals dropped sharply during the government's transition period but is now approaching normal levels."

The ECNEC approved revisions of 48 projects: In its 12 meetings last fiscal year, ECNEC approved revision proposals for 48 projects with a combined estimated cost of over Tk 1.37 trillion.

The initial cost of these projects was Tk 882.31 billion, reflecting an increase of Tk 489.51 billion-or 55.48 per cent.

The government's principal economic policy body endorsed the first revision for 18 projects and the second revision for another 18, while the remaining projects received their third or fourth revisions.

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