ERD directs ministries to bar donors from project meetings

The Economic Relations Division (ERD) under the Ministry of Finance has instructed all ministries and divisions to exclude development partner representatives from Project Steering Committee (PSC) and Project Implementation Committee (PIC) meetings convened by sponsor ministries and implementing agencies.

In a letter issued last week by the ERD's Europe Wing, following guidance from Finance Adviser Dr Salehuddin Ahmed, ministries were urged to refrain from involving donor representatives in these internal decision-making forums.

The letter, signed by Md Maksud Alam, deputy secretary of the ERD, stated that allowing donors to attend violates existing government guidelines and undermines the government's ability to independently evaluate and manage aid-funded projects.

A senior ERD official explained that PSC and PIC meetings fall under the Planning Division's Development Project Formulation, Processing, Approval and Revision Guidelines, which explicitly prohibit external stakeholder participation.

Despite this, donor representatives have been attending such meetings across various ministries and divisions, as confirmed by a review of notices and minutes, the official added.

The letter highlighted that donor involvement restricts open discussions on project shortcomings -- especially where donors have direct stakes -- and creates opportunities for undue influence, thereby compromising the government's strategic control over project management.

A former ERD secretary told The Financial Express that the division regularly arranges tripartite meetings involving development partners, project sponsors, and implementing agencies to review project progress and challenges.

He noted that project implementing agencies maintain communications with donors through the ERD, making their attendance at PSC and PIC meetings  unnecessary and counterproductive.

ERD officials stressed that safeguarding policy autonomy -- the government's ability to make independent decisions regarding aid management -- is a critical national interest. The involvement of foreign lenders' representatives in PSC and PIC meetings threatens this autonomy, the division warned.

The letter also observed that many officials remain unaware that the Planning Division's guideline has been in effect since 2022, leading to inadvertent breaches of government policy by including donor representatives in these meetings.

"To establish strong government leadership in project implementation, it is essential to strictly follow the Planning Division's directive and limit PSC and PIC meetings to government stakeholders," the ERD concluded.

Economist Dr Mustafa K Mujeri, former director general of the Bangladesh Institute of Development Studies (BIDS), said while development partners play a vital role in financing projects, internal government meetings should remain exclusive to preserve strategic coherence and national leadership.

"Such meetings are crucial for maintaining policy space, allowing the government to critically assess implementation capacity and project risks without external pressure," he added.

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