SSPIRIT Project: DSS plans to spend Tk 1.94b for consultancy service

The Department of Social Services (DSS) plans to spend over Tk 1.94 billion for consultancy service to distribute Tk5.89 billion in cash to around 4.5 million poor people under the "Strengthening Social Protection for Improved Resilience, Inclusion and Targeting (SSPIRIT)" Project.

The project proposed by the Ministry of Social Welfare is set to be placed at the meeting of the Executive Committee of the National Economic Council (ECNEC) scheduled to be held today (Sunday) for final approval, said officials of the Planning Commission.

An analysis reveals that consulting firms are set to receive Tk 1.73 billion, while eight individual consultants will be paid a total of another Tk 210.19 million-averaging a monthly salary of Tk0.48 million each, with some earning as much as Tk0.60 million per month.

Economic experts have pointed out that while consultancy is necessary for the project design and implementation, the costs associated with consultants should be more carefully scrutinised.

In a time of economic hardship, when inflation is high and the poorest sections of society struggle to make ends meet, it is crucial that the government ensure every taka spent on such projects directly benefits the people who need it the most, said Dr Zahid Hussain, former lead economist at the Dhaka office of the World Bank.

"Reducing ancillary expenses in social protection projects would help for increase in the number of beneficiaries or a higher benefit amount per person," said Dr Fahmida Khatun, executive director, Centre for Policy Dialogue (CPD).

However, the DSS officials blamed the World Bank, the project's lender, for the higher consultancy costs, while Planning Commission officials noted that both the number of consultants and their costs had been reduced compared to the initial proposal.

Documents reveal that the total cost of the proposed project is estimated Tk9.04 billion, of which the government will contribute Tk41.72 million, while the remaining Tk 9.0 billion is expected to be sourced as a loan from the World Bank.

Under the project, 150,000 elderly individuals will receive old-age allowances, and 100,000 of them will also be provided with income-generating training.

An additional 150,000 people with disabilities will receive cash assistance, with 100,000 of them receiving training.

Furthermore, beneficiaries will be given Tk50,000 each as capital support after completing income-generating training, with a special focus on women-particularly widows and those deserted by their husbands.

Moreover, the project will establish a Dynamic Social Registry covering 13.5 million beneficiaries of four major social safety net programmes through verifying their NID numbers to prevent duplication and ensure better targeting.

The DSS proposed Tk72 million for transport hiring, Tk 10 million for seminars, Tk126.5 million for advertisements, Tk 25.64 million for outsourcing services, Tk 602 million as honorarium, and Tk 15 million for foreign training trips involving 30 individuals.

An analysis revealed that the proposed allocation of Tk3.15 billion to operate cash transfers worth Tk5.89 billion suggests that Tk 53.51 will be spent on operating expenses for every Tk100 transferred.

Dr Fahmida Khatun said it is very much illogical to spend Tk0.54 to transfer just Tk1 to the poor.

She emphasised that the project's excessive operational costs should be reduced, which would allow for an increase in both the number of beneficiaries and the amount of assistance per person.

Dr. Zahid Hussain noted that cash transfer programmes are not new in Bangladesh, but they often suffer from significant inefficiencies due to targeting errors.

He added that the government should focus on reducing corruption and irregularities in such projects, rather than increasing consultancy costs.

The economist also questioned the rationale behind providing training to elderly individuals, asking, "Will such training really help them graduate from the social protection programme?"

jahid.rn@gmail.com