The World Bank (WB) is set to provide a time-bound action plan for 14
slow-moving and low-disbursement projects to ensure their completion in
time.
A tripartite meeting among the WB, the Economic Relations Division (ERD) and the related ministries will take place today, where the projects will be reviewed and action plans set. If the projects look unlikely to be completed in time, they may be restructured and part of their funds cancelled.
One of the 14 projects to be reviewed is the $166 million Chittagong Water Supply Improvement Project. It was approved in March 2010 and is due for completion on December 31, 2015, but as of September 18, only 1 percent of its total outlay has been utilised.
“Given the high likelihood of not achieving PDOs [project development objectives] within the original project scope and timeline, the project is a candidate for restructuring, involving a reduction in the scope of investment activities and partial cancellation of the credit proceeds,” the WB said.
The progress of the $76 million Dhaka Water Supply and Sanitation Project approved in February 2008 is comparatively better.
The project became effective on March 2009 and is due for completion by 2015, but only 28 percent of its total outlay has been disbursed so far.
At today’s meeting, 8 action plans will be taken to be implemented over the next 3 months so that the project could be ended by 2015.
Another project which has large undisbursed balance is the $306 million Investment Promotion and Financing Facility (IPFF) project. Between August 24, 2006 and August 31, 2013, only $83.19 million has been expended.
“A mid-term review (MTR) for IPFF is scheduled by December 31, which will determine restructuring options and cancellations, if any.”
The Election Commission’s $195 million Identification system for Enhancing Access to Services (IDEA) project is also set to be downgraded due to its slow implementation. Approved in May 2011, only 1.7 percent has been disbursed until August.
The $35 million Disability and Children at Risk project approved in July 2008 would also be reviewed. The project is supposed to be completed in 2014 but has an undisbursed balance of $28.9 million.
The government has requested a closing date extension of 18 months, from December 2014 to June 2016, which the WB is likely to accept “pending satisfactory disbursement and progress towards PDO achievement”.
The Strengthening Regional Cooperation on Wildlife Protection project involving Bangladesh and Nepal, approved in July 2011 to tackle illegal wildlife trade and other selected regional conservation threats to habitats in border areas, is another slow disburser.
The $36 million project has recently entered problem project status, owing partly to “significant delays in implementation of the Bangladesh program”.
“Key capacity building initiatives are yet to commence and no civil works contracts have been awarded to date. A six month action plan has been agreed and, depending on the disbursements in the upcoming months, the MTR to be carried by December 2013 may propose restructuring, including a partial cancellation,” the WB said.
The Clean Air and Sustainable Environment project, approved in 2009 for completion by December 15, 2016, would also be discussed at today’s meeting.
“The PDO remains achievable, but implementation has been delayed,” the multilateral lender said. Of the project’s outlay of $62.2 million, $38 million remains undisbursed.
There have been significant delays in the Rural Water Supply Project and so it is up for discussion at today’s meeting. Since the project became live on May 13, 2012, only 2.53 percent of the total outlay of $75 million has been used.
The progress of the restructured Private Sector Development Support Program, too, would be discussed. The project had a cancellation of $78 million approximately, reduction in the project scope and revision of the results indicators and targets in July 2013.
The Employment Generation Program Project, which has managed to use 62.8 percent of its allocation of $150 million since November 30, 2010, is also set for review.
The National Agriculture Technology Project, which has achieved “good outcomes”, is also up for discussion. The project is scheduled to close in December 2013 but its overall disbursement of 74 percent remains behind schedule.
The WB and the ERD have been holding tripartite meetings every three months from last year to strengthen the implementation process. The multilateral lender has 41 active projects in Bangladesh.
A tripartite meeting among the WB, the Economic Relations Division (ERD) and the related ministries will take place today, where the projects will be reviewed and action plans set. If the projects look unlikely to be completed in time, they may be restructured and part of their funds cancelled.
One of the 14 projects to be reviewed is the $166 million Chittagong Water Supply Improvement Project. It was approved in March 2010 and is due for completion on December 31, 2015, but as of September 18, only 1 percent of its total outlay has been utilised.
“Given the high likelihood of not achieving PDOs [project development objectives] within the original project scope and timeline, the project is a candidate for restructuring, involving a reduction in the scope of investment activities and partial cancellation of the credit proceeds,” the WB said.
The progress of the $76 million Dhaka Water Supply and Sanitation Project approved in February 2008 is comparatively better.
The project became effective on March 2009 and is due for completion by 2015, but only 28 percent of its total outlay has been disbursed so far.
At today’s meeting, 8 action plans will be taken to be implemented over the next 3 months so that the project could be ended by 2015.
Another project which has large undisbursed balance is the $306 million Investment Promotion and Financing Facility (IPFF) project. Between August 24, 2006 and August 31, 2013, only $83.19 million has been expended.
“A mid-term review (MTR) for IPFF is scheduled by December 31, which will determine restructuring options and cancellations, if any.”
The Election Commission’s $195 million Identification system for Enhancing Access to Services (IDEA) project is also set to be downgraded due to its slow implementation. Approved in May 2011, only 1.7 percent has been disbursed until August.
The $35 million Disability and Children at Risk project approved in July 2008 would also be reviewed. The project is supposed to be completed in 2014 but has an undisbursed balance of $28.9 million.
The government has requested a closing date extension of 18 months, from December 2014 to June 2016, which the WB is likely to accept “pending satisfactory disbursement and progress towards PDO achievement”.
The Strengthening Regional Cooperation on Wildlife Protection project involving Bangladesh and Nepal, approved in July 2011 to tackle illegal wildlife trade and other selected regional conservation threats to habitats in border areas, is another slow disburser.
The $36 million project has recently entered problem project status, owing partly to “significant delays in implementation of the Bangladesh program”.
“Key capacity building initiatives are yet to commence and no civil works contracts have been awarded to date. A six month action plan has been agreed and, depending on the disbursements in the upcoming months, the MTR to be carried by December 2013 may propose restructuring, including a partial cancellation,” the WB said.
The Clean Air and Sustainable Environment project, approved in 2009 for completion by December 15, 2016, would also be discussed at today’s meeting.
“The PDO remains achievable, but implementation has been delayed,” the multilateral lender said. Of the project’s outlay of $62.2 million, $38 million remains undisbursed.
There have been significant delays in the Rural Water Supply Project and so it is up for discussion at today’s meeting. Since the project became live on May 13, 2012, only 2.53 percent of the total outlay of $75 million has been used.
The progress of the restructured Private Sector Development Support Program, too, would be discussed. The project had a cancellation of $78 million approximately, reduction in the project scope and revision of the results indicators and targets in July 2013.
The Employment Generation Program Project, which has managed to use 62.8 percent of its allocation of $150 million since November 30, 2010, is also set for review.
The National Agriculture Technology Project, which has achieved “good outcomes”, is also up for discussion. The project is scheduled to close in December 2013 but its overall disbursement of 74 percent remains behind schedule.
The WB and the ERD have been holding tripartite meetings every three months from last year to strengthen the implementation process. The multilateral lender has 41 active projects in Bangladesh.
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