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$13.46b aid stuck in pipeline
$13.46b aid stuck in pipeline
Sat, 17/12/2011 - 1:33am
The government failure to use up a large chunk of foreign assistance on schedule has resulted in a significant amount US $13.46 billion getting stuck in the pipeline, latest data from the Economic Relation Division (ERD) shows.
According to the ERD, the amount of credit reached the $12.98-billion mark and grant $1.59 billion as well as food aid $477.07 million till October.
The International Development Association (IDA) of the World Bank (WB) tops the list of lenders with $3.27 billion, ADB is in second position with $2.58 billion and China comes third with $2.38 billion, the ERD data shows.
Besides Japan committed to provide $2.07 billion, India $1 billion, Kuwait $123.11 million, Saudi Arabia $66.92 million and South Korea $250 million, the ERD data states.
Till October this year, the United Kingdom committed a grant of $576.38 million, USA $445.25 million, IDA $317 million, United Nations Development Programme (UNDP) $327.33 million, Denmark $179.92 million and Islamic Development Bank(IDB) $134.32 million, ERD sources said.
Incidentally, on Thursday, the Planning Commission asked different ministries and divisions to form an inter-ministerial task force, consisting of representatives of implementing agencies and development partners concerned, to accelerate utilisation of foreign aid.
Earlier finance minister AMA Muhith expressed concern over the government inability to utilise a large amount of foreign aid getting stuck in the pipeline.
Additional secretary in ERD Arosto Khan also told The Independent that they were concerned about the growing size of unutilised aid. He said the ERD was trying to rectify the problems dogging the utilisation of project aid.
The tardy implementation of projects funded by foreign aid has helped increase the size of unutilised funds, he added hoping that within January next, the amount getting stuck in the pipeline because of non-utilisation of aid would start shrinking with the World Bank disbursing a large amount of its commitment.
At a meeting held on October 9, lending agencies including World Bank, Asian Development Bank, JICA and the European Union sought frequent meetings with the government to find a solution to the problem facing foreign-aided projects included in the Annual Development Plant of 2011-12. They also urged the government to develop the efficiency of officials running foreign-aided projects to ensure proper utilisation of the aid money.
The massive $1.2-billion World Bank loan for the proposed Padma bridge has got stuck in the pipeline, with the Bank smelling corruption in the early stages of the construction and insisting on transparency at all levels of implementation.
The loan agreement was signed in April this year.
World Bank managing director (MD) Ngozi Okonjo-Iweala, who was present at the pact signing ceremony as guest of honour, later remarked that the WB would not compromise on quality of bridge construction. She laid emphasis on zero corruption in implementing the countrys longest 6.15 kilometre *- bridge spanning the mighty Padma and linking the south-west part with the
capital. Meanwhile, the government and the UNDP signed an agreement to implement a project titled Strengthening Capacity for Aid Effectiveness in Bangladesh aiming to enhance efficiency and effectiveness of aid management. The agreement was signed on August 14.
Proper management of this resource and ensuring accountability in its use are crucial for achieving the long-term development objectives. A recent study by ERD, Aid Management in Bangladesh A review of Policies and Procedures, identified several areas for improving the way aid is managed and utilised in the country.
$13.46b aid stuck in pipeline
Sat, 17/12/2011 - 1:33am
The government failure to use up a large chunk of foreign assistance on schedule has resulted in a significant amount US $13.46 billion getting stuck in the pipeline, latest data from the Economic Relation Division (ERD) shows.
According to the ERD, the amount of credit reached the $12.98-billion mark and grant $1.59 billion as well as food aid $477.07 million till October.
The International Development Association (IDA) of the World Bank (WB) tops the list of lenders with $3.27 billion, ADB is in second position with $2.58 billion and China comes third with $2.38 billion, the ERD data shows.
Besides Japan committed to provide $2.07 billion, India $1 billion, Kuwait $123.11 million, Saudi Arabia $66.92 million and South Korea $250 million, the ERD data states.
Till October this year, the United Kingdom committed a grant of $576.38 million, USA $445.25 million, IDA $317 million, United Nations Development Programme (UNDP) $327.33 million, Denmark $179.92 million and Islamic Development Bank(IDB) $134.32 million, ERD sources said.
Incidentally, on Thursday, the Planning Commission asked different ministries and divisions to form an inter-ministerial task force, consisting of representatives of implementing agencies and development partners concerned, to accelerate utilisation of foreign aid.
Earlier finance minister AMA Muhith expressed concern over the government inability to utilise a large amount of foreign aid getting stuck in the pipeline.
Additional secretary in ERD Arosto Khan also told The Independent that they were concerned about the growing size of unutilised aid. He said the ERD was trying to rectify the problems dogging the utilisation of project aid.
The tardy implementation of projects funded by foreign aid has helped increase the size of unutilised funds, he added hoping that within January next, the amount getting stuck in the pipeline because of non-utilisation of aid would start shrinking with the World Bank disbursing a large amount of its commitment.
At a meeting held on October 9, lending agencies including World Bank, Asian Development Bank, JICA and the European Union sought frequent meetings with the government to find a solution to the problem facing foreign-aided projects included in the Annual Development Plant of 2011-12. They also urged the government to develop the efficiency of officials running foreign-aided projects to ensure proper utilisation of the aid money.
The massive $1.2-billion World Bank loan for the proposed Padma bridge has got stuck in the pipeline, with the Bank smelling corruption in the early stages of the construction and insisting on transparency at all levels of implementation.
The loan agreement was signed in April this year.
World Bank managing director (MD) Ngozi Okonjo-Iweala, who was present at the pact signing ceremony as guest of honour, later remarked that the WB would not compromise on quality of bridge construction. She laid emphasis on zero corruption in implementing the countrys longest 6.15 kilometre *- bridge spanning the mighty Padma and linking the south-west part with the
capital. Meanwhile, the government and the UNDP signed an agreement to implement a project titled Strengthening Capacity for Aid Effectiveness in Bangladesh aiming to enhance efficiency and effectiveness of aid management. The agreement was signed on August 14.
Proper management of this resource and ensuring accountability in its use are crucial for achieving the long-term development objectives. A recent study by ERD, Aid Management in Bangladesh A review of Policies and Procedures, identified several areas for improving the way aid is managed and utilised in the country.
