Delay in ECNEC approval sticks over $3b foreign fund in pipeline

Over $3 billion in foreign aid for eight development projects got stuck in the pipeline as the executive committee of the National Economic Council is delaying approving the projects.

However, the two donor agencies have approved providing loans for implementing these projects. The Japan International Cooperation Agency (JICA) will provide $1.3 billion for three projects while the rest of the fund will come from the World Bank for five projects.

The Planning Commission has taken steps to expedite the approval of foreign-funded projects, one of the joint secretaries at the planning ministry told The Business Post.

“Approval of projects is being delayed as the meeting of the ECNEC became irregular amid the global economic crisis. The ministries and divisions concerned are not sending the revised development project proposal to the commission,” he added.

He also said the Planning Commission has sent back the project proposals to the ministries as there was no feasibility study. The commission has to approve a project by 55 days after its proposal was submitted, he added.

“We have already held inter-ministerial meetings to expedite the approval of these projects. We will approve the project soon,” he said.

Planning Minister MA Mannan said, “The government has given importance to implementing foreign-funded projects as we need it. The planning commission will approve it soon.”

Officials of the Planning Commission said the World Bank has approved to provide $191 million for the Higher Education Acceleration and Transformation project, $358 million for a Bangladesh Road Safety Project, $753.45 million for the Accelerating Transport and Trade Connectivity in Eastern South Asia-Bangladesh Phase 1 project, $500 million for Resilient Infrastructure for Adaptation and Vulnerability Reduction, and $250 million for a project on environmental sustainability and transformation.

The funding for the projects was approved between June 2021 and December 2022.

Of these projects, the Resilient Infrastructure for Adaptation and Vulnerability Reduction project got ECNEC clearance.

Besides, the loan agreements and ‘Exchange of Notes’ of $1.3 billion for three JICA-financed projects were signed in the last month.

The projects are Matarbari port development, Chattogram-Cox's Bazar highway improvement, and the construction of a dual gauge line between Joydebpur and Ishwardi.

JICA will provide $800.75 million for the Matarbari port development project in Maheshkhali, Cox's Bazar.

The objective of the project is to strengthen the port’s cargo-handling capacity and to facilitate logistics operations with neighbouring countries. It will do so by constructing a multipurpose deep-sea port for containers and general cargo in the Matarbari area of Cox’s Bazar and contributing to the economic development of Bangladesh. The project will also contribute to the achievement of SDGs.

The project will help to boost the flow of goods domestically and with neighbouring countries.

Japan will provide $423.54 million to the Chattogram-Cox's Bazar Highway.

The Roads and Highways Department is going to construct four outer roads and one elevated bypass for Chattogram-Cox's Bazar highway, aiming to achieve the smooth transportation of cargo and improve access to Matarbari Port.

Besides, Japan will finance conduct a survey and prepare the design of the Joydebpur-Ishwardi dual gauge rail line project. Initially, it will lend $32.13 million to this project.