PC focusing on foreign-aided projects to ease dollar crisis

With an aim to ease the ongoing dollar crisis in the country, the Planning Commission (PC) is now focusing more on getting approval for foreign-funded projects from the Executive Committee of the National Economic Council (ECNEC).

However, the Planning Commission has included around 200 foreign-assisted projects in the annual development programme (ADP) in the upcoming budget for the fiscal year 2023-24.

In last six meetings of ECNEC, the highest economic policymaking body, the PC has cleared over 30 foreign-funded development projects.

In the meetings, the commission has already cleared 30 foreign-aided projects worth around $2.4 billion against these projects which will come from development partners.

Another $2.4 billion loan for six projects is in the pipeline and these projects now await approval from the ECNEC.

Japan International Cooperation Agency (JICA) and the World Bank (WB) will provide the loans for these projects.

JICA will provide $1.3 billion loan for three projects while the rest of funds will come from the World Bank for four projects, the PC officials said.

While making comment on the issue, Planning Division Secretary Satyajit Karmakar said that they are focusing more on getting approval for foreign-aided projects from the ECNEC aiming to boost foreign currency reserves.

“We have decided to approve foreign-funded projects in the upcoming ECNEC meetings to increase the flow of foreign funds which will help ease the ongoing dollar crisis,” he also said.

The officials concerned said the World Bank will provide $191 million loan for the Higher Education Acceleration and Transformation project. It will help female students get access to quality higher education, which will result in increased female labour force participation.

The project will support pandemic and emergency responses and build systemic resilience in the higher education sector with a specific focus on digitisation.

The WB will also give $753.45 million in loan for the Accelerating Transport and Trade Connectivity in Eastern South Asia-Bangladesh Phase 1 project which will help address key barriers to regional trade--manual and paper-based trade process, inadequate transport and trade infrastructure, and restrictive trade and transport regulations and process.

Phase-1 will help replace lengthy manual and paper-based trade process with automated solutions in Bangladesh and Nepal. It will also give $250 million for a project on environmental sustainability and transformation.

The commission has asked all the ministries and divisions to send project proposals in time which are foreign-funded, the officials said, adding that the commission has to approve a project 55 days after its proposal was submitted, he added.

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

However, JICA will provide loan for Matarbari seaport development project, Chattogram-Cox’s Bazar highway improvement project, and Joydebpur-Ishwardi dual gauge line construction project.

It will provide $800.75 million in loan for the Matarbari deep-sea port development project in Maheshkhali, Cox’s Bazar.

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

The project will also contribute to the achievement of sustainable development goals (SDGs). It will help boost the flow of goods domestically and with neighbouring countries.

Japan will provide $423.54 million in loan for the Chattogram-Cox’s Bazar Highway. Roads and Highways Department is going to construct four outer roads and one elevated bypass on Chattogram-Cox’s Bazar highway aiming to ensure smooth transportation of cargoes and improve access to Matarbari port.

Besides, Japan will finance 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.

Bangladesh’s foreign exchange reserves stood at $29.80 billion on May 9 this year. The country’s forex reserves were $41.82 billion on June 30 and $44.01 billion in April last year.