Home ›› 05 May 2020 ›› World Biz
The government is planning to impose economic austerity measures to contain the coronavirus crisis which has stalled all the economic activities. Government has announced around Tk 1 lakh crore, prioritizing to save lives of people in the country.
Moreover, government is not shying away from cushioning the impact of the coronavirus. The impact is mounting pressure on the economy, prompting the government to impose austerity measures, by snapping or squeezing the channeling of funds to unnecessary or less important projects.
Sources in the finance ministry said that the low-priority projects or less important development programmes are asked to stop implementation to have redress from the health crisis.
In case of any expenditure, authorities concerned will need nod of finance ministry. Projects of medium priorities, which are seemingly essential, are asked to reconsider their expenditure.
As per the directives of Prime Minister, planning commission is working for drawdown of funds from the projects under Annual Development Programme (ADP) and the target is to reimburse it for soften the impact of coronavirus. To this end, 317 ADP projects, which were supposed to end by June 30 this year but lie stalled due unavoidable circumstances, are identified to withdraw money.
The unspent money of the projects, upon calculations and revisions of all the programmes, will be sent for absorbing coronavirus shock and the ADP budget is downsized by Tk 22 thousand crore, the sources added.
Moreover, many projects stay stalled over coronavirus and subsequent lockdown and the project costs were scaled up for delayed implementation, forcing the authorities to toe the line of austerity policy.
For coronavirus and lockdown may further delay the completion of 314 ADP projects, enticing contractors to demand more and more money for their delayed projects.
Of these projects, Ministry of Road Transport and Bridges is implementing three mega projects— Metro Rail, Padma Bridge and Karnaphuli Tunnel— which cost Tk 60 thousand crore. Of the trio projects, works on Metro Rail stalled fully while the rest two projects slowed.
Railway Ministry has three more mega projects— railway lines on both ends of Padma Bridge, Dohajari-Cox’s Bazar railway link and Akhaura-Laksam dual railway lines. Of the three projects costing Tk 64 thousand crore, the setting up of railway lines approaching Padma Bridge is in progress on limited scale but the rest have stopped, the sources said.
Of the six projects of these ministries, which cost altogether over Tk 1 lakh crore, none of the Padma Bridge project had been infected with coronavirus and even some Chinese workers have joined works fully fit though they returned from coronavirus hotspot Wuhan which hosts Padma Bridge construction company’s headquarters, the sources added.
Handful officers, who couldn’t return to workplace, are replaced properly by Major Bridge Engineering to keep the pace of Padma Bridge construction. Even under the circumstances of lockdown for coronavirus, two spans were placed and the construction of rest 13 is going on at Mawa.
Padma Bridge Rail Link Project Director Engineer Golam Fakhruddin A Chowdhury said, “Our target is to commission railway line between Bhanga to Mawa and that’s why we are pacing up our work.”
Bangabandhu Sheikh Mujibur Rahman Tunnel Project Director Harunur Rashid said, “Works on Karnaphuli tunnel hasn’t stalled but it has lost momentum because the Chinese nationals, who are supposed to join workplace, have failed to reach due to lockdown over coronavirus. Along with that, local 1000 workers are not at work, slowing the work.”
Meanwhile, despite decision to end the 314 projects as per the revised ADP, the projects falter to finish within deadline. The insiders fear delay in completion of the current year’s projects.
According to Planning Commission sources, 355 projects have been identified for completion in the main ADP for the current fiscal year (2019-20). Of these, 341 were investment projects and 14 were technical assistance projects. But in the middle of the financial year, the ministries and departments have deviated from that goal. As it will not be possible to complete 41 projects, 314 projects are scheduled to be completed in revised ADP. Of these, 312 are investment projects and two are technical assistance projects.
When contacted about the matter, the Secretary of the Department of Implementation Monitoring and Evaluation Abul Mansur Fayez Ullah said, “The projects are not progressing due to the lockdown. I do not know how long this situation will continue. If the situation is prolonged, the duration of most projects may be extended. At the same time, there is a risk of increase in expenditure.”
At the time of approval of the revised ADP in March, it was said that the necessary allocations have been confirmed in favour of these projects. Therefore, the expected results of these projects must be produced in time and the projects must be completed by June this year. Moreover, the proposal to extend the duration of the projects will not be considered. But the countrywide lockdown for coronavirus began shortly after the RADP was approved at the National Economic Council (NEC) meeting on March 19. As a result, the implementation of the projects is hampered, added Fayez Ullah.
Asked about the matter, Planning Secretary Md Nurul Amin said, “Due to lockdown for coronavirus projects are not progressing and if it is prolonged, the projects are certain to be added to the next ADP.”
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