The Economic Relations Division has lowered the availability for foreign loans by US$ 420 million in the outgoing fiscal year because of slow utilisation of project aids. ERD officials said initial projection of US$ 3,370 million had been revised to US$ 2,950 million after the ministries and divisions could not improve implementation rate of projects funded by lenders.The availability of net foreign aids, as calculated by the ERD in the outgoing fiscal year, will stand at US$ 1,819 million after payment of US$ 1131 million for debt servicing.
The projected net foreign aids will be only US$ 99 million more than the receipt coming in the last fiscal year.
In 2012-13, US$ 2,811 million aids were disbursed by the donors while the government paid back US$ 1,091 million during the same fiscal year.
Last week, the ERD informed the ministry of finance about the latest situation of foreign aids to help the letter prepare the national budget for the upcoming fiscal year.
Donor agencies mainly provide loans for financing the the annual development programme. Only 45 per cent of ADP was implemented in the first nine months of outgoing fiscal year.
Experts expressed doubt about the quality of the ADP projects saying that major portion of the ADP completed in last three months of the fiscal year.
Bangladesh Institute of Development Studies Research director Zaid Bakht said the last minute hurry in execution of ADP causes wastes of money.
Another expert observed that the foreign aid was falling compared to the size of national budget and ADP which is not a good sign.
Debapriaya Bhattacharya of Centre for Policy Dialogue said the falling aids from the donors were forcing the government to rely on suppliers’ credit and non-concessional loans, but interest rate and condition of such loans are stiff.
The present government struck a series of suppliers’ credit deals in the last several years including US$ 1 billion arms purchase from Russia and US$ 450 million loan from the same country for a feasibility study of the proposed nuclear power plant at Rooppur in Pabna, and US$ 800 million loan from India.
It has continued purchase of aircraft from the US on suppliers’ credit and implemented at least half a dozen projects including US$ 306 million Ghorashal power plant on Chinese suppliers’ credit.
-With New Age input
