The World Bank (WB) has asked the government to restructure the plans and review the parameters, including financing, performance contracts and timelines, of 13 problematic projects. In particular, the WB has asked the government to revise the plans and review the financing, performance contracts and timelines for completion of subprojects, and discuss with the Bank in order to strengthen implementation of the WB-financed portfolio for enhancing the achievement of results and developmental impact of these projects. The WB has identified the following 13 projects: Identification System for Enhanced Access to Services (IDEA) project (USD 195 million); Skill and Training enhancement project (USD 79 million); Dhaka Water Supply and Sanitation project (USD 145 million); Chittagong Water Supply Improvement project (USD 170 million); Emergency cyclone restoration and recovery project (USD 216 million); Clean air and sustainable environment (USD 62.2 million); Strengthening regional cooperation on wildlife protection (USD 36 million); Reaching out of school children (USD 86 million); National Agriculture Technology project (USD 62.6 million); Investment promotion and financing facility (USD 257 million); Nutan Jibon Project II (USD 115 million); Disability and children at risk (USD 29.9 million) and Private Sector Development support project (USD 120 million).
According to the decision of the latest portfolio meeting between the Economic Relations Division (ERD) and the WB, the Chittagong Water Supply and Sewerage Authority (CWASA) will finalise the proposal evaluation stage and complete the combined evaluation report and contract negotiations for the water treatment plant consultancy by May 31.
From the beginning, this project has faced problems related to implementation. According to the decision, the Chittagong WASA will finalize the technical proposal evaluation for the distribution network consultancy and complete the combined evaluation report and contract negotiations by May 31. On the other hand, the WB will complete hydrological modelling by July this year.
The WB warned that if the Chittagong WASA fails to sign the consultancy contract for the water treatment plant by May, the project may be up for
cancellation.
Again, if the private entrepreneurs of Bangladesh fail to develop projects as per WB standards, the multilateral global lender would not be able to release a total of USD 257 million under Investment Promotion and Financing Facilities (IPFF)
projects.
The private entrepreneurs complained that government officials did not develop expertise while carrying out feasibility, environmental, and other operational studies for implementing such projects.
The WB came forward with an amount of USD 257 million for financing the much-talked-about public-private partnership (PPP) projects, through local
participating financial institutions (PFIs).
The WB had provided USD 50 million in 2007 for seven independent projects related to development of infrastructure. Those projects were implemented successfully, albeit on a pilot basis.
On May 4, 2010, the WB approved an additional financing of USD 257 million to provide long-term funding for
infrastructure through the IPFF projects.
However, since no potential project has been developed by the private sector, the government is yet to receive any funds for the projects. Though two-and-a-half years have elapsed, no progress has been made in the second phase of the projects. During this period (2010-2013), only three projects, involving USD 61.23 million, have been selected for the IPFF entitlement.
The projects are the Chittagong EPZ Central Effluent Treatment Plant (USD 2.43 million), Baraka Patenga 50 MW power plant (USD 20 million), and the 108-MW gas-fired power plant at Ghorashal in Narsingdi (USD 38.8 million).
The WB suggested that the project implementation unit should work with the finance division and the ERD to revise the detailed project plan and work closely with the relevant private entrepreneurs so that the revised environmental management plan for the Chittagong environmental treatment plant can be resubmitted.
-With The Independent input
