Project revision and extension faces hard times as the Planning Commission is applying a new method of scrutinising every step during implementation of ongoing projects to prevent time and cost escalations, officials say.
"We have prepared an information form. When any project office seeks time extension or revision of the projects, we call them to provide all the information regarding the implementation status. If they fail, we do not endorse their demand," a senior PC official said Sunday.
In the form, all the information from the "date of approval" to "latest implementation status" of the development project will have to be reflected, he said.
In most of the cases, projects' authorities fail to execute the development projects under the Annual Development Programme (ADP) in time and seek time extension or revision by enlarging the cost.
An FE analysis has found that more than 80 per cent of projects in the ADP over the last few years got extension or revision for their failure in timely execution.
Analysts and PC officials said faulty feasibility study, changing design at the middle stage, delays in tendering process for procurement, land- acquisition complexities are the key reasons for the time and cost escalation of the development projects.
The Pc official said: "After getting the information, we check the approval date, date for the detailed design, tender invitation, tender evaluation, work order, contract signing with the contractor, land acquisition and implementation status every year. If we find any mismatch, we then ask explanations from the project authority."
Amid the local economic slowdown due to global impact, the Russia-Ukraine war and international-price shocks, Bangladesh government has taken an austerity stance for its development spending in the current fiscal.
The government has already categorised the ongoing projects into three and does not approve the fresh projects indiscriminately save important ones.
Some 717 development projects out of ongoing nearly 1300 in the annual development programme (ADP) of the current FY2022-23 have been enlisted for postponing funds or providing lesser funds from their earmarked allocations.
According to the PC, a total of 81 projects have been placed on the red list as funding for those will be stopped in the current fiscal.
Besides, 636 projects will acquire partial funds against their annual allocations over the year.
The National Economic Council in June last fiscal year (FY)2021-22 approved a Tk 2.46 trillion worth of ADP for the current fiscal, allocating funds for some 1300 investment projects.
Another senior PC official said: "Previously, we did not find out details of the project-approval date, its procurement and implementation plan and the result. But now we are seeking information of the projects for its every step between approvals to current execution status before considering the revision or time- extension proposals."
The practice has been started mainly for the infrastructure-development projects under different ministries and agencies, including Roads and Highways Department (RHD), housing and public works ministry, local government and rural development ministry, power division etc, said the official.
"For example, if we find an unusual delay between the date of tender floating and work order to the contractor in the PC-developed information form, we ask the project authority to show causes of the delay. For an unsatisfactory reply, we are not endorsing their revision or time- extension proposal," he said.
When asked about the reasons behind the delays of the projects, the PC official said, "In most of the cases we are noticing that land acquisition, tendering process, step-by-step approval from the development partners for procurements, and frequent project-director change are the major reasons behind the complexities."
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