ADP performance has fallen to 7-year low

The World Bank has threatened to halt funding for at least a half-dozen projects. It has also asked government agencies to finish the eight ongoing projects worth $3.02 billion in aid on time, as the development partner is unwilling to extend the project deadline.

A tripartite meeting was held between the World Bank’s Economic Relations Division (ERD) and the project directors involved to assess slow-moving projects in Bangladesh, as some of the Bank-funded schemes are performing poorly.

Among the projects are the $500 million-funded ‘Livestock and Dairy Development Project,’ the $700 million-funded ‘Primary Education Development Programme-IV,’ the $340 million-funded ‘Dhaka Sanitation Improvement Project,’ the $100.50 million-funded ‘Dhaka City Neighborhood Upgrading Project,’ the $425 million-funded ‘Operation for Supporting Rural Bridges project,’ the $356.70 million-funded ‘Bangladesh Investment.

Source for more details:

The Financial Express

The Annual Development Programme (ADP) may require more time and money to complete many projects which put an extra burden on the state finances.

The government announced a much larger ADP outlay of Tk 2.46 trillion in the FY23 budget, including Tk 1.54 trillion in local resources and Tk 930 billion in foreign money. But, after seven months the government is decreasing Tk 180 billion ADP allocation from the foreign funding sector due to the global economic crisis combined with local financial limits.

The ongoing economic crisis is not just hurting the private sector; it is also having a negative effect on the government’s development initiatives.ADP execution fell to a 12-year low of 23.53 percent from July to December.

Source for more details:

Daily Sun

Over the next four years, Bangladesh is expected to receive around $6 billion from development partners except the International Monetary Fund to meet its development funding needs, particularly to address the problems posed by climate change. A $9.1 billion financing gap was predicted by the IMF staff mission for the period. Even though the lender would contribute $4.7 billion, there would yet be a deficit. The staff mission learned that more international and bilateral lenders totaling $6 billion would be arriving soon.

According to the IMF staff assessment, the World Bank is anticipated to contribute $1.75 billion, the Asian Development Bank $2 billion, and additional development partners like the Asian Infrastructure Investment Bank and the Japan International Cooperation Agency $2.12 billion of the $6 billion.

To help Bangladesh strengthen its climate resilience, one of the program’s main goals, the IMF, WB, and ADB would work closely together. The first Asian nation to get funding from RSF is Bangladesh. $1.4 billion of the $4.7 billion the nation will get from the IMF comes from RSF.

Bangladesh has increased its reform efforts toward transparent market-based pricing of fossil fuels in order to significantly boost climate mitigation. The government will implement a national catastrophe risk finance strategy in fiscal 2024–2025 while including social assistance programs. This reform was decided upon after consultation with the WB. The government would update its PPP structure and policy by June 2025 to incorporate concerns associated with climate change and create useful guidance.

Source for more details:

The Daily Star