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Sunday, March 12, 2006

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HEADLINE
 
ADP for next fiscal
Project implementation, PRS compatibility to get priority
AZM Anas
3/12/2006
 

          The government is going to give "a newfangled shape" to the next fiscal's annual development programme (ADP), with implementation of projects getting the highest priority.
The ADP for the fiscal 2006-07 is expected to see a deep cut in the number of projects, while laying emphasis on the implementation of projects, regardless of their financing mode.
"A newfangled structure is in the offing. We'll no longer include a large number of projects in the next ADP," a Planning Commission official said.
"Instead, the priority will be given on the implementation of projects-both local and foreign-funded ones. Besides, the projects will be taken on the basis of priority," the official added.
The forthcoming ADP is also set to follow the Poverty Reduction Strategy (PRS) as "a Biblical direction".
"All ADP projects must be linked to poverty in one way or the other. Otherwise, the Planning Commission may not apprive those," a PC official told the FE.
The PRS has been crafted focussing on eight areas, including nutrition, education, rural development and monitoring.
But scepticism runs high whether the ministries and other government agencies are in a position to make their respective ADP projects compatible with the PRS.
Even PC officials have acknowledged the fact.
It will require different expertise and knowledge on how to design the projects in line with the PRS, as it is a new exercise.
The PRS, an anti-poverty roadmap, has been crafted with a view to halving the country's poverty incidence by 2015 as enshrined in the Millennium Development Goals (MDGs).
The absence of any proven mechanism for the purpose may make it difficult for the ministries and public agencies concerned to develop such projects.
Similarly, the next ADP will be formulated in the light of Triennial Investment Plan (TIP), which has already been approved by the Commission.
The PC is likely to issue a circular on the new regulations for the ADP within a few days, one PC official said.
The draft circular says the PC would not approve any project that does not match the government's goal on poverty reduction.
The circular will also help delist the projects in a certain area where similar type of projects exists or is being implemented by donors.
The government may consider international economic situation and the post-MFA (Multi-fibre Arrangement) reality while framing this year's ADP.
"From now on, the selection of projects will be made striking a balance between regions and priorities," another PC official said while outlining other key traits of the next year's ADP.
The projects of education, agriculture, power generation, irrigation, labour, employment, rural development, nutrition, women and children affairs, physical infrastructure, and youth development are likely to be given priority, the official added.
But sources concerned hinted that the size of this year's ADP would be much higher than that of its previous one, keeping the next general election in mind.
Many fear political considerations may outshine the goal of economic reality as the history of ADP formulations suggests, thus making a realistic ADP "mere rhetoric".
The size of the current fiscal's ADP is Tk 225 billion.

 

 
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