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Govt set to downsize ADP by over 10 pc

The government is going to downsize the current Annual Development Programme (ADP) by over 10 percent for various reasons, including “political turmoil”, according to UNB.  The National Economic Council (NEC) is likely to approve a Tk 72,000 crore Revised Annual Development Programme (RADP) in its Tuesday’s meeting for the current fiscal year (2014-15) with a 10.35 percent cut from the original ADP outlay of Tk 80,314.52 crore.

 

The proposed RADP for the current fiscal year was approved at an extended meeting of the Planning Commission held on March 3 at the NEC with Planning Minister AHM Mustafa Kamal in the chair. “The ADP is always downsized for various reasons…this time political turmoil is partly responsible as it is hampering implementation,” said an official wishing anonymity.

 

As per the summary of the proposed RADP obtained by the UNB, the government’s contribution to the ADP is likely to be slashed by 10.48 percent to Tk 47,100 crore, while foreign assistance would be cut by 10.10 percent to Tk 24,900 crore. The proposed RADP of Tk 72,000 crore for the FY 15 is also Tk 12,000 crore higher than the revised ADP of Tk 60,000 in the last fiscal year.

 

The total number of projects in the RADP is also likely to rise to 1,197 projects from 1,187 in the original ADP. Out of the 1,197 projects, there will be 1,008 investment ones, 168 technical ones and 21 from Japan Debt Cancellation Fund (JDCF). The proposed RADP also includes 612 projects as new unapproved ones while some 360 projects without allocation subject to the availability of foreign assistance. Besides, the revised ADP kept some 280 probable projects to be completed in the current fiscal year.

 

Of the proposed revised allocation out of the 17 different sectors, the transport sector will get the highest 23.66 percent allocation with Tk 17,032.15 crore followed by education and religion sector with 12.03 percent allocation with Tk 8,662.99 crore, power sector with 11.55 percent allocation or Tk 8,318.17 crore, rural development and rural institution sector with 9.73 percent allocation or Tk 7005.05 crore.

 

Besides, the physical planning, water supply and housing sector is likely to receive 9.51 percent allocation or Tk 6,844.13 crore in the Revised ADP apart from health, nutrition, population and family welfare sector with 6.59 percent allocation or Tk 4,741.61 crore, science and ICT sector with 6.43 percent allocation or Tk 4,630.27 crore, agriculture sector with 5.83 percent allocation or Tk 4,197.71 crore while industries sector to receive 2.59 percent allocation or Tk 1,863.80 crore.

 

Apart from the sectoral allocation, there will be separate allocations of Tk 1,954.97 crore as development assistance. Meanwhile, the government also plans to include a total of 18 projects, including a number of road and transport projects in the revised ADP, to be implemented under Public Private Partnership (PPP) initiative.

 

The projects include construction of the Dhaka-Chittagong expressway, upgrading of Hatirjheel-Rampura-Amulia-Demra to four lane, construction of multi-modal hub terminal at Shahjalal International Airport, upgrading of Dhakaeastern bypass (Demra-Tongi) to four lane, construction of the Dhaka western bypass (Kodda-Baliarpur-Ruhitpur-Bourvita-Mukterpur) and the elevated expressway from Oxygen Mor to Hathazari in Chittagong. In the first seven months (July-January) of the ongoing fiscal year, around 32 percent of the ADP allocation was spent amounting to Tk 25,858 crore compared to 33 percent with Tk 21,857 crore in the same period of last fiscal year.

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