Cost of govt projects rises 42pc

The average cost of implementing government projects has gone up 42 percent in the last five years, with the tenure for implementation going up by three years on average.

The rate of implementation of projects under the Annual Development Programme in the period was 73 percent, according to the Implementation Monitoring and Evaluation Division (IMED) and the Finance Division.

The statistics came from a keynote paper presented at the inauguration of the “Strengthening public investment management system” project, at Bangabandhu International Conference Centre in the capital. The IMED and Japan International Cooperation Agency organised the event.

AHM Mustafa Kamal, planning minister, said it was true that the cost and tenure for implementing government projects have been on the rise, which is not desirable.

Good management, a selection of projects that can play an important role in the economy, and work in a self-motivated way are necessary, he said.

An eye should be kept out on getting quick returns on the investment made, Kamal said.

“How much employment the projects have been generating and how much the GDP is increasing also have to be considered.” Mikio Hataeda, Jica's chief representative in Bangladesh, said the government will have to pay attention to project implementation right now to make Bangladesh a middle income country by 2021.

There is no alternative to improving government investment management for this, Hataeda said.

Sayedul Haque, joint chief of the Planning Commission, and Toshiyasu Kato, team leader of the “strengthening public investment management system” project, presented a keynote paper at the programme.

The steps of formulation of the projects have to be expedited to achieve the project's overall goal, Haque said.