Project on suppliers' credit rejected
A meeting to discuss projects under the suppliers' credit yesterday did not consider any of the project proposals submitted by three divisions of the planning commission for non-compliance with the guidelines of the Economic Relations Division (ERD).
Chaired by Planning Minister AK Khandker, the meeting also asked the concerned divisions not to receive any project from the ministries under suppliers' credit unless those are indispensable, said meeting sources.
All members and chiefs of divisions attended the meeting held at the NEC-1 conference room.
Meeting sources further said the three divisions of the planning commission -- physical infrastructure; industry and power; and agriculture, water resource and rural institution -- submitted 45 project proposals before the meeting for its consideration under the suppliers' credit.
Of them, 36 project proposals totaling Tk 47,930 crore were from the physical infrastructure, five projects amounting to Tk 61 crore from the industry and power and another four worth Tk 26 crore from the agriculture, water resource and rural institution.
Talking to reporters after the meeting, Khandker said there was no decision regarding the projects under the suppliers' credit in the day's meeting as the discussion on them was at the initial stage.
“We'll have to decide in principle whether to take suppliers' credit or not,” he added.
Replying to a query, Khandker said they are planning to revise the Annual Development Programme (ADP) in next January.
He said some projects might come soon under the Public Private Partnership (PPP) as there are some good responses.
On the ADP implementation progress in the first four months of the current fiscal that reached 14 percent, the Khandker said although the percentage is less than that of previous fiscal (2009-10), the expenditure was higher.
Meanwhile, general economics division (GED) Member Prof Shamsul Alam said suppliers' credit should be discouraged unless it becomes indispensable. “Such tied credits sometimes become too expensive.”