WB is right to flag up project delays in Bangladesh
We understand where the World Bank's concern about project delays in Bangladesh comes from. The fact that between 2016 and 2021 the average project implementation period in the country has been more than seven years does present a risk to the viability of projects. In the World Bank Group's Country Partnership Framework for FY2022-23 to FY2026-27, it said that Bangladesh government's internal processes for project preparation and approval are "very complex and slow". Furthermore, "incipient institutional arrangements, limited financial allocation for project readiness and implementation by the government, low execution for funds that are allocated and misalignment of policies and regulations" also work as impediments.
Between FY2015-16 and FY2020-21, a total of 266 projects were implemented with WB financing. On average, it took more than two years to get a project approved by the government. Project preparation in close collaboration among WB teams, relevant ministries and implementing agencies averages about one year, but a delay of another year or more is expected because of the complicated process of government internal consultations, clearances and so on. It is only after ECNEC approval that financing agreements can be signed, paving the way for the disbursement of project proceeds to finance activities.
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The key player in this process is the Planning Commission, which oversees public investments, appraises all investment projects, and convenes Project Evaluation Committee (PEC) meetings. Hence, the WB has called for establishing timelines for PEC clearance to make its decision-making process more efficient. In addition, the global lender also called for better communication between the PEC and the ministries involved in a project. One positive aspect, however, is that the WB believes that the 2016-17 Country Partnership Framework was overall successful. For example, the share of projects with excessive cost overruns has decreased substantially from FY2018-19, and remained below 10. That shows the issue with project implementation delays and cost overruns is indeed solvable.
There are a number of systemic and policy-related issues that are slowing down project implementation in Bangladesh, which we have frequently highlighted in the past. Most of these can be sorted if there is political will. Aside from internal bureaucratic issues, there are other factors and players involved. Hence the WB, we hope, will also provide the government all necessary support to ensure that projects funded by it move quicker so as to maximise their benefits.
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