ISLAMABAD: The Asian Development Bank (ADB) has decided to stop or abandon problematic projects and divert up to $1.5 billion from these sources to launching rehabilitation projects in flood-affected areas.
The Manila-based donor agency informed government officials of its decision here on Monday. According to sources, the bank has handed over a list of around 30 projects to the government, which are either slow-moving or problematic and could be shelved for a better cause.
“The government will review the list and convey its decision to the ADB in a couple of days,” said an official of the Economic Affairs Division (EAD).
According to initial estimates, the worst floods have damaged one-fifth of irrigation infrastructure besides livestock and crops. One thousand bridges and roads spread over thousands of kilometres and worth Rs10 billion have been either damaged or washed away.
About two weeks ago, the ADB announced that it will give a loan of $2 billion to Pakistan for the reconstruction of damaged infrastructure. Its director general, Juan Miranda, during a recent visit declared that in case of need the pledges could be enhanced.
Besides, the World Bank has offered $1 billion by channeling money from existing projects.
The ADB and World Bank are jointly carrying out Damage Need Assessment, a comprehensive survey to assess actual losses to the infrastructure and economy.
The ADB has outlined three ways to bring $1.5 billion out of the existing lending portfolio. There are 10 to 12 projects which are marked slow-moving and work on these could be halted. In response, the EAD has asked executing agencies to work out the needs for the current month and after that the funding may be stopped. However, this may result in escalation of the cost of projects.
Less-than-required progress is a chronic problem in implementing development schemes. Other than financial constraints, the lukewarm attitude and red tape are the major reasons behind the slow pace of work. This has resulted in over Rs3.8 trillion throw forward, the backlog of development schemes.
Sources said the ADB has also presented a list of around 15 projects which could be shelved and assured the government that the money from these will be available for speedy procurement of goods for flood relief.
The ADB has also promised to relax its procurement rules in order to accelerate the execution of projects. The director general of the bank assured the government that it may prefer local bidding instead of international tendering to avoid time lapse.
The ADB has also proposed transfer of funds from the accounts of those projects that have been completed but unutilised money remains. The savings were achieved due to exchange rate fluctuations.
Published in The Express Tribune, September 7th, 2010.
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