Unending debate about ADP implementation

Delays in implementation

Post-mortems in terms of implementation difficulties encountered and project impact assessment studies are done by the Implementation, Monitoring and Evaluation Division (IMED) of the Ministry of Planning.

Tap here to add The Daily Star as a trusted source

Every year in the annual meeting of the National Economic Council (NEC), IMED brings the problems associated with project implementation across the sectors. The problems include delays in (1) land acquisition, (2) procurement, (3) project processing and approval, and (4) fund release/inadequate fund provision.

Other factors include (a) lack of full-time project director, appointment of project personnel and their frequent transfer, (b) inadequate delegated financial authority for project implementation, (c) conditionalities imposed by the development partners, and (d) inadequate monitoring and evaluation.

The above factors are identified by IMED and reported to NEC every year with recommendations to overcome the problems. The recommendations are generally accepted by NEC and appropriate instructions communicated to the ministries for necessary action. Even then the problems persist and are repeatedly reflected every year in the annual reports of NEC.

It is necessary to point out some operational issues that impede efficient project management and execution. Specific issues relate but not necessarily limited to the following:

* Delays associated with claiming and reimbursement of reimbursable project aid (RPA);

* Length of time taken in processing and approval of subsidiary loan agreement (SLA) for projects having a credit component; and

* Inadequate pro-active role in making speedy decisions for removal of bottlenecks in project implementation process.

Land acquisition

Although Land Acquisition Act has been amended and a decentralised mechanism for decision making in land acquisition exists, the problems of delay in acquisition remain. Part of the delay can be overcome if adequate attention is given by the acquiring authorities. However, when litigation is involved challenging the acquisition, delay is unavoidable.

Procurement

For procurement, again the delay occurs due to long procedures from long-listing to short-listing, from short-listing to bidding, evaluation and award for contract. For local bidding minimum of 30 days notice is required. For international bidding the time to be allowed is 45 days. Apart from procedures which have to be transparent, delays also occur due to lack of knowledge of procedures. This can be overcome by appropriate training and creation of an environment that conduces to speedy decisions. Delays also occur due to unfounded allegations in procurement cases which need to be attended to.

To make things worse, it is learnt that the Cabinet committee on government purchase has recently issued a directive that requires prior approval of the aforesaid committee in case a consultant already selected needs to be replaced. Many view this highly centralized approach as adding to the list of existing roadblocks that will further extend the dilatory process of project implementation. In case of aided projects, the guidelines of the aid-giving agencies require that their approval is mandatory in such cases. What we have then is the fact that the project implementing authority in this case has to knock at two doors. One of the aid-giving agencies and the other of the Cabinet committee. According to government decision and delegated authority for project procurement approval, depending on the value of the contract, apart from Cabinet committee, the minister-in-charge and the implementing entity can approve procurement of goods and services. Under the recent directive of the Cabinet committee, all cases of replacement of consultants will have to move upwards to get the final approval.

Project processing and fund release

Project processing and approval delays arise out of procedural complexities and sometimes inadequate attention to proper paper work required for the purpose. The delays in fund release is not an important factor as first three installments can be released provided the papers are presented properly for which adequate attention is to be given to improve the skill of relevant officials in doing the paper work. For the fourth installment, complete expenditure statement is needed for the MOF to authorize release. Here also timely and proper statement of expenditure and its submission can cut short delays.

It is also relevant in this context to point out that 'yearend outburst' of activities are caused by the requirement of the Accountant General (AG) office to submit the claims for expenditure within a definite time-frame. This timeframe for the last quarter of the financial year is June 12. Necessary papers, supporting vouchers are to be submitted in order to be eligible for payment of the claim made.

Recruitment and deployment

Proper and timely deployment of project personnel and keeping them in their positions is a necessary condition for effective implementation. Here also procedural delays occur involving advertisement, interview and selection. In aided projects, the appointment of project directors need to be vetted by the aid-giving agency and sometimes delays occurred. Frequent transfer and subsequent filing up of positions also lead to weaknesses in project management. Frequent transfer needs to be avoided which can easily be done if due attention is paid. Many of the above delays can be avoided if monitoring and evaluation is done by the Ministry and if the Head of the agency keeps an eye on the delays which can be avoided.

RPA

Delays relating to reimbursement claims in aided projects can be overcome if such claims are based on prescribed paper work required for the purpose. This can be achieved by appropriate training of relevant personnel. Sometimes the delays also occur on the part of authorities responsible for reimbursement over which the project management has little control. Finally, a more proactive role on the part of the development partners remains a necessary condition for avoiding delays in project implementation.

It should be distinctly understood that the list of constraints and weaknesses described above are common to all sectors and more or less present a global view. Some sectors such as those relating to civil works and infrastructure do not have the whole year to complete the allotted work. These sectors are handicapped by the element of seasonality in that they have to do such work between November through April or roughly the dry season.

The rate of overall utilisation

The rates of utilisation of ADP from 1996-97 to 2002-2003 maintained by IMED indicate that these have varied between 94 percent in 1996-97 and 1999-2000 to 88 in 2001-2002 and 90 in 2002-2003. Upto March 2004, the rate is 48 percent, which IMED expects to reach at least 90 percent. If these estimates are correct, an average of about 91 percent should not raise a tempest over a tea cup. On the other hand, these estimates could be much lower if ADPs were not slashed every year. There is a need for a more professional approach to draw conclusions in this regard.

AMM Shawkat Ali, PhD, is a former Secretary, Ministry of Agriculture.