Higher pay for mega project directors planned to boost efficiency, implementation
Special financial incentives proposed for all project directors
To boost efficiency in the implementation of Annual Development Projects (ADP), the government is considering offering higher salaries and special incentives to project directors (PDs) of mega projects, bringing their pay closer to that of foreign-funded project directors.
The aim is to encourage qualified and honest officials to take up these demanding roles, which often involve additional responsibilities but few financial benefits.
At an inter-ministerial meeting at the Planning Commission in Dhaka today, chaired by Planning Adviser Wahiduddin Mahmud, officials reviewed the implementation progress of the ADP for FY25 and the current fiscal year, FY26. The commission proposed forming a pool of expert project directors, who would receive specialised training in planning, finance, and procurement to ensure that only qualified and skilled personnel are appointed.
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Special financial incentives – which could include higher salaries, performance bonuses, allowances, and deputation or retention benefits – were also proposed for all project directors.
Sharp fall in ADP implementation
The urgency stems from the sharp fall in Annual Development Programme (ADP) implementation. In FY25, the rate dropped to 67.85%, the lowest in over a decade. Musrat Meh Jabin, chief of the Programming Division of the Planning Commission reported that In the first two months of the current fiscal year (FY26), implementation stood at just 2.39%, slightly down from 2.57% in the same period last year .
Talking with reporters after the meeting, Wahiduddin Mahmud said, "Dedicated officials are often reluctant to accept PD posts because the workload is heavy but the financial benefits are not". He added that 'less scrupulous' officials sometimes step in, hoping for 'unethical gains'.
Some project contractors left the country following last year's government change. For these projects, directives were issued in the meeting to complete the reappointment process and resume implementation.
Accountability is crucial
However, experts said that ensuring accountability of officials is as important as boosting benefits. Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development (InM), said: "There is no guarantee that project directors [PDs] will not engage in corruption simply because they receive extra perks. Many times, corruption occurs even when such opportunities are present. Therefore, instead of just increasing benefits, it is essential to establish a strong system to prevent corruption."
"For successful project implementation, appointing a PD or skilled personnel alone is not enough. Transparency and accountability must be ensured throughout the entire system. Without these, corruption will continue regardless of whether officials are competent or not," he said.
Strengthening PD selection, project monitoring
Planning Commission officials said that proposals discussed at the meeting include: launching a certification course system on Planning Process, Public Financial Management, and Public Procurement Rules (PPR)-2008 for the Project Director (PD) pool; Introducing incentives and performance awards for project directors; Formulating clear policies for project director appointment and transfers.
Planning Adviser Wahiduddin Mahmud said officials with training and experience in finance and planning should be properly identified. Their educational qualifications and foreign training credentials should be verified to ensure that the Department of Public Administration does not assign the wrong people to the wrong positions.
He said that due to the absence of an economic cadre, general administrators are often appointed to specialised posts despite lacking training in economics or finance.
Citing an example, the adviser said that in the Health Ministry, doctors are sometimes appointed as project directors, even though they lack skills in financial management or administration. "This demonstrates a critical weakness in project director appointments," he said.
Delay in land acquisition eats up large part of budget
Wahiduddin said that a large portion of project budgets and timelines is wasted due to delays in land acquisition. While officials claim such processes take two months, in reality, they often drag on for 8 to 10 years, increasing costs and leaving project staff idle.
To address this, separate projects for land acquisition and utility relocation will be implemented first, followed by the main project. This approach is expected to reduce delays and cost overruns, he said.
The planning adviser said that past tender processes were flawed, with previously cancelled contractors often regaining work under different names. The current system makes market entry difficult for new and honest contractors.
He said that within the next couple of days, the interim government is expected to approve the PPR 2025. Once gazetted, tender processes will become more transparent and competitive, disqualifying unqualified contractors and providing opportunities for capable new businesses.
Planning officials said the meeting also proposed mandatory verification of land ownership certificates, land acquisition plans, no objection certificates (NOCs) for utility relocation, and environmental clearance attachments before project approval, in addition to separate projects for land acquisition and utility relocation.
In response to a question, Wahiduddin Mahmud said that for contractors who have not returned after the previous government's fall, fresh tenders have been directed to be called, ensuring that projects do not halt. He emphasised the need for ministries and divisions to remain proactive in this regard.
Poor monitoring
The planning adviser noted a lack of monitoring by secretaries and senior officials on project progress, which often leads to repeated revisions and extended timelines.
According to Planning Commission officials, the meeting proposed strengthening agency-level workforce capacity for preparing project proposals (DPPs). The meeting also recommended providing agencies with the necessary allocations for DPP preparation. From the start of a project's DPP preparation, it was proposed to appoint a focal person who would also serve as the project director.
Emphasis was placed on ensuring sufficiently skilled personnel or institutions for preparing high-quality feasibility studies (FS). It was also proposed that FS reports undergo mandatory peer review by independent experts before approval. According to officials, the FS should include separate sections for market surveys, demand forecasts, risk analysis, and assessment of environmental and social impacts.
Officials said the meeting also proposed giving special focus to development project monitoring. To this end, it was suggested to establish the Implementation Monitoring and Evaluation Division (IMED) offices at the division and district levels.
In addition, officials said that the meeting discussed project selection and approval based on sector-wise priority.
What experts say
Mustafa K Mujeri said, "Successful project implementation does not depend solely on appointing 'competent' personnel; rather, it is essential to establish a transparent and accountable standard to assess competence."
"What criteria will distinguish 'competent' from 'incompetent' individuals? Without clear and transparent standards, corrupt people could pose as competent, exploiting the system and enabling further corruption," he said.
It is crucial to establish a strong system to combat corruption. Transparency and accountability must be ensured throughout the entire system. Otherwise, corruption will continue regardless of whether individuals are competent or not, Mujeri said.
Iftekharuzzaman, executive director of Transparency International Bangladesh, raised similar concerns, saying, "Corrupt officials' gains cannot be offset by higher salaries or incentives. Those habituated to corruption use the project director role for personal advantage, pocketing far more through collusion and other corrupt practices."
He added, "Who will determine whether an official is competent and free from corruption? The very process of making such decisions can provide opportunities for corruption."
"If the government wants to encourage good work, it should not do so through incentives. Rewards should be given after the work is completed. Recognising an officer who performs honestly and efficiently at the end of a project will be meaningful. Broadly offering higher pay with the hope of reducing corruption is illogical and ineffective," said Iftekharuzzaman.
Md Mamun-Al-Rashid, former planning secretary, said that proposals to give project directors financial benefits or incentives are unreasonable. "Special incentives are already given to customs and tax officials to reduce corruption, but they have not been effective. Corruption in revenue collection has not decreased," he added.
