Why govt projects now struggle to get PDs

Government officials are increasingly unwilling to serve as project directors (PDs) as new policies involving local beneficiaries have led to heightened public scrutiny and questioning regarding the quality of construction materials used in development works.

Planning Adviser Wahiduddin Mahmud came up with the remarks while speaking as the chief guest at a seminar titled "Economic Stability and Challenges for the Next Government" organised by the Economic Reporters Forum in the capital today (28 January).

He noted that beneficiaries are now directly involved in monitoring development works and often question the quality of materials used in projects, including bricks and stone chips. 

"As a result, no official wants to become a PD," he said, adding that this has slowed the pace of government project execution.

Former planning secretary Mamun Al Rashid, when asked about the issue, told TBS that the post of project director remains attractive in terms of decision-making authority, financial and administrative power, and logistical support. 

"However, many officials are reluctant to assume such responsibilities due to the risks involved," he said.

Mamun explained that project implementation entails managing large sums of public funds under strict timelines and resource constraints. 

A major component of any development project is procurement of goods, services and works, which requires in-depth knowledge of public procurement rules and coordination with various committees formed under the Public Procurement Rules, he said.

"Procurement is the most vital and risky part of project implementation," the former planning secretary said, adding that officials often fear future allegations of corruption, which could result in dismissal or even imprisonment.

Economic challenges

At the seminar, Wahiduddin said that although the economy has begun to recover, significant structural challenges persist. He observed that during the previous administration, discipline in the financial sector had collapsed due to money laundering and mismanagement, leaving the banking sector in a fragile state.

The adviser said that corrective measures taken by the current government have brought relative stability. 

Imports of industrial raw materials have risen, export growth has been sustained, foreign exchange transactions are stable, and reserves are gradually increasing, he said, adding that GDP growth is expected to approach 5%, while the exchange rate remains steady.

GDP growth is expected to stay near 5%, and while reserves are used for debt repayment, the central bank is actively purchasing dollars to stabilise the situation, he said.

The adviser noted that inflation is declining "slowly" due to "price expectations" and a self-generating cycle. He suggested that the policy rate, currently at 10%, should be reviewed to protect small and medium enterprises (SMEs), as private sector credit growth has fallen to around 6%.

The adviser expressed grave concern over Bangladesh's tax-to-GDP ratio, which remains among the lowest in the developing world at 7% to 8%.

"Our entire revenue is consumed by operational expenses; education, health, and development are funded entirely by loans, which is unsustainable," he warned.

Regarding energy, he noted that no new gas fields have been discovered in 15 years. While wind power remains unfeasible for large-scale use, a new ordinance now allows the private sector to produce and sell solar power, despite initial objections from the Bangladesh Power Development Board.

Corruption

Wahiduddin said that during the current government's tenure, large-scale corruption has decreased. "However, other forms of corruption persist. There is 'case trading' (legal harassment for profit) and 'transfer trading.' For instance, it takes Tk8 lakh to secure a transfer at a college."

He added, "I told the intelligence agencies, but they could not root these out."

Drawing from his experience serving as the education adviser, Wahiduddin said that the education ministry receives hundreds of solicitations for favours. "Previously, work would be done for a fixed sum of money without the need to visit the ministry. Now, everyone says a 'new opportunity' has arisen, so they flock to the ministry in person."