Govt inefficiency responsible for poor implementation of infra projects

Kathmandu, Oct. 31:

The Asian Development Bank (ADB) on Tuesday categorically said that the government’s inefficiency was the main reason behind the poor implementation of infrastructure projects in Nepal.

According to ADB’s Deputy Director General Diwesh Sharan, the performance of the projects funded by the multilateral development partners received glitches due to the frequent transfer of key project officials, delays in approval process of land acquisition and environmental clearances and weak implementation.

It is the government’s responsibility to appoint the project chief, acquire the land and award environmental clearance at the earliest and execute the project, he said.

Speaking at the 2017 Tripartite Portfolio Review Meeting held here, he termed the problems ‘systematic’ and said that those problems had been repeating time and again.

By the end of September this year, only 49 per cent of the targeted annual contract award of US$ 533 million and 52 per cent of the disbursement of $339 million have been achieved.

Currently, the ADB’s active portfolio in Nepal is $2.3 billion (about Rs. 240 billion), which cover 35 projects in the areas of urban development and water, transport, energy, reconstruction, education, agriculture and natural resources.

Projects equal to 56 per cent of the total portfolio have been contracted while 44 per cent remained uncommitted.

Disbursement is even poorer as only 34 per cent, or $806 million, has been paid.

The multilateral donor has been repeatedly suggesting the government deploy competent project directors.

Former ADB Country Director Kenichi Yokoyama last year had said that the dismal performance of the projects was due to incompetent project directors.

ADB Nepal Resident Mission’s Unit Head of Portfolio Management Sarosh Khan said that the quarterly targets of contract awarding and disbursement was only 50 per cent.

According to her, by the end of the third quarter of 2017, the Earthquake Emergency Assistance Project, Electricity Transmission Expansion and Supply Improvement Project and Kathmandu Valley Water Supply Improvement Project had achieved the contract target.

But, the Tanahun Hydropower and SASEC Power System Expansion Project couldn’t achieve the contract targets of $88 million and 50.7 million.

Disbursement of the budget was poor in terms of South Asia Tourism Infrastructure Development Project, Kathmandu Valley Wastewater Management Project, SASEC Power System Expansion Project and Earthquake Emergency Assistance Project.

Khan said that the delay in submission of design and bidding document for international apron at the Tribhuvan International Airport resulted in poor performance of the Air Transport Capacity Enhancement Project.

“Similarly, the progress at the Tanahun Hydropower Project was sluggish due to delay in procurement of the head works, updating generation license and concluding the Power Purchase Agreement (PPA) and completing supplementary Environmental Impact Assessment and forest clearance,” she said.

Sharan urged the government authorities to focus on collective efforts from the government and the ADB to achieve the annual target.

“Our project teams are working closely with the line ministries to ensure smooth implementation during and after completion of the transition process. We look forward to the success of these arrangements,” he said.