There were delays in procurement phase of projects: Ministry of Finance

The Ministry of Finance has shared the findings of the World Bank-funded project portfolio review.

The 2022 portfolio review was conducted based on consultations and research with the Ministry of Finance and the World Bank. This review was conducted to identify the progress and challenges faced by the World Bank's loan and grant projects.

Currently, 10 projects are underway with World Bank assistance. These include waste management, renewable energy projects, human resource development, sustainable fisheries, social insurance provision, infrastructure development and disaster resilience, digital development and health strengthening projects.

The review mainly focuses on delays in the procurement process and problems caused by the difficulty in recruiting sufficient technical staff to implement the project. The Ministry of Finance has prepared a document on measures to strengthen project implementation and shared it with the World Bank. The document will also be shared with project managers in the coming days.

This paper addresses the current "principal agent" and "information asymmetry" problems and describes the solution. It also emphasized the advantages of carrying out or “institutionalizing” projects by using the human resources of the relevant agency rather than having “project management units” for specific project management in the future. Among them, experience and knowledge are retained there for a long time and productivity increases.

In addition, the Ministry of Finance will assess the performance of the directors in charge of the project along with the project.

The "disbursement" or progress of the project in 2022 has increased compared to previous years. Two projects have been successfully completed during the year.

The Finance Minister has asked the government to focus on big projects that will boost the economy instead of implementing small projects.