Implementing public interest projects

Like in any other developing country, all public interest projects in Bangladesh are supposed to be well thought out with their ultimate impacts reviewed. However, courtesy of the media, even the state investigation agencies, we mostly don't get to hear good things about projects being well-researched, the ultimate impact on the target market or group well-thought out, finance being well-managed or done with sincerity of purpose. 

Most project plans are haphazardly initiated, project directors are not experienced and there is an absence of proper financial modelling leading to cost escalation. Effective project planning in public interest projects can play an important role to overcome these issues. An effective project plan not only boosts project performance but also ensures the efficient utilisation of the resources to save costs.

Project cost management plays a very important role in managing and controlling the flow of cost. Proper management can decrease expenses, improve operational efficiency, and ensure procurement effectiveness

It's a common belief that we have an execution problem when it comes to projects. Very few public interest projects finish on time, and fewer still without their costs escalating to a significant level. This is perhaps the biggest hazard to tax-paying citizens who want to get their money's worth from the large pool of projects launched around the year. Project cost overruns are one of the common elements behind the failure of every four out of five projects. So, project cost management plays a very important role in managing and controlling the flow of cost for various resources in different tasks of the project. Proper project cost management can decrease expenses, improve operational efficiency, and ensure procurement effectiveness.

The lack of good governance in project implementation is undermining the efficiency of public infrastructure projects despite the huge money from the exchequer or development partners being invested. In order to ensure return on investment and the right levels of structure & accountability, effective project governance must be ensured. More importantly, project governance enables quicker data-backed decision-making through data and enables effective monitoring.

Projects are often undertaken without any feasibility study, which is a fundamental requirement, thus necessitating a series of revisions at frequent intervals. This is, unfortunately, the story of many other projects as well, and it's surprising that those at the planning ministry still give clearance to those. The absence of a feasibility study is just as bad as the presence of a weak feasibility study, both of which are common. It's the first and perhaps most recurring factor in poorly planned undertakings. So, conducting a feasibility study before undertaking any big-ticket public interest project not only provides valuable information for a "go/no go" decision, but also identifies reasons why the project should not proceed and innovative solutions that would make the project feasible.

Other problems identified in the public interest projects include coordination failure, delays in land acquisition, frequent changes of project directors and unqualified project directors, etc. Ad-hoc decisions or mismanagement is the running theme behind all such obstacles. Delays can also trigger a chain of costly disruptions. In most cases, the failure of a project is mainly related to the influence of planners, contractors and owners on project performance. Effects of delays are costly to all parties concerned and very often it will result in disagreements, cost overruns and project infeasibility.

We have noticed such disruptions, delays or regular excess payment claimed by the contractors while implementing the Dhaka-Chittagong four lane road, Dhaka-Sylhet highway, Dhaka-Mymensingh double lanes, VAT online project at NBR, digitalisation project at ACC or even the much talked about Padma Bridge project. There are plenty of other projects with important ministries carrying the proof of a similar saga.

One can easily ask- is there no institutional mechanism to check such systemic problems and disappointments?

Everyone wants the government to establish accountability to ensure that all its projects are planned and executed properly. Ill-conceived projects not just push us to bleed financially, but also potentially deprive us of their desired benefits. This has been going on for so long, and it is the common people who have or had to pay for it.

The government must ensure there is a minimum threshold, both of experience and qualification, for project directors before anyone is appointed. It should be clear "where the buck stops" as someone must be held responsible for cost overruns and delays. Project costs should be clearly committed to with an inflation component built in and agreement from all parties on a particular set of allowances for inclement circumstances which are out of control. There should be a report format, akin to the customer acquisition form at banks, where the details of a feasibility study are provided and this must be submitted to the ministry concerned, with the firm/people who carried out the study responsible for any negligence or failure they may reasonably be expected to predict. The projects' feasibility also depends on all these moving parts working in sync with each other and so the project viability must be assessed with these concepts in mind. The project director must be the sole authority on the project once work commences and any replacement of the project director must be transparent and any failures on the part of the project director publicly acknowledged. Many years ago, the government was thinking of a "project management cadre" under Bangladesh Civil Service also.

Project conception or planning, commercial, financial, or even social and environmental due diligence, financial model, implementation monitoring, procurement, compensation to affected parties and payback as per the plan - all require competency in the respective agency and precision to implement. All this requires congenial policy regime and accountability driven from the top.

The author is an economic analyst. Views expressed here are personal.