Despite the promise of receiving $6.03 billion in loans and grants from four prominent development partners since March last year after the beginning of the Covid-19 outbreak, only $1.79 billion was disbursed, which was only 29.78% of the commitment.

Four partners – the World Bank, International Monetary Fund (IMF), the Asian Infrastructure Investment Bank (AIIB) and Asian Development Bank (ADB) – disbursed $1.75 billion as budget support since the pandemic began.

In June last year, the World Bank approved three loan proposals to lend $1,045 million to Bangladesh. Of these, $250 million in the form of budget support was disbursed that month. But the government has yet to sign loan agreements for two projects worth $795 million, which would help revive the economy from Covid-19 shocks by creating around 2.5 lakh jobs.

Several ministries and divisions of the government utilised aid worth $44.7 million, excluding the budget support. The disbursement of project support is only 1.05% of the total commitment of $4.28 billion by the four lenders.

Economic Relations Division (ERD) officials say the money pledged by various agencies for budget support is being disbursed quickly. But as extra time was spent on preparing project proposals, getting approvals of the Executive Committee of the National Economic Council (Ecnec), and conducting final negotiations with donor agencies, money promised by donors for project support remains stuck.

They also blamed the slow implementation of projects for the low disbursement of aid. They said the delay in implementation leads to time and cost overrun, which negatively impacts the balance of payments leading to increased borrowing from domestic sources.

Experts and economists said the government and the people of the country are facing a serious cash crunch due to Covid-19 to meet emergency medical costs, to create medical facilities for both Covid-19 and non-Covid-19 patients and maintain livelihoods.

They also said it was high time to utilise the foreign funds to save the lives of people and revive the economy.

According to ERD sources, the World Bank has so far approved approximately $2.82 billion in assistance for new projects, including $800 million directly in the health sector, since the pandemic began in March last year.

Of this, there have been loan agreements of $1.07 billion in six projects. Loan deals of $1.87 billion in six projects are still stuck due to various issues.

According to the World Bank's Dhaka office, the global lender announced disbursed $287.47 so far while $250 million as budget support and $37.47 million from $100 million of the emergency assistance for a health sector project.

The project was the first foreign aided project after the coronavirus outbreak had begun, and had provision to get a 20-bed isolation centre and a five-bed critical care unit in each district hospital. Moreover, there was a plan to set up a 50-bed isolation centre and a 10-bed intensive care unit at each of the 17 medical college hospitals.

Faster implementation of the project would reduce the current ICU crisis.

The World Bank committed further to lend another $500 million to buy vaccines under the same project. The disbursement of the amount is yet to start due to delay in signing agreement with the lender.

As a result, even though the government has started the vaccination drive, the money for the project is unspent.

Officials said there have been three project directors (PD) for the project since the beginning.

DR Azizur Rahman Siddique, current PD of the project told The Business Standard, three-four project officials had been deployed to look into corruption allegations, and that delayed the implementation.

He also said, progress of the project was stalled previously. Although some initiatives have been taken recently to accelerate progress, enquiry and audit of some government agencies and lenders are slowing down the project.

He also said, the nationally important project is staffed by only three or four people. Significant progress and disbursement of the amount is difficult with so few people, he added.

Another project with support of the ADB worth $100 million has been taken at same time, but it has achieved no progress.

The World Bank approved $500 million for the Bangladesh Economic Zones Authority's (Beza) Private Investment and Digital Entrepreneurship (PRIDE) project in June last year.

The project initiated to create about 1.5 lakh jobs is yet to come under effect as the loan agreement has not been signed following the approval of the Ecnec.

Paban Ahmed, executive Chairman of the Beza, refused to make any comment over the issue.

Another $295 million for the Bangladesh Computer Council's Enhancing Digital Government and Economy (EDGE) project is also facing the same situation.

The ADB has pledged $607.23 mill