Tk 53 crore spent to distribute Tk 8 crore in grants

A development project has been proposed by the Department of Social Services to help 300 vulnerable people who have lost their homes due to climate change become financially self-reliant, while also improving the livelihoods of 1,500 people. Under the project, around Tk 8 crore will be distributed as grants. However, more than Tk 53 crore has been spent for consultancy and administrative expenses related to distributing those grants.

The information was published in a report by the Daily Kalbela on Sunday (July 5).

According to the report, the proposed project, titled "Strengthening Urban Integration Capacity of Internally Displaced Persons and Supporting Host Communities (INTEGRATE)," has an estimated total cost of Tk 61.29 crore. The project will be financed by the German development agency GIZ and implemented over a period of one year and nine months. A meeting of the Planning Commission's Project Evaluation Committee (PEC) is scheduled to review the proposal today.

The project's primary objective is to economically rehabilitate people displaced by climate change in districts including Khulna, Satkhira, Rajshahi, and Sirajganj. Although the total project budget stands at Tk 61.29 crore, indirect expenses vastly exceed the amount allocated to the intended beneficiaries. Of the total budget, only Tk 8.10 crore—just 13.23 percent—will go directly to disadvantaged people. The remaining Tk 53.18 crore will be spent on management costs, office rent, consultancy fees, and other administrative expenditures associated with distributing the grants.

The report, citing project documents, states that the project aims to create small business opportunities for 270 women and 30 persons with disabilities across three districts. To provide "consultancy" for distributing these grants, the project proposes hiring 473 local and foreign consultants at a cost of Tk 29.62 crore.

In addition, Tk 3.51 crore has been allocated for overseas travel and training for project officials, while Tk 1.28 crore has been earmarked for domestic travel. Project management charges amount to Tk 10.08 crore, and office rent has been budgeted at Tk 3.19 crore. The proposal also includes what are described as inflated costs for IT and telecommunications equipment. The remaining funds are allocated for training workshops, administrative and utility expenses, office equipment, transportation and fuel, and various other services and supplies.

According to sources familiar with the project, the proposal does not clearly explain how internally displaced people and persons with disabilities will be selected as beneficiaries. Concerns have also been raised that the procurement plan does not adequately comply with the provisions of the Public Procurement Act (PPA) 2006 and the Public Procurement Rules (PPR) 2008. Questions have also emerged regarding the feasibility of implementation, as a significant portion of the project's proposed implementation period has already elapsed.

A Planning Commission official said that the Commission has already reviewed the unusually high consultancy and administrative expenses and instructed the relevant authorities to reduce the excessive allocations.

Analysts argue that if the overwhelming majority of the budget is spent on consultants and bureaucratic overheads, the project will do little to improve the lives of the marginalized people it is intended to serve.

Responding to the criticism, Md. Sajjadul Islam, Director of the Planning and Development Wing of the Department of Social Services, said, "The project's primary agreement was signed through the Economic Relations Division (ERD). It is essentially a technical assistance project, and its design had to follow the donor agency's preferences and conditions."

He added that implementing agencies often have little flexibility to deviate from the conditions imposed by donor organizations when distributing grants. According to him, the Department of Social Services did not prepare the project proposal itself; rather, it was drafted by the donor agency, GIZ, and later submitted to the department.