Number of World Bank-funded problematic projects double in a year
The number of World Bank-funded problem projects has doubled in a year.
Some 10 projects, out of 18 under operation in the current fiscal year, are either risky or potentially risky, according to the World Bank. However, there were only six – two under risky category and four under potential risky category – projects in the last fiscal year.
"Five of its projects are risky and rest five are potential risky in the current fiscal year," the bank added.
The projects that cannot meet the objectives and suffer from very slow implementation are risky, according to World Bank that stated that those projects failing to meet three out of the 12 indicators of performance are termed potentially risky projects.
The World Bank has set 12 indicators including financial management, auditing, disbursement, procurement management, safeguard measures and quality of procurement to monitor the projects.
Emerging Towns – in Sunsari, Palpa, Kaski, Jhapa, Dhankuta and Baglung districts – Enhanced Vocational Education and Training Project, Community Action for Nutrition, Building Resilience to Climate Related Hazards and Bridges Improvement and Maintenance Programme are risky, it said, adding that Nepal Health Sector Programme 2, School Sector Reform Project, Kabeli, Irrigation and Water Resources Management Project and Road Sector Development Project are under potential risky projects.
"Emerging Towns and Bridges Improvement projects are not in a position to meet the objective while three other projects have been facing implementation slackness. Bridges Improvement project that was aimed at providing safe, reliable and cost-effective bridges on strategic road network has been suffering from procurement, governance, safeguard and disbursement-related problems.
Likewise, of the total resources – $1,328 – for the 18 projects, some 58 per cent belongs to the 10 risky and potentially risky projects, the multilateral development agency said, promising to bring the number of risky and potential risky projects to two each.
Portfolio – No of projects – Committed aid – Per cent of commitment
Problem projects – 5 – $586 million – 44 per cent
Potential problem projects – 5 – $189 million – 14 per cent
Projects-at-risk – 10 – $775 million – 58 per cent
Others – 8 – $553 million – 42 per cent
Total – 18 – $1,328 million – 100 per cent
Source: World Bank