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Powerful new committee to vet all big projects
View(s):They must also first be approved by the National Planning Department (NPD) before going to the Cabinet while the Auditor General, too, will be looped in.
Under the new guidelines, even scope changes in ongoing projects–one of the most common reasons for cost overruns and delays–must be sanctioned by the new National Development Committee (NDC). All new project proposals and any new public-private partnerships requiring Government commitment in any form (within specified cost limits) are included.
The budget circular, signed by Acting Treasury Secretary A. K. Senevirante, states that the NDC will carry out a “holistic appraisal” of proposals to ensure the achievement of expected results and outcomes of projects through “prudent and productive streamlining of public expenditure”.
Under the new rules, this Committee will provide final recommendations to the Cabinet regarding project proposals and will meet once in two weeks. Earlier, the Cabinet relied on the decisions of Cabinet-Appointed Procurement Committees (CAPC) in relation to projects priced over Rs. 500mn, and over Rs. 1bn.
The circular is addressed to the Secretaries of Ministries, Chief Secretaries of Provincial Councils, Heads of Department, District Secretaries and Heads of State Corporations, Statutory Boards and Government-owned companies.
The NDC’s scope includes ensuring the consistency of projects and programmes with Government policies. They must be seen as viable and there must be alignment among sectors. It will also measure them against the Government’s development priorities and ensure “national interest and project benefits”.
The NDC will examine the impact of the projects and programmes on the national economy and people’s welfare and analyse the return on investment, the circular said. It is also expected to look at the suitability of the project location and implementation timeframe.
The NDC must measure the project or programme financing in terms of public debt against the country’s obligations. And it must submit its recommendations to the Cabinet through the Ministry that is floating the proposal.
Under the new procedure, all projects and programmes should be developed and first submitted to the NPD which then forwards the ones it selects to the NDC.
The NDC committee will give its recommendations to the line Ministry, copied to the President, the Secretary to Cabinet, the NPD, the Department of National Budget, other relevant Treasury Departments and the Auditor General. The NDC recommendation must be attached to the Cabinet memorandum when submitting the proposal to the Cabinet for approval.
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