Economic Relations Division (ERD) formulated “Fund Allocation and Management policy for Project Preparation and Readiness” on 6 March 2017 to provide financial support for feasibility study and land acquisition at the project preparation stage of various Ministries/Divisions of the Government of Bangladesh. Despite such efforts, ERD did not get any response from relevant Ministries/Divisions to implement the policy. The paper critically examines the causes behind the implementation failure of the policy. The study found that officials of the project implementing Ministries/Divisions were not well informed about the policy in particular. Moreover, the Ministries/Divisions, which have several initial roles to play in order to bring implementation process on board, have hardly done anything to prove that the existing bureaucratic set up is reluctant to take proactive initiatives to implement new policies unless they are somehow forced by the external environment. Besides, there exists a similar kind of fund, allocated in favour of the Programming Divisions of the Ministry of Planning, which allow the project implementing Ministries/Divisions to get financial allocation for a feasibility study at the project preparation stage. This similar kind of fund may decrease the importance of the ERD formulated fund for project readiness. Similarly, absence of allocation in the right place is also one of the root causes for implementation failure. Considering the findings, among others, recommendations include holding of workshops for further dissemination of the policy documents and the scope and responsibilities of each Ministry/Division.
Keywords: Policy implementation, implementation failure, project preparation, project readiness