Draft policy opens project director posts to private sector experts, retired officials

The draft policy, however, allows some flexibility in qualification requirements for specialised projects.

The government has drafted a new policy that would allow experienced private sector professionals and retired public officials to be appointed as project directors (PD) for government development projects, in an effort to improve project implementation and strengthen project management.

The Draft Project Director Appointment Policy 2026, prepared by the Planning Division, also proposes giving priority to candidates with training and experience in project management.

It recommends appointing a separate project director for every project costing more than Tk50 crore and bars any individual from serving as PD for more than one such project at the same time.

The draft policy, however, allows some flexibility in qualification requirements for specialised projects. It also sets age limits, fixing the maximum age for applying for a project director post at 65 years, while applicants for deputy project director and assistant project director positions must be at least 25 years old.

The Planning Division has recently prepared the draft and circulated it among relevant ministries and divisions for comments before finalisation.

Salary linked to project size

The proposed policy links salaries and benefits to competitive market rates.

Project directors of projects costing less than Tk50 crore could receive up to Tk3 lakh a month, while those leading larger projects could earn up to Tk8 lakh. VAT and tax would be included in project costs.

The policy opens recruitment to qualified professionals from both the public and private sectors. Government officials with expertise in project management, financial management, auditing and procurement could apply on lien, while retired officials would also be eligible.

In this context, applying on lien means that a government employee can take up a temporary posting to a project while retaining the legal right to return to their original government position without losing their seniority or other service benefits.

Experienced private-sector professionals with relevant technical knowledge and practical experience could also apply.

Preference would be given to candidates trained in national and international procurement rules, procurement management and the electronic government procurement (e-GP) system.

Experience in environmental and climate issues, land acquisition laws and public financial management would also be considered, while previous experience as a PD, DPD or APD would carry additional weight.

Mamun Al Rashid, former planning division secretary, said, “If genuinely qualified, competent and honest people are appointed and allowed to work independently, it could produce positive results. Otherwise, the negative impact will be greater,” he said.

He also questioned the proposed salary structure, saying that there is no guarantee that offering high remuneration will ensure better performance.

“Past experience shows that some banks appointed managing directors on high salaries, yet major irregularities and corruption took place during their tenure. High salaries alone don’t guarantee competence or integrity.

“Instead, they may create opportunities for unsuitable people to enter the system. Ensuring transparency, accountability and rigorous scrutiny in the recruitment process is far more important than the salary structure,” he added.

Recruitment, performance evaluation

To improve transparency, the draft proposes a two-stage recruitment process involving shortlisting, document verification, interviews, scoring and background checks before appointments are approved by the relevant minister or state minister.

Project directors would be evaluated every six months, with contract extensions or termination based on performance.

Serving officials would remain subject to the Government Service Act 2018, while others would face action under the Penal Code and the Code of Criminal Procedure for contractual violations.

Accountability concerns

While acknowledging a shortage of skilled project directors, officials at the Physical Infrastructure Division, under the Planning Commission, have objected to appointing private-sector professionals and retired officials as PDs.

They argued that serving government officials operate within established administrative and accountability systems, while outsiders are not subject to the same level of direct administrative control.

The division is responsible for approving projects in sectors including roads, railways, waterways, local government and information and communication technology, where the shortage of capable project directors is particularly acute.

The officials, on condition of anonymity, also said project directors should continue to be appointed from the civil service through the Ministry of Public Administration to ensure effective coordination with ministries, departments and field administration.

They also questioned how contract-based project directors would be held accountable if they became involved in corruption or financial misconduct and later absconded or left the country.

They proposed stricter contractual provisions, allowing action under criminal law, the Anti-Corruption Commission Act and asset confiscation where corruption is proven.

Instead of introducing salaries of up to Tk800,000, it has recommended an additional responsibility allowance of 20% to 30% of a serving official’s basic salary, alongside performance-based incentives for project teams that complete projects on time, within budget and while maintaining quality standards.

The Physical Infrastructure Division also called for creating a strong pool of trained PDs.

Concerns over political influence

The Division has also objected to ministers having the final say on appointments, warning that the provision could expose the process to political pressure and lobbying.

It has recommended that appointments and removals be handled by independent expert and evaluation committees, while also proposing whistleblower protection and a clear exit policy for project directors facing unethical pressure.

Former Secretary Mamun said opening recruitment beyond the civil service could attract talented professionals but warned that some candidates might have limited procurement or administrative experience despite meeting formal qualifications.

“Our public administrative processes, financial management systems and accountability framework are highly complex. Following those rules properly could be difficult for many of them, and that is the main concern,” he said.

He warned that appointing individuals selected on the basis of personal preference or political considerations to lead projects worth hundreds or thousands of crores could result in serious irregularities, weaken neutrality in project management and make transparency in procurement and consultant selection more difficult.