The unilateral withdrawal of a relatively large amount of cofinancing by Danida (around 50% of the total amount allocated for the rural access component) after project approval considerably delayed implementation and created difficulties in meeting project objectives and targets. The cofinancing was unfortunately a condition of loan effectiveness. The project was declared effective in October 2002, after the cofinancing condition was declared void. The withdrawal of cofinancing coincided with United Nations Development Programme's (UNDP) suspension of all missions to the Chittagong hill tracts or CHT (2001- 2002) due to the kidnapping of Danida experts, and project activities could start only in early 2003.
Chittagong Hill Tracts Rural Development Project