The Food and Agriculture Organization of the United Nations (FAO) recently organized a training on “Financial and Economic Analysis (FEA) in Environment, Forestry and Climate Change (EFCC)” with a view to improving the Government capacity to formulate and appraise projects in environment, forestry and climate change. The training was held on 9-13 April 2017 at the Department of Development Studies (DDS), University of Dhaka.
Twenty (20) participants, including seven (7) women, from 13 different agencies attended the training, which was funded by the USAID, and organized by the project ‘Strengthening the Environment, Forestry and Climate Change Capacities of the Ministry of Environment and Forests and its Agencies’ (MoEF Support Project).
Professor Dr. Kamal Uddin, Treasurer, University of Dhaka graced the opening session as the chief guest, while the session was chaired by Dr. M. Abu. Eusuf, Professor and Chairman, DDS, University of Dhaka. Dr. Atiur Rahman, eminent economist and the former Governor of Bangladesh Bank (Central Bank of Bangladesh) and Dr. Matieu Henry, Chief Technical Advisor of the Bangladesh Forest Inventory Project (BFI), among others, also joined the opening session.
Referring to the changing geo-political perspective, the chief guest highlighted on the importance of choosing the best possible projects to help ensure the efficient use of scarce resources. He emphasized the importance of acquiring scientific analytical knowledge and skill in evaluating the attractiveness and feasibility of projects. Dr. Atiur appraised the knowledge sharing endeavor through the training programme, and pointed this would also help bridge the gap between professionals and the academics. From the project side, Mr. Md. Shaheduzzaman, Senior Project Advisor cum National Team Leader presented the outline of the course. Dr. Sepul Barua, Environmental Economist, MoEF Support Project and Dr. Henry Matieu, Chief Technical Advisor, NFI project also spoke in the session and focused on the importance of FEA in the way of making investment decision.
The five day training programme was a blend of theoretical and practical sessions with significant time allocated to practical exercises. Mid and senior level faculties of the DDS, acted as resource persons. Besides, renowned professors and professionals namely Dr. Atiur Rahman, former Governor, Bangladesh Bank, Dr Niaz Ahmed Khan, Professor and former Chairman, Department of Development Studies, University of Dhaka, Dr. A.K. Enamul Haque, Professor of Economics, East West University, Dhaka, Dr. Bazlul Huque Khandaker, Professor, Department of Economics, University of Dhaka, Dr. Sepul Barua, Environmental Specialist, MoEF support project delivered lectures addressing various critical issues in FEA.
The program included presentations, discussions, and practical applications of conceptual aspects of FEA, and their relevance and application in EFCC; technical concepts like discounting, Net Present Value (NPV), Internal Rate of Return (IRR), Weighted Average Cost of Capital (WACC), Benefit-Cost Ratio (BCR), shadow pricing, conversion factor, and cash flow analysis. Practical examples and cases were offered to clarify the distinction between financial and economic valuation (Professor Niaz Ahmed Khan), use financial and economic analysis to promote green growth strategies and initiatives (Dr. Atiur Rahman), apply cost-benefit analysis in reviewing land policy (Dr. Sepul Barua) and quantify the value of ecosystem services (Dr. Enamul Hoque). 
In the practical sessions, participants carried out spreadsheet-based exercises on FEA. For example, they analyzed the financial and economic returns of a 30-year tree plantation project under different scenarios. Groups presented their findings and discussed their learnings on the last day of the training programme.
In their evaluation, participants expressed that this training will be valuable in the preparation and appraisal of development project proposals (DPPs). One specific comment was “I was not thorough with DPP as there are some financial and economic terms and subjects that were not clear to me. But now, having this training, I am confident. My positive participation and contribution will help the organization in preparing new DPPs”.
Mr Istiaque Ahmad, Secretary-in-Charge, Ministry of Environment and Forests (MoEF), Mr Abdullah Al Mohsin Chowdhury, Additional Secretary (Development), Ministry of Environment and Forests and the National Project Director, Dr. Md. Akhtaruzzaman, Pro-Vice Chancellor, University of Dhaka officiated the closing. In this session, while speaking on behalf of the participants, Ms. Jahan Ara from the MoEF and Mr. Mokhtar Ahmed from Bangladesh Climate Change Trust (BCCT) applauded the design and mode of delivery of the training. They also expressed their profound gratification that the training capacitated them in making more informed and analytical investment decision in EFCC.