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Aid Governance and Implementation of Development Programs Bangladesh Development Forum 10 May 2004,

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Title: Aid Governance and Implementation of Development Programs Bangladesh Development Forum 10 May 2004,


1
Aid Governance and Implementation of Development
ProgramsBangladesh Development Forum10 May
2004, DhakaM. Fazlur RahmanSecretary,
Planning Division Member (SEI Programming),
Planning Commission
2
We recall with appreciation the long history of
our Development Partners support and cooperation
in our development programs.Through our
concerted efforts, today we are in a position to
jointly share the glory of significant
breakthrough in the socio-economic development of
Bangladesh. This is manifested by remarkable
increase in food production, per capita income,
life expectancy, adult literacy, primary school
enrolment including gender equity, women
empowerment through education, employment and
other measures. Similarly we have achieved
impressive decline in poverty, population growth
rate, infant and maternal mortality and the like.
3
Outline of the Presentation
  • Project Documentation (PCP, PP) and Approval
    procedure (harmonization with DPs)
  • Project implementation (new procurement rules and
    procedure)
  • Adaptation of SWAp
  • Sustainability of the Project Benefit
  • M E of Outcomes of Projects
  • Financial Information Management (audit,
    financial reporting)
  • Sector Budget Support and Overall Budget Support
  • Follow-up on GOB-DP Working Groups

4
Project Documentation Approval Procedure
  • Issues
  • Complicated documentation and format two
    documents for investment project (PCP, PP)
  • Time consuming and complex approval and revision
    procedure
  • Lack of harmonization with DP format
  • Inappropriate and incomplete information
  • Insufficient involvement from agency and field
    levels

5
  • Initiatives undertaken and Progress
  • Simplifying documentation (content) A single
    document called Development Project Proforma
    (DPP) will be used for investment project
    instead of existing PCP and PP.
  • The draft DPP has already been developed to
    adjust the changing context, focus and priority.
  • DPP has 2 chapters (presently 8)
  • DPP requires information on 30 items (pr5esently
    67)
  • DPP contains 4 tables and 3 annexure (presently
    9 and 7 respectively)

6
  • Simplifying approval and revision procedure The
    draft of the new approval and revision procedure
    has been developed. Main features are as follows-
  • Project costing up to Tk 200 million will be
    approved by the Minister for Finance and Planning
    as against TK 100 million at present. ECNEC will
    consider the projects which cost more than Tk 200
    million.
  • Approved DPP will not require approval of DPEC at
    line ministry level.
  • Concerned Minister will approve the revised
    project if the cost exceeds up to 15 of original
    cost. Minister for Planning will approve if such
    increase is up to 20. If the increase is more
    than 20, it will require the approval of ECNEC.

7
  • Concerned Minister will approve the TAPP which
    costs up to Tk 50 million as against the present
    limit of TK 10 million. TAPP beyond Tk 50 million
    will be approved by Minister for Planning.
  • No TAPP will be required for TA project for
    which implementation period is less than one
    year.
  • Sharing the streamlining exercise for
    harmonization with DP A GOB-DP Joint Working
    Group has been constituted with Planning
    Secretary as the Chair.
  • The Group is now working to finalize a harmonized
    document of which elements (such as different
    impact assessment etc) will also be useful to DPs
    (for appraisal and analysis).
  • The Group is expected to complete their tasks by
    this month.

8
  • Developing Capacity After finalization of the
    new format and procedure, GOB will develop a
    guideline for operationalizing the procedure.
  • A massive training program will be undertaken
    (for around 5000 officials from Planning
    Commission, line ministries, executing agencies
    including autonomous bodies and local
    governments) to be completed within two years.
    NGOs will have the opportunity to take this
    training.
  • We will require support from our DPs in this
    regard.
  • Expected Results from simplifying initiatives
  • Increase efficiency and flexibility, reduce
    transaction cost, improve appraisal and decision
    making.

9
Project implementation
  • Key Performance Issues
  • Procurement
  • GOB Rules Fragmented, Complicated
  • Centralized authority of decision making
  • DPs Rules, capacity and authority of local
    office vary
  • Project management capacity
  • Fund disbursement
  • GOB planning for matching fund disbursement in
    many cases causes delay in implementation
  • At times, DPs also require unusual time to
    disburse their fund after signing of agreement
  • Recruitment and retention of staff

10
Initiatives undertaken Procurement
  • Institutional Reforms for Procurement Capacity
    Development Central Procurement Technical Unit
    (CPTU) has been established in the revenue setup
    of IMED. CPTU is responsible for carrying out
    procurement reform and providing technical and
    professional assistance and training on public
    procurement issues.
  • Regulations The Public Procurement Regulations
    2003 have been formulated and made effective from
    October 2003.
  • Procedure The Procedures for implementation of
    the Public Procurement Regulations 2003 have been
    issued in March 2004.

11
  • The following activities are at the final stage
    of approval and will be available by May 2004
  • Standard bidding Document
  • Delegation of Financial Powers for approval of
    procurement contract
  • Procurement Processing and Approval Procedure
  • Procurement Management Capacity Development
    Around 20 trainers have been trained through
    in-country and overseas trainings (TOTs). They
    have, in collaboration with international
    specialists, trained over 200 officers from 70
    organizations.
  • Enactment of Procurement Law The preparation of
    the Draft Law is in progress and expected to be
    finalized by July 2004.

12
Recruitment Retention of Project Staff
  • Selection of PD upfront and his involvement in
    the planning process.
  • Application of desired job responsibilities for
    optimizing benefits from the consultants.
  • Simplification and expedited selection procedures
    for consultants (under new procurement
    guidelines).
  • Transfer Principle generally not to be
    transferred before 3 years.
  • Full Time PD for projects which cost more than
    100 million.

13
Project Management Capacity
  • Around 650 officers have received training on
    Project Management under SPPP of IMED. In
    addition, 18 officers have attended TOT on the
    same subject.
  • A study has been undertaken to identify causes of
    delays in the implementation of projects and to
    recommend measures to overcome the constraints
    under SPP Project. This report will be available
    in June 2004.
  • Expected results from initiatives to improve
    Project Implementation position
  • Will ensure transparency, reduce corruption and
    improve efficiency

14
Adaptation of SWAp
  • The GOB acknowledges the advantages of SWAp in
  • Increasing sector performance focusing the poor
  • Coordination of funding
  • It requires less time in preparation process
    (instead of a number of different disjointed
    projects)
  • Less management cost
  • GOB continues its commitment to promoting SWAp
    (HNPSP and PEDP-II).
  • Planning Commission took prompt measures to
    accelerate process for ECNEC decisions on PIP of
    HNPSP (35 days for final approval by ECNEC ) and
    Contingency Plan (14 days after submission to
    Planning Commission).

15
Sustainability of the Project Benefits
  • Issues
  • To achieve intended benefits, proper Operation
    and Maintenance (OM) of the facilities
    constructed under any project is required
  • Ad-hoc nature of planning impedes project
    facilities to render intended benefits
  • Initiatives
  • GOB has decided to increase the budget on
    Maintenance (e.g. from Tk 3170 million in
    2002-03 to Tk 5200 million in 2003-04 for RHD and
    Tk 1650 million in Tk 2002-03 to Tk 2000 million
    in 2003-04 for LGED)
  • Instead of disjointed projects, GOB will explore
    developing Master Plan/Project under which
    different DPs will participate for different
    components to deliver intended benefits.

16
Monitoring Evaluation of Projects
  • Issues
  • Physical and financial progress have been
    monitored and evaluated through only input-output
    basis
  • Project outcomes (e.g. impact on poverty
    reduction etc) are neither monitored nor
    evaluated except in few cases
  • Initiatives
  • GOB will explore provision for outcome evaluation
    after completion of Projects on large scale. An
    assessment on capacity of IMED to benefit
    evaluation have recently been done through SPP
    Project of IMED.
  • Oversight by Parliamentary Standing Committees
  • 40 IMED officers received training to strengthen
    their monitoring, inspection and evaluation
    capability

17
Financial Management, Audit and Reporting
  • FMRP targets, among others, ensuring adequate
    training to related personnel enabling the line
    ministries formulate budget under this framework.
  • Budget committees are set up in line ministries
    and will be supported gradually by FMUs to make
    informed decision. Budget allocations are to be
    tested with defined indicators and means of
    verification to match the policy goals.

18
  • The Project Accounting Manual issued by the
    Finance Division would have an automated
    reporting system to be developed under WB support
    for uniform use by all projects.
  • Audit function has been separated from accounting
    functions, which is now the responsibility of the
    line ministries.
  • CAG is focusing more on performance audit and
    systems audit.
  • Recent DP supported efforts in improving
    auditing practices and procedures would hopefully
    meet the requirements of GOB and of the DPs.

19
Financial Supporting and Harmonization
  • The Internal Audit and Internal Control
    Guidelines as piloted in Finance Division would
    be replicated for other Divisions as well.
  • A key FMRP output is to enhance the current
    Medium Term Expenditure Framework, enhance
    adequate training to the related personnel
    helping the line ministries to formulate budgets
    under the framework.

20
Sector Budget Support Overall Budget Support
  • For Aid effectiveness and quick implementation of
    development interventions, overall budget support
    is one of the considered options. We are to
    harmonize GOB and DP procedures for development
    programs management. To optimize benefits of
    reforms, we are also to ensure social and
    cultural cohesion and harmonization of policies
    and practices.
  • We have defined and prioritized our development
    goals in our I-PRSP and ensured mainstreaming
    poverty alleviation programs in the line
    ministries. We are strengthening NGO
    participation and Public Private Partnership
    (PPP) activities and gaining in economic growth
    including, inter alia, assets creation at the
    grass roots level, promoting continuous dialogue
    with stakeholders under SWAp.

21
Meeting the challenges
  • It is now recognized that benefits of DP
    assistance can be optimized with enhanced
    efficiency of use, better targeting, building
    capacity and sustainability. Therefore, focusing
    on aid governance and implementation is very
    important for both GOB and DP.
  • Development is a continuous process and many
    challenges remain to be addressed. We are to bank
    on our mutual successes and make determined
    progress on common goals. We together should work
    in harmony to address the uncertainties and risks
    in development horizon and access the windows of
    opportunities. In this exercise, our PRSP is
    expected to be a handy tool.

22
Thank you
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