Title: Aid Governance and Implementation of Development Programs Bangladesh Development Forum 10 May 2004,
1Aid Governance and Implementation of Development
ProgramsBangladesh Development Forum10 May
2004, DhakaM. Fazlur RahmanSecretary,
Planning Division Member (SEI Programming),
Planning Commission
2We 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.
3Outline 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
4Project 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.
9Project 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
10Initiatives 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.
12Recruitment 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.
13Project 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
14Adaptation 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).
15Sustainability 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.
16Monitoring 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
17Financial 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.
19Financial 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.
20Sector 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.
21Meeting 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.
22Thank you