Transcript Aid Governance and Implementation of Development Programs

Aid Governance and Implementation of
Development Programs
Bangladesh Development Forum
10 May 2004, Dhaka
M. Fazlur Rahman
Secretary, Planning Division
&
Member (SEI & Programming), Planning Commission
1
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.
2
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
3
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
4

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)

– 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.
6

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.
7
– 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.
8
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
9
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.
10

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.
11
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.
12
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
13
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).
14
Sustainability of the Project Benefits

Issues
– To achieve intended benefits, proper Operation and
Maintenance (O&M) 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.
15
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
16
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.
17

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.

C&AG 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.
18
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.
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.
20
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.
Thank you
22