Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Prepared By
________________________________________________
Dr. M. Harunur Rashid
i-iv
1.0
Background
2.0
3.0
Project Cycle
4.0
DPP/TPP Formulation
DPP/TPP Assessment Assessment criteria
DPP/TPP Evaluation Evaluation criteria
Project Revision
Project Time Extension
Conditional Approval
5.0
Knowledge Gap
Authority gap
Capacity gap
6.0
5
5
6
8
7
12
14
15
16
Change in mind-set
Enhancement of approval authority ceiling
Institution of planning discipline
Improvement in staff skill
Strengthening planning unit
Revision of bilateral/multi-lateral MOUs/MOAs
Institutional incentives
Annexure:
(i)
(ii)
(iii)
(iv)
(v)
17
17
17
18
18
18
18
Executive Summary
Poverty reduction was embedded as the foremost objective of the very first Five
Year Plan (1973-78) of Bangladesh and it remained the cornerstone of development
policy in all successive plans and strategies. Although pervasive institutional weakness in
macro, meso and micro level emerged as the central cause of poor implementation of
development plans, yet the most modest of gains defy the gloomy predictions and
pessimistic apprehensions that dominated the global discourse about the countrys longterm prospects till recently. The records of accomplishments proved encouraging in many
sectors that prepared Bangladesh to accept 21st century challenges of achieving the
Millennium Development Goals (MDGs) and to reduce poverty by fifty percent within
the year of 2015 from the base year 1990 and to elevate the countrys position into a
medium-income one by the year 2021. Bangladeshs version of Poverty Reduction
Strategy Paper (PRSP) was launched in 2005 in order to accelerate the process of
development. Since the launch of the National Strategy for Accelerated Poverty
Reduction (NSAPR) in 2005, strategic agenda have been set in motion to create macro
environmental factors necessary to heave a considerable part of the population above the
poverty line.
Since the takeover by the new government in January 2009, a new route map has
been pursued to impact the development plan positively. The recent vibration in the
National Economic Council (NEC), particularly the incidence of weekly meeting of the
ECNEC shows the level of urgency for Bangladesh to undergo a stern development
programme. In the face of the global recession, the importance of effective development
management, particularly aid effectiveness, has whirl pooled to a central issue for the
government. The following report is a basic scoping study based on secondary
information available in different reports and documents.
Bangladesh Planning Commission
The Planning Commission (Commission) of Bangladesh is the central planning
agency of the country. The Commission acts as adviser to the government in matters of
development. It is responsible for translating the ideas, aspirations and political agenda of
the government into macro and micro economic policies and setting them in long,
medium and short-term plans. The Commission also translates the multiyear development
plan into public investment through Annual Development Programme (ADP). It ensures
that public programmes and policies are in conformity with its long-term strategy through
its project approval process.
Development planning is the most important phase in the governments fiscal
policy. The planning process starts with the formulation of the ADP. The Ministry of
Finance and the Ministry of Planning are jointly responsible for the formulation of the
ADP in consultation with other line ministries and divisions. The NEC approves the
ADP.
It is widely believed that a drastic change is needed in the mind-set with regard to
institutional roles to deliver public good in the context of the present governments
commitment for a changed tomorrow. Being in the role of deliverer of service, the line
ministries need to assume more dynamic responsibility in planning, approval and
implementation of projects rather than forwarding recommendations to the Planning
Commission. The Planning Commission, on the other hand, has to assume more of the
advisory, coordination and oversight functions by pulling line ministries into the
executive functions of project approval, renewal and extension. A new relationship
dynamics has to evolve in the planning process thereby promoting a outcome-output
based planning institution.
ii
ii)
The time is now ripe for the nation to hold on to a consolidated planning system rather
than experimentation. Many different types have already been tried during the last three
and half decades. It is essential to institutionalise a firm planning model for the economy
that is capable of consolidating the development results in continuity.
iv)
The importance of expertise and skill in planning can not denied in any model. The skill
level of the staff involved in planning at all levels needs to be revamped in order to
undertake challenges for meeting year 2021 milestones of poverty reduction and reaching
at a level of middle-income country group. Capacity development of the planning
wing/branch at the ministry and planning unit at the implementing agency/department
needs to be prioritized. Continuity in effective utilization of staff skill needs to be
ensured.
v)
An effective staff set-up in each level of planning process has to be put in place and made
functional. The Planning unit in the agency/department has to have qualified staff with
adequate knowledge of project formulation, project documentation and monitoring and
implementation. An earlier decision of having a Planning Wing in the ministry with a setup of 16 staff under the leadership of a Joint Chief needs to be effectively implemented
henceforth. The staff strength of the different Wings/Sectors-Divisions in the Planning
Commission and IMED has to be increased.
vi)
iii
The foreign aid plays a very important role in the nations development administration.
The aid flow is generally governed by mother Agreements/Memorandum of
Understandings signed between different countries and development partners at different
times. It is believed that some of these MOAs/MOUs are many decades old. The
rationale, circumstances and conditions of many of them changed over time. It is now
imperative to revisit those MOAs and MOUs and have them updated in the context of
twenty first century needs.
vii)
It is expected that institutions and individuals see the potentials of improvement in every
change that might stand as observable incentives.
iv
1.0
Background
Poverty reduction remains the overarching planning objective for Bangladesh. To reduce poverty
fifty percent by 2015 from the base year 1990 and to achieve other MDGs (Millennium
development goal), is the Bangladeshi version of Poverty Reduction Strategy Paper (PRSP)
Unlocking the Potential: National Strategy for Accelerated Poverty Reduction (NSAPR) was
launched in 2005. Since then, strategic agendas for creating macroeconomic environment for
pro-poor growth and for sustaining the pace of development centered on PRSP a process is still
evolving. A recent review suggests that although the gains from the implementation of NSAPR
are modest in relation to the magnitude of the overall problem, they have underpinned attention to
the new challenges that the nation has to confront in the context of globalization as well as newer
and newer visions that arise from the present phase of domestic development (the task of
addressing the commitments of the present government for a Changed Tomorrow).
With the present elected government taking over in January 2009, a proactive route map is placed
on card for accelerated effort in development management. A cabinet minister in the Planning
Ministry is a very positive step toward this end. The revitalization of the Executive Committee of
the National Economic Council (ECNEC) with a meeting scheduled every week reflects the
urgency of the government in bringing a change in development administration. A call for
embarking on pro-poor growth oriented administration leaving the business-as-usual attitude
testifies the intention of the government in implementing development programmes in their
totality. In the face of global economic meltdown, the importance of more effective development
management, particularly aid effectiveness, has become a central issue in the government. In the
midst of the above, a scoping study of planning process and development project management is
quite pertinent.
2.0
Bangladesh Planning Commission (PC) is the central planning agency of the Government of
Bangladesh (GOB). It consists of mainly three types of functions: advisory, executive and
coordinative. As part of advisory function, PC has the responsibility of advising the government
in matters of development goals, priorities, strategies and policy measures. More precisely, it is
responsible for translating the ideas, aspirations and political agenda of the government into
macro and micro economic policies and set them in long, medium and short-term plans. As part
of its executive function, the Planning Commission is responsible for preparing, processing and
approving development plans, programmes as well as projects. The coordination function of PC
encompasses the whole range of planning activities in order to ensure consistency of investments
with overall and sectoral objectives of plans.
The Planning Commission is essentially a body of professionals and sector specialists engaged in
the formulation of macro as well as micro economic policies of the government under the
guidance of a minister. But ultimate decision-making rests with the head of the government i.e.,
the Prime Minister who is the chairperson of the National Economic Council. The PC works in
Divisions
Functions
Programming Division
3
4
5
6
The Commission is required to maintain close liaison with all ministries/divisions and agencies of
the government. The sector divisions of the planning commission start project processing only
after the ministries/divisions submit the relevant proposal to them. In addition to these, the
commission has to depend for planning inputs on some specialized agencies of the government.
With heavy reliance on external aid for implementation of plans, programmes and projects, the
task of negotiation and lining up of foreign aid has been assigned to ERD. Finance Division and
the Internal Resource Division are responsible for internal resource mobilization and availability.
The allocation of funds to individual projects in the ADP is guided by the progress reports on
projects prepared by Implementing, Monitoring and Evaluating Division (IMED). The data
requirement of the Commission is met by the Bangladesh Bureau of Statistics (BBS).
Development Administration
Finance Division
Internal Resources
Division: NBR
Planning
Commission
Economic Relations
Division (ERD)
Bangladesh Bureau
of Statistics (BBS)
Line Ministries/Division
Development Partners
Bangladesh Bank
Implementing Agencies
Planning Division
Sub Implementing
Agencies
3.0
Project Cycle
Development planning is considered to be the most important aspect of the Governments Fiscal
Policy. Planning for a fiscal year starts with formulation of the Annual Development Programme
(ADP). Approved projects are shown with funding arrangements in the ADP. On the other hand
unapproved projects are also shown in the ADP in its own separated section generally listed
without the funding arrangement. The ADP is sent for printing during every first week of May on
an annual basis.
National Priorities
And Economic
Agenda
Civil Society
Organisations
Development Studies
Institute e.g. BIDS,
CPD, Pop Council,
Development research
community and so on
Planning
Commission
Annual Development
Programme (ADP)
Based on Mid Term
Budgetary Framework
(MTBF)
Group of
Development
Partners
(Aid Group)
World Bank, ADB,
JBIC and other
International
Financial
Institutions, UN
Systems, Bi-lateral
Institutions, DFID,
NORAD, DANIDA,
SIDA, CIDA, KfD,
kfw so on.
4.0
Investment Project:
DPP formulation
Implementing
Agencies/Departments
DPP assessment
Ministry/Division
Planning Wing
Considerations:
a) The basic premises of the DPP/TPP in terms of National and Ministerial Strategic
Policies, PRS, etc.;
b) Project position in the Agencys priority list;
c) Justification of the project in the context of the overall national economic
condition;
d) Experience from similar projects implemented and/or under implementation;
e) Possibility of duplication with any programmes under revenue budget;
f) Institutionalisation and sustainability of the human resources of the project after
completion;
g) Possible risks from implementation of the project and means for mitigation;
h) Land acquisition plan, if needed;
5
DPP/TPP Evaluation :
DPEC/DSPEC Meeting:
The ministerial planning wing/branch is required to arrange for the submission of the
DPP to the Planning Commission (respective Wing/Sector-division) within 10 days, once
the It (DPP) is finalized with recommendations from the HR Committee of the FD.
Preliminary Appraisal :
Planning Commission
Wing/Sector-Division
PEC Decision
Survey/Feasibility Studies:
Economic Relations Division (ERD) would then negotiate foreign assistance with
Development Partner(s) specifically for approved PDPPs. Then the Line
Ministry/Division prepares DPP/TPP on the basis of ERDs nods, reflecting the
availability of funding assurance from DP(s). ERD shall keep abreast LM, IP, and the
respective Wing/Sector-Division of the PC regarding different stages of negotiation with
DPs. The LM/Division/IP shall finalize the DPP on the basis of all relevant information.
The FD, PC, IMED, ERD and other relevant ministries/divisions/agencies might be
involved in the preparation of DPP through the formation of committee.
All relevant elements of the DPP/TPP evaluation shall be incorporated in the document.
Project revision
Projects can be revised for 2 times. In special cases PC can undertake project revision
processes with the approval of the Minister/Advisor/State Minister for Planning. Postfacto approval is not allowed.
1st revision
The Minister/Advisor/State Minister can approve a revised DPP under the title RDPP on
the basis of the recommendation of the DPEC subject to the fulfillment of following
conditions:
a) remain unchanged objectives, financing mode, sources of finance,
etc.
b) change of 10% in the project cost after inclusion and/or seizure of any
elements
Maximum period of 1 year can be extended by the Minister/Advisor/State Minister
provided s/he didnt approve any other previous extensions.
The project revision is required to be approved by the original approving authority if the
objectives, sources and modes of financing changes including changes in vehicles and
HR.
In case of availability of JDC fund for any approved project, no revision shall be
required. The ministry shall reflect the new fund in the RDPP with the approval of the
Minister/Advisor/State Minister and keep the PC and IMED informed.
2nd revision
In case of changes exceeding more than 20% of the total project cost (including 1st
revised cost), including changes in objectives, implementation of more than 1 year,
sources and mode of financing, HR, etc. the ministry/division shall prepare the 2nd RDPP
and submit it to the respective Wing/Sector-Division. The respective Wing/SectorDivision shall submit the RDPP within the stipulated time for the approval of the
Minister/Advisor/State Minister. In some cases recommendations from the PEC might
become solicited.
The total process of revision shall be completed within 45 days from the date of receiving
the RDPP from the initiating ministry/division.
If the PC does not see the merit of the revision, it will inform the ministry about the
refusal within 30 days with the approval of the Minister/Advisor/State Minister.
Time extension
Minister/Advisor/State Minister is entitled to approve the revision for extension of time
for a maximum period of 1 year time (before 2nd revision) on the recommendations
provided by IMED, there can be no change in objectives, HR, consultancy services and
total cost.
In case extensions take more than 1 year time or are extended for the 2nd time, the
ministry/division shall submit the proposal to the PC (Wing/Sector) and IMED
simultaneously. The member of the respective division entitled to approve such extensions
based only on recommendations from the IMED and the ministry should be notified of the
decision taken within 30 days time. In case a 3rd extension is required, the
Minister/Advisor/State Minister can approve such extension in the same manner. In case
of projects with foreign assistance, acceptance from ERD is necessary.
Technical Assistance
The initiating ministry shall complete the approval process of TA projects costing below
Tk.7 crore in total (GoB + foreign assistance)
DSPEC shall evaluate the proposal after considering the following:
a. assurance of foreign assistance;
b. relevance and justification of proposed consultancy service;
c. justification/standard of TOR of the services in achieving the
objectives;
d. competency of the counterpart personnel and their number;
e. inadequacy of the technical know-how of the IP;
f. Modus operandi of the technology/knowledge transfer to the
counterpart personnel;
g. Consistency in different elements of the TPP
The Minister/Advisor/State Minister shall approve the TPP on the recommendation of the
DSPEC. The whole process shall be completed within 30 days.
TA projects costing over Tk. 7 crore: Approval process shall be completed in the
Planning Commission. The respective Wing/Sector-Division shall conduct a preevaluation of the proposal on the basis of the above mentioned criteria and process the
TPP for SPEC meeting with appropriate recommendations or comments. The
Minister/Advisor/State Minster for Planning shall approve the TPP on the basis of
recommendation of the SPEC within 45 days (from the date of submission by the
initiating ministry).
Approval of TA projects on Principle: in case of a situation that demands approval on
principle pending DSPEC and/or SPEC meetings for signing agreement with DP, the
initiating ministry and/or the respective Wing/Sector-Division can secure Expected
Approval from the competent authority.. But, the conditions remain that the TPP shall be
finalized through due ( DSPEC and SPEC) process within 60 days of such expected
approval.
TA Project revision
A particular project can be only be revised for 2 times. In special cases PC can
undertake project revision process with the approval of the Minister/Advisor/State
Minister for Planning. Post-facto approval is not allowed.
1st revision
The Minister/Advisor/State Minister can approve a revised TPP under the title RTPP on
the basis of the recommendation of the DSPEC subject to the fulfillment of following
conditions:
10
11
12
Reporting to ECNEC
Investment projects approved by the Minister/Adviser/State Minister for Planning shall
be reported to the ECNEC for information. The respective Wing/Sector-Division shall
prepare a summary of approved projects within a month after such approval and submit it
to the NEC, ECNEC and Coordination wing. The revised projects approved by the
Planning Minister/Adviser/State Minister do not require such reporting to ECNEC.
General issues
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
5.0
13
14
15
Tk.2.0 crore (US$294 K) only. The ministerial authority for project revision is
also restricted to first revision with several other conditions. This ceiling is not
sufficient in present day context.
j. Low ceiling of Planning ministry authority for project approval: The
Minister/Adviser/State Minister for Planning has the authority to approve
progarmme/projects costing up to Tk.25.0 crore on the basis of PEC/SPEC
recommendation. This low ceiling is not supportive of proactive Planning
Ministry role.
k. Duplication of authority: Almost the same group of institutions is involved in
DPP/TPP evaluation at different levels which again slow down the process. Both
DPEC and PEC is represented by almost the same group of institutions.
Capacity gap
l. Lack of appropriate human resources at the agency, ministry and PC level: The
institution of Planning Wing in the ministry was intended for decentralization of
planning function and accelerating the programme/project development/approval
process. The current state of staffing does not support effective implementation of
the concept. Although, the planning wing set-up at ministry level comprised of 16
staff headed by a Joint Chief and assisted by Deputy Chief/Assistant Chiefs, all
representing economic cadre, one could hardly find a complete planning wing in
any ministry across the government. Most of the planning wing(s) are
understaffed as well as poorly staffed with inadequate skill and expertise. Almost
similar opinion goes true with staffing of IMED and Planning Commission.
Although the size of the ADP has multiplied over the decades, there has not been
any change in the staffing pattern of IMED and Planning Commission. Almost the
same number of people (managing Tk.2,500 crore ADP) are managing the age old
functions of monitoring, evaluation and planning for an ADP of Tk.25,600 crore.
m. Inadequate time frame: The time frame suggested in the Planning Commission
guideline (May 2008) is not adequate. Moreover, irregular convening of meeting
of different committees relating to planning at agency/ministry/planning
commission level slow down the process.
n. Inconsistency in policy support and personal interest: Too much diversity in
government and donor procedures/implementation policies negatively impact the
staff capacity at different levels. Frequent changes in policy/priority with changes
in political government also affect the system. All of these slow down the process.
Moreover, personal interest behind the DPP/TPP processing sometimes seriously
matters in the system. The use of varied planning models at different time created
scope for influence in the system to serve many different types of personal
interests.
o. Frequent staff rotation: Quite frequent staff rotation in the government system
sometimes create dent in the retention and effective use of capacity in continuity.
16
It is widely believed that a drastic change is needed in the mind-set with regard to
institutional roles to deliver public good in the context of the present
governments commitment for a changed tomorrow. Being in the role of deliverer
of service, the line ministries need to assume more dynamic responsibility in
planning, approval and implementation of projects rather than forwarding
recommendations to the Planning Commission. The Planning Commission, on the
other hand, has to assume more of the advisory, coordination and oversight
functions by pulling line ministries into the executive functions of project
approval, renewal and extension. A new relationship dynamics has to evolve in
the planning process thereby promoting a outcome-output based planning
institution.
ix)
x)
17
xi)
xii)
xiii)
The foreign aid plays a very important role in the nations development
administration. The aid flow is generally governed by mother
Agreements/Memorandum of Understandings signed between different countries
and development partners at different times. It is believed that some of these
MOAs/MOUs are many decades old. The rationale, circumstances and conditions
of many of them changed over time. It is now imperative to revisit those MOAs
and MOUs and have them updated in the context of twenty first century needs.
xiv)
18
Annex - 1
Project Approval process
Investment Project:
Planning
Cell
DPP
DPEC
CC
15-days
Finance Division
Ministry/Division
DPP/
recast
DPP
20 copies
Sector-Div
30 days
Wing/ Sector
(up to 25 Cr)
Notes
PEC
DPP
DPEC
TPP
SPEC
DSPEC
19
PEC
ECNEC
(25 Cr+)
IMED
Implementing
Agency/
Department
Planning Commission
10 days
Annex - 2
Institution
Agency/Departmen
t
DPP preparation
NM
Sponsoring Ministry
Planning Cell
NM
Sponsoring
Ministry/Div.
NM
NM
NM
NM
25 days
Planning Commission
Complete project appraisal process (may go for
project site visit, if required)
NM
Prepare working paper for PEC/SPEC, with
appropriate opinion and organise PEC meeting;
Wing/SectorDivision
10 days
10 days from
issuing of
minutes of
PEC
NM
30 days
20
15 days
Chair:
Member of
concerned
Division
PC recommendation
Annex - 3
Planning Process
Function
Project initiation
Technical scrutiny
Project appraisal and
approval
Project Funding
Project
Implementation
National Policymaking
Responsible Agencies
Implementing department/local-level organizations, executing agencies,
Sponsoring ministries/divisions, public sector corporations
Planning cell of the line ministries/divisions
Departmental Project Evaluation Committees or Special Committees in
the line ministries/divisions(DPEC/DSPEC); Project Evaluation
Committees (PEC/SPEC) in the Planning Commission; Executive
Committee of the national Economic Council (ECNEC)
National Economic Council (NEC) through approval of ADP
Line ministries/divisions (through their line departments/agencies)
National Economic Council
21
Annex - 4
Planning Authority
Category
Investment Size
Processing
Authority
i) TA Project
Up to Tk.7 Cr.
(US$1.29 M)
Up to Tk. 2 Cr.
(US$294,000)
Planning Cell
in the
Ministry
ii) Survey/
Feasibility Study
B
i) TA Project
Beyond Tk. 7 Cr.
Beyond Tk. 2 Cr.
ii) Survey/
Feasibility Study
iii) Investment
Up to Tk.25 Cr.
Project
All projects
Respective
Wing/SectorDivision in
the Planning
Commission
22
Level of Approving
Authority
Minister, Line
Ministry/Division
(On the basis of
recommendation
from DSPEC)
Planning Minister
(On the basis of
sectoral evaluation
and recommendation
from PEC/SPEC)
Executive
Committee of the
National Economic
Council (ECNEC)
Timeframe
30 work days
(From the date
of receiving
the proposal)
* 30 work
days for the
Ministry
* 45 work
days for PC
Annex 5
Composition
01 Member, Concerned Division, the Planning Commission
Chair
02 Division Chief, Concerned Division, the Planning Commission
Member
03 Representative, Programming Division, the Planning Commission
Member
04 Representative, General Economic Division, the Planning Commission
Member
05 Representative, the Sponsoring Ministry
Member
06 Representative, Finance Division
Member
07 Representative, Economic Relations Division
Member
08 Representative, Ministry of Establishment
Member
09 Representative, Concerned Sector, IMED
Member
10 Representative, Ministry of Environment and Forest
Member
11 Representative, Ministry of Women and Children Affairs
Member
12 Head, Concerned executing Agency
Member
Notes
a
Representative of the Ministry/Division shall not be below the rank and status of Joint Secretary/Joint Chief
b
Concerned Wing/Sector-Division of the Planning Commission shall extend secretarial services to the PEC
Appraise the acceptability of development project proposals (DPP)/study/feasibility proposal in the context of
short, medium and long-term policies, plans and programmes of the government
Examine financial, economic, environmental and technical viability of DPP/RDPP/TPP/Study Proposal
Examine the main features of revision and acceptability of RDPP/RTPP
Suggest necessary amendment/modification/moderation, etc. where necessary
Formulate recommendation(s0 for consideration of the approval authority (Minister for Planning/ECNEC)
Composition
01 Secretary, Concerned Ministry/Division
Chair
02 Joint Chief/Deputy Chief, Concerned Ministry/Division
Member
03 Representative, Programming Division, the Planning Commission
Member
04 Representative, General Economic Division, the Planning Commission
Member
05 Representative, Concerned Wing/Sector-division, the Planning Commission
Member
06 Representative, Finance Division
Member
07 Representative, Economic Relations Division
Member
08 Representative, Ministry of Establishment
Member
09 Representative, Concerned Sector, IMED
Member
10 Representative, Ministry of Environment and Forest
Member
11 Representative, Ministry of Women and Children Affairs
Member
12 Head, Concerned executing Agency
Member
Notes
a
Representative of the Ministry/Division shall not be below the rank and status of Deputy Secretary/deputy Chief
b
Planning Wing/Cell/Branch of the sponsoring Ministry/Division shall extend secretarial services to the DPEC
Appraise the acceptability of development project proposals (DPP)/study/feasibility proposal in the context of
short, medium and long-term policies, plans and programmes of the government
Examine the main features of revision and acceptability of RDPP/RTPP
Suggest necessary amendment/modification/moderation, etc. where necessary
Formulate recommendation(s0 for consideration of the approval authority (Minister for Planning/ECNEC)
23
Annex -6
Persons Consulted
Name
Designation
Institution
Member
Director General
Director General
Joint Chief
Joint Chief, Planning
Joint Chief
Deputy Chief, Planning
Operations Advisor
24