SEPCO

Document of
The World Bank

FOR OFFICIAL USE ONLY
Report No: PAD2371
INTERNATIONAL DEVELOPMENT ASSOCIATION
PROJECT APPRAISAL DOCUMENT

ON A
PROPOSED CREDIT
IN THE AMOUNT OF SDR40.2 MILLION

(US$55 MILLION EQUIVALENT)
TO THE
PEOPLE’S REPUBLIC OF BANGLADESH
FOR A
DIGITIZING IMPLEMENTATION MONITORING AND PUBLIC PROCUREMENT PROJECT
June 29, 2017
Governance Global Practice

South Asia Region
This document has a restricted distribution and may be used by recipients only in the performance of
their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
This document has a restricted distribution and may be used by recipients only in the performance of
their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
CURRENCY EQUIVALENTS
(Exchange Rate Effective April 30, 2017)
Currency Unit = Bangladesh Taka(BDT)

BDT 78 = US$1
US$ 1.37102 = SDR 1
FISCAL YEAR
July 1 – June 30
ABBREVIATIONS AND ACRONYMS
ADB Asian Development Bank

ADP Annual Development Program
BCC Behavioral Change Communication
BCCP Bangladesh Center for Communication Program
BIGD Bangladesh Institute for Governance and Development
BPDB Bangladesh Power Development Board
BREB Bangladesh Rural Electrification Board
BWDB Bangladesh Water Development Board
C&AG Comptroller and Auditor General
CAO Chief Accounts Officer
CE Citizen Engagement
CFR Citizen Monitoring Forum
CPF Country Partnership Framework
CGA Controller General of Accounts
CIPS Chartered Institute of Purchasing & Supply, UK
CPAR Country Procurement Assessment Report
CPTU Central Procurement Technical Unit
DA Designated Account
DC Direct Contracting
DFID Department for International Development (UK)
DG Director General
DIMAPPP Digitizing Implementation Monitoring and Public Procurement Project
DRC Disaster Recovery Center
ECoP Environmental Code of Practice
ERP Enterprise Resource Planning
ESCB Engineering Staff College Bangladesh
ECNEC Executive Committee for National Economic Council
e-GP Electronic Government Procurement
ESCB Engineering Staff College Bangladesh
FCFAA Country Financial Accountability Assessment
FAPAD Foreign Aided Project Audit Directorate
FM Financial Management
FMC/FMS Financial Management Consultant/ Specialist
GOB/GoB Government of Bangladesh
GTF Government Tenderers’ Forum
GP Global Practice
IC Individual Consultant
ICB International Competitive Bidding
IDA International Development Association
IFB Invitation for Bids
IFR Integrated Fiduciary Review
IUFR Interim Un-audited Financial Report
ITC-ILO International Training Center of International Labor Organization- Turin/Italy
IMED Implementation Monitoring & Evaluation Division
LGD Local Government Division
LGED Local Government Engineering Department
LGIs Local Government Institutions
MIS Management Information System
MOP Ministry of Planning
MOU Memorandum of Understanding
MTR Mid-Term Review
NCB National Competitive Bidding
NGO Non-governmental Organization
OC Open Contracting
NSPSO Newly Selected Public Sector Organization
OECD Organization for Economic Cooperation and Development
PDO Project Development Objective
PE Procuring Entity
PFM Public Financial Management
PFP Procurement Focal Person
PIP Project Implementation Plan
PIT Project Implementation Team
PM Prime Minister
PMC Project Monitoring Coordinator
PPA Public Procurement Act
PPSC Public-Private Stakeholders Committee
PPR Public Procurement Rules 2008
PPRP Public Procurement Reform Project
PPRPII Public Procurement Reform Project II
PROMIS Procurement Management Information System
PSC Project Steering Committee
PSO Public Sector Organization
PSPSO Previously Selected Public Sector Organization
QBS Quality-Based Selection
QCBS Quality- and Cost-Based Selection
RFB Request for Bid
RFP Request for Proposal
RHD Roads and Highways Department
SA Special Account
SAc Social Accountability
SBD Standard Bidding Documents
SLA Service Level Agreement
SOE Statement of Expenditures
SORT Systematic Operations Risk-Rating Tool
SPSO Selected Public Sector Organization
SSS Single-Source Selection
SSCM Site Specific Citizen Monitoring
SWAps Sector-wide Approaches
TAPP Technical Assistance Project Proposal
TOR Terms of Reference
TPP Technical Assistance Project Proposal
TWG Technical Working Group
UNCITRAL UN Commission for International Trade Law
UNDP United Nations Development Program
WB World Bank
Regional Vice President: Annette Dixon

Country Director: Qimiao Fan
Senior Global Practice Director: Deborah L. Wetzel
Practice Manager: Felipe Goya
Task Team Leader(s): Zafrul Islam
Regional Vice President: Annette Dixon

Country Director: Qimiao Fan
Senior Global Practice Director: Deborah L. Wetzel
Practice Manager: Felipe Goya
The World Bank
Digitizing Implementation Monitoring and Public Procurement Project (P160758)
BASIC INFORMATION
Is this a regionally tagged project? Country(ies) Financing Instrument

No Investment Project Financing
[ ] Situations of Urgent Need of Assistance or Capacity Constraints

[ ] Financial Intermediaries
[ ] Series of Projects
OPS_BASICINFO_TABLE_3
Approval Date Closing Date Environmental Assessment Category
28-Jul-2017 30-Jun-2022 C - Not Required
Bank/IFC Collaboration
No
Proposed Development Objective(s)
The project development objective is to improve public procurement performance and enhance capacity for
implementation monitoring of development programs/projects.
Components
Component Name Cost (US$, millions)
Restructuring CPTU and Institutionalizing e-GP 9.00
Enhancing Digitization of Public Procurement 28.00
Professionalizing Procurement and Citizen Engagement 18.00
Digitizing Project Implementation Monitoring 5.00
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Organizations
Borrower : People's Republic of Bangladesh
Implementing Agency : Implementation Monitoring and Evaluation Division
PROJECT FINANCING DATA (US$, Millions)
FIN_TABLE_DAT
A[ ✔ ] [ ✔ ] IDA Credit
[ ] IBRD [ ] IDA Grant [ ] Trust [ ]
Counterpart Funds Parallel
Funding [ ] Crisis Response [ ] Crisis Response Financing
Window Window
[ ] Regional Projects [ ] Regional Projects

Window Window
FIN_COST_OLD
Total Project Cost: Total Financing: Financing Gap:
60.00 60.00 0.00
Of Which Bank Financing (IBRD/IDA):
55.00
Financing (in US$, millions)

FIN_SUMM_OLD
Financing Source Amount
Borrowing Agency 5.00
IDA-60770 55.00
Total 60.00
Expected Disbursements (in US$, millions)
Fiscal Year 2018 2019 2020 2021 2022
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Annual 2.30 6.45 11.49 15.77 18.99

Cumulative 2.30 8.75 20.24 36.01 55.00
INSTITUTIONAL DATA
Practice Area (Lead)

Governance
Contributing Practice Areas

Energy & Extractives
Transport & ICT
Water
Climate Change and Disaster Screening

This operation has been screened for short and long-term climate change and disaster risks
Gender Tag
Does the project plan to undertake any of the following?
a. Analysis to identify Project-relevant gaps between males and females, especially in light of country gaps identified
through SCD and CPF
Yes
b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment
No
c. Include Indicators in results framework to monitor outcomes from actions identified in (b)
No
SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)
Risk Category Rating

1. Political and Governance  Moderate
2. Macroeconomic  Low
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3. Sector Strategies and Policies  Low

4. Technical Design of Project or Program  Moderate
5. Institutional Capacity for Implementation and Sustainability  Substantial
6. Fiduciary  Substantial
7. Environment and Social  Low
8. Stakeholders  Substantial
9. Other  Substantial
10. Overall  Substantial
COMPLIANCE
Policy
Does the project depart from the CPF in content or in other significant respects?
[ ] Yes [✔] No
Does the project require any waivers of Bank policies?

[ ] Yes [✔] No
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment OP/BP 4.01 ✔

Natural Habitats OP/BP 4.04 ✔
Forests OP/BP 4.36 ✔
Pest Management OP 4.09 ✔
Physical Cultural Resources OP/BP 4.11 ✔
Indigenous Peoples OP/BP 4.10 ✔
Involuntary Resettlement OP/BP 4.12 ✔
Safety of Dams OP/BP 4.37 ✔
Projects on International Waterways OP/BP 7.50 ✔
Projects in Disputed Areas OP/BP 7.60 ✔
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Legal Covenants
Financing Source Sections and Description

Implementation Arrangements/Project Steering
Committee: The Recipient shall maintain, throughout
the period of Project implementation, the Project
Steering Committee (“PSC”) with a mandate,
composition and resources satisfactory to the
Association. Without limitation on the foregoing, the
PSC shall: (i) be chaired by the Secretary of IMED and
comprise heads of SPSOs or their authorized
representatives and members of relevant
ministries/organizations as required; and (ii) meet as
frequently as necessary to: (A) provide strategic and
policy direction on all Project activities; (B) review
progress on Project implementation; and (C) address
any obstacle during Project implementation.
Recurrent: Yes; Due Date: N/A; Frequency: Throughout

implementation.

Implementation Arrangements/Project Coordination
Team: The Recipient shall maintain, throughout the
period of Project implementation, a Project
Coordination Team (“PCT”) with a mandate,
composition and resources satisfactory to the
Association. Without limitation on the foregoing, the
PCT shall: (i) be headed by the Director General of the
Central Procurement Technical Unit (“CPTU”) and
comprise officials from CPTU, IMED and one (1) Project
monitoring coordinator from each SPSO (who shall be
not below the rank of the executive engineer or
equivalent) and members of relevant
ministries/organizations as required; (ii) be responsible
for, inter alia, coordinating all Project activities; and (iii)
report to the PSC on all its assigned functions.
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implementation.

Implementation Arrangements/Project Implementation
Team: The Recipient shall cause each SPSO to establish,
and thereafter maintain throughout the period of
Project implementation, a Project Implementation
Team (“PIT”) with a mandate, functions and resources
satisfactory to the Association. Without limitation on
the foregoing, each PIT shall: (i) be headed by one
Project monitoring coordinator; and (ii) be composed of
relevant officials being a maximum number of 2 (two)
on the basis of their involvement in procurement and
technical functions.
Recurrent: Yes: Due Date: N/A; Frequency: Throughout

implementation.

Implementation Arrangements/Central Procurement
Technical Unit: The Recipient shall maintain, throughout
the period of Project implementation, the Central
Procurement Technical Unit (“CPTU”) with a mandate,
functions and resources satisfactory to the Association,
and with staff in adequate numbers and with
qualifications, experience and terms of reference
satisfactory to the Association. Without limitation on
the foregoing, the CPTU shall: (a) be headed by the
Director General of CPTU as the Project director; and (b)
be responsible for, inter alia, the overall Project
implementation with the assistance of all the selected
SPSOs.
Recurrent: Yes; Due Date: N/A: Frequency: Throughout

implementation
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Implementation Arrangements/Central Procurement

Technical Unit: The Recipient shall not substitute the
Director General mentioned in the above paragraph (a)
as Project director until the Public Procurement
Authority has been established in a manner satisfactory
to the Association, unless the Recipient has established
to the satisfaction of the Association prior to
proceeding with substitution of the Director General as
Project Director that it has identified a replacement
with qualifications and experience acceptable to the
Association.

implementation.

Implementation Arrangements//Procurement
Authority: By no later than 24 months after the
Effective Date, the Recipient shall: (i) restructure CPTU
into a Public Procurement Authority with regulatory
authority and terms of reference acceptable to the
Association;and (ii) transfer all CPTU’s Project
implementation responsibilities, including relevant staff,
to the Public Procurement Authority in a manner
satisfactory to the Association. The Recipient shall
ensure that the aforementioned transference is carried
out without interrupting Project implementation. No
implementation responsibilities and staff assigned to
CPTU shall be considered transferred to the Public
Procurement Authority under this Project until: (i) the
Association is satisfied that the Public Procurement
Authority has the capacity to take over CPTU’s
implementation responsibilities under the Project and
(ii) an agreement between the Association and the
Public Procurement Authority has been executed with
terms and conditions acceptable to the Association.
Recurrent: No; Due Date: By no later than 24 months
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after Effective Date; Frequency:

Implementation Arrangements/ Central Procurement
Technical Unit: The Recipient shall, by no later than
three months after the Effective Date, hire: (i) two (2)
financial management specialists and one (1)
procurement specialist, under terms of reference
satisfactory to the Association, and place within CPTU;
and (ii) a set of highly skilled professionals in adequate
numbers and with qualifications, experience and terms
of reference satisfactory to the Association to assist the
CPTU in managing the Project (including the e-GP)
including a Principal Project management expert,
database administrator, and application administrator.
Recurrent: No; Due Date: By no later than 3 months

after Effective Date; Frequency:

Environmental Code of Practice: The Recipient shall
ensure that each contract for installing/replacing
equipment under the Project includes the obligation of
the relevant contractor to comply with environmental
codes of practice for e-waste disposal acceptable to the
Association and applicable to such contract
commissioned/awarded pursuant to said contract.
Recurrent: Yes; Due Date: N/A; Throughout

implementation.
Conditions
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PROJECT TEAM
Bank Staff
Name Role Specialization Unit
Team Leader(ADM Procurement Reform and e-
Zafrul Islam GGO06
Responsible) GP
Procurement Specialist(ADM
Arafat Istiaque Procurement GGO06
Responsible)
Mohammad Reaz Uddin Financial Management
Financial Management GGO24
Chowdhury Specialist
A.N.M. Mustafizur Rahman Team Member Procurement Reform GGO06
Ishtiak Siddique Team Member e-GP and Procurement GGO06
Jorge Luis Alva-Luperdi Team Member Legal LEGES
Joseph Fagan Team Member e-GP Implementation GGO06
Marcela Rozo Rincon Team Member Procurement Data Analytics GGO02
Communication and civic
Masud Mozammel Team Member ECRGP
engagement
Md Kamruzzaman Team Member Capacity Development GGO06
Mehrin Ahmed Mahbub Team Member Communications SAREC
Nadia Sharmin Environmental Specialist Environment GEN06
Nafisa Rusmila Team Member Project Support SACBD
S M Hafiz Al Mamun Team Member Project support GGO06
Sabah Moyeen Safeguards Specialist Social GSU06
Satish Kumar Shivakumar Team Member Finance and Accounts WFALA
Stephen R. Davenport Team Member Open Contracting GGO28
Tanvir Hossain Team Member Cross support e-GP GGO03
Extended Team
Name Title Organization Location
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BANGLADESH
DIGITIZING IMPLEMENTATION MONITORING AND PUBLIC PROCUREMENT PROJECT
TABLE OF CONTENTS
I. STRATEGIC CONTEXT ...................................................................................................... 1

A. Country Context .................................................................................................................. 1
B. Sectoral and Institutional Context .......................................................................................2
C. Higher Level Objectives to which the Project Contributes ..................................................3
II. PROJECT DEVELOPMENT OBJECTIVES .............................................................................. 4
A. PDO...................................................................................................................................... 4
B. Project Beneficiaries ............................................................................................................ 4
C. PDO-Level Results Indicators............................................................................................... 5
III. PROJECT DESCRIPTION.................................................................................................... 5
A. Project Components............................................................................................................ 5
B. Project Cost and Financing ...................................................................................................9
C. Lessons Learned and Reflected in the Project Design .......................................................10
IV. IMPLEMENTATION.........................................................................................................11
A. Institutional and Implementation Arrangements .............................................................. 11
B. Results Monitoring and Evaluation ....................................................................................11
C. Sustainability ......................................................................................................................12
D. Role of Partners................................................................................................................. 12
V. KEY RISKS ..................................................................................................................... 13
A. Overall Risk Rating and Explanation of Key Risks............................................................... 13
VI. APPRAISAL SUMMARY ...................................................................................................14
A. Economic and Financial (if applicable) Analysis ................................................................ 14
B. Technical............................................................................................................................ 15
C. Financial Management ...................................................................................................... 15
D. Procurement ..................................................................................................................... 15
E. Social (including Safeguards) ............................................................................................. 16
F. Environment (including Safeguards) ................................................................................. 16
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G. Other Safeguard Policies (if applicable) ............................................................................ 17

H. World Bank Grievance Redress ......................................................................................... 17
VII. RESULTS FRAMEWORK AND MONITORING .................................................................... 18
ANNEX 1: DETAILED PROJECT DESCRIPTION ......................................................................... 27
ANNEX 2: IMPLEMENTATION ARRANGEMENTS .....................................................................54
ANNEX 3: IMPLEMENTATION SUPPORT PLAN ...................................................................... 66
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I. STRATEGIC CONTEXT
A. Country Context
1. Bangladesh is one of the world’s most populous countries with an estimated 160 million people
in a geographical area of about 144,415 sq.-km and per capita income of US$1,409 in 2016 crossing the
threshold of lower middle income country. During recent years, economic conditions improved in the
country with headline inflation declining to 5.9 percent in FY16 from 7.3 percent in FY14, while the fiscal
deficit contained at around 3.1 percent of Gross Domestic Product (GDP) in FY16. The GDP grew well
above the average for developing countries in recent years, averaging 6.5 percent since 2010, with an
officially reported growth of 7.1 percent in in FY16, driven by manufacturing and services. Progress on
reducing extreme poverty and boosting shared prosperity through human development and employment
generation has continued with the poverty incidence from 32.6 percent in 2002 to a projected 18.6
percent in 2010 (latest available poverty data). Bangladesh’s performance against the Millennium
Development Goals (MDG) is impressive against the South Asia Region average for most of the indicators
in table 1. Despite such progress, the country needs more effort in improving its growth rate to meet its
target of becoming an upper middle income country by 2031.
Table 1: Social Indicators for Bangladesh and Comparators

Lower middle
Indicator Bangladesh South Asia
income countries
GDP per capita (constant US$ 2010) [1971-2015] 131.9 1,211.7 386 1,641 690 2,047
Life expectancy (years) at birth [1971-2014] 47.1 71.6 49 68 51 67
Infant mortality rate [1971-2015] 148.9 30.7 142 42 129 40
Total fertility rate [1971-2014] 6.9 2.2 5.7 2.5 5.7 2.8
Gross Enrolment Ratio (Primary) [1971-2011] 51.2 111.9 71.6 107.3 77.4 104.3
DPT child immunization rates (percent) [1985-2015] 74 94 18.4 85.4 25.7 81.3
Access to improved sanitation (percent) [1995-2015] 40.0 60.6 24.0 44.7 35.0 52
Poverty headcount @ $1.9/day (percent population) [1991-
2010] 44.2 18.5 24.6 23.5
Mobile cellular subscription (per 100) [2001-2015] 0.4 83.4 0.6 78.4 2.0 90.5
Source: World Development Indicators; Extracted on 1st Sep. 2016 from:
http://databank.worldbank.org/data/reports.aspx?source=world-development-indicators
2. For accelerating private sector-led growth with improved investment climate, the key challenges
are the need for increased infrastructure and power, with improved governance structure in spending
public resources for better service delivery. Given the mixed governance performance, there is
recognition within the country about the need for enhanced accountability and improved governance.
Now there is a wind of change on the political economy front for the adoption of fast technology-based
solutions in improving governance with greater efficiency, transparency and accountability. Thus, public
procurement is not just a mechanism for executing transactions but an integral part of strategic
development process and a priority for improving governance. An efficient procurement process with
effective procurement outcome, ensuring value-for-money, is the driving force to optimize the utilization
of public resources.
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B. Sectoral and Institutional Context
3. In a rapidly changing economic environment, efficient project implementation plays a pivotal role
in achieving country’s developmental outcomes. In Bangladesh context, it is estimated that the annual
expenditure on public procurement, amounting to over $7 billion, accounts for about 24 percent of the
annual national budget and 70 percent of the annual development program (ADP) of the government.
However, project implementation vis-à-vis procurement delays and inadequate public confidence have
been identified as major contributors for slow utilization of development budget. Following upon the
recommendations of the Country Procurement Assessment Report 2002 (CPAR 2002), Bangladesh has
been making sustained efforts over the years to bring about a systemic change in its public procurement
environment. As part of this process, the government has been implementing a complete package of
reforms, with the support of two consecutive credits of the Bank- Public Procurement Reform Project-
PPRP (2002–2007), and PPRPII with its two additional financing (2007–2017). The country now has a good
foundation of public procurement system that include a well-functioning nodal agency- the Central
Procurement Technical Unit (CPTU)- to regulate procurement, procurement laws with rules and
associated documentations, an extensive capacity development program, a single electronic government
procurement (e-GP) portal for the entire country (www.eprocure.gov.bd), on-line performance
measurement mechanism, and a citizen engagement system supported by a comprehensive strategic and
behavioral change communication program. The CPTU (www.cptu.gov.bd) is a unit within the
Implementation Monitoring and Evaluation Division (IMED) of the Ministry of Planning (MOP).
4. The country is rapidly transforming its public procurement environment by shifting gradually from
traditional procurement practices to international standards through digitization of systems. The Public
Procurement Act 2006 has reference for the introduction of e-GP over time in the country. Subsequently,
with the vision for e-Government by 2021, the government has given high priority to information and
communication technology (ICT) based public service provisions. The “Perspective Plan of Bangladesh
2010-2021: Making Vision 2021 a Reality” specifically mentions about public procurement using the e-GP
system. To materialize the vision, the government has established a “Bangladesh Digital Task Force”,
chaired by the Prime Minister (PM). The PM made decision on October 21, 2015 that all public
procurement will be conducted through the e-GP system by 2016 and monitors the progress of e-GP
implementation regularly from her office, with the Principal Secretary in Chair.
5. The e-GP is one of the major project components in the ongoing PPRPII that is scheduled for
closing in June 2017. Bangladesh e-GP system is the most comprehensive one, starting with procurement
planning up to the final payment including contract management and performance measurement. It has
been embraced both by the public sector and the bidding community. With rapid progress, the e-GP is
contributing not only to enhance economy, efficiency, and transparency but also to savings of transaction
costs. As of now, about 90 percent of procurement in the four key sector agencies, using about 35 percent
of annual development budget, are going through the e-GP platform (roads, local government
engineering, water, and rural electric).
6. The key highlights of procurement reform outcomes/results thus far are as follows:
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a. Improved efficiency: Reduction of procurement delays with the award of 83 percent contracts
within the initial bid validity period in 2016 against only 10 percent in 2007;
b. Enhanced transparency: (i) Web publication of contract awards increased to 100 percent in
2016 from 10 percent in 2007; (ii) web publication of bid invitations enhanced to 100 percent
in 2016 from 70 percent in 2007;
c. Increased competition in e-GP: Average number of bids increased to seven in 2016 from four
in 2007;
d. Minimized collusion/coercion/bid rigging/fraud at decentralized level: (i) Significant reduction
in the frequency of newspaper reporting in 2016 as against 2010–2011; (ii) insignificant
number of complaints in e-GP in 2016 - less than 1 percent cases against the substantial
number of complaints in traditional tendering during 2010–2012;
e. Exponential growth of e-GP: (i) Number of registered bidders grown over 88-fold (2016:
26,000 and 2012: 294); (ii) number of bid invitations grown over 5,000 times (2016: 73,000
and 2012: 14); (iii) value of bid invitations grown over 2,600 fold (2016: US$8 billion and 2012:
US$3 million);
f. Increased self-sustainability of the e-GP system with its own revenues - Earning
forecast/actual. FY16: US$1.25 million/US$5 million; FY15: US$0.95 million/US$4 million;
FY14: US$0.55 million/US$1.8 million; and
g. Enhanced professionalization and capacity development: (i) National trainers- 2016: 60, 2007-
25; (ii) three-weeks trained staff - 2016: 7,406, 2007: 1,800; (iii) international procurement
accreditation with MCIPS (Member of the Chartered Institute of Procurement and Supply/
UK)- 2016: 116, 2012: 0; and (iv) Masters in procurement- 2016- 141, 2012- 0.
7. Though procurement reforms by the government has reshaped the landscape of procurement in
the last several years with a promising foundation, yet challenges remain particularly in maintaining
consistency in the procurement legal structure and keeping the momentum of the legacy of an efficient
and effective system. In recent times, there has been amendments to the public procurement law, some
of which are inconsistent with good procurement practices. Full benefits of the legislations combined with
IT-based solutions have seen to be relatively inconsistent across government and within individual
agencies. Actual enforcement of the law/rules is slower than expected. In practice, still there has been
substantial project implementation delays due to procurement related matters, such as, delays in large
value contract awards. There are challenges of inappropriate bidding practices in traditional bidding,
ineffective contract administration, and inadequate capacity for quality project implementation
monitoring. Also, the current structure of the nodal agency, CPTU, is constrained with its staffing to cope
with the monumental expansion of tasks in regulating procurement combined with growth of e-GP.
C. Higher Level Objectives to which the Project Contributes
8. The proposed project contributes to the Borrower’s higher-level objectives of expediting poverty
reduction, improving the investment climate, and accelerating private sector-led growth that are
identified as priority objectives in the Seventh Five Year Plan (FY16–FY20)—Accelerating Growth and
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Empowering Citizens of the government. Aligned with the government’s priorities, the Bank’s Country
Partnership Framework (CPF) 2016–2020 (Report No. 103723-BD, April 5, 2016) includes enhancing
growth and promoting inclusion as focus areas. Increasing effectiveness and efficiency in the use of public
resources through good procurement practices are seen as important factors for improving the
investment climate and accelerating the pace of poverty reduction. The expansion of e-GP system will
improve procurement related governance issues at local level providing greater transparency with
reduced discretionary authority for all sector operations in Bangladesh. By addressing the demand-side
issues of engaging beneficiaries/citizens, the project will help the public sector organizations to achieve
sector objectives by establishing a system of accountability and fairness in the execution of their
procurement activities. The project is thus well aligned with the CPF’s objectives. It is also aligned with
the WB’s core procurement function to work closely with clients to support the development of their
public procurement systems including innovations in procurement.
II. PROJECT DEVELOPMENT OBJECTIVES
A. PDO
9. The project development objective is to improve public procurement performance and enhance
capacity for implementation monitoring of development programs/projects.
B. Project Beneficiaries
10. The direct beneficiaries of the project are the public sector organizations and the private sector
entities in particular the bidding community (contactors, suppliers, consultants). Eventually, the
beneficiaries are the common citizens using public services covering all sectors across the country. The
project is designed to support priority areas for improving efficiency and transparency of public spending
in development projects, with specific reference to performance improvements in project
implementation and procurement. The direct benefits envisaged under the project would include faster
and better use of public resources, reduction of corruption and increased aid utilization capacity. The
project would improve public confidence and enhance the capacity of domestic construction and
consulting industries to participate more effectively in national and international procurement. The e-GP
will boost the trend of digital culture and create more job opportunities in the IT sector. All of these will
thus contribute to the creation of good investment climate in Bangladesh. In the longer term, all the above
would create a powerful force toward more transparent and accountable institutions, resulting in
accelerated economic growth and faster poverty reduction.
C. PDO-Level Results Indicators
11. For the purpose of the project, procurement performance relating to the PDO will be measured
considering the SPSOs covering about 900 key procuring organizations out of a total of about 1300 in the
country that will use e-GP. The 32 SPSOs have a combination of 28 new SPSOs (NSPSOs), and 4 previous
SPSOs (PSPSOs) under the ongoing PPRPII. Under the NSPSO, local government institutions within the
Local Government Division has been considered as one SPSO (Pourashava- 327; Upazila Parishad- 491;
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Zilla Parishad- 61; and City Corporations- 9 excluding Dhaka North City Corporation and Dhaka South City
Corporation). For the NSPSOs, the key focus will be on e-GP expansion (bid invitation to award) and
capacity development while for the PSPSOs it will be on the e-contract management. Concurrently, IMED
will enhance its capacity for on-line implementation monitoring of development programs/projects in the
SPSOs. The list of SPSOs is attached to Annex 1.
12. Key Results and Indicators: As part of performance improvement, the project will address
elements of efficiency, transparency, and accountability. The project is expected to achieve the following
key results at the project end (2022). The result indicators’ baseline and project end value is also provided:
a. NSPSOs procurement lead time reduced in national competitive bidding (NCB) using e-GP
system (invitation to contract award): 70 days (baseline 100 days);
b. NSPSOs invite bids in NCB through e-GP system: 75percent (baseline 2 percent);
c. Selected sub-districts engage citizen monitoring in contract implementation: 45 sub-districts

(baseline 4); and
d. SPSOs project implementation monitored on-line by IMED – 45 percent projects (baseline

0).
III. PROJECT DESCRIPTION
A. Project Components
13. The project has four components that are summarized below. The detailed project description is
provided in Annex 1.
a. Component 1: Restructuring CPTU and Institutionalizing e-GP (US$9 million)

b. Component 2: Enhancing Digitization of Public Procurement (US$28 million)
c. Component 3: Professionalizing Procurement and Citizen Engagement (US$18 million)
d. Component 4: Digitizing Project Implementation Monitoring (US$5 million)
Component 1: Restructuring CPTU and Institutionalizing e-GP
14. This component aims to restructure the CPTU in order to enhance its regulatory power and
institutionalize e-GP to function as a service provider with professional resources. Two major sub-
components are envisaged.
15. Component 1.1: Restructuring CPTU and Furthering Policy Reform: Presently, CPTU, the
procurement nodal agency of the government, is a unit of IMED created in 2002 under the Ministry of
Planning (MOP), with appropriate reference in the Public Procurement Act (PPA). CPTU is fully funded
from revenue budget of the Government. It has 25 officials and is headed by one Director General,
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supported by three Directors. Despite the challenging environment, CPTU, over the years, has
demonstrated commendable commitment in reforming the public procurement environment by
implementing two consecutive IDA credits with demonstrated outcomes. As per the Public Procurement
Act 2006 (PPA), CPTU has the mandate to regulate and monitor public procurement for about 1300
organizations. Given such a gigantic mandate combined with the recent exponential growth in the usage
of e-GP, CPTU is constrained with its capacity in terms of its current legal structure, limited staffing, and
inadequate analytical and research capability. In this context, the ongoing PPRPII commissioned a detailed
strategic framework study in 2016. Based on its recommendations, CPTU is expected to be transformed
into an Authority (also referred to as Public Procurement Authority) as a regulator of public procurement
by no later than 24 months after the effectiveness date of the project. Nevertheless, given the nature of its
transformation, further analysis and review will be undertaken during the early stage of implementation
of the project. The proposed Authority is likely to be an autonomous body, regulated by the decisions of
a Board of Governors, within the Ministry of Planning. To manage its day to day functions, the Authority
may have a management structure headed by an Executive Chairman.
16. Component 1.2: Institutionalizing e-GP: With the introduction of e-GP and subsequent roll-out,
a large part of its task has taken a paradigm shift and has become more complex and multi-dimensional
over time. CPTU is now performing various roles that are not compatible with each other, such as,
regulating public procurement, generating revenues, and operating and maintaining the e-GP system. For
efficient and sustainable functioning of e-GP, it requires appropriate institutionalization enabling it to act
as a service provider. Under the existing structure, even for e-GP, CPTU has to follow the entire
government procedures to create posts, fix salaries, recruit officials, and procure critical technology items.
Such lengthy procedure impacts CPTU’s efficiency in responding to the service standard and need of a
system like e-GP. This is not tuned with the nature and functions of the e-GP system that requires highly
specialized IT-based infrastructure and technical staff. Therefore, CPTU needs to institutionalize and
transform the e-GP operation self-sustainable by using a service provider model. There could be two
options to develop this service provider model: (i) operate e-GP under a corporate structure; or (ii)
outsource the e-GP operation to a third party. Under the first option, both the e-GP service provider and
the proposed authority would be functioning under the operational control of the Ministry of Planning.
With the outsourcing option, it would continue the operation and maintenance of the e-GP system as it
is now. For this option, CPTU will need to substantially strengthen its own technical staffing with adequate
capacity to monitor the outsourced vendor. These options will be further analyzed and reviewed during
the early stage of the project.
Component 2: Enhancing Digitization of Public Procurement
17. This component aims to enhance the scope of e-GP for all public sector organizations across the
country covering system as well as technical requirements including updating of e-GP modules with robust
contract management process, fully operationalizing two data centers, and business modeling. Two major
sub-components are as follows:
18. Component 2.1: Expansion of e-GP system: The expansion of e-GP system will have two
elements: physical expansion of the scope of e-GP and the enhancement of e-GP features. Under the first
element, the existing system will be expanded to all potential ministries covering other procuring
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organizations, beyond the existing four PSPSOs where e-GP is already fully functional. Accordingly, the
new data center with enhanced capacity covering the entire country’s need is in place. While all 1300
PSOs will use the e-GP system, the project will measure e-GP expansion (bid invitation to contract award)
for about 900 procuring organizations, under the identified 28 NSPSOs, given their relatively high volume
of procurement. The second element of enhancement of e-GP system will include new features and its
integration with other systems over time. For example, modules for suppliers’ database and performance
rating, international competitive bidding, framework agreement, electronic catalogue, reverse auction,
and consulting services. Also, the e-contract management module including payments will be updated as
described in the next section. To interface with other e-Government system, the users’ identifications
profiles will be linked to the national personal identification system, including possible tax identification
system. The interface with other government system will be explored gradually. The project will provide
logistic, technical and implementation support for the management, operation, and maintenance of the
e-GP system.
19. Component 2.2: Implementation of Contract Management: Currently, under the ongoing PPRPII,
the e-GP system is in full use up to the contract award by the PSPSOs (RHD, LGED, BWDB, and BREB). The
proposed project will make especial efforts to upgrade the features of the existing contract management
module including geotagging, asset tracking, online payment, critical activity- path management, and
open contracting data standard. Also, parameters of contract performance, including sustainable
procurement KPI’s (economic, social and environmental) will be included. Taking advantage of the
complete e-GP system which is an end-to-end solution (procurement planning up to the final payment),
the PSPSOs will then focus to implement this updated e-contract management module. It is expected that
within the project period, the PSPOs will fully implement e-contract management. Necessary training to
develop technical skills will also be included. Subsequently, the PSPSOs will take lead in providing training
to the other organizations (NSPSOs) in introducing the contract management module. A separate citizen
web portal including open contracting data will be developed and managed by CPTU. The contract
management module will have provision to integrate with the citizen web portal to provide real time
contract data.
Component 3: Professionalizing Procurement and Citizen Engagement
20. This component aims to improve procurement management capacity of the SPSOs, both in terms
of public procurement practices and the use of e-GP. Also, the bidding community will be included as part
of the capacity enhancement program. The sub-component will encourage creation of knowledge base,
analytical tasks, and research and development. Concurrently, it will attempt to create a citizen
monitoring mechanism of local level contracts with specific reference to rural roads, education, and health
service deliveries. Five subcomponents are as follows:
21. Component 3.1: Improving Procurement Management of SPSOs, IMED and CPTU: This
subcomponent would ensure that each SPSOs will have a minimum level of capacity to deal with
procurement activities satisfactorily in accordance with the provisions of the Public Procurement Act and
international good procurement practices. A core group of staff within the SPSOs will be developed and
provided with rigorous training for skill enhancement to make them capable of handling complex
procurement issues. The group is expected to form a sustainable core procurement unit within SPSOs to
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handle the procurement process in a more professional manner and play the role of knowledge bank for
the respective SPSO.
22. Component 3.2: Capacity Building and Professionalization of Procurement: This subcomponent
aims at professionalizing procurement with greater institutionalization. CPTU will have, among others,
mandate to sustain the capacity development initiatives for public procurement, and will also possess the
right to revoke/down grade the professional accreditation, if necessary. Necessary accreditation
framework and empowerment will be articulated in the amendment of PPA and the proposed Authority
law. Activities will include: (i) developing and implementing an accreditation program with different tiers
of professional certification; and (ii) enhancing capacity of SPSOs and other sector agencies by designing
and implementing a comprehensive capacity development program. To allow the participants to practice
procurement as a profession, the tier of professionals will be as follows: Tier-1: Public Procurement
Associate; Tier-2: Public Procurement Professional; Tier-3: Advanced Public Procurement Professional;
and Tier-4: Fellow Public Procurement Professional. Besides, there will be a separate stream of
specialization for procurement data analytics, named as, Procurement Data Specialist. The program will
cover various long and short procurement training courses for targeted audience. It is envisaged that the
main procurement training and professionalization will be materialized through a twinning arrangement
between Engineering Staff College Bangladesh (ESCB) and internationally reputed training institution(s).
The core competence course for international procurement accreditation program will continue.
23. Component 3.3: Disclosure of Public Procurement Information in Open Data Format: The
expected outcome of this sub-component is improved transparency with better information to the
citizens in an open and user-friendly formats. Popularly known as “Open Contracting”- this approach
promotes collaborative and constructive engagement between governments, private sector, civil society,
and development partners. It refers to norms and practices promoting improved disclosure of contracting
data and information including planning, bidding, contract award, implementation of contract,
performance and asset tracking. In Bangladesh’s context, as an integrated part of the e-GP system, the
government would disclose relevant information concerning public contracting including grievances and
remedial action taken by the government or the contractors. It is expected to be developed following the
Open Contracting Data Standard (OCDS). In order to facilitate access to, and use of, the disclosed
information, the system will feature a public-facing web portal for disclosure of contracting data and
information.
24. Component 3.4: Citizen Engagement: This sub-component aims to promote transparency,
accountability, and efficiency in public spending by enabling multi-stakeholder engagement. Building on
the experience of PPRPII, Citizen Engagement (CE) at various levels – both local and national -- will be
enhanced and institutionalized throughout the country. Specific attention would be provided in areas of
gender sensitivity and mainstreaming of public dialogue and beneficiary feedback using traditional and
innovative new ICT tools/techniques. With the support of a comprehensive strategic communication
program, the CE goals will be attained through: (i) Public Private Stakeholder Committee (PPSC) dialogue,
(ii) Government-Tenderers’ Forum (GTF), and (iii) Site-Specific Citizen Monitoring (SSCM) activities. A
citizens’ portal for monitoring public spending will be explored to integrate innovative ICT tools in the
form of a monitoring and feedback portal that would help promote dialogue to ensure transparency and
accountability in public spending vis-à-vis better service delivery.
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25. Component 3.5: Strategic Communication: This sub-component will strengthen the systems and
functions of different forms of strategic and stakeholder engagement communication under the project
by adopting a comprehensive Strategic Communication Program (SCP). The SCP will focus on a set of
objectives primarily to promote behavior change, public awareness and knowledge sharing, advocacy, and
key stakeholder engagement. These would include communication support for and around the CPTU or
future Authority, expansion of e-GP, open contracting efforts and two-way communication among multi-
stakeholders including procuring entities, line ministries, oversight agencies, businesses, media,
academia, beneficiaries. Activities would include: social media campaign, engagement of beneficiary
groups, public debates, education program, awareness campaign, e-GP orientation for different
stakeholder groups including media and CSOs, media award and fellowship, collaboration with
Information Commission. It will involve the establishment of feedback loop mechanisms to ensure that
government and contractors act upon the feedback received from the different stakeholders to improve
procurement performance.
Component 4: Digitizing Project Implementation Monitoring
26. This component aims to strengthen implementation monitoring of development

programs/projects at national level using digital technology. Two sub-components are as follows.
27. Component 4.1: Enhancing Project Management Information System: At the national level,
program/project implementation monitoring and evaluation is the responsibility of IMED of the Ministry
of Planning. Currently, this is done mostly in manual way with limited use of IT-based on-line framework,
not consistent with the rapidly changing huge development programs’ need of the country. Also, the
methodology to monitor and review implementation program is lagging real time benefits to the
implementing ministries. Recognizing the deficiencies, the GoB envisages streamlining the process and
making it on-line through a single platform connecting all public sector organization with the state-of-the
art technology. The project management information system (PMIS) captures only financial progress.
IMED wants to expand the capacity of PMIS to collect and monitor project implementation data as well
as financial. The PMIS will be enhanced for connecting digitally all ministries and implementing agencies
that will capture not only financial but also physical progress including the use of geo-tagging at field level.
The PMIS will collect contract management data from the CPTU’s e-GP system.
28. Component 4.2: Reinforcing Monitoring Skills and Data Analytics: The project will be looking to
improve the overall capacity for monitoring and evaluating projects through the digitization of IMED
activities and the collection of information from the e-GP system, contract management system and other
electronic sources and systems. It will enhance the capacity development of their resources to ensure
they have the skills and tools to effectively monitor and evaluate projects including guidelines, data
analytics, and reporting. Currently, IMED has over 1300 projects including the ten fast-track projects to
monitor and evaluate with limited resources and tools available.
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B. Project Cost and Financing
29. The project cost and financing arrangements is described below. All figures are in US$ million. The
counterpart fund of US$5 million is joint co-financing for part of the eligible incremental operating cost
and O&M for the e-GP system as mentioned in Annex 2. The fuel, honorarium, and other expenditures
excluded by the incremental operating costs definition would be financed from GoB contributions. Taxes
are estimated to be less than 15 percent.
Table: Project cost and financing

Project Components Project IDA Counterpart
Cost Financing Funding
Restructuring CPTU to an Authority and e-GP Corporate 9.00 6.00 3.00
Enhancing Digitization of Public Procurement 28.00 26.00 2.00
Professionalizing Procurement and Citizen Engagement 18.00 18.00 -
Digitizing Project Implementation Monitoring 5.00 5.00 -
Total cost 60.00 55.00 5.00
Total Financing Required 60.00 55.00 5.00
C. Lessons Learned and Reflected in the Project Design
30. The proposed operation Digitization of Implementation Monitoring and Public Procurement
Project (DIMAPPP) is built on the success of the previous two operations. The key lessons learned from
the previous projects are as follows: continuity of high level political commitment regardless of the party
in power especially for the introduction of e-GP expedites its implementation; success of reform depends
not only on technical solutions but largely on the approach taken to manage the stakeholders and their
behaviors; involving key stakeholders both from the public and the private sector contributed positively;
using beneficiaries’ lens is critical in reform; applying IT innovations and social media are tremendously
powerful tool. Other lessons concerning challenges include: inefficient manual data collection process;
weak analytical ability of CPTU; inadequate staffing skills with specific reference to IT skills; existing
bureaucratic process; institutional capacity constraints; allow large sector organizations to play higher role
given their successful implementation of e-GP; bidders fast training need; focus more on the demand side
of reform through participation of citizens/beneficiary groups/stakeholders in the monitoring of
procurement process and outcomes; more use of Right to Information for disclosing procurement
specifications. While large sector organizations are rapidly progressing with e-GP, there are numerous
other public sector organizations that need to take advantage of actual use of the e-GP platform.
31. The government is prioritizing the expansion of e-GP across the entire public procurement sector
in the country within the next couple of years, including enhanced on-line performance measurement,
contract management, and framework agreement. Concurrently, it plans to enhance and strengthen the
project implementation monitoring capability of the national agency (IMED) using digital technology.
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IV. IMPLEMENTATION
A. Institutional and Implementation Arrangements
32. Overall Project Implementation: IMED through CPTU will continue to be responsible for overall
implementation of the project (referred to as IMED/CPTU). The Director General (DG), CPTU will manage
all project activities as the Project Director, assisted by 4 Component Directors, one for each component.
IMED/CPTU will carry out this task in collaboration with the 32 SPSOs who are the actual procuring
organizations (4 PSPSOs and 28 NSPSOs). In case of CPTU the relevant three Directors will be designated
as the Component Directors. For IMED part (Component 4), the Director responsible for coordinating
overall activities including MIS will preferably be the Component Director. In consideration of the
geographical spreading of most local government institutions across the country and previous proven
experience of implementing e-GP at decentralized level, LGED, through a Memorandum of Understanding
(MOU) with the CPTU, will implement the expansion of the scope of e-GP to these institutions. Local
Government Division will issue necessary advice.
33. It is expected that CPTU will be transformed to an Authority with greater autonomy and
strengthened structure towards the end of second year of the project. Once the Authority is formed, most
of the existing officials/staff of CPTU are likely to be absorbed in it. At that time, CPTU will cease to exist
and the implementation responsibility will be shifted to the proposed Authority. Until the Authority is
formed, for managing the e-GP functions, CPTU will be further strengthened with a set of additional highly
skilled IT professionals in a way that it can efficiently monitor the functions of the existing
outsourced/third party in managing the e-GP operations and concurrently develop necessary skills to
manage the system of its own.
34. There will be a Project Steering Committee (PSC), headed by the IMED Secretary, with heads of
the SPSOs or their authorized representatives and members of relevant ministries/organizations as its
member. PSC will oversee the progress and provide implementation policy guidance on a quarterly basis.
Besides, there will be a Project Coordination Team (PCT), headed by the Director General of CPTU, and
will comprise officials from CPTU, IMED, and one Project Monitoring Coordinator (PMC) from each SPSO
and members of relevant ministries/organizations. The PCT will meet every month to coordinate all
project activities and report to PSC in its function. Each SPSOs will have a Project Implementation Team
(PIT), headed by the Project Monitoring Coordinator (PMC) and would be authorized to oversee the entire
project operation including monitoring and evaluation for that particular SPSOs. The PIT would comprise
of officials on the basis of their involvement in procurement functions of the respective SPSOs.
B. Results Monitoring and Evaluation
35. A robust framework for project monitoring and evaluation (M&E) will be put in place. Project
outcomes/results will be measured using the result framework indicators, both at the PDO and
intermediate outcome level. For M&E, the CPTU will use the technical support of a team of consultant
(firm) who has proven track record of conducting independent M&E work. While a substantial part of the
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data will be obtained from the e-GP system, the other data concerning professionalization, capacity
development, citizen engagement will need to be collected from the field. The consultant will prepare
semi-annual reports on the overall project M&E including progress on the results indicators for review by
the Bank. Results monitoring in DIMAPP covers: (i) procurement performance at the SPSOs; (ii) capacity
development by the NSPSOs; (iii) e-contract management by the SPSOs; (iv) project implementation
monitoring by IMED; and (v) citizens monitoring of public procurement at designated areas.
C. Sustainability
36. The design of the proposed DIMAPPP has made a strategic choice for further strengthening the
institutional framework of CPTU in consideration of the rapidly changing procurement needs of the
country. Concurrently, the project would strengthen skill-base and capacity of the SPSOs for quality
procurement management with latest IT-based tools and techniques. Both CPTU and SPSOs’ officials are
fully funded from revenue budget. The new e-GP system is also generating revenues that is increasingly
becoming self-sustainable. Unlike many other reforms, all procurement policy and institutional reform
actions made so far in the last few years have been institutionalized and sustained within the country
context.
37. The reforms to be implemented during the project period— transforming CPTU to an Authority,
enhancing e-GP across the country, professionalizing procurement and citizen engagement, and digitizing
development projects implementation monitoring— constitute permanent improvements to the present
regime. Improved procurement performance with better implementation monitoring of development
projects would help contain misappropriation of public resources, enhance private sector confidence, and
contribute to improving the investment climate. These results would help ensure achieving the PDO and
sustaining project outcome.
D. Role of Partners
38. The Bank has a comparative advantage in supporting the proposed project in light of its consistent
engagement in the area of procurement for over a decade that has been contributing in bringing about a
transformational change in the public procurement environment in the country. It has always taken the
lead role in embedding good procurement practices into the GOB’s program of assistance. Most of the
key development partners in the country recognized the leading role of the Bank in this area (e.g., ADB,
DFID, JICA, EU). With the Bank’s assistance, now the country has its own harmonized procurement
procedures that have mostly been accepted for local procurement by the key development partners. As
part of the local consultative group (LCG) activities, the World Bank (the Bank) has been leading the sub-
group in procurement. The Bank’s support is therefore critical to continue with the reform process, and
the proposed DIMAPP project is expected to serve as an anchor for the Bank and other operations in
Bangladesh. Though yet to be firmed up, DFID has shown some interest in the areas of citizen engagement
monitoring. The IMED component of the project will be coordinated with ADB’s assistance in this area.
Further value addition includes the following:
a. As the government is making use of e-GP mandatory regardless of the source of financing, the
key development partners are contributing through dialogues and comments on the public
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procurement framework in specific reference to governance;
b. At the regional and international level, the knowledge, ideas and good practices shared by
other partners are directly contributing in improving the procurement framework, specifically
for on-line contract management, framework agreements, e-reverse auction; and
c. Reaching out to private sector and civil society adds value to incorporate the demands for
good governance aspects in the procurement framework.
V. KEY RISKS
A. Overall Risk Rating and Explanation of Key Risks
39. At this stage, the overall project risk rating is “Substantial”, with four major risks that could impact
the achievement of the PDO: institutional capacity for implementation and sustainability, fiduciary,
stakeholders, and other. The explanations of key risk elements that are rated “Substantial” are
summarized below:
40. Institutional capacity for implementation and sustainability: This is considered as a substantial
risk because of the expected change in the implementation arrangement by no later than 24 months after
the effectiveness date of the project when CPTU is likely to be transformed into an Authority. Most existing
staff of the CPTU are likely to be absorbed in the proposed Authority when it is established. In addition,
the new Authority will be strengthened with skilled staffing in adequate number. Nevertheless, until those
arrangements are in place with full strength and fully functional, there remains a risk. The new Authority
is envisaged to be responsible for the implementation of the project once it is established. To mitigate the
risk, a number of upfront indicators are agreed including the organizational structure of the proposed
Authority and its key positions. The Government will continue to fund the CPTU/Authority from revenue
budget, and the Authority will have enough autonomy to recruit skilled staff from the market. Further
associated risk is described under “Other” below.
41. Fiduciary: There are four major contracts. Although CPTU has previous experience of managing
such contracts, given the complexity and nature of contracting, it is likely to face challenges. Concurrently,
LGED, which will manage procurement for all local government institutions (900 procuring entities), may
face challenges mainly due to the large number of procuring entities though it has good experience of
implementing Bank funded projects. On the financial management side, CPTU’s capacity needs substantial
strengthening in accounting and financial reporting. A set of technical support activities have been
incorporated in the project that will assist CPTU and LGED in managing the procurement and FM
associated risks. In addition, an Enterprise Resource Planning (ERP) system is likely to be introduced to
automate most of the financial management functions.
42. Stakeholders: The e-GP expansion involves cross cutting stakeholders: policy makers, regulatory
body like CPTU, public procuring organizations, bidding community, private sector, and the beneficiaries.
It will be challenging to manage all stakeholders’ expectations although by now the e-GP agenda has
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created good ownership at the policy level, key procuring organizations and associated bidding
community. The challenge lies to bring other procuring organizations and part of the private sector on the
same pace. To mitigate the risk, the ongoing PPRPII’s Public-Private Stakeholders Committee and
Government-Tenderers‘ Forum combined with citizen engagement activities are expected to play a critical
role in building a constituency for furthering the reform agenda with increased use of innovative IT-based
tools. Both of these elements will continue in the proposed project with enhanced focus on citizen
engagement and strategic communications with extensive consultations and workshops.
43. Other: This reform is considered highly charged and challenging in terms of its mandate in
changing the procurement environment in the country. The risk is associated with the need for passing a
separate law to allow creation of the proposed Authority and some legal amendments to the existing
Public Procurement Act. The e-GP agenda enjoys high commitment from the highest authority, yet it has
associated political economy context. To manage the risk, there have been extensive consultations about
the in-depth strategic framework study that has been carried out for the restructuring of CPTU. Four major
workshops were held with the stakeholders involving all key ministries including the Cabinet Division and
Prime Minister’s Office. The proposed law for the new Authority is at the preparation stage.
VI. APPRAISAL SUMMARY
A. Economic and Financial Analysis
44. The direct benefits envisaged under the project would include faster and efficient use of public
resources with increased transparency, contributing to the reduction of procurement delays with
improved contract management. The project would also enhance the capacity of the domestic
construction and consulting industries to participate more effectively in national and international
procurement. In the longer term, all the above would create a powerful force toward more transparent
and accountable institutions, resulting in accelerated economic growth and faster poverty reduction.
Furthermore, to gauge the impact of the proposed interventions, each SPSOs will make use of the already
developed procurement performance measurement systems with indicators to monitor the performance
of target agencies.
45. In view of the nature of the project, since benefits cannot be quantified in monetary terms, no
calculation of economic rate of return is attempted. However, the PPRPII was designed with declined
financing for the e-GP system during the project period so that the e-GP system can run and operate from
its own resources at project end. Currently, the system is generating more revenues than the business
model estimated target and, thus is becoming self-sustainable. The result shows that the e-GP system
earned over US$4 million in FY15 and over US$5 million in FY16. Starting January 2017, the GOB is fully
financing the e-GP system management and operation from its earned revenues. Under the proposed
project, e-GP will continue to increase it’s earning from processing thousands of system transactions,
bidders registration, and sale of bidding documents. From 2017 to 2022, CPTU forecasts growth of
registered bidders from 26,000 to over 100,000, with expected revenue generation of US$10 million
annually.
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B. Technical
46. From the technical view point, the design is robust with inputs from a set of recently completed
in-depth studies and reviews. CPTU has the foundation of public procurement with clearly laid out
legislations and rules (www.cptu.gov.bd) including a fully functional e-GP system (www.eprocure.gov.bd).
Building upon this framework, in designing the project, specific attention is given as regards: (i)
developing in-country capability to deliver quality procurement training programs in an efficient manner
with twinning arrangement of local institutes with international organizations; (ii) strengthening
procurement monitoring at selected sector organizations by operationalizing procurement units in each
of them with skilled professionals (5-10 persons) who will be recognized as the knowledge bank in those
organization to help achieve quality procurement outcomes; and (iii) sensitizing target groups of both the
public and private sector including bidding community to acquire and apply procurement knowledge in
their work. To strengthen objectivity, the citizen engagement subcomponent is strengthened to play
effective roles at the grass root level.
C. Financial Management
47. Based on the current assessment, from an overall fiduciary perspective, the risk rating is
“Substantial” (combined financial management and procurement). FM Risk is rated substantial mainly
because of its decentralized operations and the inadequacy in accounting and financial reporting of CPTU
in absence of a robust electronic financial management system. Implementation of an ERP system to
automate most part of the financial management function is planned under the project. CPTU has
experience in implementing Bank-financed project and the FM arrangements would largely be similar to
the existing PPRP II project. There will be one designated account opened and managed by the CPTU for
the whole project. An operational account will also be opened and managed by LGED under the
designated account to pay for the expenditures to be incurred at the LGED level. LGED will maintain
satisfactory financial management system including book of accounts and all evidences in support of the
expenses to be incurred from this account. The project will follow report based disbursements in the form
of interim unaudited financial reports which will consolidate all expenses including LGED. The external
audit of the project will continue to be audited by the Foreign Aided Project Audit Directorate under C&AG
of Bangladesh. Finally, the applicable government procedures, specifically Government Financial Rules
[GFRs] will be applicable.
D. Procurement
48. The project will follow the Bank’s “Procurement Regulations for IPF Borrowers”, dated July 1, 2016
(Procurement Regulations). IMED/CPTU is the implementing agency that will manage all procurements,
excepting the local government institutions (LGIs). LGED, through a Memorandum of Understanding with
the CPTU, will manage the procurement of LGIs, given its wide networking at decentralized level and
experience in procurement. The Project Procurement Strategy for Development (PPSD) has been
prepared including an initial Procurement Plan. Recognizing the overall fiduciary environment, the
procurement specific risk rating is “Substantial” (similar to overall fiduciary rating). Most procurement
involve consultancy, followed by IT equipment and goods. Though CPTU has wide experience of over 14
years in implementing two IDA financed projects, with no major issues, it may face challenges in sourcing
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and implementing the three major consultancy packages. To mitigate procurement associated risks, a full
time procurement consultant will assist CPTU in conducting its procurement. Similarly, LGED will also be
assisted by a procurement consultant. A set of detailed mitigation measures have been agreed that is
explained in Annex 2.
E. Social (including Safeguards)
49. Social and Safeguards: The project does not involve any land acquisition or civil construction. As
such there is no issue with displacement of people from public or private lands, impact on livelihoods on
people or communities. The Bank’s OP 4.12 Involuntary Resettlement, or OP 4.10 Indigenous Peoples is
not triggered as the project will have no direct impact on small ethnic groups.
50. The project has a dedicated citizen engagement sub-component involving the beneficiaries. About
50 upazillas have been identified where citizens monitoring of public procurement will be implemented.
This citizen engagement approach is expected to generate deep interest in the community to take the
reforms to the grassroots level and concurrently provide increased voice to rural women/mothers for
matters like textbook delivery, distribution of medicines, rural connections. Also, in training, there will be
specific criteria to improve participation of women candidates and this will be measured through
intermediate indicator. Furthermore, the prospective enhancement of e-GP across all public sector
organizations is likely to create opportunities for the computer-literate female workforce.
51. Gender: The project includes gender perspectives. The citizen engagement groups will be formed
with appropriate gender balance, emphasizing on empowering rural women/mothers to raise their voices
for matters like primary school textbook delivery, distribution of medicines, and rural connections. The
extensive use of e-GP is also likely to create opportunities for the computer-literate female workforce.
Furthermore, various training programs will have provision to consider gender aspects.
F. Environment (including Safeguards)
52. The project activities are largely technical assistance in nature and includes policy support,
capacity building and software system upgrading and will mainly procurer IT system and office
equipment/goods for digitization of government's project/program implementation monitoring and
public procurement. The project will procure equipment needed mainly for e-GP and computerization
(desktop, laptop, servers, office equipment). The project is located at Dhaka and does not include any
construction/reconstruction/extension of infrastructure. As such, no environmental impact has been
envisaged and the project is considered as “Category C”. However, the project activities are a continuation
of the previous project. It may be necessary to replace the existing computer related equipment. As a
precautionary measure an environmental code of practice (ECoP) including E-waste disposal plan and
occupational health and safety issues related to E-waste handling has been added to the Annex 2. The
Project Director will be responsible to ensure that the environmental clauses is included in bidding
document and the ECoP for e-waste disposal is duly followed for the disposal.
Climate and Disaster Risk
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53. The climate change and disaster risk effects on the project have been screened using climate
screening tool. All its elements were considered, and the overall climate risk is rated Low, with no
significant impact.
G. Other Safeguard Policies
54. Not Applicable.
H. World Bank Grievance Redress
55. Communities and individuals who believe that they are adversely affected by the World Bank (WB)
supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s
Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to
address project-related concerns. Project affected communities and individuals may submit their complaint to
the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result
of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after
concerns have been brought directly to the Bank's attention, and Bank Management has been given an
opportunity to respond. For information on how to submit complaints to the World Bank’s corporate
Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects-operations/products-
and-services/grievance-redress-service. For information on how to submit complaints to the World Bank
Inspection Panel, please visit www.inspectionpanel.org.
.
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VII. RESULTS FRAMEWORK AND MONITORING
Results Framework
COUNTRY : Bangladesh
Digitizing Implementation Monitoring and Public Procurement Project
Project Development Objectives
The project development objective is to improve public procurement performance and enhance capacity for implementation monitoring of development
programs/projects.
Project Development Objective Indicators
Unit of Responsibility for

Indicator Name Core Baseline End Target Frequency Data Source/Methodology
Measure Data Collection
Name: NSPSOs procurement Days 100.00 70.00 Semi-annual Progress Report IMED/ CPTU
lead time reduced in NCB
using e-GP system (invitation
to contract award)
Description:
Name: NSPSOs invite bids in Percentage 2.00 75.00 Semi-annual e-GP System Report IMED/CPTU
National Competitive Bidding
(NCB) through e-GP system
Description:
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Name: Selected sub-districts Number 4.00 45.00 Semi-annual Consultant's Report IMED/ CPTU
engage citizen monitoring in
contract implementatiion
Description:
Name: SPSOs’ projects Percentage 0.00 45.00 Semi-annual Progress Report IMED/CPTU
implementation monitored
on-line by IMED
Description:
Intermediate Results Indicators

Name: Draft bill establishing Yes/No N Y Semi-annual Progress Report IMED

the proposed Authority and
amending the PPA 2006
placed in Parliament
Description:
Name: Government Yes/No N Y Semi-annual Progress Report MOPA/ IMED
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approved organogram with
staffing of the proposed
Authority
Description:
Name: Procuring entities of Percentage 5.00 80.00 Semi-annual Consultant Report IMED/ CPTU
NSPSOs have at least one
trained/certified
procurement professional
Description:
Name: PSPSOs' (RHD, LGED, Percentage 0.00 50.00 Semi-annual e-GP System Report IMED/ CPTU
BWDB, and BREB) contract
completion rate within the
original time schedule
Description:
Name: Core procurement Percentage 0.00 80.00 Semi-annual Capacity Development IMED/ CPTU
unit operationalized in each Consultant Report
of the selected public sector
organizations (SPSOs);
Description:
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Name: Procurement Percentage 0.00 70.00 Semi-annual Capacity Development IMED/ CPTU
professionalization/accredita Consultant Report
tion certificates issued
Description:
Name: e-contract magement Yes/No N Y Semi-annual Progress Report IMED/ CPTU

module in e-GP system
updated
Description:
Name: Open contracting Yes/No N Y Semi-annual Progress Report IMED/ CPTU

module developed and
made functional
Description:
Name: Citizen portal Yes/No N Y Semi-annual Progress Report IMED/ CPTU

developed and made
functional
Description:
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Name: IMED’s on-line Yes/No N Y Semi-annual Progress Report IMED/ CPTU

project implementation
monitoring module
developed
Description:
Name: Disposal policy Yes/No N Y Semi-annual Progress Report IMED/ CPTU

drafted and issued
Description:
Name: Authority's officials in Percentage 0.00 70.00 Semi-annual Progress Report Authority
place compared with the
staffing plan
Description:
Name: Officials trained in Percentage 0.00 75.00 Semi-annual Progress Report Consultant/ CPTU
reference to the training
plan
Female officials level of Percentage 0.00 20.00 Semi-annual Progress Report Consultant/ CPTU
participation in training
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Description:
Name: e-GP system Percentage 0.00 75.00 Semi-annual Progress Report CPTU/ Authority
generated procurement
performance reports of
SPSOs published in CPTU/
Authority's website
Description:
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Target Values
Project Development Objective Indicators FY
Indicator Name Baseline YR1 YR2 YR3 YR4 YR5 End Target
NSPSOs procurement lead time reduced

in NCB using e-GP system (invitation to 100.00 95.00 90.00 85.00 80.00 70.00 70.00
contract award)
NSPSOs invite bids in National

Competitive Bidding (NCB) through e-GP 2.00 2.00 15.00 30.00 50.00 75.00 75.00
system
Selected sub-districts engage citizen

4.00 4.00 5.00 15.00 30.00 45.00 45.00
monitoring in contract implementatiion
SPSOs’ projects implementation

0.00 0.00 5.00 10.00 25.00 45.00 45.00
monitored on-line by IMED
Intermediate Results Indicators FY
Draft bill establishing the proposed

Authority and amending the PPA 2006 N N Y Y
placed in Parliament
Government approved organogram with

N N Y Y
staffing of the proposed Authority
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Procuring entities of NSPSOs have at least

one trained/certified procurement 5.00 5.00 10.00 30.00 60.00 80.00 80.00
professional
PSPSOs' (RHD, LGED, BWDB, and BREB)

contract completion rate within the 0.00 0.00 0.00 10.00 30.00 50.00 50.00
original time schedule
Core procurement unit operationalized in

each of the selected public sector 0.00 0.00 5.00 20.00 50.00 80.00 80.00
organizations (SPSOs);
Procurement
professionalization/accreditation 0.00 0.00 5.00 20.00 40.00 70.00 70.00
certificates issued
e-contract magement module in e-GP

N N Y Y
system updated
Open contracting module developed and

N N N Y Y
made functional
Citizen portal developed and made

N N N Y Y
functional
IMED’s on-line project implementation

N N Y Y
monitoring module developed
Disposal policy drafted and issued N N N Y Y
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Authority's officials in place compared

0.00 0.00 5.00 20.00 40.00 70.00 70.00
with the staffing plan
Officials trained in reference to the

0.00 0.00 10.00 30.00 50.00 75.00 75.00
training plan
Female officials level of participation in

0.00 0.00 5.00 10.00 15.00 20.00 20.00
training
e-GP system generated procurement

performance reports of SPSOs published 0.00 0.00 10.00 25.00 45.00 75.00 75.00
in CPTU/ Authority's website
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ANNEX 1: DETAILED PROJECT DESCRIPTION
Component 1:
Restructuring CPTU and Institutionalizing e-GP
1. This component aims to restructure the CPTU in order to enhance its regulatory power and
institutionalize e-GP to function as a service provider with professional resources. Two major sub-
components are envisaged.
2. Component 1.1: Restructuring CPTU and Furthering Policy Reform: Presently, CPTU, the
procurement nodal agency of the government, is a unit of IMED created in 2002 under the Ministry of
Planning (MOP), with appropriate reference in the Public Procurement Act (PPA). CPTU is fully funded
from revenue budget of the Government. It has 25 officials and is headed by one Director General,
supported by three Directors. Despite the challenging environment, CPTU, over the years, has
demonstrated commendable commitment in reforming the public procurement environment by
implementing two consecutive IDA credits with demonstrated outcomes. As per the Public Procurement
Act 2006 (PPA), CPTU has the mandate to regulate and monitor public procurement for about 1300
organizations. Given such a gigantic mandate combined with the recent exponential growth of e-GP
implementation, CPTU is constrained with its capacity in terms of its current legal structure, limited
staffing, and inadequate analytical and research capability. In this context, under the ongoing PPRPII, a
detailed strategic framework study was undertaken. Based on its recommendations, CPTU is expected to
be transformed into an Authority as a regulator of public procurement by no later than 24 months after
the effectiveness date of the project. Nevertheless, given the nature of its transformation, further analysis
and review will be undertaken during the earlier stage of the implementation of the project.
3. The key constraints are as follows:
a. Inadequate structure and autonomy of the CPTU to function effectively as a regulator and
discharge the assigned responsibilities in terms of a rapidly changing and evolving
procurement environment;
b. Staffing constraint to manage the day to day tasks of regulations, documentations, e-GP,
capacity development, monitoring and managing global networking;
c. Limited in-house technical specialist skills to analyze, deal, and provide with complex and
sensitive procurement issues which is now mostly dependent on consultant’s support;
d. Lack of in-house analytical and research capability to generate and accumulate data from the
public procurement system in order to guide/influence/improve policy adjustments, strategy
formulation, work force development;
e. Limited or non-existent incentive structure and/or opportunity for career progression.
4. In order to address the preceding constraints, CPTU is expected to be transformed into an
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Authority, with appropriate autonomy, as a regulator of public procurement legal framework of

Bangladesh. The Authority, that is expected to be in place by no later than 24 months after the effectiveness
date of the project, will have the policies and resources to oversee the operations of the e-GP to ensure
they are fully compliant with the operations and Service Level Agreement (SLA) requirements of the
Authority. Aligned with similar organizations in home and abroad, the Authority will have necessary power
as wells as resources to efficiently manage regulations of public procurement and e-GP. It will have an
expanded structure in terms of organogram and staffing with necessary skills to cover all required fields
of expertise from regulatory to highly technical. Emphasize will be given to substantially strengthen IT in
specific reference to e-GP, analytical, and research capability to guide and improve policy adjustments,
strategy formulation, and work force development. For e-GP, this would include functional audits, annual
IT system audit, business audits, and security audits of the system. It will be responsible for continued
development and implementation of the procurement laws, capacity development with
professionalization, monitoring and review of the public procurement practices, furthering policy reforms
in light of the evolving procurement innovations.
5. As a basis to this transformation, initially an outline strategic framework was developed by the
Government in August 2015. Subsequently, a detailed strategic framework study including functional
reviews and options has been carried out in 2016-2017, followed by series of consultation workshops
involving all key ministry senior civil servants and other stakeholders including university/academia,
private sector, civil society, and development partners (WB, ADB, DFID). The key purpose was to ensure
proper buy-in of the proposed restructuring and to ensure smooth processing of the proposal down the
road. The study provides recommendations for the creation of an autonomous Authority for regulating
public procurement.
6. Unlike the existing CPTU, the proposed Authority will be an autonomous body, created by law and
regulated by the decisions of a Board of Governors. For day to day management of the Authority, it is
likely to have an Executive Chairman, assisted by few Directors. CPTU will cease to exist once the Authority
is established as it will include all existing functions of the CPTU, with added provisions. Most officials of
the existing CPTU will be absorbed into the Authority. Necessary amendments will also be made in the
existing PPA that has reference to CPTU. A draft law is under preparation for creating the Authority.
7. Concurrently the subcomponent will look into the recent world-wide development in the field of
public procurement where innovations and solutions are playing predominant role in the efficient use of
resources. Taking into account the sustainable development goals of the United Nations, there is a need
for moving towards more advanced concepts in the PPA/PPR like sustainable procurement framework
with rated criteria, most economic and advantageous tender, best and final offer, life cycle costs, disposal
policy/mechanism, single-stage two envelop, small and medium enterprises, social, economic, and
environmental criteria with a view to yield better value for money. Also, consultancy services module
need to be included in the e-GP system. The component will allow review of the existing procurement
legislations/rules and updating manuals and guidelines as necessary to adapt with the rapidly changing
procurement environment with more flexibility and adaptability in its use including a legal framework for
disposal of public assets. It will also make arrangements for Bengali version of all legislations and tender
documents. Also, English version/translations be made for Act/rules.
8. As part of continuity of policy reform, an initiative towards integrated risk management system
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will be explored with the government, especially in linking data analysis with procurement policy making
and capacity building. By doing this, government would be able to monitor procurement, identify risk
factors and red flags, being able to intervene in advance, but also, focus policy modifications in areas with
loop holes or under the radar screen of the monitoring bodies. The proposed Authority should also be
provided with powers to issue procurement professional certifications and revoke the same (if required)
including professional compliance with the procurement rules, and enforce sanctions mechanism for
inappropriate bidding practices. Additionally, the incorporation of stronger risk management frameworks
at the national level, could also be explored.
Component 1.2: Institutionalizing e-GP
9. With the introduction of e-GP and subsequent roll-out, a large part of its task has taken a paradigm
shift and has become more complex and multi-dimensional over time. CPTU is now performing various
roles that are not compatible with each other, such as, regulating public procurement, generating
revenues, and operating and maintaining the e-GP system. The -e-GP system is no more merely a technical
platform. For efficient and sustainable functioning, it requires appropriate institutionalization enabling it
to act as a service provider to all public sector organizations. Under the existing structure, even for the
high tech e-GP system, CPTU has to follow total government procedures to create posts, fix salaries,
recruit officials, and procure critical technology items. Such lengthy procedure impacts CPTU’s efficiency
on responding to the service standard and need of a system like e-GP. This is not tuned with the nature
and functions of the e-GP system which by default warrants providing full business service to the public
sector organizations and bidding community, requiring highly specialized IT-based infrastructure and
technical staff.
10. Following are the key constraints of the e-GP system within CPTU for its effective functioning:
a. Limited e-GP system operational framework within the government structure whereas the e-
GP function is a business function to manage and operate as a professional data center that
requires full autonomy in terms of its legal and financial structure operating under
commercial law.
b. Long term hierarchic structure for decision making negatively impacting upon resolving issues
related with the technology investment, resource allocations, hiring people; developing
standard technical procedures and guidelines for managing the e-GP platform efficiently&
effectively.
c. Inadequate staffing with skilled IT professionals that are required to follow technology
architecture & processes for ensuring smooth operations and cyber security of the e-GP
system.
d. Issues relating to the need for appropriate business continuity plan, back up procedures,
security policies recovery policies adhering to IT security compliance, functional surveillance
of operation and maintenance, IT Risk mitigation, performance measurement, and value
creations for all the procurement entities.
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e. Inadequate capacity of existing infrastructure/data center compared with the rapidly

changing e-GP growth with short, medium, and long term plans.
11. Given the above constraints, with the high demand for e-GP by most public sector organizations,
the situation is becoming critical. CPTU needs to institutionalize and transform the e-GP operation self-
sustainable by using a service provider model. This model could have two options: either as a corporate
structure or as outsourced third party, similar to the existing arrangement but with more clarity. Under
the first option, both the e-GP service provider and the proposed authority would be functioning under
the operational control of the Ministry of Planning. The other option could be to operate and maintain
the e-GP system as it is now by obtaining an outsourced service provider. For this option, CPTU will need
to substantially strengthen its own technical staffing with adequate capacity to monitor the outsourced
service provider.
12. The key features of the new e-GP service provider is expected to be along the following lines which
will be further revised and updated during the early stage of the project implementation:
a. The e-GP service provider will be responsible for the on-going operation and development of
the e-GP system infrastructure supporting GoB’s procurement reform programs. It will be
responsible for the on-going maintenance and enhancements of the system to ensure the
system supports to governments on-going business needs. All data created by and collected
on behalf of the government will remain government property.
b. It will operate through a contractual agreement with the government (CPTU/Authority) to

ensure the services levels and business and support requirements continue to be achieved.
The CPTU will retain full ownership of all data created and collected in the e-GP system.
c. Under the contractual relationship, any changes to the underlying e-GP system and any new
features added to the government version of the system must be approved and accepted by
the government. The Government will need to have policies, practices and resources to
properly oversee the operation and delivery of the service provider including tools and
practices for performance and security monitoring. Robust policies and guidelines will be in
place to describe how source code may be released to system modifiers without breaching
the integrity of the system and without encroaching on the intellectual property rights of the
CPTU to this resource.
d. In addition to the e-GP system, the service provider will provide services and system develop
support as needed for other IT development needs of the CPTU/Authority including but not
limited to support for citizen engagement services, open contracting, web portal services and
leveraging social media in the delivery and access to e-GP data.
13. The project would provide legal and financial management support to review the business model,
governing policies and systems to ensure the proper legal construct, policies, human resource, and
financial management systems are in place to support and protect the operation of the service provider.
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a. The e-GP business operation is expected to generate $10 million per year over a period of five
years through the processing of thousands of system transactions, vendor registrations,
training services and support. Strong financial management practices and supporting
financial control systems will be required to ensure successful operation of the business.
b. The service provider will have necessary human resources covering management and high
level IT professionals as well as process and policy analysis in place. IT professional will cover
e-GP Application Administrator, Database Administrator, System Administrator, Call Center
Manager and other key officials. Process and policy analysis will cover business continuity
plan, back up policy and procedures, information security policy, recovery policy, network
management process, system management process, database management process, and
application management process.
c. The planned expansion to all agencies will create expanded human resources demands and
system capacity demands. Support will be needed to ensure the necessary resources –
human and system – are in place to sustain ongoing growth. CPTU, where feasible, should
leverage resources and existing support infrastructure developed within the initial 4 target
agencies to facilitate training and activities and to serve as examples in expanding to next to
28 organizations. For example, LGED is expected to serve as the main technical service
providers to support the local government institutions/organizations related entities (about
888) under the Local Government Divisions.
d. From 2017-2020, CPTU forecasts growth in registered bidders from 22,000 to 120,000. This
would represent about 120 new vendor registrations per day or a minimum of six full-time
resources to process the registrations alone. CPTU may need to re-examine some current
processes, such as vendor registration, to determine how they can be streamlined to minimize
any potential delays or bottlenecks in order to achieve projected targets. Investment could
be made to leverage existing relationships with banks and agencies to facilitate this process.
Current registration process requires submission and verification of physical documents, the
verification should become electronic as much as possible including linking with other
government systems to validate information.
e. The growth forecast of expanding to all agencies will require significant expansion of the
system technology hardware, software and network infrastructure to support the anticipated
user and transactional demands applied to the system. Training facilities and support services
will also require expansion to accommodate the needed e-GP training in an expedited
timeframe and, where feasible, incorporate e-training and e-support to alleviate demand on
human resources.
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Component 2:
Enhancing Digitization of Public Procurement
14. This component aims to enhance the scope of e-GP for all public sector organizations across the
country covering system as well as technical requirements including updating of e-GP modules with robust
contract management process, fully operationalizing two data centers, and business modeling. Two sub-
components are expected.
Component 2.1: Expansion of e-GP system
15. Currently, the e-GP system is in full use up to the contract award by the four organizations (RHD,
LGED, BWDB, and BREB), identified as PSPSOs in the project (Annex 1, Attachment), covering about 35
percent of the national development program annual allocations. There are about 1300 procuring
organizations of which over 900 procuring organizations have significant volume of procurement covering
28 NSPSOs (Attachment). 28 NSPSOs covers most LGIs with decentralized structure up to the sub-district
level, beyond the four. Over 85 percent of the national development program allocations are spent
through these 32 SPSOs (NSPSOs and PSPSOs). The expansion of e-GP system will have two elements:
physical expansion of the scope of e-GP and the enhancement of e-GP features. Under the first element,
the existing system will be expanded to all potential ministries covering other procuring organizations,
beyond the existing four PSPSOs where e-GP is already fully functional. Accordingly, the new data center
with enhanced capacity covering the entire country’s need is in place. While all 1300 PSOs will use the e-
GP system, the project will measure e-GP expansion (bid invitation to contract award) for about 900
procuring organizations, under the identified 28 NSPSOs, given their relatively high volume of
procurement. The second element of enhancement of e-GP system will include new features and its
integration with other systems over time. For example, modules for suppliers’ database and performance
rating, international competitive bidding, framework agreement, electronic catalogue, reverse auction,
consulting services. Also, the e-contract management module including payments will be updated. To
interface with other e-Government system, the users’ identifications profiles will be linked to the national
personal identification system.
16. The system and business planning would also examine how to leverage existing training and
support infrastructure developed during the initial system implementation with the four key agencies. To
interface with other e-Government system, the users’ identifications profiles will be linked to the national
personal identification system, including possible tax identification system. Also, there would be an
automated interface with relevant departments such as Bangladesh Computer Council to get updated
standard IT specification to help in preparing bidding documents by the agency. It will also explore the
inclusion/integration of national payment module with the e-GP system. In future, if found feasible, the
project may explore options whether the private sector can also use the national e-GP platform for specific
e-GP modules keeping the IT security in consideration. The project will provide logistic, technical and
implementation support for the management, operation, and maintenance of the e-GP system.
17. Main features are summarized below:
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a. Needs of all new organizations in terms of hardware, software, human resources,

consultancies will be covered under the expansion program. Also, the creation of specific
procurement technical support unit within the key agencies will be included.
b. Exploring the incorporation of bidders’ self-evaluation in the automated e-GP system against
the evaluation criteria of the bidding document. Also, the possibility of submitting bid
securing declaration by the bidder instead of bid security will be actively considered in light
of the fact that bid security became redundant under e-GP as all the bidders are registered,
and rate of forfeiture of bid security is extremely rare. This will leverage more participation of
bidders.
c. Operation and security functions would apply across all system platforms. The system would
look at monitoring tools to notify management of any potential risk to a procurement – single
bidder, no bidder, delays, collusions, inadequate competition, disqualification of ranked
bidder.
d. Updating of e-GP modules with security coding features of the existing workflows for
registrations, document validation and payments to be conducted to minimize any potential
bottlenecks that may affect the procurement process with the increased volume of
transactions. Also, the security and risk management in application and database at its highest
level will be established. Support for new web browsers (Microsoft edge and google chrome)
and latest version of approved browsers (Internet Explorer and Firefox) to be included.
Reviewing the data collected in the system to support the future data analytics and reporting
requirements of the PE’s, and the Authority.
e. New procurement functionalities and enhancements to system functions are required to

extend the system value of all stakeholders purchasing/catalogues, e-purchasing, product
coding/economic classifications, reverse auctions, framework agreements, expanded
contract management, asset management support, payments services and red flag
monitoring, and reporting tools. New procurement workflows be included such as single stage
two-envelop for goods and works for ADB and other donor projects. Also, the registration
process of foreign bidders to be streamlined to remove the need for submission of physical
documents. Advance Search functions to include Donor and funding source options, and
notification services as new opportunities.
f. New performance management features to provide quarterly reporting to CPTU and other
government agencies on performance indicators relating to the efficiency and effectiveness
of the procurement process and the value for money obtained through the process.
Performance monitoring reports will be defined in multiple formats to enable use of the
information for agencies responsible for implementation as well as those responsible for
oversight and monitoring.
g. Publication in open data formats will be enabled by the introduction of an Application

Programming Interface that follows the schema of the Open Contracting Data Standard
(OCDS) as a new feature of the system. The e-GP will make its data available for other systems
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to consume in a machine readable format. An API will enable an automatic integration

between the systems with minimal efforts. The public data can be shared between systems
through a public API, the private data can be shared through a private API that requires
authentication. Extensive documentation on how to structure data after OCDS is already
publicly available. A study needs to be completed to evaluate how other systems are
publishing their data and to provide recommendation for advanced integrations that respect
the best practices in terms of online security.
h. Examination of new technology in the e-GP process – mobile, geo-tagging, video, social media,
interactive dashboard, discussion board – will be explored to further engage stakeholders and
create public awareness of government procurement and project implementation to enhance
the e-GP service offering. Support production and hosting of seminars and workshops to
introduce e-GP and recruit new agencies and bidders to the system, helping to ensure system
expansion across Bangladesh.
i. Integration with other Bangladesh e-Government systems will be required to facilitate data
exchange and verification, specifically with the smart national identity card for personal
profile verification of users, integrating with electronic tax systems, IBAS++ systems,
streamline the registration process and document validation, program evaluation and
monitoring. Also, integration with budgetary system will be explored. The integration or
functional interoperability will be rolled in phased approach so that it add the value rather
dysfunctional integration.
j. The business development initiatives will focus on continued growth of the vendor
marketplace, support citizen engagement in the procurement process, and ensure all target
users/stakeholders have an awareness and understanding of the value of the e-GP system
and their role in the procurement and monitoring process.
k. Revenue models will be needed to ensure ongoing system growth and full participation of all
government agencies in using the system. The system’s value is in the content created and
managed by the agencies; thus, it is important that the business model ensures their full
participation. In future, explore options, if feasible, to allow private sector conduct
procurement keeping data separate.
l. For the new data center, there will be a MOU between CPTU and Bangladesh Computer
Council who agreed to provide physical housing of the e-GP data center (main server)
including security, power, environment/cooling, space, and risk management. Further to this
Datacenter vendor will impart their contractual obligation as current agreement and SLA.
m. New systems will be developed in support of other components of DIMAPPP including but not
limited to citizen engagement, open contracting, performance management, procurement
professionals’ certification program, and project implementation and capacity development
initiatives. Each of the new systems will have a need or effect for the information collected
in the e-GP system. As the custodian of the government e-GP data, the e-GP corporate, if
established, will need to minimize any overlapping or duplication of any procurement data
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collected or maintained in different systems and to serve as a central link to all procurement
information available.
Component 2.2: Implementation of Contract Management
18. e-Contract management: The existing e-GP system has a contract management module but not
considerably used by the four target agencies of the ongoing PPRPII (RHD, LGED, BWDB, and BREB). The
proposed project will make especial efforts to upgrade the features of the existing contract management
module which will include supplier’s database, supplier’s performance rating system, geotagging, asset
tracking, online payment, critical activity/path management, upgradation of the system consistent with
open contracting data standard. A separate citizen engagement web portal including open contracting
data will be developed and managed by CPTU (future Authority). The contract management module shall
have provision to integrate with this citizen engagement web portal to provide real time contract data
and opportunities for citizen feedback. The citizen engagement is expected to work as voice of
accountability in public procurement.
19. It is expected that within the project period, the four agencies will fully implement this contract
management module for all of their contracts including contract administration and on-line payments to
the suppliers/contractors in a way that the system performance can be measured in terms of actual
implementation of contracts. All parameters of contract performance including sustainable procurement
KPI’s (economic, social and environmental) will be included. This agencies will use the e-Contract
Management module in a phased manner with a target that in the final year of the project the rate of
contract implementation within the original schedule increased to 50 percent. Necessary training to
develop technical skills will also be included. Subsequently, these four agencies will take lead in providing
training to the other organizations in introducing the contract management module. It is envisaged that
the e-contract management module will be rolled out in a planned manner considering the principles of
randomized control trial to facilitate registering the impact of the module in improving procurement
outcomes.
20. National contractors’ database and performance rating: As part of strengthening procurement
management and developing construction industry in the country, CPTU will develop an on-line
contractors’ database with certified qualifications and experience of the firms, especially for the civil
construction works. The contractors’ database is to streamline evaluations avoiding repetitive physical
verification of their experience or past certificates by various public sector organizations. Once their
records are checked and verified thoroughly by the organizations, it will be captured on-line in the e-GP
system so that contractors do not have to submit experience records again to different organizations
across the country. This module will also provide past performance of the contractors based on some key
performance indicators captured from the e-contract management module with possibility of inclusion of
performance ratings by the agencies.
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Component 3:
Professionalizing Procurement and Citizen Engagement
21. This component will improve procurement management capacity of the SPSOs, both in terms of
public procurement practices and the use of e-GP. Attempts would include progressive professionalization
with greater sustainability of the procurement capacity development efforts. Also, the bidding community
will be included as part of the capacity enhancement program. While the component is dedicated to
procurement management and capacity development, it would have direct linkages with Component 2 in
specific reference to the e-GP expansion and performance measurement out of these activities. Also, the
component will encourage creation of knowledge base, analytical tasks, and research for development.
Concurrently, it will expand the scope of citizen engagement mechanism through enhanced participation
of procurement beneficiaries to ensure better value for money and improve the quality of procurement
outcomes at local levels, with specific reference to rural roads, education, and health service deliveries.
The five subcomponents are detailed in the following paragraphs.
Component 3.1: Improving Procurement Management of SPSOs, IMED and CPTU:
22. This subcomponent would help improve procurement management capacity at the SPSOs by
facilitating and supporting key activities. The project would ensure that each SPSO will have a minimum
level of capacity to deal with procurement activities satisfactorily in accordance with the provisions of the
Public Procurement Act and international good procurement practices. A core group of officials of each
of the procuring entities (PE) within the SPSOs will be provided rigorous training for skill enhancement to
make them capable of handling procurement issues in a way that if there are transfers and/or rotations,
still each PE will have skilled/trained/certified procurement personnel towards the end of the project
period. Thus it will form a sustainable procurement unit within SPSOs to handle the procurement process
in a more professional manner. There will be policy as how to utilize the trained procurement professional
in a sustainable and effective manner. Each of the SPSOs will have core procurement unit with
trained/certified staff with job description. The key activities are likely to include the following:
a. Operationalizing functional procurement unit: The activities will include (i) creation of a
Procurement Unit/Cell in each of the SPSOs with about 5-10 procurement professionals
depending on the agency who will act as the procurement focal person of the SPSOs and those
professionals will be recognized as the Procurement Knowledge Bank of the SPSOs. The
Procurement Unit will be institutionalized as a permanent unit of the SPSOs and it is expected
that those professionals will provide necessary guidance to the officials at the field and/or
interpreting Laws/Regulations for operational procurement; (ii) the SPSOs will be
strengthened with necessary office support logistics including computers, printers, servers;
(iii) about 200 selected procurement officials working in the SPSOs would be provided
opportunities to undergo international blue color procurement accreditation program of
MCIPS/UK over the project period, mainly using the CIPS recognized study centers in
Bangladesh. The selection of candidates for MCIPS entry will undergo through a rigorous
screening process based on their performance and merit. Also, there will be opportunities for
highly potential candidates for higher educations at advanced level (e.g., Masters in
sustainable procurement/procurement management/supply management). The trainers will
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also have opportunities for advance level trainings. All these trainings will be completed
within the project period.
b. Reinforcing agencies’ internal review of procurement: A system of internal audit/review of

procurement functions will be developed and operationalized. Each SPSO will carry out such
annual procurement post reviews by hiring a third party independent consultant/auditor. This
would facilitate the retention of the institutional memory and help to facilitate to exercise
internal audit of procurement process and compliance of rules and regulation. Other
functionalities will be added for real-time reviews by monitoring real-time activity during
procurement and contract management. With better active monitoring there will be a
reduction of common fraud and corruption issues. In addition, each SPSO will carry out an
annual procurement review focused on value for money using a set of indicators developed
under component 2.1. Performance reviews are intended to identify opportunities to improve
procedures, policies, and practices within each of the agencies.
c. Raising awareness of key officials of SPSOs: Around 500 senior officials of the SPSOs will be
orientated with the procurement process by highlighting their role and responsibilities in
public procurement. Number of workshop of half-day duration would be conducted. These
workshop would focus creating awareness on effective, transparent, efficient, “value for
money” public procurement contributing to economic growth.
d. Twinning with better functioning institutions in other countries: This activity would include
procurement management training, twinning arrangement or exposure visits for officials
(CPTU, SPSOs, Others) for each year would be conducted during the project period. Also, look
at options for exchanging data – opportunities and vendor matching.
Component 3.2: Capacity Building and Professionalization of Procurement:
23. This subcomponent aims to professionalize public procurement through professionalization

process and training at different tiers with greater institutionalization. Sustainable capacity development
is the key for overall enhancement of procurement environment. CPTU/Authority will have, among
others, mandate to sustain public procurement capacity development initiatives. . CPTU/Authority will
also possess the right to revoke/down grade the professionalization accreditation, if necessary. Necessary
empowerment will be articulated in the amendment of PPA and the proposed Authority’s law. To this
end, there will be few indicators to ensure sustainability of the procurement capacity so that in medium
term the respective agencies will have sustainable procurement capacity. Activities will include: (i)
developing and implementing a tier of professional certification program in an increased higher order
level and (ii) enhancing capacity of SPSOs and other sector agencies by designing and implementing a
comprehensive capacity development program. To allow the participants to practice procurement as a
professions, the professional tiers are as follows: Tier-1; Tier-2; Tier-3; and Tier-4 as described below. The
program will cover various long and short procurement training courses for targeted audience (e.g.,
introductory, basic, specialized, highly specialized procurement training, policy/entry level civil servants,
procurement officers, auditors, estimators, accountants, bidding community, e-procurement learning,
journalists).
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24. Procurement Professionalization Program: A program will be taken under this project to
professionalize public procurement officials with necessary recognition to practice procurement through
a four tier process– (i) Tier-1: Public Procurement Associate, (ii) Tier-2: Public Procurement Professional;
(iii) Tier-3: Advanced Public Procurement Professional; and (iv) Tier-4: Fellow Public Procurement
Professional. Besides, for procurement data analytics and IT business process, there will be a specialized
stream, namely, Procurement Data Specialist. Procurement practitioners will be accredited based on
relevant practicing experience, training, and professional/academic qualification. Detailed requirements
for each of these accreditation tier will be developed. A Professionalization Certification Board under
CPTU/Authority will issue professionalization certificates, and CPTU/Authority may make collaboration
with international organizations and/or university to undertake such accreditation process. Each
accredited practitioner will have a unique identification number which will enable tracking the
practitioners’ experience and performance in terms of executing procurement functions. Procurement
practitioners will progress through the accreditation tiers by acquiring required experience, training and
professional/academic qualifications. Procurement training program under this project will be aligned
with the accreditation program. Details of the requirements for different tiers of accreditation are
expected to be along the following lines:
a. Tier-1: Public Procurement Associate: Basic understanding of Public Procurement Act, Public
Procurement Rules, and procurement methods for low value contracts. Completion of online
procurement training (Introduction to Public Procurement) is mandatory. Bachelor level
technical qualifications required. Overall experience 3 years of which at least 2 years
practicing experience in public procurement is essential. Detailed selection criteria will be
developed.
b. Tier-2: Public Procurement Professional: Good understanding of Public Procurement Act,

Public Procurement Rules, different procurement methods. Completion of 3 weeks basic
procurement or similar training is required. Private sectors’ participants are also eligible with
above competencies. Good understanding of international procurement combined with
development partners’ procurement guidelines/framework/practices is required. Overall
experience 5 years of which at least 3 years’ practicing experience in public procurement is
essential, i.e., preparation of bidding/proposal documents, evaluation of bids/proposals, and
implementation of contracts. Bachelor level technical qualification; Masters preferable.
Private sectors’ participants are also eligible with above competencies. Detailed selection
criteria will be developed.
c. Tier-3: Advanced Public Procurement Professional: Excellent understanding on Public

Procurement Act, Public Procurement Rules, different procurement methods, and hands on
experience on preparation of bidding/proposal documents and evaluation of bids/proposals
for large value contracts. Excellent understanding of international procurement guidelines
and experience in handling international procurement of fairly complex contract is
mandatory. Overall experience 8 years of which at least 5 years demonstrated practicing
experience in public procurement is mandatory (e.g., experience in preparing
bidding/proposal documents and evaluation of bids/proposals for at least a minimum number
of large-high value contracts). Specialized procurement experience/training on any of the key
areas, e.g., large value supply installation or works, power plant, IT system, health equipment,
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medicines, large value complex consultancy contracts. Candidates must have advanced
technical qualifications (Masters Level or equivalent). Membership of Chartered Institute of
Procurement and Supply (MCIPS) or similar institutions are encouraged. Private sector
participants are also eligible with above competencies. Detailed selection criteria will be
developed.
d. Tier-4: Fellow Public Procurement Professional: This is the highest level of

professionalization for truly desirable procurement practitioners with high level proven
expertise in international procurement of very large and complex contracts. Overall
experience 15 years of which at least 10 years practicing experience in public procurement is
essential, largely focusing on international procurement (e.g., hands-on experience in
preparing bidding/proposal documents, evaluation of bids/proposals, and managing
international contracts for at least a minimum number of large value highly complex
contracts). Specialized procurement experience and training on any of the key areas, e.g.,
large value highly complex supply installation or works, power plant, IT system, health
equipment, medicines, large value highly complex consultancy contracts. Candidate must
have advanced technical qualifications (Masters Level or equivalent). Membership of
Chartered Institute of Procurement and Supply (MCIPS) or similar institutions are encouraged,
with broad expertise in strategic procurement, including proven experience in designing,
managing, and delivering large scale and complex procurement operations. Equivalent
qualifications for other types of candidates may be determined. Private sector participants
are also eligible with above competencies. Detailed selection criteria will be developed.
e. Procurement Data Specialist: Besides, the above public procurement professionals, there will
be a separate stream of Procurement Data Specialist. Good understanding of public
procurement processes and of the public procurement systems in use in the different
agencies and at the central level; understanding of data structures in the public procurement
systems; of procurement key performance indicators (KPIs), and what data to use to generate
specific indicators, data visualizations or new tools; understanding of how to merge data from
multiple sources, different strategies for integrating IT systems, and how to assist colleagues
in data-driven decision making and performance monitoring; understanding data challenges
and brainstorm possible solutions, open data principles, best practices, format, and
technologies; have an overview of relevant open source tools and platforms and how to
evaluate and re-purpose to fit specific data needs. Detailed selection criteria will be
developed.
25. Given the nature of the intervention and its importance in terms of raising the standard of
capacity development over a longer time horizon with greater sustainability and institutionalization, it is
envisaged that the basic procurement training will be materialized through a twinning arrangement
between local and international collaboration, with necessary input for professionalization and
accreditation. Possible options of Engineering Staff College Bangladesh (ESCB) and with institution(s), like,
International Training Center of the ILO, Turin, Italy (ITC-ILO) and/or Nottingham University/ UK and/or
University of Tor Vegata, Rome, Italy will be explored. The core competence courses for international
procurement accreditation program is likely to be conducted in Bangladesh at the recognized study center
of the Chartered Institute of Procurement and Supply (CIPS), UK, for example, BRAC Institute of
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Governance and Development (BIGD) under the BRAC University, ESCB affiliated with The Institution of
Engineers Bangladesh (IEB). This arrangement is proposed in light of the previous experience of ESCB and
BIGD under the ongoing procurement reform project. Also, other possibilities will be explored.
a. Procurement training program: The six key components are: (i) introductory to public
procurement - online training; (ii) basic procurement training; (iii) specialized procurement
training; (iv) highly specialized procurement training; (v) procurement management training;
and (vi) short procurement trainings. About 4,000 participants are expected to complete the
basic procurement training of three-weeks covering procurement of goods, works, and
consultants services, selected mostly from the 24NSPSOs (about 75 percent) followed by
others (remaining 25 percent). Short procurement training will be provided to about 6,000
participants. Course curriculum and training materials for all of these courses will be
developed. There will be feedback mechanism allowing participating bidders to rate the
quality of procurement being conducted by officers; assess the quality of training received;
or, identify where additional training and support may be required. Also, it will explore
options for leveraging technology to expand the reach of capacity development initiatives,
including webinars and online training and resources. The details of courses are expected to
be along the following lines which will be further reviewed and firmed up upon receipt of the
need assessment consultant within the next couple of months.
(i) Introductory public procurement training- online: This elementary online

procurement training will cover basic understanding of Public Procurement Act,
Public Procurement Rules, and procurement methods for low value contracts. The
main target audience for this training will be the new comers in the field of
procurement. This course will be a pre-requisite to get user registration in e-GP. At
the end of this online training there will be an online test (time sensitive/multiple
attempt allowed), with the option of on-line certificate.
(ii) Basic procurement training (three week): The basic procurement training will include
course contents for procurement of goods, works, non-consultant services, and
consultant services. The course is targeted to train the personnel involved in
procurement process in selected sector organizations. Also, possibility of
participation of other sector agencies and private sector in the above training will be
explored and may be included as appropriate. This training would focus on
preparation of bidding documents (works, goods and services), bid submission,
evaluation and award of contract, contract management including arbitrations and
dispute resolutions, and use of e-GP. The course content will be mainly based on the
PPA, with short modules on international procurement practices like WB, ADB.
(iii) Specialized procurement training (one week): This course is meant for specialized
fairly complex procurement and is expected to have a duration of at least one week
either for good or works or services. Only the top performers in three week basic
procurement training or training of similar nature will be eligible for this course.
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(iv) Highly specialized procurement training (two weeks- face to face and hands-on): This
course is meant for highly specialized complex projects/very large infrastructures and
is expected to have a duration of at least one week either for equipment/power
plants or large works or services. Only those completed the specialized procurement
training will be eligible for this course. There will be test for this course.
(v) Procurement management training: Procurement management training at advance

level will be arranged abroad for SPSOs key procurement officials and procurement
focal persons to prepare them to effectively serve as the procurement resources for
the respective organizations. Also, CPTU procurement officials will be provided with
this training.
(vi) Short procurement training: The short courses for various target audiences will be
introduced. All courses below will be conducted under the contract arrangement
between ESCB in association with internationally reputed procurement training
institution. The following short courses are envisaged with scope of further
adjustments/additions depending on actual need: All short courses should highlight
the e-GP system as the primary source of all information.
i. e-GP training (public officials/ bidders/ bank officials): There will be four
types of e-GP course: public officials, bidding community, bank officials, and
organization admin. For public officials, it will be a selection of courses of
two to five days duration covering the use of electronic government
procurement (e-GP) and its functionalities in reference to the public
procurement rules, preparation of bidding documents, evaluation of bids
and contract management modules. For the bidders, there will be training
of 1-day duration mainly focusing on how to prepare and submit bids on-
line and a course on contract management for filing required document,
request for payment and any change orders. The bank officials’ short
training will mainly focus on registered users of banks as how to use e-GP
for bank transactions. The organization admins short training is of
specialized nature as how administer organizations in e-GP.
ii. Training of junior level officers: Junior level officials of procuring entities
who assist in estimates, accounting and/or associated with procurement
activities will be trained on a short course of three-day duration.
iii. Training of civil service officers: These short courses (1-5 days) will be
designed targeting entry, mid and senior level civil servants. Specific
training modules for various levels of officials will be designed in a way that
it helps them in dealing with day to day procurement related issues.
iv. Training of auditors, finance and accounts officers: Given the importance of
the role of auditors in public procurement, the public auditors will be
provided with targeted course on procurement (2-3 days) that is
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appropriate for them. Since their role is different from the roles of public
procurement officials, the course module will concentrate on the type of
deficiencies in bids and actual contract implementation issues including
delayed payments and imposition of liquidated damages for delayed
implementation
v. Orientation of judiciary officials: This 1-day orientation is targeted for

Supreme Court, High Court, and District Court judges as well as public
prosecutors and attorneys to have good interpretation of local
procurement law and good understanding of international treaties
affecting procurement decisions through judicial academy.
vi. Orientation of anti-corruption officials: This 1-day orientation is targeted

for officials of the Anti-Corruption Commission (ACC) or similar officials
with specific reference to procurement and contracting to have good
understanding and interpretation of local procurement laws in the context
of sanctions and associated matters.
vii. Orientation of journalists: This 1-day orientation is to give journalists from

newspapers, TV and radio channels a broad perspective of public
procurement and how to prepare quality reports on procurement decisions
and usage of public money. The journalists can also act as a third party of
development activities and contribute in determining accountability.
viii. Orientation of Parliament Officials: Recognizing the involvement of the

Parliament officials in development related matters at the local level, this
1-day orientation course will provide orientation as regards the
procurement law and associated rules with specific reference to the
integrity of bidding process and contract implementation.
ix. Business outreach program: This is a 1-day short orientation to the

business community in reference to the application of procurement
laws/rules and key elements of bidding mostly in the form of
workshops/seminars.
x. E-learning modules/ open source materials: In addition to face to face

course, it is envisaged that a number of open source training materials
and/or short e-learning modules for procurement will be developed for
distant learning or e-learning at officer’s own convenience, preferably with
provisions of on-line certificates. ESCB will develop these modules and will
host them on a regular basis as part of their regular activities (even beyond
project period).
xi. Procurement awareness workshops for policy-level and senior officials:

Most of the key policy makers and public officials at various tiers of SSOs
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will undergo this short course (1 day) specifically designed on the basis of
procurement rules and associated approval process with general idea on e-
GP system. The objective is to help facilitate an efficient procurement
approval process with reduced time lag.
xii. Procurement workshop for bidding community/civil society: `These

workshops are mainly targeted to biding community/civil society for
making them aware of the procurement key steps and awareness about
public procurement and their engagement as staholders..
xiii. Other workshops/ webinars: There will be provision for other

workshops/webinars concerning procurement and associated matters, for
example, insurance, dispute resolution, Incoterm, contract management.
xiv. Refresher course: This is a one day refresher course aimed at the
participants who underwent three-week course for procurement of goods,
works, and services in the past under the procurement reform project and
has been practicing procurement for at least five years since the
participant's training. The course will cover PPA, PPR with associated
amendments and procurement processes/tools including framework
agreement, and e-GP.
b. Procurement core competence: The core competence training courses will be conducted by
reputed international organization. In addition, the core competence international
accreditation courses are offered by CIPS/UK. The purpose is to provide opportunity to
compete for international accreditation program. The eligible candidates through the
screening process will be allowed to have entry for level 4 in CIPS. To achieve the highest
advance diploma at level 6, one has to complete all three levels, that is, level 4 (diploma),
level 5 (advanced diploma) and level 6 (professional diploma). Upon completion of level 6,
one is awarded the blue color procurement accreditation with Member of the CIPS (MCIPS).
c. Pool of national trainers: Currently, CPTU has a national pool of certified trainers of about 60.
Given the rapid trend of increased procurement activities, the pool is likely to be further
expanded. Concurrently, the capacity/skill of the existing trainers will require updating and
further re-validation for continuity of their tasks as national trainers. They will be further
provided with professional TOT courses (national/international)
d. Building a network with CPTU: The activities would include developing and establishing
certification/accreditation program at ESCB. The certification/accreditation would be
conducted on the basis of national policy adopted by CPTU. As part of the policy, CPTU in
collaboration with ITC-ILO, Turin will develop and operationalize the hierarchy of the
certifications in public procurement in consistent with the international practices. ITC-ILO or
similar organization may assist ESCB on this. Concurrently, it will support CPTU to establish a
network of procurement professionals who can assist procuring entities as and when required
for specific procurement initiatives. The network can serve as mentors to procurement
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officers to assist in individual capacity development.
e. Agency/Entity Reward Program: As part of the incentive/reward mechanism, to create

procurement value addition, agency will be recognized based for their procurement
performance annually. Similarly, from within the agency, a few entities will be recognized
annually for better procurement performance. Other procurement value addition programs
will also be explored.
Component 3.3: Disclosure of Public Procurement Information in Open Data Format
26. The expected outcome of the component is improved transparency with better collection,
maintenance, analysis and dissemination of public procurement data and information to the government,
Civil Society, private sector, and the citizens at large. The Open contracting approach will be a vehicle to
provide numerous stakeholders from the government, civil society and the private sector with an access
to public contracting data and information. The expanded system would be based on the Open
Contracting Data Standard (OCDS) and leverage advanced data analytics in procurement to track and
measure performance of the public procurement system. This would not only help government officials
to take corrective actions as needed to improve performance of public procurement but would also make
the procurement processes and outcome transparent to the public. For the open contracting approach to
be most effective and to allow analysis of bidder’s performance and quality of the product/service, it is
important that it covers the full contracting cycle, from planning to implementation.
27. Open contracting refers to increased disclosure of contracting data and information, combined
with the participation of stakeholders in all stages of public contracting, including planning, tendering,
contract award, implementation of contract, performance and asset tracking. The Open Contracting
approach promotes collaborative and constructive engagement between governments, private sector,
civil society, and development partners. It focuses on increasing and improving the disclosure of public
contracting data and information, and building the capacity of these actors to understand and effectively
use contracting information to improve procurement outcomes through increased transparency,
efficiency, and accountability. In Bangladesh’s context, as an integrated part of the e-GP system,
government would disclose relevant information and data about the planning, tendering, award,
execution, performance and completion of public contracts, including grievances and any remedial action
taken by the government and the contractors. In practice, publicized information should include elements
such as contract planning documents, tender or bidding information, contract awards, performance
reports and contract completion information and product/asset tracking using geotagging techniques
within the e-GP framework. In order to facilitate access to, and use of, the disclosed information, the e-
GP system will feature a public-facing web portal for disclosure of contracting data and information.
28. Though information may be made available to the public, it is not always structured in a way that
makes it easy for people to understand and use. Effective contract transparency requires information that
is open and useful, meaning that data are disseminated frequently, clearly and in line with accepted “open
data” requirements. By applying principles from the emerging Global Open Contracting Data Standard
(OCDS), it is planned to capitalize on current trends toward procurement transparency in Bangladesh to
increase the value and accessibility of publicly-available procurement information.
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29. Technical features: Major features will include:
a. Availability of more data by publishing higher proportion of bid invitations and contract
awards with provision of downloading soft copy of data from the e-GP portal;
b. Connecting contract with resources by linking tenders and awards with ultimate aid or
government funding source;
c. Setting a basic standard by standardizing location information of each contract with where
money goes, standardizing cost information to ensure that 100 percent of contract
documents have budget figures, generating unique identifier numbers (project, contract,
contractor) that will link tender notices with corresponding contract awards and the
contractor;
d. Completing a data mapping of procurement and related systems to the OCDS for ease of
publishing and potential system integration;
e. Adopting visualization tools to improve understanding and use of information by government,

donors, civil society and the private sector;and
f. Developing and implementing analytical tools and mythologies for problem driven data
analysis in procurement results areas such as performance, quality, and outcomes.
30. Strategic features: The following features are expected to be included:
a. Incorporating visualization features in the e-GP portal as an “official” public source of

procurement data, allowing CPTU a user-friendly venue for sharing the public procurement
information which becomes available during the expansion of the e-GP portal;
b. Developing a tool to receive and respond to public comments, feedback, and complaints
regarding public contracting. This may be similar to the “independent complaint redress
mechanism” of CPTU but should remain open to public;
c. Developing analytical tools and methodologies to provide regular performance profiles

relating to the outcomes achieves, in order to identify strengths and weaknesses of current
performance in areas critical to CPTU;
d. Facilitating dialogue between CPTU/e-GP entity and implementing agencies to identify

improvements to data quality and usefulness of the central system. CPTU may also encourage
agencies to publish more data;
e. Developing capacity to standardize and increase the coverage of procurement information

and the use of contracting data for policy making. Experience shows that many government
officers may not holistically consider past procurement data when planning new programs or
making procurement decisions;
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f. Working with CPTU/e-GP entity and implementing agencies to (i) identify innovative solutions
to improving contracting data collection and transparency at the local level; (ii) raise
awareness among civil society and community stakeholders of the importance of public
procurement and leverage non-state actors to monitor public contracting and contractor
performance at the local level. This could be achieved through campaigns, action-planning
workshops, and innovative community based monitoring tools;
g. Advising CPTU/e-GP entity on incentive-structures to improve implementing agency

performance with regard to transparency and accountability in procurement. Highlight value
of information to illustrate a more competitive, fair and open procurement to demonstrate
success of reforms to bidders to increase size of marketplace and competition; and
h. Advising CPTU/e-GP entity on data, methods, and tools to improve agency under performance
in specific sectors, procurement channels, and supplier diversity.
Component 3.4: Citizen Engagement
31. The overarching objective of this sub-component is to promote transparency, accountability, and
efficiency in public spending by enabling multi-stakeholder engagement. The sub-component will raise
the awareness and build the capacity of a variety of stakeholders from government, civil society and the
private sector to use contracting data, as well as provide them with monitoring tools at the ground level,
so that they can advance an informed and collaborative dialogue about procurement performance.
Building on the experience of PPRPII, Citizen Engagement (CE) at various levels – both local and national -
- will be enhanced and institutionalized throughout the country. Specific attention would be provided in
areas of gender sensitivity and mainstreaming of public dialogue and beneficiary feedback using
traditional and innovative new ICT tools/techniques.
32. Following are the key mechanisms that would aim at achieving the CE objectives:
a. Public Private Stakeholder Committee (PPSC) Dialogue at the regional and national levels:
The ongoing central framework of Public Private Stakeholders Committee (PPSC) for policy
guidance and debates will continue to guide the citizen engagement exercise and provide
suggestions for giving it an institutional shape. An updated Terms of Reference for the PPSC
would be developed based on the following key activities:
(i) Evaluate annually the broad impact of the Public Procurement Act and Rules on
country’s actual procurement practices, and put forward recommendations to
the GoB for adjustments, if any;
(ii) Provide policy inputs to promote most effective and efficient utilization of
public spending for better delivery of public services;
(iii) Review citizen engagement initiatives and other transparency and

accountability mechanisms to ensure quality engagement of various
stakeholders (both government and non-government) in the monitoring and
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tracking of procurement processes and outcomes;
(iv) Hold semi-annual meetings with various stakeholders including media and civil
society to obtain feedback regarding public procurement in the country;
(v) Facilitate free flow of relevant information about public procurement to

citizens and recommending removal of any obstacles to the process;
(vi) Publish in website periodically and disseminate the findings and

recommendation of this committee to the GoB and general public;
(vii) Provide suggestions and guidance to proper functioning of citizens’ portal and
its linkages;
(viii) Provide guidance in developing mechanism to address grievances of the

citizens about the quality of public procurement; and
(ix) Suggest ways to form PPSC sub-committees and local level committees.
b. Government-Tenderers’ Forum: The existing Government-Tenderers’ Forum (GTF) at the

district level for dialogue between public procuring entities and the bidding community will
be strengthened and further consolidated for its sustainability with a set of Terms of
Reference based on the outline below:
(i) Form an executive committee with all procuring entities at the district level and
the bidders/contractors as its members;
(ii) Prepare an annual action plan;
(iii) Hold bi-monthly meetings and convene those through consultation between
Convener, Co-Convener and Member-Secretary. Set agenda, time and venue
for organizing the meetings;
(iv) Member-Secretary as per decision will deliver invitations for meeting;
(v) Provide a platform for discussing any topic related to public procurement
including issues regarding e-GP and relevant other matters. The forum will
provide participants the opportunities to share views on specific issues, raise
questions and address queries;
(vi) Refer issues, if not resolved at GTF, to CPTU;
(vii) Arrange, if possible, orientation on these issues by experts or trainers;
(viii) Capture success stories on public procurement and share with CPTU for wider
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dissemination through various platforms such as the citizens’ portal, PPSC, and
other channels such as the news media if appropriate;
(ix) Prepare meeting minutes; capture photos and share with all members, post on
website of Convener’s organization and Citizens’ Portal; and
(x) Suggest modifications and improvement in the structure of GTF, and its TOR if
necessary.
c. Site-Specific Citizen Monitoring (SSCM) at the local level: The project will scale up citizen
monitoring of public procurement at the local level using a sustainable, low cost, and
politically feasible strategy of citizen engagement. Based on the lessons learned from the two
pilots implemented under the PPRPII, the SSCM approach will predominantly be used to
monitor implementation of procurement contracts in government’s development projects by
involving the beneficiaries directly using simple tools with the objective of ensuring quality
and reducing opportunities for fraud and corruption at the decentralized level. For this, open
source tools based on OCDS data will be made available to citizens groups, which, will allow
for the identification of red flags in procurement processes. This CE strategy will be run using
country systems and government structures, with support from local NGOs, in order to make
it sustainable in the long run. In brief, the CE strategy will be focused on the following key
elements facilitated by a local NGO:
(i) All SPSOs will voluntarily disclose information on procurement and contract
including implementation as is allowed under the Right to Information Act;
(ii) Citizens living near the site of a project will be informed of the characteristics
of the project, and how to monitor implementation, timeliness and quality;
(iii) Information will be provided by relevant government official(s) from the local
implementing department (i.e., the LGED engineer) and a billboard will be
erected at site with complete, clear, simplified, and relevant information; and
(iv) Recognizing the Right to Information Act, citizens will monitor project
implementation according to the specifications basics and time schedule
established in the contract and will report their complaints to the contractor,
engineer, and the NGO.
33. In order to share and disseminate the views and feedback of the SSCM, Citizen Monitoring Forum
(CMF) will be organized at the regional levels with due care of gender balance incorporating the recent
experience of pilots in textbook delivery, rural roads, and school construction carried out in two districts
under the PPRPII project. It is expected that CMF will play a pivotal role as a public forum at the local level
using simplified tools and techniques that are adaptable to the operating contexts, for example, brick
quality, cement-sand ratio, rod size, including social media, mobile Apps, and site visits.
34. Citizens’ Portal for Monitoring Public Spending: The project will explore options to integrate
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innovative ICT tools in the form of a monitoring and feedback portal that would help promote dialogue
to ensure transparency and accountability in public spending vis-à-vis better service delivery. The
information to be fed into the citizens’ portal will be linked to various CE tools including Open Contracting
initiatives under this project and will offer the opportunity to consult data on single processes or of
aggregated statistics regarding procurement and contract management data, as well as the possibility of
downloading the raw data directly for its use and re-use.
35. The unit of intervention for citizen monitoring at the local level under the SSCM approach will be
the Upazilas (sub-district level), which comprise several smaller localities called unions. The target will be
to reach approximately 50 Upazilas by the end of the project representing approximately six or around
each from the eight administrative divisions in the country. SSCM activities will be phased during the
project, starting with five Upazilas in the first year, and adding 15 each per year. The SSCM will be focused
on at least three types of government development projects in roads, education, and health sectors.
Various criteria and approach will be developed to design and implement the SSCM activities both in rural
and urban settings (including few district level upazilas).
36. The citizen engagement strategy will be accompanied by evaluation research, both qualitative
and quantitative in order to reach conclusions on the effectiveness of the citizen engagement strategy to
improve public works outcomes.
a. Evaluating Citizen Monitoring: Impact evaluation will be conducted by applying appropriate

research technique such as randomized control trial to analyze the impact of the SSCM
interventions. Additionally, qualitative research will consist of case studies using rigorous
ethnographic methods to capture political and social aspects, which are critical to the
strategy’s success and but not fully captured using quantitative methods. The qualitative
evaluation research will be conducted during the first year in order to inform the following
phases of the intervention, based on the lessons learned.
b. Public communication and capacity building: communication strategy and the capacity
building programs as described under the other sub-components will be coordinated to
provide required training, knowledge sharing, public awareness and consultation support in
the design and implementation of Citizen Engagement activities.
Component 3.5: Strategic Communication
37. This sub-component will strengthen and institutionalize the systems and functions of different
forms of strategic and stakeholder engagement communication throughout the public procurement
practice in the country. Strategic Communication Program (SCP) will be based on a comprehensive
approach that would contribute to enhancing the overall procurement environment in the country to
promote efficient public spending for better service delivery. While applying the latest communication
tools and techniques, the SCP will focus on a set of objectives primarily to promote behavior change,
public awareness and knowledge sharing, advocacy, and key stakeholder engagement to support
successful implementation of the various elements of the project. These would include communication
support for and around the formation of new public procurement authority, expansion of e-GP, open
contracting efforts and two-way communication to promote Citizen Engagement.
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38. Based on the data from various qualitative and quantitative research, a Communication Strategy
& Action Plan will be developed with a specific set of objectives that would be linked to the overarching
goals of DIMAPPP. The SCP will support all communication and information sharing activities that will be
necessary for the implementation of various components of the project including the expansion of e-GP,
knowledge and capacity building activities, open contracting interventions, and the project
implementation monitoring initiatives.
39. Public Communication systems and structure: while the DIMAPPP communication strategy will
support the implementation of ongoing communication activities implemented by the CPTU, the strategy
will also focus on building the systems, structure, and capacity to undertake necessary strategic
communication functions under the new public procurement authority. This will also help sustain the
citizen engagement efforts to promote accountability in public spending and service delivery across the
country.
40. Some of the key communication activities would include: social media campaign, engagement of
beneficiary groups, public debates, education program, capacity building on the use of data, packaged
problem driven analytical tools, awareness campaign, e-GP orientation for different stakeholder groups
including media and CSOs, media award and fellowship, roundtable discussion and seminars,
collaboration with Information Commission.
41. Public Opinion Research: Based on the baseline developed during the implementation of the
PPRPII, would continue tracking the perception on public procurement reforms in the country. This study
would continue to help improve the e-GP system when necessary while capturing the views of different
stakeholder groups, including government agencies, private sector, citizens, about transparency and
accountability in public spending.
42. New Media and Mobile Technology: The SCP will apply innovative new and social media tools
including mobile and hand-held technologies that could either enhance the accessibility of public
procurement system and processes or promote transparency and accountability in efficient public
spending for better service delivery.
Component 4:
Digitizing Project Implementation Monitoring
43. The component aims to strengthen implementation monitoring of development

programs/projects at national level using digital technology. It is expected to have two sub-components.
Component 4.1: Enhancing Project Management Information System
44. At the national level, program/project implementation monitoring and evaluation is the
responsibility of the Implementation Monitoring and Evaluation Division (IMED) of the Ministry of
Planning. Currently, this is done mostly in manual way with limited use of IT-based on-line framework, not
consistent with the rapidly changing huge development programs’ need of the country. Also, the
methodology to monitor and review implementation program is lagging real time benefits to the
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implementing ministries. Recognizing the deficiencies, the GoB envisages to streamline the process and
making it on-line through a single web-based platform connecting all public sector organization with state-
of-the art technology. The project management information system (PMIS) that is currently at its final
stage of development captures only financial progress. IMED wants to expand the capacity of PMIS to
collect and monitor real time physical implementation data as well as financial. IMED need to conduct
review of the current and future data needs to ensure the e-GP platform and current PMIS system
supports the ongoing and future monitoring and evaluation needs. This will include notification services
to identify any project’s changes as they occur and set schedules for site visits to validate information
submitted.
45. The PMIS will be enhanced digitally connecting all ministries and implementing agencies that will
capture not only financial but also physical progress including the use of geo-tagging at field level. The
work flow of the enhanced PMIS will be designed in such a way that real time physical and financial data
will be automatically captured by the system, so that there will be no manual entry and less chance of
error. Considering the present internet connectivity and power reliability throughout the country, the
enhanced PMIS will have provisions of both online and offline working facilities and periodic data
synchronization. The PMIS will be integrated with the e-GP system including contract implementation in
such a way that as the implementation happens, monitoring can follow. Integration of procurement
planning with budgeting will also be explored. The system will cover data analysis and report generation
for a project, not only the procurement contracts but also other cost element such as operating expense,
block grant, stipend, salaries. The objective of the PMIS is to evaluate the performance of a project, and
for this PMIS will integrate with the national e-GP system only to get procurement contract related data.
PMIS will collect other relevant cost or other project data by its own automated system linked with
different implementing agencies. IMED will be the owner of data generated from PMIS. On the other
hand, national e-GP system covers data analysis and report generation only for procurement contracts.
Component 4.2: Reinforcing Monitoring Skills and Data Analytics
46. The project will be looking to improve the overall capacity for monitoring and evaluating projects
through the digitization of IMED processes and the collection of information from the e-GP system,
contract management system and other electronic sources and systems. It will enhance the capacity
development of their resources to ensure they have the skills and tools to effectively monitor and evaluate
the projects. Currently, IMED has over 1300 projects including the ten fast-track projects to monitor and
evaluate with limited resources and tools available.
47. The following key features either fully or partly as appropriate are expected to be covered:
a. Monitoring Tools and Techniques: The project will examine other monitoring and evaluation
tools and techniques available to see how they may apply to some of the projects in
Bangladesh. Currently, IMED is examining a range of projects across different sectors, each
with their own project requirements. Knowledge of different tools and how they may have
been applied in other countries with similar projects will help strengthen the capacity of
IMED. Also, it will be explored to have modern airborne monitoring techniques to look at
provisioning equipment for photo with geo tagging for project monitoring in the same manner
as using cell phones. It may also be viable to have some project sites setup with IP based
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security camera to allow live remote monitoring as needed. Also, possible areas of e-filing and
mobile Apps will be explored.
b. Monitoring and Guidelines: The project will support to develop new guidelines for different
type projects and develop expert panels to supporting the monitoring and evaluation task and
to re-engineer their approaches to project monitoring and evaluation to make it more
efficient and effective.
c. Data Analytics and Reporting: Through enhanced digitization of the monitoring and
evaluation processes, IMED would enhance public awareness of projects through
communication strategy. A transparent awareness process would allow IMED to be proactive
in project monitoring and evaluation versus reactive after issues are discovered. The
expanded system will generate a wealth of data. IMED will need to consider monitoring and
analyzing new data arising from the new system features of e-GP and of its own. Proper data
analytics will help identify options for different strategies that may require system changes or
revised regulations. In order to obtain full value from the digital information system, the new
on-line reporting mechanisms will need to be developed for various target users, for example,
ministries/agencies, sectoral audits/management, and common public/citizens. Sector-based
reporting is likely to be considered. Such reporting will include, among others, financial,
physical, geo-tagging, satellite imaging for contract implementation.
d. Capacity Development Needs: This will include all physical/infrastructural as well as software
needs and effective training for skill development after review/mapping of IMED’s current
structure and human resources profile. An extensive skill development plan will be put in
place. Necessary additional expertise will be made available in particular reference to IT,
procurement, M&E, and quality checking. Office environment refurbishing,
logistics/equipment will be provided.
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Attachment
List of Selected Public Sector Organizations (SPSO)

The SPSOs has two components: new SPSOs (NSPSO), and previous SPSOs (PSPSO).
A. List of Selected Newly Public Sector Organizations (NSPSO)
Serial Agencies No of PEs
1. Election Commission Secretariat 5

2. Bangladesh Police 180
3. Public Works Department (PWD) 143
4. Department of Public Health Engineering (DPHE) 120
5. Bangladesh Power Development Board (BPDB) 397
6. Directorate of Primary Education(DPE) 156
7. Directorate of Secondary and Higher Education (DSHE) 26
8. Directorate General of Food 89
9. Directorate General of Health Services (DGHS) 118
10. Central Medical Stores Depot (CMSD) 1
11. Department of Agricultural Extension (DAE) 200
12. Department of Fisheries, 81
13. Department of Livestock Services (DLS) 83
14. Directorate General of Family Planning (DGFP) 89
15. Education Engineering Department (EED) 45
16. Directorate of Technical Education (DTE) 123
17. Health Engineering Department (HED) 24
18. Chittagong Water Supply and Sewerage Authority (Chittagong WASA) 16
19. Dhaka Water Supply and Sewerage Authority (Dhaka WASA) 1
20. Bangladesh Inland Water Transport Authority (BIWTA), 150
21. Rajdhani Unnayan Kartripakkha (RAJUK) 2
22. National Curriculum Text Board (NCTB) 2
23. Local Government Institutions under LGD (Pourashava -327; Upazilla Parishad- 491; 888
Zilla Parishad-61; City Corporation- 9)
24. National Sports Council 1
25. Dhaka North City Corporation 1
26. Dhaka South City Corporation 1
27. Comptroller and Auditor General (C&AG) 1
28. Controller General of Accounts (CAG) 1
29. Total 2944
B. List of Previously Selected Public Sector Organizations (PSPSO)

Serial Agencies No of PEs
1. Local Government Engineering Department (LGED) 725
2. Roads & Highway Department (RHD) 370
3. Bangladesh Water Development Board (BWDB) 187
4. Bangladesh Rural Electrification Board (BREB) 18
Total: 1300
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ANNEX 2: IMPLEMENTATION ARRANGEMENTS
Project Institutional and Implementation Arrangements
1. Overall Project Implementation: As part of continuity of the reform activities over the last
decade, IMED/CPTU will be responsible for overall implementation of the project. The Director General
(DG), CPTU will manage all project activities as the Project Director, assisted by 4 Component Directors
(one for each component). IMED/CPTU will carry out this task in collaboration with 32 SPSOs who are the
actual procuring organizations (4 PSPSOs and 28 NSPSOs- list in attachment to Annex 1). In case of CPTU
the relevant three Directors will be designated as the Component Directors. For IMED part (Component
4), the Director responsible for coordinating overall activities including MIS will preferably be the
Component Director. In consideration of the geographical spreading of most local government institutions
across the country and previous proven experience of implementing e-GP, LGED, through a Memorandum
of Understanding (MOU) with the CPTU, will implement expansion of the scope of e-GP to these
institutions.
2. The existing DG will continue to lead CPTU until the new Authority is formed. Should any need
arises to substitute the DG prior to the formation of the proposed Authority, the Government will ensure
appropriate substitution acceptable to IDA. CPTU is expected to be transformed to the proposed Authority
with strengthened structure towards the end of second year of the project. Its formation, structure, and
key positions will be agreed with IDA. Once the Authority is formed, most of the existing officials/staff of
CPTU are likely to be absorbed in it. At that time, the implementation responsibility will be shifted to the
proposed Authority, and the project may require restructuring. As regards e-GP, any change in its current
management and structure including the possible formation of corporate body, if happens, will be agreed
with IDA.
3. In the last three years, the e-GP has been mostly operationalized from invitation of bids up to the
award of contracts. Now, e-GP will be operationalized in the NSPSOs while the e-contract management
module will be implemented by the PSPSOs. Among the NSPSOs, the Local Government Division (LGD)
alone has the largest number of local government institutions (LGIs), that is, about 888 procuring
organizations covering municipalities, zilla parishads (district councils), upazila parishads (sub-district
councils), and nine city corporations but excluding two large city corporations of Dhaka. LGED is the
leading organization in implementing e-GP at decentralized level in the last few years with its offices up
to the sub-district level. As such LGED, under appropriate delegation, will implement operationalization
of e-GP (bid invitation to contract award) in all LGIs, excluding the two city corporations in Dhaka.
4. Governance Structure (PSC, PCT, PIT): To oversee and review the project activities in a
streamlined manner among all involved agencies, a three-tier governance structure has been put in place.
There will be a Project Steering Committee (PSC), headed by the IMED Secretary, with heads of SPSOs or
their authorized representatives and members of relevant ministries/organizations as its member. PSC
will oversee the progress and provide implementation policy guidance on a quarterly basis. To coordinate
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the project activities, there will be a Project Coordination Team (PCT), headed by the Director General of
CPTU, and will comprise officials from CPTU, IMED and one Project Monitoring Coordinator (PMC) from
each SPSO (not below the rank of Executive Engineer or equivalent) and members of relevant ministries
and organizations. The PCT will meet every month, and report quarterly to the PSC in its function. At the
SPSO level, the PMC will be responsible for coordination and implementation of all actions of the SPSO
for the entire project operation including monitoring and evaluation of that particular SPSO. In order to
perform this function, each SPSO will have a Project Implementation Team (PIT), headed by the PMC, and
comprise of a maximum of two other officials on the basis of their involvement in procurement functions
of the respective SPSO.
5. Strengthening support to CPTU: Given the fast expansion of the e-GP and the need for more
efforts in capacity development, while CPTU is expected to be transformed to an Authority over time in
about two year time, additional strengthening measures will be put in place for efficient implementation
of the project and managing the e-GP function. Besides the 4 Component Directors, CPTU will be assisted
by a set of highly skilled professionals. There will be an experienced Principal Project Management Expert
to assist the DG in day to day tasks and responsible for overall management of all project activities using
IT-based project management with key milestones. Other professionals will include: Public Policy
Implementation Advisor, Procurement Consultant, Financial Management Consultant,
Communications/Citizen Engagement Consultant. For e-GP, CPTU currently has Sr. System Analyst, Sr. e-
GP Advisor, System Administrator, Call Center Manager, and Security Specialist. Until any new corporate
structure is in place, CPTU will be further strengthened with a set of highly skilled IT professionals, for
example, Database Administrator, Application Administrator, Programmers/Developers to monitor the
functions of the outsourced/third party in managing the e-GP operations and concurrently develop
necessary skills to manage the system of its own.
6. Strengthening support to LGED: The PMC of LGED will also act as the LGD e-GP Focal Person,
responsible for e-GP implementation in all LGIs under LGD, except the two city corporations of Dhaka. In
order to ensure fast and streamlined scaling up of e-GP in the LGIs (covering 888 procuring organizations),
the LGED will be provided with necessary additional supports in terms of IT infrastructure, office logistics,
and human resources/skilled professionals under an MOU with CPTU. The needed project support will
extend up to the upazila level (sub-district). It is expected that LGED will have 22 dedicated resource
center, equipped with equipment/logistics/staff.
7. Implementation of capacity development and professionalization: Because of the extensive

nature of the capacity development/professionalization program, it will have following key elements:
a. Main capacity development/professionalization consultant A competitively selected

international training institute/organization, under coordination with CPTU, will implement
large part of the capacity development program including professionalization using a twinning
arrangement with a designated local institute, Engineering Staff College Bangladesh- ESCB.
Possible higher education program leading to Masters will also be included in it. International
organizations may include: International Training Center of the ILO, Turin, Italy (ITC-ILO)
and/or Nottingham University/UK and/or University of Tor Vegata, Rome or similar other
organization.
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b. Core competence program: As continuity of the existing program, the courses for
international procurement accreditation program will be conducted by the Chartered
Institute of Procurement and Supply (CIPS), UK jointly with the recognized study center of
CIPS in Bangladesh, specifically with BRAC Institute of Governance and Development (BIGD)
under the BRAC University, and ESCB affiliated with The Institution of Engineers Bangladesh
(IEB). Also, other possibilities will be explored. This course will offer Member of CIPS (MCIPS).
8. Implementation of e-GP M&O: In light of the unique nature of the e-GP system that has been
specifically developed for Bangladesh and taking into account the need for initial sustainability of such a
high-tech system with possible enhanced features within the country operating environment, IMED/CPTU
will maintain the existing arrangement with the consultant for future management and operation of the
system until there is any change in its existing operating structure or any corporate is formed.
9. Implementation of citizen engagement/communications: Given the previous proven track

record under the ongoing PPRPII, BIGD will continue to provide technical services for implementing citizen
engagement in public procurement at the identified upazilas (sub-districts in both urban and rural setting).
Similarly, as continuity of the communications campaign in PPRPII, Bangladesh Center for
Communications Program (BCCP) will provide the consultancy support for carrying out communications
campaign as part of social accountability and behavioral change, with specific reference to the
Government Tenderers’ Forum (GTF). Concurrently, other IT-based technology for communications will
be explored.
10. Implementation of IMED’s on-line management system: A highly skilled consultant team (firm)
will assist IMED in its digitization of project implementation monitoring, taking into account the existing
initial set up of its recently developed project management and information system. All public sector
organizations are expected to be connected with IMED on-line, with basic data input at the agencies’ level.
11. Implementation of M&E: IMED/CPTU will be assisted by a competent consultant (firm), selected
competitively, to undertake the monitoring and evaluation activities of the project based on the result
framework and its associated indicators. A large part of the data is expected to come through the e-GP-
system, however, it will need extensive and robust framework to collect other data relating to capacity
development.
Financial Management
12. Following Bank’s operational policies and guidance, the financial management capacity
assessment of CPTU has been carried out. The assessment included current financial management
practices followed by the development projects in Bangladesh with the aim to evaluate risks and its
mitigation measures. Based on the assessment, overall financial management risk is assessed to be
“Substantial” mainly because of inadequate accounting and financial reporting capacity of CPTU that
requires strengthening. In the absence of core financial management specialist in CPTU, for ongoing
PPRPII CPTU hired FM consultants to assist the project for day to day financial management. Also, in order
to implement certain e-GP related activities of the project for local government institutions under LGD,
LGED will be engaged for financial operations at decentralized level. In addition to internal audit, in the
proposed project, the Bank in consultation with CPTU will explore possible implementation of an ERP
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system to automate most part of the financial management function. However, the financial management
performance of PPRPII has been moderately satisfactory and a gradual improvement was noted in the
financial management operation of the project. As of now, there is no pending audit report.
13. Planning and Budgeting: All development projects in Bangladesh practice a uniform budgetary
system to get funds allocated for its annual operation. The ongoing PPRPII has been maintaining this
standard practice and it was agreed that a budget will be prepared and maintained for the entire term of
the Project, and detailed budgets for each fiscal year will also be produced to provide a framework for
financial management purposes. The annual budget will be prepared on the basis of the procurement
plan and any other relevant annual work plans. These budgets will be monitored periodically to ensure
actual expenditures are in line with the budgets, and to provide input for necessary revisions.
14. Internal Control:
a. Filing and Record-Keeping: In accordance with the Bangladesh Government financial rules and
regulations, implementing agencies of development projects must preserve financial records
for further verifications. CPTU has been well preserving all the financial records so far relating
to PPRPII and it was agreed that CPTU will continue to preserve all procurement records and
financial records/documents in accordance with the provisions of the PPA 2006. These
records need to be made readily available on request for audit/investigation/review by the
Government and the Bank. All project-related documents need to be filed separately to
facilitate internal and external audits, as well as reviews by the Bank.
b. Financial Management System: Currently, CPTU is maintaining manual book keeping system
which is may be subject to errors and mistakes. Unlike system generated financial reports,
the manual preparation of financial report is clumsy and time consuming, leading to possible
delays especially considering the growing operation of CPTU in the future. However, cash
basis accounting system has been followed by CPTU although several advance payments was
also seen in the financial records, which means a modified cash basis of accounting is
followed. This modified system of accounting and reporting requires a robust automated
system, such as an ERP. It was discussed and agreed with the CPTU that initiative will be taken
under this project to build this capacity within CPTU so that the financial reports can be
prepared accurately and on a timely manner.
c. Internal Audit: The purpose of the internal audit is to ascertain the effectiveness of
expenditure, ensure adherence to the Government/Implementing agencies rules and
regulations in the payment process, and management of assets and funds of the project. Since
there is limited internal audit capacity in the implementing agency, a professional
accounting/auditing firm will be hired to conduct internal audit of the project at least twice
in the life time of the project. Going beyond the financial aspects, the internal audit would
also look into the effectiveness and efficient use of project resources, and conduct an
independent appraisal of CPTU and other partners in the implementing arrangements. The
key internal audit function will be: (i) ascertaining whether the system of internal checks and
controls for preventing errors, fraud and corruption within the organization, is effective in its
design as well as operation; (ii) ensuring reliability of accounts and other records, as well as
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ensuring that accounting methods provide the necessary information for the preparation of
correct financial statements; (iii) determining the extent to which the project entity’s assets
are safeguarded from any unauthorized uses or losses; (iv) undertaking physical verification
of assets/goods; and (v) establishing whether administrative and financial regulations of the
Government and instructions issued by the Treasury as well as donors’ legal requirements are
complied with.
d. Assets and Payments: All project payments will be made by the PD using the banking system
(except for small petty cash expenses). The project will maintain assets tracking system for
ensuring annual physical verification and reporting on assets procured under the project. An
annual verification of all project assets shall be carried out and a summarized report shall be
shared with the Bank by August 30, each year.
15. Governance and Oversight Arrangements:
a. External Audit: The project will also continue to be audited by Foreign Aided Project Audit
Directorate under C&AG. The annual audit reports will be submitted to the Bank within six
months from the end of each financial year and this will be monitored in the Bank system
(PRIMA). The audited financial statements will be made available for public disclosure. If there
are any audit objections, it will be the responsibility of the Project Director to follow up and
take remedial actions, with the assistance from the Financial Management Specialist and the
program implementing sections relevant to the audit objections.
b. Audit Observation Resolution Committee: An audit observation resolution committee will be

established at the PMU level in order to follow up all audit issues on a regular and systematic
manner. This committee will be comprised of the individuals who are not engaged with any
procurement or financial management function of the project, preferably, outside from the
project management. This committee will have at least two meetings per financial year to
review the audit reports and follow up on audit recommendations.
16. Specific Financial Management arrangements:
a. Staffing: The Director General, CPTU will be responsible for the overall financial management
of the project and will also provide overall guidance/directions on a day to day basis to the
Financial Management Consultants of the project. CPTU will hire two FM
Consultants/Specialists within three months from the date of signature of the financing
agreement. Senior Financial Management specialist will be engaged in financial reporting and
payments, and on the other hand, the Junior Specialist will be responsible for ensuring
appropriate documentation and book keeping. CPTU will share with the Bank the terms of
reference of these Specialists for its review and concurrence.
b. Accounting and Reporting: CPTU will maintain a satisfactory financial management system,
including keeping all the mandatory books of accounts, preparing quarterly and yearly
financial statements. CPTU will submit quarterly IUFRs to the Bank within 45 days from the
end of each quarter. CPTU will prepare the financial information directly produced by the
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accounting software. As it may take time to establish an ERP, in order to aid the book keeping
and financial reporting, CPTU will procurement and install an off-the-shelf financial
management software for the project within three month from the date of signature of the
financing agreement.
Disbursements
17. Basis of Disbursement and Flow of Funds from Designated Account (DA): The project will
continue to use Interim Unaudited Financial Reports (IUFRs) as a basis for disbursements. The Bank will
disburse fund to CPTU through a Designated Account (DA) in the form of Convertible Taka Special Account
[CONTASA] to be established in a branch of a commercial bank acceptable to the Bank. The commercial
bank need to have adequate experience, manpower, network and authority to process transactions on a
fast track basis. CPTU will follow the approved government procedures governing the establishments of
DA and be responsible for their own DA. An operational account will also be opened in a commercial bank,
acceptable to the Association, to manage the funds to be transferred to LGED from the DA in order to
perform part of activities relating to LGED and other local government institutions under project
component 2. No fund transfer to other agencies is expected. The operational account will be reconciled
on a timely basis and refunded [un-used] on or before the actual closing date of the project. The transfers
to the operational account will be considered as advance to LGED and such advances will be adjusted
upon satisfactory documentation and reporting. LGED will be liable to maintain satisfactory financial
management system including, a separate book of accounts and financial reports and will also provide all
necessary evidences, for auditing purposes. One FM consultant will assist LGED in these functions. The
project will have provision of retroactive financing of about US$5 million to cover expenditures related to
some capacity development actions and management and operation of the e-GP system that are expected
to be incurred before effectiveness of the credit (preceding 12 months).
18. The following table shows the share of financing:
Financing table with disbursement categories

Project financing by category Total GOB IDA IDA Financing
US$ million US$ million US$ million (percent)
1. Goods (excluding vehicles), non- 52.00 - 52.00 100
consulting services, consultants
services (except for Part 2.1(e) of
the Project), and training cost of
the project
2. Operating costs 3.00 2.00 1.00 33
3. Consultants’ services for O&M of 5.00 3.00 2.00 40
e-GP system
Total 60.00 5.00 55.00
Note: Part 2.1(e) of the Project involves operation, management, and maintenance of the e-GP system.
Procurement
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19. General: Procurement would be carried out in accordance with the Bank’s Procurement
Regulations for IPF Borrowers (the “Procurement Regulations”), July 2016. As per requirement of the NPF,
CPTU is finalizing the PPSD in consultation with the Bank staff.
20. Procurement Significance: Out of the total project cost of US$60 million, IDA contribution is
US$55 million. It is expected that about US$55 million will be expended through procurement, largely
involving consulting services of about US$30 million, followed by goods of about US$15 million, and non-
consulting services about US$10 million.
21. Procurement Responsibility: IMED/CPTU is the implementing agency (IA) who will be responsible
for all procurements, excepting the local government institutions (LGIs) under the local government
division (LGD). All procurements of the LGIS will be managed by LGED who has relevant experience and
linkage with LGIs (municipality, upazila parishad or sub-district council, and zilla parishad or district
council, all city corporations except the two in Dhaka.). For this purpose, IMED/CPTU will have a MOU
with LGED.
22. Procurement Capacity and Risks: The CPTU has wide experience of over 14 years in implementing
two IDA financed project, with no major issues, using Investment Project Financing (IPF) and IPF with
Disbursement-Linked Indicators (DLIs). CPTU has also the experience in handling government funded
procurement. Currently, there is no major complaint received in the Bank funded projects. All the key
staffs of CPTU received training on country’s procurement laws (i.e. Public Procurement Rules, 2008 (PPR))
in the past few years. There are four key strategic services contracts that are critical in terms of technical
complexity and contract value. CPTU may face challenges in sourcing and implementing these key
contracts. On the other hand, though procurement will be managed centrally by LGED who has the
relevant procurement experience but it will be challenging for them to handle the requisition of goods
from around 900 procuring organizations under the LGD and ensure the delivery of goods across the
country. Considering these challenges and country’s overall fiduciary environment, the procurement
specific risk rating is “Substantial” which contributes to the similar risk rating of overall integrated fiduciary
risk (“Substantial”). During the life of the project, when CPTU will be transformed to an Authority, a
separate assessment, if required will be made.
23. Managing Procurement Risks: In order to minimize the procurement associated risks, the
following measures have been agreed upon with the implementing agencies:
23.1 Specific measures
a. Project Procurement Strategy for Development (PPSD) and Procurement Plan: The
preparation of PPSD by the implementing agency is final, taking into account the
nature and volume of procurement, prevailing market conditions, activity level risks.
Concurrently, based on the project details and strategy laid out in the PPSD, CPTU
prepared a draft procurement plan for initial 18 months as well as the Technical
Assistance Project Proposal (TAPP) required for GoB’s internal processing. The
Procurement Plan will be updated at least annually. For each contract to be financed
under the project, the different selection methods for procurement, market
approach, contracting arrangement, estimated costs, prior review requirements and
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time frame is agreed between the implementing agencies and the Bank in the
Procurement Plan;
b. Introducing STEP system: Systematic Tracking of Exchanges in Procurement (STEP) is

introduced to prepare and manage procurement plan and procurement transactions
under the project. The procurement plan will be updated semi-annually (or as
required) using STEP system which will help both Agency and The Bank monitor
performance, manage and store related documentation for all steps in a procurement
activity;
c. Bid/Proposal Evaluation Committee: The implementing agencies will ensure that the
bid/proposal evaluation committees have necessary expertise depending on the type
of contract and are formed in a manner acceptable to the Bank with its prior
concurrence, including any alterations in composition;
d. Electronic Government Procurement (e-GP): Request for Bids (Open-National)

contracts will use the e-GP system of the country for national competitive bidding
(NCB);
e. Procurement consultant: To partly mitigate procurement associated risks, a full time

procurement consultant will assist CPTU in conducting its procurement. Similarly,
LGED will have one part-time consultant to assist them. The procurement
consultant(s) will be mandatory member in bid/proposal evaluation committee.
f. Integrated fiduciary reviews/procurement post reviews: Each year the Bank will carry
out integrated fiduciary/procurement post reviews of a sample of contracts selected
depending on the associated risks; and;
g. Due-diligence measures (others): Other measures include: (a) all bid evaluation
reports will include verification of recommended bidders’ post-qualification
information; (b) make bidders aware about fraud and corruption issues through
letters and at pre-bidding/proposal meetings, as applicable; (c) preserve records and
all documents regarding procurement (including correspondences with the potential
bidders as well as complaints/clarification requests) to facilitate smooth post
procurement reviews; and (d) publish contract award information at the Central
Procurement Technical Unit (CPTU) and the respective agencies website within two
weeks of contract award (and in UNDB online for international contracts.
23.2. Special Measures for Internationally advertised contracts:

a. International consultancy packages (IT/e-GP): CPTU will have at least one
international technical expert in the proposal evaluation committee for all
international consultancy packages relating to e-GP/IT; and
b. Additional due diligence for local agent/sub-contractors/sub-consultants:
Implementing agency will undertake extra due diligence on the local agents and sub-
contractors/sub-consultants including declaring their commissions. In addition,
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The World Bank
provision will be made in the bidding documents requiring the bidder to specifically
mention the nature of tasks that such local agent will perform during the
procurement process and contract execution.
24. Selection methods for procurement of goods, non-consultancy services: Except as otherwise
agreed in the Procurement Plan, goods and non-consulting services may be procured on the basis of
Request for Bids (RFB: Open-International) procurement method. As allowed in the Bank’s Procurement
Regulations, other selection methods, market approach, and contract arrangement will be agreed in the
Procurement Plan on a case to case basis.
25. Selection methods of procurement of consultants’ services: The Procurement Plan will specify
the selection method, market approach (International/National, Open/Limited/Direct) and contract
modality for each of the selection of consultant following the Bank’s Procurement Regulations.
26. Use of Standard Procurement Documents: For all procurements under the project, the Bank’s
Standard Procurement Documents shall be used unless otherwise other documents is specifically agreed
with the Bank. For example, model tender documents (MTD) agreed with the Bank (Open- National).
27. Prior review Thresholds: The Procurement Plan shall set forth those contracts which shall be
subject to the Bank’s prior review. All other contracts shall be subject to post review by the Bank.
28. Major Procurement Activities: There are likely to be four major contracts: (i) enhancing e-GP
system including upgradation of software modules; (ii) capacity development and professionalization; (iii)
core competence courses; (iv) e-GP system O&M (Operations and Maintenance); and (v) digital
monitoring of development projects implementation. The capacity development and core competence
consultancies will be implemented through twinning arrangements of local institutes(s) with international
organization/institutes with focus on institution building.
29. Incremental Operating Costs: Incremental Operating Cost means the reasonable costs required
for the day-to-day coordination, administration and supervision of Project activities, including leasing
and/or routine repair and maintenance of vehicles, equipment, facilities and office premises, office rent,
office supplies, utilities, consumables, communication expenses, translation, printing, photocopying and
postal expenses, bank charges, advertising expenses, insurance, costs of clearing, forwarding, inspection,
survey and transportation of goods, Project-related meeting expenses, Project-related travel, provided
that such Incremental Operating Costs are paid to the eligible recipient through banking system (except
for petty cash expenses following Recipient’s existing policy); but excluding salaries, per diem, fuel,
allowances and honorarium and/or other sitting allowances and honorarium of any other nature.
30. Training Costs: Training cost means the reasonable costs required for the participation of
personnel involved in training activities, conferences, seminars and workshops under the Project which
have been approved by the Association in writing on annual basis, including: (a) travel, hotel, and
subsistence costs for training, conferences, seminars and workshop participants provided that such
allowances are paid directly to the eligible recipient using the banking system; and (b) costs associated
with rental of training, conference, seminar and workshop facilities, preparation and reproduction of
training, conference, seminar and workshop materials, costs of academic degree studies, and other costs
directly related to training course or workshop preparation and implementation, but excluding allowances
and honorarium of any other nature.
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Environmental and Social (including safeguards)
Environment:
31. The project will procure equipment needed mainly for e-GP and computerization (desktop,
laptop, servers, office equipment). The project is located at Dhaka and does not include any
construction/reconstruction/extension of infrastructure. The Project Director will be responsible to
ensure that the following ECoP will be included in the bidding document and the ECoP for e-waste disposal
is duly followed for the disposal.
32. E-waste applies to consumer and business electronic equipment that is near or at the end of its
useful life. These products can contain heavy metals like cadmium, lead, copper, and chromium that are
toxic and can contaminate the environment. If e-waste is not recycled and disposed of in an
environmentally prudent manner, it can pose serious threats to both human health and the environment.
33. Examples of electronic waste include, but not limited to:
a. TVs, computer monitors, printers, scanners, keyboards, mice, cables, circuit boards, lamps,
clocks, flashlight, calculators, phones, answering machines, digital/video cameras, radios,
VCRs, DVD players, MP3 and CD players;
b. Kitchen equipment (toasters, coffee makers, microwave ovens);
c. Broken computer monitors, television tubes (CRTs); and
d. Computer Servers.
34. Current Practice in Bangladesh: There is no secure landfill in Bangladesh for hazardous waste
disposal. The current practice is the e-wastes are sold to the informal scrap collectors who buys e-waste
directly from the generators. The informal scrap collectors either sells it to the second hand market,
repairs and sells it again to consumers or secondhand shops, or sells them to the bulk collectors and
manual dismantlers. Once they are dismantled, the different components are sent to different places
around Dhaka for further processing, recycling and smelting activities. At the next step the precious and
special metals are extracted from the component. The manual dismantling and recycling stages include
processes like open burning and acid treatment.
35. Environmental Codes of Practice for E-waste Disposal
a. E-Waste will not be disposed in the trash or recycling bins.

b. The e-waste cannot be sold directly to informal scrap collectors. The bidders will provide an
e-waste Management Plan which details arrangements for the collection, transport, storage
and disposal of the wastes which needs to be endorsed by the Bank.
c. Lifting and moving equipment needs to be undertaken with care so as to avoid personal and
environmental harm. Key principles include:
(i) Use proper lifting techniques to avoid back injuries
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The World Bank
(ii) equipment casings can be brittle and break easily; they should be handled carefully
to avoid an acid or metal contact
(iii) Make sure that the equipment is properly secured and upright in the vehicle
(iv) If an equipment shows signs of damage to the terminals, case or cover, replace it with
a new one before handling or transferring for disposal.
d. If reuse of equipment is not chosen or possible, proper Personal Protection Equipment (PPE)
will be used for dismantling and recycling. Open burning will be avoided. Safe incinerator will
be used for burning.
e. Acid treatment for recycling will be carried out in a controlled environment.
f. Some empty equipment cases like for battery cases must be disposed of carefully because
they can still contain significant amounts of lead. The empty cases should then be wrapped in
heavy duty plastic or encapsulated with concrete before disposal and can be disposed in the
sanitary landfills with the permission from DoE. Without DoE’s permission those will not be
disposed in the sanitary landfills. The concrete and plastic serves the purpose of ensuring that
lead will not leach out and become mobile in landfill leachate, thus reducing the
environmental risk.
Social:
36. The project will not require any land acquisition or undertake any civil construction. No
displacement of people (with or without title) from public or private lands, or any negative impact on
livelihoods on people or communities will take place due to the project. There will be no direct impacts
on small ethnic groups. Hence the Bank’s neither OP 4.12, Involuntary Resettlement nor OP 4.10
Indigenous Peoples, is triggered for the project, which has been assigned EA category "C".
37. The project is firmly grounded in terms of citizen engagement with a dedicated sub-component
involving direct contribution of the beneficiaries. This is planned to be implemented through a series of
activities that, among others, include: the citizen/beneficiary engagement in monitoring public
procurement at local level; continuity of the ongoing Public-Private Stakeholders Committee (PPSC); and
government-tenderers’ forum (GTF). Under the project about 50 upazilas (sub-districts) have been
identified where citizens monitoring of public procurement will be implemented, with specific reference
to contract implementation covering rural roads, primary school construction/rehabilitation, and school
textbook delivery. This citizen engagement approach with an extensive communication campaign is
expected to generate deep interest in the community to take the reforms to the grassroots level and is
concurrently making the public procurement officials accountable to the citizens.
Gender:
38. The project is expected to contribute positively to gender inclusion perspectives. The citizen
engagement groups at the selected sites will closely follow up appropriate gender balance, with special
emphasize on empowering rural women/mothers to raise their voices for matters like textbook delivery,
distribution of medicines, rural connections. Concurrently, the prospective enhancement of e-GP across
all public sector organizations is likely to create opportunities for the computer-literate female workforce
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The World Bank
for working at the computer cafes and/or data processing specifically in reference to the e-GP, bidding
community, in addition to the female workforce at the procuring entity level. Furthermore, the capacity
development program under the project has provided considerable opportunity to the gender aspects
and evidence has shown increased level of participation of the female candidates over time.
Monitoring and Evaluation
39. A robust framework for project monitoring and evaluation (M&E) will be put in place. Project
outcomes/results will be measured using the result framework indicators, both at the PDO and
intermediate outcome level. For M&E, the CPTU will use the technical support of a team of consultant
(firm) who has proven track record of conducting independent M&E work. While a substantial part of the
data will be obtained from the e-GP system, the other data concerning professionalization, capacity
development, citizen engagement will need to be collected from the field. The consultant will prepare
semi-annual reports on the overall project M&E including progress on the results indicators for review by
the Bank. Results monitoring in DIMAPPP covers: (i) procurement performance at the SPSOs; (ii) capacity
development by the NSPSOs; (iii) e-contract management by the PSPSOs; (iv) development project
implementation monitoring by IMED; and (v) citizens monitoring of public procurement at the designated
areas. Impact evaluation features are also likely to be built-in as part of the M&E framework to register
the impact of e-GP system (e-tender, e-contract management, geo-tagging facility), citizen engagement
and open contracting. A collaboration in between CPTU and academia will work together to build the M&E
framework including necessary provisions for impact evaluation.
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ANNEX 3: IMPLEMENTATION SUPPORT PLAN
Strategy and Approach for Implementation Support
1. A robust strategic framework and approach for implementation support plan (ISP) has been
developed based on the nature and type of risks as derived from SORT that might occur during the
implementation of the project. Following are the key elements of the strategy: (i) Bank’s multi-sectoral
task team with appropriate skill mix required to carry out the project due diligence and provide technical
advice to the client; (ii) availability of qualified staff within the Bank(and need to rely on consultants),
demand and work load of each task team member; (iii) quality and on-time technical and fiduciary review
including joint visits and assessments to cross-reference physical progress, payments to
contractors/consultants, disbursement; (iv) specific actions/inputs needed to monitor implementation of
mitigation measures identified through the risk assessment process; (v) inputs needed to monitor project
performance and evaluate results; (vi) role of other stakeholders including development partners in
supporting project implementation; (vii) direct opportunities and inputs to interact with project
beneficiaries.
2. Bank team skill mix: The Bank’s has put in place a robust multi-sectoral task team comprise of
different skill mix from various Global Practices (GP) and departments within own GP including
consultants. Skill sets cover public sector, governance, procurement, financial management, finance, e-
GP, IT system security, Big Data/Open Contracting, communications, citizen engagement, environment,
legal, and social and urban. To ensure timely input, all Bank staff time has been worked out taking into
account the work load and availability.
3. Managing and supporting the process of enactment of new law: The need for enactment of a
new law in transforming CPTU to an Authority may take time and is a risk given its sensitivity. Recognizing
the risk, following Bank’s assistance and task team advice, an experienced firm, comprising experts from
public policy and strategy, legal, business modelling, and IT-based solutions, has been working under the
ongoing PPRPII. Professionals of the firm are closely in consultation with the Bank task team to ensure
framing of an appropriate law. To create ownership, there had been series of workshops and consultations
concerning the restructuring proposal with presence of most key ministry senior civil servants and other
stakeholders including university/academia, private sector, civil society, and development partners (WB,
ADB, DFID). The firm has made substantial progress in preparing the organogram and other legal
documents for the Authority. For the e-GP system, it also prepared a draft corporate structure, should
this option is chosen by the government in future. There is a task force under the Principal Secretary to
the Prime Minister who is closely monitoring the e-GP progress and this restructuring process.
4. Political economy/stakeholder management support: Despite procurement reform being a

highly charged and challenging agenda, because of the persistent and sustained efforts of the Bank team
in strategically engaging different stakeholders in the process starting with the policy makers down to the
beneficiaries at the grass root levels, including the private sector and bidding community. Concurrently,
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as of now it has been enjoying higher level commitment from the political authority. Building upon the
successful experience, citizen engagement will be strengthened further and scaled up at the sub-district
level, beyond the existing PPSC and GTF. The Bank team has been strengthened with specific skills in the
field of citizen engagement, Big Data, Open Contracting, and strategic communications including
consultants’ support.
5. Technical design implementation support: The main principle followed is the “flexibility” in
technical designs recognizing the variation in need during project implementation period. Key parts
include: (a) staffing of the proposed Authority; (b) updating/implementing the existing e-GP system with
enhanced features; (c) designing/implementing IMED’s on-line implementation monitoring tool for the
development projects; (d) designing/implementing open contracting in conjunction with citizen portal;
and (e) developing professionalization/capacity development modules and its implementation. The task
team is expected to assist the government in identifying highly skilled IT professionals for the e-GP system
as and when required. For enhancement of e-GP system/on-line implementation
monitoring/professionalization/Open Contracting, the task team’s specific staff/consultant will provide
necessary assistance and advice to the client in framing the TORs, reviewing the selection process of
consultants, and implementation. During implementation, every six months, there will be implementation
support missions including site visits to review not only the physical progress but also payments to
contractors, disbursement, and timeliness of actions.
6. Fiduciary assurance support: The Bank task team is managed by a Lead Procurement Specialist,
with the assistance of procurement and financial management specialists to ensure application of due
diligence in all aspects of fiduciary environment with appropriate internal control environment at the
clients end. With the Bank’s new Procurement Regulations in place, considering the risk environment and
based on the agreed procurement plan, all major contracts are made subject to prior review by the Bank.
The Bank will provide specific and dedicated training to the client staff on the new Framework. On the FM
side, the control environment includes: maintaining main project account in CPTU, with a sub-account in
LGED; project accounting management using an accounting software; putting in place a FM consultant in
client team; IUFR; and regular reviews of FM actions. Besides, there will be annual integrated fiduciary
reviews by the Bank team covering procurement, FM, and possibly technical.
7. Project performance and results evaluation support: Project performance and results evaluation
is based on the results monitoring framework. A large part of the performance indicators will be calculated
from the e-GP system generated data. Provision has been made for semi-annual progress reports by the
client that are expected prior to commissioning of each supervision mission. The task team will review
them and during mission will verify those outputs/outcomes of the report either reviewing the e-GP
system data input/output or validating the methodology for field level data collection/inputs.
Implementation Support Plan and Resource Requirements
8. Below provides estimates on the resource requirements, including budget; skill mix; number of
staff-wees and number of trips in a table format. This table is expected to be the basis of resource
allocation for implementation in each fiscal year, with necessary adjustments as it may warrant from to
time depending on the circumstances and risks during actual implementation.
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Time Focus Skills Needed Resource Estimate Partner Role
Designated account, IT, e-GP, FM,

First twelve months system designs, procurement, US$ 200,000 Consultation
procurement communication
Operationalization, OC, IT, FM, CE,
12-48 months professionalization, procurement, US$ 175,000/ year Consultation
progress reviews social, communic.
Skills Mix Required
Skills Needed Number of Staff Weeks Number of Trips Comments
Project management 100 8 Staff (Team Lead- 1)

IT/e-GP 60 30 Staff/consultants (3)
Open contracting 30 24 Staff/consultants (2)
M&E 30 10 Consultant (1)
CE 30 10 Staff (1)
Procurement Reform 150 4 Consultant (1)
Procurement 50 4 Staff (1)
FM 30 2 Staff (1)
Disbursement 10 1 Staff (1)
Legal 5 2 Staff (1)
Communications 100 10 Staff/consultant (3)
Environment 10 2 Staff (1)
Social 10 2 Staff (1)
Partners
Name Institution/Country Role

Asian Development Bank Bangladesh Consultation
DfID/UKAid Bangladesh Consultation
USAID Bangladesh Consultation

CIDA Bangladesh Consultation
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The World Bank
…………… END
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Document of

The World Bank

INTERNATIONAL DEVELOPMENT ASSOCIATION

PROJECT APPRAISAL DOCUMENT

IN THE AMOUNT OF SDR40.2 MILLION

PEOPLE’S REPUBLIC OF BANGLADESH

June 29, 2017

Governance Global Practice

(Exchange Rate Effective April 30, 2017)

Currency Unit = Bangladesh Taka(BDT)

ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank

Regional Vice President: Annette Dixon

Regional Vice President: Annette Dixon

Is this a regionally tagged project? Country(ies) Financing Instrument

[ ] Situations of Urgent Need of Assistance or Capacity Constraints

Proposed Development Objective(s)

Component Name Cost (US$, millions)

Restructuring CPTU and Institutionalizing e-GP 9.00

Enhancing Digitization of Public Procurement 28.00

Professionalizing Procurement and Citizen Engagement 18.00

Digitizing Project Implementation Monitoring 5.00

Borrower : People's Republic of Bangladesh

Implementing Agency : Implementation Monitoring and Evaluation Division

PROJECT FINANCING DATA (US$, Millions)

[ ] Regional Projects [ ] Regional Projects

Financing (in US$, millions)

Expected Disbursements (in US$, millions)

Fiscal Year 2018 2019 2020 2021 2022

Annual 2.30 6.45 11.49 15.77 18.99

Practice Area (Lead)

Contributing Practice Areas

Climate Change and Disaster Screening

Does the project plan to undertake any of the following?

SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)

Risk Category Rating

3. Sector Strategies and Policies  Low

Does the project require any waivers of Bank policies?

Safeguard Policies Triggered by the Project Yes No

Environmental Assessment OP/BP 4.01 ✔

Financing Source Sections and Description

Recurrent: Yes; Due Date: N/A; Frequency: Throughout

Financing Source Sections and Description

Recurrent: Yes; Due Date: N/A; Frequency: Throughout

Financing Source Sections and Description

Recurrent: Yes: Due Date: N/A; Frequency: Throughout

Financing Source Sections and Description

Recurrent: Yes; Due Date: N/A: Frequency: Throughout

Financing Source Sections and Description

Implementation Arrangements/Central Procurement

Recurrent: Yes; Due Date: N/A; Frequency: Throughout

Financing Source Sections and Description

Recurrent: No; Due Date: By no later than 24 months

after Effective Date; Frequency:

Financing Source Sections and Description

Recurrent: No; Due Date: By no later than 3 months

Financing Source Sections and Description

Recurrent: Yes; Due Date: N/A; Throughout

I. STRATEGIC CONTEXT ...................................................................................................... 1

G. Other Safeguard Policies (if applicable) ............................................................................ 17

Table 1: Social Indicators for Bangladesh and Comparators

B. Sectoral and Institutional Context

C. Higher Level Objectives to which the Project Contributes