Adp formulation and planning process 17 07-2018 planning academy

By
Dr. Md. Shamsul Arefin
Secretary
Anti-Corruption Commission
Date: 17 July 2018
The Annual Development Program
Friday, July 20, 2018 Dr. Md. Shamsul Arefin 1

Annual Development Programme (ADP)
 Operational document of the GoB
 Includes all types of GoB funded and Foreign Aided Projects
(both ongoing and newly included).
 The ADP consists of:
a) The main investment programme
b) Technical assistance programme
c) Institute’s/agency’s self-financed programme,
 The programs are sub-divided into the different government
sectors.
 The ADP is published in June and is available to the public.

ADP Formulation
A simplified series of steps in the formulation Process
of Annual Development Programme
The Inter-ministerial “Resource Committee” at the Finance Division
estimates the resources availability for the ADP
Programming Division of Planning Commission prepares the
sector/project wise ADP allocation in consultation with the Sector
Divisions, GED of the Planning Commission, sponsoring Ministries
and agencies.
Programming Division place the draft ADP at the Planning
Commission Meeting for finalization
Planning Division Submits the final ADP to National Economic
Council (NEC) for formal Approval

4
Ministry of Planning :
Ministry of Planning
Planning Division
Planning Commission NEC/ECNEC
Planning Division works as the secretariat of
the Planning Commission
Statistics DivisionIMED
Friday, July 20, 2018 Dr. Md. Shamsul Arefin

5
Structure of Planning Commission
Chairperson
Hon’ble Prime
Minister
Vice Chairman
Hon’ble Minister for
Planning
Member
Secretary
Secretary,
Planning Division
Member, Socio-Economic
Infrastructure Division
Member, Programming Division
Member, Industries and Energy
Division
Member, Agriculture, Water
Resources and Rural Institution
Division
Member, Physical Infrastructure
Division
Member, General Economics
Division

6
ECNEC
• Composition
– Hon’ble Prime Minister – Chairperson
– Minister of Finance– Member
– Minister of Planning – Member
– Minister of Agriculture – Member
– Minister of Labour and Employment – Member
– Minister of Water Resource – Member
– Minister of Commerce – Member
– Minister of Communications – Member
– Minister of Shipping – Member
– Ministers / State Ministers of relevant Ministries – Member
• Officers of assisting ECNEC
– Cabinet secretary
– Principal secretary/secretary, office of the Prime Minister
– Secretaries, Planning, Finance, ERD & IMED
– All members of the planning Commission & relevant secretaries.

7
ADP Formulation
A simplified series of steps in the formulation
Process of Annual Development Programme
The Inter-ministerial “Resource Committee” at the Finance
Division estimates the resources availability for the ADP
sector/project wise ADP allocation in consultation with the
Sector Divisions, GED of the Planning Commission,
sponsoring Ministries and agencies.
Planning Division Submits the final ADP to NEC for formal
Approval

8
Project Planning
Classification of Projects
Development Projects
Investment
Projects
Technical
Assistance
Projects
Minister in
charge of
Planning is
the Approval
Authority of
Projects
Costing up
to Tk. 25
Crore
ECNEC is
the
Approval
Authority of
Projects
Costing
over Tk. 25
Crore
Minister in
charge of
sponsoring
Ministry is
the Approval
Authority of
Projects
Costing up to
Tk. 7 Crore
Minister in
charge of
Planning is
the Approval
Authority of
Projects
Costing over
Tk. 7 Crore
Self Financed
Projects are
approved by the
Minister in
change of the
Sponsoring
Ministries.

9
Project Planning (Cont…)
A simplified series of steps in Investment Projects
Processing / Approval Process
Generation of Project idea from sectoral Plans/Five
Year Plan/Poverty Reduction Strategy
Formulation of Development Project Proposal (DPP) by Executing Agencies
Ministries Scrutinize the DPPs
Sector Divisions of the Planning
Commission Appraise the DPPs
Project Evaluation Committee (PEC)
Recommends for Approval
Minister for Planning Approves
Project Costing up to Tk. 25 crore
ECNEC approves Projects
costing over Tk. 25 crore
Approved projects listed into ADP for implementation.

10
Institutional Linkages of Planning Commission
with other Ministries/Divisions/Organizations
Planning
Commission
NEC/ECNEC
ERD
FD
Ministries/
Divisions
IMED
APD
IRD
BIDS
Statistics
Division

11
ECNEC
• Composition
– Hon’ble Prime Minister – Chairperson
– Minister for Finance– Alternate Chairman
– Minister for Planning – Member
– Minister for Agriculture – Member
– Minister for Labour and Employment – Member
– Minister for Water Resource – Member
– Minister for Commerce – Member
– Minister for Communications – Member
– Minister for Shipping – Member
– Ministers / State Ministers for relevant Ministries – Member
• Officers of assisting ECNEC
– Cabinet secretary
– Principal secretary/secretary, office of the Prime Minister
– Secretaries, Planning, Finance, ERD & IMED
– All members of the planning Commission & relevant secretaries.

12
Sectors/Divisions of the Planning
Commission
Planning Division consists of six divisions (17 Sectors)
1. Programming Division
2. General Economics Division
3. Socio-Economic Infrastructure Division
4. Agriculture, Water Resource and Rural Institution Division
5. Industries and Energy Division
6. Physical Infrastructure Division
Each Division is headed by one Member (Secretary),
one Division Chief (Additional Secretary), Joint Chiefs
and other supporting officials.
Friday, July 20, 2018 12Dr. Md. Shamsul Arefin

13
Project Planning
Classification of Projects
Development Projects
Investment
Projects
Technical
Assistance
Projects
Minister in
charge of
Planning is
the Approval
Authority of
Projects
Costing up
to Tk. 25
Crore
ECNEC is
the
Approval
Authority of
Projects
Costing
over Tk. 25
Crore
Minister in
charge of
sponsoring
Ministry is
the Approval
Authority of
Projects
Costing up to
Tk. 7 Crore
Minister in
charge of
Planning is
the Approval
Authority of
Projects
Costing over
Tk. 7 Crore
Self Financed
Projects are
approved by the
Minister in
change of the
Sponsoring
Ministries.

14
Project Planning (Cont…)
A simplified series of steps in Investment Projects
Processing / Approval Process
Generation of Project idea from sectoral Plans/Five
Year Plan/Poverty Reduction Strategy
Formulation of Development Project Proposal (DPP) by Executing Agencies
Ministries Scrutinize the DPPs
Sector Divisions of the Planning
Commission Appraise the DPPs
Project Evaluation Committee (PEC)
Recommends for Approval
Minister for Planning Approves
Project Costing up to Tk. 25 crore
ECNEC approves Projects
costing over Tk. 25 crore
Approved projects listed into ADP for implementation.

15
ADP Formulation
A simplified series of steps in the formulation
Process of Annual Development Programme
At the initiative of the programming division of the Planning
Commission, the Inter-ministerial “Resource Committee” at
the Finance Division estimates the resources availability for
the ADP
sector/project wise ADP allocation in consultation with the
Sector Divisions and GED of the Planning Commission and
sponsoring Ministries and agencies.
Planning Division Submit the final ADP to NEC for formal
Approval

DPP/TPP/FSP Format
Investment Project
• Development Project Proforma (DPP)
Technical Assistance Project
• Technical Assistance Project Proforma (TPP)
Survey / Feasibility Study Project
• Survey/ Feasibility Study Project Proforma (FSP)

Project Formulation and
Approval Process
– Executive Agency/Division/ Ministry prepares
the DPP for investment project;
– Project Scrutiny/Examination Committee (PSC)
chaired by the Secretary of the respective
Division/Ministry reviews the project proposal;
– If the project is accepted by the PSC and the
project has the provision of manpower, than the
project proposal sends to the Manpower Review
Committee of Finance Division for approval of
project manpower;

Approval Process
– Manpower Review Committee of Finance
Division must provide their recommendations
regarding manpower within 15 days after
receiving the proposal of project manpower;
– Implementing Agency revised /re-casted the DPP
as per recommendation of the manpower
committee and resubmit the DPP to the
respective ministry/ Division;
– If needed FIRR and EIRR calculation sheet
attached with the DPP;

Approval Process
– For all road transport sector project, Project Appraisal
Framework (PAF), Project Appraisal Report (PAR) and
Appraisal Summary Table (AST), Hydrological and
Morphological study report ( if the project is 100 m above
bridge project) must be attached with the DPP;
– Executing Ministry submit the re-casted DPP to the
Planning Commission within 10 days after receiving the
DPP from Implementing Agency;
– The concerned Wing/ Sector-Division of planning
Commission examines the DPP and prepares Working
Paper for Project Evaluation Committee (PEC) meeting;

Investment Project
Approval Process
Major criteria for appraisal in the Planning
Commission
a. Relevancy of the project with the national priority
b. Overall sectoral allocation as well as MTBF and
existing projects of the agency;
c. Relevancy of the project with the line of 6th five
years Plan, Sectoral Plan and other National
Documents;

Investment Project
Approval Process
Major criteria for appraisal in the
Planning Commission
d. Impact on revenue budget after completion of the project;
e. Examination of the project duration
f. Consideration of necessary fund mobilization etc
g. If the project is a next phase of an earlier project then the
Evaluation Report of previous phase prepared by IMED/any
other organizations is needed to be considered;

Investment Project
Approval Process
• If the Planning Commission (PC) is not satisfied with
the proposal, PC may return it to the Ministry/
Division within 30 working days with specific
comments;
• Incorporating the recommendations of PC, DPP
must be submitted to the Planning Commission
within 25 working days
• Planning commission submits DPP to the project
evaluation Committee
• For PEC meeting notice needs to be issued at least
seven working days before the meeting

Investment Project
Approval Process
• Minutes of the PEC meeting have to be issued
within 10 working days of the meeting
• If Recast is needed the Ministry will send the recast
DPP to PC by reflecting recommendations of the
PEC
• If PEC recommends cost rationalization by IMED,
IMED needs to do it within 15days and sends it the
ministry

Investment Project
Approval Process
• Ministry sends DPP to the Agency for recast,
Ministry and Agency normally get 25 days for
recasting the DPP but for any specific cause get
maximum 40 days.
• If recast DPP is not sent within 40 days then the
project will be automatically void.
• After receiving recast DPP/ since Issuing date of
minutes, Sector Division place the DPP to ECNEC or
Planning Minister for approval with in 10 days

Investment Project
Approval Process
• If the total Project cost is within TK. 25 core,
approving authority is given to the Honorable
Minister for Planning;
• If the total project cost is more than TK. 25 core,
approving authority Executive Committee of the
National Economic Council (ECNEC);
• An approval order for each DPP has to be issued
within 3 days ;

Summary of Approval Process and
Time line for Investment Project
Steps of DPP Preparation and Approval Specific time limit given in the planning
Process
DPP prepares by IA and submit to the Ex.
Ministry /Div.
Ex. Ministry/Div. scrutinizes the DPP
through Project Scrutiny Committee (PSC)
of the Ministry/Div.
No time limit for the Ministry/ Div. after
receiving the DPP from IA.
If project requires manpower, Executing
Ministry send s the DPP to the
Manpower Review Committee of Finance
Division
15 days after receiving the proposal
( Manpower committee should provide
their specific recommendation within the
specific time)
IA revised/re-casted the DPP as per
recommendation of the Manpower
Review Committee
No time limit for IA
Steps
No.
Steps of DPP Preparation and Approval Specific time limit given in the
planning Process
1 DPP prepares by IA and submit to the Ex.
Ministry /Div.
2 Ex. Ministry/Div. scrutinizes the DPP
through Project Scrutiny Committee (PSC)
of the Ministry/Div.
No time limit for the Ministry/
Div. after receiving the DPP
from IA.
3 If project requires manpower, Executing
Ministry send s the DPP to the Manpower
Review Committee of Finance Division
15 days after receiving the
proposal ( Manpower
committee should provide
their specific recommendation
within the specific time)
4 IA revised/re-casted the DPP as per
recommendation of the Manpower
Review Committee
No time limit for IA

Step
No.
Steps of DPP Preparation and Approval Specific time limit given in
the planning Process
5 After receiving the updated DPP from IA, Ex.
Ministry/Div. sends the DPP to the Planning
Commission
DPP from IA
6 Planning Commission examine the DPP and if
the project not accepted as per criteria of the
government , Planning Commission returns the
DPP to the Ex. Ministry/Div. with specific
comments;
DPP from Ministry/Div.
7 Planning Commission may return the DPP to
the Ex. Ministry/Div. for resubmission with
specific comments .
DPP from Ministry/Div
8 Ex. Ministry/Div. resubmit the DPP by
incorporating the suggestions/changes
provided by the Planning Commission;
DPP from Planning
Commission.

Step
No.
9 Planning Commission submit the
updated/revised/re-casted DPP to the Project
Evaluation Committee (PEC) meeting for
recommendation for approval
DPP from Ex. Ministry/Div.
10 If 30 days over after receiving the DPP from
the ex. Ministry, Planning Commission can not
return the DPP to the Ex. Ministry. Planning
Commission should process the DPP for PEC
with specific comments
PEC committee notice with
working paper should be
issued before seven days
of the meeting.
11 Planning Commission circulate the PEC
committee Meeting Minutes ;
10 days after PEC Meeting.
12 Ex. Ministry/Div. resubmit the DPP to the
Planning Commission by incorporating the
suggestions/changes provided by the PEC;
PEC meeting minutes from
Planning Commission.

Step
No.
13 If any cost rationalization needed as per
decision of the PEC, IMED/Planning
Commission rationalized the project cost.
minutes of the PEC .
14 After receiving the rationalized cost from
IMED, Ex. Ministry /Div. updated/revised/re-
casted the DPP and submit to the Planning
Commission .
rationalized cost from
IMED.
15 If Ex. Ministry/ Div. fails to submit the updated DPP to the Planning
Commission within 40 days after receiving the minutes of the PEC and
cost rationalization minute of IMED , the approval process of the project
must be considered automatically void, and this project will not be
considered further for approval.

ADP 2018-2019
• Size of the ADP 2017-18: BDT 1,53,331 crore
• Local Resource: BDT 96,331 crore (63%)
• Foreign aid/project assistance: BDT 57,000 crore (37%)
ADP 2017-2018
• Size of the ADP 2017-18: BDT 1,80,869.17 crore
• Local Resource: BDT 1,19,810.95 crore (66%)
• Foreign aid/project assistance: BDT 61,058.22 crore (34%)
Dependency on foreign aid is decreasing year by year
ADP 2017-2018 & 2018-2019

Sectoral Allocation in Annual Development
Programme

Dr. Md. Shamsul ArefinFriday, July 20, 2018 32

Adp formulation and planning process 17 07-2018 planning academy

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