Project Approval Process of Government of Bangladesh and Background of Bangladesh Planning Commission, Planning Context and integration with the process of development partners

1. 1
Development Project Planning, Appraisal
and Approval Process in Bangladesh and
Synchronization with DPs
Dr. Md. Taibur Rahman
Director (Joint Secretary)
Implementation Monitoring and Evaluation Division (IMED)
Ministry of Planning
trsumon@gmail.com

2. 2
2
Points to be Discussed:
Brief History of the development Planning in BD
Project Identification and formulation
Appraisal and Approval of Investment Project
Approval of Technical Assistant Project
Revision of Investment Project
Revision of Technical Assistant Project

3. History of Development Planning in
Bangladesh
• Indian Planning Commission 1950; Pakistan Planning
Commission, 1953
• In 1956 a Provincial Planning Board was established under the
United Front Government of the then East Pakistan and was
renamed as East Pakistan Planning Department;
• It was an agency for formulating investment programmes and
for negotiating with the Central Government of Pakistan for an
adequate share of the financial resources for the development
of East Pakistan;
• Bangladesh Government in exile during the war of
independent in 1971 established a Planning Cell, which was an
embryonic start of the present Planning Commission

4. History of Development Planning in
Bangladesh (contd.)
• Planning Commission of Bangladesh was established in
January 1972;
• Project Implementation Bureau (PIB) in 1975;
• External Resource Mobilization was entrusted to ERD in
1975;
• Planning cells in different Ministries/ Divisions in 1975.
• Initially The Planning Commission was a very high profile
organizations with renowned economists as Member with
the status of State Minister. The status was degraded
after 1975.

5. 5
Development Planning Context
Environment &
Climate Change
Disaster
Management
Agriculture
etc.
Mid-term plan:
Five Year Plan
Long-term plans:
BDP 2100, NAP, Perspective Plan 2041
Political Vision
Annual Development Programs(ADP)
Overall development objectives
169 targets 17
SDGs
Implementation of projects of ADP
M&E by IMED and Auditing of ADP Projects
Priorities for the year
Sectoral mid-term strategies
(Not yet operationalized)
National mid-term strategy
Sectoral Action Plans
MTBF-KPI

6. Development Administration in Bangladesh
6
IMED
Audit and Accounts
NEC
ECNEC BIDS & NAPD
Local offices of line
ministries/divisions and agencies

7. Ministry of Planning
Implementation
Monitoring and
Evaluation Division
Planning Division
Planning Commission
Statistics
Division
Agriculture
Division
Socioeconomic
Infrastructure Division
General Economics
Division
Programming
Division
Physical
Infrastructure
Division
Industry and
Power
Division
Sector Divisions receive project
proposals from Line Ministries and
analyze them
ECNEC Wing
Public Investment
Management
Administrator
Prepares Annual
Development
Programme (ADP)
FYP, PP, BDP2100
Ministry of Finance
FD
7
ERD

8. Structure of Planning Commission
Chairperson
Hon’ble Prime Minister
Vice Chairman
Minister for Planning
Member Secretary
Secretary,
Planning Division
Member, Socio-Economic Infrastructure Division
Member, General Economics Division (GED)
Member, Industries and Energy Division
Member, Agriculture, Water Resources and Rural
Institution Division
Member, Physical Infrastructure Division
Member, Programming Division
• GED: Preparation of Mid and Long term Plan; M&E of Plans; Determination of
Macroeconomic scenario in the context of development plan; MDGs Progress
Report
• Programming: Preparation of ADP, Resource Allocation for sectors; Release
of Fund for Revised unapproved projects.
• Other 4 Sectors: Formulation of sectoral plans; Processing of development
projects for approval including appraisal and providing secretarial services to the
PEC; Preparation of sectoral ADP in consultation with Line Ministries;

9. 9
• All development works in Bangladesh are carried out through projects
• All projects are being listed in the Annual Development Program which is the
development budget of the country for a fiscal year.
• These projects are grouped into 15 sectors being implemented by the various
agencies under 56 ministries
• Current ADP of Fiscal Year 2022-23 includes 1496 projects with an allocation
of around 25 Billion USD
• Out of this 25 billion USD, about 36% is financed by the development partners
• Our next part of the presentation will cover the initiation, appraisal, approval
and implementation process of the projects.
Annual Development Program (ADP)

10. 10
Types of Project
 Investment Project (IP)
 Technical Assistance Project (TAP)
 Technical Project
 Study Project

11. 11
Investment Project:
Projects having mainly investment components
such as construction of
 power stations
 industries
 buildings
 roads
 highways
 culverts
 bridges etc which usually have physical
existence.

12. 12
Technical Assistant Project:
• Foreign Financed (grant)
• Improvement of institutional capacity
• Development of human resources
• Transfer of technology
• It includes –
– consultancies,
– training/fellowship
– supply of equipment and
– Services
Technical Project:
• Same as TA Project, only exception is funding source
• GoB funded or Self Financing project

13. 13
Used Format
Investment Project
 Preliminary Development Project Proposal (PDPP)
 Development Project Proposal (DPP)
 Revised Development Project Proposal (RDPP)
Technical Assistance Project
 Technical Assistance Project Proposal (TAPP)
 Revised Technical Assistance Project Proposal (RTAPP)
 Technical Project Proposal (TPP)
 Revised Technical Assistance Project Proposal RTPP)
Study Proposal

14. 14
Organizations involved in Project
Processing
 Executing Agency
 Ministry/Division
 Planning Commission
 Implementation Monitoring & Evaluation Division (IMED)
Additionally in case of financed by the Development Partners
 Economic Relations Division (ERD)
 Development Partners

15. 15
Project Processing
Consider
• National Strategic Plans and Policies such as Five Year
Plan/Perspective Plan, Sustainable Development Goals(SDGs),
BDP2100, Sectoral Action PlanPriority etc.
• Resource of Mid-Term Budgetary Framework (MTBF), Duplication
project, Regional disparity, Climate change, Environment, Disaster
Gender etc.
• Allocation of Business, Fund availability, priority, Stakeholder
Consultation report, feasibility study report, base of the cost
estimation
• Implementation period should be within 3 years except special
project

16. 19
Project Evaluation Committee (PEC)

17. 20
Project Evaluation Committee (PEC)
Terms of Reference:
 Appraisal of acceptability of Development projects
 Examination of Financial, Economic and Technical viability of
Development Projects
 Examine the Log Frame and relevancy of objectives
 Suggest necessary amendment/ modification / alterations if
necessary
 Formulate recommendations for approval by the competent
authority

18. 21
Investment Project Processing
• PEC Recommends for approval or for necessary modification
• PC can send DPP to Ministry for recast
• Otherwise PC place it to the approval authority according to project
cost
• Approval authority
– Honorable Planning Minister or
– ECNEC

19. 22
Investment Project Processing (con)
• If project cost up to 50 crore, Hon’be Planning
Minister approves it
• If project cost above 50 crore, ECNEC approves it

20. 23
Executive Committee of National Economic Council
(ECNEC)
• Composition
– Hon’ble P.M. – Chairperson
– Hon’ble Minister for Finance – Alternate Chairman
– Other Members:
• Minister for Industries
• Minister for Commerce
• Minister for Agriculture
• Minister for Post & Telecomm and ICT
• Minister for Local Govt., Rural Dev and Cooperative
• Minister for Expatriate Welfare and Overseas Employment
• Minister for Housing and Public Works
• Minister for Communication
• Minister for Shipping
• Minister for Planning
• State Minister for Planning & Finance
• Concern Minister

21. 24
Revision of Investment Project
Why Revision
• If planned objectives are not achievable and needs some
adjustment;
• If design needs to change;
• If total cost or implementation period of project
increase/decrease;
• If have to include new items, change in personnel, vehicle and
mode of finance etc
• Other valid reasons

22. 25
Revision of Investment Project
• Two times revision allowed
• No post facto approval
1st Revision:
• Prepare in RDPP format.
• Concerned Ministry approve Revised Project where cost
increase/decrease (from original cost) up to15% or BDT 40 crore (which
is less)
• With the recommendation of DPEC
• Cost can be increased up to 1 year if not done before during the 1st
revision

23. 26
1st Revision of Investment Project (con.)
• If project cost increase/decrease up to 25% (from original cost) or
BDT 50 crore (which is less) Planning Minister approves
• If project cost change above 25% but total project cost remains
within BDT 75 crore, Planning Minister approves
• All other cases ECNEC approves

24. 27
Revision of Investment Project (con.)
2nd Revision:
• Change in project cost up to 25% or BDT 50 Crore (which is less),
Planning Minister approves
• If change in project cost above 25% but total project cost
remains within BDT 75 crore, Planning Minister approves
• All other cases ECNEC approves
3rd Revision: With the permission of Planning Minister starts the
revision processing

25. 28
No Cost Time Extension of Investment
Project
• Respective Ministry extends project duration up to 1 year with the
recommendation of IMED before 2nd revision & also of ERD (if applicable)
• For more than one year or 2nd time extension Planning Commission
member approves with the recommendation of IMED (Max. 2 years)
• For 3rd time Planning Minister extend project duration
• For the 4th time and beyond if extremely necessary, ECNEC approves
• Extension proposal needs to reach IMED 3 months before the project
expiry
• IMED needs to visit the project within 20 days after receiving the
proposal
• No extension after project expires

26. 29
Departmental Project Evaluation Committee

27. 30
TAPP or TPP Processing
• TAPP project must have foreign funding where GoB and
Agency’s self financing may be included as matching fund
• TPP project does not have FA
• Executing Agency prepare project document in TAPPTPP
Format and send it to administrative ministry
• Planning Wing/Branch of Ministry examine the TAPPTPP
• If total cost up to 10 crore and proportion of GOB within
30% of project cost, have to place it to DSPEC meeting
• Respective Minister approves TAPPTPP with
recommendations of DSPEC
• Implementation period should be within 3 years

28. 31
Departmental Special Project Evaluation
Committee (DSPEC)

29. 32
TAPPTPP Project Processing (con.)
• Ministry send the TAPP costing above 10 crore or GOB contribution above 30%
or there is a possibility to develop a follow up investment project to Planning
Commission (PC)
• GoB financed TPP irrespective of cost must be processed through Planning
Commission
• Self Financed TPP will be approved by the Ministry including its revision, time
extension etc.
• PC place it in SPEC meeting, SPEC headed by Member
• Planning Minister approve the TAPPTPP costing within 50 Crore, 50+ crore
costed TAPPTPP needs approval from ECNEC
• In a special case to sign financing agreement with the DP, “Expected
Approval” can be processed quickly by the MinistryPC (as appropriate) like
PDPP without recommendation of DSPECSPEC. In that case, TAPPTPP needs
to be approved with normal process within 45 days of such quick approval.

30. 33
Special project Evaluation Committee (SPEC)

31. 34
Revision of TA Project
• Two times project revision allowed
• No post facto approval
• If need more than 2nd revision- Prior permission from Planning
Minister for processing
Ist Revision at the ministry level:
o Prepare in RTAPPRTPP format.
o Ministry approve Revised Project cost up to 25% increase/decrease
or up to BDT 20 crore (which is less) with the recommendation of
DSPEC
o Time can be extended max. 1 year in this case if not done before

32. 35
Revision of TA Project (con.)
• If cost increase/decrease above 25% or above 20 crore, Planning
Minister approves
All Revision at the Planning Commission level:
• Planning Minister approves irrespective of cost

33. 36
Time Extension of TA Project without cost
• Respective Minister extend project duration up to 1 year with the
recommendation of IMED (and plus ERD for TAPP)
• IMED finalize its recommendation by 15 days and ERD by 7 days in
this case
• For more than one year or 2nd time extension Planning
Commission member approves with the recommendation of IMED
(and plus ERD for TAPP), max limit 2 years
• IMED finalize its recommendation by 20 days in this case
• 3rd time extension or extension more than 2 years approved by the
Planning Minister

34. Feasibility Study
• Must for investment project costing above 50 crore
• Based on the importance of the investment project costing below
50 crore also needs to conduct feasibility study
• Ministry approves FS costing within 5 crore
• Ministry approves FS costing within 5 crore
• If FS costs up to 50 crore, Hon’ble Planning Minister approves it
• If FS costs above 50 crore, ECNEC approves
• Self financed FS would be approved by the Ministry including its
revision or time extension
37

35. 38
Revision of FS
• One time revision allowed
o Ministry approve Revised cost up to 20% increase/decrease or up to
BDT 5 crore (which is less) with the recommendation of DSPEC,
time can be extended up to 1 year during that time if not done
before
o If cost increase/decrease above 20% or above 20 crore, Planning
Minister approve
o 2nd revision can be considered only in special cases and by the
Planning Minister

36. 39
Time Extension of FS without cost
• Respective Minister extend project duration up
to 1 year with the recommendation of IMED if
not done before during any revision
• For more than one year or 2nd time extension
procedure is same like investment project
• No 3rd Tome extension.

37. Preliminary Development Project Proposal (PDPP)
• Simple format and simplified quick processing
for searching foreign funding
• Planning Minister approves in principle and
forward to ERD for foreign aid searching
• After receiving positive response from any DP,
DPP or TAPP will be prepared and processed
for approval
40

38. 41
6. Inclusion in
the ADP
1. IA
Conceptualize
and prepare
DPP/TPP/TAPP
2. PSC of the
Concerned Ministry
Appraises the
DPP/TPP/TAPP
4. Project Evaluation
Committee Finally Appraise
the DPP/TPP/TAPP and
recommends or reject
7.a. Implementation
by the Implementing
Agency
7.b. M&E by IMED
and Audit by C&AG
5.a. Approval by the
Planning Minister:
Projects costing up to
50 Crore BDT
5.b. Approval by the
ECNEC: Projects costing
50+ Crore BDT
Project Appraisal/Approval Process Summary
3.a. Relevant sector
division of the PC Appraise
the DPP/TPP/TAPP in
Detail
3.b. Appraisal by the
Programming Division
for the inclusion as
new project in the ADP
if not included
0. Local level project
identification

39. 42
Project Approval Authority Summary
Development Projects
Investment
ProjectsTechnical Project
Technical Assistance
Projects
Minister in
charge of
Planning is the
Approval
Authority of
Projects
Costing up to
Tk. 50 Crore
ECNEC is the
Approval
Authority of
Projects
Costing over
Tk. 50 Crore
Minister in
charge of
sponsoring
Ministry is the
Approval
Authority of
Projects Costing
up to Tk. 10
Crore & GOB
30%
Minister in
charge of
Planning is the
Approval
Authority of
Projects
Costing over
Tk. 10 Crore &
or GOB 30%
Self Financed Projects are
approved by the Minister
in change of the
Sponsoring Ministries
where land acquision is
less than 20 acre.

40. Special Clause for Foreign Financed Project
43
• Priority processing within shortest possible time at all levels
• DPPTAPP should be prepared during the appraisal of the project by
the DP
• DPPTAPP could be approved beforeduringafter the financing
negotiations and signing

41. Discussion Point-
Integration of Project Processing of GoB and UNDP
• Government system requires TAPP for all
projects including NIM or DIM project of
UNDP
• Project Preparation can be carried out
simultaneously by GoB and UNDP
• Project Document (ProDoc) of UNDP and
TAPP of GoB should be finalized at the
same time
• Contents of ProDoc and TAPP are almost
same (20% variations in format)
• TAPP should be considered in the SPEC
meeting soon after the LPAC meeting.
• ProDoc is being vetted by an inter-
ministerial meeting arranged by ERD and
the GA is being vetted by the Law
Ministry before placing to the HPM for
approval. TAPP can be processed at the
same time at the ministry level and
submitted to the Planning Commission
afterwards
44

42. Discussion Point-
Integration of Project Processing of GoB and UNDP………..
45
• SPEC meeting can be held even before the approval of
the HPM with a firm commitment letter from UNDP; It
happens normally after the approval though.
• UNDP should partner with IMED for M&E of projects
once approved
• With continuous monitoring IMED can conduct mid-term
and Terminal evaluation in partnership with UNDP.
• IMED mandatorily conducts final evaluation of the
completed project once Project Completion Report is
received
• UNDP should consider utilizing more human resources
from GoB (PD, DPD, APD, M&E etc.) to create
ownership and ensure mainstreaming; a project
allowance for such human resources (e.g. 30% of basic
salary) could be the motivational factor which is very
insignificant amount compare to the salary of the UNDP
staff or the size of the project

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