DPP-Approval

1. Public Sector Development Project
Preparation, Approval and Revision
Process
DPP Approval Process

2. What is a Project
A planned piece of work that has a specific goal,
purposes, objectives and output and that usually
requires certain inputs and specific time;
Logical Framework of a project:
• Goal
• Purpose/Objectives
• Output
• Input

3. Types of projects
• Investment
Investment Projects are three types
 Completely Government own funded project;
 Development Partner’s funded project (which may include
or not include GOB fund);
 Organization’s own funded project (Autonomous
Organizations)

4. Types of Project
Technical Assistance Project (TA Project)
TA projects are three types
 Development Partners/ GOB or both funded TA
project under public sector;
 Development Partner’s funded Regional TA project;
 Development Partner’s funded TA project under
private sector;

5. Types of Project
In addition to the above types of investment and
technical assistance projects, we have another two
types of projects in our planning process :
Survey/Feasibility Study Project under
development budget;
Specific types programme under revenue budget:

6. Types of Project
Investment Project
•Projects having mainly physical components, which we
termed as capital investment components such as
construction of power stations, Industries, buildings,
roads, highways, culverts and bridges etc which usually
have physical existence;
•Having or not having TA components;
•Includes in the ADP as main programme;

7. Types of projects
Technical Assistance
Improvement of institutional capacity, transfer
of technology and development of human
resources, including;
•Consultancies,
•Local/ foreign training/ fellowship,
•Technological services of experts etc;

8. 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)

9. 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;

10. Project Formulation and
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;

11. Project Formulation and
Approval Process
– 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;

12. 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;

13. 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;

14. 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

15. 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

16. 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

17. 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 ;

18. 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

19. Summary of Approval Process and
Time line for Investment Project
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
10 days after receiving the
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;
30 days after receiving the
DPP from Ministry/Div.
7 Planning Commission may return the DPP to
the Ex. Ministry/Div. for resubmission with
specific comments .
30 days after receiving the
DPP from Ministry/Div
8 Ex. Ministry/Div. resubmit the DPP by
incorporating the suggestions/changes
provided by the Planning Commission;
25 days after receiving the
DPP from Planning
Commission.

20. Summary of Approval Process and
Time line for Investment Project
Step
No.
Steps of DPP Preparation and Approval Specific time limit given in
the planning Process
9 Planning Commission submit the
updated/revised/re-casted DPP to the Project
Evaluation Committee (PEC) meeting for
recommendation for approval
30 days after receiving the
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;
25 days after receiving the
PEC meeting minutes from
Planning Commission.

21. Summary of Approval Process and
Time line for Investment Project
Step
No.
Steps of DPP Preparation and Approval Specific time limit given in
the planning Process
13 If any cost rationalization needed as per
decision of the PEC, IMED/Planning
Commission rationalized the project cost.
15 days after receiving the
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 .
25 days after receiving the
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.

22. Summary of Approval Process and
Time line for Investment Project
Step
No.
Steps of DPP Preparation and Approval Specific time limit given in
the planning Process
16 After receiving the updated DPP as per
decision of the PEC and IMED , Planning
commission process the DPP for final approval
from
• Planning Minister if the project cost within
25 crore;
•ECNEC if the project cost 25 crore and above
10 days after receiving the
Updated DPP from Ex.
Ministry.
Total Time required if we follow all the
above steps of approval process
185 Working Days ( 6
month and 05 days)

23. Technical Assistance (TA) Project
• Implementing Agency (IA)/Executive Agency
prepares Technical Assistant Project Proposal (TPP)
and submits to the Ministry;
• The planning Wing/Branch of the Ministry
preliminary examines acceptability of the proposal;
• If the Project cost is within TK. 7 Crore, planning
Wing/ Branch of the Ministry submits TPP to the
Departmental Special Project Evaluation Committee
(DSPEC) for recommendation;

24. Technical Assistance (TA) Project
• Hon’ble Minister of that Ministry approves TPP
on the basis of DSPEC recommendations
• This process shall be completed within 30 days
by the Ministry from the receiving date.

25. Technical Assistance (TA) Project
• If the Project cost is above TK. 7 Crore, Ex.
Ministry sends TPP to the Planning Commission;
• Respective Sector Division of PC submits the TPP
to the SPEC meeting;
• Minister for Planning approves TPP on the basis
of recommendation of SPEC;
• This process shall be completed within 45 days
by PC from the receiving date;

26. Revision of projects
• Project should not be revised more than two times;
• Third time revision allowed incase of special
needed but third time revision should be processed
with the prior approval of the Minister for Ministry
of Planning;

27. Why revision
• If planned objectives are not achievable and have to
change;
• If cost is increased due to currency fluctuation
and/or CDVAT cost changed;
• If national pay scale and other allowances are
enhanced;
• If physical items’ cost is increased or decreased;
• If design needs to be changed;

28. Why revision
• If have to include new items, change in personnel,
vehicle and mode of finance
• Two times revision allowed
• No post facto approval
• If need 3rd revision- Prior permission from Planning
Minister for processing

29. First revision
• Prepare in RDPP format.
• Ministry approve Revised Project cost up to 10%
increase/decrease under certain conditions with the
recommendation of DPEC ( objectives, mode of finance,
source of fund, vehicle , manpower unchanged and inclusion
of new Item)
• If project cost increase / decrease upto 20%, approval
authority Planning Minister
• If project cost above 20% and total project cost within 25
crore, approval authority Planning Minister
All other cases ECNEC approves

30. Second revision
• If project cost up to 20%, approval authority Planning
Minister
• If project cost above 20% and total project cost within 25
crore, approval authority Planning Minister
• All other cases ECNEC approve

31. Revision of TPP
• If Revised Project cost increase/decrease up to 25%; Concern
Minister may approve with the recommendation of DSPEC
• If the project cost is increased more than 25%; approval is
done by the Planning Minister.
• Two times project revision is allowed
• No post facto approval
• If need 3rd revision- Prior permission from Planning Minister
for processing

32. Second revision
• Planning Minister approve it
• within 45 days
• Any revision with time extension needed the
recommendation of ERD for Aided project.

33. End of Presentation
Thank you all