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Document of

The World BankFOR 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

June 29, 2017

Governance Global PracticeSouth 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.

CURRENCY EQUIVALENTS

(Exchange Rate Effective April 30, 2017)

Currency Unit = Bangladesh Taka(BDT)

BDT 78 = US$1

US$ 1.37102 = SDR 1

FISCAL YEARJuly 1 – June 30

ABBREVIATIONS AND ACRONYMS

ADB Asian Development BankADP Annual Development ProgramBCC Behavioral Change CommunicationBCCP Bangladesh Center for Communication ProgramBIGD Bangladesh Institute for Governance and DevelopmentBPDB Bangladesh Power Development BoardBREB Bangladesh Rural Electrification BoardBWDB Bangladesh Water Development BoardC&AG Comptroller and Auditor GeneralCAO Chief Accounts OfficerCE Citizen EngagementCFR Citizen Monitoring ForumCPF Country Partnership Framework CGA Controller General of AccountsCIPS Chartered Institute of Purchasing & Supply, UKCPAR Country Procurement Assessment ReportCPTU Central Procurement Technical UnitDA Designated AccountDC Direct ContractingDFID Department for International Development (UK)DG Director GeneralDIMAPPP Digitizing Implementation Monitoring and Public Procurement ProjectDRC Disaster Recovery CenterECoP Environmental Code of PracticeERP Enterprise Resource PlanningESCB Engineering Staff College BangladeshECNEC Executive Committee for National Economic Council

e-GP Electronic Government ProcurementESCB Engineering Staff College BangladeshFCFAA Country Financial Accountability AssessmentFAPAD Foreign Aided Project Audit DirectorateFM Financial ManagementFMC/FMS Financial Management Consultant/ SpecialistGOB/GoB Government of BangladeshGTF Government Tenderers’ ForumGP Global PracticeIC Individual ConsultantICB International Competitive BiddingIDA International Development AssociationIFB Invitation for BidsIFR Integrated Fiduciary ReviewIUFR Interim Un-audited Financial Report ITC-ILO International Training Center of International Labor Organization- Turin/ItalyIMED Implementation Monitoring & Evaluation DivisionLGD Local Government DivisionLGED Local Government Engineering DepartmentLGIs Local Government InstitutionsMIS Management Information SystemMOP Ministry of PlanningMOU Memorandum of UnderstandingMTR Mid-Term ReviewNCB National Competitive BiddingNGO Non-governmental OrganizationOC Open ContractingNSPSO Newly Selected Public Sector OrganizationOECD Organization for Economic Cooperation and DevelopmentPDO Project Development ObjectivePE Procuring EntityPFM Public Financial ManagementPFP Procurement Focal PersonPIP Project Implementation PlanPIT Project Implementation TeamPM Prime MinisterPMC Project Monitoring CoordinatorPPA Public Procurement ActPPSC Public-Private Stakeholders CommitteePPR Public Procurement Rules 2008PPRP Public Procurement Reform ProjectPPRPII Public Procurement Reform Project IIPROMIS Procurement Management Information SystemPSC Project Steering CommitteePSO Public Sector OrganizationPSPSO Previously Selected Public Sector OrganizationQBS Quality-Based SelectionQCBS Quality- and Cost-Based Selection

RFB Request for BidRFP Request for ProposalRHD Roads and Highways DepartmentSA Special AccountSAc Social AccountabilitySBD Standard Bidding DocumentsSLA Service Level AgreementSOE Statement of ExpendituresSORT Systematic Operations Risk-Rating ToolSPSO Selected Public Sector OrganizationSSS Single-Source SelectionSSCM Site Specific Citizen MonitoringSWAps Sector-wide ApproachesTAPP Technical Assistance Project ProposalTOR Terms of ReferenceTPP Technical Assistance Project ProposalTWG Technical Working GroupUNCITRAL UN Commission for International Trade LawUNDP United Nations Development ProgramWB 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

The World BankDigitizing Implementation Monitoring and Public Procurement Project (P160758)

BASIC INFORMATION

Is this a regionally tagged project? Country(ies) Financing InstrumentNo Investment Project Financing

[] Situations of Urgent Need of Assistance or Capacity Constraints

[] Financial Intermediaries

[] Series of Projects

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

Organizations

Borrower : People's Republic of Bangladesh

Implementing Agency : Implementation Monitoring and Evaluation Division

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PROJECT FINANCING DATA (US$, Millions)

[ ] Counterpart Funding[ ] IBRD

[ ] IDA Credit

[ ] Crisis Response Window

[ ] Regional Projects Window

[ ] IDA Grant

[ ] Crisis Response Window

[ ] Regional Projects Window

[ ] Trust Funds[ ] Parallel Financing

FIN_COST_OLDTotal 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_OLDFinancing Source Amount

Borrowing Agency 5.00

IDA-60770 55.00

Total 60

Expected Disbursements (in US$, millions)

Fiscal Year 2018 2019 2020 2021 2022

Annual 2.30 6.45 11.49 15.77 18.99

Cumulative 2.30 8.75 20.24 36.01 55.00

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INSTITUTIONAL DATA

Practice Area (Lead)Governance

Contributing Practice AreasEnergy & ExtractivesTransport & ICTWater

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

b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment

c. Include Indicators in results framework to monitor outcomes from actions identified in (b)

SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)

Risk Category Rating1. Political and Governance Moderate2. Macroeconomic Low

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

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7. Environment and Social Low

8. Stakeholders Substantial

9. Other Substantial

10. Overall Substantial

COMPLIANCE

PolicyDoes 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

Legal Covenants

Financing Source Sections and DescriptionImplementation Arrangements/Project Steering Committee: The Recipient shall maintain, throughout the period of Project implementation, the Project

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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.

Financing Source Sections and DescriptionImplementation 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.


Financing Source Sections and DescriptionImplementation Arrangements/Project Implementation Team: The Recipient shall cause each SPSO to establish,

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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.

Financing Source Sections and DescriptionImplementation 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

Financing Source Sections and DescriptionImplementation 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

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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.


Financing Source Sections and DescriptionImplementation 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 after Effective Date; Frequency:

Financing Source Sections and DescriptionImplementation Arrangements/ Central Procurement Technical Unit: The Recipient shall, by no later than three months after the Effective Date, hire: (i) two (2)

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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:

Financing Source Sections and DescriptionEnvironmental 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

PROJECT TEAM

Bank StaffName Role Specialization Unit

Zafrul Islam Team Leader(ADM Responsible)

Procurement Reform and e-GP GGO06

Arafat Istiaque Procurement Specialist(ADM Responsible) Procurement GGO06

Mohammad Reaz Uddin Financial Management Financial Management GGO24

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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

Masud Mozammel Team Member Communication and civic engagement ECRGP

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 TeamName Title Organization Location

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BANGLADESH

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 ComparatorsIndicator Bangladesh South Asia Lower middle

income countriesGDP per capita (constant US$ 2010) [1971-2015] 131.9 1,211.7 386 1,641 690 2,047Life expectancy (years) at birth [1971-2014] 47.1 71.6 49 68 51 67Infant mortality rate [1971-2015] 148.9 30.7 142 42 129 40Total fertility rate [1971-2014] 6.9 2.2 5.7 2.5 5.7 2.8Gross Enrolment Ratio (Primary) [1971-2011] 51.2 111.9 71.6 107.3 77.4 104.3DPT child immunization rates (percent) [1985-2015] 74 94 18.4 85.4 25.7 81.3Access to improved sanitation (percent) [1995-2015] 40.0 60.6 24.0 44.7 35.0 52Poverty headcount @ $1.9/day (percent population) [1991-2010] 44.2 18.5 24.6 23.5Mobile 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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http://databank.worldbank.org/data/reports.aspx?source=world-development-indicators


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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http://www.cptu.gov.bd/

http://www.eprocure.gov.bd/


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

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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 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

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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, 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

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procurement issues. The group is expected to form a sustainable core procurement unit within SPSOs to 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. I t 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

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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.

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 financingProject Components Project

CostIDA Financing

Counterpart Funding

Restructuring CPTU to an Authority and e-GP Corporate 9.00 6.00 3.00Enhancing Digitization of Public Procurement 28.00 26.00 2.00Professionalizing Procurement and Citizen Engagement 18.00 18.00 -Digitizing Project Implementation Monitoring 5.00 5.00 -Total cost 60.00 55.00 5.00Total 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

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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 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

12


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 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

13


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 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

14


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.

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

15

http://www.eprocure.gov.bd/

http://www.cptu.gov.bd/


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 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

16


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

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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http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service

http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service


VII. RESULTS FRAMEWORK AND MONITORING

Results Framework

COUNTRY : Bangladesh

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

Indicator Name Core Unit of Measure Baseline End Target Frequency Data Source/Methodology Responsibility for

Data Collection

Name: NSPSOs procurement lead time reduced in NCB using e-GP system (invitation to contract award)

Days 100.00 70.00 Semi-annual Progress Report IMED/ CPTU

Description:

Name: NSPSOs invite bids in National Competitive Bidding (NCB) through e-GP system

Percentage 2.00 75.00 Semi-annual e-GP System Report IMED/CPTU

Description:

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Data Collection

Name: Selected sub-districts engage citizen monitoring in contract implementatiion

Number 4.00 45.00 Semi-annual Consultant's Report IMED/ CPTU

Description:

Name: SPSOs’ projects implementation monitored on-line by IMED

Percentage 0.00 45.00 Semi-annual Progress Report IMED/CPTU

Description:

Intermediate Results Indicators


Data Collection

Name: Draft bill establishing the proposed Authority and amending the PPA 2006 placed in Parliament

Yes/No N Y Semi-annual Progress Report IMED

Description:

Name: Government Yes/No N Y Semi-annual Progress Report MOPA/ IMED

19



Data Collection

approved organogram with staffing of the proposed Authority

Description:

Name: Procuring entities of NSPSOs have at least one trained/certified procurement professional

Percentage 5.00 80.00 Semi-annual Consultant Report IMED/ CPTU

Description:

Name: PSPSOs' (RHD, LGED, BWDB, and BREB) contract completion rate within the original time schedule

Percentage 0.00 50.00 Semi-annual e-GP System Report IMED/ CPTU

Description:

Name: Core procurement unit operationalized in each of the selected public sector organizations (SPSOs);

Percentage 0.00 80.00 Semi-annual Capacity Development Consultant Report

IMED/ CPTU

Description:

20



Data Collection

Name: Procurement professionalization/accreditation certificates issued

Percentage 0.00 70.00 Semi-annual Capacity Development Consultant Report

IMED/ CPTU

Description:

Name: e-contract magement module in e-GP system updated

Yes/No N Y Semi-annual Progress Report IMED/ CPTU

Description:

Name: Open contracting module developed and made functional


Description:

Name: Citizen portal developed and made functional


Description:

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Data Collection

Name: IMED’s on-line project implementation monitoring module developed


Description:

Name: Disposal policy drafted and issued


Description:

Name: Authority's officials in place compared with the staffing plan

Percentage 0.00 70.00 Semi-annual Progress Report Authority

Description:

Name: Officials trained in reference to the training plan

Percentage 0.00 75.00 Semi-annual Progress Report Consultant/ CPTU

Female officials level of participation in training

Percentage 0.00 20.00 Semi-annual Progress Report Consultant/ CPTU

22



Data Collection

Description:

Name: e-GP system generated procurement performance reports of SPSOs published in CPTU/ Authority's website

Percentage 0.00 75.00 Semi-annual Progress Report CPTU/ Authority

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 contract award)

100.00 95.00 90.00 85.00 80.00 70.00 70.00

NSPSOs invite bids in National Competitive Bidding (NCB) through e-GP system

2.00 2.00 15.00 30.00 50.00 75.00 75.00

Selected sub-districts engage citizen monitoring in contract implementatiion 4.00 4.00 5.00 15.00 30.00 45.00 45.00

SPSOs’ projects implementation monitored on-line by IMED 0.00 0.00 5.00 10.00 25.00 45.00 45.00

Intermediate Results Indicators FY


Draft bill establishing the proposed Authority and amending the PPA 2006 placed in Parliament

N N Y Y

Government approved organogram with staffing of the proposed Authority N N Y Y

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Procuring entities of NSPSOs have at least one trained/certified procurement professional

5.00 5.00 10.00 30.00 60.00 80.00 80.00

PSPSOs' (RHD, LGED, BWDB, and BREB) contract completion rate within the original time schedule

0.00 0.00 0.00 10.00 30.00 50.00 50.00

Core procurement unit operationalized in each of the selected public sector organizations (SPSOs);

0.00 0.00 5.00 20.00 50.00 80.00 80.00

Procurement professionalization/accreditation certificates issued

0.00 0.00 5.00 20.00 40.00 70.00 70.00

e-contract magement module in e-GP system updated N N Y Y

Open contracting module developed and made functional N N N Y Y

Citizen portal developed and made functional N N N Y Y

IMED’s on-line project implementation monitoring module developed N N Y Y

Disposal policy drafted and issued N N N Y Y

Authority's officials in place compared 0.00 0.00 5.00 20.00 40.00 70.00 70.00

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with the staffing plan

Officials trained in reference to the training plan 0.00 0.00 10.00 30.00 50.00 75.00 75.00

Female officials level of participation in training 0.00 0.00 5.00 10.00 15.00 20.00 20.00

e-GP system generated procurement performance reports of SPSOs published in CPTU/ Authority's website

0.00 0.00 10.00 25.00 45.00 75.00 75.00

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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.

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8. As part of continuity of policy reform, an initiative towards integrated risk management system 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

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systems 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,

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the e-GP corporate, if established, will need to minimize any overlapping or duplication of any procurement data 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

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for highly potential candidates for higher educations at advanced level (e.g., Masters in sustainable procurement/procurement management/supply management). The trainers will 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

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community, e-procurement learning, journalists).

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

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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, 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

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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 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

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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.

(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.

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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 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

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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 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

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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 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.

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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.

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;

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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;

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

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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 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

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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 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.

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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 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

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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.

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

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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 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.

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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 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; Zilla Parishad-61; City Corporation- 9)

888

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 PEs1. Local Government Engineering Department (LGED) 7252. Roads & Highway Department (RHD) 3703. Bangladesh Water Development Board (BWDB) 1874. 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

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member. PSC will oversee the progress and provide implementation policy guidance on a quarterly basis. To coordinate 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

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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 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

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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 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.

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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 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 categoriesProject financing by category Total

US$ millionGOBUS$ million

IDAUS$ million

IDA Financing (percent)

1. Goods (excluding vehicles), non-consulting services, consultants services (except for Part 2.1(e) of the Project), and training cost of the project

52.00 - 52.00 100

2. Operating costs 3.00 2.00 1.00 333. Consultants’ services for O&M of e-GP system

5.00 3.00 2.00 40

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Total 60.00 5.00 55.00Note: Part 2.1(e) of the Project involves operation, management, and maintenance of the e-GP system.

Procurement

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

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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 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

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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, 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

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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.

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); andd. 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 .

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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

(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.

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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 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

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the beneficiaries at the grass root levels, including the private sector and bidding community. Concurrently, 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

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time depending on the circumstances and risks during actual implementation.

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Time Focus Skills Needed Resource Estimate Partner Role

First twelve monthsDesignated account, system designs, procurement

IT, e-GP, FM, procurement, communication

US$ 200,000 Consultation

12-48 monthsOperationalization, professionalization, progress reviews

OC, IT, FM, CE, procurement, social, communic.

US$ 175,000/ year Consultation

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

…………… END

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