P ublic Sector Development Project Preparation, Approval and Revision Process Mantu Kumar Biswas Joint Chief Ministry of Water Resources Bangladesh Secretariat

Public Sector Development Project Preparation, Approval and Revision Process

Mantu Kumar BiswasJoint Chief

Ministry of Water ResourcesBangladesh Secretariat

What is a Project

A planned piece of work that has a specific goal, purposes, objectives and output and that usually requires certain inputs and specific time;

Logical Framework of a project:• Goal• Purpose/Objectives• Output• Input

Types of projects

• Investment Investment Projects are three types Completely Government own funded project;

Development Partner’s funded project (which may include or not include GOB fund);

Organization’s own funded project (Autonomous Organizations)

Types of Project

Technical Assistance Project (TA Project)

TA projects are three types

Development Partners/ GOB or both funded TA project under public sector;

Development Partner’s funded Regional TA project;

Development Partner’s funded TA project under private sector;

Types of Project

In addition to the above types of investment and technical assistance projects, we have another two types of projects in our planning process :

Survey/Feasibility Study Project under development budget;Specific types programme under revenue budget:

Types of Project

Investment Project

•Projects having mainly physical components, which we termed as capital investment components such as construction of power stations, Industries, buildings, roads, highways, culverts and bridges etc which usually have physical existence;

•Having or not having TA components;

•Includes in the ADP as main programme;

Types of projects

Technical AssistanceImprovement of institutional capacity, transfer of technology and development of human resources, including; •Consultancies, •Local/ foreign training/ fellowship,•Technological services of experts etc;

DPP/TPP/FSP Format

Investment Project •Development Project Proforma (DPP)

Technical Assistance Project

•Technical Assistance Project Proforma (TPP)

Survey / Feasibility Study Project •Survey/ Feasibility Study Project Proforma (FSP)

Project Formulation and Approval Process

– Executive Agency/Division/ Ministry prepares the DPP for investment project;

– Project Scrutiny/Examination Committee (PSC) chaired by the Secretary of the respective Division/Ministry reviews the project proposal;

– If the project is accepted by the PSC and the project has the provision of manpower, than the project proposal sends to the Manpower Review Committee of Finance Division for approval of project manpower;


– Manpower Review Committee of Finance Division must provide their recommendations regarding manpower within 15 days after receiving the proposal of project manpower;

– Implementing Agency revised /re-casted the DPP as per recommendation of the manpower committee and resubmit the DPP to the respective ministry/ Division;

– If needed FIRR and EIRR calculation sheet attached with the DPP;


– For all road transport sector project, Project Appraisal Framework (PAF), Project Appraisal Report (PAR) and Appraisal Summary Table (AST), Hydrological and Morphological study report ( if the project is 100 m above bridge project) must be attached with the DPP;

– Executing Ministry submit the re-casted DPP to the Planning Commission within 10 days after receiving the DPP from Implementing Agency;

– The concerned Wing/ Sector-Division of planning Commission examines the DPP and prepares Working Paper for Project Evaluation Committee (PEC) meeting;

Investment Project Approval Process

Major criteria for appraisal in the Planning Commission

a. Relevancy of the project with the national priorityb. Overall sectoral allocation as well as MTBF and

existing projects of the agency;c. Relevancy of the project with the line of 6th five

years Plan, Sectoral Plan and other National Documents;


Major criteria for appraisal in thePlanning Commissiond. Impact on revenue budget after completion of the project;e. Examination of the project durationf. Consideration of necessary fund mobilization etcg. If the project is a next phase of an earlier project then the

Evaluation Report of previous phase prepared by IMED/any other organizations is needed to be considered;


• If the Planning Commission (PC) is not satisfied with the proposal, PC may return it to the Ministry/ Division within 30 working days with specific comments;

• Incorporating the recommendations of PC, DPP must be submitted to the Planning Commission within 25 working days

• Planning commission submits DPP to the project evaluation Committee

• For PEC meeting notice needs to be issued at least seven working days before the meeting


• Minutes of the PEC meeting have to be issued within 10 working days of the meeting

• If Recast is needed the Ministry will send the recast DPP to PC by reflecting recommendations of the PEC

• If PEC recommends cost rationalization by IMED, IMED needs to do it within 15days and sends it the ministry


• Ministry sends DPP to the Agency for recast, Ministry and Agency normally get 25 days for recasting the DPP but for any specific cause get maximum 40 days.

• If recast DPP is not sent within 40 days then the project will be automatically void.

• After receiving recast DPP/ since Issuing date of minutes, Sector Division place the DPP to ECNEC or Planning Minister for approval with in 10 days


• If the total Project cost is within TK. 25 core, approving authority is given to the Honorable Minister for Planning;

• If the total project cost is more than TK. 25 core, approving authority Executive Committee of the National Economic Council (ECNEC);

• An approval order for each DPP has to be issued within 3 days ;

Summary of Approval Process and Time line for Investment Project

Steps of DPP Preparation and Approval Specific time limit given in the planning Process

DPP prepares by IA and submit to the Ex. Ministry /Div.

Ex. Ministry/Div. scrutinizes the DPP through Project Scrutiny Committee (PSC) of the Ministry/Div.

No time limit for the Ministry/ Div. after receiving the DPP from IA.

If project requires manpower, Executing Ministry send s the DPP to the Manpower Review Committee of Finance Division

15 days after receiving the proposal ( Manpower committee should provide their specific recommendation within the specific time)

IA revised/re-casted the DPP as per recommendation of the Manpower Review Committee

No time limit for IA

StepsNo.


1 DPP prepares by IA and submit to the Ex. Ministry /Div.

2 Ex. Ministry/Div. scrutinizes the DPP through Project Scrutiny Committee (PSC) of the Ministry/Div.

No time limit for the Ministry/ Div. after receiving the DPP from IA.

3 If project requires manpower, Executing Ministry send s the DPP to the Manpower Review Committee of Finance Division

15 days after receiving the proposal ( Manpower committee should provide their specific recommendation within the specific time)

4 IA revised/re-casted the DPP as per recommendation of the Manpower Review Committee

No time limit for IA


Step No.


5 After receiving the updated DPP from IA, Ex. Ministry/Div. sends the DPP to the Planning Commission

10 days after receiving the DPP from IA

6 Planning Commission examine the DPP and if the project not accepted as per criteria of the government , Planning Commission returns the DPP to the Ex. Ministry/Div. with specific comments;

30 days after receiving the DPP from Ministry/Div.

7 Planning Commission may return the DPP to the Ex. Ministry/Div. for resubmission with specific comments .

30 days after receiving the DPP from Ministry/Div

8 Ex. Ministry/Div. resubmit the DPP by incorporating the suggestions/changes provided by the Planning Commission;

25 days after receiving the DPP from Planning Commission.


Step No.


9 Planning Commission submit the updated/revised/re-casted DPP to the Project Evaluation Committee (PEC) meeting for recommendation for approval

30 days after receiving the DPP from Ex. Ministry/Div.

10 If 30 days over after receiving the DPP from the ex. Ministry, Planning Commission can not return the DPP to the Ex. Ministry. Planning Commission should process the DPP for PEC with specific comments

PEC committee notice with working paper should be issued before seven days of the meeting.

11 Planning Commission circulate the PEC committee Meeting Minutes ;

10 days after PEC Meeting.

12 Ex. Ministry/Div. resubmit the DPP to the Planning Commission by incorporating the suggestions/changes provided by the PEC;

25 days after receiving the PEC meeting minutes from Planning Commission.


Step No.


13 If any cost rationalization needed as per decision of the PEC, IMED/Planning Commission rationalized the project cost.

15 days after receiving the minutes of the PEC .

14 After receiving the rationalized cost from IMED, Ex. Ministry /Div. updated/revised/re-casted the DPP and submit to the Planning Commission .

25 days after receiving the rationalized cost from IMED.

15 If Ex. Ministry/ Div. fails to submit the updated DPP to the Planning Commission within 40 days after receiving the minutes of the PEC and cost rationalization minute of IMED , the approval process of the project must be considered automatically void, and this project will not be considered further for approval.


Step No.


16 After receiving the updated DPP as per decision of the PEC and IMED , Planning commission process the DPP for final approval from • Planning Minister if the project cost within 25 crore;•ECNEC if the project cost 25 crore and above

10 days after receiving the Updated DPP from Ex. Ministry.

Total Time required if we follow all the above steps of approval process

185 Working Days ( 6 month and 05 days)

Technical Assistance (TA) Project

• Implementing Agency (IA)/Executive Agency prepares Technical Assistant Project Proposal (TPP) and submits to the Ministry;

• The planning Wing/Branch of the Ministry preliminary examines acceptability of the proposal;

• If the Project cost is within TK. 7 Crore, planning Wing/ Branch of the Ministry submits TPP to the Departmental Special Project Evaluation Committee (DSPEC) for recommendation;


• Hon’ble Minister of that Ministry approves TPP on the basis of DSPEC recommendations

• This process shall be completed within 30 days by the Ministry from the receiving date.


• If the Project cost is above TK. 7 Crore, Ex. Ministry sends TPP to the Planning Commission;

• Respective Sector Division of PC submits the TPP to the SPEC meeting;

• Minister for Planning approves TPP on the basis of recommendation of SPEC;

• This process shall be completed within 45 days by PC from the receiving date;

Revision of projects

• Project should not be revised more than two times;

• Third time revision allowed incase of special needed but third time revision should be processed with the prior approval of the Minister for Ministry of Planning;

Why revision

• If planned objectives are not achievable and have to change;

• If cost is increased due to currency fluctuation and/or CDVAT cost changed;

• If national pay scale and other allowances are enhanced;

• If physical items’ cost is increased or decreased;• If design needs to be changed;

Why revision

• If have to include new items, change in personnel, vehicle and mode of finance

• Two times revision allowed • No post facto approval • If need 3rd revision- Prior permission from Planning

Minister for processing

First revision

• Prepare in RDPP format.• Ministry approve Revised Project cost up to 10%

increase/decrease under certain conditions with the recommendation of DPEC ( objectives, mode of finance, source of fund, vehicle , manpower unchanged and inclusion of new Item)

• If project cost increase / decrease upto 20%, approval authority Planning Minister

• If project cost above 20% and total project cost within 25 crore, approval authority Planning Minister

All other cases ECNEC approves

Second revision

• If project cost up to 20%, approval authority Planning Minister

• If project cost above 20% and total project cost within 25 crore, approval authority Planning Minister

• All other cases ECNEC approve

Revision of TPP

• If Revised Project cost increase/decrease up to 25%; Concern Minister may approve with the recommendation of DSPEC

• If the project cost is increased more than 25%; approval is done by the Planning Minister.

• Two times project revision is allowed• No post facto approval • If need 3rd revision- Prior permission from Planning Minister

for processing

Second revision

• Planning Minister approve it • within 45 days• Any revision with time extension needed the

recommendation of ERD