In Bangladesh, the complex processing of foreign-assisted loans and technical assistance projects has increased transaction costs and reduced the efficiency of external assistance. The structure and format of project documents (PP/PCP and TAPP) are rigid and complex. The process of approval of PCP (for investment projects) is lengthy, involving multiple stages and agencies often resulting in long delays in project processing. TAPP review and approval procedures are also lengthy.
Parallel efforts have been undertaken in some developing countries to streamline domestic procedures for the review and approval of foreign- assisted initiatives. In the case of Bangladesh, a discussion on this issue took place at the Bangladesh Development Forum (BDF) on 17-18 May 2003. On that occasion, several donors urged the Finance Minister, Mr. M. Saifur Rahman, to consider a change of GoB procedures, which would make it unnecessary for the government and the donors to process two parallel documents for each donor-funded intervention (i.e. the project document usually produced by the donor and the Government’s PP/PCP in the case of investment projects and TAPP in the case of technical assistance projects). The Finance Minister expressed his sympathy for this proposal, and further dialogue on this issue has since taken place between small groups of interested aid institutions and officials in the ERD.
A joint government/donor working group on Streamlining Project documents was set up in February, 2004. Draft streamlined TAPP and PP/PCP documents have been produced to be considered by the working group. It comprises the following institutions: ADB, DFID, UNDP and the World Bank. It is expected that the results of the working group's deliberations will be made public some time during the third quarter of 2004.
|
| Excerpt from the Prime Minister's speech at the BDF 2004: |
|
"Effective utilization of external resources remains a major area of our initiates. I am happy to say that the government is taking some concrete steps to rationalize the format of project documentation. Procedures have also been developed for streamlining and further simplifying the process of project approval. I believe these measures will significantly help improve the speed and quality of project implementation."
|
|
