Completion Report
Program Number: 37017-013 Loan Number: 2362 Technical Assistance Number: 4983 December 2020
Bangladesh: Good Governance Program
This document is being disclosed to the public in accordance with ADB’s Access to Information Policy.
CURRENCY EQUIVALENTS
Currency unit – taka (Tk)
At Appraisal At Completion (23 July 2007) 30 September 2018 Tk1.00 = $0.0145783 $0.0119402 $1.00 = Tk68.59500 Tk83.75000
ABBREVIATIONS
ACC – Anticorruption Commission ADB – Asian Development Bank APA – annual performance agreement BJSC – Bangladesh Judicial Service Commission DANIDA – Danish International Development Agency DFID – Department for International Development DMF – design and monitoring framework FY – fiscal year GDP – gross domestic product GIZ – Deutsche Gesellschaft für Internationale Zusammenarbeit GRS – grievance redress system ICT – information and communication technology MLJPA – Ministry of Law, Justice, and Parliamentary Affairs NIAC – National Integrity Advisory Council NIS – National Integrity Strategy PSC – Public Service Commission SDR – special drawing rights TA – technical assistance UNCAC – United Nations Convention Against Corruption UNDP – United Nations Development Programme
NOTES
(i) The fiscal year (FY) of the Government of Bangladesh and its agencies ends on 30 June. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2020 ends on 30 June 2020.
(ii) In this report, “$” refers to United States dollars.
Vice-President Shixin Chen, Vice President, Operations 1 Director General Kenichi Yokoyama, South Asia Department (SARD) Director Manmohan Parkash, Bangladesh Resident Mission, SARD
Team leader Gobinda Bar, Senior External Relations Officer, SARD
Team members Nashiat A. Chowdhury, Operations Assistant, SARD Tika Limbu, Principal Portfolio Management Specialist, SARD Ruby Sarcar, Project Analyst, SARD
In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS
Page BASIC DATA i I. PROGRAM DESCRIPTION 1 II. DESIGN AND IMPLEMENTATION 1 A. Program Design and Formulation 1 B. Program Outputs 3 C. Program Costs and Financing 5 D. Disbursements 6 E. Program Schedule 6 F. Implementation Arrangements 7 G. Technical Assistance 7 H. Consultant Recruitment and Procurement 8 I. Gender Equity 8 J. Safeguards 8 K. Monitoring and Reporting 8 III. EVALUATION OF PERFORMANCE 9 A. Relevance 9 B. Effectiveness 10 C. Efficiency 11 D. Sustainability 11 E. Development Impact 12 F. Performance of the Borrower and the Executing Agency 14 G. Performance of the Asian Development Bank 14 H. Overall Assessment 14 IV. ISSUES, LESSONS AND RECOMMENDATIONS 15 A. Issues and Lessons 15 B. Recommendations 15
APPENDIXES 1. Design and Monitoring Framework 16 2. Policy Matrix 23 3. Status of First Tranche Policy Conditions 27 4. Status of Second Tranche Policy Conditions 30 5. Status of Third Tranche Policy Conditions 33 6. Chronology of Main Events 35 7. Status of Compliance with Loan Covenants 36 8. Status of Program Assurances 42 9. Technical Assistance Completion Report 44 10. Overview of Reforms in Bangladesh, 1972–2000 58
BASIC DATA
A. Loan Identification 1. Country Bangladesh 2. Loan number and financing source 2362-BAN(COL) 3. Program title Good Governance Program 4. Borrower People’s Republic of Bangladesh 5. Executing agency Cabinet Division, and Office of the Registrar of the Supreme Court 6. Amount of loan $150,000,000 7. Financing modality Program Loan
B. Loan Data 1. Appraisal – Date started 15 July 2007 – Date completed 23 July 2007
2. Loan negotiations – Date started 6 September 2007 – Date completed 6 September 2007
3. Date of Board approval 30 October 2007
4. Date of loan agreement 1 November 2007
5. Date of loan effectiveness – In loan agreement 30 January 2008 – Actual 26 November 2007 – Number of extensions None
6. Project completion date – Appraisal 26 November 2011 (48 months from the date of loan effectiveness) – Actual 30 September 2018
7. Loan closing date – In loan agreement 31 March 2012 – Actual 16 November 2018 – Number of extensions 8
8. Financial closing date – Actual 16 November 2018
9. Terms of loan – Interest rate 1.0% per annum during grace period; 1.5% per annum thereafter – Maturity (number of years) 24 years – Grace period (number of years) 8 years
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10. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 29 November 2007 9 October 2018 130 months 11 days Effective Date Actual Closing Date Time Interval 26 November 2007 16 November 2018 131 months 21 days
b. Amount
Allocation Table ($ million) Original Decreased Canceled Last Amount Undisbursed Allocation during during Revised Disbursed Balance Category Implementation Implementation Allocation (1) (2) (3) (4=1+2–3) (5) (6) Good 150.000 0 0 Governance 146.344 146.344 3.656 Program TOTAL 150.00 0 0 146.344 146.344 3.656 Note: The $3.656 million gap results from the exchange rate fluctuation.
Allocation Table (SDR million) Original Decreased Canceled Last Amount Undisbursed Allocation during during Revised Disbursed Balance Category Implementation Implementation Allocation (1) (2) (3) (4=1+2–3) (5) (6) Good Governance 97.910 0 0 97.910 97.910 0 Program TOTAL 97.910 0 0 97.910 97.910 0
C. Program Data 1. Program cost ($ million) Cost Appraisal Estimate Actual Foreign exchange cost 150.000 146.344 Local currency cost 0.000 0.000 Total 150.000 146.344
2. Financing plan ($ million) Cost Appraisal Estimate Actual Implementation cost ADB financed 150.000 146.344 Total implementation cost 150.000 146.344 Interest during implementation Borrower financed 0.000 0.000 ADB financed 0.000 0.000 Total interest during implementation 0.000 0.000 ADB = Asian Development Bank.
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3. Cost breakdown by tranche ($ million) Component Appraisal Estimate Actual First tranche 52.120 52.119 Second tranche 53.387 53.386 Third tranche 40.982 40.838 146.489* 146.344 * Because of the exchange rate fluctuation, the cost breakdowns of appraisal loan estimate total $146.489 million (instead of $150 million) though the SDR amount (97,910,000.00) remained unchanged.
4. Program schedule Original Tranche Actual Tranche Tranche Release Date Release Date First tranche 26 November 2007 29 November 2007 Second tranche 26 August 2008 28 November 2008 Third tranche 30 June 2009 9 October 2018
D. Data on Asian Development Bank Missions No. of Specialization Name of Mission Date Person-Days of Members a Inception mission 20–29 November 2007 20 i, o Loan review 1 27 February to 3 March 6 i, o 2008 Loan review 2 28 April to 2 May 2008 5 i, o Loan review 3 11–18 May 2008 8 i, o Loan review 4 7–16 September 2008 10 i, o Loan review 5 24–31 March 2009 8 i, o Loan review 6 31 January to 2 3 c, i, o February 2011 Loan review 7 10–21 July 2011 11 p, o Consultation 1 7 March 2012 1 d, g, o Consultation 2 7–8 July 2014 2 d, i, o Consultation 3 26–28 August 2014 3 d, i, o Loan review 8 9–10 June 2015 2 d, e, o, y Loan review 9 22–25 May 2016 4 d, e, o, m Loan review 10 19–24 December 2017 6 d, o, c Loan review 11 22–24 April 2018 2 o, c a c = consultant, d = director, e = economist, g = director general, i = project implementation specialist, m = head portfolio management unit, o = project officer, p = principal public management specialist, y = deputy country director.
I. PROGRAM DESCRIPTION
1. The Bangladesh economy grew by 6.9% on average from fiscal year (FY) 2011 to FY2019, sustaining 8.2% growth in FY2018–FY2019. During FY2001–FY2019, poverty declined from 48.90% to 20.50%, and extreme poverty fell from 34.30% to 10.50%. The country attained lower middle-income status in 2015 and met all the criteria to graduate from least developed country status in March 2018. Per capita income in 2020 stands at $2,064, up from $940 in 2012. The country has also made significant social development gains with gender parity and 98% enrollment in primary education. Life expectancy at birth increased to 72.60 years from 58.21 in 1990, and population growth rate reduced to around 1.20% from around 2.70% in 1980. About 96% of people own personal mobile phones, 66% have internet connectivity, and 97% have access to electricity.
2. Until 1990, fifteen years of military rule gave rise to a system of patron–client politics, severely constraining the institutionalization of good governance.1 After 1990, the national development plans of all the succeeding governments included good governance as a key goal for reducing corruption, improving service delivery, and reforming the civil service. Recognizing the development constraints, election manifestos of the major political parties pledged key governance reforms, including separation of the judiciary from the executive, establishment of an independent Anticorruption Commission (ACC), and the right to information; these pledges virtually established a national consensus on the issues.
3. The Asian Development Bank (ADB) approved the Good Governance Program in 2007 in accordance with the ambitious and bold national policies and priorities set by the caretaker government after it had taken office in January 2007.2 The program is considered the most comprehensive institutional reform program of the country.3 The program envisaged implementing critical and comprehensive policy reforms in anticorruption, judiciary, public service, and sector governance. It laid out 47 policy actions for implementation in three tranches. The program’s envisaged impact was higher economic growth and enhanced public access to effective public services. The expected outcome was improved governance and lower incidence of corruption in the public sector in Bangladesh. The program outputs included specific actions in three broad areas: (i) vision, strategy, and procedures; (ii) enforcement and sanction mechanisms; and (iii) prevention mechanisms.
II. DESIGN AND IMPLEMENTATION
A. Program Design and Formulation
4. ADB designed the program in 2007 anticipating that the next government would review and revalidate the program’s key features in accordance with its policies and priorities. The
1 Abu Elias Sarker. 2008. Patron-Client Politics and Its Implications for Good Governance in Bangladesh. International Journal of Public Administration. 31(12). pp. 1416–1440. DOI: 10.1080/01900690802194966; and Akbar Ali Khan. 2010. Friendly Fires, Humpty Dumpty Disorder, and Other Essays. Dhaka: University Press Limited. 2 ADB. 2007. Report and Recommendation of the President to the Board of Directors: Proposed Loan and Technical Assistance Grant to the People’s Republic of Bangladesh for the Good Governance Program. Manila. The caretaker government system was introduced in 1996 through the 13th amendment to the constitution of Bangladesh to facilitate free, fair, and credible parliamentary election. The caretaker government would act as an interim government, conduct the general election, and subsequently hand over the power to the elected government. The caretaker government system was scrapped through the 15th amendment of the constitution in 2011. 3 Salahuddin Aminuzzaman and Sumaiya Khair. 2017. Governance and Integrity: The National Integrity System in Bangladesh. Dhaka: University Press Limited.
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program design was consistent with the national development plans and ADB strategies at appraisal and completion. The program objectives had long been reflected in various governments’ development strategies. The Fifth Five Year Plan, 1998–2002 emphasized the need to institutionalize good governance, separate the judiciary from the executive branch of government, and establish a pro-people public service system.4 Bangladesh’s National Strategy for Accelerated Poverty Reduction, 2004 highlighted good governance as a key to accelerating socioeconomic development and improved service delivery.5 The Sixth Five-Year Plan, FY2011– FY20156 amplified the priority on good governance and the Seventh Five-Year Plan, FY2016– FY2020 further strengthened it.7 The government’s joint cooperation strategy, 2010–2015, accorded with development partners in 2010, emphasized continuing to implement key reforms and programs in democratic and economic governance.8 The manifesto of the government that took office in 2019 put good governance at the core, while emphasizing implementation of mega infrastructure projects, enhanced use of information and communication technology (ICT), rural development, employment generation, and quality education in accordance with the Sustainable Development Goals. Good governance, democratization, decentralization, and capacity building are among the key focuses of the government’s upcoming long-term strategy Perspective Plan 2041.9
5. The program design also aligned with ADB’s (i) country strategy and program, 2006–2010, which aimed to help Bangladesh address key thematic and sectoral governance issues, improve investment climate for private sector-led growth and employment, and advance the social development agenda to empower the poor; (ii) country partnership strategy, 2011–2015, which emphasized building capacity for e-governance, procurement, audit, and financial management, and promoting institutional and governance reforms; and (iii) country partnership strategy, 2016– 2020, which emphasized improving governance, addressing institutional capacity constraints, and strengthening service delivery.10 The program design reflected the recommendations of the country assistance program evaluation for Bangladesh in 2003, which emphasized the importance of institutional reform and capacity development.11 The program objectives were also guided by ADB’s second medium-term strategy, 2006–2008 for improving governance and preventing corruption.12 The program remained relevant to ADB’s Strategy 2020 and Strategy 2030,13 which emphasized good governance as a key driver of change and operational priority.
6. The program design built on the caretaker government’s demonstrated commitment in reforming governance and anticorruption institutions, political parties, civil service, and judiciary. The design reflected the government’s vision of establishing a modern democratic Bangladesh free from corruption, discrimination, and exploitation by enhancing access to justice for all, and
4 Government of the People’s Republic of Bangladesh. Fifth Five Year Plan, 1998–2002. Section 2.1.14 pp.41-42. Dhaka. 5 Government of the People’s Republic of Bangladesh, Planning Commission. 2004. Unlocking the Potential: National Strategy for Accelerated Poverty Reduction. Dhaka. 6 Government of the People’s Republic of Bangladesh, Planning Commission. 2011. Sixth Five Year Plan, FY2011– FY2015. Dhaka. 7 Government of the People’s Republic of Bangladesh, Planning Commission. 2015. Seventh Five Year Plan, FY2016– FY2020. Dhaka. 8 Government of the People’s Republic of Bangladesh, Ministry of Finance. 2010. Bangladesh Joint Cooperation Strategy, 2010–2015. Dhaka. 9 Shamshul Alam. 2019. Vision 2041: Alignment with Other Macro Plans. The Financial Express. April 6. 10 ADB. 2005. Country Strategy and Program: People’s Republic of Bangladesh, 2006–2010. Manila; ADB. 2011. Country Partnership Strategy: People’s Republic of Bangladesh, 2011–2015. Manila; and ADB. 2016. Country Partnership Strategy: People’s Republic of Bangladesh, 2016–2020. Manila. 11 Independent Evaluation Department. 2003. Country Assistance Program Evaluation of Bangladesh. Manila. ADB. 12 ADB. 2006. Medium-Term Strategy II. Manila. 13 Strategy 2020. 2008-2020. ADB; Strategy 2030. July 2018. ADB.
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improving sectoral governance.14 The program also considered the progress in addressing some of the broad governance issues, including improving fiscal management, financial management, project documentation and processing, public sector management efficiency, and corporate governance in key sectors. The caretaker government—in particular, the Economic Relations Division; the Ministry of Law, Justice and Parliamentary Affairs (MLJPA); and the Office of the Chief Adviser—provided leadership and active guidance in developing the program concept, scope, and design in close coordination with ADB. Wide stakeholder consultations conducted with government officials, development partners and civil society generated participation and commitment. Collaboration with various development partners in governance and anticorruption prevented duplication of interventions and enhanced quality of policy dialogues.15
7. The policy-based multitranche program lending modality was appropriate for the delivery of outputs, with 47 policy actions for compliance in three tranches, by providing flexibility in implementing reforms according to the government’s capacity. The program adopted innovative features that included providing a national integrity strategy (NIS), aligned with the United Nations Convention Against Corruption (UNCAC) and developed in close coordination with nongovernmental organizations and civil society, to critically assess corruption vulnerability.16 It is the first government program to adopt a comprehensive approach to address governance issues from policy, enforcement, and prevention perspectives. The program had a broad coverage of policies and institutions spanning from corporate to sector levels, with a harmonized approach agreed by development partners. ADB processed an attached technical assistance (TA) to support program implementation and capacity building.
B. Program Outputs
8. The program had three broad outputs to which the policy actions contributed to. The government complied with 44 of 47 policy conditions.17 The program had a total of 26 output targets and achieved 24. The unmet policy actions, which were waived by the Board of Directors in September 2018, are yet to be achieved. All but two reforms implemented under the program have been sustained (paras. 15 and 30). The design and monitoring framework (DMF) in Appendix 1 provides the details of achievements.
1. Output 1: Vision, Strategy, and Procedures
9. All the nine targets for output 1 were achieved. The government ratified the UNCAC in 2007 and implemented an action plan in 2012. Subsequently, the government approved and implemented the NIS. It also formed the National Integrity Advisory Council (NIAC), headed by the Prime Minister, and the executive committee of the NIAC, headed by the finance minister, to oversee the NIS implementation. The Cabinet Division formed a National Integrity Implementation Unit, headed by a senior official (rank of additional secretary to the government), to (i) monitor and assist NIS implementation nationally across the public sector and (ii) publish NIS implementation and progress reports regularly in its website. The ACC Act, 2004 was amended
14 Government of the People’s Republic of Bangladesh, Planning Commission. 2004. Unlocking the Potential: National Strategy for Accelerated Poverty Reduction. Dhaka. 15 ADB. 2007. Report and Recommendation of the President to the Board of Directors: Proposed Loan and Technical Assistance Grant to the People’s Republic of Bangladesh for the Good Governance Program. Manila. pp. 37. 16 The NIS is a comprehensive set of goals, strategies, and action plans aimed at increasing the level of independence, accountability, efficiency, transparency, and effectiveness of the state and nonstate institutions to improve governance and reduce corruption in a holistic manner. 17 The program achieved all the 15 policy actions under the first tranche, 15 of 17 actions on the second tranche, and 14 of 15 actions under last tranche.
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in 2008, allowing ACC full independence in investigation and prosecution matters. The ACC established eight divisional and 36 integrated district offices to decentralize its operations for widening outreach effectively while using resources efficiently. The ACC, the Bangladesh Judicial Service Commission (BJSC), and the Supreme Court established realistic performance management schemes.18 The strengthened ACC is functioning with better performance and higher rates of conviction and disposal of cases. At least five key sectors, including education, health, power, port, and railways, adopted performance indicators on corruption vulnerabilities.
10. ACC achieved a 100% conviction rate in money laundering cases in 2018. Approval of charge sheets of cases was 484 in 2014, 614 in 2015, 535 in 2016, 382 in 2017, and 236 in 2018. The annual conviction rate19 in cases filed by ACC increased from 33% in 2011 to 68% in 2017 and 63% in 2018. After opening a hotline in 2017, ACC received 1,718,736 telephonic complaints in 2018. The ACC conducted 27 public hearings with 87% disposal of complaints in 2018 against only 5 in 2015.20 In overall institutional performance and features, ACC stands among the top three anticorruption agencies in South Asia.21 Bangladesh’s position in Transparency International’s Corruption Perception Index has significantly improved from the global “most corrupt” ranking in 2004: the country scored 2.1 (21 in current index) in 2008, 25 in 2015, and 26 in 2016 and 2019.22 The UNCAC Civil Society Coalition Report 2011 confirmed that Bangladesh’s legal regime largely complies with the standards and principles of the UNCAC.23
2. Output 2: Enforcement and Sanction Mechanisms
11. The program achieved eight out of the nine targets for output 2.24 The program made a breakthrough by achieving the separation of judiciary from the executive branch of government. The Amendment to the Code of Criminal Procedure in 2007 has further invigorated the enforcement and sanctions mechanisms. In 2007, the BJSC was established to ensure timely recruitment of judicial officers. During 2008‒2020, the BJSC recruited 1,522 lower court judges to strengthen the judiciary. Human resource structures and staffing plans for the BJSC, judiciary, and prosecution service were developed and approved. Since the judiciary separation, the Supreme Court has been consolidating its responsibility for most judicial and administrative functions, including inspection, supervision, and control of the subordinate judiciary, judicial magistrates, and the criminal justice system. The appellate and high court divisions of the Supreme Court, and the lower courts have increased the disposal of cases over the years. In 2018, the Supreme Court disposed of 55,730 cases, compared to 32,593 cases in 2013.25 Such performance indicators are published in the Supreme Court annual reports, initiated in 2008 with assistance from the program. To improve systemic effectiveness, the Supreme Court implemented revised performance indicators and realistic monitoring and reporting protocols for the judiciary. The Supreme Court also elevated its registrar’s office to the Office of Registrar
18 Performance management schemes include standards of services for citizens, official functions, and internal processes. 19 Conviction rate is the number of convictions as a percentage of the total number of prosecutions undertaken within a year. 20 Anti-Corruption Commission. 2018. Annual Report 2018. Dhaka. 21 Transparency International. 2017. Strengthening Anti-Corruption Agencies in Asia Pacific: Regional Synthesis Report. Berlin. 22 Transparency International. Our Work in Bangladesh. https://www.transparency.org/country/BGD. 23 Transparency International and the UNCAC Coalition. 2011. UN Convention Against Corruption Civil Society Review: Bangladesh 2011. Dhaka. 24 The program did not achieve the target of establishing an independent and competent prosecution (attorney) service. ADB’s Board of Directors approved the waiver of this policy condition in September 2018. 25 Supreme Court of Bangladesh. 2013. Annual Report 2013. Dhaka; and Supreme Court of Bangladesh. 2019. Annual Report 2018. Dhaka.
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General, with additional responsibility for monitoring, reporting and other functions. To promote transparency, both the judiciary and the executive branches implemented systems for members of the judiciary and public bureaucrats to submit property and asset statements.26 The government is allocating adequate resources and investing in human resource and infrastructure development for the judiciary (para. 35). The caretaker government in 2008 issued an ordinance for creating an independent and competent prosecution (attorney) service and established the Attorney Department. It also issued an ordinance specifying qualifications criteria of High Court judges. However, because the elected government in 2009 did not submit the ordinances to the Parliament for ratification, the laws lapsed automatically (paras. 15 and 30).
3. Output 3: Prevention Mechanisms
12. Seven of the eight targets for output 3 were achieved, with the remaining action for establishing an office of the ombudsperson waived by the ADB’s Board of Directors in September 2018. The government enacted the Right to Information Act in 2009 and subsequently established the Information Commission. The whistleblower protection law, enacted in 2011, encourages a climate of anticorruption. According to NIS provisions, all ministries prepare action plans on corruption mitigation measures annually. The Cabinet Division regularly publishes NIS implementation reports. Key sectors including power, roads, railways, education, health, and shipping have conducted vulnerability to corruption assessments to identify specific risks in financial management and procurement and adopted specific action plans to reduce the identified risks. The relevant ministries approved budgets to implement the risk mitigation plans. The Chattogram Port Authority prepared a strategic plan for reforms and the port operations have improved.27 The Cabinet Division implemented citizen’s charter specifying public service standards and commitments, as well as a grievance redress system (GRS) across the public sector, and instituted monitoring and supervision mechanisms. The online GRS facilitated actions on citizens’ grievances and enhanced public officials’ responsiveness to complaints, resulting in improved service delivery.
13. In a major reform, the government in 2018 abolished all quotas in civil service’s class I28 and class II levels of recruitment to further promote quality and competitiveness. The national pay scale was raised by 100% in 2015. The public service commission functions under a constitutional mandate to conduct recruitment tests for class I and class II officers independently, fairly, and transparently. Instead of establishing an office of ombudsperson to handle maladministration, petty crimes, and complaints in the delivery of public services, the government has implemented alternative measures.29 These include the GRS, annual performance agreement (APA) system, and open house program that enables public to discuss their complaints with the heads of the field-level offices at least once in a month. The right to information act, Office of Information Commission, independent ACC, human rights commission, and other commissions help resolve public complaints in various facets of service delivery (para. 38).
C. Program Costs and Financing
14. At appraisal, the program was estimated to cost $170 million, of which ADB provided $150 million (SDR97,910,000) from its Special Funds resources, with the remainder to be provided by
26 Out of 927 judicial officers, 903 submitted asset statements by May 2008, soon after the separation of the judiciary. The remaining 24 were either abroad, had tendered resignation, or had departmental proceedings against them. 27 https://www.thedailystar.net/business/news/ctg-port-58th-among-100-busiest-ports-1953353. 28 ‘Class I officers’ indicate top band for officers within 1-9 grades among the 20 grades in Bangladesh public service. 29 ADB. 2018. Progress Report on Tranche Release: Good Governance Program (Third Tranche) in Bangladesh. Manila. paras. 48–50, and p. 26 (Appendix 2).
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(i) other development partners on governance and anticorruption reforms and judiciary support and (ii) the Government of Bangladesh. Actual ADB financing totaled $146.34 million, 2.40% lower than estimated, because the taka depreciated against the US dollar. The program involved three tranches, each to be released upon compliance with the respective policy actions for each tranche (Appendix 2). A TA grant totaling $2.50 million accompanied the program loan to help the executing and implementing agencies implement the program and build capacity (para. 19).
D. Disbursements
15. The total actual disbursement was $146.34 million.30 The first tranche of $52.12 million (originally $50 million) was disbursed on 29 November 2007 upon loan effectiveness and implementation of 15 policy actions. The second tranche of $53.39 million (original $55 million) was released on 28 November 2008 after full compliance with 16 policy actions and partial compliance with one action. However, two of the 16 policy conditions of the second tranche (independent and competent prosecution or attorney service, and high court judges’ qualification criteria), which were complied with in 2008, were not sustained as the relevant ordinances promulgating the reforms had lapsed since the new government, installed in 2009, did not submit the ordinances to the parliament for ratification. The government’s decision to shelve the reforms reflected the views of the lawyers and bar members, who are usually appointed as public prosecutors and high court judges. Another second tranche policy action (approval and publishing of the NIS), partially complied with in 2008, was fully complied with in 2012. Under the third tranche, the lone unmet condition for establishing an office of ombudsperson was considered partially complied with as the government implemented alternative measures (para. 13).31 Altogether, three policy actions (two from second tranche and one from third tranche) were deemed to be unfulfilled. Based on the 93.6% compliance rate of policy actions (44 achieved out of 47) and the publicly-expressed commitment of top government leaders to implement the remaining reforms, ADB’s Board of Directors in September 2018 approved waiver of the three unfulfilled policy conditions and release of the third tranche. Hence, the third and final tranche of $40.84 million (originally $45 million) was disbursed on 9 October 2018 with a delay of 111 months and 9 days from the original disbursement date. The status of first, second, and third tranche release policy actions are in Appendixes 3, 4, and 5, respectively.
E. Program Schedule
16. The Good Governance Program was designed for four years from effectiveness on 26 November 2007 until 26 November 2011. The program was extended 8 times for 78 months, until 30 September 2018, to allow time for implementation of two policy actions (independent and competent prosecution or attorney service, and high court judges’ qualification criteria), which were complied with in 2008 but could not be sustained, and another policy condition (establishing an office of ombudsperson), which was partially complied through implementation of alternative measures. Top government leaders including the Minister for Law, the executing agency (Cabinet Division), and the development partners supporting the program recommended extending the program to allow time to implement the unfulfilled critical reforms.32 The program was financially closed on 16 November 2018. The chronology of main events is in Appendix 8.
30 Due to exchange rate fluctuation, the loan amount decreased from $150 million to $146.34 million, though the SDR amount remained unchanged. 31 ADB. 2018. Progress Report on Tranche Release: Good Governance Program (Third Tranche) in Bangladesh. Manila. paras. 48–50, and p. 26 (Appendix 2). 32 ADB. 2018. Progress Report on Tranche Release: Good Governance Program (Third Tranche) in Bangladesh. Manila. para. 63.
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F. Implementation Arrangements
17. The program had a robust implementation arrangement with two executing and 15 implementing agencies. The structure is deemed appropriate given the magnitude of reforms expected. The Supreme Court was the executing agency for interventions related to strengthening the judiciary. The Cabinet Division was the executing agency for all other interventions. There were 15 implementing agencies for this complex program: the ACC; Law and Justice Division of the MLJPA; Legislative and Parliamentary Division of the MLJPA; BJSC; Ministry of Shipping; Chattogram Port Authority; Ministry of Public Administration; PSC; Economic Relations Division (representing the borrower); Finance Division; Ministry of Foreign Affairs; Bangladesh Railway; Ministry of Education; Power Division of the Ministry of Power, Energy and Mineral Resources; and Ministry of Health and Family Welfare.
18. The executing agencies demonstrated strong ownership and capable leadership. The Cabinet Secretary, the senior-most civil bureaucrat, played a key role in the program’s successful implementation by chairing the program steering committee, where senior officials from the 15 implementing agencies’ line ministries and other key agencies, such as the Prime Minister’s Office, Ministry of Finance, MLJPA, Supreme Court, BJSC, and PSC actively participated. Both the executing agencies, the Cabinet Division, and the Supreme Court, established separate dedicated program management units (PMUs)—one headed by an additional secretary33 and the other headed by the Registrar of the Supreme Court. The PMUs effectively monitored, coordinated, and steered program implementation until the source of funds, the attached TA ‘Supporting Good Governance Program’, was closed on 30 June 2014. The PMUs were adequately staffed with full time additional and deputy program coordinators and other staff. ADB actively provided program implementation support. Other development partners, notably the Danish International Development Agency (DANIDA), Department for International Development (DFID) of the United Kingdom, GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit), Japan International Cooperation Agency (JICA), United Nations Development Programme (UNDP), and United States Agency for International Development (USAID), actively participated in policy dialogues and provided valuable feedback on policy and implementation issues.
G. Technical Assistance
19. ADB approved $1.5 million, and the Government of Denmark, $1.0 million from its Human Rights and Good Governance Program, Phase II for the Good Governance Program’s attached TA grant project entitled Supporting Good Governance Program. The Government of Bangladesh was to contribute $0.5 million in kind as counterpart staff, office accommodation, and logistical support. The TA supported the executing and implementing agencies to implement the policy reforms and actions as in the program policy matrix (Appendix 2).
20. The TA delivered all its planned outputs and activities.34 The TA provided capacity development support for the program’s executing and implementing agencies, and helped conduct studies and prepare knowledge products including (i) five assessments of vulnerability to corruption and governance risk in key sectors and (ii) the NIS and other studies. The TA helped arrange study visits and organize training programs, workshops, and seminars. The TA also helped procure ICT equipment, promoted engagements with civil society, and supported ACC’s country-wide anti-corruption campaigns and outreach programs.
33 Additional Secretary is next to the Secretary in civil service hierarchy. Secretary is the highest post in Bangladesh civil service, comparable to ‘permanent secretary’ in developed countries. 34 The TA was extended for 38 months (Appendix 9).
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21. The TA is rated successful. It is (i) relevant as it assisted critical governance reforms and strengthened the capacity of key governance institutions; (ii) effective given its achievement of outputs and outcomes; (iii) less than efficient due to delays in complying with three policy actions that remained unfulfilled under the program, and (iv) likely sustainable based on the strong commitment and participation of key government institutions. The TA completion report is in Appendix 9.
H. Consultant Recruitment and Procurement
1. Consulting Services
22. The program did not recruit consultants. However, one international firm for six person months, one international individual for two person months (against 11 person-months), and 16 national individual consultants for 137 person months (against 227 person-months) were recruited under the attached TA. The consultant recruitment followed ADB’s Guidelines on the Use of Consultants (2007, and 2013, as amended from time to time). Least cost, fixed budget, and quality-based selection methods were used. No deviations from agreed procedures occurred, and no disagreements between the executing agencies and ADB arose regarding consultant selection. The consultants, recruited in close coordination with the Cabinet Division and the Supreme Court, delivered quality outputs as scheduled.
2. Procurement
23. There was no procurement under the program loan. All procurement activities were accomplished under the TA project according to a procurement plan prepared in accordance with ADB’s Procurement Guidelines 2007 (as amended from time to time).35 Various ICT equipment were procured (Appendix 9, Attachment 3).
I. Gender Equity
24. The program neither included a gender action plan nor any specific actions or measures to take gender issues of anticorruption measures into effective consideration. The program envisaged to indirectly maximize positive impacts of governance reforms on women, who bear an unequal burden of the corruption problem and service delivery issues.
J. Safeguards
25. The Good Governance Program was categorized as C on the environment, involuntary settlement, and indigenous peoples; hence, no safeguards compliance was needed.
K. Monitoring and Reporting
26. ADB monitored the program implementation through periodic progress reports, 11 review missions, and three consultation missions to confirm fulfillment of tranche policy actions, discuss release of adequate funds from government for program activities, monitor risks and mitigation measures, and advise on actions to implement policy conditions. Both the PMUs at the Cabinet Division and the Supreme Court maintained separate performance management systems to monitor program performance through databases on the status of policy measures and program
35 ADB. 2007. Report and Recommendation of the President to the Board of Directors Proposed Loan and Technical Assistance Grant to the People’s Republic of Bangladesh for the Good Governance Program. Manila.
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indicators, based on the policy matrix and the DMF. The PMUs prepared work plans, provided technical support to the relevant agencies, coordinated the daily activities of the various implementing agencies, and provided secretariat services for all program outputs and support activities. The PMUs regularly submitted progress reports containing implementation progress, problems encountered, and corrective actions taken. In addition, three independent reviews were conducted to assess the extent of implementation of the NIS, performance of UNCAC and anticorruption work, and extent of community outreach and corruption prevention activities, including partnership modalities of anticorruption agencies with civil society. The government submitted a comprehensive completion report on the attached TA with detailed information and analysis and initiated preparation of the program completion report. Out of 36 loan covenants, 28 were fully complied with, two were largely complied with, one was not applicable, and the remaining five were not complied with (Appendix 7). The covenants related to generating counterpart funds in a special account were not achieved because the government implemented the program reforms through adequate funds allocated in the yearly national budgets (para 35).36 The government fully complied with 13 program assurances while one was not applicable (Appendix 8).
III. EVALUATION OF PERFORMANCE
A. Relevance
27. The program was relevant to all key national policies, strategies, and priorities since the restoration of democracy in 1990. Its components were in line with the election manifestos of the mainstream political parties, indicating a high degree of political relevance. The program was also critically relevant because it helped enhance the level of public trust in major service delivery institutions of Bangladesh.37 The program remained relevant with ADB’s medium- and long-term strategies, country partnership strategies, and sector strategies since it was approved in 2007. The program outputs and outcomes built on the recommendations of ADB’s country assistance program evaluations for Bangladesh for 2003 and 2009 (paras. 4 and 5).
28. At appraisal, the most critical governance problems of corruption, accountability, and transparency were rightly identified, and the program was appropriately designed for developing vision, strategy, and procedures; enforcement and sanctions mechanisms; and prevention mechanisms based on the demonstrated strong commitment of the caretaker government of 2007 (paras. 3 and 6). No changes were made to the program design during implementation. However, some indicators could have benefited from mentioning timelines or frequency for achieving targets.38 At appraisal and completion, the program maintained extensive collaboration and coordination with development partners and civil society (paras. 6 and 7). At appraisal, the program also assessed the risks of losing support from future governments and instituted mitigation mechanisms with capacity development, extensive policy dialogues with stakeholders including development partners and civil society, wide consultations with bureaucracy, and involvement of leaders of various government agencies in the program design.39 The program lending with three tranches provided an appropriate assistance modality because it allowed
36 Budget in Brief (Archive). Website of Ministry of Finance. Bangladesh (Accessed on 23 August 2020). 37 National Trust Survey, South Asian Institute of Policy and Governance, North South University, 2017. 38 The fifth outcome indicator has no specific target of annual increase and timeline. The third indicator of output 1 could have mentioned the targeted number of sectors and a timeline. The sixth indicator of output 2 did not indicate the frequency of submission. 39 ADB. 2007. Report and Recommendation of the President to the Board of Directors: Proposed Loan and Technical Assistance Grant to the People’s Republic of Bangladesh for the Good Governance Program. Manila (Appendix 9, p. 57).
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tranche releases to be flexible and contingent upon the government’s capacity and continued commitment to the reforms. The program is rated relevant because of its strong alignment with the government’s and ADB’s policies and strategies (paras. 4 and 5), appropriateness of modality, innovative features (paras. 6 and 7), adequacy of components, strong complementarity with development partners’ initiatives (paras. 6 and 7), and transformational effect for catalyzing and laying foundation for further reforms (para. 38).
B. Effectiveness
29. The program is rated effective because it (i) achieved 24 out of 26 output indicators (paras. 8‒12); (ii) complied with 44 out of the total 47 policy conditions (appendixes 3‒5), with 93.6% compliance rate; and (iii) achieved 9 of 10 outcome indicators (appendix 1). Thus, the intended outcome of improved governance and lower incidence of corruption in the public sector in Bangladesh was significantly achieved.
30. Policy actions. The ADB Board of Directors in September 2018 approved a waiver of three unmet conditions because of the 93.6% compliance of policy conditions and the government’s firm commitment to implement the three remaining reforms in the future.40 Due to a lack of consensus among stakeholders, the government implemented alternative measures including annual performance agreements, public hearing to resolve service-related complaints, and various sector-level independent Commissions instead of establishing an office of ombudsperson (paras. 13, 15 and 38). The government took initiatives for a phased implementation of an independent prosecution (attorney) service and high court judges’ qualification criteria in face of persistent parleys by the lawyers and bar members, who are usually appointed as public prosecutors and high court judges (paras. 11 and 15). Top government leaders including the Law Minister, the executing agency, and the development partners supporting the program recommended extension of the program to allow time for wider consultations for consensus building to implement the reforms. However, the three critical reforms are yet to be implemented, although the government has included these in the NIS action plan, reflecting its commitment for implementing the reforms.41
31. Results framework. All the outcome indicators were achieved except for the establishment of the office of ombudsperson, for which the government implemented alternative measures (para. 13 and 15). The government is allocating necessary budget for ACC and the judiciary to implement NIS and UNCAC provisions. The Cabinet Division has established a Coordination and Reform Wing led by a full-fledged Secretary,42 and the Supreme Court’s registrar office has been upgraded to the Office of Registrar General with more authority and responsibility. All departments have adopted the NIS, resulting in better management of grievance processes and use of resources as confirmed by the Cabinet Division. The office of auditor general is yet to prepare a report on the NIS implementation because the independent office of auditor general is yet to select the NIS implementation as a subject of audit. ACC is fully independent for investigation and prosecution of scheduled corruption. ACC annual reports show that it is more effective with higher conviction rate in resolving increased number of cases filed by ACC in reduced time (para. 10). Instead of the PSC, the BJSC is managing all appointments and personnel matters of the lower judiciary. The Supreme Court monitors and takes actions in
40 ADB. 2018. Progress Report on Tranche Release: Good Governance Program (Third Tranche) in Bangladesh. Manila. 41 National Integrity Strategy. 2012. Cabinet Division. Government of Bangladesh. 42 Highest post in Bangladesh civil service; comparable to ‘permanent secretary’ in developed countries.
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implementing the enhanced code of conduct across the judiciary. All offices have implemented accountability mechanisms including citizen charters, APA, and GRS (paras. 12,13, and 36).
32. The program established strong prevention mechanisms, including focused anticorruption interventions and accountability mechanisms. The Right to Information Act, 2009 and the Information Commission are enhancing overall transparency and accountability. The whistleblower protection law is encouraging a climate of anticorruption. Reflecting the NIS, all ministries are implementing annual action plans for mitigating corruption risks. Key sectoral agencies have conducted vulnerability to corruption assessments to identify specific risks in financial management and procurement and allocated appropriate budgets to implement the risk mitigation plans (paras. 12 and 35). The Cabinet Division has implemented a GRS in all government offices, resulting in reduced public grievances and improved service delivery.
33. Strong leadership of the executing and implementing agencies ensured quality policy inputs from experts, leading to the completion of 31 policy actions under first and second tranches by November 2008—just one year after the loan effectiveness.43 Out of the total 47 policy conditions, three could not be complied with unforeseeably, mainly because of the complex political governance climate (paras. 15 and 30). The 44 implemented policy reforms are impacting positively on overall governance and are being sustained with progressively increasing adequate budgets (para 35).
C. Efficiency
34. The program is rated less than efficient. Although the program successfully implemented around 94% of the overall policy conditions, it suffered an overall delay of 78 months in completion and needed eight extensions (para. 16). The program disbursed two of its three tranches within 13 months after approval, fully achieving 31 of the 47 policy actions. However, disbursement of the third and final tranche was delayed by about 111 months to allow time to implement three unmet policy actions that were eventually waived by ADB Board of Directors in September 2018. The government and the development partners supporting the program were in favor of giving additional time to implement three remaining reforms, of which two were fully implemented in 2008 but were not sustained, while another reform was partially achieved through implementation of alternative measures (para.15). The program was processed quickly, with the concept cleared on 17 April 2007 and the Board approval on 30 October 2007. The loan was fully disbursed with a waiver of three unmet policy conditions approved by the ADB’s Board of Directors in 2018 (para. 15).
D. Sustainability
35. The program is rated likely sustainable. All the reforms implemented under the program have been institutionalized. After launching the program in 2007, Bangladesh has significantly enhanced budgetary allocations for governance institutions. For the Supreme Court, allocation increased from $3.18 million in FY2008 to $13.3 million in FY2015, and $26.24 million in FY2021. The allocation for the ACC increased from $1.80 million in FY2008 to $6.9 million in FY2015, and $17.65 million in FY 2021.44 In addition to providing the physical infrastructures, the government is also providing appropriate human resources and other logistics to sustain the reforms and strengthen the institutions. To monitor, institutionalize, sustain, and adopt further reforms, the
43 ADB. 2008. Progress Report on Tranche Release: Good Governance Program (Second Tranche) in Bangladesh. Manila. 44 Budget in Brief (Archive). Ministry of Finance. Bangladesh (Website accessed on 23 August 2020).
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Cabinet Division has established a Coordination and Reform Wing led by a Secretary. Various citizen report cards prepared between 2009 and 2017 on sanitation, health, education, land services, and municipal services indicated positive outcomes in grievance redressal and citizens’ access to and satisfaction with the services.45 Most development partners, including DANIDA, the European Union, GIZ, JICA, UNDP, DFID, and USAID, are supporting the government to sustain and implement governance reforms. The policy, institutional, regulatory, and other reforms implemented under the Good Governance Program were logical consequences of the historical reforms in Bangladesh since 1972 (Appendix 10).
36. To reinforce transparency and accountability of the civil service, the government has introduced the APA for both individual and institutional levels. The training content and modules of all the public service training institutions have been revised aligning with the spirit and goals of the program, including the NIS. Introduction of the citizen’s charter, enhanced access to information through the internet, and increased right to information have made public administration more accountable, transparent, and accessible, raising service and ethical standards across the public sector. Recent research studies revealed significant changes in the role and attitude of the civil servants.46 The reforms, innovations and new practices have raised people’s expectations of and trust in public institutions.47 With political stability and prudent macroeconomic management, the government has shown strong political commitments for reforms and good governance, putting it at the core of its short (5 year), medium (10 year) and long-term (20 year) strategies, including the Perspective Plan 2021-2041.48 The reforms under the program support the objectives of the government’s Digital Bangladesh initiative, which envisions improved democratic and human rights, transparency, accountability, social justice, and more efficient delivery of government services using technology.49
E. Development Impact
37. The program’s development impact is rated satisfactory. All the DMF impact indicators (Appendix 1) show significant progress in economic growth, delivery of public goods, and enhanced public access to effective public services. The legal and institutional frameworks created by the program help Bangladesh reduce corruption, which still eats up around 3% of the country’s gross domestic product (GDP).50 The transport sector contributed $55 million in 2006, $82 million in 2011, and $137 million in 2019 to Bangladesh’s GDP.51 Access to electricity increased from 45% in 2008 to 97% in 2020. Per capita power consumption increased from 220 kilowatt-hours in 2011 to 512 in 2020.52 Improved power supply boosted productivity. The widened transport network, particularly rural roads, and better farm to market connectivity enabled farmers to raise their income and get better prices for their produces. The government’s development budget allocation for key economic sectors, including transport, energy, health, and education, increased exponentially during 2007–2020.53 Surveys show improvements in service delivery at
45 The citizen report card study on service delivery in government primary schools of Bangladesh was supported by Campaign for Popular Education and conducted by the Institute of Social Business in Dhaka in 2017. 46 Public Bureaucracy and Social Accountability in Field Administration. 2018. Department of Public Administration. University of Dhaka. Dhaka. 47 National Trust Survey, South Asian Institute of Policy and Governance, North South University, 2017. 48 Unb.com.bd. NEC clears perspective plan to implement Vision 2041. (accessed on 23 August 2020). 49 World Economic Forum. 26 February 2020. How digital inclusion made Bangladesh a standout South Asian economy (Accessed on 23 August 2020). 50 The Prothom Alo. 20 March 2020. Bangladesh, GDP, and corruption go hand in hand (Accessed on 12 September 2020). 51 Tradingeconomics.com/bangladesh. Bangladesh GDP from transport (website accessed on 1 October 2020). 52 Bangladesh Power Development Board. November 2020. Progress Information of Power Sector. 53 Budget in Brief (Archive). Ministry of Finance. Bangladesh (Website accessed on 23 August 2020).
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the lowest tiers of the local government.54 Access to, transparency and accountability in, and efficiency and awareness of public services have increased. Satisfaction with public services has also increased.55 Citizen report cards and social audits in several sectors indicate positive outcomes of the GRS, access to services, and citizens’ satisfaction with the services.56
38. A broad-based national consensus persists on the reforms implemented under the program. The wide, divergent, and critical reforms implemented under the program laid foundations for further reforms under the government’s own initiative. The government reconstituted the law commission, human rights commission, election commission, securities and exchange commission, energy regulatory commission, and telecommunication regulatory commission, and formed the competition commission. It also approved the Public Money and Budget Management Act 2009, and Financial Reporting Act 2015; and introduced citizen charter, APA system; and formed a financial reporting council, among other reforms. The government is now planning to reform the Companies Act 1994, Bankruptcy Act 1997, and the processes aiming to reduce the costs of doing business. In addition to abolishing quotas and raising salary for the civil service (para. 13), the government recently introduced a comprehensive Civil Service Act 2018, covering six existing associated laws of the civil service.57 The program helped improve service delivery by improving systems, rules, procedures, and capacity of government organizations.
39. The government is simplifying service processes to transform institutional systems for preventing corruption and irregularities and ensure optimum use of public resources.58 To further promote transparency and integrity, the government in 2018 issued the self-divulging of information rule. In the last decade, most governance indicators have shown upward trends. In the World Justice Project Rule of Law Index 2020, Bangladesh scored 0.55 in the right to information category, up from 0.51 in 2015.59 Public access to information has increased significantly.60 In the World Bank’s Doing Business Report 2020, Bangladesh’s overall ranking improved to 168 among 192 countries from 177 in 2018 among 190 countries. 61 In the World Economic Forum’s Global Competitiveness Index 4.0, Bangladesh’s score for “efficiency of legal framework in challenging regulations” increased to 35 in 2019 from 33.4 in 2018, and its score for efficiency of legal framework in settling disputes rose to 37.9 from 36.4.62 In the Heritage Foundation’s Index of Economic Freedom 2020, Bangladesh’s score in judicial effectiveness improved to 36.1 in 2020 from 32.6 in 2018.63
54 BIDS. 2016. Citizen Survey on Service Delivery and Institutional Efficiency of Union and Upazila Parishads. Monzur Hossain et al. Dhaka. 55 Ministry of Local Government, Rural Development and Cooperatives. Bangladesh. 2014. Citizen Perception Survey on Services Delivery: Upazila Parishad and Union Parishad. Dr. Mohammed Yusuf et. al. Dhaka. 56 ADB. 2010. PPTA 7419-BAN: Governance Management Program. Manila. Supported by the Campaign for Popular Education, the Institute of Social Business conducted the study on education in Dhaka in 2017. The government and other organizations prepared other citizen report cards about health services (Transparency International Bangladesh, 2011); sanitation (Fresh Water Action Network, 2011); health, education, and land services (Ministries of Health, Education, Land, and Local Government, 2010–2011); municipal services (Ministry of Local Government, 2009); and provision of services in the district municipalities (Local Government Engineering Department, 2012). 57 The civil service laws included Public Servants (Retirement) Act 1974; Services (Reorganization and Conditions) Act 1975; Public Service Special Provision Ordinance 1979; Punctual Attendance Act 1982; Dismissal and Conviction Act 1985; and Surplus Public Servants Absorption Ordinance 1985. 58 Service Process Simplification Manual, 2019. Cabinet Division. Government of Bangladesh. 59 www.worldjusticeproject.org. 2020. World Justice Project Rule of Law Index. 60 Weforum.org. 26 February 2020. How digital inclusion made Bangladesh a standout South Asian economy. Geneva. 61 Doingbusiness.org. 2019. Doing Business 2020. The World Bank. Washington DC. 62 The Global Competitiveness Report. 2019. World Economic Forum. Geneva. 63 Index of Economic Freedom. 2020. The Heritage Foundation. Washington D.C.
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F. Performance of the Borrower and the Executing Agency
40. Performance of the government and the two executing agencies—the Cabinet Division and the Supreme Court—was satisfactory. The new government, after taking office in January 2009, extended strong support to the program. It implemented key reforms including the NIS and sustained all other previously implemented reforms but two, despite daunting challenges. Both the executing agencies demonstrated high degree of ownership, responsibility, and leadership in implementing reforms. The Cabinet Secretary played a key role in the program’s successful implementation as the chair of the program steering committee (para. 18). Dedicated PMUs headed by an additional secretary in the Cabinet Division and the Registrar of the Supreme Court effectively monitored, coordinated, and steered the program implementation until the source of funds (the attached TA) was closed on 30 June 2014. The PMUs were adequately staffed with full time additional coordinators, deputy coordinators, and other staff, and provided effective support such as work planning, progress report preparation, monitoring, evaluation, and technical support. Instead of generating counterpart funds in a special account, the government implemented the reforms through adequate funds allocated in the yearly national budgets. The loan agreement was signed and made effective on time.
G. Performance of the Asian Development Bank
41. ADB’s performance was satisfactory. The program was processed quickly, with the concept cleared on 17 April 2007 and Board approval on 30 October 2007. The loan agreement was signed on 1 November 2007 and became effective on 26 November 2007, reflecting close coordination between ADB and the government. ADB conducted 11 loan review missions and three consultation missions to monitor the program progress and address implementation issues. ADB also submitted progress reports on second and third tranches to the ADB Board of Directors and processed the timely disbursement of withdrawal applications. However, during the program design stage, ADB could have benefited from an in-depth study of Bangladesh’s overall governance scenario with a specific focus on prevention, enforcement, and sanctions mechanisms. ADB also actively and closely coordinated with the development partners, two executing agencies, and 15 implementing agencies to continue policy dialogues and expedite implementation of reforms.
H. Overall Assessment
42. Overall, the program is rated successful with relevant, effective, less than efficient, and likely sustainable ratings (table 1). The program is aligned with the strategies of the government and ADB and its design included innovative features. The program has achieved most of the intended outcomes and complied with most of the policy conditions. However, the program completion was delayed by 78 months. The government is committed for sustaining reforms.
Table 1: Overall Ratings Criteria Rating Relevance Relevant Effectiveness Effective Efficiency Less than efficient Sustainability Likely sustainable Overall Assessment Successful Development impact Satisfactory Performance of Borrower and executing agency Satisfactory Performance of ADB Satisfactory Source: Asian Development Bank.
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IV. ISSUES, LESSONS AND RECOMMENDATIONS
A. Issues and Lessons
43. Reform programs should have a limited number of specific policy conditions and executing and implementing agencies. With 47 policy actions, two executing agencies, and 15 implementing agencies, the Good Governance Program faced enormous complexities and difficulties in implementation.
44. Strong political commitment is a key to governance reforms as governance issues are political in nature. The program achieved landmark critical reforms—including separation of judiciary from the executive, implementation of the NIS and UNCAC, empowerment of ACC, asset declaration by judges and public officials, and establishment of information commission— because of strong political commitment of all the governments that implemented the program.
45. The program’s unique feature of consulting with development partners during inception, design, and implementation was helpful. Strong support from the development partners, including DANIDA, DFID, GIZ, UNDP, USAID, and World Bank, enhanced the quality of policy dialogues, resulting in favorable actions for reforms.
B. Recommendations
1. Program specific
46. Future monitoring. The government should pursue actions to implement the three unfulfilled policy actions of the Good Governance Program. Establishment of an independent and competent prosecution (attorney) service, adopting qualification criteria for high court judges, and creating an office of the ombudsperson will help further improve good governance in Bangladesh.
47. Further action or follow-up. Given the success of the critical and fundamental reforms under the program, ADB should consider further reform programs, particularly for reducing the cost of doing business, revenue reform, and further digitalization of service delivery systems.
48. Timing of the program performance evaluation report. The program performance evaluation report should be prepared in 2021 to assess the program’s impact and sustainability and derive lessons for further ADB assistance in governance reforms in Bangladesh.
2. General
49. Governance reform actions requiring parliamentary approval should be avoided, because agreements for reforms with the executive branch may be uncertain because of the requirement for ratification of the reforms by the independent parliaments.
50. Though some interim governments may demonstrate very strong commitment for reforms, critical governance reform programs should ideally be taken up with regular governments to avoid risks involving continuity and sustainability.
51. While preparing country partnership strategies, ADB should agree on clear short (five year) and medium-term (10 year) reform programs with the government. Based on annual progresses achieved, ADB should update the reform plans in consultation with the government every year while preparing the three-year rolling pipeline of the country operations business plan.
16 Appendix 1
DESIGN AND MONITORING FRAMEWORK
Performance Source of Data/ Design Summary Progress Achieved Targets/Indicators Reporting Mechanisms Impact Economic Measures of satisfaction Achieved. Websites and reports of growth and regarding public access to All surveys conducted, and citizen agencies as mentioned enhanced public services increases yearly. report cards prepared indicate in the report. access to effective improvement of access to services. public services. For details, please see para. 27, 36 and 37.
Contribution to economic Achieved. The Government’s growth by sectors most The transport sector contributed $55 Seventh Five Year Plan, vulnerable to corruption million in 2006, $82 million in 2011 and Budget Statements. increases yearly. and $137 million in 2019 to Bangladesh’s GDP.1 Access to electricity increased from 45% in 2008 to 97% in 2020. Per capita power consumption increased from 220 kWh in 2011 to 512 in 2020.2 Improved power supply boosted productivity. The widened transport network, particularly rural roads, and better farm to market connectivity enabled farmers to raise income and get better price of their produces. Government’s development budget allocation for key economic sectors including transport, energy, health, and education increased exponentially during 2007-2020.3 Public perception of good Achieved. Websites and reports of governance in relevant All surveys conducted in recent international agencies as sectors of operations years indicate improved perception mentioned. improves in all surveys. of good governance in relevant sectors. Please see paras. 10, 27, 31, 32, 36 and 37 for progress in governance, including corruption. Bangladesh’s score and ranking improved in various international indexes including Transparency International’s CPI 2019, World Justice Project Rule of Law Index 2020, World Bank’s Doing Business Report 2020, World Economic Forum’s Global Competitiveness Index 2019, and Heritage Foundation’s Index of Economic Freedom 2020. Improved Transparency Achieved. TI Website. International (TI) ranking on Before the launch of the program, corruption (from current CPI from 2001 to 2005, the country (http://cpi.transparenc score of 2.0 to 2.5 by 2011). secured the lowest position in the y.org) CPI with a score of 0.4 out of 10 or 4 out of 1004 in 2001. By the targeted
1 Tradingeconomics.com/bangladesh. Bangladesh GDP from transport (website accessed on 1 October 2020). 2 Bangladesh Power Development Board. November 2020. Progress Information of Power Sector. 3 Budget in Brief (Archive). Ministry of Finance. Bangladesh (Website accessed on 23 August 2020). 4 Previous TI CPI scoring scale of 0-10 has been changed to 0-100; current score of 28 would be 2.8 in previous scale.
Appendix 1 17
Performance Source of Data/ Design Summary Progress Achieved Targets/Indicators Reporting Mechanisms deadline, i.e. in 2011, Bangladesh’s score in CPI was 2.7 (out of 10) or 27 (out of 100), which is above the target score of 2.5 (out of 10) or 25 (out of 100) and Bangladesh was ranked 13th in the list of 182 countries. Bangladesh scored 26 and ranked 146th among 198 countries in the TI’s CPI of 2019. Outcome Demonstrated government Achieved. Government of Improved commitment to The government’s budget allocated Bangladesh Budget governance and implementation of the NIS for the Supreme Court increased Documents. lower incidence of and UNCAC provisions from Tk270 million ($3.18 million) in corruption in the through increased budgetary FY2008 to Tk2.23 billion ($26.24 public sector in allocations. million) in FY2021. Budgetary Bangladesh. allocation for the ACC rose from Tk150 million ($1.80 million) in FY2008 to Tk1.5 billion ($17.65 million) in FY 2021. Cabinet Division and office Achieved. Website of the cabinet of the registrar (Supreme Cabinet Division has established a Division, and Court) better able to manage “Coordination and Reform Wing” led Government/Supreme good governance projects by a Secretary to manage, monitor, Court memos. throughout the public sector. institutionalize, and sustain, governance reforms. Office of the Registrar of Supreme Court also demonstrated strong leadership in the implementation of governance program, separation of the judiciary, and implement progressive reforms. NIS is adopted by Achieved. Government Reports/ departments, resulting in The NIS has been rolled out to all Websites including that better management of the government offices, which are of the Cabinet Division. grievance processes and developing and implementing short, use of resources, as verified medium, and long-term frameworks by auditor general’s report. of NIS. The grievance redress system has also been implemented in all public offices. The Auditor General’s report on NIS is yet to be available as the office is independent to select a subject of audit, but the government websites provide ample evidence on adoption of NIS by all departments and improvement of grievance redress processes. For details, please see paras. 9,12 and 32. Anticorruption Commission Achieved. ACC Website Act of 2004 amended to give The ACC Act was amended in 2008. (www.acc.org.bd)/ACC Anticorruption Commission ACC enjoys full independence in Act. clearer powers and greater investigation and prosecution independence. matters. In legal terms, ACC is more independent than many of its counterparts in the region.
‘UNCAC Civil Society Coalition http://www.uncaccoalition Report of 2011’ confirms that .org/resources/cosp/civil- Bangladesh’s legal regime largely society-review- bangladesh-2011.pdf.
18 Appendix 1
Performance Source of Data/ Design Summary Progress Achieved Targets/Indicators Reporting Mechanisms complies with the standards and principles of the UNCAC.5
Yearly increase in corruption Achieved. ACC Website cases investigated and According to ACC, approval of (www.acc.org.bd). prosecuted by Anticorruption charge sheets of cases was 484 in Commission. 2014, 614 in 2015, 535 in 2016, 382 in 2017 and 236 in 2018. The conviction rate in cases filed by ACC increased from 33% in 2011 to 46% in 2014, 37% in 2015, 54% in 2016, 68% in 2017, and 63% in 2018. After opening a hotline in 2017, ACC received 1,718,736 telephonic complaints in 2018.
All judicial sector Achieved. BJSC website: appointments and personnel BJSC6 solely manages judicial http://www.bjsc.gov.bd/ matters unbundled from the personnel appointments. For details, PSC. please see para. 11.
Yearly reduction in time Achieved. ACC Website taken to resolve corruption Higher conviction rate, increase in (www.acc.org.bd)/ACC cases. number of cases and improved Annual Reports. capacity to handle higher number of cases as mentioned in paras. 9,10 and 35 would indicate reduction in time taken to resolve corruption cases.
Code of conduct adhered to, Achieved. Bangladesh Supreme and monitored, at the Well-established code of conduct for Court Website: Supreme Court and in both district and Supreme Court http://www.supremecourt district courts. judges has been implemented. The .gov.bd/web/ Supreme Court is responsible for monitoring any violation of the code of conduct by the judges and taking appropriate actions for violations, if any.
All departments have fully Achieved. Various government operational accountability Accountability mechanisms and websites, including that mechanisms or units. audit requirements are in place. of the Cabinet Division. Citizen charters introduced in all agencies enhanced the accountability mechanisms.
A functional Partially achieved. ADB Board of Directors Ombudsperson’s office The government implemented approved waiver of this handles maladministration alternative measures including APA, policy condition in and petty corruption cases. GRS, and various Commissions; September 2018: waived by the BOD in September https://www.adb.org/sites 2018. /default/files/project- documents/37017/37017 -013-prtr-en.pdf
5 UNCAC Coalition. 2011. UN Convention Against Corruption Civil Society Review: Bangladesh. http://www.uncaccoalition.org/resources/cosp/civil-society-review-bangladesh-2011.pdf. 6 Judicial Service Commission is officially named as Bangladesh Judicial Service Commission (BJSC).
Appendix 1 19
Performance Source of Data/ Design Summary Progress Achieved Targets/Indicators Reporting Mechanisms The Government has implemented alternative measures including GRS, annual performance agreement system, public hearing in offices, citizen charter, and other independent commissions. For details, please see para. 13, 15, and 30. Outputs Approved NIS with detailed Achieved. Cabinet Division 1. Vision, action plan (including targets NIS contains detailed action plan Website: Strategy, and for UNCAC implementation). including target for UNCAC https://cabinet.gov.bd/ Procedures, implementation. including NIS, Gazetted amended Achieved. UNCAC, amended Anticorruption Commission ACC Act was amended in 2008, and ACC Website Anticorruption Act in line with UNCAC, and gazetted. All relevant rules of (www.acc.org.bd). Commission Act, gazetted rules of procedures procedures including investigation and strengthened for Anticorruption and prosecution rules are in place. Anticorruption Commission Act. Commission. Performance indicators on Achieved. Government Reports and vulnerabilities to corruption At least five sectors including Letters. in departmental work are education, health, power, port, and approved. railway have adopted performance indicators on corruption vulnerabilities.
NIAC established and holds Achieved. Cabinet Division Website: regular meetings. NIAC, headed by the PM, was https://cabinet.gov.bd/ established in November 2012. The NIAC executive committee is headed by the Finance Minister, which meets frequently. For details, please see para. 9.
NIS implementation reports Achieved. Cabinet Division Website are published regularly. Cabinet Division publishes NIS (www.cabinet.gov.bd). assessment and progress reports on its website regularly.
Anticorruption Commission Achieved. ACC Annual Reports (ACC) performance (as Program review indicated progress (www.acc.org.bd). measured by indicators such as ACC has enhanced its as case disposal time) capabilities to prosecute and shows yearly increase. prepare charge sheets. According to ACC, approval of charge sheets of cases was 484 in 2014, 614 in 2015, 535 in 2016, 382 in 2017 and 236 in 2018. The conviction rate in cases filed by ACC increased from 33% in 2011 to 46% in 2014, 37% in 2015, 54% in 2016, 68% in 2017, and 63% in 2018. After the opening of a hotline in 2017, ACC received 1,718,736 telephonic complaints in 2018. Effective decentralized Achieved. ACC Organogram / system of operations in ACC established eight divisional and (www.acc.org.bd) anticorruption. 36 integrated district offices to decentralize its operations for
20 Appendix 1
Performance Source of Data/ Design Summary Progress Achieved Targets/Indicators Reporting Mechanisms widening outreach effectively while using resources efficiently. Yearly increase in the Achieved. ACC Annual Reports number of complaints Complaints received by ACC (www.acc.org.bd) handled by the ACC. increased significantly with 12,500 complaints in 2014; 12,990 in 2016; and 17,953 in 2017. After the opening of a hotline in 2018, ACC received 1,718,736 complaints. The ACC conducted 27 public hearings with 87% disposal of complaints in 2018 against only 5 in 2015. Realistic performance Achieved. Annual Reports of ACC management schemes (at ACC and BJSC have established and BJSC. ACC, JSC). realistic performance management schemes. 2. Enforcement Gazetted amendments to Achieved. Ministry of Law Report/ and Sanction Code of Criminal Procedure Code of Criminal Procedure was Website: Mechanisms, to make Judiciary amended and gazetted when https://legislativediv.gov.bd/ including independent. judiciary was separated from the strengthened executive branch in 2007. judiciary, and improved Implementable staffing and Achieved. HR structures; websites prosecution human resource The Supreme Court, ACC and BJSC of the Supreme Court, services. development plans for JSC, have implemented staffing and HR ACC and BJSC. judiciary, and prosecution structures as well as development service. plans.
Performance indicators for Achieved. Supreme Court Website. judiciary are revised and Performance indicators and code of (supremecourt.gov.bd) implemented. conduct for both the higher and lower judiciary have been revised and implemented. Published annual reports Achieved. Annual Reports of indicating performance GGP supported the Supreme Court Supreme Court. (such as disposal of to start publishing annual reports. corruption cases). Annual reports of the SC and ACC, published each year, indicate improved performance. Please see para. 11 for further details.
Practical and realistic Achieved. Supreme Court Website. monitoring and reporting The Supreme Court has (supremecourt.gov.bd) protocols at the Supreme implemented strong monitoring and Court. reporting protocol. The Registrar’s office has been elevated to ‘Office of Registrar General’ with additional responsibility for monitoring, reporting and other functions. Submitted declarations of Achieved. Government, and asset statements by those in All those in the judiciary regularly Supreme Court memos the Judiciary. submit declaration of asset and Reports. statements. Out of 927 Judicial Officers, 903 submitted asset statements by May 2008, soon after the separation of the Judiciary. The remaining of 24 were either abroad, had tendered resignation or being proceeded against departmentally.
Appendix 1 21
Performance Source of Data/ Design Summary Progress Achieved Targets/Indicators Reporting Mechanisms Improvements in judicial Achieved. Budget Documents/ facilities, and sufficient In addition to providing the physical Government reports. resources for operations. infrastructures, the government is also providing appropriate human resources and other logistics to sustain the reforms and strengthen the institutions. The government’s budgetary allocation for the Supreme Court and ACC have likewise increased (para. 35). JSC fills judicial vacancies in Achieved. BJSC Reports/Website. a timely manner. BJSC filled up judicial vacancies in a timely manner. During 2008-2020, the BJSC recruited 1,522 lower court judges to strengthen the Judiciary. Please see para. 11. A separate prosecution Not achieved. ADB Board of Directors service is established with approved waiver of this adequate budget. policy condition in September 2018: https://www.adb.org/sites /default/files/project- documents/37017/37017- 013-prtr-en.pdf 3. Prevention Strategic plan for CPA Achieved. CPA report, and website: Mechanisms, reforms. Complied under Tranche 2. http://www.cpa.gov.bd/ including focused anticorruption VCAs in selected agencies. Achieved. Reports/Government interventions, At least five sectors including Letters. accountability education, health, power, port, and mechanisms in line railway have implemented VCA. ministries, and Corruption risk mitigation Achieved. Cabinet Division Website: grievance redress strategies in place in at least Under NIS, all ministries have https://cabinet.gov.bd/ mechanisms. half of the government prepared corruption risk mitigation agencies. strategies.
Gazetted right to information, Achieved. Government Gazettes. and whistleblower protection RTI law enacted in 2008 and Whistle legislation. blower law enacted in 2011. Both are gazetted. Sector plans to deal with Achieved. Reports and Letters from vulnerabilities to corruption Key sectors including power, roads, sector agencies. are in place and budgeted. railways, education, health, and shipping have conducted VCAs to identify specific risks in financial management, procurement, and corruption and implemented specific action plans to reduce the identified risks. The relevant ministries approved budgets to implement the risk mitigation plans. Please see para. 12. Complaint-handling Achieved. Cabinet Division Website: mechanisms established at Mechanisms established in the https://cabinet.gov.bd/ all levels of government. central line ministries and in the districts. Please see para. 12, 13, 31, and 32.
Transparent and merit-based Achieved. Government Policies/ examination and quota Reports.
22 Appendix 1
Performance Source of Data/ Design Summary Progress Achieved Targets/Indicators Reporting Mechanisms system in the Bangladesh A constitutional body, public service Civil Service. commission, recruits civil service members independently. The government in 2018 abolished all quota in class - I and class - II levels of recruitment to further promote quality and competitiveness (para 13).
Office of the Ombudsperson Partly achieved (waived by the ADB Board of Directors adequately resourced. BOD in September 2018). approved waiver of this The Government has implemented policy condition in alternative measures including GRS, September 2018: annual performance agreement https://www.adb.org/sites system, public hearing in offices, /default/files/project- citizen charter, and other documents/37017/37017 independent commissions. For -013-prtr-en.pdf details, please see para 13 and 15. ACC = Anticorruption Commission, BOD = Board of Directors, CPA = Chattogram Port Authority, CPI = Corruption Perceptions Index, CrPc = Code of Criminal Procedure, GDP = Gross Domestic Products, GGP = Good Governance Program, JSC = Judicial Service Commission, NIAC = National Integrity Advisory Committee, NIS = National Integrity Strategy, PMS = Performance Management System, PSC = Public Service Commission, RTI = Right to Information, TA = technical assistance, UNCAC = United Nations Convention Against Corruption, VCA = Vulnerability to Corruption Assessment. Source: Asian Development Bank.
Appendix 2 23
POLICY MATRIX
Output First Tranche Second Tranche Third Tranche (upon loan effectiveness) (within 12 months of first tranche) (within 24 months of second tranche) (1) Vision, Strategy, and Procedures (i) National integrity Cabinet Division to approve a detailed Cabinet to approve and publish the NIS, including Cabinet Division to publish outcomes of strategy (NIS) consultation plan to seek feedback on the a detailed time-bound action plan, with resource an independent review of NIS design of the NIS from all stakeholders across allocation, for both central and local level implementation at all levels of the country (Approved consultation plan on Government, to implement the NIS (Approved NIS Government (Evaluation report by NIS–Cabinet Division) and action plan–Cabinet) independent source–Cabinet Division) (ii) United Nations Ministry of Foreign Affairs to constitute inter- Ministry of Law or Parliament Secretariat1 to Cabinet Division to publish results of Convention Against ministerial committee with terms of reference gazette amended ACC Act, aligned to the UN independent expert survey and national Corruption (TOR) to prepare action plan for the Convention Against Corruption (Gazette perception survey on progress in (i) (UNCAC), implementation of UNCAC (Memorandum notification–Ministry of Law) anticorruption work, and (ii) UNCAC Anticorruption and TOR of Committee–Ministry of Foreign implementation (Evaluation report– Commission (ACC) Affairs) Ministry of Law to finalize gaps analysis of Cabinet Division) Act and rules of Bangladesh legal framework vis-à-vis UNCAC procedures; Government to reconstitute the ACC (Report on gaps analysis–Ministry of Law) Cabinet Division to publish results of strengthened ACC (Gazetted notification–Cabinet Division) assessment of community outreach and Cabinet Division, through Ministry of Law to corruption prevention activities, including Cabinet Division to approve the ACC gazette all revised ACC rules of procedure partnership modalities of anticorruption proposed decentralized set-up as reflected in incorporating the amendments to the 2004 ACC agencies with civil society (Evaluation the revised organogram (Copy of approved Act (Gazette notification–Ministry of Law) report–Cabinet Division) revised organogram–Cabinet Division) Ministry of Finance to increase allocation for Ministry of Finance to allocate sufficient Ministry of Law to gazette amendments to development budget of ACC with sufficient funds to funds to allow ACC to implement its ACC Act 2004, Anticorruption Act and Rules allow it to implement its decentralized set-up and approved performance management 1957, and the amendments to the Criminal its community outreach program (Budget scheme (Budget statement – Finance Law Amendment Act 1958 (Gazette statement–Finance Division) Division) notification–Ministry of Law)
(2) Enforcement and Sanction Mechanisms (i) Strengthened Ministry of Law to gazette April 2007 Judicial Service Commission to complete entry Ministry of Finance to allocate sufficient Judiciary amendments to the rules of the Code of examinations for 100 assistant judges (Progress budget to meet the approved capital and Criminal Procedure 1898 which are related to report–JSC) operational expenditures for the full the separation of the judiciary (Gazette operation of the Judicial Service notification–Ministry of Law)
1 The Ministry of Law, Justice and Parliamentary Affairs can issue a gazette notification when Parliament is not in place; otherwise, it is the Parliament Secretariat that does so.
24 Appendix 2
Output First Tranche Second Tranche Third Tranche (upon loan effectiveness) (within 12 months of first tranche) (within 24 months of second tranche) All judges of subordinate courts to submit a Commission (Budget statement–Ministry Supreme Court to issue directive to all judges declaration of assets and wealth statement to the of Finance) of subordinate courts on the strict Office of the Registrar (Report on submission– implementation of the rules on submission of Office of the Registrar) Judicial Service Commission to complete declaration of assets and wealth statements to entry examinations for all approved the Office of the Registrar (Directive– Ministry of Law or Parliament Secretariat to positions for assistant judges (Progress Supreme Court) gazette legislation prescribing specific report–JSC) qualifications for the recruitment of Supreme Court Ministry of Law to notify the approved judges (Gazette notification–Ministry of Law) organogram of the judicial service (Notification–Ministry of Law) Ministry of Finance to allocate sufficient budget to meet the increases in special allowances that may Judicial Service Commission (JSC) to be recommended by the Judicial Service Pay complete first departmental examination to Commission and approved by Government confirm those assistant judges on probation (Budget statement–Ministry of Finance) (Published examination results–JSC) Ministry of Finance to allocate sufficient budget to meet the approved development expenditures for district courts to implement the policy of separation of the judiciary from the executive (Budget statement–Ministry of Finance)
Supreme Court to publish 2007 State of the Judiciary report, including results of annual random inspection and monitoring activities of district courts (State of the Judiciary report– Supreme Court)
(ii) Improved Ministry of Law or Parliament Secretariat to prosecution service gazette legislation for the creation of an independent and competent prosecution (or attorney) service (Gazette notification–Ministry of Law) (3) Prevention Mechanisms (i) Focused Chattogram Port Authority (CPA) to complete Shipping Ministry to approve a strategic plan for Power Division, Ministry of Anticorruption a Vulnerability to Corruption Assessment action on reforms at the CPA (Action plan – Communications, Ministry of Education, Interventions (VCA) for the Chattogram Port (VCA– Ministry of Shipping) Ministry of Health, and Ministry of Chattogram Port Authority (CPA) Shipping to approve corruption risk mitigation strategies in line with the NIS (Corruption risk mitigation strategies–
Appendix 2 25
Output First Tranche Second Tranche Third Tranche (upon loan effectiveness) (within 12 months of first tranche) (within 24 months of second tranche) CPA to establish a committee with TOR to Relevant Ministries) develop a strategic plan for reforms at CPA (Memorandum and TOR of Committee– Ministry of Shipping, through MLJPA, to CPA) gazette, as required, (1) any amendments to existing rules and regulations, or (2) new rules and regulations, to reflect the approved changes in management resulting from a computerized terminal management system at Chattogram Port (Gazette notification–Ministry of Shipping) (ii) Accountability Government to reconstitute the Public Service At least 50% of line ministries to establish easily All public-sector training institutes to Mechanisms in Line Commission (Gazette notification - Ministry accessible grievance handling mechanisms incorporate, and use, integrity, and Ministries of Establishment) (Departmental reports–line Ministries) anticorruption training modules in their curricula (Revised curricula– Ministry of Ministry of Establishment to issue a circular to Public Service Commission (PSC) to approve Establishment) all public servants on the strict revised exams for civil servants to make their implementation of the rules on the submission entry and promotion more transparent and merit- Cabinet Division to collate and publish of declaration of assets and wealth based (Approved revised exam–PSC) departmental information on grievances statements to their respective line agencies and public complaints (Published (Circular–Cabinet Division) information–Cabinet Division)
Ministry of Finance to issue guidelines on, Ministry of Establishment to review the and provide resources for, strengthening existing quota system for entry into the internal audit in MTBF ministries (Guidelines civil service (Review of quota system– and budget allocation–Ministry of Finance) Ministry of Establishment)
All line ministries to establish easily accessible grievance handling mechanisms (Departmental reports–line Ministries)
Line ministries that provide utilities and basic services to institute and publicize citizen report cards as a way of addressing grievances at the local level (Publicly announced Ministry directive–Relevant ministries) (iii) Grievance Cabinet Division to issue directive to all line Government to publicly announce its decision to Ministry of Law or Parliament Secretariat Redress ministries to designate an officer as focal point establish a national Office of the Ombudsperson to gazette the Whistleblower Protection
26 Appendix 2
Output First Tranche Second Tranche Third Tranche (upon loan effectiveness) (within 12 months of first tranche) (within 24 months of second tranche) Mechanisms for initiating grievance handling mechanism in (Public announcement–Ministry of Law) Act (Gazetted notification–Ministry of all government offices, for both internal and Law) external purposes (Directive–Cabinet Ministry of Law or Parliament Secretariat to Division) gazette the Right to Information Act (Gazette Government to establish a well-resourced notification–Ministry of Law) Office of the Ombudsperson in line with Art. 77 of the Bangladesh Constitution and with provisions for regional outreach and access (Cabinet decision–Cabinet) ACC = Anticorruption Commission, CPA = Chattogram Port Authority, CTMS = computerized terminal management systems, JSC = Judicial Service Commission, MTBF = medium-term budgetary framework, NIS = National Integrity Strategy, TOR = terms of reference, UNCAC = United Nations Convention Against Corruption, VCA = vulnerability to corruption assessment. Sources: Government of Bangladesh, and Asian Development Bank.
Policy Conditions not related to Tranche Release
Tranche Policy Condition Product/Responsible Agency Second Power Division, Ministry of Communications, Ministry of Education, and Ministry of VCAs–relevant ministries. Health to complete VCAs in their respective sectors.
Third Government to complete a study on restructuring of CPA operations. Study report–Ministry of Shipping. CPA = Chattogram Port Authority, VCA = vulnerability to corruption assessment. Sources: Government of Bangladesh, and Asian Development Bank.
Appendix 3 27
STATUS OF FIRST TRANCHE POLICY CONDITIONS
First Tranche Status
Cabinet Division to approve a detailed consultation plan to Remains complied with. seek feedback on the design of the NIS from all stakeholders across the country (Approved consultation plan on NIS– Cabinet Division approved the NIS consultation Cabinet Division). plan vide its memo no. CD/RRC/GGP/52/2007/394; dated 02 September 2007.
Ministry of Foreign Affairs to constitute inter-ministerial Remains complied with. committee with TOR to prepare action plan for the implementation of UNCAC (Memorandum and TOR of Ministry of foreign Affairs constituted this inter- Committee–Ministry of Foreign Affairs). ministerial committee vide its Memo no. MFA/B&F/ADB/101/598; dated 29 August 2007.
Government to reconstitute the ACC (Gazetted notification– Remains complied with. Cabinet Division). The ACC was reconstituted with new chairman and two commissioners vide Cabinet Division's Notification No. MPB/Founis/4-1/2007/48; dated 22 February 2007.
Cabinet Division to approve the ACC proposed decentralized Remains complied with. set-up as reflected in the revised organogram (Copy of approved revised organogram–Cabinet Division). The Government amended the ACC Act in November 2007 to declare the ACC as an independent and self-governing body (Gazzette No. 34 (Mupro); 22 November 2007) but these revisions were not ratified under the new elected government. The ACC rules were also revised twice in 2007 to ensure that the ACC has substantial autonomy and independence in its operations. Although amendments of the ACC Act were not ratified, the rules have remained operational. The original ACC act of 2004 though has given all authority to the ACC to investigate and prosecute any corruption charges of public officials and representatives with full freedom and without requiring approval from the government. The Government has also given the ACC one-line budgets (in the act) thereby allowing for sufficient autonomy to the ACC in setting its priorities and make appropriate plans. Ministry of Law to gazette amendments to ACC Act 2004, Remains complied with. Anticorruption Act and Rules 1957, and the amendments to the Criminal Law Amendment Act 1958 (Gazette notification– The Government amended the ACC Act in Ministry of Law). November 2007 to declare the ACC as an independent and self-governing body (Gazzette No. 34 (Mupro); 22 November 2007) but these revisions were not ratified under the new elected government. The ACC rules were also revised twice in 2007 to ensure that the ACC has substantial autonomy and independence in its operations. Although amendments of the ACC Act were not ratified, the rules have remained operational. The original ACC act of 2004 though has given all authority to the ACC to investigate and prosecute any corruption
28 Appendix 3
First Tranche Status
charges of public officials and representatives with full freedom and without requiring approval from the government. The Government has also given the ACC one-line budgets (in the act) thereby allowing for sufficient autonomy to the ACC in setting its priorities and make appropriate plans. Ministry of Law to gazette April 2007 amendments to the rules Remains complied with. of the Code of Criminal Procedure 1898 which are related to the separation of the judiciary (Gazette notification–Ministry of Amendments of Code of Criminal Procedures of Law). 1898 made and the separation of the judiciary from the executive was completed and made effective from 1 November 2007 (Notification No. 56 (Pub); dated 11 February 2007 and Notification No. 169(Pub); dated 10 April 2007). Supreme Court to issue directive to all judges of subordinate Remains complied with. courts on the strict implementation of the rules on submission of declaration of assets and wealth statements to the Office of Supreme Court issued directive vide Circular No. the Registrar (Directive–Supreme Court). 05; dated 29 August 2007. Ministry of Law to notify the approved organogram of the Remains complied with. judicial service (Notification–Ministry of Law). Ministry of Law notified the new judicial service organogram vide Government Order No. Bichar-04/5C-02/2007/1126; dated 13 September 2007. Judicial Service Commission (JSC) to complete first Remains complied with. departmental examination to confirm those assistant judges on probation (Published examination results–JSC). BJSC published first departmental examination results vide the Notification No. BJSC/Poni/Bip- 01-02/200695(05); Dated 28 August 2007 to confirm assistant judges on probation. Chattogram Port Authority (CPA) to complete a Vulnerability to Remains complied with. Corruption Assessment (VCA) for the Chattogram Port (VCA– Chattogram Port Authority (CPA). CPA completed a VCA and the consultant submitted the report on 01 September 2007. CPA to establish a committee with TOR to develop a strategic Remains complied with. plan for reforms at CPA (Memorandum and TOR of Committee–CPA). CPA established this committee with ToR vide Chairman/CPA's Office Order no. 16/2007; dated 05 September 2007. Government to reconstitute the Public Service Commission Remains complied with. (Gazette notification - Ministry of Establishment). The Public Service Commission (PSC) was reconstituted vide Notification No. SM/(UNI-3)- 39/2004-343; dated 07 May 2007). Ministry of Establishment to issue a circular to all public Remains complied with. servants on the strict implementation of the rules on the submission of declaration of assets and wealth statements to Ministry of Establishment issued the circular vide their respective line agencies (Circular–Cabinet Division). memo No. SM/(Pr-1)-94/2007-1120); dated 28 August 2007. Ministry of Finance to issue guidelines on, and provide Remains complied with. resources for, strengthening internal audit in MTBF ministries (Guidelines and budget allocation–Ministry of Finance). Ministry of Finance issued required circular vide memo no. AM/AB/Ba-01/Policy (02)/2006/512; dated 22 May 2007 and allocated budget for MTBF ministries to perform this internal audit. Cabinet Division to issue directive to all line ministries to Remains complied with. designate an officer as focal point for initiating grievance
Appendix 3 29
First Tranche Status
handling mechanism in all government offices, for both internal Cabinet Division issued this directive vide and external purposes (Directive–Cabinet Division). Circular No. CD/RRC/GGP/52/2007/396 dated 05 September 2007 and a grievance redress system has been implemented in the line ministries. Source: Asian Development Bank.
30 Appendix 4
STATUS OF SECOND TRANCHE POLICY CONDITIONS
Second Tranche Status
Cabinet to approve and publish the NIS, including a detailed Remains complied with. time-bound action plan, with resource allocation, for both central and local level Government, to implement the NIS During second tranche release, it was partially (Approved NIS and action plan–Cabinet). complied. In 2012, NIS has been approved and published, and now implemented across the ministries/ agencies. Ministry of Law or Parliament Secretariat to gazette amended Remains complied with. ACC Act aligned to the UN Convention Against Corruption (Gazette notification–Ministry of Law). ACC act of 2004 is very much aligned with the UNCAC and there is hardly any scope for giving it further authority. Amendments of ACC Act that were made through ordinance No. XXXIV of 2007, published by the Notification No. 34(Mu Pra); dated 22 November 2007, stated ACC as a self –governing body. However, ACC by its original act has full independence in anti-corruption matters. The amended Act was also duly gazetted. Ministry of Law to finalize gaps analysis of Bangladesh legal Remains complied with. framework vis-à-vis UNCAC (Report on gaps analysis–Ministry of Law). Ministry of Law published UNCAC's compliance by Bangladesh in January 2008 through their publication " UNCAC: A Bangladesh Compliance and Gap Analysis". Cabinet Division, through Ministry of Law to gazette all revised Remains complied with. ACC rules of procedure incorporating the amendments to the 2004 ACC Act (Gazette notification–Ministry of Law). MLJPA notification no. 7 (Pri: Pub); dated 18 April 2007 and ACC SRO No. 265-Law/2007; dated 26 November 2007. Through these changes in law and rule the Commission was given more power and effectiveness and its work process was made up to date. Ministry of Finance to increase allocation for development Remains complied with. budget of ACC with sufficient funds to allow it to implement its decentralized set-up and its community outreach program Fully complied- Vide MoF's letter no. (Budget statement–Finance Division). MoF/FD/Budget-04/2107-2108(09/07)/179; dated 20th May 2008. Judicial Service Commission to complete entry examinations Remains complied with. for 100 assistant judges (Progress report–JSC). In fact, the government appointed 390 Assistant Judges vide notification no. Bichar-01/5A/2008-176; dated 08 May 2008. All judges of subordinate courts to submit a declaration of Remains complied with. assets and wealth statement to the Office of the Registrar (Report on submission–Office of the Registrar). Out of 927 Judicial Officers, 903 submitted statements by May 2008. The remaining of 24 were either abroad, had tendered resignation or being proceeded against departmentally. Ministry of Law or Parliament Secretariat to gazette legislation Compliance not maintained with. prescribing specific qualifications for the recruitment of Supreme Court judges (Gazette notification–Ministry of Law). Complied during second tranche release. The relevant ordinance (Ordinance No. 6 of 2008) was published in Bangladesh Gazette through notification no. 6 (Mu pra); dated 16 March 2008. However, it was not placed before the parliament in 2009 and the tranche condition went out of compliance. Ministry of Finance to allocate sufficient budget to meet the Remains complied with. increases in special allowances that may be recommended by
Appendix 4 31
Second Tranche Status the Judicial Service Pay Commission and approved by Ministry of Finance earmarked fund in the Government (Budget statement–Ministry of Finance). Unexpected Expenditure Management Head for compliance with the recommendations of the Judicial Service Pay Commission (Reference No. MoF/FD/Budget-04/2107-2108 (09/07)/179; dated 20th May 2008). In the FY 2007-08 budget for Judicial Magistrate Courts and Districts and below was increased by 34 per cent. Ministry of Finance to allocate sufficient budget to meet the Remains complied with. approved development expenditures for district courts to implement the policy of separation of the judiciary from the Planning Commission's letter no. 912; dated 10 June executive (Budget statement–Ministry of Finance). 2008. Subsequently, ECNEC approved the project and allocated BDT 1,500 million. Supreme Court to publish 2007 State of the Judiciary report, Remains complied with. including results of annual random inspection and monitoring activities of district courts (State of the Judiciary report– Annual Report on the Judiciary 2007 was published Supreme Court). by the Supreme Court of Bangladesh in May 2008. Ministry of Law or Parliament Secretariat to gazette legislation Compliance not maintained with. for the creation of an independent and competent prosecution (or attorney) service (Gazette notification–Ministry of Law). Complied during second tranche release. Gazette relating to Government Attorney Service Ordinance 2008 (Ordinance 19 of 2008) was promulgated vide Notification no. 19 (Mu Pra) dated 18 May 2008 but the ordinance was not placed before the parliament in 2009 and the tranche condition went out of compliance. Shipping Ministry to approve a strategic plan for action on Remains complied with. reforms at the CPA (Action plan – Ministry of Shipping). Ministry of Shipping approved the Plan for Strategic Reforms at the CPA (2008-2011) and intimated the decision vide letter no. MoS/Planning-01/CPA- 06/2005 (Part-01)/106; dated 10 June 2008. Earlier, the Board of the CPA had approved the Plan in its special meeting held on 05 June 2008. At least 50% of line ministries to establish easily accessible Remains complied with. grievance handling mechanisms (Departmental reports–line Ministries). Intimated through Cabinet Division's letter no. CD/RRC/GG/GHFP/54/ 2007/539; dated 21 May 2008. Focal points were put in place and required number of Ministries submitted report to the Cabinet Division on the disposal of the complaints. Public Service Commission to approve revised exams for civil Remains complied with. servants to make their entry and promotion more transparent and merit-based (Approved revised exam–PSC). Ministry of Establishment through SRO no. 16- law/2008; dated 17 January 2008 issued revised examination rules, where by qualifying mark has been increased to 50 per cent in place of 45 per cent, minimum qualification for sitting at examination has been made master’s degree or 4 years bachelor’s degree; besides, an examinee may have received his transcript on application. Government to publicly announce its decision to establish a Remains complied with. national Office of the Ombudsperson (Public announcement– Ministry of Law). The government’s intention was communicated through MLJPA letter No. 460/08 LA; dated 10 June 2008. Ministry of Law or Parliament Secretariat to gazette the Right Remains complied with. to Information Act (Gazette notification–Ministry of Law).
32 Appendix 4
Second Tranche Status
Right to Information Ordinance 2008 was notified through the Official Gazette on 20 October 2008. Subsequently, the National Parliament approved the Right to Information Act on 29 March 2009 which was assented by the President on 5 April 2009.
Policy Condition not related to Second Tranche Release
Policy Condition Product/Responsible Agency Power Division, Ministry of Communications, Ministry of Complied with. Education, and Ministry of Health to complete VCAs in their respective sectors Source: Asian Development Bank.
Appendix 5 33
STATUS OF THIRD TRANCHE POLICY CONDITIONS
Third Tranche Status Cabinet Division shall have published the outcomes of an Complied with. independent review of national integrity strategy implementation at all levels of government.
Cabinet Division to publish results of independent expert Complied with. survey and national perception survey on progress in (i) anticorruption work, and (ii) United Nations Convention Against Corruption implementation.
Cabinet Division shall have published the results of an Complied with. assessment of community outreach and corruption prevention activities, including partnership modalities of anticorruption agencies with civil society.
Ministry of Finance shall have allocated sufficient budget to Complied with. allow the Anti-Corruption Commission to implement its approved performance management scheme.
Ministry of Finance shall have allocated sufficient budget to Complied with. meet the approved capital and operational expenditures for the full operation of the Judicial Service Commission.
Bangladesh Judicial Service Commission shall have Complied with. completed entry examinations for all approved positions for assistant judges.
Power Division, Ministry of Communications, Ministry of Complied with. Education, Ministry of Health, and Ministry of Shipping shall have approved corruption risk mitigation strategies in line with the National Integrity Strategy.
Ministry of Shipping, through the Ministry of Law, Justice and Complied with. Parliamentary Affairs, shall have gazetted, as required, (i) any amendments to existing rules and regulations, or (ii) new rules and regulations, to reflect the approved changes in management resulting from a computerized terminal management system at Chattogram port.
All public sector training institutes shall have incorporated, and Complied with. used, integrity and anticorruption training modules in their curricula.
Cabinet Division shall have collated and published Complied with. departmental information on grievances and public complaints.
Ministry of Establishment (now Ministry of Public Complied with. Administration) shall have finalized a review of the existing quota system for entry into the civil service.
All line ministries shall have established easily accessible Complied with. grievance handling mechanisms. Line ministries that provide utilities and basic services shall Complied with. have instituted and publicized citizen report cards as a way of addressing grievances at the local level.
Ministry of Law, Justice and Parliamentary Affairs or Complied with. Parliament Secretariat shall have gazetted the Whistleblower Protection Act.
34 Appendix 5
Third Tranche Status
The borrower shall have established a well-resourced Office of Not complied with. the Ombudsperson, in line with Article 77 of the Bangladesh Constitution, and with provisions for regional outreach and Article 77 of the Constitution of Bangladesh access. provides for establishing a national office of the ombudsperson. Reflecting the constitutional provision, a law was enacted in 1980 highlighting the conditions of appointment and functions of the office. Though the office is yet to be established, the government confirmed that it has established a number of related governance institutions and created a few governance tools, which effectively complement the work of the ombudsperson, and hence the policy condition is partially complied with (paras. 13, 15 and 30).
Policy Condition not Related to Third Tranche Release
Policy Condition Compliance Status Government to complete a study on restructuring of Chattogram Port Complied with. Authority (CPA) operations.
Source: Asian Development Bank.
Appendix 6 35
CHRONOLOGY OF MAIN EVENTS
Date Event A. General
2007 18 February Reconnaissance mission 17 April Concept paper approved by ADB 17-30 April Fact-finding mission fielded 13 July Management review meeting/staff review meeting held 15-23 July Appraisal mission held 15 August Second management review meeting/staff review meeting held 6-7 September Conducted loan negotiations with Government of Bangladesh 30 October Board Approval 1 November Loan Agreement 26 November Loan declared effective 20-29 November Inception mission held 2008 27 February to 3 March Loan review 1 28 April to 2 May Loan review 2 11-18 May Loan review 3 7-16 September Loan review 4 12 November Progress report of second tranche release 2009 24-31 March Loan review 5 2011 31 January to 2 February Loan review 6 4 October 2011 Extension of loan closing date (from 1 April 2012 to 31 December 2012) 10-21 July Loan review 7 2012 7 March Consultation 1 7 December Extension of loan closing date (from 31 December 2012 to 30 June 2013) 2013 24 June Extension of loan closing date (from 30 June 2013 to 30 June 2014) 2014 1 July Extension of loan closing date (from 30 June 2014 to 30 September 2014) 7-8 July Consultation 2 26-28 August Consultation 3 11 December Extension of loan closing date (from 30 September 2014 to 30 June 2015) 2015 9-10 June Loan review 8 11 August Extension of loan closing date (from 30 June 2015 to 30 June 2016) 2016 22-25 May Loan review 9 21 July Extension of loan closing date (from 30 June 2016 to 30 June 2018) 2017 19-24 December Loan review 10 2018 22-24 April Loan review 11 28 June Extension of loan closing date (from 30 June 2018 to 30 September 2018) 26 September Progress report of third tranche release
B. Disbursement
2007 29 November PCSS 0001: First tranche 29 November PCSS 0002: First tranche 29 November PCSS 0003: First tranche 29 November PCSS 0004: First tranche 29 November PCSS 0005: First tranche 2008 28 November PCSS 0006: Second tranche 28 November PCSS 0007: Second tranche 28 November PCSS 0008: Second tranche 28 November PCSS 0009: Second tranche 28 November PCSS 0010: Second tranche 2018 9 October PCSS 0011: Third tranche Source: Asian Development Bank.
36 Appendix 7
STATUS OF COMPLIANCE WITH LOAN COVENANTS
Covenant Reference in Loan Status of Agreement Compliance 1 In the carrying out of the Program and operation of the Program Article IV, Complied with. facilities, the Borrower shall perform, or cause to be performed, all Section 4.01 obligations set forth in Schedule 5 to this Loan Agreement.
2 (a) The Borrower shall maintain, or cause to be maintained, records Article IV, Complied with. and documents adequate to identify the Eligible Items financed out of Section 4.02 (a) the proceeds of the Loan and to record the progress of the Program.
3 (b) The Borrower shall enable ADB's representatives to inspect any Article IV, Complied with. relevant records and documents referred to in paragraph (a) of this Section 4.02 (b) Section.
4 (a) As part of the reports and information referred to in Section 6.05 of Article IV, Largely complied the Loan Regulations, the Borrower shall furnish, or cause to be Section 4.03 (a) with. Counterpart furnished, to ADB all such reports and information as ADB shall fund was not reasonably request concerning (i) the Counterpart Funds and the use created. thereof; and (ii) the implementation of the Program, including the accomplishment of the targets and carrying out of the actions set out in the Policy Letter.
5 (b) Without limiting the generality of the foregoing or Section 6.05 of Article IV, Complied with. the Loan Regulations, the Borrower shall furnish, or cause to be Section 4.03 (b) furnished, to ADB quarterly reports on the carrying out of the Program and on the accomplishment of the targets and carrying out of the actions set out in the Policy Letter.
A. Program Management and Coordination 6 There shall be two Program Executing Agencies (EAs). The Supreme Schedule 5, Complied with. Court shall be the EA for Program interventions related to Para. 1 strengthening the judiciary. CD shall be the EA for all other Program interventions. Each EA shall bear the overall responsibility for the timely implementation of the part of the Program for which it is the EA.
7 Both EAs shall act under the guidance of the Program Steering Schedule 5, Complied with. Committee (PSC). The PSC shall be chaired by the Cabinet Para. 2 Secretary. Its members shall comprise representatives, not below the rank of Joint Secretary, from the Prime Minister’s Office, Office of the Registrar, ACC, JSC, MLJPA, Economic Relations Division of MOF, Finance Division of MOF, Ministry of Home Affairs, Ministry of Foreign Affairs, Ministry of Shipping, Ministry of Establishment, Ministry of Information, Implementation Monitoring and Evaluation Division, and Planning Commission. Other members such as from the Public Service Commission or from line Ministries shall be co-opted, as necessary. The Program Coordinator of CD shall be the member- secretary of the PSC. The PSC shall meet whenever necessary, but in any case, not less than once every quarter, to (a) provide policy support; (b) oversee Program implementation and progress; and (c) facilitate cooperation and coordination among all relevant agencies.
8 Implementing Agencies with deliverables under the Program include Schedule 5, Complied with. the Anticorruption Commission, MLJPA, Ministry of Foreign Affairs, Para. 3 Ministry of Shipping, Ministry of Establishment, Public Services Commission, JSC, Economic Relations Division of MOF, and other sectoral agencies, in each case as set out in Attachments 2, 3 and 4 to Schedule 3 to this Loan Agreement. The Borrower shall ensure that each such Implementing Agency shall take full responsibility for implementation of those tranche release conditions within its
Appendix 7 37
Covenant Reference in Loan Status of Agreement Compliance mandate.
9 There shall be two Program Management Units (PMUs), one at the Schedule 5, Complied with. CD, and one at the Office of the Registrar of the Supreme Court. At Para. 4 the CD, the PMU, which consists of the existing Governance Unit in the CD, shall be headed by a Program Coordinator at the level of an Additional Secretary or Joint Secretary. The Borrower shall assign two Deputy Program Coordinators who shall be at the level of Deputy Secretary or Senior Assistant Secretary, and one administrative officer. A full-time Program Manager, who shall be a national consultant, shall be based at the PMU to assist the Program Coordinator in the day-to-day implementation of the Program.
10 The PMU at the Supreme Court shall be headed by a Program Schedule 5, Complied with. Coordinator who shall be the Registrar of the Supreme Court. The Para. 5 Office of the Registrar shall appoint one Additional Program Coordinator, who shall be at the level of Additional or Deputy Registrar, and one officer to ensure necessary support services to the PMU who shall be designated as Assistant Program Coordinator. A full-time Program Manager, who shall be a national consultant, shall be based at the PMU to assist the Program Coordinator in the day-to- day implementation of the Program.
11 Both PMUs shall be responsible for (a) work planning, monitoring and Schedule 5, Complied with. evaluation; and (b) providing technical support to the relevant Para. 6 agencies, as necessary. They shall coordinate the daily activities of the various implementing agencies that shall designate a focal point to ensure close coordination on a regular basis. The PMUs shall provide secretariat services for all Program outputs, and support activities in their respective Program areas.
B. Policy Dialogue 12 The Borrower shall keep ADB informed of, and the Borrower and ADB Schedule 5, Complied with. shall from time to time exchange views on, the progress made in Para. 7 carrying out the Program and in the formulation and implementation of new related policies.
13 The Borrower shall promptly discuss with ADB problems and Schedule 5, Complied with. constraints encountered during the implementation of the Program Para. 8 and appropriate measures to overcome or mitigate such problems and constraints.
14 The Borrower shall keep ADB informed of policy discussions with Schedule 5, Complied with. other multilateral and bilateral agencies that have implications for the Para. 9 implementation of the Program and shall provide ADB with an opportunity to comment on any resulting policy proposals. The Borrower shall take ADB’s views into consideration before finalizing and implementing any such proposals.
C. Continuity and Coordination of Reforms 15 The Borrower shall: (a) ensure that the objectives achieved, policies Schedule 5, Largely complied adopted, and actions taken prior to the date of this Loan Agreement, Para. 10 with. as set forth in the Policy Letter, shall continue to be in full force and effect for the duration of the Program period and subsequently; (b) Out of 46 policy carry out the policies and actions in accordance with the schedule of actions policy reforms contained in the Policy Letter and Policy Matrix, ensure implemented, sustainability of the reforms throughout and beyond the Program two second period; and (c) carry out all of its obligations as stipulated under this tranche policy Schedule and the Loan Agreement, in a timely manner. actions (independent and
38 Appendix 7
Covenant Reference in Loan Status of Agreement Compliance competent attorney service, and high court judges’ qualification criteria) which were implemented in 2008, were not sustained. 16 Notwithstanding Attachment 3 to Schedule 3 to this Loan Agreement, Schedule 5, Complied with. the Borrower ensures that all necessary measures shall be taken to Para. 11 ensure that the following policy action included in the Policy Matrix shall be implemented prior to the release of the Second Tranche: Power Division, Ministry of Communications, Ministry of Education, and Ministry of Health shall have completed VCAs in their respective sectors.
17 Notwithstanding Attachment 4 to Schedule 3 to this Loan Agreement, Schedule 5, Complied with. the Borrower ensures that all necessary measures shall be taken to Para. 12 ensure that the following policy action included in the policy matrix shall be implemented prior to the release of the Third Tranche: the Borrower shall have completed a study on the restructuring of CPA operations.
D. Counterpart Funds 18 Immediately after the Effective Date, the Borrower shall establish, in a Schedule 5, Not complied manner satisfactory to ADB, a Special Account at the Bangladesh Para. 13 with. No special Bank for the specific purpose of depositing and utilizing the account was Counterpart Funds. Whenever the Borrower withdraws proceeds of opened. the Loan from the Loan Account, the Borrower shall promptly deposit into the Special Account the Taka amounts equivalent to the amount of the proceeds so withdrawn.
19 Except as ADB may otherwise agree, the Counterpart Funds shall be Schedule 5, Not complied utilized not later than 30 September 2011, to meet the expenditures to Para. 14 with, as no be incurred pursuant to the provisions of paragraph 15 below. special account was opened for depositing counterpart funds. 20 The Borrower shall ensure that sufficient Counterpart Funds are made Schedule 5, Not complied available to meet the indicative costs, on a proportional basis, Para. 15 with. associated with the implementation of the Program as set out in the Table of Supplementary Appendix G to the Report and In lieu of Recommendation of the President to ADB’s Board of Directors for the generating Program, in particular regarding: (a) the implementation of the NIS and ‘counterpart UNCAC at all levels; (b) the operation of ACC at the central, regional, funds’ in a and district level; (c) the separation of the Judiciary from the special account, Executive, including the costs for the capital expenditures flowing from the government such separation; (d) the implementation of the approved implemented the recommendations of the Judicial Service Pay Commission; (e) reforms through establishment and operation of independent prosecution services; (f) funds allocated in reforms at CPA; (g) implementation of grievance handling the yearly mechanisms, including citizen report cards and Office of the national budgets. Ombudsperson; (h) operation of JSC and Judicial Service Pay Commission; (i) any performance incentive schemes and human resources plans developed under the Program; (j) independent surveys on program-related interventions. Any Counterpart Funds not
Appendix 7 39
Covenant Reference in Loan Status of Agreement Compliance required for the Program shall be used for good governance interventions.
21 The Borrower shall ensure to establish a budget tracking system to Schedule 5, Not complied track the use of the Counterpart Funds on a quarterly basis. The EA Para. 16 with. shall submit the reports generated by this to the ADB on a quarterly basis. Since there were no counterpart funds, there were neither a ‘budget tracking system’ nor reports on the use of the funds. 22 Separate accounts and records in respect of the Special Account shall Schedule 5, Not complied be maintained in accordance with consistently maintained sound Para. 17 with. accounting principles and shall be audited annually by independent auditors acceptable to ADB in accordance with sound auditing No special standards. Certified copies of such audited accounts and records shall account was be furnished opened. to ADB promptly after their preparation but in any event not later than six (6) months after the close of the fiscal year to which they relate, or not later than six (6) months after the date of the closing of the Loan Account, as the case may be.
E. Program Implementation 23 a. National Integrity Strategy and Governance issues Schedule 5, Complied with. As soon as the draft NIS is finalized, the Cabinet Division shall widely Para. 18 NIS was publicize it together with its consultation plan. consulted with stakeholders and is mandatorily placed on all government websites. 24 Within two (2) months of the approval of the NIS, the Cabinet Division Schedule 5, Complied with. shall establish a broad-based and independent high level National Para. 19 Integrity Advisory Committee (NIAC) that shall comprise A broad-based representatives from Government, civil society, academia, and think NIAC, headed by tanks, with a mandate to guide NIS implementation. the Prime Minister, was established in November 2012. 25 Within six (6) months of the approval of the NIS, and every six (6) Schedule 5, Complied with. months thereafter, the Cabinet Division shall submit reports, validated Para. 20 by the NIAC, on the progress of NIS implementation at all levels of Government.
26 The Borrower shall ensure that in developing automation networks Schedule 5, Complied with. between any of the implementing agencies and other complementary Para. 21 agencies, all necessary measures shall be taken to guarantee full respect for privacy of information.
27 b. Judiciary Schedule 5, Complied with. The Borrower shall not intervene, directly or indirectly, in the conduct Para. 22 of policies or actions of the courts, particularly regarding their The Supreme organizational structure, recruitment of personnel, or actions regarding Court, and under their management, operational, and financial activities. The Borrower its guidance, shall refrain from any action, directly or indirectly, that inhibits, curbs, BJSC, handle or otherwise limits the independence of the judiciary. matters
40 Appendix 7
Covenant Reference in Loan Status of Agreement Compliance pertaining to judiciary. 28 c. Financing and staffing issues Schedule 5, Complied with. The Borrower shall ensure that all Executing, and Implementing Para. 23 Agencies are adequately staffed and provided with the necessary financial, technical, and other resources, including equipment, to perform their functions under the Program.
29 The Borrower shall ensure to only allocate funds for performance Schedule 5, Complied with. management schemes, provided such scheme is part of a larger Para. 24 Human Resource Policy that includes (a) key job descriptions with performance targets; and (b) provisions for career development.
30 The Borrower shall ensure that for recruitment of any new staff, Schedule 5, Complied with. including but not limited to judges, investigators, and prosecutors, all Para. 25 Government necessary and appropriate measures shall be taken to attract female recruitments candidates. Equally qualified women shall be given preference over were on an equal equally qualified men. The Borrower shall ensure that for all recruited opportunity staff under the Program, there shall be equal remuneration for work of policy, and 10% equal value. extra quota for women was in force in all public- sector jobs until 2018, when all quota for class I and class II jobs were abolished.
31 d. Legislation and action plans Schedule 5, Complied with. Para. 26 All draft The Borrower shall ensure that all legislation passed as part of the legislations were Program, as well as all public awareness campaigns and all action posted on plans developed, shall be widely published in a way that ensures websites for accessibility of information by all segments of the population, including consultation. All the illiterate. types of media discussed and reported on the proposed reforms. 32 The Borrower shall ensure that all action plans to be prepared as part Schedule 5, Complied with. of the Program shall be fully implemented before the end of the Para. 27 Program and that all legislation gazetted shall have become fully effective before the end of the Program.
33 e. Environment and resettlement Schedule 5, Not applicable. Para. 28 The Borrower shall ensure that for any physical infrastructure built as a result of the Program, the responsible EA and Implementing Agency will comply with (i) the Borrower’s laws and regulations governing land acquisition; (ii) the Borrower’s laws and regulations on environment; (iii) ADB’s Involuntary Resettlement Policy (1995); and (iv) ADB’s Environment Policy (2002). Prior to any construction, the relevant permits and licenses shall be obtained. In the event of land acquisition and resettlement, the Borrower shall inform ADB thereof and prepare a resettlement plan in accordance with ADB’s Involuntary Resettlement Policy. The review of such resettlement plan by ADB shall be a condition for award of civil works contracts.
Appendix 7 41
Covenant Reference in Loan Status of Agreement Compliance F. Program Review 34 The Borrower, ADB, and relevant Development Partners shall jointly Schedule 5, Complied with. review the Program and its implementation three (3) months prior to Para. 29 the scheduled release of the Second and Third Tranche, to evaluate All reforms were the progress of the reform measures and their impact on good discussed among governance. the borrower, ADB and development partners supporting the program.
35 In addition to the reviews mentioned in paragraph 30, three (3) Schedule 5, Complied with. independent reviews shall be conducted in year three (3) of Program Para. 30 implementation. One review shall assess the extent of implementation Three of the NIS at all levels of government. The second review shall consist independent of an expert survey and national perception survey on the reviews were performance of UNCAC and anticorruption work. The third review shall conducted as assess the extent of community outreach and corruption prevention stipulated. activities, including partnership modalities of anticorruption agencies Please see para. with civil society. All reviews shall be undertaken by an independent 26 of the PCR. source.
G. Program Performance Management System (PPMS) 36 Within three (3) months of the Effective Date, each PMU shall have Schedule 5, Complied with. established a PPMS, including a database on the status of policy Para. 31 measures and Program indicators. The Borrower shall ensure that the PPMS shall be maintained throughout the entire Program period. Source: Asian Development Bank.
42 Appendix 8
STATUS OF PROGRAM ASSURANCES
Sl. Program Assurance Status No. 1. Policies adopted, and actions taken prior to the date of the Loan Complied with. Agreement, as described in the Development Policy Letter, will continue in effect for the duration of the program period and subsequently.
2. The proceeds of the loan will be made available to meet the Complied with. financial requirements associated with the implementation of the program; throughout program implementation, adequate allocation The EAs and IAs are being provided of the required counterpart funds is made, approved, and released with adequate funds for in a timely manner to ensure proper implementation of the program. implementation of the reforms.
3. The government will keep ADB informed of policy discussions with Complied with. other multilateral and bilateral aid agencies that may have ADB and the government have been implications for the implementation of the program and will provide in close liaison on all policy matters. ADB with an opportunity to comment on any resulting policy ADB along with other development proposals. The government will take into account ADB’s views partners holds policy dialogues on before finalizing and implementing any such proposals. governance matters on regular basis.
4. The government will ensure that all implementing agencies are Complied with. adequately staffed and provided with the necessary financial, technical, and other resources, including equipment, to perform their functions under the program.
5. Within two months of the approval of the NIS, the government will Complied with. establish a broad-based and independent high-level National NIS was approved on 18 October Integrity Advisory Committee with a mandate to guide NIS 2012 and NIAC was formed in implementation. November 2012.
6. Within 6 months of the approval of the NIS, and every 6 months Complied with. thereafter, the Cabinet Division will submit reports on the progress NIS was approved on 18 October of NIS implementation at all levels. 2012. Reports are submitted regularly. 7. The government will ensure that in developing any automation Complied with. networks, all measures will be taken to guarantee full respect of Privacy being maintained. privacy of information.
8. The government will not intervene, directly or indirectly, in the Complied with; being maintained. conduct of policies or actions of the courts, particularly regarding Judiciary was separated in their organizational structure, recruitment of personnel, or actions November 2007. regarding their management, operational, and financial activities. The government will refrain from taking any action, directly or indirectly, that inhibits, curbs, or otherwise limits the independence of the judiciary. 9. The government will establish a budget tracking system to track the Complied with. use of the counterpart funds generated by the loan on a quarterly The MOF prepares regular internal basis. reports. 10. Funds for performance management schemes will only be allocated Complied with. if such a scheme is part of a wider human resources development plan that includes: (a) key job descriptions with performance targets; and (b) provisions for career development.
11. For the recruitment of new staff as a result of the Program, including Complied with. Judges have been judges, investigators and prosecutors, all measures will be taken to recruited according to an equal attract female candidates. Equally qualified women will be given opportunity policy, and 10% extra preference. quota for women in all public-sector jobs until 2018, when all quota for
Appendix 8 43
Sl. Program Assurance Status No. class I and class II jobs were abolished.
12. The government will ensure that for any physical infrastructure built Not applicable. as a result of the program, the relevant EAs and IAs will comply with: (a) Bangladesh’s laws and regulations governing land acquisition; (b) Bangladesh’s laws and regulations regarding environment; (c) ADB’s Policy on Involuntary Resettlement (1995); and (d) ADB’s Environment Policy (2002). Prior to any construction, the relevant permits and licenses will be obtained.
13. The government will ensure that all action plans to be prepared as Complied with. part of the program will be fully implemented before the end of the program, and that all legislation that is gazetted will have become fully effective.
14. The government will ensure that all legislation passed as part of the Complied with. All laws and reports program as well as all public awareness campaigns and action are publicly available; All are placed plans will be widely published in a way that ensures access by all on the government’s websites. segments of the population. ACC = Anticorruption Commission, ADB = Asian Development Bank, BRM = Bangladesh Resident Mission, CPA = Chattogram Port Authority, EA = executing agency, GGP = Good Governance Program, IA = implementing agency, MOF = Ministry of Finance, NIS = National Integrity Strategy. Source: Asian Development Bank.
44 Appendix 9
Completion Report
Project Number: 37017-062 Technical Assistance Number: 4983 December 2020
Bangladesh: Supporting the Good Governance Program
This document is being disclosed to the public in accordance with ADB’s Access to Information Policy.
Appendix 9 45
In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
46 Appendix 9
Technical Assistance Completion Report
TA Number, Country, and Name: TA 4983-BAN: Supporting the Amount Approved: $ 2,500,000 Good Governance Program Revised Amount: Not Applicable Executing Agency: Cabinet Source of Funding: Amount Undisbursed: Amount Used: Division Technical Assistance $1,463,751 $1,036,249 Special Fund (Other sources) TA Approval Date: TA Signing Date: TA Completion Date 30 October 2007 15-Jan-2008 Original Date: Latest Revised Date: 30-Sept-2011 30-Jun-2014
Financial Closing Number of Date: Extensions: 1 30-Nov-2014 TA Type: Capacity Development TA TA Arrangement: Not applicable
Description The TA aimed to enhance the capacity of the executing and implementing agencies of Loan 2362-BAN: Good Governance Program to effectively implement core and sector governance measures to fight corruption and improve governance in the public sector. The TA enabled the executing and implementing agencies of the Good Governance Program to implement the policy reforms and actions that are specified in the program policy matrix.
Expected Impact, Outcome, and Outputs The expected impact of the TA was improved governance and lower incidence of corruption in the public sector in Bangladesh. The outcome was capacity of government to effectively implement the Good Governance Program to attain the policy reforms and actions specified in the policy matrix supported. The outputs were: (i) legal, judicial, and institutional development work; (ii) automation; (iii) program management; (iv) staff capacity enhancement; (v) organizational performance; and (vi) strengthening aid governance management in central government. The TA had no separate DMF from the program.
Implementation Arrangements The Cabinet Division was the executing agency of the TA. The TA supported the capacity development of the Cabinet Division, and 15 implementing agencies: (i) Public Service Commission, (ii) Bangladesh Judicial Service Commission, (iii) Anti-Corruption Commission, (iv) Law and Justice Division, (v) Legislative and Parliamentary Affairs Division of the Ministry of Law, Justice and Parliamentary Affairs, (vi) Ministry of Foreign Affairs, (vii) Finance Division (viii) Economic Relations Division of the Ministry of Finance, (ix) Ministry of Public Administration (former Ministry of Establishment), (x) Ministry of Education, (xi) Power Division of the Ministry of Power, Energy and Mineral Resources, (xii) Ministry of Health and Family Welfare, (xiii) Chattogram Port Authority, (xiv) Ministry of Shipping, and, (xv) Bangladesh Railway. The TA was implemented between 5 January 2008 and 30 June 2014. The original completion date of 30 September 2011 was extended (33 months) to allow time to comply with the three policy actions that remained unfulfilled under the program.
The Government of Denmark cofinanced the TA with $1.0 million while the Government of Bangladesh was to contribute $0.5 million in kind in the form of counterpart staff, office accommodation, and logistical support. The TA utilized $1,036,249 or 41.45% of its total budget. The cost details are in Attachment 1.
The TA recruited one international individual consultant for 2 person months, one international consulting firm for 6 person months, and 16 national individual consultants for 137 person months (attachment 2) against the provision of 11 person-months of international consulting services and 227 person-months of national consulting services. The consultants were recruited using least cost selection, fixed budget, and quality-based selection processes according to ADB's Guidelines on the Use of Consultants (2007 and 2013, as amended from time to time). The consultants demonstrated professionalism and satisfactory performance in their work and submitted work plan or inception reports, progress reports, final reports, and various study and technical reports. The TA also helped procure ICT equipment including computers, printers, uninterrupted power supply systems, scanners, fax machines, photocopiers, multimedia systems, and other utensils for a total cost of $254,515. A detailed list of the items procured under the TA is in Attachment 3.
Appendix 9 47
The EA (Cabinet Division) and all the implementing agencies effectively supported the TA implementation by assigning dedicated counterpart staff, coordinating with the consultants, and actively participating in the TA activities. ADB effectively steered the implementation.
Conduct of Activities The activities of the TA were conducted under the following outputs:
Output 1. Legal, judicial, and institutional development work supported. The TA supported the preparation of five vulnerability to corruption assessments, and a number of knowledge products, study reports, and analytical reports to help understand and decide on the legal, judicial, and institutional aspects of the reforms under the Good Governance Program. It also supported in preparing strategic policy documents including the National Integrity Strategy, grievance redress system, and civil administration reforms. A detailed list of the knowledge products, studies, and reports produced under the TA is in Attachment 4.
Output 2. Automation and computerization of records management supported. By procuring a large number of computers, and other IT equipment and digital accessories for a total cost of $254,515, the TA helped develop IT capacity and automation of the executing agencies and implementing agencies of the Good Governance Program, as well as the key public service and governance institutions. The automation and computerization of documents and records management helped raise efficiency of the agencies. Attachment 3 provides the details of the IT items procured under the TA.
Output 3. Program management supported. The TA provided program management support by recruiting one international individual consultant, one international consulting firm, and 16 national individual consultants (Attachment 2) for the program management units (PMU) under the program’s executing agencies ―Cabinet Division, and Supreme Court. The consultants assisted the PMUs with the preparation of progress reports, final reports, and various studies and technical reports.
Output 4. Capacity building activities conducted. A total of 37 law makers, policy makers, and senior officials including the Chief Justice, Law Minister, Cabinet Secretary, parliament members and other senior bureaucrats participated in nine study visits in 10 developed and developing countries to learn about reforms of the judiciary, public service, anticorruption institutions as well as legal frameworks. The study visits provided opportunities to learn about how governance reforms and strengthening of the accountability institutions can help improve service delivery. Attachment 5 provides the details of the study visits. The TA helped conduct various training, seminars, and workshops about a diverse range of policies, reforms, e-governance topics, anticorruption issues, and legal matters, with around 500 members of the parliament, senior government officials, and Supreme Court judges participating in the events. The training and workshops helped the capacity development of government officers in understanding various policies, governance tools, and computer applications. The details about the training, seminars, and workshops are in Attachment 6.
Output 5. Organizational performance improved. The TA helped raise organizational performance in implementing the Good Governance Program. It helped the program management units at the Cabinet Division and the Supreme Court maintain separate performance management systems to monitor program performance through databases on the status of policy measures and program indicators, based on the policy matrix and the DMF. The TA supported the program executing and implementing agencies in preparing work plans, extending technical support, and coordinating activities among agencies. The TA supported in conducting three independent reviews to assess the extent of implementation of the National Integrity Strategy, performance of UNCAC and anticorruption work, and extent of community outreach and corruption prevention activities, including partnership modalities of anticorruption agencies with civil society. It also supported the Supreme Court of Bangladesh to start publishing its institutional annual report from 2008. To ensure that the program is implemented effectively, the TA helped the Government organize policy discussions with multilateral and bilateral aid agencies to enhance quality of program implementation. It also supported ACC’s country-wide anti-corruption campaigns and outreach programs, raised public awareness on good governance, and promoted engagements with the civil society on anticorruption.
Output 6. Aid governance management in central government strengthened. The TA supported Economic Relations Division (ERD) of the Finance Ministry to raise capacity in aid governance management by providing with digital equipment including computer and other accessories (Attachment 2). Three senior ERD officials visited Australia to learn about aid governance issues while 29 officers attended a training on ‘e-governance and ICT’ at Bangladesh Computer Council, Dhaka. Details of the study visit, and training are in Attachments 5 ―6.
48 Appendix 9
Technical Assistance Assessment Ratings Criterion Assessment Rating Relevance The TA is relevant as it assisted critical governance reforms and strengthened the Relevant capacity of key governance institutions. Its design and formulation were fully aligned with the country strategy and program for Bangladesh, 2006–2010 and the country partnership strategy, 2011–2015, as well as the government’s National Strategy for Accelerated Poverty Reduction, 2004 and the Sixth Five–Year Plan FY2011–FY2015, which envisaged critical governance reforms and capacity development of key governance institutions.
The TA design was robust with adequate provision for appropriate consulting inputs for supporting the implementation of the ambitious program with 47 critical policy conditions for governance reforms.
The TA appropriately adopted a consultative process involving civil society and other development partners. Senior officials from the government were also engaged including the Cabinet Secretary, the senior-most bureaucrat in the civil administration, who was chair of the program steering committee.
The TA completed all planned activities with 41.45% utilization of funds. The reduced expenditure resulted from unused consulting inputs based on needs analysis. The high commitment of the Caretaker Government of 2007–2008 was instrumental in accomplishing the reforms at a reduced cost as 31 of the 47 policy actions under the program were completed within 13 months after effectiveness of the program. However, the TA could have been completed much earlier if all the targeted reforms and the number of executing and implementing agencies of the program were fewer. Effectiveness The TA is rated effective as its outcome and outputs were fully achieved. The TA Effective successfully supported the implementation of 44 out of 47 tranche conditions involving critical policy, legal, and institutional reforms in the key areas of anticorruption, justice, and public administration and thus helped the successful completion of the program. The TA helped the executing agency and implementing agencies to prepare study reports, conduct surveys, organize study visits, as well as supported the monitoring and evaluation of program activities. The TA effectively supported the government in reducing corruption and improving the public services for the citizens of Bangladesh. The TA successfully managed the challenge of complexities arising out of engagements with multiple stakeholders by efficiently working with the Cabinet Division which plays a central coordination role within the government according to its business process. Efficiency The TA is rated less than efficient as it was extended for 33 months to allow time Less than for the implementation of the three unmet policy actions under the program. All efficient planned outputs and activities were delivered within a substantially lower cost, utilizing $1,036,249 or 41.45% of the total budget of $2,500,000. The reduced cost resulted mainly from the non-utilization of the consulting inputs based on a need analysis. Overall The TA is rated successful, with relevant, effective, and less than efficient ratings. Successful Assessment The TA was aligned with the strategies of the government and ADB and its design was prudent to support the goals of the attached complex program. The TA achieved its outcome and all the intended outputs though it was delayed by 33 months and completed all activities with 41.45% of the total budget. Sustainability The TA is assessed as likely sustainable based on the high degree of government Likely commitment to support reforms. The government continues to implement critical sustainable governance reforms under its own initiative and provides physical infrastructures, human resources, and other logistics by allocating appropriate resources to sustain the reforms and strengthen the institutions. The annual performance agreement for the civil service, introduction of citizen’s charter, access to information through internet, and enhanced right to information are also contributing to the government’s capacity building on governance.
Appendix 9 49
Lessons Learned and Recommendations Design and/or planning The program and TA implementation could have been completed much earlier than actual had the targeted reforms and number of executing agencies, and implementing agencies been fewer. The TA supported 47 policy actions, two executing agencies, and 15 implementing agencies, under the Good Governance Program which faced enormous coordination complexities and difficulties in implementation. Implementation and/or delivery Closing the program early could have been considered to avoid long implementation delays, though the Good Governance Program took a nuanced approach to allow time for implementing three unmet reforms at the request of the government and the development partners supporting the program. While the TA was implemented successfully, the delays and extension of the TA for 33 months resulted from the delays in complying with three policy actions (permanent prosecution or attorney service, high court judges’ qualification criteria, and establishing an office of ombudsperson). Management of staff and As the knowledge and policy work under the program needed highly skilled consultants experts, the stipulated quality-based selection method, which put emphasis on quality in procurement, was helpful for recruiting skilled consultants. Stakeholder participation Close coordination with the development partners and civil society was critical in enhancing the quality of policy dialogues supported by the TA and sustaining the reforms implemented under the program. The policy dialogues contributed to enhancing clarity on policy issues, helped share international experiences and generated broad-based support for reforms.
Follow-up Actions Despite sustaining high economic growth and significant social development, Bangladesh’s governance system needs further improvement. Given the success of the critical, radical, and fundamental reforms under the Good Governance Program, ADB may consider further programs for reducing cost of doing business, revenue reform, and digitalization of critical service delivery systems in Bangladesh. To ensure successful and timely implementation of governance loan and TA projects, ADB needs to focus on a fewer and specific governance targets for reforms.
Prepared by: Gobinda Bar Senior External Relations Officer, BRM
50 Appendix 9
Attachment 1
Technical Assistance Cost Table A9.1: Technical Assistance Cost by Activity ($’000) Amount Item Original Revised Actual 1. Consultants 1,383.400 000.000 496.001 2. Goods 280.000 000.000 254.514 3. Training, seminars and/or conferences 530.000 000.000 284.529 4. Surveys 000.000 000.000 000.167 5. Miscellaneous TA administration 25.000 000.000 1.038 6. Pilot testing 000.000 000.000 000.000 7. Contingency 281.600 000.000 000.000 Total 2,500.000 000.000 1,036.249 Source: Asian Development Bank estimates.
Table A9.2: Technical Assistance Cost by Financier ($’000) ADB DANIDA Total Cost 1. Original 1,500.000 1,000.000 2,500.000 2. Revised 000.000 000.000 000.000 3. Actual 680.125 356.124 1,036.249 4. Unused 819.875 643.876 1,463.751 DANIDA = Danish International Development Assistance; GOB = Government of Bangladesh Source: Asian Development Bank estimates.
Appendix 9 51
Attachment 2
List of Consultants engaged under the TA 4983-BAN: Supporting GGP
Sl. Name of EA/ Name/ Title of the Output/ Activity/ Period of National or No. IA Consultants Report Engagement International / Individual or Firm
1. Cabinet Mr. Akhter Hossain Khan Team Leader of the 24 PM (From National Division Program Manager PMU at Cabinet 13 Jan 2008 to Individual Division and was 31 Dec 2009). responsible for overall coordination and program and TA implementation in the executive side. 2. Cabinet Mr. Nur Ahmed Assisted Program 46 PM National Division Dy Program Manager Manager in the (From 28 Feb Individual program and TA 2008 to Dec implementation 2012). 3. Cabinet Mr. Mustafa Zuhair Ibn Developed database 6 PM National Division Yahya and software of (From 6 Sept Individual Network and Database Grievance redress 2010 31 May Administrator system at Cabinet 2011) Division 4. Cabinet Mr. Abhijit Asad Translated National 1 PM National Division Khandakar Integrity Strategy in (From 30 Individual Translator Bangla. March to 28 April 2010) 5. Cabinet Nielson Company Conducted Expert 6 PM (From 5 International Division (Bangladesh) Ltd Survey on progress in Dec 2010 to Firm the implementation of 21 March NIS, UNCAC and 2011) ACC’s outreach program. 6. Cabinet Mr. Rafiqul Islam Talukdar Reviewed progress in 1 PM/ 16 May National Division the implementation of 2013 to 18 Individual NIS June 2013 7. Anti-Corruption Mr. Chua Cher Yak Prepared a report and 2 PM (From 10 International Commission Performance Management developed performance Dec 2009 to Individual (ACC) Expert management system 29 Jan 2010) (PMS) for ACC. 8. Ministry of Dr. Shawkat Ali Prepared two (2) 5 PM (From 28 National Public Public Administration Reports on Field Oct 2009 to 10 Individual Administration Reforms Expert Administration Reforms April 2010) and Clustering of Ministries. 9. Ministry of Dr. Salahuddin Prepared two reports 5 PM (28 Oct National Public Aminuzzaman on Promotion Policies 2009 to 09 Individual Administration Civil Service Reforms for Senior Civil Service April 2010) Expert and Career Development 10. Ministry of Mr. Mobarok Hossain Prepared Draft Rules 2 PM (From - National Public Civil Service Rules and on Senior Promotions, May-June Individual Administration Regulations Expert clustering of ministries 2011) and career development.
52 Appendix 9
Sl. Name of EA/ Name/ Title of the Output/ Activity/ Period of National or No. IA Consultants Report Engagement International / Individual or Firm
11. Public Service Mr. Janibul Huq Prepared a Report on 8 PM (From 20 National Commission Public Personnel ‘Reforms in the Oct 2008 to 19 Individual (PSC) Management Expert Competitive Jun 2009) Examination System of Bangladesh’ 12. Public Service Mr. Mustafa Zuahair Ibn Prepared a Report on 1 PM / 2009 National Commission Yahya ‘Automation and IT Individual (PSC) IT consultant Infrastructure Development’ for PSC. 13. Power Division Mr. Khizir Hayat Prepared a Report on 5 Pm (From 19 National of Ministry of Power Sector Specialist ‘Governance Risk Oct 2008 to 18 Individual Power, Energy Assessment and March 2009) and Mineral Mitigation Plan for the Resources Power Sector’. 14. Ministry of Ms. Hosne Ara Prepared a Report on 5 PM (From 19 National Education ‘Governance Risk October 2008 Consultant Assessment and to 18 March Mitigation Plan for the 2009) Education Sector’. 15. Ministry of Mr. Dhiraj Kumar Nath Prepared a Report on 5 PM (From 5 National Health and ‘Governance Risk Oct 2008 to 18 Consultant Family Welfare Assessment and March 2009) Mitigation Plan for the Health Sector’. 16. Bangladesh Mr. Abdul Khaleque Prepared a Report on 5 PM (From National Railway ‘Governance Risk Oct 2008 to Consultant Assessment and May 2009) Mitigation Plan for the Railway Sector’. 17. Supreme Court Mr. Fazlul Karim Team Leader of the 24 PM (From National PMU at Supreme Court 13 Jan 2008 to Consultant and was responsible for 31 Dec 2009). overall coordination and program and TA implementation in the justice sector. 18. Supreme court Mr. Md. Nazrul Islam Drafted first Annual 1 PM/ 19 May National Report (2007) of the 2008 to 17 Consultant Supreme Court. June 2008 Source: Asian Development Bank.
Appendix 9 53
Attachment 3
List of IT Equipment / Workstations Procured under TA 4983-BAN: Supporting GGP
SL. Name of Agency List of Equipment Date of Delivery No. 1 Cabinet Division Desktop Computer: 2 January 2009 Laptop Computer: 3 Laser Printers: 2 UPS: 2 Scanner: 1 Fax machine: 1 Photocopier: 2 Multimedia system: 1 Computer table & chair: 2 2. Ministry of Public Laptop: 2 September 2009 Administration Printer: 1 Scanner: 1 Multimedia system: 1 Digital Photocopier: 1 Fax Machine: 1 Computer accessories: 10 Digital Camera for training purposes: 1
3. Public Service Commission Desktop Computer: 20 January 2009 and Laptop Computer: 2 August 2010 Laser Printers: 3 UPS: 20 Photocopier: 2 Multimedia Projector with screen: 1 set Computer Workstation tables & chairs: 10 sets 4. Anti-Corruption Commission Desktop Computer for ACC’s IT Lab: 18 July 2011 LCD TV for training purposes: 2 DVD Player for training unit: 2 Air Conditioner for ACC’s IT Lab: 2
Furniture for ACC’s Conference Room and IT Lab: Corner table: 2 Middle table: 18 Media person table: 7 Computer table for computer lab: 18 Instruction table for computer lab: 1 Podium for conference room: 1 Chair for computer lab: 18 Chair for conference room: 101 5. Economic Relations Division, Desktop Computer: 4 September 2008 Ministry of Finance Notebook Computer: 1 ADF Scanner: 1 B & W Laser Jet Printer: 2 Multimedia System: 1 Photocopier: 1 Projector Screen: 1
Furniture for ADB Wing Conference Room: Conference Table: 1 Conference Room chairs: 20 IT Workstations: 4 Air cooler for ADB Wing conference room: 1 6. Ministry of Law, Justice and Desktop Computers: 3 2010 Parliamentary Affairs Laptop Computers: 8 Laser Printer: 6 Scanner: 3
54 Appendix 9
SL. Name of Agency List of Equipment Date of Delivery No. Photocopier: 2 Fax Machine: 2 Multimedia Projector: 1 Accessories: 10
Furniture for Workstations: Computer Chairs: 8 Executive Table: 3 Computer Table: 5 Printer Table: 5 7. Supreme Court Desktop Computers: 5 2010 Laptop Computers: 4 Printer: 2 Fax Machine: 1 Digital Duplicating Machine: 1 8. Bangladesh Judicial Service Desktop Computer: 6 2010 Commission (BJSC) Laptop Computer: 4 Laser Printer: 6 UPS: 6 Computer Table: 6 Computer Chair: 6 BJSC examination center: 200 chairs and 100 tables Source: Asian Development Bank.
Appendix 9 55
Attachment 4
List of Reports / Knowledge Products Produced under TA 4983-BAN
Sl. No. Name of Agency Title of the Knowledge Product / Report Date of Completion/ Publication 1. Cabinet Division National Integrity Strategy (NIS) 2009 2. Cabinet Division A Report on Functional Grievance Redresses System January 2011 3. Cabinet Division Reports on Independent Expert Survey and National May 2011 Perception Survey on Anti-Corruption Work, National Integrity Strategy, UNCAC Implementation and Partnership on Anti-Corruption Prevention. 4. Cabinet Division Bangla Translation of National Integrity Strategy April 2010 (NIS) 5. Cabinet Division Assessment Report on Implementation of NIS June 2013 6. Ministry of Public A Study on Promotion, Transfer, Placement and April 2010 Administration Career Development Policy of Senior Civil Servants 7. Ministry of Public A Report on Clustering of Ministries April 2010 Administration 8. Ministry of Public A Report on Field Administration Reforms April 2010 Administration 9 Ministry of Public Draft Rules on Senior Promotions, clustering of May 2011 Administration ministries and career development. 10 Public Service A Report on ‘Reforming the Competitive Examination June 2009 Commission System of the Public Service Commission’ 11 Public Service ‘Automation and IT Infrastructure Development’ 2010 Commission 12 Anti-Corruption Proposal for Establishing a Performance January 2010 Commission Management System (PMS) in Anti-Corruption Commission. 13 Ministry of Education Governance Risk Assessment and Mitigation/ May 2009 Management Plan for the Education Sector 14 Ministry of Health Governance Risk Assessment and Mitigation/ February 2009 Management Plan for the Health Sector 15 Power Division of Governance Risk Assessment and Mitigation/ March 2009 Ministry of Power, Management Plan for the Power Sector Energy and Mineral Resources 16 Bangladesh Railway Governance Risk Assessment and Mitigation/ May 2009 Management Plan for the Railway Sector 17 Supreme Court ‘2007 Annual Report on the Judiciary’ May 2008
Source: Asian Development Bank.
56 Appendix 9
Attachment 5
Study Visits under TA 4983-BAN: Supporting Good Governance Program
SL. Agency Study Visits/ No. of Participants Dates Areas of Study No. Training/ Workshops 1. Cabinet Division Study visit to 4 senior officials 10 Days /19 - Governance Sweden and including Cabinet 28 April 2009 Institutions and Malaysia Secretary. reforms
2. Cabinet Division Study Visit to Hong 3 senior officials of 8 Days / 15-22 Governance Kong, China and Cabinet division and February 2010 Institutions and Republic of Korea Ministry of Public public service Administration. reforms 3. Supreme Court Study visit to 4 senior officials 4 Days/ 26-29 Justice system/ Supreme Courts of including the Chief April 2013 Separation of India and Sri Lanka. Justice Judiciary 4. Ministry of Law, Study visit to 3 senior officials 7 Days / 11- Justice sector Justice and Australia & including the Law 17 April 2010 reforms and Parliamentary Singapore Minister institutions. Affairs 5. Ministry of Law, Study visit Sweden 3 senior officials 9 Days/ 24 Justice sector Justice and & Denmark including Deputy April - 2 May reforms and Parliamentary Minister and 2010 institutions. Affairs Secretary. 6. Ministry of Law, Study Visit to India 5 Members of the 7 Days / 8-14 Legal framework, Justice and and Sri Lanka Parliament (MPs) and April 2012 reforms of justice Parliamentary 4 senior officials and governance Affairs institutions. 7. Bangladesh Study visit to 5 senior officials 10 Days/ 20- Recruitment Judicial Service Malaysia and the including Chairman of 29 July 2010. procedures of Commission Philippines BJSC Judges. (BJSC) 8. Public Service Study visit to 3 senior officials 10 Days / 16- Civil service Commission Australia and including Chairman of 25 June 2008 recruitment Malaysia PSC. procedures and civil service reforms. 9. Economic Study visit to 3 senior officials 2011 Aid Governance Relations Division Australia including Additional (ERD) Secretary. Source: Asian Development Bank.
Appendix 9 57
Attachment 6
Training/Seminars/ Workshops under TA 4983-BAN: Supporting Good Governance Program
SL. No. Agency Title of the Training / No. of Participants Dates Workshops 1 Cabinet Consultation Workshop on NIS 50 MPs, senior government officials, Division and members of civil society. 2 Public Service Workshop on ‘Reforms in the 32 members of public service and civil 11 March Commission Competitive Examination society. 2009 System of Bangladesh’ 3 Power Division ‘Workshop on Governance Risk 82 officials of power sector 12 June 2010 Assessment and Risk Mitigation Plan for Power Sector’ 4 Economic ‘Understanding E-governance 29 officials 2010 Relations and ICT’ at Bangladesh Division Computer Council 5 Ministry of Training on Legislative Drafting 22 officials 13-14 March Law, Justice 2010 and Parliamentary Affairs 6 Ministry of Workshop on ‘Whistle Blowers’ 25 officials 3 March 2010 Law, Justice Protection Act’ and Parliamentary Affairs 7 Supreme Seminar on Launching of 100 Judges and others May 2008 Court Supreme Court Annual Report 8 Bangladesh English Language Training at 8 officials 2009 Judicial British Council Service Commission 9 Ministry of Orientation Training on RTI Act 150 officials of different ministries August – Information at NIMCO (RTI focals) October 2011 10 Anti-Corruption Country-wide Corruption 5,000 December Commission Outreach Prevention Program 2009-June 2011 Source: Asian Development Bank.
58 Appendix 10
OVERVIEW OF REFORMS IN BANGLADESH, 1972–2000
Name of the Status of Sl. Commissions and Year Focus Recommendations Implementation No. Committees 1. Civil Administration December 1971 Organizational set-up Secretariat Restoration ― January 1972 for the Government The provincial secretariat was administration was Committee (CARC) after emergence of transformed into the national reorganized with 20 Bangladesh secretariat with 20 ministries, 3 ministries; other secretariat organizations constitutional bodies and 7 constitutional bodies; like Supreme Court, detailed specification of the High Court, the functions of civil servants at the Public Service Division, District, Sub-division Commission, the levels; providing appropriate Election Commission status and respect to the and the Office of the officers and staff of civil Comptroller and administration as lawful organs Auditor General were of the Government. established. 2. Administrative and March 1972 Service Structure Unified civil service structure Not implemented: Services Reorganization with a continuous grading though the Committee (ASRC) system from top to bottom; recommendations of division of all posts into two the ASRC were very broad categories: Functional substantial and and Area Group Posts; top 3 indispensable but the grades, i.e., I, II and III to be government failed to designated as Senior Policy implement. and Management Posts. 3. Pay Issues The reduction of hitherto New national pay National Pay 1 July 1972 existing 2,200 pay scales for scale with 10 grades Commission (1st NPC - public employees into 10 was introduced. Headed by M A Rashid) grades. 4. Pay and Services 20 February 1976 Services Structure 28 services under 14 cadres The new national Commission (P&SC) and Pay Issues created within the civil service; grades and scales of establishment of senior pay were introduced services pool (SSP), and 52 with 21 scales of pay, pay scales from Tk 28 services under 14 230(lowest)- Tk 4000 (highest). main cadres were created within the civil service and a senior services pool was constituted. 5. Martial Law April 1982 Organization and Reduction of the size of Number of ministries Committee (MLC1- headed rationalization of government, reduction of layers was reduced from 36 by Brigadier Enamul manpower in the of decision making; delegation to 19; number of other Haque) for public sector of administrative and financial offices was reduced examining organizations. powers down the hierarchy. from 243 to 181; organizational set-up of number of Ministries/ constitutional bodies Divisions/Directorates and were reduced from 12 other to 9; number of Organizations. officials and employees mostly working at the lower levels was reduced from 9,440 to 3,222.
Appendix 10 59
Name of the Status of Sl. Commissions and Year Focus Recommendations Implementation No. Committees 6. Committee for April 1982 Reorganization of Upgrading of thanas into The new system of Administrative Reform and district (upazila) and upazilas with Upazila Parishad administration and Re-organization (CARR - field level as the focal point of local local government was headed by administration administration; empowerment introduced in 460 Rear Admiral MA Khan) of the local authority in relation thanas (thanas were to rural service delivery system. lat er renamed as upazilas). 7. Martial Law Committee May 1983 Public enterprise Delegation of more financial Not implemented. (MLC-2) for examining and administrative powers organizational setup of down the hierarchy; timely public statutory release of funds from corporations ministries; rationalization of manpower; preparation of organizational charts, manuals, annual activity reports; merit- based promotion. 8. National Pay May 1984 Pay issues 20 grades pay scale from Tk The New National Commission (2nd NPC) 660(lowest) to Tk Scales of Pay were 7500(highest). introduced with 20 scales of pay.
9. Secretaries Committee on April 1985 Promotion aspects Maintenance of status quo for Not implemented. Administrative 10 cadre services as promotion Development (SCAD) prospect had been satisfactory.
10. Special Committee to December 1985 Structure of senior Continuation SSP (Senior Recommendations Review the structure of services pool. Services Pool) as a cadre; were referred to the senior services pool (SC) entry into SSP at the level of Cabinet Sub- deputy secretary only through Committee for examinations conducted by the examination. Public Service Commission; promotions within SSP to be strictly on the basis of merit; merit-based promotion. 11. Committee to re-examine 1989 Necessity or otherwise Abolition of 27 departments. Not implemented the necessity of of keeping certain keeping certain government offices. government offices in the light of changed circumstances 12. National Pay August 1989 Pay issues Revised national scales of pay; 20 revised national Commission (3rd NPC) 20 revised national scales of scales of pay were pay were introduced by introduced. government.
13. Commission for Review of 1991 Structure of local Reorganization of the union Not implemented. Structure of the Local government. councils and the district Government. councils, and the village (through gramshava/village assembly) to be the fundamental unit of local government. Accordingly, the municipalities and city corporations would be more representative in the urban areas.
60 Appendix 10
Name of the Status of Sl. Commissions and Year Focus Recommendations Implementation No. Committees 14. Administrative Re- August 1993 Structure and Reduction of the number of The report of the organization Committee rationalization of ministries from 35 to 22 and the committee was not (ARC) manpower across number of administrative made public. ministries/ organizations from 257 to 224; departments/ provisional structure for the directorates. office of ombudsperson and creation of a secretariat for the Supreme Court.
15. Local Government 1993 Study the local Identified 12 development Structure Review government and functions, and 12 other Commission. recommend a functions related to suitable, effective, maintenance of security and Not implemented responsible, and order. Union Councils were accountable local given authority to supervise government structure and review the activities of the for the country; government officials working at review and the union level. Formation of a recommend statutory body called Local local government Government Commission. Nine system and structure. specific heads were earmarked for union councils for collecting taxes and to get matching grant from the government if certain amount of internal resources are mobilized. NGOs working in union levels should contribute 10% of their project cost to the union councils as fees; members of parliament would act as advisor to the local government. 16. National Pay August 1996 Pay issues. Revised national scales of pay, 20 revised nation Commission (4th NPC 20 revised national scales of scales of pay were pay were introduced. introduced.
17. Local Government 1997 Strengthening Local The commission suggested a Not implemented Commission Government four-tier local government, Institutions. namely village council, union council, upazila council, and district council. Union council chairmen would write the performance report of union level government staff. Independent local government commission was proposed to look after local government financing and control; 22 specific functions were earmarked for the union councils.
Appendix 10 61
Name of the Status of Sl. Commissions and Year Focus Recommendations Implementation No. Committees 18. Committee for Examine the local Recommended 5 new sources Not implemented. Recommendation of government financing including marriage registration, Financial Powers and system and registration fee for more than Sources of Financing Local suggest/recommend one marriage, construction of Government Institutions. 1999 appropriate new house, fee for commercial interventions. slaughtering, income from union councils’ own constructions etc; suggested for two statutory bodies: (a) Local Government Commission (b) Local Government Finance Commission. 19. Public Administration Appointed in 1997 Improving The Commission made three The recommendations Reform Commission and submitted transparency, types of recommendations: (i) of the Commission (PARC) report in 2000 efficiency, interim, (ii) short term, and (iii) had been accepted by accountability, long term for administrative the government. effectiveness of public reforms in areas such as, Some of the interim administration and defining of mission and recommendations bringing Institutional functions of the public offices; have been and procedural affirming professionalism in the implemented. changes and civil service; performance Judiciary has been improvement of monitoring and result oriented separated and anti- service delivery to performance, audit of corruption commission ensure value for government agencies; has also been money at all levels of delegation of powers to established by administration in the subordinate and field offices; renaming former anti- light of new public open and free access to corruption bureau. management. government documents and reports for the sake of transparency and accountability; separation of judiciary from the executive; separation of audit from accounts; simplification of outdated laws, rules, regulations and forms. Source: This table is compiled by using various sources, including UNDP Mission Report on Bangladesh Civil Service Reform program 2007 - Building a 21st Century Public Administration in Bangladesh. CPD Task Force Report on “Administrative Reform and Local Government". Election 2001: National Policy Forum, Dhaka: 20-22 August 2001; organized by- Centre for Policy Dialogue, Prothom Alo, The Daily Star. Khan, (1998), Administrative Reforms in Bangladesh; UPL: Dhaka. Huque, Ahmed Shafiqul (1996), Public Administration in Bangladesh: Reflection on Reforms, Asian Journal of Political Science, 4:1, 85-97.