Technical Assistance Consultant’s Report

Project Number: 44167-012 December 2013

Bangladesh: Main River Flood and Bank Erosion Risk Management Program (Financed by the Japan Fund for Poverty Reduction)

Prepared by Northwest Hydraulic Consultants, Canada

In association with Resource Planning and Management Consultants Ltd.,

For Bangladesh Water Development Board

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.

Government of the People's Republic of Bangladesh

Bangladesh Water Development Board

Project Preparatory Technical Assistance No. 8054 BAN

Main River Flood and Bank Erosion Risk Management Program

Final Report, Annex C Institutional and Financial Assessment

September 2013

In association with

Resource Planning & Management

Consultants Ltd.

Asian Development Bank

Funded by the Japan Fund for Poverty Reduction

Government of the People’s Republic of Bangladesh Bangladesh Water Development Board

Project Preparatory Technical Assistance 8054 BAN Main River Flood and Bank Erosion

Risk Management Program

Final Report, Annex C Institutional and Financial Assessment

September 2013

Document Status

Title: Institutional and Financial Assessment Annex C Principal Author: Bert van de Putte Contributions: Knut Oberhagemann Md. Makbul Hossain Quazi Towfiqul Islam Sharif Al-Kamal

Final version: September 2013, reprinted 28 FEB 2014

Document Development

Draft Final June 2013 Final R2,29 July 2013 font change, justification & page setup R3, 31 July 2013 font change, justification & page setup R4, 22 Sept. 2013 Format Cover page, changed header- footer month name. R5, 30 Sept. 2013 Final formatting R6 28 Feb 2014 Reprinted R5 Reviewed by:

Institutional and Financial Assessment

MAIN REPORT

ANNEXES

Annex A Priority Sub-reach Selection & Sub-reach Descriptions Annex A1 Priority Sub-reach Selection Annex A2 Sub-reach Description Annex B Background Data Annex B1 National Water Resources Database Annex B2 Socio-economic Data Annex B3 Surveys and Field Visits Annex C Institutional and Financial Assessment Annex D Hydrology and Flood Modelling Annex E River and Charland Morphology and River Engineering Annex F Design Issues Annex F1 Geotechnical Investigations Annex F2 Technical Designs Annex G Economic Feasibility Annex G1 Project Cost Annex G2 Economic Assessment Annex H Implementation and Procurement Planning Annex I Social Gender Equity Strategy & Action Plan Annex J Environmental Impact Assessment Annex K Involuntary Resettlement Annex K1 Resettlement Framework Annex K2 Resettlement Plan

Page iii PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Page iv September 2013 Institutional and Financial Assessment

Glossary ADB Asian Development Bank ADG Additional Director General ADP Annual Development Program AE Assistant Engineer AIFREMIP Integrated Flood and Riverbank Erosion Management Implementation Project ASCR Annual Structure Condition Report BB Bangladesh Bank BCCSAP Bangladesh Climate Change Strategy and Action Plan BCS Bangladesh Civil Service BDPC Bangladesh Disaster Preparedness Centre BDT Bangladesh Taka BHWDB The Bangladesh and Development Board BIWTA Bangladesh Inland Water Transport Authority BME Benefit Monitoring and Evaluation BRTC Bureau of Research Testing and Consultation BUET Bangladesh University of Engineering Technology BWDB Bangladesh Water Development Board BWFMS Bangladesh Water and Flood Management Strategy CAD Command Area Development Project CbFRM Community-based Flood Risk Management CDMP Comprehensive Disaster Management Program CDSP Char Development and Settlement Project CE Chief Engineer CEGIS Centre for Environment and Geo-Information Services CE-RM Chief Engineer River Management CPS Country Partnership Strategy Crore 10 million DC Deputy Commissioner DDCC District Development Coordination Committee DDM Department of Disaster Management DDMC District Development Coordination Committee DFID Department for International Development DG Director General DHI Danish Hydraulic Institute DMB Disaster Management Bureau DMC Disaster Management Committee DMIC Disaster Management Information Centre DoA Department of Agriculture DoF Department of Fisheries DOF Director of Finance DOP Director of Programs DPP Development Project Proposal DRM Disaster Risk Management DRR Disaster Risk Reduction EA Executing Agency EA Environmental Assessment ECRRP Emergency Cyclone Repair and Rehabilitation Project ECNEC Executive Committee National Economic Council ECNWRC Executive Committee of the National Water Resources Council EIA Environmental Impact Assessment EIP Early Implementation Project EMP Environmental Management Plan

Page v PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

EPWAPDA East Pakistan Water and Power Development Authority ERM Emergency Response Management FAP Flood Action Plan FCDI Flood Control Drainage and Irrigation FFWC Flood Forecasting and Warning Centre FIDIC Féderation Internationale des Ingénieurs Conseils FMA(Q) Financial Management Assessment (Questionnaire) FPCO Flood Plan Coordination Organisation FRERM Flood and Riverbank Erosion Risk Management FY Financial Year (July to June) GBM - Brahmaputra - Meghna GDA Ganges Dependent Area GDP Gross Domestic Product GIS Geographic Information System GIZ Gesellschaft für Internationale Zusammenarbeit [Organisation for International Cooperation] GoB Government of Bangladesh GO Government Order GPWRM Guidelines for Participatory Water Resources Management GR Group Relief Program GWP Global Water Partnership HQ Headquarters IA Implementing Agency IEE Initial Environmental Examination IFRERM Integrated Flood and Riverbank Erosion Risk Management IMED Independent Monitoring and Evaluation Division INGO Implementing Non-Governmental Organisation IPSWAM Integrated Planning for Sustainable Water Management IWM Institute for Water Modelling IWRM Integrated Water Resources Management IT Information Technology JICA Japan International Cooperation Agency JMREMP Jamuna- Erosion Mitigation Project JRC Joint Rivers Commission Lakh 100,000 LGED Local Government Engineering Division LGI Local Government Institutions MDG Millennium Development Goals MFF Multi-tranche Financing Facility MIS Management Information System MoDMR Ministry of Disaster Management and Relief (from 2012) MoEF Ministry of Environment and Forests MoF Ministry of Finance MoFDM Ministry of Food and Disaster Management (until 2012) MoU Memorandum of Understanding MoWR Ministry of Water Resources MoWR Ministry of Water Resources MRP Main River Flood and Bank Erosion Risk Management Program NBB Needs Based Budget NGO Non-Governmental Organisation NWMP National Water Management Plan NWMS National Water Management Strategy NWPo National Water Policy NWRC National Water Resources Council

Page vi September 2013 Institutional and Financial Assessment

NWRD National Water Resources Database OCAI Organisational Culture Assessment Instrument O&M Operation and Maintenance PA Project Assistance PEC Project Evaluation Committee PoE Panel of Experts PMIS Personnel Management Information System PMO Program Management Organisation RAC Regional Accounting Centre RBIP River Bank Improvement Project RHD/R&H Roads and Highways Division RRAP Risk Reduction Action Plan RRI River Research Institute (of BWDB) PRSP Poverty Reduction Strategy Paper RWSS Rural Water Supply and Sanitation SDE Sub-Divisional Engineer SE Superintending Engineer SIA Social Impact Assessment SMIS Scheme Management Information System SOD Standing Order on Disaster STIFPP Secondary Towns Integrated Flood Protection Project SSNP Social Safety Net Programs SWAIWRM South-West Area Integrated Water Management Project SWMC Surface Water Modelling Centre Tk Bangladesh Taka TPP Technical Project Proposal TR Test Relief Program UDCC Development Coordination Committee UDMC Upazila Disaster Management Committee UNO Union Executive Officer UP Union Parishad UWSS Urban Water Supply and Sanitation VDPC Village Disaster Prevention Committee VGF Vulnerable Group Feeding Program WAN Wide Area Network WARPO Water Resources Planning Organisation WDMC Ward Disaster Management Committee WMA Water Management Association WMF Water Management Federation WMG Water Management Group WMIP Water Management Improvement Project WMO Water Management Organisation WS Water Sector WSS Water Supply and Sanitation XEN Executive Engineer

Page vii PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Executive Summary

The Main River Flood and Bank Erosion Risk Management Program (MRP) strongly builds on the Jamuna-Meghna River Erosion Mitigation Project (JMREMP). It aims to enhance resilience to flood and riverbank erosion risks along the lower Jamuna and the Padma through non-structural and structural risk management measures at priority erosion sites, providing a fundamental cornerstone for Government's desired river stabilization. The proposed program will replicate and expand to other river reaches the experience, good practices, and lessons learned from JMREMP

Integrated Water Resources Management (IWRM) is an effective approach to managing water resources. The analysis underlying the Integrated Water Resources Management approach is commonly structured in three "pillars":

The enabling environment, including the regulatory framework, the policy and general planning framework and the financing processes for water resources management. The institutional framework comprising the organisations that play a role in IWRM and the mechanisms for coordination of the activities of these organisations as well as their organizational capacity. The management instruments to bring about changes in water resources management practices: planning and implementation processes, the knowledge base and social and environmental safeguards.

A. Enabling environment B. Institutional framework

A1. Regulatory framework B1. Organizations & their capacity A2. Policies & plans B1.1 Management capacity A3. Sector funding B1.2 Technical capacity C. Management instruments

C1. Planning framework for IFRERM C2. Implementation process of structural interventions C3. Knowledge base C4. Disaster Risk Management C5. Interagency coordination mechanisms C6. Social development and safeguards C7. Environmental safeguards

Source: adapted from the Global Water Partnership Toolbox

Figure S.1: The pillars of the IWRM framework for Integrated Flood and Riverbank Erosion Risk Management (IFRERM)

Page viii September 2013 Institutional and Financial Assessment

The specific activities developed under this Technical Assistance, more narrowly focused on the issue of flood hazards and river instability largely associated with the flows, and as such cover roughly one half of the hydrological and planning cycle of IWRM. As such Disaster Risk Management (DRM) means and tools pertaining to flood and erosion hazards are integrated into the IWRM framework. The following describes elements of both approaches in parallel.

A Enabling Environment The regulatory framework for the water sector is defined by the different legal and regulatory documents promulgated by the Government of Bangladesh (GoB). Important documents include:

The Embankment and Drainage Act of 1952 defines the powers of the Engineer to construct and maintain embankments and structures, the determination of costs, the procedure for complaints and provides the legal basis for land acquisition; the Acts of 1959 and 2000 and the Presidents Order of 1972 further elaborate the responsibilities of the Bangladesh Water Development Board (BWDB). The Water Resources Planning Act of 1992 that constitutes the basis for the establishment of WARPO and the BWDB Act 2000. The Draft Bangladesh Water Act (2008) and the National Water Policy regulate the distribution of responsibilities among the different organisations concerned.

The relevant Act for disaster management is the Disaster Management Act of 2008. The Standing Order on Disaster Management (2010) describes the distribution of responsibilities of the different GoB institutions and the coordination mechanisms that are in place.

Other policies and plans include the Millennium Development Goals and a number of sectoral and overall plans, both for water resources management and disaster management. For water resources management a gradual tendency towards enhanced involvement of different stakeholders can be observed in the plans (beneficiaries and GoB institutions).

Financing of water management interventions follows standard GoB procedures, with the Fiscal Year (FY) starting on 1 July and funds typically becoming available from November onward. Disaster management activities require shorter decision making processes, and are funded under additional mechanisms for immediate relief after disasters. The proportion of the Annual Development Plan budget allocated to the water sector shows a decline over recent decades. This is the result of increasing importance of other sectors in the , and the corresponding growing need for notably an expanded communications infrastructure.

Figure S.2. shows that until approximately the early 2000 BWDB received more funds from donors than from the GoB ADP allocation. The development of the annual budget allocations for disaster is shown in Figure S.3.

Page ix PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

3,000.00 2,750.00 2,500.00 2,250.00 2,000.00 1,750.00 1,500.00 1,250.00 Crore Taka Crore 1,000.00 750.00 500.00 250.00 0.00

Fiscal Year GoB(N) PA(N) Total(N) GoB(A) PA(A) Total(A)

Figure S.2: Overview of BWDB funding

Taka in crore 6,000 5,000 4,000 3,000 2,000 1,000 0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Figure S.3. Budget allocations for disaster management

B Institutional Framework

Water Resources Management The key stakeholders in water resources management are the Ministry of Water Resources (MoWR) as the overall coordinating and controlling Ministry, the Water Resources Planning Organisation (WARPO) as the apex body for macro-level water resources planning and the Bangladesh Water Development Board (BWDB) with the associated Commissions and Councils that advise on and/or coordinate policy. Other important stakeholders are a series of knowledge institutions that have generally an independent status and directly related institutions such as the Local Government Engineering Division (LGED), City Corporations and institutions concerned with inland water transport and the construction of the road infrastructure.

Of the two key institutions WARPO struggles to fully execute its role with regard to macro-level planning, mainly due to capacity constraints. The BWDB has in the past demonstrated its ability to execute a large number of projects, also donor funded projects of considerable size. Already for a number of years the organisation is in a process of reorganisation, with staff reduced from over 20,000

Page x September 2013 Institutional and Financial Assessment in the 1980s to effectively little over 6,000 at present. Over time BWDB has shown a mixed performance, with key constraints being its strong engineering/construction focus and a physical environment characterised by dramatically widening rivers, some of them amongst the largest in the world, that was very complex and little understood at the time. In the 1990s BWDB management showed a rapid succession of leaders, affecting management effectiveness. During the first decade after 2000 this has improved, with its Directors General (DG) typically holding their position for minimum 2 years.

BWDB makes only limited use of modern information and communication technology. Some information systems exist in the organisation, but most are dispersed and databases are not regularly updated. The financial management system is based on GoB rules and regulations. It uses financial software that has not been updated since 2006, and staff indicates that the system is vulnerable to breakdown. Overall the financial system is well structured, but slow and rigid. The technical capacity of BWDB is adequate, but the introduction of new approaches and technologies lags substantially behind international developments. BWDB has Memoranda of Understanding with most relevant Ministries and GoB agencies to coordinate activities.

Considerable technological expertise is located in the independent knowledge institutions, particularly the Center for Environment and Geo-Information Services (CEGIS) and the Institute for Water Modelling (IWM).

Disaster Management The GoB institutional infrastructure for disaster management has been reorganised in 2012, and brought under a separate Ministry of Disaster Management and Relief. The newly created Department of Disaster Management (DDM) includes the former Disaster Management Bureau and the Department of Relief and Rehabilitation. The DDM has approx 1200 staff, including the officers at District and Upazila levels, mostly coming from the Department of Relief and Rehabilitation.

Upazila and Union Disaster Management Committees (UDMC) are the key institutions for local level disaster management. DDM coordinates the strengthening of these committees through a number of projects. Under the World Bank funded Emergency Cyclone Repair and Rehabilitation Project a nationwide risk and vulnerability assessment and mapping is currently under way. This also includes flood risks in the BGM area.

Coordination mechanisms Water management and disaster management activities are coordinated at the national and local levels. The Standing Order on Disaster spells out the responsibilities of organisations in water management for disaster management. Importantly, at the national level the BWDB and DDM exchange information for early warning for floods. At the local levels, site specific coordination takes place through the Upazila and Union Disaster Management Committees, and also partly in the DC led regular District Development Committee meetings.

C Management Instruments For the integrated management of water resources the relevant institutions use the overall GoB planning and implementation procedures. The knowledge base for river management is substantial, but largely embedded in individual BWDB staff, or with specialised knowledge institutions outside BWDB. Coordination of activities between water management and disaster management take place through the established coordination mechanisms.

Page xi PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

D Analysis of Gaps and Priority Actions The regulatory framework governing the water management and disaster management organisations is clear and adequate. The responsibilities of organisations are clearly defined. There is a plethora of plans and policies that are largely consistent. Coordination mechanisms are clearly defined, although maintaining alertness and interest in disaster management remains a challenge during periods that no disaster occurs or threatens. Flood victims are often compensated, but for erosion damage no compensation is given.

Although BWDB has had a variable performance in the past, it has a decades long proven track record of implementing major water management projects , both funded from GoB sources as well as externally assisted projects. Overall, BWDB is considered capable to implement the MRP. Some organisational challenges, however, need to be addressed to assure effective and efficient implementation of MRP and enhance sustainability of the effects of the Program on the organisational capacity of BWDB. These challenges are:

• Strengthening the Accounts Directorate to enhance its accounting software system. • Set-up an Asset Management MIS to strengthen maintenance of infrastructures. • Build-up specialised technical expertise in the field of river management. • Set-up and strengthen quality control and supervision of contractors.

E Priorities for Capacity Development The following table presents an overview of the priority activities for organisational strengthening of BWDB proposed under MRP. The table follows the structure maintained in this report, enabling framework, institutional framework including organisational capacity. The strengthening of specific management instruments is included in the in the column with this label.

For disaster management organisational strengthening will focus on the Upazila and Union levels, where Upazila and Union Disaster Management Committees need to be established or reactivated and provided with training and some basic material equipment to play their assigned role during flood disasters. No strengthening of disaster management organizations at National level is envisaged, also because other projects provide adequate support to organisations at this level.

Page xii September 2013 Institutional and Financial Assessment

Table S-1: Priority interventions for institutional capacity strengthening BWDB Strengthening of Structural Skill enhancement Plans and studies Management tools interventions and procedures Enabling Framework Updates of National Water Policy and National Water Management Plan Institutional Establish strong Framework liaison between BWDB, Met Office and DDM to strengthen flood forecasting and warning Capacity to Assign • Strategic planning Hydrological, • Develop guideline for plan and design responsibility for • River training morphological and River Management design work for techniques other technical Planning management of • Survey and studies • Establish an Asset main rivers to evaluation Monitoring MIS dedicated design circle

Capacity to • Construction • Promote the deliver management inclusion of block • Under water allocations in DPP investigation budgets and ADP • River engineering allocations for river Establishment of • River bank geo- management office of Chief technology interventions Organizational capacity Engineer River • River bank Management protection • Leadership • Project management • Capacity to • Resettlement connect and • Environmental cooperate aspects

Page xiii PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Table of Contents

EXECUTIVE SUMMARY ...... 8 A ENABLING ENVIRONMENT ...... 9 B INSTITUTIONAL FRAMEWORK ...... 10 C MANAGEMENT INSTRUMENTS...... 11 D ANALYSIS OF GAPS AND PRIORITY ACTIONS...... 12 E PRIORITIES FOR CAPACITY DEVELOPMENT ...... 12 1 INTRODUCTION ...... 1 1.1 Program Background and Objectives ...... 1 1.2 Principles of Integrated Water Resources Management ...... 1 1.3 Floods and Disaster Management ...... 3 1.4 From IWRM to Integrated Flood and Riverbank Erosion Risk Management (IFRERM) ...... 5 1.1 A. Enabling environment ...... 7 1.2 B. Institutional framework ...... 7 1.3 C. Management instruments ...... 7 1.5 This report ...... 7 2 THE ENABLING ENVIRONMENT ...... 8 2.1 Regulatory framework ...... 8 2.1.1 Water sector ...... 8 2.1.2 Disaster management ...... 10 2.2 Policies and Plans ...... 11 2.2.1 The Millennium Development Goals ...... 11 2.2.2 Water sector policies and plans ...... 12 2.2.3 Disaster management policies and plans ...... 19 2.3 Sector funding ...... 20 2.3.1 Water sector ...... 20 2.3.2 Disaster Management ...... 21 2.4 ADB Country Partnership Strategy ...... 22 3 INSTITUTIONAL FRAMEWORK ...... 24 3.1 Water Sector Institutions ...... 26 3.1.1 Ministry of Water Resources (MoWR) ...... 26 3.1.2 National Water Resources Council ...... 27 3.1.3 Water Resources Planning Organisation (WARPO) ...... 27 3.1.4 Joint Rivers Commission ...... 28 3.1.5 Bangladesh Water Development Board (BWDB) ...... 28 3.1.6 Knowledge institutions ...... 35 3.1.7 Other relevant institutions ...... 37 3.2 Disaster Management ...... 39 3.2.1 Ministry of Disaster Management and Relief ...... 39 3.2.2 Department of Disaster Management ...... 40 3.2.3 Other Institutions ...... 41 4 MANAGEMENT INSTRUMENTS...... 46

Page xiv September 2013 Institutional and Financial Assessment

4.1 Planning Framework ...... 46 4.2 Implementation Process ...... 47 4.2.1 Implementation Process for Structural Interventions ...... 47 4.2.2 Implementation Process for Non-Structural Interventions ...... 49 4.3 Knowledge base ...... 50 4.4 Disaster management ...... 50 4.5 Inter-agency coordination ...... 50 4.6 Social Development and Safeguards ...... 52 5 ANALYSIS OF GAPS AND OPPORTUNITIES ...... 53 5.1 Enabling environment...... 53 5.1.1 Regulatory framework ...... 53 5.1.2 Policy priorities ...... 53 5.1.3 Financing structure...... 54 5.2 Organisational Capacity: BWDB ...... 55 5.2.1 Past performance ...... 55 5.2.2 Organisational capacity assessment ...... 56 5.2.3 Capacity to plan and design ...... 56 5.2.4 Capacity to Deliver ...... 57 5.2.5 Financial capacity ...... 58 5.2.6 Capacity to Connect and Coordinate ...... 60 5.2.7 Capacity to Innovate ...... 60 5.3 Organisational Capacity: Disaster Management ...... 62 5.3.1 Past performance ...... 62 5.3.2 Capacity to plan and design ...... 62 5.3.3 Capacity to deliver ...... 62 5.3.4 Capacity to Connect and Coordinate ...... 63 5.3.5 Capacity to innovate ...... 63 5.4 MFF Institutional Requirements ...... 64 6 IMPLEMENTATION ARRANGEMENTS ...... 66 6.1 Alternative Project Management Arrangements ...... 66 6.2 Proposed Implementation Arrangements ...... 70 6.2.1 Steering and Guidance of Executing and Implementing Agencies ...... 70 6.2.2 Integrated Project Management Organization (PMO) ...... 71 6.2.3 Implementation arrangements DDM ...... 71 6.2.4 Advisory Support ...... 71 6.2.5 Management Information and Reporting ...... 72 7 LESSONS LEARNED...... 74 8 CAPACITY DEVELOPMENT ...... 77 8.1 Capacity Development BWDB ...... 77 8.1.1 Establishment of a strong liaison between BWDB, the Meteorological Office and DDM77 8.1.2 Assign responsibility for design work for Main River Management to dedicated Design Circle 77 8.1.3 Establishment of the Office of the Chief Engineer River Management ...... 78

Page xv PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

8.1.4 Establishment of a Panel of Experts ...... 79 8.1.5 Training ...... 79 8.1.6 Plans and Studies ...... 79 8.1.7 River Management Guideline ...... 81 8.1.8 Asset Management MIS ...... 81 8.1.9 Promoting block allocations ...... 81 8.2 Capacity Development Disaster Risk Management ...... 82 8.2.1 Establishment and support to of Ward Disaster management Committees ...... 82

Appendices

APPENDIX 1: Organisational Structure BWDB ...... 85 APPENDIX 2: Analysis of the organisational survey BWDB...... 91 APPENDIX 3: Financial Management Assessment BWDB...... 129 APPENDIX 4: Establishment and Introduction of a Management Information System ...... 153 APPENDIX 5:Community-based Flood Risk Management ...... 201

List of Tables

Table 1-1: Comparison of Effects of Floods ...... 4 Table 1-2: Erosion of agricultural land, roads, embankment and settlements along the banks of the Jamuna and Padma in 2004 in and Faridpur Districts...... 5 Table 2-1: Overview of elements of the enabling environment ...... 8 Table 2-2: Relationship between PRSP thematic sectors and Millennium Development Goals (MDGs) .. 12 Table 2-3: Main Rivers investment portfolio as per NWMP, 2004 ...... 16 Table 3-1: Key elements of the Institutional framework ...... 24 Table 3-2: Respondents according to Rank ...... 31 Table 3-3: number of valid questionnaires per part ...... 31 Table 3-4: Composition of engineering staff as of January 2013...... 33 Table 3-5: Average tenure of Chairman / Director General for different periods ...... 34 Table 3-6: Summary of Institutional Mechanisms and Committees for Disaster Management ...... 42 Table 3-7: Responsibilities in Emergency Response ...... 43 Table 3-8: Responsibilities in Emergency Response ...... 44 Table 3-9: Responsibilities in Emergency Response ...... 45 Table 4-1: Overview Planning, Budgeting and Expenditures process BWDB...... 49 Table 4-2 Procurement responsibility of DDM ...... 50 Table 5-1: Summary financial requirements for program implementation ...... 59 Table 5-2: Key Institutional Requirements for Multi-tranche Financing Facility Design ...... 65 Table 6-1: Options for distribution of responsibilities between TA-team, PMO and BWDB ...... 67 Table 6-2: Advantages and disadvantages of different options ...... 70 Table 8-1: Overview of capacity development interventions BWDB ...... 78 Table 8-2: Overview capacity development BWDB (Costs in US$) ...... 80 Table 8-3: BWDB Training costs per year (in US$) ...... 81 Table 8-4: Costs of livelihood support capacity development ...... 82 Table 8-5: Costs of support to CbFRM capacity development ...... 82

Page xvi September 2013 Institutional and Financial Assessment

List of Figures

Figure 1-1: Disaster Risk Management as an element of IFRERM ...... 5 Figure 1-2: Overview of Flood Risk Reduction Interventions...... 6 Figure 1-3: The pillars of the IWRM frame work for IFRERM...... 7 Figure 2-1: ADP growth and major sector developments since 1976 ...... 20 Figure 2-2: BWDB Annual Budget and Expenditure ...... 21 Figure 2-3: BWDB annual O&M allocation – breakdown ...... 22 Figure 2-4 : Annual Revised Budget Allocation for Disaster Management and Relief in Bangladesh (2006/07-2011/12) ...... 22 Figure 3-1: Organisational chart BWDB ...... 29 Figure 3-2: Annual recruitment of staff ...... 33 Figure 3-3: Tenure of Organisation leaders (BWDB, LGED) ...... 34 Figure 3-4: Organisational chart DMB ...... 41 Figure 3-5-b: Organisational chart DRR ...... 42 Figure 5-1 BWDB expenditure in riverbank protection (Halcrow, 2002) ...... 59 Figure 5-2: Key interrelationships between Water Resources Management and Disaster Management ...... 64 Figure 6-1: Integrated PMO ...... 68 Figure 6-2: Detached PMO ...... 69 Figure 6-3 : Organizational chart for BWDB program management...... 73 Figure 8-1: Organogram ADG (O&M-I) ...... 86 Figure 8-2: Organogram ADG (O&M-II) ...... 87 Figure 8-3:Organogram ADG (Planning) ...... 88 Figure 8-4: Organogram ADG (Admin) ...... 89 Figure 8-5:Organogram ADG (Finance) ...... 89

Page xvii Institutional and Financial Assessment

1 Introduction

1.1 Program Background and Objectives The Main River Flood and Bank Erosion Risk Management Program (MRP), ADB PPTA 8054 funded by the Japan Fund for Poverty Reduction (JFPR), builds on the Jamuna-Meghna River Erosion Mitigation Project (JMREMP). It aims to sustain incomes and livelihoods of people living along the three main rivers of Bangladesh - the lower Jamuna, the lower Ganges, and the Padma. It will enhance resilience to flood and riverbank erosion risks through strengthening the flood and riverbank erosion management system, including the knowledge base and relevant institutions; and by integrated non-structural and structural risk management measures at priority erosion sites and addressing factors affecting their sustainability.

Coping with water-related disasters is an integral part of the livelihoods of the poor. Disasters include floods, drought, riverbank erosion caused by dynamic river channel shifting, cyclones, and tidal surges. The hardship caused by riverbank erosion is significant. It annually affects about 100,000 individuals, including many poor people who face loss of their homestead, lands, agricultural crops, and also displacement to insecure, marginal environments such as riverine fringe land, char land (river islands), and urban slums. For the inhabitants of riverine areas of Bangladesh, enhanced flood and riverbank erosion risk management (FRERM) has a significant role to play in poverty reduction and economic growth.

The proposed program will replicate and expand to other river reaches the experience, good practices, and lessons learned from JMREMP. Strategic planning will receive more attention in the current project, specifically prediction of long-term morphological trends of river reaches will guide the siting of interventions, as an improvement on the current approach of ad hoc and piecemeal protection of erosion-damaged sites.

Applying the multi-tranche financing facility (MFF) modality, the Program follows for a sector-type approach, to allow for (i) the flexible, adaptive, phased interventions that are technically most appropriate given the dynamic river morphology, (ii) strategic longer-term FRERM planning, and (iii) longer-term and more effective support for institutional capacity enhancement.

1.2 Principles of Integrated Water Resources Management1 Integrated Water Resources Management (IWRM) is a process that promotes the coordinated development and management of water, land and related resources, in order to maximize the resultant economic and social welfare in an equitable manner without compromising the sustainability of vital ecosystems. IWRM is not an end in itself but a means of achieving three key strategic objectives.

• Economic efficiency in water use: Because of the increasing scarcity of water and financial resources, the finite and vulnerable nature of water as a resource, and the increasing demands upon it, water must be used with maximum possible efficiency; • Equity: The basic right for all people to have access to water of adequate quantity and quality for the sustenance of human well-being must be universally recognized; • Environmental and ecological sustainability: The present use of the resource should be managed in a way that does not undermine the life-support system thereby compromising use by future generations of the same resource.

1 This section is based on information from the Global Water Partnership website (http://www.gwp.org/ and http://www.gwptoolbox.org/).

Page 1 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

The three strategic objectives are somehow in competition: water used for economic production is not available for the ecosystem and for social needs and vice-versa. So a balance must be struck between these competing uses of water resources.

Integrated Water Resources Management (IWRM) is accepted around the world as an effective approach to managing river basins. In contrast to the traditional sector-based management approach, integrated water resources management deals with all water functions on equal terms within the framework of an integrated water system. This latter approach considers not only the scientific and technical aspects of managing water systems for sustainable use, but also the related socio-economic, institutional, policy and political aspects. These latter aspects include the laws and organizations, economic conditions, public awareness, cultural and social customs, educational characteristics, political realities, etc., which fundamentally define how humans utilize their water resources. The analysis underlying the Integrated Water Resources Management approach is commonly structured in three "pillars":

A. The enabling environment, including the regulatory framework (laws and regulations), the policy framework (policies and plans from the national level) and the financing structures that regulate the allocation of the resources required for IWRM. B. The institutional framework comprising the organisations that play a role in the realisation of IWRM. C. The management instruments that are available (to the organisations concerned) to manage water resources but also bring about changes in water resources management practices. This includes the planning instruments used to prepare structural and non-structural interventions and the processes to implement the works, the knowledge base on which plans for interventions can be based, the mechanisms for coordination of activities between these sectors available techniques for flood and erosion management and the necessary social and environmental safeguards.

It is important to note the difference between the policies and plans that are included in the enabling environment and the planning framework that is an element of the management instruments. The policies and plans in the enabling environment are national policies and plans that provide the framework in which the executing agency has to work. The planning framework under the management instruments is the set of tools that the executing agency uses to plan its activities: specific technical planning and project/program planning.

The aim of the IWRM process is to get the three pillars and their interaction right:

1. An enabling environment of appropriate, broadly accepted (taking into consideration all legitimate interests) and coherent policies, strategies and legislation. This includes policies at different levels (from national to local level), legislation and a financing structure that is tuned to the specific requirements of water management. The consideration of legitimate interests implies participation of a broad range of stakeholders in the planning and decision making process. A key element in the enabling environment is the overall political will to engage in a truly broad based water resources management process. 2. An adequate institutional framework with organisations that have clear mandates and are capable of executing their assigned tasks effectively, efficiently and in a transparent way. This is not limited to organizations in the water sector only, but it also includes organisations that represent legitimate interests outside the water sector, for example agriculture, transport and

Page 2 September 2013 Institutional and Financial Assessment

others. The institutional framework should also comprise adequate coordination mechanisms or platforms that allow the organisations involved to work together effectively and efficiently. 3. A set of management instruments required to effectively manage water resources, for example a planning framework that serves to prepare interventions and allocate resources for the implementation of these interventions, an adequate and accessible knowledge base on which the preparation of these interventions is based, create awareness among all stakeholders, the availability of economic and regulatory instruments and mechanisms to resolve conflicting interests.

To achieve this, IWRM includes a succession of steps:

1. The inventory phase: the description of the relevant elements of each of the three pillars. 2. The identification of gaps: this concerns the description of missing elements in each of the three pillars and problems in the required interaction between the different elements. 3. The formulation of intervention 4. The activities to strengthen the elements of the three pillars.

IWRM includes both ‘hard’ and ‘soft’ components: the infrastructure needed to harness water for productive use and protect from droughts and floods and the institutions and management interventions needed to ensure efficient use of water resources, safeguard resources and the ecosystems that depend on it, and mediate between competing users and uses.

1.3 Floods and Disaster Management There is a clear relationship between disasters and poverty as indicated in the 2005 Poverty Reduction Strategy Paper (PRSP, p 21-22):

"The relationships between disasters, growth and poverty are both direct and indirect. When a disaster strikes, it immediately puts an end to economic and social activities, because the organisation of such activities becomes dysfunctional. Secondly, disasters such as floods or cyclones may disrupt communications and the infrastructure and consequently peoples’ employment and income may be adversely affected for a period. Most importantly, natural disasters create tremendous human misery, including death, both when they occur and in their aftermath. Often it is the poor and the infirm who fall easy prey to disasters and it is also they who may take the longest to recover from the adverse effects. Also, during a natural disaster the poor are more numerous among those killed because they are least prepared to face such events and they are generally more concentrated in the hazard-prone areas of Bangladesh. Death of the earning member of a poor family brings lasting misery to its members. Thus the gains in poverty reduction suffer a setback. The other direct effects due to natural disasters include damages caused to residential housing, housing goods, crops, fisheries, and livestock. Damage done to transport and communication facilities, capital assets including stocks of food both at the household and the state level have significant indirect adverse effect. The indirect impact and the second-round effects of natural disasters in Bangladesh are often hard to estimate." and:

"Estimates of macroeconomic losses due to floods in Bangladesh do indicate significant impacts on the aggregate output of the country. A comparison of the 2004 floods with the floods in 1988 and 1998 shows that the floods in 2004 have been less severe in terms of inundated area, duration, persons affected and loss of human lives. However, the 2004 floods have caused much greater damage to the economy in areas adjacent to the major rivers (Table 1-1).

Page 3 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Table 1-1: Comparison of Effects of Floods Item 1988 1998 2004

Inundated Area 61 percent 68 percent 38 percent Duration of Flood 23 days 72 days 21 days Persons Affected 45 million 31 million 36 million Total Deaths 2335 persons 918 persons 800 persons Loss of Income/Assets US $ 330 million US $ 2 billion US $ 2.2 billion Sources: 1. 1988 and 1998 data are from the Flood Forecasting and Warning Centre, Bangladesh and the I-PRSP document of Bangladesh 2. Data for 2004 are mostly from the Joint ADB and World Bank Mission on Flood Damage and Needs Assessment, September, 2004.

Analysis of the macroeconomic impact of the 2004 floods in 2004 points out that the growth rate of overall per capita income was estimated to fall from 4.5 percent to 3.7 percent. In the affected Districts in 2000 an estimated 4.3 million households were in the non-poor household groups within 10 percent above the poverty line. These people risk slipping into poverty due to the effects of floods. The magnitude of economic losses due to the 2004 flood was such that it may take two years just to get back to the pre-flood level of Gross Domestic Product (GDP). This will have a consequent negative impact on the pace of poverty reduction.

The Draft 2008 Disaster Management Policy reports substantial losses due to floods (Box 1)

Box 1: Impact of floods Damage by major floods:

• 1987 floods loss - US$ 1,000 million • 1988 floods loss - US$ 1,200 million, 1,517 people killed, livestock 350 thousand • 1998 floods loss - US$ 2,800 million, <1,000 people killed, livestock 26,564, embankment damage 4,500 km. road damage 16,000 km, crop damage 500 thousand ha. • 2004 floods loss - US$ 2 billion, >500 people killed, embankment damage 2,500 km; affected people 35 million • 2007 floods loss – US$ 1.16 billion, 639 people killed, livestock 2590, embankment fully damaged 261 km, partially damaged 1814 km. Source: Draft National Disaster Management Policy, p.3

Riverbank erosion is described as an on-going disaster, but as yet there is little information about the extent of the damage it causes2. The National Water Management Plan (NWMP) states the following:

Rivers in Bangladesh are morphologically highly dynamic. The main rivers are braided, and form islands or chars between the braiding channels. These chars, of which many are inhabited, "move with the flow" and are extremely sensitive to changes in the river conditions. Erosion processes are highly unpredictable, and not compensated by accretion. These processes also have dramatic consequences in the lives of people living in those areas. A study concluded in 1991 reported that: out of the 462 administrative units in the country, 100 were subject to some form of riverbank erosion, of which 35 were serious, and affect about 1 million people on a yearly basis. Around 10,000 hectares land is eroded by river per year in Bangladesh (NWMP, 2001). The erosion prone zones of Bangladesh are. Kurigram, Gaibandha, Jamalpur, , Sirajganj, Tangail, and Manikganj districts3 lie in the erosion prone

2 Disaster Management Bureau, National Plan for Disaster Management 2010 - 2015 (2010) p.12 3 The underlined Districts are included in the MRP

Page 4 September 2013 Institutional and Financial Assessment area along Jamuna River. Erosion of total area and settlement is higher along the left bank than of the right bank. Along , there are the districts of Rajbari, Faridpur, Manikganj, , Munshiganj, Shariatpur and Chandpur. A recent study of CEGIS (2005) shows that bank erosion along Padma River during 1973 – 2004 was 29,390 hectares and along Jamuna River during 1973 – 2004, it was 87,790 hectares. As relevant to this study, loss of land, settlements, roads and embankments due to erosion in 2004 in Sirajganj and Faridpur districts is shown in Table 1-2.

Table 1-2: Erosion of agricultural land, roads, embankment and settlements along the banks of the Jamuna and Padma in 2004 in Sirajganj and Faridpur Districts District Upazila Total Land Eroded Infrastructures (ha) Settlement District Upazila Rural Road Embankment (ha) Road (m) Road (m) (m) (m) Sirajganj Kazipur 177 50 176 84 1617 SirajganjSadar 170 13 1 164 2107 Belkuchi 0 0 Chauhali 207 45 395 Shahjadpur 148 31 159 Total 702 139 160 571 248 3724 Faridpur FaridpurSadar 200 57 1175 370 Char Bhadrasan 78 17 320 Sadarpur 3 3 Total 281 75 320 1175 370 Source: CEGIS, 2005. Prediction for Bank Erosion and Morphological Changes of the Jamuna and Padma River, Center for Environmental and geographic Information Services (CEGIS), Dhaka.

Because of the significant interrelationship between the water resources sector and disaster management, the emphasis in this report will be on these two sectors and their interaction.

1.4 From IWRM to Integrated Flood and Riverbank Erosion Risk Management (IFRERM) IWRM was formulated largely for resource management purposes (water use), and concentrates on resource availability and use, especially during times of low flow. Management of flood hazards (by too much water), is fundamentally different from the more common IWRM problem of distributing too little water in an equitable manner. Consequently, floods and riverbank erosion are usually not considered in the IWRM framework, but they have has many elements in common. Flood and erosion risks are addressed both by structural measures as well as non-structural measures which are mostly in the domain of Disaster Risk Management (DRM).

Source: adapted from North-Eastern Integrated Flood and Riverbank Erosion Management Project (Assam), 2008.

Figure 1-1: Disaster Risk Management as an element of IFRERM

Page 5 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

It is widely understood that flood risk cannot be solely ‘controlled’ by structural works or solely addressed through the provision of reactive relief for victims. Effective flood risk management requires a balanced mix of structural and non-structural flood risk management measures starting with proactive elements such as land-use zoning and building controls. In order to address the problem of flood and riverbank erosion risk management in Bangladesh DRM is incorporated in a framework for Integrated Flood and Riverbank Erosion Risk Management (IFRERM).

The way to address the problem holistically is to address the principal elements of the risk formula: modify the hazard, limit the exposure and reduce the vulnerability with a combination of structural and non-structural interventions. The next figure underlines the functions of these different elements.

Source: North-Eastern Integrated Flood and Riverbank Erosion Management Project (Assam), 2008. Figure 1-2: Overview of Flood Risk Reduction Interventions

This perception of IWRM for IFRERM leads to an adaptation of the IWRM framework that includes both structural and non-structural interventions as management instruments).

Page 6 September 2013 Institutional and Financial Assessment

1.1 A. Enabling environment A1. Regulatory framework A2. Policies & plans 1.2 B. Institutional framework A3. Sector funding B1. Organizations & their capacity B1.1 Management capacity B1.2 Technical capacity 1.3 C. Management instruments C1. Planning framework for IFRERM C2. Implementation process structural interventions C3. Knowledge base C4. Disaster Risk Management C5. Interagency coordination mechanisms C6. Social development and safeguards C7. Environmental safeguards

Source: adapted from the Global Water Partnership Toolbox

Figure 1-3: The pillars of the IWRM frame work for IFRERM

1.5 This report The pillars of the IWRM/IFRERM model as described above constitute the basis for the structure of this report. Chapters 2 to 4 present a concise overview of the three pillars as defined for IFRERM. (enabling environment, institutional framework and management instruments). For the enabling environment and institutional framework the focus is in the two "sectors" relevant for IFRERM: the water sector and the disaster management sector respectively. Within these sectors specific emphasis on the two key implementing agencies of the envisaged Main Rivers Flood and River Bank Erosion Risk Management Program (MRP), the Bangladesh Water Development Board (BWDB) and the Department of Disaster Management (DDM). This is followed by an assessment of gaps and opportunities for each of these three pillars (chapter 5) and an overview of the envisaged interventions (chapter 6).

Page 7 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

2 The Enabling Environment This chapter outlines the enabling environment, the first pillar of IWRM, relevant for the program, with a focus on the water sector and disaster management.Table 2-1 3 provides an overview of the elements of the enabling framework for both sectors covered in this chapter.

Table 2-1: Overview of elements of the enabling environment IWRM Pillar Pillar Program Relevant Elements: Water Sector Program Relevant Elements: component Disaster Management Enabling Regulatory 1. Embankment and Drainage Act (1952) 1. Disaster Management Act (2008) Environment Framework 2. BWDB Acts of 1959 and 2000 2. Standing Order on Disaster 3. Presidents Order 1972 Management (2010) 4. Water Resources Planning Act (1992) 5. Draft Bangladesh Water Act (version 2008) 6. Non legal documents Policies and 1. Millennium Development Goals and Poverty Reduction Strategy Paper plans 1. Flood Action Plan (1995 - 1995) 1. National Plan for Disaster 2. National Water Policy (1999) Management (2010 - 2015) 3. National Water Management Plan (2001) 2. Comprehensive Disaster 4. Outline Perspective Plan of Bangladesh Management Programme 2010 - 2011 - 2021 2014 5. Bangladesh Climate Change Strategy and Action Plan (2009 - 2018) 6. Guidelines for Participatory Water Management (2000) Financing 1. GoB financing mechanism 1. GoB financing mechanism for Structures regular project and programmes 2. GoB financing mechanism for relief and rehabilitation

2.1 Regulatory framework 2.1.1 Water sector The regulatory framework for the water sector is defined by the different legal and regulatory documents promulgated by the Government of Bangladesh. Important documents include:

• The Embankment and Drainage Act of 1952 defines the powers of the Engineer to construct and maintain embankments and structures, the determination of costs, the procedure for complaints and provides the legal basis for land acquisition. • The different Acts defining roles of the BWDB, • The Water Resources Planning Act of 1992 that constitutes the basis for the establishment of WARPO. • The Draft Bangladesh Water Act (2008).

Embankment and Drainage act (1952) The Embankment and Drainage Act of 1952 consolidates the (then) existing laws relating to embankment and drainage. It describes the powers of engineers and serves to make adequate provisions for the construction, maintenance, management, removal and control of embankments and water courses for the better drainage of lands and for their protection from floods, erosion or other damage by water.

Page 8 September 2013 Institutional and Financial Assessment

The 1959 and 2000 Acts and Presidents Order 1972 The East Pakistan Water and Power Development Authority (EPWAPDA) was established in 1959 by Ordinance from the Governor of East Pakistan. It comprised a Water Wing and a Power Wing. After independence, the Presidents Order of 1972 separated the Water and Power Wings of EPWAPDA into the Bangladesh Water Development Board (BWDB) and the Bangladesh Power Development Board respectively. The 1972 President's Order describes the roles and powers of both Boards.

The Bangladesh Water Development Board Act of 2000 further specifies the tasks and roles of the BWDB, and brings these in line with the principles set out in the National Water Policy of 1999 (this concerns mainly the provision that BWDB shall not implement projects having a command area of less than 1,000 ha and regulates management of irrigation schemes). BWDB responsibilities described in the Act include the planning, design and implementation of structural interventions, and the maintenance of coastal embankments, as well as non-structural interventions (including flood forecasting, surveys and studies and the establishment and strengthening of Water User Organizations).

The 2000 Act also defines the composition of the Governing Council of BWDB. Chaired by the Minister in charge of the Ministry of Water Resources, the Board includes representatives of relevant Government Ministries and Departments, of professional organisations and a representative of Non- Government Organisation (NGOs) and two representatives of beneficiary organizations.

Water Resources Planning Act (1992) The Water Resources Planning Act aims to ensure the development and balanced use of water resources. It essentially regulates the establishment and functions of the Water Resources Planning Organisation (WARPO). It defines the main functions of WARPO as:

• conducting the general planning of environmentally balanced water resources for the purpose of developing water resources, • determining the national means and methods for the scientific utilization and preservation of water resources • carrying out other functions relating to advising, collection, disseminating of information, training.

Draft Bangladesh Water Act (version December 2008) The draft Bangladesh Water Act explicitly vests the ownership of water resources clearly in the Government of Bangladesh. By doing so, it constitutes the basis for greater control of Government over water resources and their use. This includes the appropriation of land for structural interventions needed as well as water use rights and defining lawful uses of water. The draft Act provides for instruments to exercise the necessary regulatory functions by GoB (water licensing and water pricing). The Act also defines the functions of the Executive Committee of the National Water Resources Council (ECNWRC) and of WARPO as the secretariat of ECNWRC. The Draft Act is currently (as of June 2013) placed before Parliament and may be approved during 2013.

Non-legal documents The National Water Policy defines the different roles and responsibilities of organisations involved in the water sector (Box 2).

Page 9 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Box 2: Distribution of responsibilities for management and development of water resources • The Government (through the Ministry of Water Resources - MoWR) will formulate a framework for institutional reforms to guide all water sector related activities. It will periodically review the mandates of all water sector institutions and redefine their respective roles, as necessary, to ensure efficient and effective institutions commensurate with changing needs and priorities. • The National Water Resources Council (NWRC) will coordinate all water resources management activities in the country. • The Executive Committee of the National Water Resources Council (ECNWRC) will guide water management institutions at the national, regional, and local levels in the formulation and implementation of policies and plans for improved water management and investment. • The Water Resources Planning Organization (WARPO) will be the exclusive government institution for macro-level water resource planning. It will act as a clearing house for all water sector projects. It will also serve as the Executive Secretariat of the ECNWRC. • The Bangladesh Water Development Board (BWDB) will implement all major surface water development projects and other FCDI projects with command area above 1,000 hectares. • The management of water schemes with a command area up to 5,000 ha. will be gradually transferred to local and community organisations • The Local Government Engineering Department (LGED) will implement FCDI projects having a command area of 1,000 hectares or less after identification and appraisal through an interagency Project Appraisal Committee. • Local Governments (Parishads) will be the principal agencies for coordinating these efforts. Source: National Water Policy (1999).

2.1.2 Disaster management Key elements of the regulatory framework for disaster management are the Disaster Management Act 2008 and the Standing Order on Disaster 2010

The Disaster Management Act of 2008 The Disaster Management Act defines a disaster as: "a serious disruption to a community caused by the impact of an event which requires a significant coordinated response by the Government and other entities to help the community to recover from the disruption. Disasters are usually associated with severe damage to infrastructure and utilities, death, injuries and homelessness, and can be widespread or contained within a particular sector or sub sector and region or sub-region". The State of Disaster must be declared by the President of Bangladesh. A Disaster Area may be declared by the Chairperson of the Inter-Ministerial Disaster Management Co-ordination Committee (the Minister of Disaster Management and Relief).

The Act describes the overall organisational structure for disaster management at the national and field levels. At the national level the act lists the composition of the National Disaster Management Council, the Inter-ministerial Disaster Management Co-ordination Committee and the Disaster Management Advisory Committee. It also defines the responsibilities and roles of each of these committees. At field level the Act stipulates that the following committees be established: (i) District Disaster Management Committee, (ii) City Corporation Disaster Management Committee, (iii) Upazila Disaster Management Committee, (iv) Pourashava Disaster Management Committee, and the (v) Union Disaster Management Committee.

The Act instructs the different committees at National level to draft a National Disaster Management Plan. Local level committees must draft disaster management plans for the different local levels. The Act defines the content of such plans in general terms. It also defines the powers of the local authorities (most specifically the Deputy Commissioners) in case of disasters.

Page 10 September 2013 Institutional and Financial Assessment

Standing Order on Disaster (SOD) 2010 The Standing Order on Disaster outlines the disaster management arrangements in Bangladesh and describes the detailed roles and responsibilities of the broad range of Committees, Ministries, Departments and other organizations involved in disaster risk reduction and emergency response management, and establishes the necessary actions required in implementing Bangladesh’s Disaster Management Model, e.g., defining the risk environment, managing the risk environment, and responding to the threat environment.

The objective of the Standing Order is to make concerned persons at all levels understand and perform their duties and responsibilities regarding disaster management. All Ministries/ Divisions/ Departments/ Agencies shall incorporate disaster risk reduction considerations into their sectoral development plans, and those having emergency management responsibilities shall prepare their own contingency plans and train their staff accordingly.

The SoD defines additional committees4 at the National level, including Committees for specific disasters: Earthquakes, Cyclone preparedness, as well as for the Coordination of NGOs and for Disaster Risk Reduction. There is no Committee specifically for Flood Risk Management or Flood Risk Preparedness.

2.2 Policies and Plans 2.2.1 The Millennium Development Goals Since their adoption in 2000 the Millennium Development Goals (MDG) have become an important yardstick for development. The MDG of 2000 formulated the following concerning disaster management:

Protecting the vulnerable “We will spare no effort to ensure that children and all civilian populations that suffer disproportionately the consequences of natural disasters…are given assistance and protection so that they can resume normal life as soon as possible.”

Box 3: The Millennium Development Goals Protecting our common environment, The Millennium Development Goals resolving to “intensify cooperation to reduce 1. Eradicating extreme poverty and hunger, the number and effects of natural and man- 2. Achieving universal primary education, made disasters”. 3. Promoting gender equality and empowering women 4. Reducing child mortality rates, Despite rapid urbanisation during the last 5. Improving maternal health, two decades, poverty in Bangladesh is still 6. Combating HIV/AIDS, malaria, and other diseases, largely a rural phenomenon, with the largest 7. Ensuring environmental sustainability, and number of extreme poor concentrated in 8. Developing a global partnership for development. the rural areas. The impact of disasters including flooding tends to be most severe for the most vulnerable in society. The Poverty Reduction Strategy Paper (PRSP).

4Additional to the Disaster Management Act.

Page 11 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program identifies a number of issues related to flood and erosion risks affecting poverty and the overall development of Bangladesh5:

Flood: Floods affect the poor most as they live in the agro-ecologically disadvantaged areas. The critical areas include char lands, coastal areas, and other deeply flooded areas. Flood shelter, flood forecasting and flood control measures are suggested as immediate intervention.

Erosion: River erosion creates poverty by making people homeless overnight. The poor are affected most. Coastal islands, the southeast region, the Brahmaputra-Jamuna river banks are the critical areas. These areas need interventions in the form of river bank protection, cross-dams, and land reclamation for rehabilitation of the poor.

The Poverty Reduction Strategy Paper recognises the importance of disaster management for poverty reduction and notably food security. There is special emphasis on the protection of women against disasters. In the PRSP 2005 the relationship between the thematic sectors and the MDG is defined as follows.

Table 2-2: Relationship between PRSP thematic sectors and Millennium Development Goals (MDGs) PRSP thematic sectors MDG’s • Agriculture and environment, including forestry, land use, 7. Ensure environmental sustainability safe water supply and water resources management. 1. Eradicate extreme poverty and hunger • Rural development, including food security, disaster management, safety net programmes, micro-credit and rural non-farm activities Source: PRSP 2005 2.2.2 Water sector policies and plans Over time, Bangladesh has developed an elaborate set of policies, strategies and plans for water management. Key documents are the Flood Action Plan, the National Water Policy, the National Water Management Plan, the Outline Perspective Plan of Bangladesh, the Bangladesh Climate Change Strategy and Action plan and the Guidelines for Participatory Water Resources Management.

Flood Action Plan (FAP, 1990 - 1995) The severe floods of 1987 and 1988 triggered a debate about the effectiveness of water management interventions. It showed that very little was known about the hydrology of Bangladesh and about the performance of existing infrastructures. Support by substantial funding from the international community resulted in the Flood Action Plan (FAP). It was in essence an initial 5 years study phase, which was considered to be a first phase of a long-term programme for water management in Bangladesh. During the study phase, FAP was highly controversial due to its focus on engineering interventions. The opposition to FAP, headed by a number of NGOs feared that FAP would be the precursor of a vast investment programme focussing on large-scale water management works, largely without giving explicit consideration to the vital interests of the weaker segments of the rural population. At the same time, FAP was considered by the BWDB a departure from the purely technical approach to water management.

Ultimately, the FAP studies culminated in the preparation of Bangladesh Water and Flood Management Strategy (BWFMS) report in September 1995, which recommended peoples’ participation, environmental analysis in planning and multi-criteria analysis for screening of plans. The Strategy recommended that the Government should formulate a National Water Policy that addresses these

5 IMF (2005) Bangladesh: Poverty Reduction Strategy Paper p. 104.

Page 12 September 2013 Institutional and Financial Assessment issues and that a comprehensive National Water Management Plan should be prepared within this framework. The unit that supervised the different component of FAP, the Flood Plan Co-ordination Organisation (FPCO) was merged with the Water Resources Planning Organisation (WARPO) which promoted an approach including social and environmental considerations, full participation of the stakeholders (particularly the affected people) in the planning process, and institutional development.

National Water Policy (1999) The National Water Policy (NWPo) declared by GoB emerged in the context of the above process moving towards integrated water management. It laid down the broad principles for the development of water resources. The policies are designed to ensure continued progress towards fulfilling the national goals of economic development, poverty alleviation, food security, public health and safety, decent standard of living for the people and protection of the natural environment.

Box 4. Objectives of the National Water Policy in Bangladesh a) To address issues related to the harnessing and development of all forms of surface water and ground water and management of these resources in an efficient and equitable manner b) To ensure the availability of water to all elements of the society including the poor and the underprivileged, and to take into account the particular needs of women and children; c) To accelerate the development of sustainable public and private water delivery systems with appropriate legal and financial measures and incentives, including delineation of water rights and water pricing; d) To bring institutional changes that will help decentralise the management of water resources and enhance the role of women in water management; e) To develop a legal and regulatory environment that will help the process of decentralisation, sound environmental management, and improve the investment climate for the private sector in water development and management; f) To develop a state of knowledge and capability that will enable the country to design future water resources management plans by itself with economic efficiency, gender equity, social justice and environmental awareness to facilitate achievement of the water management objectives through broad public participation. Source: National Water Policy, Ministry of Water Resources, pages 2 and 3

The National Water Policy marks a fundamental shift from the technical/hydrological approach to water management of the 1980s and early 1990s. It explicitly states the importance of socio-economic factors and environmental aspects of water management. It includes a regional/international dimension emphasising river basin management and the involvement of all stakeholders in the planning of the use of water resources and their management. A main component of the National Water Policy is that it redefines the institutional structure of the entire water management sector (see chapter 3), by specifying the responsibilities of the different organisations in the water sector.

The objectives of the National Water Policy, 1999 reflect a strong focus on water use and less so on averting water related disasters. This notwithstanding, individual sections address the topic of water related disasters, such as floods, droughts, river erosion, and pollution.

The issue of major rivers and flooding is recognized. The NWPo envisages to:

“Undertake comprehensive development and management of the main rivers through a system of barrages and other structural and non-structural measures. Develop water resources of the major rivers for multipurpose use, including irrigation, fisheries, navigation, forestry, and aquatic wildlife. De-silt watercourses to maintain navigation channels and proper drainage. Develop early warning and flood-

Page 13 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program proofing systems to manage natural disasters like flood and drought. Designate flood risk zones and take appropriate measures to provide desired levels of protection for life, property, vital infrastructure, agriculture and . In this regard the following principles will guide future action: i. Regions of economic importance such as metropolitan areas, sea and air ports, and export processing zones will be fully protected against floods as a matter of first priority. Other critical areas such as district and upazila towns, important commercial centers, and places of historical importance will be gradually provided reasonable degree of protection against floods. In the remaining rural areas, with the exception of those already covered by existing flood control infrastructures, the people will be motivated to develop different flood proofing measures such as raising of platforms for homesteads, market places, educational institutions, community centers, etc., and adjusting the cropping pattern to suit the flood regime. ii. In future all national and regional highways, railway tracks, and public buildings and facilities will be constructed above the highest ever-recorded level of flood in the country. This principle will also apply in cases of reconstruction of existing structures of this nature. iii. All plans for roads and railways embankment will adequately provide for unimpeded drainage. and:

Undertake survey and investigation of the problem of riverbank erosion and develop and implement master plans for river training and erosion control works for preservation of scarce land and prevention of landlessness and pauperisation. Plan and implement schemes for reclamation of land from the sea and rivers.”

River stabilization for navigation is in line with the NWP: “Inland navigation is of substantial economic importance to Bangladesh because its numerous watercourses provide the cheapest means of transportation. Siltation, however, has disrupted river communications in many water channels. De- siltation of these channels is required not only to restore their navigational capability but also to assist surface drainage. The policies of the Government in this regard are: a. Water development projects should cause minimal disruption to navigation and, where necessary, adequate mitigation measures should be taken. b. Minimum -flows in designated rivers and will be maintained for navigation after diversion of water for drinking and municipal purposes. c. Dredging and other suitable measures would be undertaken, wherever needed, to maintain navigational capability of designated waterways.”

Environmental issues are recognized and fundamental: “Protection and preservation of the natural environment is essential for sustainable development. Given that most of the country's environmental resources are linked to water resources, it is vital that the continued development and management of the nation's water resources should include the protection, restoration, and preservation of the environment and its bio-diversity including wetlands, mangrove and other national forests, endangered species, and the water quality. Accordingly, water resource management actions will take care to avoid or minimise environmental damages.”

The NWPo clearly states that “Stakeholder involvement should be an integral part of water resources management, at all stages of the project cycle” NWP also attaches priority to project proposals from Community level self-help groups (private) and Non-Government Organisations, provided these are on cost-sharing basis.

National Water Management Plan (2001) Following the NWPo and the NWMS, the National Water Management Plan (NWMP) was prepared with the overall national goals of economic development, poverty alleviation, food security, public health and safety, standard of living for the people and protection of the natural environment. The Plan is structured in a manner that the objectives of 84 different programs planned for the next 25 years contribute individually and collectively to attainment of both the overall objectives as well as to intermediate sub-sectoral goals. The 84 programs are grouped under 8 clusters (Box 5).

Page 14 September 2013 Institutional and Financial Assessment

Box 5: Clusters in the Bangladesh National Water Management Plan Cluster headings and notes on programme content (as per programme headings)

Institutional Development: Capacity building of government agencies and other institutions; Enabling Environment: References to participatory management, water resources law, research and date collection, raising public awareness, environment, alternative financing; Main Rivers: Abstraction projects, works related to barrages, river management, surface water distribution networks, erosion control, dredging, hydropower; Towns and Rural Areas: Urban and rural arsenic mitigation, UWSS, RWSS, sanitation in rural and urban contexts, flood protection for towns; Major Cities: Dhaka and three other major cities: WSS and sewerage, and storm water drainage, as well as flood protection; Disaster Management: Cyclone shelters, flood proofing for roads and railways; irrigation and drought proofing of rural water supplies; Agriculture and Water Management: Promotion of minor irrigation and on-farm water management, improvement of existing irrigation, new irrigation schemes, improved water management at local government and community level, land reclamation, coastal protection and afforestation; Environment and Aquatic Resources: Pollution control, water quality monitoring, fisheries, environmentally critical areas and integrated wetlands management, improved water management, public awareness raising and empowerment. Source: from National Water Management Plan (2001)

The cluster on main rivers addresses four main issues: (i) investigate scope and viability of developing the GBM rivers, (ii) consider how Bangladesh can maintain its fresh water resources within a basin perspective, (iii) review and determine a viable and affordable plan to deal with the problem of erosion in the light of experience gained, and (iv) review the limited prospect of hydropower. The third point is directly relevant for the MRP.

In more concrete terms the generic rivers and estuary region programme names seven individual initiatives out of which three are directly relevant, namely (i) an affordable long-term strategy of erosion protection, (ii) flood proofing needs in the charlands and low lying areas, and (iii) erosion of Meghna River. Another issue, land accretion and land reclamation is more directed towards the coast, but plays a role now for the main rivers at a period of contraction. The first two initiatives are presently addressed and substantial progress has been made, for example through the JMREMP and the Char Livelihood Project. The second initiative is somewhat supported through the first one, in as much as attached chars could be protected from erosion and subsequently flooding through embankments. The main rivers investment portfolio contains 12 initiatives out of which three are directly relevant for MRP (marked in bold and dark grey). Another four have implication for MRP (marked in light grey).

Other investment portfolios have implications, such as (i) major cities, namely Flood Protection, provided under the ADB supported STIFPP II, (ii) Disaster Management, namely Flood Proofing of Charlands, which is supported through the DFID and AusAid funded Char Livelihood Project, (iii) Agriculture and Water Management, indirectly protecting the assets of irrigation projects from flood damages, and (iv) environment and aquatic resources, namely national fisheries master plan and fish pass programme, wetland management, taken up through the GIZ funded Wetland Biodiversity Rehabilitation Project.

The cost estimate for the main rivers component in the NWMP amounts to 223 billion in 2000 BDT. Out of this BDT 155 billion are allocated for the period 2011 to 25. Overall Main Rivers require nearly 25% of the total fund allocation of the NWMP.

Page 15 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Table 2-3: Main Rivers investment portfolio as per NWMP, 2004 Code Title Description MR 001 Main River Studies and Research A sound basis for strategic decision-making and the planning Programmes of future Main River development accepted by the due authorities MR 002 Main River Abstraction Projects Increased irrigated areas, environmental health, navigability and other conditions MR 003 Ganges Barrage and Ancillary Works Increased dry season water availability in the GDA MR 004 Meghna Barrage and Ancillary Works Increased dry season water availability in the NE and SE regions MR 005 Brahmaputra Barrage and Ancillary Increased dry season water availability in the NW, NC and Works NE regions MR 006 Regional River Management and Sustainable river development and management works Improvement MR 007 Ganges Dependent Area Regional Increased dry season water availability in the GDA Surface Water Distribution Networks MR 008 North East and South East Regional Increased dry season water availability in the Northeast and Surface Water Distribution Networks Southeast Regions MR 009 North Central and North West Regional Increased dry season water availability in the Regions Surface Water Distribution Networks MR 010 Main Rivers Erosion Control at Socio-economic impacts of erosion minimised Selected Locations MR 011 River Dredging for Navigation Navigation traffic enabled MR 012 Hydropower Development and Profitable hydropower generation Upgrading

WARPO Guidelines for Environmental Assessment of Water Management Projects 2003 The Guidelines for Environmental Impact Assessment (EIA) for water sector projects was developed by the Flood Plan Co-ordination Organization (FPCO) in 1992 from similar guidelines used in industrialized and developing countries on a variety of water resources projects. Subsequently this was updated by the Water Resources Planning Organizations (WARPO) in 2002 approved by the Ministry of Environment and Forest. The updated Guidelines are being used in Bangladesh for EA of water sector projects.

The Guidelines cover 'environmental assessment' (EA) - a process that covers two key activities at the planning level: Initial Environmental Examination (IEE) and Environmental Impact Assessment (EIA). The guiding principle behind the Guidelines is to safeguard the physical, biological and socio-economic environments during project preparation and operation. The purpose is not to prevent development, but to ensure that it proceeds with due regard for the environment. EAs therefore cover the interactions between different environmental facets and how they are likely to change as a result of proposed project interventions. The process is not necessarily intended to preserve the environment unchanged, but rather to protect (and where necessary conserve) its essential features whilst allowing sustainable development to proceed.

The Guidelines place particular importance on the scoping and bounding exercise to identify the key environmental components and the probable degree of impact on each. Assessment of residual impacts, especially negative ones that cannot be mitigated, is also vital. The results then shape the design and scope of the subsequent EA. The approach is not one of rigid rules and practices, but a flexible set of procedures that can be adapted to suit the severity and extent of the likely impacts arising from each individual set of project proposals, and the project stage at which each EA is done.

Page 16 September 2013 Institutional and Financial Assessment

Women in Development Policy 2011 GoB has clearly expressed its commitment for actions leading to women’s empowerment and realization of their human rights. The principles of gender equality are embedded in the Constitution of the People’s Republic of Bangladesh.

The BWDB Gender Equity Strategy and Action Plan identified nine elements of concern: • Data/Information • Human Resources Development and Training • Participation • Governance • Communication • Income Generation Activities • Monitoring and Evaluation • Contracting • Program Areas

Analysis of the gender strategies is presented in the Annex Gender Action Plan.

Outline Perspective Plan of Bangladesh 2011-2021 The Outline Perspective Plan 6 has a vision to raise Bangladesh to Middle Income status by 2021. This includes raising per capita GDP to US$ 2,000 and reducing poverty to 15% of the population. The Outline Perspective Plan projects an image of Bangladesh for 2021 to establish an economically inclusive and politically accountable society. The broad development goals underlying the Outline Perspective Plan include:

• Achieving food security • Making available adequate infrastructure • Pursuing environmental friendly development

The Plan also sets the strategic directions and provides a broad outline for the Seventh Five Year Plan (FY16-FY20)].

With regard to water resources the objective is "Protection and enhancement of the environment, effectively meeting the challenges arising from the intensifying climate change and addressing other environmental degradation issues". The Plan strategies include pursuing Integrated Water Resource Management (IWRM),promoting research and better technology management, greater use of surface water and rain water, enhancement of land reclamation, undertaking planned and phased dredging and river training activities, prioritising disaster management through flood/drought management, promoting equitable, environment friendly, inclusive and socially sustainable pro-poor accelerated growth, developing Bangladesh as an exotic tourist destination and mitigating effects of climate change.

Climate change is complicating matters as it is believed to cause major changes in seasonal and spatial patterns of water availability, as well as a deterioration in water quality (through salinization, for example) and disturbance in hydrological processes. The likely increasing future impacts of climate change heavily affect the water sector, with corresponding implications for the various water using sectors. It is essential to design and implement effective adaptive activities with a view to minimizing the impacts of climate change.

6GoB, Planning Commission. Outline Perspective Plan of Bangladesh 2011 - 2021.

Page 17 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

The chapter on water management strategies presents a number of broad strategies, including the protection of river erosion of water courses and enhancement of land reclamation and river training activities.

Bangladesh Climate Change Strategy and Action plan7 The Bangladesh Climate Change Strategy and Action Plan (BCCSAP) is a 10-year programme (2009-2018) to build (i) capacity and (ii) resilience to face the challenges of climate change. The BCCSAP has six main themes: 1. Food security, social protection and health: to protect the most vulnerable n society 2. Comprehensive disaster management: to help the country's disaster management system to deal with increasingly frequent and severe natural calamities 3. Infrastructure: to ensure that existing assets (e.g. coastal and river embankments are well maintained) 4. Research and knowledge management: to predict the likely scale and timing of climate change impact 5. Mitigation and low carbon development 6. Capacity development and institutional strengthening to enhance the capacity of GoB institutions, private sector and NGOs to meet the challenges of climate change.

Elements of specific relevance for the Program include (a) improvement of flood forecasting and early warning systems and strengthening of dissemination mechanisms for Comprehensive Disaster Management; (b) repair and maintenance of existing flood embankments; and, continued flood protection activities with flood embankments and ancillary infrastructure; (c) climate change modeling at national and sub-national levels which also incorporates the water sector.

Guidelines for Participatory Water Resources Management The Guidelines for Participatory Water Management (GPWM) was formulated in 2000 taking into consideration past experience. The GPWM will be applicable in all flood control, drainage and irrigation projects of the country. The institutional framework of GPWM, in which the local stakeholders will participate, comprises of 3-tiers of Water Management Organisation (WMO), namely Water Management Group (WMG), Water Management Association (WMA) and Water Management Federation (WMF).

WMOs will be responsible for planning, implementing, operating as well as maintaining local water schemes in a sustainable way and depending on the type of scheme WMOs will contribute towards the capital and operating costs of the scheme as decided by the Government or on a voluntary basis acting in their own interest.

In practice the GPWM is used in selected polder development and irrigation projects in Bangladesh. Although the GPWM are not directly relevant for flood and bank erosion management interventions along the main rivers, it reflects the paradigm shift in BWDB towards recognition of beneficiaries as legitimate stakeholders, and hence their participation in planning, design and implementation of water resources management interventions. This also extends to the interventions of the envisaged Main Rivers Flood and Bank Erosion Management Program (MRP).

7GoB, Ministry of Environment and Forests, Bangladesh Climate Change Strategy and Action Plan 2009.

Page 18 September 2013 Institutional and Financial Assessment

2.2.3 Disaster management policies and plans Disaster Management Policy (2008 draft) A Disaster Management Policy is formulated to define the national perspectives on disaster risk reduction. The Policy is still under consideration with the relevant authorities. The Policy formulates the following objectives: • To reduce the underlying risks • To establish and strengthen the systems and procedures for effective response management

The strategic goals of the policy are: Goal 1: Professionalising the disaster management system Goal 2: Mainstreaming risk reduction Goal 3: Strengthening institutional mechanisms Goal 4: Empowering at risk communities Goal 5: Expanding risk reduction programming Goal 6: Strengthening emergency response systems Goal 7: Developing and strengthening networks

National Plan for Disaster Management 2010 The vision of GoB for disaster management is "to reduce the risk of people, especially the poor and the disadvantaged, from the effects of natural, environmental and human induced hazards, to a manageable and acceptable humanitarian level, and to have in place an efficient emergency response system capable of handling large scale disasters."

The objectives of this Plan are to: • Align the strategic direction of disaster management programs with national priorities and international commitments. • Articulate the vision and goals for disaster management. • Outline the strategic direction and priorities to guide the design and implementation of disaster management policies and programs. • Create a cohesive and well-coordinated programming framework incorporating government, non-government and private sector. • Ensure that disaster management has a comprehensive and all-hazards focus comprising disaster risk reduction and emergency response. • Illustrate to other ministries, NGOs, civil society and the private sector how their work can contribute to the achievements of the strategic goals and government vision on disaster management. The Plan identifies numerous disaster risks in Bangladesh. For the current Program the most relevant disaster hazards described are Floods risks and River Erosion. For floods a distinction is made between flash floods, rain floods, monsoon floods (caused by the major rivers during the monsoon period) and coastal floods. Flooding during the monsoon in 1998 affected about two third of the country and had an enormous impact in the national economy8. In normal years some 30-40% or the country is flooded during the monsoon.

8 National Plan for Disaster Management p. 6, see also box p.6.

Page 19 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

The National Plan for Disaster Management stipulates that plans will be developed for specific types of hazards, including a Flood Management Plan and a River Erosion Management Plan.

The Bangladesh Government has recently adapted its approach to disaster management. There is a significant shift from conventional relief and rehabilitation to community-based risk reduction strategies or programs to reduce community’s vulnerability to various disasters (preparedness and prevention), including flood risks and river erosion, and the extent of hazards/damages caused by those. Hence, heavy reliance on relief and long-term rehabilitation is also substantially reduced during and after disaster, which is also believed to stimulate early recovery of the affected communities to pre- disaster level.

2.3 Sector funding The long term trend in Government financing is reflected in the Annual Development Programme allocations (Figure 2-1). The ADP has increased over the last 30 years from less than 3,000 Crore in the early 1980s to more than 30,000 Crore during the Financial Year 2010/11. This corresponds to an average annual increase of around 8%. Corrected for inflation, and somewhat reflecting the buying power, the budget has still changed dramatically, from about 15,000 Crore in the 1980s (in 2011 BD Taka) to around 25,000 Crore (again in 2011 BD Taka) during the first period of an elected government in the early 1990s. Thereafter the budget remained around 30,000 Crore with a marked dip during the Caretaker government in 2007 and 2008. The share of the water sector in the ADP financing steadily decreased from initially around 15% during the 1980s to half of that during the period of the first elected political government in the early 1990s. Since 2000/01 another decline took place to the present level of around 3.5% of total ADP.

Figure 2-1: ADP growth and major sector developments since 1976 2.3.1 Water sector Overall BWDB’s financing has decreased over time with a strong decline in overall budget since about 2000 however with a recent upward trend. The inflation corrected budget during the 1980s and 1990s was mostly between 1500 and 2000 Crores annually, dropping sharply to around 1000 Crores in the early 2000s. However the present increasing budget is still 30% below the 1990s budget adjusted to inflation. The annual budget seems to be move towards about BDT 1500 Crore (USD 200 M). BWDB

Page 20 September 2013 Institutional and Financial Assessment commonly achieves around 90% disbursement rates, with lows below 80% for the last time during the 2007/2008 care taker government.

Figure 2-2: BWDB Annual Budget and Expenditure

The importance of Water Board, as it is commonly referred to, and the Ministry of Water Resources has declined since the end of the 1990s when the large investment related to the implementation of some components of the Flood Action Plan ceased. The budget of the Ministry of Water Resources is much below other sectors such as education, health and local government.

The O&M allocation shows a steep increase over the last few years and reaches about 25% of the total annual budget. This notwithstanding the substantial gap between O&M demand and allocation remains. Only about 40 to 50% of the demand is commonly allocated. It is difficult to obtain figures for a more detailed breakdown of the BWDB O&M allocation, which seems to be considered as lump sum covering a wide variety of works.

The Water Board has 45 projects under implementation with a total budget of more than BDT 12,000 Crore (see Attachment-2 of Appendix 3). Roughly half of the total amount is allocated for river training the other half for coastal work and FCDI projects with a focus on drainage and irrigation. Riverbank protection works along the major rivers amounts to about 25% of the ADP provisions.

The 2012/13 ADP allocation is approx. Tk. 2100 crore, including approx Tk. 500 crore (or 25%) funding by development partners. The Revenue budget amounts to approx. Tk. 700 crore. From the Revenue budget staff and operational costs are paid. It also includes the lump sum allocation for O&M, this year some Tk. 300-325 crore.

2.3.2 Disaster Management DDM focuses mainly on emergency support covering immediate rescue and relief operations for disaster-victims. For this the Ministry of Disaster Management and Relief has a permanent emergency block fund worth Tk 200 crore (Taka 2000 million) to cover the emergency needs in post disaster situations nationwide. Concurrently, the Ministry of Food maintains a buffer stock of 200 metric tons of food grains (wheat and rice) to meet emergency food requirements in the aftermath of any natural or man-made disasters. At the local level, the District Deputy Commissioners (DCs) have an contingency allocation of 200 maunds (approximately 8,000 kgs) of wheat and rice; and Taka 0.2 million to distribute, on his/her own discretion, amongst the disaster-victims in affected areas. DCs of the disaster-hit areas also send-in requisitions for emergency assistance from the above ministerial

Page 21 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program allocations during disasters, which are normally disbursed within a day. Based on the needs, there are provisions to increase the ministerial allocations as well as undertake special programs by the Ministry to help the victims recover their loses quickly.

Figure 2-3: BWDB annual O&M allocation – breakdown

The government capacity to address disaster management in Bangladesh is very much constrained by lack of resources. An estimated 5 per cent of the total budget of the country is earmarked for this sector annually for all kinds of natural and man-made disasters. The allocations combine both development and non-development expenditures, including VGF, TR, GR, special relief and government Social Safety Net Programs (SSNPs) for vulnerable population affected by any disasters, provided during emergencies and for long-term recovery.

Taka in crore 6,000 4,000 2,000 0

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Note: 1 crore = 10 million. Source: Finance Division, Ministry of Finance, GoB. Figure 2-4 : Annual Revised Budget Allocation for Disaster Management and Relief in Bangladesh (2006/07-2011/12)

2.4 ADB Country Partnership Strategy The ADB Country Partnership Strategy for Bangladesh includes the following thematic drivers: • Good governance and capacity development. • Environmental sustainability and climate resilience. • Regional cooperation. • Private sector development. • Gender equity. • Knowledge solutions. • Partnerships.

Page 22 September 2013 Institutional and Financial Assessment

Under the heading "Environmental sustainability and climate resilience" the following is mentioned.

"Climate change and environmental considerations will be integrated into sector interventions by, for example, minimizing carbon footprints, climate-proofing infrastructure, and boosting climate resilience through support for integrated water resource management, rural infrastructure development, riverbank erosion mitigation, and flood control. ADB will seek to extend support by financing measures to reduce Bangladesh’s exposure to disaster risk. ADB’s assistance will ensure adherence to good environmental standards and safeguards, as well as help build government capacity in climate change mitigation and adaptation."

All key components of the MRP: integrated water resource management, flood control, riverbank erosion mitigation and reduction of exposure to disaster risk are explicitly mentioned and make that MRP is fully consistent with the ADB Country Partnership Strategy.

The MRP is included in the updated ADB 2013 - 2015 Business Plan for Bangladesh.

Safeguards All ADB supported projects and programs are screened on their potential environmental impact and need for involuntary resettlement. The results of the screening determine the need for an Environmental Impact Assessment (EIA) or an Initial Environmental Examination (IEE) and an Environmental Management Plan (EMP). For programs where more than 200 persons will be physically displace from their homes of lose more than 10% of their income generating opportunities a resettlement plan including an assessment of social impacts is required.

Page 23 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

3 Institutional Framework This chapter analyzes the second pillar of IWRM, the institutional framework. This analysis focuses on the main organisations in the water sector and in disaster management respectively, as well on the interaction between these two domains.Table 3-1 summarizes these elements.

This section is starts with a brief situation report on the broader institutional situation in Bangladesh, based on recently published reviews.

Table 3-1: Key elements of the Institutional framework

Level Water sector Disaster management Institutional Organizations 1. MoWR 1. MoDMR Framework involved 2. NWRC 2. DDM 3. WARPO 4. Joint River Commission 5. BWDB 6. Knowledge institutes a. CEGIS b. IWM c. RRI d. BUET (and other Universities) 7. NGOs 8. LGED 9. City Corporations 10. BIWTA Organizational 1. Staff capacity & Human resources 1. Staff capacity & Human resources capacity management management 2. Knowledge base and innovation 2. Knowledge base and innovation 3. Financial management 3. Financial management Coordination 1. National level coordination (Food for Work & national level mechanisms committees). 2. Disaster Management Information Centre 3. Local level coordination

The development of the administrative services reflects the history of Bangladesh. The years after independence where characterized by organizing an independent administration fit for the new nation9. The overall orientation chosen was one of liberal democracy with socialistic orientation.

A transformation process from a predominantly provincial administration to a national administration was initiated. The overall administrative framework was maintained and the same officers continued to work in the secretaries and the executing agencies and its subordinate offices as before. In the field the tiers of divisions, districts, and subdivisions were kept intact till the time the sub-divisions became districts – 68 in numbers now – and thanas became upazillas – 495 in number. While the central services inherited by Bangladesh had a recognisable and operable structure, the provincial services had as many as 24 regularly constituted services. The pay scales of the provincial services were generally lower than similar services under the Central Government of Pakistan. The transition towards a unified cadre was difficult and subject to much criticism.

9 This section is based on ‘Bangabandhur Bhashan’ edited by Mizanur Rahman Mizan and AMM Shawkat Ali: Politician- bureaucrat interface. The Daily Star, 14 March 2011, Supplement 40 Years of Independence, 20 Years of Independent Journalism, pp 75 ff.

Page 24 September 2013 Institutional and Financial Assessment

The transformed socio-political environment of the country did not favour the continued dominance of an elitist Civil Service. One initial idea was to recruit and train political cadres to take over the administrational leadership and coordination role at various tiers of field administration. It was felt that only political cadres with firm roots amongst the people and motivated by the new ideologies could mobilize the masses and transform the pattern of their behaviour to a more political and development oriented attitude. The development orientation is also reflected in the 1973 report from the Administrative and Services Reorganization Committee, which observed that the administrative structure was regulatory rather than development and welfare oriented. The military regime under General adopted a liberal attitude for running the economy, and ruled the country with the help of the civil bureaucracy. In 1976 a new commission was set up and its report in 1977 advocated the creation of technocratic cadres. One of the recommendations was to set up a Senior Policy Pool comprising the top levels of administration hierarchy, which would operate as ‘think tank’ and provide executive leadership in the government services.

General Ershad concentrated on administrative reforms and appointed two major committees, one of which was entrusted with the responsibility of examining organizational set-ups of ministries and divisions, and the department and offices under them. Drastic measures were suggested by these committees including a recommendation for directly elected chairman and a representative council at zilla, upazila and union level, with the elected chairman as the chief coordinator supported by government personnel. These elected councils were to have full functional control over the government officials and with adequate devolution of administrative, financial and judicial powers at the zila and upazila levels. The implementation of these recommendations resulted in the creation of upazila administration at the local level. The upazila system was scraped in 1991 on the grounds that it had not attained noticeable progress in the socio-economic development of the country due to corruption by the upazila functionaries. The district again became the focal point of field administration.

What has the civil service evolved into in the first decade of the new millennium? An apparently unified civil service, with bickering amongst the constituents of the services. As of now the functioning of the civil service reflects a pervasive ‘clientalism’, operating within clearly defined hierarchies. This has been further aggravated during the 1980s by the absorption of active or retired military officers into various BCS cadres. The civil officers resist this on the grounds that the defence services have been manned by officers on totally different premises and appointment process. Training at the PATC and the BCS Academy, while adequate, is yet to be innovative and challenging for the entrants, and definitely does not add a whole lot to their span of knowledge and experience. All this has acted in concert to produce unexceptional quality of candidates being recruited since 1979, the first regular year of entry in the BCS Administration cadre.

Present Performance and Issues “Experience has shown that in Bangladesh, the issue of political bureaucratic interface has degenerated into what is widely known as politicisation of civil services. Political control has led to the deep-seated perception within the political community that whatever is whished by them should be implemented without any question being raised by civil servants. In contrast the civil servants have to work within a complex web of laws, rules and regulations. It is not open to him to violate the same. Violations may invite disciplinary action. If a particular decision given by a minister runs counter to established rules and regulations, a civil servant is duty-bound to draw the attention of the minister. In a developing political system this automatically leads to an adversarial situation. Many questions are raised by some ministers. Civil servants are accused of being an obstructionist or a person with a negative mindset or

Page 25 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program even, disloyal to the party in power. In order to avoid the wrath of the minister, some civil servants do bend the rules10.”

3.1 Water Sector Institutions

3.1.1 Ministry of Water Resources (MoWR)11 The Ministry of Water Resources is the apex body of the Government of the People's Republic of Bangladesh for development and management of water resources of the country. It formulates policies, plans, strategies, guidelines, instructions and acts, rules, regulations, etc. relating to the development and management of water resources, and regulation and control of the institutions reporting to it, including the BWDB (implementation and flood forecasting and warning), WARPO (macro-planning) and knowledge institutions (RRI, CEGIS, IWM). The Bangladesh Haor and Wetland Development Board (BHWDB) is responsible for the development of haors and wetlands. The Joint Rivers Commission, Bangladesh acts as the secretariat of the Ministry for dealing with the sharing and management of the waters of the trans-boundary rivers.

On the MoWR website the mandate of the Ministry includes 19 points, with the following being of direct relevance to the MRP: • Regulation and development of rivers and river valleys. • General policy and technical assistance in the field of irrigation, flood control, anti-water- logging, drainage and anti-erosions. • All matters relating to irrigation, flood forecasting and warning, flood control, flood control works, causes off floods and damage caused by floods to irrigation projects, embankments, etc. • Basic, fundamental and applied research on river valley projects and flood control works. • International cooperation in the field of flood control and development of water resources. • International commissions and conferences relating to irrigation, flood control and water recourse management. • Hydrological survey and data collection. • Matters relating to Joint Rivers Commission; Joint Committee, Standing Committee, etc and Common Border Rivers.

According to the National Water Policy, 1999 the Ministry is responsible for formulation of a framework for institutional reforms to guide all water sector related activities and will: • exercise water allocation power in identified scarcity zones on the basis of specified priorities and determine the priority for allocating water during critical periods; • sustain shallow groundwater aquifers, regulating the extraction of water in identified scarcity zones with full public knowledge; • prepare specific drought monitoring and contingency plans for each region experiencing recurrent seasonal shortage of water etc; • empower local government or any other body, to allocate water in scarcity zones during periods of severe drought, monitor the water regimes and enforce the regulations etc; • confer water rights on private and community bodies to provide secure, defensible and enforceable rights to ground/surface water etc;

10 Summarized from AMM Shawkat Ali: Politician-bureaucrat interface. The Daily Start, 14 March 2011, Supplement 40 Years of Independence, 20 Years of Independent Journalism, pp 75 ff. 11 Based on information from MoWR website

Page 26 September 2013 Institutional and Financial Assessment

• ensure the minimum requirement of stream-flows for maintaining the conveyance of the channel.

The MoWR has very limited technical capacity, and mainly fulfils administrative functions in the relationship with other Ministries and in the relationship between the technical organizations working under its responsibility and the political domain.

3.1.2 National Water Resources Council12 The National Water Resources Council is the national water sector apex body in Bangladesh. The NRWC was established in 1983. It is supported by an executive committee, the ‘Executive Committee of the National Water Resources Council’ (ECNWRC). WARPO acts as the Secretariat to the Executive Committee. The Council is a body which creates policy in relation to management and use of water resources. It is not an implementing agency, but it oversees implementation by other agencies. Notably, the Council has a responsibility to promote coordination, as ‘appropriate’, between agencies.

Box 6. Mandate of the National Water Resources Council The Council will coordinate all water resources management activities in the country and particularly: a) Formulate policy on different aspects of water resources management; b) Provide directions for optimal development and utilization of water resources; c) Oversee the preparation and implementation of the National Water Management Plan; d) Provide directions on the development of institutions in the water sector; e) Provide policy directives for appropriate coordination among different agencies; f) Look after any other matter that may require its attention in the water sector. Source: WARPO, Paper presented at the Regional Meeting of National Water Sector Apex Bodies, 2004, Hanoi, Vietnam.

In practice the direction of transmission, of stimulus, appears to be mostly reversed. The National Water Resources Council gives approval to policies and programmes which are developed at a lower level. These are not submitted to the Council until they are at their final stage of preparation. Only policy issues and programmes of ‘national importance’ are put to the Council - major plans or policies such as the National Water Management Plan. The Council may approve, with directions or instructions’. The impression is of an essentially reactive posture. The Council can choose to exercise its powers pro-actively, for example to resolve any inter-ministerial conflicts which cannot be settled at a lower level.

3.1.3 Water Resources Planning Organisation (WARPO) The main function of WARPO is macro-level planning of the entire water resources management sector. It also acts WARPO as the secretariat of the ECNWRC. WARPO has the important function of maintaining the National Water Resources Database (NWRD). This database was established during the second half of the 1990 at the time of preparing the National Water Policy and the National Water Management Plan. CEGIS was hired at that time for the task and prepared a very comprehensive data base. Updating only started at the end of 2008, when the World Bank financed Water Management Improvement Project (WMIP) retained the services of CEGIS again. It can be stated that in terms of database management a long-term sustainable solution has been found by having CEGIS involved. CEGIS has competent staff to service data requests, but also to updated and modernize the database, as shown for example during its recent activities related to Hoar development. In passing it is noted that

12 Based on information from: Water Aid (Discussion Paper - 2005) Study of National Water Sector‘Apex Bodies’ and Civil SocietyInvolvement in Asia, Case studies of Thailand, Bangladesh and Sri Lanka

Page 27 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program the database is organized regionally as one of its dimensions, but does not have a dedicated subset for the main rivers, as identified in the National Water Management Plan. Spatial data and time series provide a solid base for any asset management system. There is however, no connecting tool towards O&M.

13 3.1.4 Joint Rivers Commission The Joint River Commission is a bilateral working group established by and Bangladesh in the Indo- Bangladeshi Treaty of Friendship, Cooperation and Peace signed in 1972. The two nations established the commission to work for the common interests and sharing of water resources, irrigation, floods and cyclones control. The studies and reports of the commission contributed directly to the efforts of both nations to resolve the dispute over the Sharing of Ganges Waters, facilitating bilateral agreements in 1975, 1978 and finally in 1996[1

Main activities of the JRC are: • Negotiation with the co-riparian countries on development, management and sharing of water resources of common rivers • The JRC particularly holds meetings with India at different levels to discuss issues on sharing of waters of common rivers, transmission of flood related data from India to Bangladesh , river bank protection works along common/border rivers and other pertinent issues • Monitoring and sharing of the Ganga/Ganges Waters at Farakka , India and monitoring at Hardinge Bridge , Bangladesh during 1 January to 31 May every year as per provision of the Ganges Water Sharing Treaty, 1996 • Work jointly with Nepal for harnessing common water resources and mitigating floods and flood damages and conduct research and technical studies • Co-operation with in the field of water resources, enhancing the flood forecasting capability through exchange of flood related data and information of the Yaluzangbu/ , utilize and protect the water resources of transnational rivers in the region keeping in mind the principles of equality and fairness, conduct training in the relevant technical field etc. 3.1.5 Bangladesh Water Development Board (BWDB) The Water Board, as it is commonly known, is a semi government organization established under the Ministry of Water Resources. The vision of the BWDB is formulated as follows14: " (a) to combat river erosion, harmful sedimentation and land degradation due to pollution and desertification; (b) to accelerate reclamation of land from the Bay of ; and (c) management of water related disasters (flood, drought, cyclone etc) to minimise the adverse effects on rural / urban settlements, infrastructures, wildlife and environment (including micro-level planning).

It is by far the biggest organization under the Ministry. The status of semi-autonomy does not translate into more flexibility compared to Departments attached to ministries, but appears to result in a more complex system of approvals. The BWDB is a complex organization, organized in a large number of different entities headed by a large group of Chief Engineers. The upper level management consists of five Additional Director Generals lead by a Director General. The main power lies with the DG (“the DG is the Board”). This setup has the potential for providing strong leadership while carrying the risk of

13 Based on information from http://www.jrcb.gov.bd/ 14 From: 5 Year Strategic Plan (Nov. 2009).

Page 28 September 2013 Institutional and Financial Assessment political influence and marginalization during times of weak leaders. The Board is organized in three main technical areas: (i) Two wings following roughly hydrologic boundaries, with the eastern wing comprising the areas east of Jamuna and lower Meghna and the western wing covering the rest of the country. The areas are split into zones headed by a zonal Chief Engineer. (ii) A planning wing comprising a number of planning and design activities headed by Chief Engineers (e.g. Chief Engineer Design, Chief Planning)

Two other wings address administration and financing supported by monitoring. Figure 3-1 and Appendix 1 present the organizational charts of BWDB.

Note: More detailed organisational charts of the units under each of the ADG's are presented in Appendix 1. Figure 3-1: Organisational chart BWDB

Page 29 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Under pressure from many sides, BWDB is going through a process of change of paradigm. This process was started in the mid-1990s and is still on-going. It is generally summarised as a drive towards Integrated Water Resources Management. In fact this change combines three interrelated processes15:

• Decentralisation: in line with overall policies of GoB the responsibilities for water management activities are decentralised. The enhanced role of LGED and the different approach it follows towards the planning, implementation and operation/maintenance of water management schemes strengthen the decentralised nature of water management. Also within the BWDB the increased attention for O&M and participation of stakeholders emphasise decentralisation, as appears from the O&M guidelines formulated with the help of the IPSWAM project, and adopted by BWDB.

• Integration: Already for decades, the dominant technical hydrological approach to water resources management, focusing almost exclusively on the use of water for agricultural purposes, as practised by the BWDB has been criticised. Within the BWDB attempts were made (for example in the Early Implementation Project - EIP) to include socio-economic aspects in the planning and operation of schemes. The importance of other water users is also gradually recognised, as a consequence of the increased attention given to the socio- economic aspects of water management activities. This finally resulted in Guidelines for Participatory water Resources Management (GPWRM). The National Water Policy is explicitly based on the recognition of the integrated approach to water management including the recognition of the multiple uses of water resources.

• Specialisation: Whereas previously the BWDB possessed the virtual monopoly of decision making in the water sector, the National Water Policy formalises the establishment of a number of organisations, each with a specific role to play in the water sector.

BWDB and Flood and Erosion Risk Management The BWDB concentrates largely on structural flood and riverbank erosion risk management, but also provides a well working flood warning system. It is commonly not involved in river training works related to bridge crossings implemented under the RHD, while the Bangladesh Bridge Authority has involved BWDB staff for the two large bridges under their control, across Jamuna and Padma. Structural Flood and Erosion Risk Management work is largely done by field divisions while some project work supported by donor funding has a dedicated but temporary organizational setup. Divisions involved are (i) zonal – here the initiative is taken for new works or rehabilitation and the first draft design is made, (ii) planning – here the new work is accepted and taken into the formal planning, (iii) design – here the design is checked and approved. Once the planning process is completed and approved by the Government, fund allocations are made in the annual budget. The main initiative as well as implementation is handled by the divisional field engineer. As such the head of the division, the executive engineer plays a pivotal role in implementing new work.

Contractors are paid through Regional Accounts Centers, which add to the complexity of the implementation process.

More recently large-scale erosion prediction is conducted from the Board’s own funds. This planning activity has the potential to provide a more scientific background for planning larger scale interventions based on defined priorities.

15 Adapted from Ministry of Foreign Affairs of the Netherlands, Operations Review and Evaluation Department (2000), The Dutch contribution to Institutional Strengthening in the water Sector in Bangladesh

Page 30 September 2013 Institutional and Financial Assessment

Recent institutional changes Recently BWDB has proposed, and obtained approval of the MoWR, to create the position of Chief Engineer River Management (CE RM), acknowledging the importance of river management of the main rivers system for BWDB. The CE River Management resorts under the ADG Planning Design and Research (see organisational chart BWDB). This post is not yet filled, because approval of MoF is pending. The detailed responsibilities of the position are not yet defined at the time of the present study.

The creation of this post is definitely an encouraging sign that the importance of River Management is recognised, the assigned tasks and position of the CE River Management vis-a-vis the zonal CE's are not yet defined. The CE River Management will dispose of a number of engineering staff (2 SE, 4 XEN and 7 SDE/AE). The precise roles of the CE River Management and the Zonal CE's (resorting under the ADG West Region and the ADG East Region for the planning and implementation of river management works may in practice show some potentially conflicting mandates.

Institutional culture One of the key characteristics of BWDB is a close knit organisational culture essentially based on a strong and proud engineering tradition. This homogeneity of BWDB is simultaneously a strength and a weakness. During the preparation of the current program a survey was conducted on aspects of organisational culture (part 1), of staff perceptions of specific organisational issues (part 2). To conclude staff was asked to list the main strengths and challenges of BWDB (part 3). Of a total of about 512 questionnaires sent, 244 (48%) staff responded to the questionnaire. The distribution of respondents over the various services and ranks in BWDB is presented in the following Table 3-2.

Table 3-2: Respondents according to Rank Designation Number of returned questionnaires 1 Assistant Director General 2 2 Chief Engineer / Additional Chief Engineer 6 3 Superintending Engineer / (Additional) Director / Project Director / Secretary 22 4 Executive Engineer / Deputy Director / Joint Chief 46 5 Sub-Divisional Engineer / Geologist / Hydrologist 36 6 Assistant Engineer / Economist / Assistant Director / Accounts Officer / 23 Research Officer / Assistant Chief / Assistant Director 7 Sub-Assistant Engineer / Accountant 109 Total questionnaires returned 244

After checking, a limited number of questionnaires was rejected for each of the parts. The number of valid questionnaire per part is as follows Table 3-3.

Table 3-3: number of valid questionnaires per part Questionnaire part Number of valid questionnaires processed Part 1 239 Part 2 240 Part 3 244

The analysis of the survey data is presented in Appendix 2. Key findings are: 1. BWDB is characterised by a mix of organisational cultures types typical for many organisations in the public sector. It is a relatively homogeneous and “close knit” organisation, with clear shared

Page 31 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

values. It has a long and proud engineering tradition and the engineering profession still strongly dominates the organisation. There is a feeling of an “esprit de corps” among professional (engineering) staff, with considerable loyalty to the organisation. Many observe that BWDB has a considerable potential both in terms of expertise as well as its wide-spread network throughout Bangladesh. 2. This cohesiveness, however, also leads to an “inward looking” attitude, where BWDB finds it difficult to understand the changes occurring in the policy and societal context of Bangladesh, and finds it difficult to adjust to these changes. There are various signs of this. Policy changes lead to new approaches and strategies being formulated (often under pressure from or with the help of external parties), but these new strategies and approaches are not internalised, and hence not, or reluctantly and partially, adopted in practice. There is a feeling that the status and the respect for the engineering profession in society is decreasing, without the reason for this being fully understood. There is a wide-spread impression that BWDB is not well perceived among policy makers and the population that it intends to serve 3. Throughout the organisation it is perceived that BWDB management finds it difficult to adjust the organisation to the changes in its policy and societal context. All levels in the organisation are critical about management, that is perceived as hierarchical and conservative, but it is striking that senior management is among the most critical. This points to the conclusion that senior management is aware of the need for change, but does not know how this change should be brought about.

The survey conducted among BWDB staff is a first attempt to provide a more solid base for assessment of the organisational culture, going beyond impressionistic perceptions, often based on some limited personal experiences. The findings of the survey confirm many of these impressions, but add some more depth. It becomes increasingly clear that a main problem is that BWDB finds it difficult to adjust to the current policy and societal context in Bangladesh. There is a widely held view in the organisation that BWDB should improve its external positioning in the policy and socio-economic environments in which it operates and interact in a more visionary and creative way with other stakeholders. Management plays a critical role in this respect. The difference between the current situation and the preferred situation is not very pronounced, but stronger in the organisational units that are more directly involved in implementation. Also the fact that it is almost unanimously shared in all organisational units of the organisation and all ranks, including the most senior management levels, gives weight to this view.

3.1.5.1 Management Capacity The management capacity of BWDB to execute water management projects and programs shows some explicit strengths and challenges. One of the key factors affecting the management capacity of BWDB is the fact that the reorganisation of BWDB and the uncertainty that surrounded it for a long time has resulted in very limited recruitment for almost a decade (1996 to 2004). The composition of the core professional cadre of BWDB therefore shows a marked age gap of mid-career professional staff.

Recently the Board took up the initiative to increase its staff based on a need-based assessment. New recruits, however, tend to leave BWDB within a short period to go to a more promising organization, such as the Roads and Highways Department (RHD), the Local Government Engineering Department (LGED) or the private sector. For example, of the 88 young civil engineering staff recruited in 2005, only 45 are presently (January 2013) still with BWDB.

Page 32 September 2013 Institutional and Financial Assessment

The number of engineering staff in BWDB is currently 562 (see Table 3-4). The Ministry of Public Administration approved 1562 engineering positions of the Need-based Manpower Set-up submitted by BWDB. Even if current recruitment levels are doubled to 200 engineering staff per year, and taking into consideration that experience shows that 50% of recruits will remain with the organization, it will take 10 years to realize the envisaged numbers of engineering staff (not even taking into account the retirement of current engineering staff). The absorption of 200 engineering professionals per year into the organization, implying induction training and initial supervised postings will require a major effort of current mid-career and senior engineering staff.

Source: data from Personnel directorate

Figure 3-2: Annual recruitment of staff

Current composition of engineering staff is as follows.

Table 3-4: Composition of engineering staff as of January 2013 Level Approved positions Actually present in BWDB

Chief Engineer 5 4 Additional Chief Engineer 9 10 Superintending Engineer 51 64 Executive Engineer 172 163 Assistant Engineer 210 183 Sub-Divisional Engineer 204 138 Total Engineering Staff 651 562 Source: discussion Director Staff Development BWDB

The overview shows a remarkable shortfall in the junior engineering positions, reflecting the fact that substantial numbers of newly recruited engineers leave the organisation for other employment shortly in the first few years after recruitment. Appointment to senior positions and of the top management is generally based on seniority, resulting in DG's often being appointed shortly before retirement, and hence short tenures. This, however, has improved during recent years as a number of DG's get an extension between 1 and 3 years.

Page 33 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Table 3-5: Average tenure of Chairman / Director General for different periods Period Number of Chairmen / DG Average tenure

1959 to 1990 (31 years) 13 2.1 1990 to 2001 (11 years) 15 0.7 2002 to 2011 (10 years) 6 1.7 LGED 1992 to 2011 (20 years) 6 3.1

Figure 3-3: Tenure of Organisation leaders (BWDB, LGED)

3.1.5.2 Management Information Systems Apart from the accounting system other computerised information systems exist in BWDB: • A Geographic Information System (GIS) with a Scheme Database. The database is dispersed in different organisational units of BWDB (mainly projects). There is no central BWDB database. A GIS unit is now established, and GIS software and hardware is being procured. • A Personnel Management Information System (PMIS), based on a 1993 type database (Foxpro). The software is outdated and has limited capabilities. • Scheme Information Management System (SIMS). The necessary information is only partly available. Accessibility of information in the system is limited. • Hydrological Information Management System used among others for flood forecasting and warning. The system needs to be upgraded.

The existing systems in BWDB are not linked. In-house capacity to maintain and operate the systems is inadequate.

Upgrading of the ICT infrastructure is one of the activities envisaged under the Water Management Improvement Project (WMIP) funded by the World Bank, which has submitted a draft report on this subject to BWDB management.

3.1.5.3 Financial Management Capacity The BWDB financial management system operates according to the regulations of GoB. Under the ADG Finance, BWDB has three Directorates for financial management: Finance, Accounting and Audit. For

Page 34 September 2013 Institutional and Financial Assessment accounting BWDB Accounts Directorate uses the 2006 version of the Microsoft Great Plains Dynamics accounting package. No recent updates have been obtained, allegedly for financial reasons and because staff is familiar with this version. Payments are made by the 26 Regional Accounts Centres (RAC's), a system established some 10 years ago. There is no comprehensive accounting network covering all RAC's. Some RAC's are connected to the network on which the software package operates, others send the information as attachment by e-mail or on pen-drive to the Directorate of Accounts to be included in the system.

According to the Director Accounts the software is adequate for the present mode of operation, but software maintenance is not possible, and there is a real risk of break down, what would paralyse all BWDB operations. BWDB does not employ a software engineer capable of maintaining or adapting the system. The software is obsolete and can handle the volume of information with difficulty.

A detailed analysis of the financial management system and the organisational capacity for adequate financial management is presented in Appendix 3.

3.1.5.4 Technical Capacity The Board also faces challenges with regard to its technical capacity and innovation. Examples are in the field of modern flood embankment construction due to a lack of geotechnical engineering, and, on a different level, as a consequence of outsourcing important activities to consultants, which are then limited to individual projects and not translated into the general practice of design and implementation. The situation is aggravated by the administrative system, which encourages simple replication of what was done in the past and as such discourages development of new technologies. Construction quality is often poor, as reflected in newspaper articles relating failures due to substandard work. 3.1.6 Knowledge institutions Bangladesh has several knowledge institutions that support policy and plan formulation by executing agencies in the water sector.

Center for Environmental and Geographic Information Services (CEGIS)16 CEGIS is an independent institution functioning under the aegis of the Ministry of Water Resources. Its aim is to be a center of excellence for advisory services, research, databases and training in the fields of integrated environmental analysis and Geographic Information Systems and Remote Sensing to assist in improving the quality of planning, implementation and monitoring of projects/programs in both public and private sectors. It was established in 2002. The organization has its roots in the Flood Action Plan integrating the Environmental Study (FAP - 16) and the Geographic Information System Study (FAP - 19).

Over a period of twelve years from 1991 to 2002 the organisation has grown from a traditional project 'EGIS' into a national institute for further developing the country's capability for effective and efficient management of natural resources. CEGIS has been established to make services available for sustainable developments in general and in EIA-SIA in particular in a scientifically independent manner.

From its inception, CEGIS has been carrying out integrated environmental analysis by using modern technologies such as geographic information system (GIS), remote sensing (RS), databases and information technology (IT) and others. It provides solutions to issues and problems in various sectors like water, land, agriculture, fisheries, environment, engineering, power, energy, transportation, etc.,

16 Based on information from http://www.cegisbd.com/

Page 35 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program and recommends technical options based on local realities that are feasible from the socio-economic and institutional point of view.

Institute of Water Modelling (IWM)17 IWM provides highly specialised services in the field of Water Modelling, Computational Hydraulics & Allied Sciences for improved integrated Water Resources Management. The applications of IWM modelling tools cover a wide range of water related areas such as: flood control, flood forecasting, irrigation and drainage, river morphology, salinity and sediment transport, coastal hydraulics, port, coast and estuary management, environmental impact assessment, bridge hydraulics and related infrastructure

IWM owes its genesis to the Surface Water Simulation Modelling Programme (SWSMP) launched in 1986 by the Ministry of Water Resources under the Master Planning Organization to develop a high level of analytical capabilities by use of state-of-the-art mathematical water modelling.

With an added impetus generated by the two disastrous floods of 1987 and 1988, for developing a sustainable professional institution in carrying out all the mathematical water modelling tasks in Bangladesh, including hosting of all Flood Action Plan models the SWSMP continued in its 2nd and 3rd phases with the technical guidance DHI by forming a new project organisation Surface Water Modelling Centre (SWMC). By the end of 1996, SWMC was transformed into an independent organisation under the Trust Act.

From the 1st of August, 2002 Surface Water Modelling Centre (SWMC) has been renamed as Institute of Water Modelling (IWM) in matching with its research and learning status created in its user community.

River Research Institute18 The River Research Institute (RRI) at Faridpur is a national autonomous organization working as a Statutory Public Authority under the Ministry of Water Resources. At present it consists of three directorates: Hydraulic Research Directorate, Geotechnical Research Directorate and Administration & Finance Directorate.

RRI has been established in view of devising plans and actions to develop water resources in a sustainable manner to meet the development needs of Bangladesh. Since its establishment RRI has been conducting multi-disciplinary and problem oriented tests and research in the fields of River Hydraulics, Hydraulics of Structure and Irrigation, Coastal Hydraulics, Soil Mechanics, Material Testing & Quality Control, Sediment Technology, Hydro-chemistry and Geo-chemistry and Instrumentation. The results of such tests and research are playing a very vital role in providing information and recommendations regarding different water resources development plans and interventions.

Bangladesh University of Engineering Technology (BUET)19 BUET is the oldest institution for the study of Engineering and Architecture in Bangladesh. Initially the Dhaka Survey School established in 1876 it went through several stages to being upgraded to the status of a University in 1962. After the war of Liberation in 1971, the University was renamed as the Bangladesh University of Engineering and Technology (BUET). The Department of Water Resources Engineering was established in 1974 at BUET, to produce well-qualified Engineers capable of solving the complex and dynamic water related problems of the country and the region. The Department offers both undergraduate and postgraduate degrees. There are total of about 150 undergraduate students

17Based on information from http://www.iwmbd.org/ 18 Based on information from http://www.rri.gov.bd/ 19 Based on information from http://www.buet.ac.bd/

Page 36 September 2013 Institutional and Financial Assessment and 70 postgraduate students in the department. In addition to educational programs, the Department offers through the Bureau of Research Testing and Consultation (BRTC), advisory and consultancy services, on a great variety of water related problems. Clients include government authorities and private agencies associated with water resources development and management works. Faculty members of the department undertake sponsored research and investigations for different government organizations and non-governmental agencies. The university also funds a number of research projects proposed by the faculty members.

3.1.7 Other relevant institutions Local Government Engineering Department (LGED) The LGED plays some role in flood and drainage management relevant for the flood risk management activities in the country even though not fully recognized due to the limited size of individual interventions. A key player is the small scale water resources management initiative supported by ADB since the mid-1990s. While hundreds of projects cover the whole country, interventions are limited in size. The work concentrates on two important aspects of flood control and drainage management, but is not directly related to riverbank protection. This ADB supported initiative together with the more wide-spread activities of rural road construction (also Donor supported) impacts on local flood characteristics and is little studied so far. While appropriate models are available, there appears to be a lack of interest or felt need to acquire the large number of background data and hire the specialized organization conducting the modelling (IWM). The achievement of the small scale projects lies in the broad involvement of local stakeholders in managing issues under their control, in line with the common principle to “solve problems at the lowest appropriate level”. More background on the small scale projects is provided in a number of documents a more recent being the last RRP for the Small Scale III project 20.

Looking beyond this more narrowly focussed, within LGED limited, field of water management and more specifically flood management activities, LGED plays an important role as example for successful institutional developments. It is widely considered to be one of the best run organizations in the country and as such an example for other organizations to follow. Theoretical support for the so far mostly implicit opinion comes from a recent JICA study21: “LGED’s business domain has been conducive to its effectiveness and to the mobilization of resources which it has used tactically to improve its effectiveness. LGED’s main strengths have been in the organizational behavior elements, which were formed over time by the leadership and practices of the founding chief executive and his close associates, but LGED has also created a certain effective level of organizational structure. While weaknesses have persisted in procedures/rules of financial management, audit, quality assurance, etc, they have been balanced by the strengths in organizational behavior and structure, and further strengthened since the 1980s through capacity development support from donors. LGED is an interesting case because it has been successful without having fully adopted key recommendations of New Public Management on organizational management, such as transformation to agency, merit-based personnel management, and decompression of salary structure.”

City Corporations

20 Report and Recommendations of the President to the Board of Directors: Project Number: 39432, Proposed Loan and Administration of Loan People’s Republic of Bangladesh: Participatory Small-Scale Water Resources Sector Project, August 2009 21 Yasuo Fujita: JICA Research Institute What makes the Bangladesh Local Engineering Department (LGED) so effective? Complementarities between LGED capacity and Donor capacity development support. JICA-Research Institute Working Paper No. 27, January 2011.

Page 37 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

City Corporations are relevant players in the field of flood risk management as they have to provide services to a very densely clustered population and assets largely living on flood prone deltaic plains. Several initiatives have been undertaken related to town protection from flooding and riverbank erosion, but also providing drainage facilities22. In a way town protection is comparable to the LGED water resources management initiative as some sort of “polders” are created and protected from flooding. While LGED does this for productive agricultural lands, town protection projects cover cluster settlements. The provided flood protection and drainage works are the core component for structural flood risk management.

BIWTA While being limited to support ferry and launch operations with a declining trend over the last two decades due to the increasing numbers of bridges constructed, BIWTA recently got major new impetus from the river restoration initiative of Government. The main purpose is the restoration of navigability to which end BIWTA has started procuring a large number of dredgers. While this initiative undoubtedly can be beneficial for smaller rivers, morphologists are commonly aware that its impact will be marginal, at best, on the major rivers, especially if lacking supporting river training initiatives and a clear view of how to develop the river courses.

Private Sector Contractors In Bangladesh contractors construct water infrastructures. Their capacity is important for successful implementation of any engineering plan. A number of contractors have acquired the capacity to execute riverbank protection following above methodology. Due to the relatively simple technical nature of work and the size of the contracts, no big construction firms have emerged in water sector construction work. Though there is a large base of contractors spread all over the country, who solely engage themselves in water sector construction business, most of them are small to medium sized contractors. Only a few have some financial strength, but their technical capacity is rudimentary.

In JMREMP works contracts, a number of work items were incorporated that have not been used in traditional bank protection construction contract. The contractors have to arrange (i) barges with mooring winches for controlled dumping, (ii) survey vessels for river surveys before and after constructing riverbank protection, (iii) divers for checking the consistency of the underwater quality, and (iv) provisions for following environmental and safety aspects as laid down in the environmental monitoring plan. The work bid document specifies construction standards. Bidders are asked state the methodology to be adopted by them in executing the work and their proposed method is evaluated, both technically and financially. In construction of underwater revetment following area coverage method developed under JMREMP, vessels like barge/ pontoon, tug boat are required. The contractors who were engaged under JMREMP did not possess such vessels themselves and rent these from BRE Specialized Division of BWDB23. For excavation works privately owned excavators are available for hire.

Positive experience has been acquired with separate procurement of goods and works, especially for geo-bags and using multiyear construction contracts with flood standby to address emergencies and remobilize quickly after the flood. Over time a number of contractors have been trained to be familiar with implementation from river and adequate implementation capacity is available now. Work packages are made large enough to cover substantial length of river bank under each contract as well as

22 Recent activities relate to the ADB supported Secondary Towns Integrated Flood Protection Project II, including also waste management 23 Few barges and tug boats were procured under World Bank financed River Bank Protection Project implemented in 1990s. BWDB’s Mechanical Equipment Directorate also possesses construction equipment base consisting of excavator, dump truck, pay loader, bull dozer etc. Contractor’s can rent this equipment.

Page 38 September 2013 Institutional and Financial Assessment attract qualified contractors in the bidding process. As per agreed methodology the contractor is responsible for mobilization, operation and maintenance of technical equipment, survey and diving equipment.

In terms of quality control, a number of important positive developments have taken place. The role of the consultant can be reduced to the role of Inspector as per FIDIC with the Superintending Engineer taking the role of Engineer and the Executive Engineer being the Resident Engineer. Consulting supervisors need to be from out of the country as national staff is too much exposed to various pressures. The result of tighter quality control is that contractor's bids are closer to engineer’s estimate, reflecting the real cost for doing the work and not compromising the qualities to gain profit. Under water quality largely depend on diving inspection. The lesson learned is that quality work has its price and depends on stringent, independent supervision making use combination of different tools.

An informal opinion survey was carried out among twelve firms that regularly execute works for BWDB, with the following main findings. • Most contractors started business about 25-30 years ago. All had a humble beginning with contract values of a few hundred thousand Takas. Typically present size of their contracts ranges between 100 - 200 million Taka. Annual turnover, with exception one respondent, ranges between 100-500 million Taka. The preferred size of future contracts is approximately 200 million Taka. • All contractors interviewed possess some equipment, mostly earth moving. None possesses any river crafts, suitable for use in river bank protection work. All respondents have permanent staff (technical and support) but the number varies greatly, from 2-15. One contractor employs more than 100 permanent staff. • Most contractors agreed that under water revetment construction can be effectively done by dumping sand filled geo-bags from positioned barges. Dumping from country boats does not ensure complete coverage of the underwater bank. One interesting finding is that all contractors found more satisfaction in working under a donor funded project than working under exclusively GoB funded project. Apart from being paid regularly, the presence of consultants helped them to resolve any technical issues quickly.

3.2 Disaster Management In 2012 the institutional structure of disaster management has gone through a process of fundamental reorganisation. Until 2012 the Ministry in-charge of disaster management was the Ministry of Food and Disaster Management (MoDMR). In 2012 the Ministry has been split in two and a Ministry of Disaster Management and Relief has been established. In addition to the restructuring of the Ministry, the Disaster Management Bureau (DMB) and the Department of Relief and Rehabilitation have been merged into the Department of Disaster Management (Disaster Management Act of 2012).

3.2.1 Ministry of Disaster Management and Relief In 2012 the responsibility for disaster management was allocated to a separate Ministry, the Ministry of Disaster Management and Relief (MoDMR). This Ministry now has the mandate to drive national risk reduction reform programmes. Its mission relative to this agenda is: “To achieve a paradigm shift in disaster management from conventional response and relief to a more comprehensive risk reduction culture, and to promote food security as an important factor in ensuring the resilience of communities to hazards”

Page 39 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

The aim of the efforts of the Government of Bangladesh is “to reduce the risk of people, especially the poor and the disadvantaged, from the effects of natural, environment and human induced hazards to a manageable and acceptable humanitarian level and to have in place an efficient emergency response management system.”

With the creation of the new Ministry, the DMB and DDR were merged into the Department of Disaster Management DDM.

3.2.2 Department of Disaster Management Traditionally disaster management in Bangladesh was focused on relief and rehabilitation. Following the devastating floods of 1988 and the cyclone of 1991, the focus has shifted towards a holistic approach that embraces processes of hazard identification and mitigation, community preparedness and integrated response efforts. For this purpose a specialist disaster management unit was established, the Disaster Management Bureau in April 1993 as the successor of the Disaster Coordination and Monitoring Unit. Disaster response is coordinated and undertaken by the Directorate for Relief and Rehabilitation, which has a field set-up.

“DMB was a small professional unit at national level to perform specialist support functions working in close collaboration with District and Thana–level authorities, and the concerned line ministries under the overall authority of high–level inter-ministerial committee (IMDMCC). It is a technical arm to the Ministry of Food and Disaster Management (MoFDM) to overview and co- ordinate all activities related to disaster management from national down to the grass-root level.” (http://www.cdmp.org.bd/modules.php?name=MoFDM&AutoID=4)

The mandate of DMB was to • Promote awareness building activities. • A facilitator for the preparation of local disaster management action plans at Union, Upazila and District levels. • Maintain coordination with line departments/agencies, NGOs, social organizations etc. • A facilitator and a depository of all disaster management related information. • Maintain Inventory of skilled disaster management personnel. • Monitoring unit to monitor disaster preparedness activities through district administrations.

DMB was the implementing agency for a main program for disaster management, the Comprehensive Disaster Management Programme (CDMP), (second phase 2010 – 2014). The aim of this program is to further reduce Bangladesh's vulnerability to adverse natural and anthropogenic hazards and extreme events, including the devastating potential impacts of climate change. It will do so through risk management and mainstreaming. The project has six envisaged outcomes24:

1. The development of strong, well-managed and professional institutions in Bangladesh that are able to implement a comprehensive range of risk reduction programmes and interventions. 2. Reduced risk to rural populations through structural and non-structural interventions, empowerment of rural communities and improved awareness of, and planning for, natural hazard events, including the likely impacts of climate change.

24 http://www.cdmp.org.bd/modules.php?name=Components&AutoID=1

Page 40 September 2013 Institutional and Financial Assessment

3. Reduced risk to urban populations through structural and non-structural interventions, improved awareness of natural hazard events and the piloting of urban community risk reduction methodologies that target the extreme poor. 4. Improved overall effectiveness and timeliness of disaster preparedness and response in Bangladesh by strengthening management capacity and coordination, as well as networking facilities at all levels. 5. Improved and broadened disaster-proofing of development funding in nine government ministries by generating increased awareness of hazard risks and providing technical information, advisory services and resources to stimulate positive changes in planning and investment decisions over the long-term. 6. Community-level adaptation to disaster risks from a changing climate is effectively managed.

After the merger of DMB and DDR into DDM the precise description of the mandate of the new organisation is not yet finalised. A tentative organisational chart of the new Department is presented in Figure 3-4.

Figure 3-4: Organisational chart DMB25

3.2.3 Other Institutions To deal with all aspects of disaster, including prevention, preparedness, relief and rehabilitation the Standing Order on Disasters (SOD) created a series of institutional mechanisms at national and local level. These are summarised in Table 3-6.

25 GoB, Disaster Management Bureau Strategic Plan 2005 –2006.

Page 41 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Figure 3-5-b: Organisational chart DRR26

Table 3-6: Summary of Institutional Mechanisms and Committees for Disaster Management Level Summary National • National Disaster Management Council (NDMC) headed by the Prime Minister to formulate and level review the disaster management policies and issue directives. bodies • Inter-Ministerial Disaster Management Co-ordination Committee (IMDMCC) headed by the Minister for Food and Disaster Management to implement disaster management policies and decisions of NDMC/Government. • National Disaster Management Advisory Committee (NDMAC) headed by an experienced person nominated by the Prime Minister. • Cyclone Preparedness Programme Implementation Board (CPPIB) headed by the Secretary, MoFDM, to review the preparedness activities at the initial stage of an impending cyclone. • Disaster Management Training and Public Awareness Building Task Force (DMTATF) headed by the Director General of the Disaster Management Bureau (DMB) to co-ordinate disaster related training and public awareness activities of the government, NGOs and other organisations. • Focal Point Operation Coordination Group of Disaster Management (FPOCG) headed by the Director General of the DMB to review and co-ordinate the activities of various departments and agencies working on disaster management and also to review the Contingency Plan prepared by relevant departments. • NGO Coordination Committee on Disaster Management (NGOCC) headed by the Director General of the DMB to review and co-ordinate the activities of NGOs working on disaster management. • Committee for Speedy Dissemination of Disaster Related Warning/Signals (CSDDWS) headed by the Director General of the DMB to examine, ensure and identify the ways and means for speedy dissemination of warnings and signals to the population at risk. Sub- • District Disaster Management Committee (DDMC) headed by the Deputy Commissioner (DC) to co- national ordinate and review the disaster management activities at the district level. bodies • Upazila Disaster Management Committee (UZDMC) headed by the (UNO) to co-ordinate and review the disaster management activities at the Upazilla level. • Union Disaster Management Committee (UDMC) headed by the Chairman of the Union Parishad to co-ordinate, review and implement the disaster management activities of the concerned union. • Pourashava Disaster Management Committee (PDMC) headed by the Chairman of Pourashava (municipality) to co-ordinate, review and implement the disaster management activities within its area of jurisdiction.

26 GoB, Directorate of Disaster Relief and Rehabilitation, Strategic Plan 2005 - 2008

Page 42 September 2013 Institutional and Financial Assessment

• City Corporation Disaster Management Committee (CCDMC) headed by the Mayor of City Corporations to co-ordinate, review and implement the disaster management activities within its area of jurisdiction. Source: Project Document Comprehensive Disaster Management Programme 2010 - 2014, p.9

Apart from the above institutional mechanisms at the national and sub-national levels, SOD has also described responsibilities of each committee operating at two levels. However, since the sub-national management committees entrusted with local level coordination are at the forefront of Disaster Risk Reduction (DRR) and Emergency Response Management (ERM) in Bangladesh, it is imperative to highlight major features of these committees with respect to (i) holding meetings and (ii) responsibilities in the fields of risk reduction and emergency responses during warning, disaster and post disaster periods. These are presented in the following paragraphs27. The details of these are included in SOD from page 22 – 40.

A. District Disaster Management Committee (DDMC)

Meetings • To meet once in two months during normal time, but during warning, disaster and post disaster phase meetings should be held more frequently varying from daily, if needed, to at least once a week.

Responsibilities in Risk Reduction • To constitute Upazila and Pourashava (grade ‘A’) DMCs. • To arrange training and workshops on disasters. • To ensure compliance with Bangladesh National Building Code for construction of disaster resistant buildings/structures. • To prepare a comprehensive report on ‘Hazard, Vulnerability and Risk Assessment’. • To prepare and monitor a comprehensive short, medium and long-term risk reduction and capacity building Risk Reduction Action Plans (RRAPs) for the district based on the same plans prepared by Upazila and Pourashava (grade ‘A’). • To disseminate early warnings and forecasts. • To select safe centers/shelters for evacuation of the people during disasters along with making arrangements for proper management, various emergency needs (safe water), safety and security of the people in the shelter. • Activate Union, Pourashava and Upazila DMCs during disaster. • Arrange occasional rehearsals on disaster mitigation and warning system.

Table 3-7: Responsibilities in Emergency Response Warning Period Disaster Period Recovery Period

• Disseminate warnings/ • Operate ‘Emergency Operation • Collect and verify statistics on disaster forecasts and evacuate Center (EOC)’ to coordinate all damages to determine priority the vulnerable people. disaster-related activities requirements, gathered by Upazila • Visit emergency shelters everywhere within the district. officials and members to ensure alertness in all • Coordinate rescue and relief Upazila/Pourashava DMCs. respects. activities at Union, Pourashava, • Feed EOC at the Disaster Management • Take alternative Upazila and district levels by and Relief Division (DMRD) of the line

27While local level Disaster Management Committees deal with pre, during and post disaster activities, there are also Local Disaster Response Coordination Groups (LDRCG), composed of almost entirely by representatives of relevant government departments/agencies (i.e. armed forces), at each local level to coordinate their activities with minimum reorganization only during disaster and recovery (see SoD, Disaster Management Bureau, April 2010, p41-43).

Page 43 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

measures to ensure safe government, private and voluntary Ministry and Disaster Management drinking water in the organizations (NGOs). Information Center (DMIC) of DDM on shelters. • Ensure personal security of women, disaster damages and priority needs in • Demonstrate children and persons with relief and rehabilitation. community-based water disabilities (PWDs). • Allocate, distribute and monitor relief and purification techniques. • Protect environmental degradation rehabilitation assistance to the affected • Undertake emergency through quick memorial services of people as per the guidelines of DDM and measures to fill-up gaps corpses and dead animals. district authority. in the stock of life-saving • Coordinate activities of various concerned drugs. departments of the district.

B. Upazila Disaster Management Committee (UzDMC)

Meetings To meet once a month during normal time, but during warning, disaster and post disaster phase meetings should be held more frequently varying from daily, if needed, to at least once a week.

Responsibilities in Risk Reduction • To assist formation and activation of DMCs at Union and Pourashava levels. • To assist Union and Pourashava DMCs increase their efficiency in developing early warning system, risk reduction programming, and rescue, recovery and awareness raising strategies. • To arrange regular training and workshops on disaster management and also assist Union and Pourashava DMCs to arrange such events and keep DDMC informed about progress and constraints. • To prepare and monitor a comprehensive short, medium and long-term risk reduction and capacity building action plans (RRAPs) for the Upazila with active participation of the people at risk. • To assist Union and Pourashava DMCs to mobilize locally available resources in a legal way to implement the action plans. • To build capacity of Union and Pourashava DMCs, local institutions, volunteers to motivate people to adapt with disaster resistant agriculture and livelihood options (i.e. housing structures). • To ensure safe water and other emergency services for the safe shelters and other places with the help of Upazila authority. • Arrange occasional rehearsals on disaster mitigation and warning system.

Table 3-8: Responsibilities in Emergency Response Warning Period Disaster Period Recovery Period

• Disseminate • Operate ‘Emergency Operation • Collect statistics on disaster damages warnings/forecasts and Center (EOC)’ to coordinate all and priority needs for relief and evacuate the vulnerable disaster-related activities rehabilitation and send them to DDMC. people. everywhere within the Upazila. • Distribute and monitor relief and • Visit emergency shelters to • Organize emergency rescue and rehabilitation assistance to the affected ensure alertness in all coordinate relief activities of the people and send accounts of those to respects. government and NGOs in the DDMC and donor agencies. • Take alternative measures Upazila. • Ensure that the affected people resettle to ensure safe drinking • Ensure personal security of women, in their original lands, even that they water in the shelters. children and persons with were not the legal owners of the lands. • Demonstrate community- disabilities (PWDs). • Arrange lesson learning sessions with based water purification • Protect environmental degradation the participation of concerned techniques. through quick memorial services of institutions/organizations and • Undertake emergency corpses and dead animals. individuals involved in emergency measures to fill-up gaps in • Enforce Union and Pourashava response. the stock of life-saving DMCs to prepare water purification drugs. technology.

Page 44 September 2013 Institutional and Financial Assessment

C. Pourashava Disaster Management Committee

Meetings To meet once a month during normal time, but during warning, disaster and post disaster phase meetings should be held more frequently varying from daily, if needed, to at least once or twice (during warning) a week.

Responsibilities in Risk Reduction • To ensure that people are kept informed and capable of undertaking practical measures for risk reduction at household and community levels. • To arrange regular training/workshops on disaster management by keeping DDMC (in case of grade ‘A’ Pourashava) and UDMC (in case of ‘B’ and ‘C’ grade Pourashavas) informed. • To prepare short, medium and long-term vulnerability reduction and capacity building action plan for the high-risk people with active participation of the community at risk. • To establish local funds for implementation of risk reduction action plans. • To arrange quick and effective dissemination of disaster forecasts. • To build capacity of local institutions, volunteers, and the community to adapt disaster resistant livelihood options (i.e. habitats, agriculture etc). • To ensure safe water and other emergency services for the safe shelters and other places with the help of district authority (in case of grade ‘A’ Pourashava) and Upazila authority (in case of ‘B’ and ‘C’ grade Pourashavas). • To keep stocks of life-saving drugs at Pourashava. • Arrange occasional rehearsals on disaster mitigation and warning system.

Table 3-9: Responsibilities in Emergency Response Warning Period Disaster Period Recovery Period

• Disseminate warnings/ • Operate emergency rescue • Collect statistics on disaster damages and forecasts and evacuate the work based on locally available priority needs for relief and rehabilitation vulnerable people. facilities. and send them to DDMC. • Visit emergency shelters to • Und • Distribute and monitor relief and ensure alertness in all • Ensure personal security of rehabilitation assistance to the affected respects. women, children and persons people and send accounts of those to • Take alternative measures to with disabilities. DDMC and donor agencies. ensure safe drinking water in • Protect environmental • Ensure that the affected people resettle the shelters. degradation through quick in their original lands, even that they • Demonstrate community- memorial services of corpses were not the legal owners of the lands. based water purification and dead animals. • Arrange lesson learning sessions with the techniques. • Enforce Union and Pourashava participation of concerned institutions/ • Undertake emergency DMCs to prepare water organizations and individuals involved in measures to fill-up gaps in the purification technology. emergency response. stock of life-saving drugs. Source: ibid, p.22-40.

D) Village Disaster Preparedness Committees

In many areas Village level Disaster Preparedness Committees (VDPCs) have been established, usually by NGOs funded by donors after a disaster occurred. These operate under the Union DMCs, with similar functions.

Page 45 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

4 Management Instruments The description of the management instruments focuses on the management instruments that are directly relevant for the Implementing Agency, the BWDB.

4.1 Planning Framework In BWDB all planning is coordinated by the Planning Wing, headed by the ADG (Planning). The Technical Project Proposal/Proforma (TPP) and the Development Project Proposal/Proforma (DPP) are the two documents through which government’s approval is accorded for project implementation. A TPP is required for technical/feasibility study project while a DPP is required for capital investment project. Preparation of the planning documents including the TPP and DPP is the responsibility of the office of Chief Planning, assisted by concerned field offices, three Planning Directorates or the relevant Project Management Office.

Technical/ feasibility study After identification of a possible project, a Technical Project Proposal (TPP) document needs to be prepared to obtain approval to cover the costs of a feasibility study. Chief Planning prepares this document with the assistance of concerned field office/Planning Directorate or Project Management Office. TPP costing up to 20 million is approved by MoWR, TPP costing more than BDT 20 million is approved by the planning Commission. Once a TPP is approved, it is included in Annual Development Program (ADP) and a budgetary allocation is made.

After this, consultants are recruited following the procurement rules of the Government, or the funding donor. The recruitment of consultants is the responsibility of Chief Planning. He discharges this responsibility with the approval of Director General at many of the steps needed. Sometimes, approval of MoWR is needed depending upon cost ceiling, provided by ‘Delegation of Financial Power’ of Government. If a feasibility study funded by an external donor, they may recruit the consultant directly; but the concurrence of BWDB is sought before award of the contract.

Preparation and approval of DPP If the identified project is found out to be technically feasible, economically viable and socially acceptable, a DPP is prepared for implementation of the project. For donor funded projects the DPP is based on the feasibility study.

The preliminary draft of DPP is prepared by concerned field office in case of GoB financed project. For donor supported projects, a draft DPP is prepared by the relevant Project Management Office (this may be an assigned Planning Directorate under Chief Planning or a temporary PMO office, set up for the purpose). After internal approval in BWDB (Chief Planning, ADG Planning and DG) the draft is submitted to MoWR for further processing to get Government approval.

At the MoWR, the DPP is reviewed by planning wing of the Ministry and placed for consideration at the Departmental Project Evaluation Committee (DPEC) meeting. DPEC consists of representatives from Planning Commission, Ministry of Finance, and LGED in addition to officials of MoWR, DG/BWDB and DG/WARPO and is headed by the Secretary, MoWR. If the submitted document is accepted by DPEC, then it is submitted to Planning Commission for final approval. At the Planning Commission, the DPP is reviewed by concerned official of the Planning Division and placed for consideration of inter-ministerial ‘Project Evaluation Committee’, headed by Member (Agriculture, Water Resources and Rural Institutions), Planning Commission. If the project proposal is found consistent with Government’s development goals and objectives, fits in the Five Year Plan, and can be accommodated with available

Page 46 September 2013 Institutional and Financial Assessment fiscal resources, the committee recommends the project for approval. If the cost of the project is BDT 250 million or less, the Planning Minister gives final approval. For projects, costing more than BDT 250 million, the DPP is placed to ECNEC (Executive Committee, National Economic Council - chaired by the Prime Minister) meeting for consideration and approval. If the DPP is approved, the decision is circulated to concerned Ministries and Departments by Planning Commission for actions. Following ECNEC decision, MoWR issues the related Government Order (administrative approval).

Revision of DPP In the course of implementation, an approved DPP may need revision. Preparation and approval of a revised DPP follow the same process as described above. As a rule DPP's can be revised twice, although exceptions are known to occur.

4.2 Implementation Process

4.2.1 Implementation Process for Structural Interventions Once a DPP is approved, the information is circulated to all concerned Ministries and Divisions. The project enters into implementation phase and is automatically included in the (revised) ADP and a budgetary allocation is made as per financial schedule of the DPP. This is done by the Programming Division of Planning Commission.

Annual Development Program (ADP) For BWDB, the concerned field office or project management office in charge of execution of project implementation prepares the ADP, based on DPP provisions. At the headquarter level, Directorate of Program coordinates the ADP preparation, checks for consistency and prepares consolidated ADP of BWDB. With the concurrence of DG, this is sent to MoWR for onward transmittal to the Programming Division of the Planning Commission. Programming Division makes the final budgetary allocation based on resource availability. In the second half of each fiscal year, the Revised ADP (RADP) for the current year and ADP for the next year are prepared.

Preparation and Approval of Physical Breakup The approved ADP allocation is circulated among the field offices/project management offices. The field offices collect necessary data and prepare project-wise physical and financial breakup in standard format and send this to the Directorate of Program that checks for consistency/ If approved, and with concurrence of BWDB management this is sent to MoWR for final approval

Detailed Work Authorization On the basis of approved physical breakup, Zonal Chief Engineers/Project Directors issue detailed work authorizations to start procurement. At the same time, the procurement plan is prepared to be approved by the concerned ADG or the DG, depending on the cost ceiling.

Procurement As per the procurement plan, the concerned Executive Engineer/Superintending Engineer/Chief Engineer (as the case may be) invites tenders following Government procurement rules. For donor- supported project, the procurement rule of that donor agency may be to be followed. Tenders are evaluated by a Tender Evaluation Committee and approved by the competent authority. If the cost of a single procurement is more than BDT250 million, the competent authority is MoWR up to BDT500 million. Above that amount approval from the Cabinet Committee on Government Purchase for approval.

Page 47 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Disbursement

Fund Release Funds of the ADP allocation is released quarterly. For GoB funding the proposal for quarterly fund release is prepared by the designated Project Director in standard format; along with supporting information. All Project Directors send the proposal to the Director Finance who checks for consistency and forwards the proposal to MoWR, with the concurrence of ADG (Finance). At MoWR, the fund release proposal is checked against the ADP allocation and physical breakup; if found satisfactory, it issues a Government Order (GO) to the Chief Account Officer, Ministry of Water Resources. Following the GO, Director Finance BWDB then presents the bill to the Chief Account Officer for payment. For the 4th quarter, MoWR send the fund release proposals received from BWDB to Finance Division (Ministry of Finance) for their concurrence, following which MoWR issues order for fund release for last quarter. Released funds are deposited in the Central Accounts of BWDB. Then on recommendation of Director Program, funds are distributed to the field Regional Accounting Centres (RAC). The Deputy Director/Accounts officer in charge of RAC keeps project wise accounts of fund received.

Reimbursable project aid fund Funds for reimbursable project aid are made available by special account. For most cases, these special accounts are imprest accounts.

For donor aided project, BWDB applies to the Finance Division through MoWR, seeking permission to open an imprest account. The Finance Division issues permission and instructs Bangladesh Bank to open an imprest account against the specific project. At the same time permission is given to open a corresponding ‘project account’ in local currency with a commercial bank (second stage imprest account).

The Donor agency deposits an initial amount in foreign currency as advance in the imprest account with the Bangladesh Bank (BB). The BB transfers an equivalent amount in local currency to the project account in the commercial bank. The Project Director spends the money from the project account with the commercial bank and submits a withdrawal application to the donor agency along with statement of expenditure and supporting voucher. The donor agency then replenishes the imprest account in BB with the amount spent in US$. BB then transfers the equivalent amount to the project local currency account.

The above operational procedure requires advice from the Finance Division, Ministry of Finance. At the beginning of financial year, Project Directors of BWDB project will initiate proposal for utilization of reimbursable project aid, as per ADP provision of the year. The proposal is sent to the Finance Division through MoWR for issuance of a Government Order. After the necessary scrutiny, the Government Order is issued for the whole year.

Expenditure Executive Engineers prepare contractor’s bill against completed work and supply and submit to concerned RAC. The RAC makes actual payment to the contractor/agency. The RAC maintains accounts of payment they make and submit monthly accounts to the Director, Accounts (BWDB). The Director Accounts consolidates the accounts received from RACs all over the country.

The Director Accounts prepares an annual statement of funds received and expenditure and submits this to the Office of the Account General of the Government. The unspent balance for the year is deposited in the treasury.

Page 48 September 2013 Institutional and Financial Assessment

Monitoring BWDB monitors procurement (Status of tender invitation and receipt, evaluation and award of contract), planning (status of TPP/DPP preparation, approval) and implementation (physical and financial progress). A monthly review meeting is held at the BWDB presided over by the DG. Another review meeting is held at the MoWR presided by the Minister or in his absence by the Secretary.

Table 4-1: Overview Planning, Budgeting and Expenditures process BWDB Step Description Responsible

Planning Preparation of the multi-year TPP/DPP’s Planning Directorates BWDB MoWR approval Review of DPP & Approval by MoWR MoWR GoB approval Review of DPP & Approval by GoB Planning Commission Implementation Green light for BWDB BWDB Annual Programming of expenditures Preparation of expected expenditures Directorate Programs BWDB Approval Annual Programming of Review & Approval of Annual Programming Division of Expenditures Programming of Expenditures Planning Commission Quarterly requisition of fund release Every quarter requisition with overview of Directorate Programs BWDB expenditures previous quarter Fund release Transfer of funds to BWDB through Ministry of Finance MoWR Transfer to Project/Field offices Distribution over Project/field offices Directorate Accounts BWDB Contractors Bills Preparation of contractor's bills XEN and Project Directors Disbursements Payment of bills Regional Accounting Centres Monthly Accounts Preparation of monthly accounts of Directorate of Accounts expenditures 4.2.2 Implementation Process for Non-Structural Interventions

The Department of Disaster Management (DDM) follows GoB procurement procedures for the contracting of service delivering organisation and goods. The major project implemented by DDM (Comprehensive Disaster Management Program - CDMP, supported by UNDP) does not rely on procurement of goods and services by DDM. Initially UNDP assured the procurement for CDMP, later CDMP management assumed the responsibility for all necessary procurement, albeit that procedures are used that are consistent with GoB procurement rules. To assure smooth procurement of goods and services for the CbFRM component, ADB’s procurement guidelines will be followed. Staff of PMU-DDM will participate in the formulations of terms of reference/specification of goods to be purchased, together with the CbFRM specialist. Relevant DDM staff will participate in the training in ADB procedures recommended for PMO staff (see recommendation (i) appendix 3: Financial Management Assessment).

For the CbFRM component procurement of goods and services will be done by the PMO upon recommendation of DDM. The following steps will be followed. Criteria for selection during the pre- qualification phase and for the tender evaluation will be based on ADB procurement rules.

Page 49 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Table 4-2 Procurement responsibility of DDM Goods Services Responsible 1 Description of goods to be Detailed terms of reference for DDM with technical assistance of procured, including quantities the services required. PMO and detailed technical specifications 2 Pre-qualification of suppliers PMO with assistance of DDM 3 Invitation to tender PMO 4 Tender evaluation Tender evaluation committee composed of 2 representatives of PMO and 1 representative of DDM Contracting PD-PMO

Because procurement will be done by the PMO, the procurement rules of the EA (i.e. BWDB) apply. Tenders are evaluated by forming appropriate Tender Evaluation Committee and approved by competent authority. In the process, officers of different level, Executive Engineers up to DG may be involved; depending upon individual procurement size. If the cost of individual procurement cost is more than BDT250 million, competent authority is MoWR up to BDT500 million. An individual Procurement costing more than BDT500 million go to Cabinet Committee on Government Purchase for approval.

4.3 Knowledge base Over the past decades, BWDB has build-up substantial experience with the management of the main rivers in Bangladesh. This knowledge and experience, however, has not been systematised and is largely embedded in the individual senior staff members of the organisation. The age gap in the organisation due to a decade of non-recruitment hampers smooth transfer of knowledge and experience to younger staff who can apply it in practice.

4.4 Disaster management As described elsewhere (sections 2.2.3, 2.3.2 and 3.2.1), Bangladesh has in principle a multi-layered system for disaster risk management. The system defines responsibilities and roles from the central level to the community/union level.

4.5 Inter-agency coordination Inter-agency coordination at the national level is often formalised through Memoranda of Understanding between GoB institutions. These MoUs usually describe the responsibilities of the parties involved and the domains win which they will cooperate. For the execution of its activities, BWDB has concluded a series of Memoranda of Understanding with a large number of agencies. MoU's exist at agency level (more general with a broader scope) and for specific projects (covering specific activities). BWDB has MoUs with a variety of GoB institutions that have a legitimate interest in water resources management. Agency level MoU's generally create the framework for cooperation that must be further specified as the situation requires. This may result in more specific project level MoU's. These MoUs often include a description of coordination/cooperation mechanisms and sometimes of financial relations. The most important MoU's are with the LGED, RHD, BIWTA and the Ministry of Agriculture.

Page 50 September 2013 Institutional and Financial Assessment

A second important mechanisms for practical inter-agency coordination is at the local government level, the District Development Coordination Committees (DDCC) and the Upazila Development Coordination Committees (UDCC). The DDCC and UDCC meet regularly (usually once a month). A specific issue with regard to the role of BWDB staff in these committees is that BWDB Divisional boundaries do not always correspond to local government administrative boundaries. BWDB staff may therefore have to participate in several DDCC or UDCC. This, in combination with the fact that BWDB staff perceive their work with a engineering focus, makes that BWDB staff sometimes abstains from participating in DDCC and UDCC meetings.

The SOD describes in detail the roles and responsibilities of each of the 37 Ministries of the Government of Bangladesh. Also the roles and responsibilities of the Ministry of Water Resources and the organisations that resort under this Ministry are spelled out in considerable detail (see Box 7).

These roles and responsibilities are further elaborated for the BWDB (pages 82 to 88 of the SOD). Noteworthy is that the SOD specifically instructs the BWDB to " Consider all hazard risk and use the historical disaster data and information while designing the embankments, protection walls, sluice gates and other infrastructure".

Donor coordination A limited number of donors and funding organisations (development partners) have structurally supported interventions in the water sector in Bangladesh over the last decades. The main development partners were the Asian Development Bank, the World Bank and some bilateral development agencies, notably JICA and the Netherlands. Other development partners contributed smaller amounts or for shorter periods.

Development partners have shown to follow different approaches to support water sector interventions. Even where the geographical area of intervention is comparable and the objective of the intervention similar, approaches are often not fully harmonised28. Coordination of contributions of development partners is in principle the responsibility of the recipient, i.e. BWDB. In practice, however, it appears difficult to coordinate their contributions and approaches, as each has its instructions from policy level at home and has its own perceptions of what is needed in Bangladesh. To address this issue the Local Consultative Group for Water Resources Management was created in the 1980s, as a discussion platform for representatives of development partners, but this Groups has been dysfunctional for more than 5 years.

28 For example in the participatory development of FCDI projects

Page 51 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Box 7: Roles and responsibilities in the context of disaster management of the Ministry of Water Resources and organizations that resort under this Ministry Risk Reduction • Incorporate disaster risk reduction considerations into the water sector policies, plans and programmes • Develop sectoral risk mitigation and preparedness strategy of the Ministry of Water Resources. • Ensure budgetary provision for risk reduction activities and programs. • Ensure implementation of the risk reduction programmes and activities through establishing an effective monitoring and evaluation system • Establish a sectoral risk communication system. Normal Times • Designate one senior staff as the focal point of this Ministry. • Participate in the meeting of NDMC and IMDMCC and direct BWDB to implement the decisions taken in the meetings. • Issue directives to all its department and divisions to ensure execution of all the relevant decisions of the meetings of NDMC, IMDMCC and NDMAC. • Issue directives to all its divisions down to the district, Upazila and union parishad level to support civil administration, NGOs and civil society. • Mainstream disaster management principles and practices within the Ministry. • Ensure disaster risk reduction is mainstreamed in development policies. • Ensure budgetary provision for the ministry for its risk reduction and management activities. • Undertake risk reduction activities which include embankment construction in high risk areas, sluice gate operations, and embankment maintenance. • Operate and manage the Flood Forecasting and Warning Centre (FFWC), and the Flood Information Centre (April-November). • Monitor water levels of all major river systems. • Provide weekly flood situation reports. • Undertake risk reduction activities that ensure the control or reduction of loss and damage from recurring floods. • Develop a sectoral contingency plan for disaster risk reduction and management activities of the ministry. Cautionary/Warning Stage • Monitor water levels of all major river systems. • Provide flood forecasting and warnings • Ensure effective communication, information and reporting during emergency response and recovery operations. Disaster Stage • Provide daily flood reports • Protect sluice gates, repair breaches, leakages and weak points in embankments. • Ensure quick assessment of damage and take necessary action. • Ensure effective dissemination of warning signals of the ministry. Rehabilitation Stage • Undertake loss and damage, and needs assessments and manage the repair, reconstruction and rehabilitation of infrastructure. • Ensure the restoration of infrastructure, logistics and installations for domestic, industrial and export use projects. Projects connected with agriculture, fisheries and industrial rehabilitation will be given the highest priority. Source: GoB, Standing Order on Disaster (2010)

4.6 Social Development and Safeguards BWDB has carried out involuntary resettlement policies in previous projects. These activities, are conducted on the basis of the relevant GoB and ADB requirements and guidelines. These are embedded in the organisation on a project to project basis depending on the level of activities required.

Page 52 September 2013 Institutional and Financial Assessment

5 Analysis of gaps and opportunities

5.1 Enabling environment 5.1.1 Regulatory framework The regulatory framework for the water resources management sector as well as for disaster management are well established and adequate. The different mandates, roles and responsibilities of the organisations and entities involved are clearly defined in the various legal and regulatory documents.

5.1.2 Policy priorities Overall the importance of the water sector has declined during recent decades. This appears from the relative decrease of budgets allocated to water resources management and also from the far-reaching reorganisation of the BWDB since 2000, reducing its staff from approx. 19,000 to little over 6,000 at present. The decline of the budget allocations partly reflects demographic changes notably the rapidly increasing urbanisation, as well as the evolution of the economy away from rural, agricultural production towards a more diversified economy that is increasingly industrialised and with a rapidly developing services sector. To some extent, however, it might also reflect disillusionment with the perceived performance of BWDB, as well as the fact that BWDB is not a revenue earning entity. BWDB is seen as a conservative organisation, with a mainly technical focus and lacking transparency in its operations. The carving-up of responsibilities for water resources management (see 5.2) in recent decades (splitting of the macro-planning function, research and increased outsourcing to private consultants) was partially a response to these perceived institutional weaknesses.

Despite its declining financial allocation the importance of proper water resources management is still widely recognised, and in recent years the awareness that water resources management is of vital importance for the country is increasing again. Several factors contribute to this. • First the dynamics of the main rivers (Ganges, Brahmaputra and Meghna - GBM) is better understood. • Second, the increased use of water upstream, notably the water of the Ganges river in India, combined with the increased use of water resources for economic activities (intensified agriculture, industrialisation and urbanisation) necessitates careful allocation and use of available water resources. This requires an improved water resources management infrastructure. In recent years the emphasis on diversification of agriculture away from a decades-long almost unique focus in rice production to more high-value crops are gaining momentum. This has profound implications for water management, including flood control. • Third the rapid economic development and the increasing urbanisation drastically increase the importance and value of the infrastructure that must be protected from devastation by floods. More than before, the need for adequate flood protection of important parts of the economic infrastructure is recognised. • Finally, the increased population density and increased development of assets on the of Bangladesh require more emphasis on preparedness and to some extent prevention of flood disaster. This is further supported by the need for increased agricultural outputs through intensified cropping in pursuit of self-sufficiency in food grain.

Plans and policies express the need for an integrated approach to water resources management in Bangladesh, considering the needs of all sectors and taking into consideration among others climate

Page 53 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program change and environmental factors. In practice this integrated approach to the management of water resources is still evolving. Important steps have been made, but further changes, also in the organisational culture of the agencies involved and in the skill mix in these agencies, need to be promoted. The plans and policies that are currently in force are conducive to the further introduction of principles of Integrated Water Resources Management, but need to be further specified to play a meaningful role in realising IWRM in the country. For IFRERM, such a specification is included in the project document.

The National Water Management Plan indicates the need for a "viable and affordable plan to deal with the problem of erosion in the light of experience gained". More than ten years after writing the plan this third point requires updating. At the time of writing, the NWMP first major riverbank protection schemes were just completed with little performance experience or understanding of river response and failure mechanisms. This period was furthermore characterized by rapid river widening and a somewhat desperate fight against erosion. Since then substantial additional knowledge has been accumulated especially in the field of morphology, riverbank protection designs based on performance reviews, construction techniques, and low-cost alternatives.

5.1.3 Financing structure Overall the allocation from the ADP for water management has decreased, reflecting the changing structure and hence development priorities of the Bangladesh economy, and partially also reflecting the fact that most major works required for water management are in place and the main costs are now for rehabilitating existing infrastructures.

Operation and Maintenance (O&M) is funded from the Revenue Budget allocation for BWDB. BWDB allocates these funds through an internal process. There is, however, a tendency to favour more costly rehabilitation work over smaller size contracts for routine maintenance. This is in part because O&M funds are considered insufficient when compared to requirements (and hence the most urgent problems are to be solved first), but it is also due to complex bureaucratic procedures for tendering and contracting that make one large contract easier to manage that a large number of smaller contracts. Available information about the maintenance status of infrastructural works in the country is not comprehensive. Routine maintenance that could prevent deterioration of infrastructures is therefore delayed until the moment that more expensive rehabilitation is required.

Project funds are allocated for narrowly defined works, not providing flexibility to adjustments. However, flexibility is specifically required for riverbank protection implemented in the constantly changing environment of the large rivers. In addition often substantial time passes between project planning approval and implementation, leading to completely changed site conditions and inadequate funding. The rigidity of the budget allocation process is not in accordance with the continuously changing situation of the rivers. A system of block allocations (such as practiced for LGED), combined with on-call contracts for pre-selected contractors would bring the budgetary process in line with the dynamics of the situation on the ground. Under-provision of the required budget the risks to jeopardise the quality of the work, and with that the success of riverbank protection works.

The operations of the Ministry of Disaster Management and Relief for disaster prevention and rehabilitation follow similar procedures to those described for BWDB. For immediate relief, however, DDM has access to an emergency block fund of Tk 200 Cr, and buffer stocks of food grain that can be released at short notice. Each District Deputy Commissioners also dispose of an emergency fund (Tk 2 lakh) and 8 tons of food grains.

Page 54 September 2013 Institutional and Financial Assessment

5.2 Organisational Capacity: BWDB

5.2.1 Past performance There is some scepticism about the past performance of BWDB. The quality of implementation is perceived as mediocre, and the BWDB is seen as an organisation with little interest and capacity to works with the variety of stakeholders in water resources management. Several factors, some beyond the control of BWDB have contributed to this:

1. Large irrigation schemes perform relatively poorly. The Board does not succeed in sustainable participatory management of public irrigation schemes, among others because it has not been equipped with the capacity, including the required skill mix, to manage these schemes jointly and for the benefit of stakeholders, nor does it have the will to turn over (parts of) irrigation projects to autonomous management. BWDB is struggling to define new ways of operation for more than a decade since the CAD project started in 1995. 2. The long term river widening process, was initially poorly understood. The extreme widening of the major rivers during the 1980s and 1990 largely associated with the sediment wave originating from the Great Assam Earthquake in 1950 was a Herculean task, which was impossible to shoulder. The first counter measures were only constructed during the second half of the 1990s and some could not live up to the promise. The damage of the Board’s most expensive riverbank protection scheme, Sirajganj Town Protection, during the first flood after construction in 1998 aggravated doubts about the Board’s ability. This notwithstanding, the lack of required technical knowledge (for example geotechnical engineering) and the poor quality of implementation (embankments are commonly not compacted) are internal issues the Board has not solved. The financier World Bank abandoned its support to initiatives in the main rivers29. Only about a decade later during the mid-2000s a cost effective alternative evolved finally that has the potential for wider implementation and addressing the problem of river instability30. The results of this about one decade long project (JMREMP), provides the starting point of the new initiative outlined in this report. 3. The Board had weak leadership during a critical time of the 1990, a time when major studies were conducted under the Flood Action Plan and irrigation was still very prominent. The seniority principle resulted in a quick succession of short tenure Chairmen especially during the second half of the 1990 causing a lack of leadership. The Board was partially reformed at the end of the 1990 largely driven by the then Secretary MoWR and supported by international donors. The reform process is often considered to be an exercise in scaling the Board down beyond sustainable level. 4. The engineering profile in organizations changes only slowly. The focus nowadays is largely towards integrated solutions where engineering is one component and often not the most dominant one. Consequently, openness, integration, and management abilities are required but were not taught to engineers in the past. BWDB is an organization with a strong engineering tradition, but little interest in management31 and not very integrative.

29 The World Bank only recently made an attempt to be again involved in riverbank protection (Technical Feasibility Studies and Detailed Engineering Design for River Bank Improvement Program (RBIP), still under processing in 2013). 30 The ADB financed Jamuna-Meghna River Erosion Mitigation Project (loan No 1941 –BAN (SF) developed a cost effective method that has the potential of adaptation to changing river conditions and allows the protection of low value land at economically feasible rates. 31 Refer to the long and arduous process after the CAD project in defining a new path towards innovative management of large scale irrigation projects.

Page 55 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

5.2.2 Organisational capacity assessment Successful implementation of the Program requires considerable capacity of the organisations involved, notably of the BWDB, but also others. Four organizational capacities are considered crucial:

1. The capacity to plan and design the necessary interventions and infrastructures. This includes a component of macro-level planning (WARPO), planning and design of the infrastructure (BWDB) and execution of preparatory technical studies necessary for planning and design (knowledge institutions). 2. Capacity to deliver. This concerns the implementation capacity of BWDB to tender the construction of the infrastructure, supervise construction and assure adequate quality of the works. 3. Capacity to connect and coordinate. This reflects the capacity of organisations, to incorporate the interests of other sectors in the planning, design and implementation process. Important other parties include Governmental institutions (DDM, BIWTA, LGI, City Corporations, Roads and Highways and LGED) as well as beneficiaries and their organisations. 4. Capacity to innovate. For a technologically challenging Program such as the Main Rivers Flood and Bank Erosion Management Program it is vital that he main implementing organisation (BWDB) and key knowledge institutions are ready and able to learn from prior experiences and international best practice and incorporate relevant innovations in planning, design and implementation of Program activities.

5.2.3 Capacity to plan and design WARPO In practice the WARPO plays only a limited role in the water resources management sector. WARPO’s capacity for macro-level planning remains limited. Its total staff is limited in number, and predominantly from engineering disciplines. Macro-level planning requires a multi-disciplinary approach that is not yet well embedded in WARPO. The other function desired, being a “clearing house” for water resources projects is not moving forward, possibly also due to opposition from other clearing bodies, such as the MoWR or the Planning Commission.

The resulting weakness of macro-level planning constitutes a relevant gap the Program. The existing NWDP and the Outline Perspective Plan are plans of very general nature, and do not provide sufficient guidance to assure coherence in approach and interventions between different national actors and development partners in river management interventions for the main rivers. It was intended that the NWDP would be regularly updated, but this has not happened. The necessary coordination of approaches must be assured on a case by case basis between the stakeholders involved, with the risk that more opportunistic arguments play a role.

BWDB The capacity to plan and design is an integral part of BWDB’s organizational structure. It has several planning Directorates and Design Circles. Traditionally planning and design used to be mainly engineering exercises. The BWDB staff survey (see appendix 2) identified technical project planning as a considerable strength of BWDB. With the greater emphasis on the integrated approach to water resources management and the recognition of the role of GoB institutions and beneficiaries, specifically planning requires a multi-disciplinary approach and participation of other stakeholders. The capacity for this in BWDB is still limited: non-engineering disciplines such as economics, agriculture, disaster

Page 56 September 2013 Institutional and Financial Assessment management and transport are not well represented in BWDB staff at professional and senior levels and in the planning process engineering aspects still play a dominant role.

Over the past decades an increasing part of the preparatory study, planning and design work has been subcontracted to knowledge institutions such as IWM and CEGIS, or to international and national consultants. Although BWDB in all cases retained the final responsibility for planning and design, the increased outsourcing of planning and design may have eroded in-house expertise and experience. Also limited recruitment for almost a decade has inevitably reduced the in-house capacity for planning and design required to control and manage consultant's input. This does not mean that BWDB would not be capable of planning and designing the infrastructural works required under the Program, but rather that attention is required to reverse the trend of gradual erosion of planning and design skills in the organisation. At its present level, the engineering "esprit de corps" and the still considerable practical experience of BWDB staff with planning and design of water management interventions constitute an asset of BWDB that is valuable for the implementation of the Program.

Planning for water resources development is mainly project and program driven. River management planning, taking an integral perspective for river management interventions has not been done so-far. It is envisaged that with the establishment of the office of the CE River Management this function will be reinforced.

Funding for water management projects under the development budget follows standard GoB procedures. After a project is identified, planned, designed and its budget determined , a DPP is formulated and the requested budget is submitted to be included in the Annual Development Plan (ADP). DPPs have to describe the planned works in detail, also in case of DPPs for projects of a duration of 3-5 years. Changing DPPs is time consuming and adjusting the budget allocation without changing the DPP is not possible. Overall the process of planning and budget allocation is characterised by rigidity. This ill suits an often rapidly changing situation on the ground, specifically the condition of infrastructures that may deteriorate rapidly during the flood season. The consequence is that much of the time and effort of senior BWDB staff is taken by bureaucratic procedures to adjust budgets to the reality on the ground.

The six BWDB Design Circles are not specialised in any of the BWDB three domains of work (irrigation, coastal protection, and river training and flood defence). Because of the uniqueness of the main rivers in the Jamuna-Ganges-Meghna basin, designs for river management require specialised knowledge. Learning from experiences in Bangladesh as well as elsewhere in the world is necessary. To enhance this specialisation would be desirable, hence a specialised Design Circle for river management is required working closely with a River Management wing, taking care of planning and innovative development.

5.2.4 Capacity to Deliver BWDB has a proven capacity to deliver large scale projects and works. Its procedures for tendering and supervision of implementation by contractors are well established and effective albeit sometimes cumbersome. Nevertheless, in the BWDB staff survey the management capacity and management approach of BWDB was identified as an area of concern, notably also by BWDB senior management.

Three main challenges remain, however. 1. Probably the major challenge for BWDB is that the organisation is understaffed. Because recruitment of engineers was limited or even stopped for several years the numbers of engineering staff present is below approved levels, and below what the organization requires

Page 57 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

for the execution of its responsibilities. Even if substantial recruitment starts immediately new staff must first gain the necessary experience during a few years before they can be fully operational. It can therefore be envisaged that the serious shortage of (mainly engineering) staff will not be remedied in the medium term. Currently the shortfall is compensated by closing gaps with staff from divisions that have no or little work. This is an appropriate mechanism to overcome temporary staff shortages. 2. Another major challenge is adequate quality control of the works implemented. In principle contractors are required to have their own quality assurance procedures, but adequate supervision of the quality of works by BWDB remains necessary. Structures and procedures for quality control are still inadequate. Problems related to quality assurance feed into the next challenge. 3. Transparency of transactions between the main contracting officer (usually the XEN) and contractors is inadequate. XEN’s are often subjected to pressure from local politicians or other powerful interests, to award tenders to their favoured parties. Bids are often below what is realistic, and the difference is made up by low quality of the works. 4. Management of BWDB's infrastructural assets and effective allocation of funds for maintenance is hampered by the absence of adequate management information.

Especially the first two challenges imply that for the medium-long term (10 years time horizon) BWDB will require substantial consultancy support to implement major river management projects. Also, although BWDB has managed social risks of previous ADB supported projects, the capacity to execute the necessary analysis and interventions is unlikely to be structurally embedded in the organisation.

5.2.5 Financial capacity BWDB has a track record of implementing financially important infrastructure projects. The investment in riverbank protection peaked at the end of the 1990s (Figure 5-1), when around BDT 7.8 billion where spent for riverbank protection. Prominent examples are the construction of FAP1 works. In total US$ 192 were spent from 1996 until 1999 out of which 143.9 were for the construction of river training works (World Bank, 2002). The average annual expenditure for two construction sites was around US$ 25 million in 1995 cost. In comparison the ADB financed JMREMP spent on average US$ 7 million per year with a peak expenditure of US$ 14 million during the first decade of the second millennium. In both cases two construction sites were covered, but the arrangements were different: FAP 1 was implemented through foreign contractors and consultants in the role of the Engineer as per FIDIC. JMREMP was implemented by BWDB with two subdivisions under a project director and the consultant in an advisory role. JMREMP was initially a pilot project, indicating a careful approach in order to avoid costly failures.

Page 58 September 2013 Institutional and Financial Assessment

8000 7000 GoB 6000 Donor

5000 Total 4000 3000

Million BDT 2000 1000 0 1970-71 1971-72 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00

Period

Figure 5-1 BWDB expenditure in riverbank protection (Halcrow, 2002) The emergency disaster damage rehabilitation sector project spent BDT 1828 million (US$ 26 million) during the fiscal year 2009/10.

The present implementation capacity of BWDB is in the order of US$ 25 to 35 million per year under one project: (i) In JMREMP two subproject offices and one project management office completed works for US$ 14 million towards the end, demonstrating a peak performance. At that time largely work contracts were ongoing. Extrapolating this to five sites, results in around US$ 30 million per year. (ii) The JMREMP procurement of goods (materials) and works was split into two contract packages. Both costing about 50% of the total works. As a consequence, simple large procurement contracts take place at the beginning of the works. For every 1 km of riverbank protection, around US$ 1.25 million worth of geo-textile bags will be required. Consequently, 10 to 15 km of protection will amount to US$ 13 to 20 million. (iii) One division can build 3 to 5 km of protection in one year. At kilometer cost of US$ 2.5 million out of which 50% is spent on works, this translates into around US$ 4 to 6.5 million per year per division.

The proposed program intends to invest in similar order than JMREMP per site. Table 5-1 details the expenditure per tranche and site (refer to Section 14 for the cost breakdown).

Table 5-1: Summary financial requirements for program implementation Tranche-1 Tranche-2 Tranche-3 Geobag procurement 15 km 16 km 24 km US$ 20 million US$ 20 million US$ 30 million Riverbank protection work 15 km below water, 16 km below water, 24 km 7 km above water 23 km above water US$ 12 million US$ 28 million US$ 30 million Embankment US$ 15 million US$ 11 million US$ 16 million Total work US$ 47 million US$ 59 million US$ 76 million Number of sites 5 6 6 Average annual work US$ 16 million US$ 20 million US$ 25 million per site 3 million 3.5 million 4 million Note: one tranche = 3 years

Page 59 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

5.2.6 Capacity to Connect and Coordinate From the BWDB staff survey, external factors are perceived to be key challenges for BWDB, indicating problems to connect with other important GoB and external actors. BWDB has long been an organization that worked by its own rules, the type of its work dictated by natural conditions, mainly the hydrological situation. Although BWDB officers are invited to the UDCC and DDCC meetings, in practice it appears that sometimes they do not attend these meetings or are represented by officers of junior rank. Geographically the BWDB divisions do not always correspond to administrative boundaries.

Increasingly, however, BWDB now has to work as part of a larger effort aimed at integrated development, where other considerations that hydrology and engineering play a considerable, sometimes dominant role. This requires building interrelationships with a wider variety of stakeholders, both GoB institutions as well as directly with beneficiaries and their representatives.

GoB institutions BWDB has Memoranda of understanding with a variety of other GoB institutions, including BIWTA, DoA, DoF, R&H, LGED etc. These MoU are concluded at the national level and cover general interrelationships between the involved organizations. In some cases MoU’s are concluded at project level and describe more specific responsibilities of the organizations. The system of MoU's generally provides an adequate basis for coordination of activities at field level.

Beneficiaries During the last decade of the 20th century the pressure to become more people oriented increased. It became explicitly visible during the period of the studies for the Flood Action Plan (FAP) when a fierce argument raged between the FAP coordinating organisation (FPCO) and national NGOs, with development partners also taking part, although mutedly, in the debate.

This debate ultimately resulted in the Guidelines for Participatory Water Resources Management that were formally adopted by BWDB in 2000, after much pressure from national pressure groups and international development partners. Application of the GPWRM and the basic principles of IWRM on which these guidelines are based, however, is mainly limited to FCDI projects, and then often to projects supported by development partners. In other work of BWDB its application remains limited. In practice the organisation finds it difficult to communicate adequately with beneficiaries and their representatives.

5.2.7 Capacity to Innovate Very few, if any, river system in the world are comparable to the Ganges - Bramaputra – Meghna (GBM) river system in terms of the complexity of its hydrological and geo-morphological dynamics. This constitutes a challenge for engineering interventions for flood and erosion risk management. This implies that constant learning from experiences in Bangladesh itself, but also from experiences in other delta areas, is required, leading to regular adaptation/innovation of approaches and interventions to be undertaken. The capacity to innovate of the main implementing agency, BWDB, is therefore a critical success factor for the Program. The need to learn is for example demonstrated by engineers from India to come to understand what Bangladesh has achieved and to acknowledge that Bangladesh is ahead of India (according to the Chief Minister of Assam during a public workshop).

There is an increasing body of knowledge about hydrological, geo-morphological and socio-economic aspects relevant for flood and erosion risk management of the main rivers. Much of this knowledge is located in the different knowledge institutions (CEGIS, IWM, BUET) and private consultants outside the

Page 60 September 2013 Institutional and Financial Assessment

BWDB organisation. In practice the institutional relationships with these knowledge institutions and with private sector consultants makes access by BWDB to this knowledge expensive, and readily available. Also the capacity and in-house skills of BWDB for meaningful processing and interpretation of this highly specialist knowledge is limited. These factors combined make that the access of BWDB to up- to-date knowledge for its planning and design exercises is reduced. This affects the planning and design work of BWDB.

Past experiences show that BWDB has been able, albeit cautiously, to introduce engineering innovations in planning, design and implementation of interventions. A relevant example is the introduction of geo-textile bags for erosion control by the JMREMP project. Other technical design innovations appear to take considerable time, for example the introduction of improved sluice gates in coastal (saline) areas.

In terms of adoption of ICT technology, BWDB has a computerised bookkeeping and accounting system that is, however, not up to date and sensitive to the risk of breakdown (see Appendix 3). There is no network that connects the RAC's and other units to the central accounts office. Communication is done by postal mailing of pen-drives with information or e-mailing attachments. BWDB does not have a comprehensive and fully operational computerised MIS systems to manage its stocks and assets (infrastructural works) in the country. Monitoring of the condition of water resources management infrastructure is done using work practices similar to decades ago. As a consequence budgeting for maintenance is inefficient, one factor that contributes to continued deterioration of infrastructures until major rehabilitation is required, where timely repairs could have prevented costly rehabilitation. In terms of application of ICT technology, BWDB has not made any significant steps to adopt up-to-date technology and lags considerably. The scope for innovation in this field is considerable.

With regard to the overall approach to its work, following the principles of IWRM, the attitude of BWDB is changing slowly. The legitimate interests of other GoB institutions and beneficiaries are being recognised, but in day-to-day practice coordination with other stakeholders and understanding and considering their interests in planning, design and implementation is taking place at a limited scale.

There are a number of other factors that affect the acquisition of knowledge within BWDB: • As a matter of policy, staff is transferred regularly between the different fields of activity of the BWDB. It is not uncommon that engineers work in hydrological research, in the field in an FCDI scheme, then in an administrative function at headquarters, and subsequently in a river management function. This practice of staff rotation precludes the build-up of expertise and experience in a particular engineering field. • The research and study functions that were previously mostly part of BWDB are now placed outside the BWDB, with RRI, CEGIS, IWM and increasingly also with private consultants. Research and study inherently imply the acquisition of knowledge. • Monitoring and evaluation as procedures to systematise knowledge based on experiences are inadequate. Internal information management is largely absent.

Overall it is concluded that BWDB is an organisation that is cautious when it comes to implementing potentially relevant innovations and adopting these innovations. One explanation for this could be the fact that functions such as the execution of studies, of research and overall, macro-level planning have been assigned to organisations outside BWDB (notably WARPO, IWM and CEGIS). In addition parts of the planning and design work is increasingly subcontracted to national and international consultants. Also the approval process for new interventions or techniques is cumbersome, reflecting a risk-aversive

Page 61 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program organisational culture. This has reduced BWDB to a straightforward implementing organisation and located much of the capacity for “reflection” outside the organisation. In the present circumstances the interrelationships between BWDB and the three organizations mentioned do not allow an easy and fruitful interaction that would stimulate BWDB to adopt innovative practices. IWM and CEGIS in practice operate as consultants (as do private consultants). The capacity of WARPO for macro-level planning is not sufficiently developed to be of interest for BWDB.

5.3 Organisational Capacity: Disaster Management

5.3.1 Past performance Experience of an earlier project piloted in 2009-2010 to develop effective early warning dissemination system of BWDB for flash flood risk reduction in Kalaria-Gabragate region in Netrokona Upazilla in Netrokona district32 had a number of critical observations, of which the relevant ones are highlighted below:

• Most people did not have access to early warning before floods, and they did not where to get it from. • Many people came to know the warnings from the neighbors, but were confused about their authenticity. • The community did not understand the true meaning of the warnings, as they were not disseminated in simple language with local dialect. • People relied on indigenous knowledge about early warning. • Warnings were not disseminated well ahead of the floods. • Authenticity of the warnings to the community depended on dissemination by respected community people i.e. Imams of mosques, teachers, social workers, volunteers, UP members, etc. • Flood marker posts were not needed to set up a various points indicating danger levels. • Colors fags were should have been used to indicate rise and fall of water levels. • The mosques microphone could be used to disseminate early warnings. • Skill training of the volunteers and community people were needed for flood risk management at household and community levels. 5.3.2 Capacity to plan and design Until recently the main emphasis in disaster management was on relief and rehabilitation after a disaster had occurred. Preparing disaster plans and disaster preparation and prevention activities were given lower priority. The merger of the DMB and DRR initiates a drive towards enhanced integration of disaster prevention and preparation and post disaster activities.

As far as community-based disaster management at the village level is concerned, in some areas Village Disaster Preparedness Committees (VDPCs) exist under Union DMC. They were constituted by NGOs under disaster management programs funded by donor agencies during and after disasters. Most of these VDPCs have now become non-functional due to lack of follow up and support of the NGOs. Only a handful have some informal link with the Union Council during normal time.

5.3.3 Capacity to deliver Gaps in the organisational capacity for Disaster Management relevant for the Program are mainly at the Upazila and Union level, and that with respect to preparedness and not relief and rehabilitation. These

32 See the report entitled ‘Strengthening Community Based Early Warning Dissemination System for Flash Floods in Kaliara Gabragati Union, Netrokona: Final Report’, BDPC, November 2010.

Page 62 September 2013 Institutional and Financial Assessment gaps concern the continued motivation and alertness of these committees to let them play their assigned role in disaster prevention and preparedness, as well as increased awareness of the practical steps to be taken. Some equipment may have to be provided to allow the committees to play their envisaged role.

Upazila and Union DMCs are mainly active during the post disaster recovery period for allocation and distribution of Relief and Rehabilitation goods, which are, often, controlled by the Chairmen and their supporters. After a disaster has occurred, different non-government agencies (NGOs) and individuals distribute R&R support on their own, without a mechanism to ensure efficiency in targeting and distribution of Relief and Rehabilitation support. This is also true for local government administrations that implement R&R activities using their own mechanism and channels without referring to DDMC and UzDMC based on the directives DC for district and the Upazila Executive Officer for Upazila.

Despite the above, the need to have functional DMCs at the local level is obvious. There must always be a focal point or coordinating entity dealing with the disaster issues, not only during disasters but also, more importantly, to enhance preparedness throughout the year.

The capacity of DDM for the execution of the activities envisaged in the Program is adequate. DDM is substantially supported by the World Bank funded Emergency Cyclone Repair and Rehabilitation Project (ECRRP) and the UNDP executed Comprehensive Disaster Management Program (CDMP).

5.3.4 Capacity to Connect and Coordinate The mechanisms for coordination between these two sectors are well described, but do not yet fully function in practice. The explicit intention of the Standing Order on Disaster is to create a framework to allow for effective coordination between disaster management and (among others) the water resources management sector. Despite being detailed in the requirements for the water resources sector (see SOD and box 7) it appears that in practice the coordination between these two sectors is limited. Figure 5-2 presents the expected key interrelationships between the two sectors.

In the figure a mechanism for coordination is required for each arrow that crosses the line between the water management sector and the disaster management sector. Such a coordination mechanism can be at the national level or at the local level. For many of the required interactions between water management and disaster management the necessary coordination mechanisms exist on paper, but their role in practice is less effective.

However, to activate DMCs there is a need to link the committees with other related development activities throughout the year. This is because disaster is not a regular phenomenon based on which it is not always easy to demonstrate DMCs’ important role in the local context. In fact, developing single issue-based separate structures/mechanism is not very effective in terms of delivering intended outputs/services. In practice, already now, disaster issues are discussed at the monthly district development coordination meeting chaired by the Deputy Commissioner (DC) followed by any actions needed. In this meeting a BWDB representative may be present.

5.3.5 Capacity to innovate The DDM is currently reorganising and, as mentioned earlier, this includes a paradigm shift from the emphasis on relief and rehabilitation towards prevention and preparedness. This change is in process, and concrete results are required to assess the capacity of the organisations involved in disaster management to adopt and implement this innovation.

Page 63 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Prevention Water management Disaster management

Flood plain zoning Local level risk mapping

Building & development controls Local level risk minimisation on embankments strategies

Emergency works

Strengthening flood embankments

Preparedness

Riverbank erosion prediction District and local level disaster plans with village level delineation

Flooding scenarios

DMIC

Strategic stockpiles of material District and local Resettlement for riverbank protection level preparedness

Raised construction Flood education Flood forecasting and warning of vital infrastructure

Figure 5-2: Key interrelationships between Water Resources Management and Disaster Management

5.4 MFF Institutional Requirements For the MFF mode of financing a number of specific requirements apply, some relevant for institutional aspects of the program (Table 5-2)

Page 64 September 2013 Institutional and Financial Assessment

Table 5-2: Key Institutional Requirements for Multi-tranche Financing Facility Design Description of institutional requirements Summary of findings and reference to report section A. Documentation 2 All the following constituents are present and well • The Government of Bangladesh has developed an defined: adequate framework of Policies and Strategic a) Sector strategy and associated road map Plans for the water sector. Operational plans are b) Clear strategic context justifying ADB‘s usually formulated in the form of intervention program/project plans. c) A policy framework (if unsatisfactory or not • For disaster management an adequate policy, available, then must include other modalities for national plan and operational arrangements policy dialogue and development) (Standing Order on Disaster) are in existence. d) Detailed investment program/plan strongly • New position of CE River Management being owned by the client created. This is a core element of the BWDB e) Financing plan for the MFF mandate and strongly supported by BWDB and f) Facility level undertakings that capture the basic MoWR. principles and criteria under which the financing will • Present feasibility study presents an outline be made available investment plan for a major section of the main rivers of Bangladesh. 3 Good staff judgment to back the decisions • BWDB is the mandated organisation to regarding: implement river Flood and Erosion control a) Whether or not the EA or IA is suitable to interventions. implement an MFF • Program requires coordination with disaster b) The level of implementation complexity that can management institutions at central and local level arise from a project involving multiple EAs and IAs as well as with Local Government Institutions. For can be managed. coordination with both groups of institutions (Note: consider EA/IA capacity, past implementation adequate coordination mechanisms exist. records, policy and institutional mandate of EA/IA) 4 Consistency of MFF support with priorities outlined Interventions for river management are explicitly in the country partnership strategy (CPS) at the time mentioned in the Bangladesh CPS. of approvals of MFF and each Tranche 5 Checklist signed by project team leader, director, and director general to accompany departmental request for circulating MFF‘s RRP to the Board B MFF Structuring (towards maximizing impact) 9 MFF size should be justified within the context of: • Upgrading the necessary infrastructure requires a) client‘s financing needs and readiness of the considerable funding. investments • BWDB has the technical capacity to implement b) technical, economic, and administrative efficiency the program, some organisational capacity factors strengthening (technical, mainly managerial and c) EA/IA absorptive capacity administrative) is required to enhance BWDB d) ADB‘s strategic intervention in the sector capacity to implement the program. (Note: this contributes to maximizing development • Investment balances ADB's investment in FCDI in effectiveness) Bangladesh. 12 Design and Monitoring Frameworks (DMFs) • The design framework of the program included in a) DMF for entire MFF should track the direction of the present document present the required the road map, policy framework, safeguards elements. framework, financing plan, broad investment • The monitoring framework presented in section... program, inputs, outcomes, and results presents the required elements at input, output b) DMF for each Tranche should focus on project and outcome levels. level outcomes, outputs and inputs c) Need for consistency and clear linkages between the two Source: Adapted from ADB Independent Evaluation Department ADB December 2012, Real-Time Evaluation Study of the Multi- tranche Financing Facility. Special Evaluation Study, p. 78-79

Page 65 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

6 Implementation arrangements

6.1 Alternative Project Management Arrangements BWDB is in the process to establish the Office of the Chief Engineer River Management (CE-RM) in recognition of the importance of the management of the main river system for overall water management in Bangladesh (see 3.1.5). The office of the CE-RM will be headed by a Chief Engineer or Additional Chief Engineer and will be staffed with 2 SE's, 4 XEN's, 2 SDE's, 5 AE's and 12 other staff.

It was discussed and agreed with BWDB in January 2013 that this new office shall be placed under the ADG Planning. The reason is that river management is a new task, somewhat mediating between the zonal chief engineers and the ADG East and West. At this moment riverbank protection is implemented by zonal Chief Engineers to address urgent erosion problems mostly of important infrastructure along the boundaries of their zones. With the focus on future stabilization and reduction of width, the issue of influencing the other bank will become increasingly important, shifting the focus away from riverbank protection towards river management or river training. As such there is a need for a mediating office, balancing the interests of the two banks and the two zones tasks to do work there. The Chief Planning (Mr. Zahir) pointedly characterized the problem for the specifically narrow river reach downstream of Chandpur. He explained that the riverbank protection work alongside the eastern bank at Haimchar with a length of around 15 km now causes erosion at the opposite bank at Sureswar. In other works the riverbank protection built by the Chief Engineer causes problems for the Chief Engineer Barisal. This type of problem is what defines the role of a future Chief Engineer River Management: to study and plan interventions and to mediate between and balance the different interests at both banks and mostly between the ADGs East and West. As such the CE RM, with a strong planning focus is best placed under the ADG Planning.

The office of the CE RM is presently under approval as part of BWDB’s need-based setup. It is not clear when this will happen. Consequently, two issues need to be addressed at this moment: (i) where will the PMO be located and (ii) how will PMO and future RM office interact.

(i) It is evident that the PMO shall be under the ADG Planning for the same reasons as the office of the CE RM shall be under the ADG Planning. (ii) In response to the uncertainties related to the approval of the CE RM but also in order to strengthen his position from the start, the PD shall be taking the role of CE RM initially as well. This means his role starts with limited works along the first reaches of the main rivers under a concrete program to be stabilized and potentially narrowed in places. The other reaches are not considered under any program yet. After some years, when progressively other reaches are added to his work, the CE RM shall head a number of PD for different reaches, potentially financed by different donors, such as World Bank for the reach Teesta to Jamuna Bridge and ADB for the reach Jamuna Bridge to Chandpur.

To implement the Program several options for the distribution of responsibilities between the PMO and the different offices of the BWDB exist. This section describes these options and identifies the advantages and disadvantages of each.

Overall three options exist. These are summarised in the following tables.

Page 66 September 2013 Institutional and Financial Assessment

Table 6-1: Options for distribution of responsibilities between TA-team, PMO and BWDB Option Key characteristics 1 Integrated PMO (Figure 6-1)

The PMO is part of and cooperates closely with the existing BWDB setup, and implements through main divisional offices, following standard BWDB procedures.

The main contact person at the divisional level is the SE concerned, who plans the work of the XEN as the main implementing field engineer. By involving the SE, competition between the work for the MRP and the other tasks of the XEN is avoided. The PMO (including consultants) determines the planning aspects and remains a key stakeholder in critical decision making moments during implementation, together with the XEN of the division concerned. The PMO specifically leads all planning and design of the works, preparation of the tender documents, bid evaluation, supervision and quality control and verification of the bills before payment. The divisional XENs remain responsible for implementing the work through contractors.

2 Detached PMO - JMREMP solution (Figure 6-2)

This second option presents a more pronounced role for the PMO. The responsibility for planning and design, preparation of tender documents, bid evaluation, supervision and quality control and verification of bills is mainly with the PMO and attached SIOs moving with the work sites along the riverbanks. There is no role for the divisional XENs The contractor will be contracted and supervised directly by the PMO. This structure has been used in the JMREMP project and is used in many other externally supported BWDB projects, but poses problems in terms of administrative control and disappears after a project is implemented.

3 Consulting option (historic solution with the Consultant in the Role of “the Engineer”)

This option places more responsibilities with the TA team, at the expense of the divisional XEN and the BWDB PMO staff. The contractor will be contracted by the consulting team in the overall responsible role of running the program or project.

Page 67 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Figure 6-1: Integrated PMO

Page 68 September 2013 Institutional and Financial Assessment

Figure 6-2: Detached PMO

Page 69 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Each of these options has its specific advantages and disadvantages. These can be summarised as follows:

Table 6-2: Advantages and disadvantages of different options Option 1 Integrated PMO Option 2 Detached PMO Option 3 Consulting option Ownership by existing BWDB offices, Direct management control by Direct management control by positive response for future PMO over all steps in Program consulting team over all steps of monitoring and inclusion in O&M execution work implementation and budgets procurement of goods. Makes maximum use of strengths of Streamlined procedures for Streamlined procedures for BWDB organisation: implementation tendering and contracting speed tendering and contracting speed

capacity, planning & design skills up Program execution. up Program execution. Work on embankments remains Effective quality control within exclusive ownership of the concerned zone Advantages Makes most efficient use of overall staff capacity of BWDB Understaffed field divisions will be brought to full strength from divisions without work, which means that dedicated staff will be available for the specific work of the program Program implementation must use Limited ownership of Program Limited sense of ownership of sometimes lengthy GoB/BWDB output by BWDB field divisions. infrastructure by any BWDB procedures This makes transfer of office. This makes transfer of infrastructure to BWDB after infrastructure to BWDB after completion and future completion and future monitoring and O&M monitoring and O&M

problematic problematic Before formalized role as special Infringement on zonal CEs’ Requires very substantial O&M division, Kaitola division might work, especially embankments consulting resources. suffer from little work Shifting need for establishing Outdate in ADB’s approach to Disadvantages SIO offices wherever required project/program management (with a risk of delaying critical initial implementation) Requires close coordination between Requires that considerable staff O&M office and PMO resources are transferred to PMO, at the expense of other BWDB units/ tasks

Overall, option 1 shows the most positive characteristics.

6.2 Proposed Implementation Arrangements

6.2.1 Steering and Guidance of Executing and Implementing Agencies The program is suggested to be implemented under the lead of BWDB (executing agency) with close relationships to DDM (implementing agency). Other associated organizations are WARPO, LGED and BIWTA. The participating organizations require clearly defined procedures of when, where, and how to coordinate their activities. To this end BWDB has a number of Memoranda of Understanding (MoU) in place, which will be suitably updated for the purpose of the program during the first year of the program.

Page 70 September 2013 Institutional and Financial Assessment

In line with government principles program activities are regularly reviewed and discussed through annual inter-ministerial steering committee meetings. Given the complexities of the program, a Panel of Experts is expected to provide guidance related to key questions:

(i) River morphology, engineering, and stabilization (ii) Flood Risk Management at regional and community level (iii) Institutional and capacity development at regional and community level

6.2.2 Integrated Project Management Organization (PMO) The PMO will be integrated into the administrative setup of BWDB and placed at a high level given the importance and relevance of the program. The key features are:

(i) Headed by an Additional Chief Engineer, similar in rank as the zonal Chief Engineers and supported by two Superintending Engineers (ii) Initially identical and later closely associated with the CE River Management, once the post gets approved. This is a vital element to activate the new river management wing and to institutionalize the broad river stabilization approach. (iii) Supported by an individual design office, exclusively dealing with river stabilization measures. (iv) Conducting river management activities of larger national importance, such as procuring materials for works and strategic stockpiling for emergencies, and guiding char reclamation activities (v) Implementing work through existing zonal division. These divisions already build embankments and riverbank protection, and will be strengthened in terms of staff during the implementation of the works.

Figure 6-3 depicts the program management principles agreed during discussion with the BWDB management, namely ADG and Chief Planning in early 2013.

6.2.3 Implementation arrangements DDM The Community based Disaster Risk Management component of the Program will be implemented under the guidance and responsibility of DDM, the Implementing Agency for this component. DDM will appoint a Project Director of senior rank to oversee and coordinate all Program activities. The DDM Project Director reports directly to the BWDB Project Director. To implement the envisaged activities DDM will conclude a Program specific MoU with BWDB that will cover: (i) a description of the activities to be implemented, (ii) provision for the financial arrangements to fund the DDM supervised activities (iii) technical support to DDM and (iv) reporting requirements. Procurement of services of NGOs and other service providers for the CbDRM components will be done by the PMO, upon recommendation of the PD-DDM.

6.2.4 Advisory Support Notwithstanding the flexible allocation of staff (see 5.2.4), outside support is required in two technical areas: (i) construction advice on a technical and procurement level, and (ii) quality control related to day to day spot checking and underwater monitoring as well as in the institutional (capacity building see chapter 8) and social domains. This arrangement closely involves BWDB staff in responsible position, with advisory support through consultants, as opposed to the 1990 approach of fielding international contractors supervised by international consultants.

Page 71 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

The program will be supported by consultants and NGOs at different level. This addresses the program management requirements of ADB and supports BWDB during the current period of staff shortage, specifically of junior staff.

(i) An Institutional Strengthening and Project Management Consultant will provide the main support in a number of different areas. The financing and potential scope of work was still under discussion at the time of writing this report, however the core components are: a. Institutional support and project management during each tranche, including i. Capacity development on river training techniques and modern embankment construction ii. River survey and data management, including advice on data evaluation iii. Flood hazard and risk mapping for larger areas iv. MIS building and implementation v. Construction management of large contracts in accordance with FIDIC vi. Construction quality assurance / quality control measures through independent, outside inspectors at each construction site b. Prepare feasibility assessment and detailed designs for Tranche-2 and 3 work during tranche 1 and 2. a. Prepare a River Stabilization Plan during the first two years of tranche 1, covering the Brahmaputra System from the Indian Boarder through Jamuna and Padma into the Lower Meghna estuary. b. Plan, design and conduct recovery activities of lost land on a pilot basis (“building with nature”). (ii) A resettlement NGO will prepare and supervise the implementation of the resettlement plans at the different subprojects during different tranches. (iii) The work of the resettlement NGO will be reviewed by an independent monitor. (iv) NGOs with disaster management experience will implement the community-based activities focussing on flood risk management but also incorporating dry season productive activities. (v) Environmental assessment and planning, similar to resettlement planning and implementation will be conducted by an specialist organization.

6.2.5 Management Information and Reporting The program requires data management at different levels for different purposes:

(i) Baseline data for benefit assessment (ii) Project management data for progress documentation (iii) Asset information for BWDB operation, namely maintenance

A suitable MIS system for above three elements was outlined for AIFREMIP (Individual Consultants, 2012). Component (iii) has been developed further for the purpose of BWDB and forms part of the institutional report. The reporting requirements form also part of ADB’s project implementation memorandum.

Page 72 September 2013 Institutional and Financial Assessment

Figure 6-3 : Organizational chart for BWDB program management.

Page 73 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

7 Lessons Learned Experience with riverbank protection in Bangladesh for main rivers has been gained mainly in the following four projects:

(i) JMREMP, Bangladesh (2003 – 2011) (ii) STIFPP II, Bangladesh (2006 – 2012) (iii) SWAIWRM, Bangladesh (2006 – 2015)

From these projects the following lessons concerning institutional and organizational aspects have been learned. Another main project in the water sector in the World Bank supported Water Management Improvement Project. This project has had a slow start and is only now gaining momentum. The main institutional activities are in the draft proposal phase, and it is too early to draw lessons from this project. It is, however, recommended that during the inception phase of the Program close contacts are established with WMIP to come to coordinated interventions in the field of institutional strengthening and capacity building.

The Enabling Environment Concerning the enabling environment, the main lesson learned from implementation projects in Bangladesh is that policies and the legislative framework do not influence the day-to-day operations much. Donor supported projects and programs commonly tie into the government strategy, such as five-year plans. Donor financing provides additional financial flexibility especially in response to the vagaries of the main rivers, which the government system does not provide (see framework DPP with block allocation of funds).

Organizational capacity Organizational capacity is an important factor for successful implementation. Experience with above projects demonstrates that frequent changes in staff are detrimental to project progress. This is directly felt as new staff needs time to understand the often complex project requirements. On a larger scale new staff from different disciplines requires longer to learn the background and skills necessary to perform the job. JMREMP has good experience with the unique overlap of project directors in 2007 in order to allow a smooth transition and handing over process.

Capacity development is easier when relevant content is provided, ideally on-the-job. The lesson learned from JMREMP is that high level capacity development, in this case through the widely recognized BUET could attract a number of practitioners for a specialist course in riverbank protection. Also non-technical content needs to be made directly relevant. A successful example is environmental training for BWDB staff and contractors involved in contract management. Overseas study tours always attract wide interest and have proved to be generally worthwhile (JMREMP).

Incorporation in BWDB regular structures BWDB has broad experience in implementing projects of different nature. JMREMP was successfully implemented because it was closely interwoven with the regular services of BWDB, among others the divisions for implementation and the design circles for approving designs. This resulted in a considerable sense of ownership of the results achieved by JMREMP by BWDB at large and the monitoring and O&M services that will be responsible for management and maintenance of the infrastructures after completion of the project. For cooperation with the BWDB field divisions the main contact point was the SE, who then planned the work of the XEN responsible for implementation taking into consideration also the other responsibilities of the XEN. Choosing the SE as the main contact point

Page 74 September 2013 Institutional and Financial Assessment between the PMO and the BWDB divisions avoided the situation that the XEN responsible for the implementation of the works would have two "masters" (the divisional SE and the PMO), and thus avoided competition between the PMO and the SE for the capacity of the XEN and his staff. For site selection, planning and design close cooperation was sought with the BWDB offices concerned (Monitoring, Planning and Design respectively).

Organizing adequate quality control Overall quality control is one of the major concerns for BWDB activities. In principle, contractors are required to assure quality of their work, but quality control by BWDB staff is required. In JMREMP quality control during construction was assured by the SDE and his work assistants by being regularly present at the work site. In addition BWDB PMO staff and junior expatriate engineers/consulting staff were almost continuously present at the work site. In JMREMP the combination of quality assurance by the regular BWDB field staff and PMO staff/consultants proved to be effective. The presence of international construction supervising engineers proved to be essential to ensure quality of the construction works.

In some FCDI projects (for example IPSWAM) local residents/beneficiaries were trained as construction monitors. Because they are continuously present at the work site and have a direct interest in good quality of the work they closely watch the work of contractors. If they suspect any irregularities they report this to BWDB division staff and the PMO who will then investigate. In FCDI projects this arrangement was found to be very effective.

Support from a Panel of Experts to promote innovation JMREMP has substantially benefitted from the Panel of Experts that it established. This PoE supported the PMO, acted as a reference for discussion about complex technical problems and contributed creative ideas about new techniques and approaches to be introduced and tested. Moreover, because of the prestige of the members of the PoE they were instrumental in convincing BWDB to allow tests with new techniques and designs.

Community based risk management Community-based flood risk management is a tool to bring BWDB and local communities closer, as demonstrated by the following quote from the first BDPC training report in 2003:

“The implementation of disaster preparedness and management plans has bridged the gap between the communities and the Water Development Board to a large extent. Peoples’ ownership in the maintenance of embankments has been initiated through the Disaster Preparedness and Management Plan implementation process. We need to build on this relationship and opportunity further in order to ensure sustainability of the projects and their impacts.” The involved executive engineer observed: “It is indeed such a pleasure to be among so many people of the locality and watch them really enjoy this event (the International Disaster Preparedness Day) organized by BWDB, the same organization to which many groups and individuals from the locality have lodged numerous complaints and petitions.”

Difficult to sustain interest from local level Disaster Management Committees Various experiences in Bangladesh demonstrate that it is difficult to maintain the active interest of local level Disaster Management Committees during the years that no disaster occurs. This is considered to be partially due to the usually exclusive focus on disasters and relief, and also partially due to the often politicised nature of the Disaster Management Committees.

Lessons learned concerning Community-based Disaster Risk Management from earlier experiences are:

Page 75 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

• Recognize the people at risk as the main actors in implementing early warning system. • Integrate indigenous knowledge into the system to ensure that community people easily understand and respond to the warnings quickly. • The warning dissemination system must be appropriate to the local context so that community people could easily access and understand the information. • Create ‘change agents’ (community volunteers) to perform different activities based on information gathered at correct sources. • Organize training programs for the ‘change agents’ so that they can efficiently conduct early warning dissemination in the community covering the following topics: • Provide some basic equipment for the ‘change agents’, such as, hand microphones, dresses including helmets and shoes etc.

Page 76 September 2013 Institutional and Financial Assessment

8 Capacity Development On the basis of the analysis in the previous chapter, support activities are identified that will help the executing agency (BWDB) and the implementing agency (DDM) to adequately execute the Program. These development support interventions will address the constraints observed of the four capacities described earlier. Interventions are of a different nature: support to structural changes of the organisations concerned, enhancement of technical skills of staff involved in the Program, enhancement of the knowledge base and updating plans and finally strengthening working procedures. An overview of the capacity development interventions is presented in the following table priorities are defined for capacity development. Table 8-1 presents an overview of the main elements of the capacity development interventions. In the remainder of this chapter the development support activities are further elaborated.

8.1 Capacity Development BWDB 8.1.1 Establishment of a strong liaison between BWDB, the Meteorological Office and DDM In Bangladesh the system for flood forecasting and flood warning exists in principle, but it operation in practice is often hampered by inadequate or delayed data transfer and data incompatibility. MRP will support the three main organisations concerned to establish a system with strong mutual linkages to assure: • Timely transfer of data from BWDB and Met Office to DDM • Adequate interpretation of the data • Rapid dissemination of information to communities when needed.

For this purpose a team composed of an international institutional specialist and a national disaster management specialist will formulate a detailed plan during the first year of tranche-1 implementation. Envisaged support includes training and material support for (mainly) software upgrades and adjustment.

MRP support required Technical Assistance Material/financial support Other support • Int'l Institutional Specialist • Strengthen ICT system (software • Nat'l Disaster Management Specialist and hardware): US$ 50,000) • ICT Specialist

8.1.2 Assign responsibility for design work for Main River Management to dedicated Design Circle At present no formal arrangement exists for specialisation of the work of the six design circles. Assigning the responsibility for all design work for main river interventions to one dedicated Design Circle will allow the staff of this Design Circle to specialise in the design of these often complex and specific structures. This process of specialisation will be supported by the participation of staff of this dedicated Design Circle in the two envisaged international exposure visits and specialised training.

Page 77 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Table 8-1: Overview of capacity development interventions BWDB Strengthening Structural interventions Skill enhancement Plans and studies Management tools of and procedures Enabling Updates of Framework National Water Policy and National Water Management Plan Institutional Establish strong liaison Framework between BWDB, Met Office and DDM to strengthen flood forecasting and warning Capacity to Assign responsibility for • Strategic planning Hydrological, • Develop guideline plan and design work for • River training techniques morphological and for River design management of main • Survey and evaluation other technical Management rivers to dedicated studies Planning design circle • Establish an Asset Monitoring MIS

Capacity to • Construction management • Promote the deliver • Under water investigation inclusion of block • River engineering allocations in DDP

Establishment of office • River bank geo-technology budgets and ADP of Chief Engineer River • River bank protection allocations for Management • Leadership river management • Project management interventions Capacity to • Resettlement connect • Environmental aspects and cooperate Organizational capacity Capacity to • Establish Panel of • Computer use innovate Experts composed • Technology transfer of renown national and international river management experts • Establishment of Ward Disaster Management Committees (WDMC)

The structural change in the responsibilities of a Design Circle is the responsibility of BWDB management and will not require any contribution from the side of ADB. The envisaged support to the dedicated Design Circle is included under 7.1.4 and 7.2.

8.1.3 Establishment of the Office of the Chief Engineer River Management BWDB is in the process to establish the office of the Chief Engineer River Management in recognition of the importance of management of the main rivers for overall water management in Bangladesh. The establishment of the office of the CE-RM is the responsibility of BWDB management and will not require any contribution from the side of ADB. The envisaged support to the office of the CE-RM is included under 7.1.4 and 7.1.5.

Page 78 September 2013 Institutional and Financial Assessment

8.1.4 Establishment of a Panel of Experts A Panel of Experts (PoE) of reputed national and international experts in river engineering will be established. The main role of the PoE is to support the PMO with their expertise in river management, and explicitly also to advise the PMO on innovative techniques or approaches for river management that are developed either in Bangladesh or in other regions of the world with similar characteristics. Tentatively it is envisaged that the PoE will be composed of 4 members, 2 national members and 2 international members and will meet once per year.

MRP support required Technical Assistance Material/financial support Other support • 2 High level int'l river management • None • International travel costs and Specialist (6 months intermittent) per diem (estimated at US$ • 2 High level nat'l river management 12,000 per year) specialist (6 months intermittent)

8.1.5 Training MRP will implement a focused program with training and awareness raising for staff of BWDB. For BWDB training a variety of technical subjects, strengthening planning and management skills and enhancement of technology and computer skills

The following Table 8-3presents an overview of the training courses to be provided and their costs. 8.1.6 Plans and Studies The National Water Policy and the National Water management Plan are key documents for water management in Bangladesh. Since formulation, however, these key documents have not been updated, despite the fact that this was intended. Although in both river management is mentioned, it is not dealt with in a manner that reflects their importance for Bangladesh. An update of these documents is therefore overdue.

MRP will promote the update of these documents. This update should be the responsibility of the MOWR and WARPO. MRP is ready to contribute its knowledge and the JMREMP experience to enhance the visibility of river management in these documents.

MRP will initiate the execution of a number of technical studies on river morphology, hydrology and other subjects within the framework of a River Stabilization Plan. That will enhance the knowledge base on which the updated plans can be based.

MRP support required Technical Assistance Material/financial support Other support • None • Funding for execution of studies. Costs are discussed • None for co-financing of around USD 5 million

Page 79 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Table 8-2: Overview capacity development BWDB (Costs in US$) Capacity Development

TITLE DESCRIPTION UNIT NO UNIT COST TOTAL courses for practitioners river training techniques 20 persons, 5 courses intern. res. pers. month 1 35,000 35,000 other cost meet 5 3,000 15,000 construction mgmt. 20 persons, 5 courses intern. res. pers. month 1 35,000 35,000 other cost meet 5 3,000 15,000 under water investigations 20 persons, 5 courses intern. res. pers. month 1 35,000 35,000 other cost meet 5 3,000 15,000

river engineering 20 persons, 5 courses month 1 10,000 10,000 BUET professor meet 5 3,000 15,000 other cost riverbank geotech 20 persons, 5 courses month 1 10,000 10,000 BUET professor meet 5 3,000 15,000 other cost riverbank protection 20 persons, 5 courses month 1 10,000 10,000 BUET professor meet 5 3,000 15,000 other cost survey & evaluation 20 persons, 5 courses month 1 10,000 10,000 BUET professor meet 5 3,000 15,000 other cost

Program Management Leadership 20 persons, 5 courses DU professor month 1 10,000 10,000 other cost meet 5 3,000 15,000 Strategic Planning 20 persons, 5 courses DU professor month 1 10,000 10,000 other cost meet 5 3,000 15,000 Project Management 15 persons, 25 courses DU professor month 5 10,000 50,000 other cost meet 25 3,000 75,000 resettlement 15 persons, 25 courses DU professor month 5 10,000 50,000 other cost meet 25 3,000 75,000 environment 15 persons, 25 courses DU professor month 5 10,000 50,000 other cost meet 25 3,000 75,000

technology transfer counterpart engs. 3 persons years 9 3,000 27000

computer use 6 courses @20 persons course 6 1500 9000

Page 80 September 2013 Institutional and Financial Assessment

Table 8-3: BWDB Training costs per year (in US$)

8.1.7 River Management Guideline For FCDI interventions, BWDB has developed a set of guidelines and approaches for planning and implementation. For River Management this does not exist, despite the fact that this constitutes a substantial proportion of BWDB activities. MRP will assist BWDB (mainly the CE-RM) to develop the necessary approaches and guidelines for River Management. This will be included in the terms of reference of the TA team, and will require additional short term support of a high level expert in River Management

MRP support required Technical Assistance Material/financial support Other support • Int'l training River Management Specialist. • None • None • Nat'l River Engineer 8.1.8 Asset Management MIS Adequate information about the inventory of BWDB assets throughout the country and the maintenance status of these assets is not available. Setting-up an MIS for only a part of BWDB activities has been done in the past and has failed to address the absence of adequate management information for BWDB management. Therefore MRP will promote the establishment of an organisation-wide MIS. Other projects, notably WMIP (World Bank) and to a certain extent also IMIIP (ADB), face similar problems and work on comparable initiatives. Since an organisation can have only one MIS this activity will be closely coordinated with the projects mentioned and other interested development partners of BWDB (possibly JICA and the Netherlands).

MRP support required Technical Assistance Material/financial support Other support • Int’l ICT specialist • System development costs: • Data collection and consolidation: US$ 100,000 • Nat’l ICT specialist US$ 150,000 • Introduction and training: US$ 100,000 8.1.9 Promoting block allocations One of the fundamental contradictions for river management in Bangladesh is the incompatibility between a rigid planning and budgeting process and the highly dynamic nature of the main rivers. Overall this results in delay of necessary interventions and O&M, and ultimately in higher costs for river management.

Page 81 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

MRP will promote to include block allocations in budgets for river management interventions. This will require cooperation of relevant GoB institutions (Planning Ministry, Ministry of Finance, Ministry of Water Resources). Activities to be undertaken will be included in the terms of reference of the TA team.

8.2 Capacity Development Disaster Risk Management 8.2.1 Establishment and support to of Ward Disaster management Committees The Program will establish WDMCs, mainly composed of vulnerable people in the affected areas. Women should constitute at least 40% of the members of the WDMC. The number of WDMC will be proportionate to the target population in each ward. Establishment of the WDMC will require the following resources of MRP.MRP will provide training and awareness raising events to the WDMC. This includes training in a variety of livelihood supporting skills and training and awareness raising for disaster prevention and preparedness. The specific activities are described in Appendix 5 of the Institutional Analysis report. The following Table 8-4 and Table 8-5presentan overview of the consolidated costs of the support to CbFRM.

Table 8-4: Costs of livelihood support capacity development

Table 8-5: Costs of support to CbFRM capacity development

Page 82 September 2013 Institutional and Financial Assessment

Appendices

APPENDIX 1: Organisational Structure BWDB ...... 85 APPENDIX 2: Analysis of the organisational survey BWDB ...... 91 APPENDIX 3: Financial Management Assessment BWDB ...... 129 APPENDIX 4: Establishment and Introduction of a Management Information System ...... 153 APPENDIX 5:Community-based Flood Risk Management ...... 201

Page 83 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Page 84 September 2013 Institutional and Financial Assessment

APPENDIX 1: Organisational Structure BWDB

Page 85 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

1.Organisational Structure BWDB

Note: The post of ADG I has been renamed as ADG East

Figure 8-1: Organogram ADG (O&M-I)

Page 86 September 2013 Institutional and Financial Assessment

Figure 8-2: Organogram ADG (O&M-II)

Note 1: The post of ADG II has been renamed ADG West Note 2: The SW zone has been split in two:

1. Mid-Southwestern Zone (Faridpur) with Circles Faridpur and Kushtia 2. Southwestern Zone () with Circles Khulna and Jessore

Page 87 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Note: The proposed position of Chief Engineer River Management will be situated directly under the ADG-Planning

Figure 8-3:Organogram ADG (Planning)

Page 88 September 2013 Institutional and Financial Assessment

Figure 8-4: Organogram ADG (Admin)

Figure 8-5:Organogram ADG (Finance)

Page 89 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Page 90 September 2013 Institutional and Financial Assessment

APPENDIX 2: Analysis of the organisational survey BWDB

Page 91 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Page 92 September 2013 Institutional and Financial Assessment

Analysis of organisational culture and performance of BWDB

1. Introduction

BWDB is the key executing organisation of MRP. Some assessment or description of parts or different aspects of the organisations are documented, but no systematic assessment of the organisational culture as a whole has been conducted. In order to obtain a more solid perspective on the BWDB organisation, a questionnaire survey among BWDB professional staff has been conducted. This appendix reports the results of this survey.

2.Methods used The survey consisted of three distinct parts:

• Part one is a survey based on the “Organisational Culture Assessment Instrument” developed by Cameron and Quinn (2011)33 as part of their Competing Values Framework to assess the dominant cultures in organisations. • Part two lists a series of statements about the performance of BWDB that respondents were asked to score on a four point scale. • Part three gave respondents the opportunity to list the three main challenges for BWDB and the three main strengths of the organisation.

The Competing Values Framework and the Organisational Culture Assessment Instrument34 All organisations are characterised by patterns in (internal) relationships. The Competing Values Framework maps the values and perceptions underlying these relationships. It has been tested and studied in different types of organisations for more than 25 years, and is currently used by hundreds of organisations around the world, in the public, not for profit and private sectors. It is considered one of the more robust and broadly applicable frameworks for analysing organisational cultures.

The basic framework consists of two dimensions expressing the “competing values” that exist in organisations. These are a vertical axis from flexibility/individuality to stability and control and a horizontal axis from internal maintenance of efficient processes to external positioning. These two axes create a quadrant with dominant characteristics of organisational culture (Figure 1):

• A clan culture indicates a pleasant place to work, where people share a lot of personal information. Leaders of the organisation are seen as mentors. The organisation is held together by loyalty and tradition and commitment to the organisation is high. Great importance is given to cohesion, morale and teamwork. The key word for this culture type is “to collaborate”. • An adhocracy culture denotes an entrepreneurial and creative place of work. Leaders are considered innovators and risk takers. What holds the organisation together is a commitment to experimentation and innovation. The organisation encourages individual initiative and the key word for this culture type is “to create”. • The market culture emphasises to get the job done. People are competitive and goal oriented. Leaders are hard drivers, tough and demanding. The organisation is held together by the

33 Cameron, K.S., R.E. Quinn (2011) Diagnosing and Changing Organisational Culture, based on the competing values framework, Jossey-Bass 34 This section is base don - Cameron, KS, R.E Quinn (2011) Diagnosing and Changing Organisational Culture, based on the competing values framework, Jossey-Bass - Cameron, KS, R.E. Quinn, J DeGraff, A.J. Thakor, Competing Values Framework (http://competingvalues.com/competingvalues.com/wp-content/uploads/2009/07/Competing-Values-Leadership- Excerpt.pdf) - OCAI-onl line (May 2010): Report Organisational Culture Assessment Instrument, Public Administration. (http://www.ocai- online.com/userfiles/file/ocai_pro_example_report.pdf)

Page 93 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

emphasis on winning, reputation and success are shared concerns. They key word for this culture type is “to compete”. • A hierarchy culture indicates a formalised and structured place to work, with clear procedures. Leaders are coordinators and organisers with a focus on efficiency. Maintaining a smooth running organisation is considered important, to allow long term stability and performance with the key word “to control”. Individuality Flexibility

Culture type: CLAN Culture type: ADHOCRACY

Orientation: COLLABORATE Orientation: CREATE

Leader type : Facilitator Leader type : Innovator Mentor Entrepreneur Team Builder Visionary

Theory of effectiveness: Theory of effectiveness: Human development and Innovativeness, vision and new participation produce effectiveness resources produce effectiveness Internal focus and External focus and integration differentiation Culture type: HIERARCHY Culture type: MARKET

Orientation: CONTROL Orientation: COMPETE

Leader type : Coordinator Leader type : Hard Driver Monitor Competitor Organizers Producer

Theory of effectiveness: Theory of effectiveness: Control and efficiency with capable Aggressively competing and processes produce effectiveness customer focus produce effectiveness

Stability Control Figure 1: The Competing Values Framework

The organisational characteristics are determined with the Organisational Culture Assessment Instrument (part 1 of the questionnaire). This questionnaire inventories perceptions on: - The Dominant Characteristics of the Organisation - Organisational Leadership - Management of Employees - Organisational Glue/Coherence - Strategic Emphases - Criteria of Success

Under each of these headings four statements must be rated by respondents with ratings under each heading adding-up to 100. Respondents are asked to score these key characteristics of BWDB as they perceive it at present and again what they would perceive as the preferred situation.

Survey execution

Page 94 September 2013 Institutional and Financial Assessment

The survey asked respondents to indicate their organisational unit in BWDB (Planning, Design, Hydrology, Field office, Project office and Administration/Finance) and their present position/rank. Altogether 512 questionnaires were distributed among professional staff of BWDB, and 244 staff responded (48%). The rank of the respondents is presented in Table 1.

Table 1: Respondents according to Rank Designation Number of returned questionnaires 1 Additional Director General / Chief Engineer / Additional Chief Engineer 8 2 Superintending Engineer / Director / Project Director / Secretary/Joint Chief 22 3 Executive Engineer / Deputy Director 46 4 Sub-Divisional Engineer / Geologist / Hydrologist/Economist 36 5 Assistant Engineer / Assistant Director / Accounts Officer / Research Officer / 23 Assistant Chief / 6 Sub-Assistant Engineer / Accountant 109 Total questionnaires returned 244

Returned questionnaires were checked for completeness and consistency. Some questionnaires had to be rejected mainly because of incomplete information. Incompleteness varied for the different parts of the questionnaire. The number of questionnaires considered for analysis for each part of the questionnaire is indicated in Table 2.

Table 2: number of valid questionnaires per part

Questionnaire part Number of valid questionnaires processed Part 1 239 Part 2 240 Part 3 241

The questionnaire was administered in Bangla. The English translation of the questionnaire is attached (Attachment 1).

Data Analysis The Organisational Culture Assessment Instrument is commonly used to survey perceptions of current and preferred organisational culture among senior staff of an organisation, who have worked in different parts of the organisation and are familiar with aspects of its culture. In the survey of BWDB staff all professional staff were asked to complete the questionnaire. The analysis of the data, however is done separately for the different levels of staff.

The analysis considers different aspects of the data provided for various staff levels: • Relative strengths of the different culture types and congruence of the mix of culture types with the demands of the environment. • Congruence of current and preferred organisational culture types • Discrepancy of perceptions of current and preferred organisational culture types between the different organisational units in BWDB.

For the analysis the following categories of respondents are used (Tables 2.3 & 2.4).

Page 95 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Table 3: Categories of ranks of professional BWDB staff Category Ranks included Senior staff Additional Director General / Chief Engineer / Additional Chief Engineer/ Superintending Engineer / Director / Project Director / Secretary/Joint Chief Mid career staff Executive Engineer / Deputy Director / Sub-Divisional Engineer / Geologist / Hydrologist/ Assistant Engineer / Economist / Assistant Director/Accounts Officer / Research Officer / Assistant Chief / Assistant Director Implementation staff Sub-Assistant Engineer / Accountant

Table 4: Categories of organisational units Category Abbreviation Offices and units included Headquarter HQ Planning, Design and Hydrology offices Field staff Field All staff posted outside headquarters Project staff Project Staff assigned to various projects, both in the field and in Dhaka Administrative and Admin-F All respondents working in administrative and finance offices in Finance staff Dhaka and in the field

With regard to the implementation staff of BWDB a particular situation appeared. All but 6 respondents in this category were posted in field offices. Because of the limited number of respondents in other offices, no separate analysis of data per organisational unit was done for this group.

3. Organisational culture assessment

Mix and relative strength of culture types The overall current culture types indicated by all respondents is presented in Figure 2. The pattern than emerges from Figure 2 corresponds to a large extent to the situation generally found in public organisations35. The pattern shows a mix of culture types present in the organisation, slightly skewed towards the “hierarch” type culture.

Figure 2: Average Culture Profiles BWDB and 43 Public Service Organisations Note: Average of 43 Public Service Organisation from Cameron, KS, R.E Quinn (2011) Diagnosing and Changing Organisational Culture, based on the competing values framework, Jossey-Bass, p.91.

35 See Cameron, KS, R.E Quinn (2011) Diagnosing and Changing Organisational Culture, based on the competing values framework, Jossey-Bass, p.91.

Page 96 September 2013 Institutional and Financial Assessment

The overall current and preferred culture types emerging from the response of all BWDB staff is presented in Figure 3. On average, respondents consider the current organisational culture types “clan” and “market” close to preferred values. There is, however some preference for a less “hierarchy” and more “adhocracy” type organisational culture.

This mix of culture types appears to be consistent with the demands that are placed on the organisation. Overall the people and the Government of Bangladesh demand dependable and adequate service from BWDB. The aspect “clan” culture is somewhat stronger than generally in public service organisations indicating a stronger than usual sense of belonging to the organisation. This can probably be attributed to the fact that BWDB is an organisation dominated by a single professional discipline, with to a considerable extent shared values and mutual appreciation and respect for professional skills.

Figure 3: Overall perception of current and preferred culture types: all BWDB staff (239 respondents)

3.1 Senior and mid-career staff The current and preferred culture types emerging from the response of senior and mid-career staff respectively is presented in Figures 4 and 5. Overall there is a substantial degree of congruence between the perceptions of senior and mid-career staff. The preference for a less “hierarchy” type culture appears to be stronger among senior BWDB staff than among mid-career BWDB staff, what might indicate that senior staff feels secure and respected in the organisation. The (slight) preference for a more “adhocracy” culture among both senior and mid-career staff indicates that both groups see the need for adaptation of BWDB to a changing external environment with a somewhat higher level of internal dynamics.

Page 97 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Figure 4: Current and preferred culture types senior BWDB staff (27 respondents)

Figure 5: Current and preferred culture types mid-career BWDB staff (104 respondents) The analysis for each of the current and preferred organisational culture types for senior and mid- career staff together per office unit is shown in Attachment 2. The findings highlight that the overall pattern between the different offices is generally congruent with the overall pattern. The clearest differences can be seen on the axis from “hierarchy” culture to “adhocracy” culture:

• For the senior and mid-career staff in the Planning, Design and Hydrology units the current situation is close to the preferred situation for all culture types. • Staff in Field offices and Project offices have an increasing preference for the “adhocracy” culture largely at the expense of the “hierarchy” culture. This indicates that senior and mid- career staff close to the implementation process would prefer that BWDB adjusts more to the changing environment and is more visionary and creative in its approach. • Staff in the Administrative – Finance offices have the most outspoken preference for the “adhocracy” type culture. Somewhat surprisingly they have a low preference for a “market” type culture.

The findings indicates a certain tension between the perceptions of the organisational units in BWDB that are more directly involved in implementation and the headquarter units . The need to adjust to the

Page 98 September 2013 Institutional and Financial Assessment policy and socio-economic environment is felt stronger the closer one gets to the actual implementation.

3.2 Implementation staff Of the 108 validated responses of implementation staff all but 6 worked the field offices. As the small number of headquarter staff is not statistically representative no analysis of differences of perceptions on current and preferred culture types per organisational unit could be conducted.

The current and preferred culture types of the 103 implementation staff in field offices is presented in Figure 6.

Figure 6: Current and preferred culture types implementation staff (102 respondents) Implementation staff shows the greatest difference between current and preferred culture types on the axis from “hierarchy” culture to “adhocracy” culture, with a preference for the latter. There is no real preference for changes in the level of “clan” and “market” cultures.

3.3 Perceptions of organisational working practices and performance Attachment 3 presents cross tables for the response to the questions included in part 2 of the questionnaire. The tables present consolidated information, with offices categorised as shown in Table 4. Staff is ranked in three categories described in table 3.

Table 5 presents an overview of these responses. Overall this indicates a substantial level of satisfaction with current working practices and performance among staff. On the basis of this table the following is observed:

• There are differences of opinion with regard to question 2.4 (BWDB constructs all river bank protection works in conformity with design requirements) between field staff on the one hand and headquarters staff as well as project staff on the other. The lower than average score given by senior staff for this question indicates that senior management is not convinced of the quality of implementation. • The fact that the overall score for question 2.6 (Project implementation is delayed often due to inadequate planning and lack of management capacity of BWDB) is not substantially lower indicates wide-spread doubts about the planning and management capacity of BWDB • The relatively high score given by senior staff as answer to question 2.7.5 (Problems of O&M are caused by lack of participation of beneficiaries) is remarkable, and significantly higher than the

Page 99 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

score given by mid-level and implementation staff. This indicates that senior management is not convinced of the level and effectiveness of participation by beneficiaries. • The above observation is partially contradicted by the response to question 2.11 (BWDB always consults water users when planning its projects and takes their priorities in consideration). The average score for this question is high, but there is substantial divergence between field staff and project staff. Noteworthy is that senior BWDB staff scores this issue somewhat lower than average, confirming their doubts expressed in question 2.7.5. • The consistently positive scores for questions 2.12 and 2.13 suggest that BWDB is an innovative organisation, both with regard to the techniques that it applies as well as with regard to management practices. This is surprising in view of the information collected for the institutional analysis. The views of BWDB staff on these issues appear to be substantially different from how external stakeholders perceive the organisation.

Because the categories “field office staff” and “implementation staff” show a high degree of overlap, a separate analysis was done for the category “field office” for only senior and mid-career staff. This did not show substantial differences with the scores presented in column (6) of table 5.

Page 100 September 2013 Institutional and Financial Assessment

Table 5: Scores for questions 2.1 to 2.13, overall average, according to rank and according to office. Score of response Overall According to rank According to office Question average Senior Mid-level Impl. staff HQ Field Project Adm.-F (1) (2) (3) (4) (5) (6) (7) (8) 2.1 Non-engineering disciplines (economists, sociologists, agriculturalists, environment, transport 3.2 3.1 3.2 3.1 3.0 3.2 3.0 3.7 planners) play currently an important role in the planning process. 2.2 BWDB's in house capacity is not adequate for proper project planning (conducting feasibility 2.3 2.4 2.5 2.1 2.6 2.3 2.0 2.0 studies, writing ToR's for consulting services). 2.3 The river bank protection designs made by BWDB are in conformity with technical requirements. 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.4 2.4 BWDB constructs all river bank protection works in conformity with design requirements 3.5 3.1 3.3 3.7 3.1 3.6 3.0 3.2 2.5 GoB procurement guidelines and practices are appropriate to ensure transparency and cost 3.4 3.3 3.4 3.5 3.4 3.4 3.6 3.1 effectiveness in contracting. 2.6 Project implementation is delayed often due to inadequate planning and lack of management 2.7 2.7 2.8 2.7 2.8 2.7 2.5 3.1 capacity of BWDB. 2.7.1: Inadequate information about the maintenance status is a problem for O&M. 3.0 3.3 3.0 2.9 3.1 2.9 3.0 3.0 2.7.2: Lack of interest of BWDB staff is a problem for O&M. 2.2 2.5 2.3 1.9 2.5 2.1 2.2 2.7 2.7.3: Lack of an adequate budget allocation framework is a problem for O&M. 3.1 3.3 3.2 3.0 3.1 3.1 3.6 3.2 2.7.4: Problems of O&M are caused by lack of funds. 3.7 3.8 3.7 3.8 3.4 3.8 3.7 3.4 2.7.5: Problems of O&M are caused by lack of participation of beneficiaries. 2.8 3.2 2.8 2.6 2.8 2.6 3.0 3.8 2.8: Contractors are able to adequately control quality of their work and do this effectively in practice. 2.1 2.1 1.9 2.4 1.8 2.3 1.8 1.9 2.9 BWDB always consults other relevant GoB institutions at the central level when planning its 2.9 2.7 3.0 2.9 2.9 2.9 2.8 3.2 projects and takes their priorities into consideration. 2.10 Consultation of Local Government Institutions by BWDB during project planning is often 2.4 2.5 2.3 2.5 2.3 2.4 2.4 1.9 inadequate. 2.11 BWDB always consults water users when planning its projects and takes their priorities into 3.4 3.0 3.4 3.5 3.3 3.5 3.0 2.8 consideration. 2.12 BWDB promotes the adoption of innovative designs for river bank protection and embankments 3.3 3.3 3.3 3.3 3.4 3.3 3.1 3.3 and structures. 2.13 BWDB promotes the adoption of innovative management practices (for example Management 3.2 3.4 3.1 3.1 3.3 3.1 3.2 3.3 Information Systems, Accounting, Asset inventory, Human Resources Management).

Page 101 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

3.4 Perceived strengths and weaknesses All respondent were asked to list maximum three main strengths and the three main challenges of BWDB (not necessarily in order of priority). Of the 244 returned questionnaires, all but three included at least one strength or one challenge .

3.4.1 Strengths For the analysis strengths were grouped under seven key issues .

Table 6: Consolidation of strengths mentioned No. Key issue Selected observations included Strengths from the external environment 1 Policy environment Important role of the task force 2 Social and commercial Popular demand for BWDB services environment 3 Natural environment None reported BWDB internal strengths 4 Management Strong management board, willingness to take risks in decision making 5 Procedures and equipment Early flood forecasting and appropriate reaction to emergencies, strong design, planning and quality control, maintaining navigability through dredging, use of modern technology, BWDB national coverage and implementation capacity, transparency 6 Staff capacity Skills and experience with irrigation and bank protection, technical knowledge, unbeatable in water sector. 7 Staff attitudes and motivation Commitment, teamwork and mutual trust.

The strengths indicated were broken down according to organizational unit (headquarters, field staff, project staff and administrative/financial staff) and rank.

Because of the different numbers of respondents in each category the Tables 8 and 9 present the incidence of the strengths mentioned per category36. Remarkable findings are:

• Overall BWDB internal factors are identified as the main strengths for the organisation, rather than factors emerging from the external environment. • Notably staff capacity was seen as the key strength of BWDB. Staff skills in irrigation and bank protection and technical engineering knowledge were often mentioned. • Procedures were also considered a strength of BWDB. This included flood forecasting, well established procedures for planning, design and quality control, the national coverage of BWDB and the proven implementation capacity.

A separate analysis was done to calculate the incidence of strengths for senior and mid-career staff of field offices, excluding the large number of implementation staff in this category. No substantial differences with the numbers presented in Tables 8 and 9 was found.

3.4.2 Challenges For the purpose of analysis challenges were grouped under the same seven key issues as were used for the strengths.

36 Incidence = number of times that the issue is mentioned divided by the number of respondents in that category. Rows and columns do not add-up to 1.00

Page 102 September 2013 Institutional and Financial Assessment

Table 7: Consolidation of challenges mentioned

No. Key issue Selected observations mentioned Challenges from the external environment 1 Policy environment Inadequate budgets, political & bureaucratic influences, inadequate emergency funding. 2 Social and commercial Land acquisition; weakness of contractors, weak external environment reputation/publicity. 3 Natural environment Changes in morphology and navigability, increasing river erosion BWDB internal challenges 4 Management style Delayed decision making at management level, lack of strong management and coordination, no decentralisation of authority, lack of transparency. 5 Procedures and equipment Inadequate M&E, no sharing of experiences, operational guidelines not applied, no MIS, absence of long-term flood forecasting, inadequate transparency of tender evaluation, promotion policy not transparent. 6 Staff capacity Lack of adequate number of skilled and experienced staff, lack of training, 7 Staff attitudes and motivation Lack of commitment, perceived negative reactions from beneficiaries, dissatisfaction with status of engineers and their logistical support.

The challenges indicated were broken down according to office (see Table 4) and rank (Table 3).

Tables 10 and 11 present the incidence of the challenges mentioned per category37. Remarkable findings are:

• Overall BWDB internal factors are identified as the main challenges for the organisation, rather than factors emerging from the external environment. • BWDB management is responsible for both the management style and practices and to a large extent also for the working procedures and the equipment made available. If these two key issues are taken together, they are considered the main overall challenge for BWDB by all categories of respondents. • Senior management appears to be self-critical. They tend to blame to a lesser extent the policy environment and funding for the challenges that BWDB faces, and focus more on management issues. • Field and project staff are less critical of management and procedures, and consider the policy environment a major challenge for BWDB.

37 Incidence = number of times that the issue is mentioned divided by the number of respondents in that category. Rows and columns do not add-up to 1.00.

Page 103 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Table 8: Incidence of strengths reported Office External factors BWDB internal factors Number of Policy Social & Natural Total Managem. style Procedures & Staff capacity Staff attitudes Total internal respondents environm.& commercial environm. external & practices equipment / motivation factors funding environm. factors Headquarters 0.10 0.10 0.00 0.20 0.08 1.23 1.23 0.15 2.68 40 Field offices (all staff) 0.05 0.06 0.00 0.11 0.10 1.13 1.34 0.26 2.83 167 Project staff 0.08 0.04 0.00 0.12 0.12 1.00 1.28 0.08 2.48 25 Administration/finance staff 0.00 0.11 0.00 0.11 0.00 1.00 1.33 0.44 2.78 9

Table 9: Incidence of strengths reported Rank External factors BWDB internal factors Number of Policy environment Social & commercial Natural Total external Management Procedures & Staff Staff attitudes/ Total internal respondents & funding environment environment factors style & practices equipment capacity motivation factors Senior staff 0.04 0.11 0.00 0.14 0.04 1.11 1.43 0.11 2.68 28 Mid-level staff 0.05 0.07 0.00 0.11 0.11 1.21 1.27 0.19 2.78 105 Implementation staff 0.07 0.06 0.00 0.13 0.09 1.06 1.32 0.30 2.77 108

Table 10: Incidence of challenges reported Office External factors BWDB internal factors Number of Policy environm.& Social & commercial Natural Total external Managem. style Procedures & Staff Staff attitudes/ Total internal respondents funding environm. environm. factors & practices equipment capacity motivation factors Headquarters 0.65 0.03 0.13 0.80 0.63 0.58 0.65 0.02 2.05 40 Field offices (all staff) 0.96 0.16 0.03 1.15 0.43 0.57 0.59 0.21 1.80 167 Project staff 1.08 0.00 0.12 1.20 0.38 0.64 0.32 0.16 1.80 25 Administration/ finance staff 0.33 0.00 0.00 0.33 0.22 0.78 1.33 0.33 2.67 9

Table 11: Incidence of challenges reported Office External factors BWDB internal factors Number of Policy environment Social & commercial Natural Total Management Procedures Staff Staff attitudes / Total respondents & funding environment environment style & practices & equipment capacity motivation Senior staff 0.68 0.11 0.11 0.89 0.75 0.64 0.57 0.14 2.11 28 Mid-level staff 0.92 0.06 0.07 1.05 0.44 0.58 0.64 0.23 1.89 105 Implementation staff 0.93 0.18 0.03 1.13 0.45 0.57 0.57 0.20 1.81 108

Page 104 September 2013 Institutional and Financial Assessment

3.5 Conclusions The findings of the survey indicate the following: 1. BWDB is characterised by a mix of organisational cultures types typical for many organisations in the public sector. It is a relatively homogeneous and “close knit” organisation, with clear shared values. It has a long engineering tradition and the engineering profession still strongly dominates the organisation. There is a feeling of an “esprit de corps” among professional (engineering) staff, with considerable loyalty to the organisation. Many observe that BWDB has a considerable potential both in terms of expertise as well as its wide-spread network throughout Bangladesh. 2. The perceived strengths of the organisation are that it is looking at the greater good of the nation – which however might not be delivered so well. 3. This cohesiveness, however, also leads to an “inward looking” attitude, where staff finds it difficult to understand the changes occurring in the outside world, and find it difficult to adjust to these changes. There are various signs of this. Policy changes lead to new approaches and strategies being formulated (often under pressure from or with the help of external parties), but these new strategies and approaches are not internalised, and hence not, or reluctantly and partially, adopted in practice. There is a feeling that the status and the respect for the engineering profession in society is decreasing, without the reason for this being fully understood. There is a wide-spread impression that BWDB is not well perceived among policy makers and the population that it intends to serve. BWDB is losing its “competitive edge” in the public service system in Bangladesh. This results in decreasing budget allocations and lack of funds for maintenance and investments. The outside world is often seen more as a threat than as the justification of its (BWDB) existence. Another powerful sign for this is that increasingly BWDB finds it difficult to retain junior staff, a situation unheard of a decade or more ago. 4. Throughout the organisation it is perceived that BWDB management finds it difficult to adjust the organisation to the changes in its policy and societal context. All levels in the organisation are critical, but it is striking that senior management is among the most critical. This points to the conclusion that senior management is aware of the need for change, but does not know how this change should be brought about. Senior management is in power for a short time and becomes more critical as consultant thereafter – what do we do with that? 5. The organisation faces a substantial challenge in the field of management, including the management style and practices and the working procedures that are used. Lack of transparency and decentralisation of decision making, leading to a perceived autocratic style of management on the one hand, and non application of guidelines and procedures on the other are most frequently mentioned. Also, in this respect senior management has expressed a self-critical perception on this issue, indicating its awareness of the problems that the organisation faces in this respect.

3.5.1 Overall conclusion The survey conducted among BWDB staff is a first attempt to provide a more solid base for assessment of the organisational culture, going beyond impressionistic perceptions, often based on some limited personal experiences. The findings of the survey confirm many of these impressions, but add some more depth. It becomes increasingly clear that a main problem is that BWDB finds it difficult to adjust to the current policy and societal context in Bangladesh. There is a widely held view in the organisation that BWDB should improve its external positioning in the policy and socio-economic environments in which it operates and interact in a more visionary and creative way with other stakeholders. Management plays a critical role in this respect. The difference between the current situation and the preferred situation is not very pronounced, but stronger in the organisational units that are more

Page 105 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program directly involved in implementation. Also the fact that it is almost unanimously shared in all organisational units of the organisation and all ranks, including the most senior management levels, gives weight to this view.

3.5.2 Recommendations From the survey findings it becomes clear that simultaneous action at different levels of the organisation is required.

1. At the bottom, training of young professionals in the perceptions and role of BWDB in Bangladesh society and economy, and their role in relation to other stakeholders is required. The development of a joint program with BUET to train practitioners, building on the successful pilot and demonstration project could be considered. 2. Senior management must lead the organisation in developing a vision of its role in the future. Findings indicate that senior management is aware that this is needed, but does not know how this should be done in the current circumstances. Development of a strong vision, not in isolation but in consultation both internally and external, will lead to a process of “revitalisation” as also described in other publications38. 3. Mid-career staff in the organisation is key to how BWDB is perceived in Bangladesh society at large. They are in daily contact with other stakeholders and direct or indirect beneficiaries. Two factors determine the external perceptions of BWDB: o First, many stakeholders and beneficiaries consider that their interests are not taken seriously. This is largely an issue of attitude and communication. Engineers must be able to explain necessary technical interventions to non-engineers, to make them understand the rationale for plans if not obtain their agreement. So we need to teach them how to communicate with non-engineers – an interesting course to be developed o Second, quality control must be improved. Perceived inadequate quality of works is a strong factor determining the negative perception that many have of BWDB.

The first point requires an attitudinal change of staff throughout the organisation. The second point must be a major concern of senior management.

Working on this process of change requires a long term perspective and goes beyond the scope of one single project. It also requires coherence over a long time period and a common view between all parties concerned: BWDB itself, MOWR and the main donors in the sector.

With the initiation of the MFF in the water sector, ADB introduces such a long term perspective in its cooperation with BWDB. It is therefore well placed to take the lead in such an organisational change process.

38 De Heer, J.M. and A. Jenkins (2010) Practices of Cross Cultural Collaboration in Sustainable Water Management in Bangladesh.

Page 106 September 2013 Institutional and Financial Assessment

Attachment 1 to Appendix 2 :

Questionnaire Form

Page 107 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Main Rivers Flood and Bank Erosion Risk Management Program (MRFBERMP) Feasibility Study

Questionnaire organisational culture and practices BWDB

Work area (tick your one) Tick your one A. Office: 1. Planning B. Rank: 1. ADG 2. Design 2. CE/Add'l CE 3. Hydrology 3. SE 4. Field office 4. Director 5. Project 5. XEN 6. Monitoring 6. SDE 7. Admin/Finance 7. AE 8. Other 8. Other

The purpose of this questionnaire is to determine what BWDB staff see as the organisational culture and practices of their organisation. This will help the ADB supported Main Rivers Program to develop activities for organisation development that will be necessary to successfully implement the program.

1. The Organizational Culture Assessment Instrument

1.1 Dominant Characteristics Now Preferred A The organization is a very personal place. It is like an extended family. People share a lot of themselves. B The organization is a very dynamic place. People are willing to take risks.

C The organization is very results oriented.BWDB staff are very competitive and result oriented. D The organization is a very controlled and structured place. Formal procedures govern what staff do. Total 100 100 1.2 Organizational Leadership Now Preferred A The leadership in the organization is generally considered to play a mentoring and facilitating role. B The leadership in the organization is generally considered to be innovative and encourage risk taking. C The leadership in the organization is generally considered to have a no- nonsense, results-oriented focus. D The leadership in the organization is generally considered to have a coordinating, smooth-running efficiency. Total 100 100 1.3 Management of Employees Now Preferred A The management style in the organization is characterized by teamwork and participation. B The management style in the organization is characterized by individual risk- taking, innovation. C The management style in the organization is characterized byhigh demands focused on achievements. D The management style in the organization is characterized by security of employment, conformity, and stability in relationships Total 100 100

Page 108 September 2013 Institutional and Financial Assessment

1.4 Organization Coherence Now Preferred A The organization is held together on the basis of loyalty and mutual trust. Commitment to this organization is high. B The organization is held together through commitment to innovation and development. There is an emphasis on being on the cutting edge. C The organization is held together by an emphasis on achievement and goal accomplishment. The will to "win" is a common theme. D The organization is held together by formal rules and policies. Maintaining a smooth-running organization is important. Total 100 100 1.5 Strategic Emphases Now Preferred A The organization emphasizes human development. High trust, openness, and participation persist. B The organization emphasizes acquiring new resources and creating new challenges. Trying new things and prospecting for opportunities are valued. C The organization emphasizes competitive actions and achievement. Hitting ambitious targets and winning in the marketplace are dominant. D The organization emphasizes permanence and stability. Efficiency, control and smooth operations are important. Total 100 100 1.6 Criteria of Success Now Preferred A The organization defines success on the basis of the development of human resources, teamwork, employee commitment, and concern for people. B The organization defines success on the basis of having the newest products. It is a product leader and innovator. C The organization defines success on the basis of winning in the marketplace and beating the competition. Competitive market leadership is key. D The organization defines success on the basis of efficiency. Dependable delivery, smooth scheduling and low-cost production are critical Total 100 100

2. Please give ratings for the following statements about the performance of BWDB:

2.1 Non-engineering disciplines (economists, sociologists, agriculturalists, environment, transport planners) play currently an important role in the planning process.

1. Completely 2. Partially 3. Partially 4. Fully disagree disagree agree agree

2.2 BWDB's in house capacity is not adequate for proper project planning (conducting feasibility studies, writing ToR's for consulting services).

1. Completely 2. Partially 3. Partially 4. Fully disagree disagree agree agree

2.3 The river bank protection designs made by BWDB are in conformity with technical requirements.

1. Completely 2. Partially 3. Partially 4. Fully disagree disagree agree agree

Page 109 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

2.4 BWDB constructs all river bank protection works in conformity with design requirements

1. Completely 2. Partially 3. Partially 4. Fully disagree disagree agree agree

2.5 GoB procurement guidelines and practices are appropriate to ensure transparency and cost effectiveness in contracting.

1. Completely 2. Partially 3. Partially 4. Fully disagree disagree agree agree

2.6 Project implementation is delayed often due to inadequate planning and lack of management capacity of BWDB.

1. Completely 2. Partially 3. Partially 4. Fully disagree disagree agree agree

2.7 Challenges for O&M.

1. Completely 2. Partially 3. Partially 4. Fully disagree disagree agree agree 2.7.1. Inadequate information about the maintenance status is a problem for O&M. 2.7.2. Lack of interest of BWDB staff is a problem for O&M 2.7.3. Lack of an adequate budget allocation framework is a problem for O&M 2.7.4. Problems of O&M are caused by lack of funds 2.7.5. Problems of O&M are caused by lack of participation of beneficiaries

2.8 Contractors are able to adequately control quality of their work and do this effectively in practice.

1. Completely 2. Partially 3. Partially 4. Fully disagree disagree agree agree

2.9 BWDB always consults other relevant GoB institutions at the central level when planning its projects and takes their priorities into consideration.

1. Completely 2. Partially 3. Partially 4. Fully disagree disagree agree agree

Page 110 September 2013 Institutional and Financial Assessment

2.10 Consultation of Local Government Institutions by BWDB during project planning is often inadequate.

1. Completely 2. Partially 3. Partially 4. Fully disagree disagree agree agree

2.11 BWDB always consults water users when planning its projects and takes their priorities into consideration.

1. Completely 2. Partially 3. Partially 4. Fully disagree disagree agree agree

2.12 BWDB promotes the adoption of innovative designs for river bank protection and embankments and structures.

1. Completely 2. Partially 3. Partially 4. Fully disagree disagree agree agree

2.13 BWDB promotes the adoption of innovative management practices (for example Management Information Systems, Accounting, Asset inventory, Human Resources Management).

1. Completely 2. Partially 3. Partially 4. Fully disagree disagree agree agree

3. Other questions

3.1 Are you familiar with the contract rules and regulations of the FIDIC (Fédération 1. Yes Internationale des Ingénieurs Conseils)? 2. No

3.2 Are you familiar with a Management Information System in BWDB 1. Yes 2. No

3.3 Please name 3 of the most important challenges you experience in your day to day work 1.

2.

3.

3.4 Please name 3 of the most important strength of the BWDB 1.

2.

3.

Page 111 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Page 112 September 2013 Institutional and Financial Assessment

Attachment 2 to Appendix 2 :

Detailed Results Organisational Culture Analysis Instrument

Page 113 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

This appendix presents consolidated information from the Organisational Culture Assessment, first for all BWDB respondents, then for senior/mid-career staff and implementation staff separately. Data are presented both in tables as well as spider diagrams.

1. All BWDB respondents:

A) Current and preferred organisational culture types

Culture type Current Preferred situation situation Clan culture 26 28 Adhocracy culture 21 24 Market culture 24 23 Hierarchy culture 29 26

2. Senior and mid-career staff

A) Current and preferred organisational culture types senior staff

Culture type Current Preferred situation situation Clan culture 25 28 Adhocracy culture 18 22 Market culture 23 21 Hierarchy culture 35 28

Page 114 September 2013 Institutional and Financial Assessment

B) Current and preferred organisational culture types mid-career staff

Culture type Current Preferred situation situation Clan culture 26 27 Adhocracy culture 21 25 Market culture 24 22 Hierarchy culture 29 26

Page 115 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

C) Current and preferred organisational culture types: senior + mid-career staff per organisational unit a. Headquarter units (Planning, Design, Hydrology)

Culture type Current Preferred situation situation Clan culture 26 27 Adhocracy culture 20 23 Market culture 23 22 Hierarchy culture 31 28

b. Field offices

Culture type Current Preferred situation situation Clan culture 25 28 Adhocracy culture 21 25 Market culture 26 26 Hierarchy culture 28 24

Page 116 September 2013 Institutional and Financial Assessment

c. Project offices

Culture type Current Preferred situation situation Clan culture 28 29 Adhocracy culture 17 24 Market culture 21 20 Hierarchy culture 34 27

Administrative and Finance units

Culture type Current Preferred situation situation Clan culture 28 27 Adhocracy culture 20 30 Market culture 20 17 Hierarchy culture 31 27

Page 117 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

D) Current and preferred organisational culture types: implementation staff

Culture type Current Preferred situation situation Clan culture 28 28 Adhocracy culture 21 24 Market culture 24 23 Hierarchy culture 27 25

Page 118 September 2013 Institutional and Financial Assessment

Attachment 3 to Appendix 2 :

Cross Tables Response Questions Part 2 of Questionnaire

Page 119 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Tables summarising outcome of part 2 of the questionnaire

All respondents used the following scale: 1 – Completely disagree 2 – Partially disagree 3 – Partially agree 4 – Completely agree

The number of respondents in these following cross tables is:

Rank Implementation Total Senior staff Mid-level staff Office staff HQ 9 31 1 41 Field offices 8 57 100 165 Project offices 6 13 6 25 Admin / Finance 9 3 6 0 offices Total 26 107 107 240

Question 2.1 : Non-engineering disciplines (economists, sociologists, agriculturalists, environment, transport planners) play currently an important role in the planning process.

Rank Implementation Total Senior staff Mid-level staff Office staff HQ 3.0 3.0 3.0 3.0 Field offices 2.9 3.3 3.2 3.2 Project offices 3.3 3.0 2.5 3.0 Admin / Finance 3.7 3.3 3.8 n.a offices Total 3.1 3.2 3.1 3.2

Question 2.2: BWDB's in house capacity is not adequate for proper project planning (conducting feasibility studies, writing ToR's for consulting services).

Rank Implementation Total Senior staff Mid-level staff Office staff HQ 2.2 2.8 2.0 2.6 Field offices 2.9 2.6 2.1 2.3 Project offices 2.2 1.9 2.0 2.0 Admin / Finance 2.0 2.3 1.8 n.a. offices Total 2.4 2.5 2.1 2.3

Page 120 September 2013 Institutional and Financial Assessment

Question 2.3: The river bank protection designs made by BWDB are in conformity with technical requirements.

Rank Implementation Total Senior staff Mid-level staff Office staff HQ 3.8 3.6 4.0 3.7 Field offices 3.5 3.7 3.7 3.7 Project offices 3.8 3.9 3.0 3.7 Admin / Finance 3.4 3.3 3.5 n.a. offices Total 3.7 3.7 3.7 3.7

Question 2.4: BWDB constructs all river bank protection works in conformity with design requirements

Rank Implementation Total Senior staff Mid-level staff Office staff HQ 3.3 3.0 4.0 3.1 Field offices 3.1 3.6 3.7 3.6 Project offices 2.7 3.0 3.3 3.0 Admin / Finance 3.2 3.0 3.3 n.a. offices Total 3.1 3.3 3.7 3.5

Question 2.5: GoB procurement guidelines and practices are appropriate to ensure transparency and cost effectiveness in contracting.

Rank Implementation Total Senior staff Mid-level staff Office staff HQ 3.8 3.2 4.0 3.4 Field offices 3.3 3.5 3.5 3.5 Project offices 3.2 3.6 3.8 3.6 Admin / Finance 3.1 2.3 3.5 n.a. offices Total 3.3 3.4 3.5 3.4

Question 2.6: Project implementation is delayed often due to inadequate planning and lack of management capacity of BWDB.

Rank Senior staff Mid-level staff Implementation Total Office staff HQ 2.7 2.8 2.0 2.8 Field offices 2.6 2.9 2.7 2.7 Project offices 2.8 2.2 2.8 2.5 Admin / Finance 3.1 3 3.2 n.a offices Total 2.7 2.8 2.7 2.7

Question 2.7.1: Inadequate information about the maintenance status is a problem for O&M.

Page 121 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Rank Implementation Total Senior staff Mid-level staff Office staff HQ 3.6 3.0 2.0 3.1 Field offices 3.1 2.9 2.9 2.9 Project offices 3.3 3.0 2.8 3.0 Admin / Finance 3.0 2.7 3.2 n.a. offices Total 3.3 3.0 2.9 3.0

Question 2.7.2: Lack of interest of BWDB staff is a problem for O&M.

Rank Implementation Total Senior staff Mid-level staff Office staff HQ 2.6 2.6 1.0 2.6 Field offices 2.3 2.3 1.9 2.1 Project offices 2.9 1.9 2.2 2.2 Admin / Finance 2.7 2.7 2.7 n.a. offices Total 2.6 2.3 1.9 2.2

Question 2.7.3: Lack of an adequate budget allocation framework is a problem for O&M.

Rank Implementation Total Senior staff Mid-level staff Office staff HQ 3.3 3.1 1.0 3.1 Field offices 3.0 3.2 3.0 3.1 Project offices 3.8 3.9 3.0 3.6 Admin / Finance 3.2 3.0 3.3 n.a offices Total 3.3 3.2 3.0 3.1

Question 2.7.4: Problems of O&M are caused by lack of funds.

Rank Implementation Total Senior staff Mid-level staff Office staff HQ 3.9 3.3 4.0 3.5 Field offices 3.8 3.9 3.8 3.8 Project offices 3.7 3.9 3.3 3.7 Admin / Finance 3.4 3.7 3.3 n.a. offices Total 3.8 3.7 3.8 3.7

Question 2.7.5: Problems of O&M are caused by lack of participation of beneficiaries.

Rank Implementation Total Senior staff Mid-level staff Office staff HQ 3.0 2.7 3.0 2.8 Field offices 2.9 2.6 2.6 2.7 Project offices 3.5 3.0 2.7 3.0 Admin / Finance 3.8 3.7 3.8 n.a. offices Total 3.2 2.8 2.6 2.8

Question 2.8: Contractors are able to adequately control quality of their work and do this effectively in practice.

Page 122 September 2013 Institutional and Financial Assessment

Rank Implementation Total Senior staff Mid-level staff Office staff HQ 2.1 1.7 2.0 1.8 Field offices 2.1 2.1 2.4 2.3 Project offices 2.2 1.6 2.0 1.8 Admin / Finance 1.9 1.7 2.0 n.a. offices Total 2.1 1.9 2.4 2.1

Question 2.9: BWDB always consults other relevant GoB institutions at the central level when planning its projects and takes their priorities into consideration.

Rank Implementation Total Senior staff Mid-level staff Office staff HQ 3.0 2.9 3.0 2.9 Field offices 2.4 3.0 2.9 2.9 Project offices 2.7 2.9 2.8 2.8 Admin / Finance 3.2 3.0 3.3 n.a. offices Total 2.7 3.0 2.9 2.9

Question 2.10: Consultation of Local Government Institutions by BWDB during project planning is often inadequate.

Rank Implementation Total Senior staff Mid-level staff Office staff HQ 2.3 2.3 2.0 2.3 Field offices 2.5 2.4 2.5 2.5 Project offices 3.0 2.2 2.3 2.4 Admin / Finance 1.9 2.3 1.7 n.a. offices Total 2.5 2.3 2.5 2.4

Question 2.11: BWDB always consults water users when planning its projects and takes their priorities into consideration.

Rank Implementation Total Senior staff Mid-level staff Office staff HQ 3.0 3.3 4.0 3.3 Field offices 3.4 3.5 3.5 3.5 Project offices 3.0 3.1 2.7 3.0 Admin / Finance 2.8 2.0 3.2 n.a. offices Total 3.0 3.4 3.5 3.4

Page 123 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Question 2.12: BWDB promotes the adoption of innovative designs for river bank protection and embankments and structures.

Rank Implementation Total Senior staff Mid-level staff Office staff HQ 3.7 3.3 3.0 3.4 Field offices 3.1 3.3 3.3 3.3 Project offices 3.5 2.9 3.2 3.1 Admin / Finance 3.3 2.7 3.7 n.a. offices Total 3.4 3.3 3.3 3.3

Question 2.13: BWDB promotes the adoption of innovative management practices (for example Management Information Systems, Accounting, Asset inventory, Human Resources Management).

Rank Implementation Total Senior staff Mid-level staff Office staff HQ 3.3 3.3 3.0 3.3 Field offices 3.3 3.1 3.2 3.1 Project offices 3.5 3.2 2.8 3.2 Admin / Finance 3.3 3.7 3.2 n.a. offices Total 3.4 3.2 3.1 3.2

Page 124 September 2013 Institutional and Financial Assessment

Attachment 4 to Appendix 2 :

Lists of challenges and strengths reported

Page 125 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Table 4.1: Strengths reported

Page 126 September 2013 Institutional and Financial Assessment

Table 4.2: Challenges reported

Page 127 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Page 128 September 2013 Institutional and Financial Assessment

APPENDIX 3: Financial Management Assessment BWDB

Page 129 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

39 CURRENCY EQUIVALENT (As of Feb 2013) Currency Unit: Bangladesh Taka (TK) 1 USD = 79 TK 1 TK = 0.01265 USD

ABBREVIATIONS

ADB Asian Development Bank ADG Additional Director General ADP Annual Development Program BAS Bangladesh Accounting Standard BWDB Bangladesh Water Development Board CAG Comptroller and Auditor General DPEC Departmental Project Evaluation Committee DG Director General EA Executing Agency ECNEC Executive Committee of the National Economic Council ERD Economic Relations Division FAP Foreign Aided Project FAPAD Foreign Aided Project Audit Directorate FAR Financial Administration Regulation FMA (Q) Financial Management Assessment (Questionnaires) GC Governing Council GIS Geographical Information System GO Government Order GOB Government of Bangladesh HIMS Hydrological Information Management System IA Implementing Agency ICAB Institute of Chartered Accountants of Bangladesh ICT Information and Communication Technology IMED Implementation Monitoring and Evaluation Division LGED Local Government Engineering Division MFF Multi-tranche Financing Facility MIS Management Information System MOF Ministry of Finance MOP Ministry of Planning MOWR Ministry of Water Resources MRP Main River Flood and Bank Erosion Risk Management Program PD Project Director PEC Project Evaluation Committee PFR Periodic Financing Request PMIS Personnel Management Information System PMO Project Management Organization PPTA Project Preparatory Technical Assistance RAC Regional Accounting Centre RPA Reimbursable Project Aid SIMS Scheme Information Management System WARPO Water Resources Planning Organization WB World Bank WMIP Water Management Improvement Project (under the World Bank) WMO Water Management Organization

39Source: Exchange rate quoted by the Central Bank of Bangladesh dated 5th Feb 2013

Page 130 September 2013 Institutional and Financial Assessment

A. Financial Management Assessment

Introduction: This report describes the financial management capability of Bangladesh Water Development Board (BWDB) to deal with the proposed Main River Flood and Bank Erosion Risk Management Program (MRP) under the Asian Development Bank’s (ADB) Multi-tranche Financing Facility (MFF). It also addresses the capacity building necessary to meet any shortfalls in BWDB’s capacity. This report has been prepared in close cooperation with the PPTA team for the Irrigation Management Improvement Investment Program.

According to ADB’s Guidelines for Financial Management and Analysis of Project, a financial management assessment (FMA) is a review designed to determine whether or not the financial arrangements of the executing agency (EA) or implementation agency (IA) are considered capable of, and adequate for recording all transactions and balances, supporting the preparation of regular and reliable financial statements, safeguarding the entity’s assets, and are subject to audit. These guidelines describe ADB’s approach to undertaking a financial management assessment which involves the following steps: a. The use of a standard questionnaire to assess the financial management of the EA or IA – in this case BWDB; and b. Based on the results of questionnaire, identify issues for review, identify issues of risks associated with the entity’s financial management systems and determine the most appropriate risk mitigation measures for both BWDB and ADB. The assessment of the financial management system covers a broad range of activities including legal status and statutory reporting requirements, procedures for making payments; accounting policies of transactions; recording and budgeting; financial planning data; record keeping; cost accounting including cost control; internal controls; internal and external audit; cash disbursements; fund flow arrangements, and policies and procedures of BWDB.

Based on these responses from BWDB, ADB will undertake to highlight their accounting and financial capacity including risks associated with their financial management systems and proposes the appropriate risk mitigation measures to improve project preparation and implementation.

Brief Description of the Executing Agency (EA) BWDB, acting as both the EA, is a statutory body created by Presidential Order No 59 in 1972 (as the successor to the East Pakistan Water and Power Development Board) to develop and manage water resources in the country and reports directly to the Ministry of Water Resources (MOWR). The position and responsibility of BWDB was confirmed through the national parliament by the enactment of BWDB Act 2000 and guided by the National Water Policy 1999. Its principal responsibilities are to build, operate and maintain physical infrastructures such as embankment; sluice /regulator; bank revetment; barrage/pumping plant; irrigation canal; dredging and excavation work of river / khal for flood inundation; salinity intrusion; riverbank erosion; and, provide improve irrigation and drainage.

BWDB is currently managing 45 projects involving: a) River training and flood protection along major rivers; b) Other river training works including procurement of dredger and pilot dredging; c) Coastal work; and d) FCDI work, including drainage, town protection, irrigation projects and embankments at smaller rivers. Of the 45 projects, 6 projects are donor assisted projects and 39 are funded exclusively by the Government of Bangladesh (GOB). Another 9 more government funded projects were recently approved.40 (See Appendix 2)

40Source: BWDB – Chief Monitoring Unit 26 Feb 2013

Page 131 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

B. Summary of Findings from the Financial Management Assessment Questionnaire

Fund Flow Arrangement: Under the MFF program, fund flow arrangements are basically divided into two components – contributing portion of the GOB, and funding from ADB or other aid donor agencies.

All projects go through a very rigorous process of formulation and approval of the Development Project Proposal (DPP) - the instrumental document implementation activities. Initial data are collected from the divisions, circle lines and zones. The subsequent steps involve the Project Management Organisation (PMO), Chief Planning, Additional Director General (Planning), Director General (DG) and Governing Council’s (GC) approval from BWDB, before the DPP is sent through to the inter ministerial chain for approval, and this consist of the Ministry of Water Resources (MOWR) – Departmental Project Evaluation Committee (DPEC) – which is composed of representatives from the Ministry of Planning, Ministry of Finance (MOF), Local Government Engineering Department (LGED), Director General (DG) of BWDB and the DG of Water Resources Planning Organization (WAPRO), and is usually headed by the Secretary, MOWR.

Following the DPP endorsement by the DPEC, it will be forwarded to the Planning Commission – Ministry of Planning for approval. At the Planning Commission, this DPP will be reviewed by officials within the Planning Division before forwarding the same for consideration through an inter-ministerial Project Evaluation Committee (PEC) headed by representatives from the Agriculture, Water Resources, Rural Institutions and Planning Commission. The PEC task is to ensure that: i) the DPP meets with the government’s development goals and objectives; ii) is consistent with the GOB five year Plan; and iii) can be accommodated through available government’s fiscal resources. Once the DPP meets with the said parameters, the PEC will recommend the DPP for approval based on the following approval criteria:

a. For projects costing Bangladesh Taka (TK) 250 million (US $ 3.16 mil) and below, the approving authority will be the Planning Minister; and b. For projects costing more than TK 250 million, the DPP is placed before the Executive Committee of the National Economic Council (ECNEC) under the auspices of the Prime Minister’s Office for consideration. Once the draft DPP is approved, the decision will then be relayed to concerned Ministries and Agencies for information and action. Following the approval as stated above , the MOWR will then issue a Government Order (GO) – which is an official government issued administrative approval for BWDB to proceed. Following DPP approval under any of (a) or (b) authority, this project will be automatically included in the Annual Development Plan (ADP) with necessary budgetary allocation for the particular fiscal year which will enable BWDB to make the request for disbursement. – (ADP will be further discussed under Budgeting System below). c. For the disbursement of funds from the GOB, the MOWR will send the fund release proposal received from BWDB to the Finance Division of MOF for their concurrence before funds are ultimately deposited into a Central Account of the BWDB. Funds from GOB are usually disbursed in 4 quarterly installments, and this will then be further disbursed through to the various Regional Accounting Centers (RACs) and subsequently payments to the respective service providers. d. The process of payment at the RAC to the service providers – assuming that all invoices are submitted according to the contractual work orders as prescribed by the contract agreement, generally, it will take between 3-7 days before funds are ultimately disbursed to the service providers. After completing the approval processes as described under point 8 and 9; for ADB funding, the PD will apply for fund disbursement directly to ADB according to the prescribed PFR form under the MFF requirements. BWDB, will at the same time, also apply to the finance division of the MOF through MOWR for permission to open an imprest account. Once MOF approved the application, it will instruct

Page 132 September 2013 Institutional and Financial Assessment the Central Bank of Bangladesh to open an imprest account for BWDB against the specific project in foreign currency, and BWDB will in turn, open another corresponding account denominated in local currency at one of the authorised commercial banks – for the purpose of paying administrative and / or services provided by local service providers, and this banking information will then be transmitted to ADB for the remittance of funds. For all subsequent MFF projects, it is expected that a Second Generation Imprest Account will take place once the sub-project is approved.

Typically, at the beginning of each fiscal year, the PD of BWDB has drafted a proposal for fund usage for the entire year for utilization of the Reimbursable Project Aid (RPA) as per ADP provision for the year.

DPP preparation and approval is strictly regulated . In general, it takes between 3 months (assuming the DPP is meticulously detailed and no objection from any ministries) to 1 year for a DPP approval before it gets adopted into the ADP budget. DPP budgets and plans are very detailed leaving little room for adaptation. The number of DPP revisions allowed is limited to two, and any DPP revision tends to take considerable time before approval is finally given. Based on the recent discussion between ADB, BWDB and MOWR, both BWDB and MOWR have committed to obtaining DPP approval from ECNEC within 5 months commencing from the submission of the draft DPP for ADB’s MFF funded projects.41

Staff and Organization Structure of BWDB The BWDB organization is structured across functional lines at the head office level whose responsibilities are mainly in planning, coordination, monitoring and maintaining liaison with inter- ministerial agencies. Its field units, on the other hand, are organized according to geographical areas with each unit responsible for a specific geographical area, including project execution and data collection as well as initial project planning. Field units are also responsible for O&M of completed projects.

The BWDB policy making body – the Governing Council (GC), as instituted under BWDB Act 2000 is the policy making body which oversees general operation of the organization and gives policy directives. It comprises representatives from concerned ministries, representatives from civil society and project beneficiaries. The Minister in charge of MoWR is ex-officio chair of the GC. The Director General (DG),also an ex-officio member of the GC, is the chief executive of the organization who guides and oversees the organizational activities, makes policies for day to day operation. The DG is assisted by 5 Additional DG's broken down according to their functional responsibilities, and 6 other functional support services. BWDB field work units are divided into 8 zones – with each zone covering between 5-8 administrative districts. Each zone manages 2 or more circle lines, and each circle line is again broken down into 2 or more divisions. Currently, there are 30 circle lines with 78 divisional units spread across the 8 zones. The 30 circle lines consist of 19 circle lines which basically implement projects; 6 design circle lines; 1 monitoring circle line and 1 design circle line that reports to the Chief Engineer under the Food for Work program; and 3 hydrology circle lines.42 Divisional units are generally considered a very important aspect of project work as it is responsible for its operations and maintenance of infrastructures located within its command area; including initial planning, data collection, procurement planning, and administration. The details of the BWDB organizational structure and field units can be found in Appendix 1. BWDB’s accounting and financial functions are under the purview of ADG Finance who is assisted by a Comptroller of Finance and Accounts, to oversee the reporting functions from the Director of Finance and Director of Accounts, while the Director of Audit reports directly to ADG - Finance. The Director of Accounts is responsible for the 25 Regional Account Centers (RACs) and 1 Financial Accounting Center – which typically disburse funds to the RAC for payment to service providers – See Appendix 3.

41Source: Draft Aide Memoire TA 8154 Inception Report: 29th Jan -5th Feb. 42 Source: BWDB – Chief Monitoring Unit - 26 Feb 2013

Page 133 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Under the MRP, it is expected that BWDB will appoint a the Chief Engineer of the newly established office for River Management as Project Director (PD) to take charge of the day-to-day management and administration of the MRP and its other related activities. In addition, an Inter-Ministerial Steering Committee (chaired by the Secretary MOWR) will be formed to address policy level and coordination issues involving the principal stakeholders involved in the Program. Details of the composition and qualifications of staff managing the MRP program have yet to be determined and it is suggested that this be decided upon before the commencement of the MRP program. Since Dec. 1984, BWDB has undergone a reorganization of its overall corporate structure reducing its staff positions from a high of 18,813 staff to the present staff strength of 6,451 positions against a sanctioned head count of 8,935 positions – which represents a staff shortage of about 28% or 2,484 vacant positions.43 In addition to filling these shortfalls, BWDB is also besieged with other challenges such as retaining junior and mid-level professionals which has shown a declining trend, and dealing with staff approaching retirement (totaling 2701 over the next 5 years).44 Preparation is currently in the final phase of obtaining approval from the Ministry of Finance (after prior approval was obtained from Ministry of Establishment) for BWDB to increase its current sanctioned staff position from 8,935 to 13,594 or a 52.1% increase which represents an additional 4,659 positions. Of the 88 young engineering staff recruited in 2005, only 45 are currently still with BWDB or a retention rate of 49%.45 It also appears that BWDB does not have any management succession plan in place as those sanctioned for retirement will automatically be replaced based on the principle of seniority. Urgent action is required to meet the imminent shortfall of staff, that is currently posing a strain on BWDB's operational capacity.

Accounting Policies and Procedures BWDB has adopted a Cash Accounting System in accordance with the Bangladesh Accounting Standard (BAS) as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB). Its accounting policies and procedures are guided by a written procedure manuals in accordance to the Bangladesh Accounting System (BAS), Financial Administrative Regulations (FAR), Financial Rules and Policies, Audit Manuals, Audit Codes, Government Accounting Codes, Detailed Job Descriptions, and a Detailed Description on the Rules of Business that essentially describes the overall responsibilities of each of the departments under the purview of ADG– Finance.

These procedure manuals, distributed to all RACs and within the Finance department, also contain among others: duties and responsibilities of finance personnel; delegation of administrative and financial approving authority; detailed guidelines on safeguards, conflict of interest, and disciplinary actions taken in the event of failure to follow such protocol as prescribed under Service Rule 1986. However, these manuals are not regularly updated and the last update that was done of the financial procedure manual was in 2006.

All accounting records and supporting documents are retained by the respective RAC offices in charge of the specific project and allow for proper auditing to take place by both internal and external auditors. Monthly reporting is also sent by the respective RAC offices to the Director of Accounts informing him about all project disbursement activities and amounts utilized.

Currently, BWDB’s accounting system software uses a 2006 version of MS Great Plains Dynamic Accounting Software. This system is not fully integrated with the project accounting system at the RAC level and most information transmitted is via email and ‘post mailing’ of thumb drives raising issues of sensitive data security. The accounting system software has not been updated since 2006; there is also no system maintenance of the software, and it is vulnerable to breakdown at any time. While the financial system is somewhat structured, it lags behind more innovative approaches to modern financial

43Source: BWDG – Director of Staff Development 26 Feb 2013 44 Source: BWDB Director of Staff Development 45 Source: TA 8054 Draft Institutional report Jan 2013

Page 134 September 2013 Institutional and Financial Assessment management and project management. The present software also is not linked to a Management Information System (MIS).

Under the World Bank funded Water Management Improvement Project (WMIP), an Information and Communication Technology (ICT) upgrade is among one of the envisaged project components. It is recommended that any improvement of financial administration supported by the MRP is coordinated with this project so that the financial and accounting, and project management improvements can be properly integrated with the overall systems of BWDB.

Budgeting System The preparation of BWDB annual budgeting and planning starts from March – June each year for the fiscal year which commences from 1 July next. It goes through a very rigorous process involving the field offices, which supply all relevant project data and funding requirements for the year. The PD then prepares the ADP request for the various projects and sends this to the Director of Program, and thereafter up to the chain of command before it is sent to the MOWR, and following this, to the Planning Commission, MOF before it gets adopted into the ADP. The detailed process flow is documented in Appendix 3. According to the regulatory requirements, BWDB is required to prepare a report comparing its actual expenditures against their budgeted expenditure - based on the actual funds released and submits this to MOWR and the Implementation, Monitoring and Evaluation Division (IMED) (of the Ministry of Planning) and MOF. In addition, BWDB also publishes annually its actual financial performance against its budgeted figures and submits this to these ministries. The efficiency of the budgeting process could be enhanced by reducing the number of steps and computerised linkages between the division and circle offices and corporate level so that information can be collated more efficiently.

Internal and External Audit The purpose of internal and external auditing is to detect anomaly within the accounting process and to ascertain if policies, procedures and directives have been strictly adhered to and in accordance to the BAS and other administrative regulations. The presence of auditing also serves as deterrence against attempt to create security breaches as well as provides an audit trail to determine the extent of any attempted security breach so that action can be taken promptly. BWDB's internal audit department audits the financial performance of all the RACs, circle lines and divisional offices in order to ensure that each office complies with policies and operating procedures in accordance to the procedure manual with respect to payments, receipts, record keeping and debt recovery. It also audits the accounting vouchers to ensure that these comply with the correct accounting codes as prescribed by the GoB. The Director of Audit reports its audit findings to the ADG Finance and ADG Finance will in turn submit this to DG. Best industry practise would require that audit findings be submitted directly to the Board of Directors. In the case of BWDB, it should be submitted directly to the GC where the DG will be required to answer to audit anomaly if any. The present reporting channel of the audit department would need to be re- evaluated under the MRP program. The Comptroller and Auditor General (CAG), an independent Government Ministry, typically audits the projects funded by the GOB. For FAP activities, the current audit practise is to use the Office of Director General – Foreign Aided Project Audit Director (FAPAD) under the auspices of the CAG to perform this task. FAPAD auditors perform its audit annually – usually 4 months after the end of the fiscal year. In addition, there are two other audits that are being performed by CAG on an intermittent basis: i) A Special Audit is performed in the event of any complaint raised on any project activity or any financial irregularity issue reported; and ii) A Performance Audit is conducted to ensure that GOB funded

Page 135 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program projects are properly and efficiently implemented, and that the beneficiaries of projects receive the envisaged benefits. BWDB’s financial statements are externally audited yearly by an external auditing firm – Narul Azim and Company. Selection of external auditors is a yearly event procured through a tendering system based on TOR provided. At the time of this review, the external auditor’s reports for the last three years were not available for review and a follow up is recommended. For the administration of the MRP program, the external auditing arrangement will need to be determined. This should be agreed upon under the MFF Program and prior to the commencement of the PFR 1.

Information Systems Apart from the accounting system which uses a 2006 version of MS Great Plains Dynamic Accounting software, other systems that exist within the BWDB are as follows:46 a. Geographical Information System (GIS) with a scheme Database – which is dispersed across different project units within BWDB. b. Personnel Management Information System (PMIS) based on 1993 type database (Foxpro). It is considered outdated and has limited usage. c. Scheme Information Management System (SIMS) which has limited access to information, and, d. Hydrological Information Management System (HIMS) - This is used for flood forecasting and warning system and requires upgrading. Existing Management Information Systems (MIS) in BWDB are deemed outdated, not integrated, and maintenance and up-keeping of these systems is inadequate, and not in line with the modern approach to corporate MIS requirements – which involves the integration of technical, financial, institutional and project management information system necessary to produce an ‘on demand, real time’ management report. As mentioned in point 24 above, as WB has already submitted its ICT proposal to BWDB, it would be advisable for ADB to appoint an IT/ Institutional specialist to review the overall ICT plan so that capacity building or improvements can be incorporated under the WB WMIP – ICT funded component for the purpose of the MRP program.

C. Conclusions and Recommendations BWDB is a statutory organization tasked with numerous responsibilities from building, operating and maintaining physical infrastructures, to providing and improving irrigation, drainage and navigation services. Its on-going reorganization, a time consuming project approval process, information technology constraints and staff shortages poses many challenges for the implementation of MRP.

Some of the main issues to be addressed prior to the commencement of MRP program are highlighted below and it is recommended that this be considered as follows:

a. The DPP format and approval process require a detailed definition of project activities and budgets. DPP revisions are time-consuming and the number of revisions allowed is limited to two. The resulting rigidity in project definition and budget allocation is at odds with the inherent long-term commitment and required flexibility of the MFF. For the MRP program it is envisaged that a DPP will be prepared for each tranche. Tranches, however, have a 3-4 years' duration, and in this period substantial changes of river characteristics occur, that may required adjustment of plans. It is therefore proposed that the DPP for the MFF projects allows allocation of some funds on the basis of block allocations, where the detailed planning and designs of the works to be included in the projects is spelled out progressively during project implementation, without the need to continuously updating the DPP or formulating a new one.

46Source: TA 8054 Draft Institutional report Jan 2013

Page 136 September 2013 Institutional and Financial Assessment

b. To improve the efficiency of work processes, it is recommended that and adequate computerized project information system with required inbuilt processing facilities and linking concerned units be put in place so the DPP and ADP formulation and approval is not delayed due to information gaps or incorrect data. Any delay in the approval process may result in cost escalation / overrun that could potentially impact the overall project cost – taking into consideration the existing provision of physical and price contingency allocation to the project. c. The current practice of auditor’s report sent through to ADG - Finance is not in accordance to best industry practice, and it is suggested that changes be made so that the audit report is sent directly to the GC. d. For ADB’s managed MFF projects, a copy of this external audit report is also recommended to be sent directly to ADB. e. ADB is advised to review the last three years of Auditor’s report which was not available at the time of this review. f. For External Auditing, ADB is advised to discuss with BWDB if they are agreeable to the continued practice of using FAPAD – viewed as independent external auditor, to continue with the external auditing work under the MFF program, or a preference to change and employ an internationally recognized auditing firm to audit all its MFF financed projects. g. For all of ADB’s projects under the MFF program, it is recommended that the assets be insured during construction and after completion of the projects, and these assets should remain insured during the life of the loan repayment period. BWDB currently does not insure its asset after the project construction period. h. Improvements to BWDB’s ICT system are currently being undertaken by WB under their WMIP program, and it would be beneficial for ADB to obtain a copy of ICT proposal so that its IT specialist can review and comment on any shortfall within BWDB IT system and addressed this before WB initiate their ICT reform program. The modern approach to Project Management System and other system integrations will be necessary to improve administrative controls, data accuracy, efficiency, and ultimately produce an on-line and on-demand MIS to meet the expectation for better management decision making process. i. For the management of the MRP program, BWDB would benefit from training its designated PMO staff in ADB’s procedures in Financial Management, Procurement and Disbursement (especially on the latest ADB User’s Guide to Prequalification of Bidders, Jan 2013 - in view of the advance procurement action to be undertaken), and Project Management Reporting System.

Attachment 1: Financial Management Assessment Questionnaires Topic Response and Remarks 1. Executing Agency (EA) 1.1 What is the entity’s legal status / The Bangladesh Water Development Board (BWDB), acting as registration? Executing Agency, is a statutory body created by Presidential Order No 59 in 1972 (as successor to the East Pakistan Water and Power Development Authority) to develop and manage water resources in the country and reports directly to the Ministry of Water Resources (MOWR). Thereafter, the position and responsibility of BWDB was further enhanced through the national Parliament by the enactment of BWDB Act 2000 and guided by the National Water Policy 1999 1.2 Has the entity implemented an Yes, BWDB has implemented numerous externally funded projects externally financed project in the past from ADB, WB, and the Netherlands. Other donors included the (if so, please provide details)? EU, WFP, Canada, and JICA.

Page 137 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Topic Response and Remarks There are currently 45 projects under implementation and 9 more government funded projects were recently approved. Details of these projects can be found in Appendix 2. 1.3 What are the statutory reporting There are 5 reports that BWDB prepares regularly for the IMED – requirements for the entity? Ministry of Planning. These reports basically consist of: 1) Project Monitoring; 2) Physical and Financial target for the year; 3) Quarterly Financial Progress Report; 4) Project Completion Report; and 5) Monthly Implementation Progress Review on ADP utilization.

In addition, BWDB is also required to produce an annual report after the end of each fiscal year (which ends on 30 June) by 30 September and submit this to the MOWR and IMED. This report covers Development and O&M programs executed during the year; achievements against targets; statements on fund received and utilization; analysis of organizational and administrative issues. Detailed links to the prescribed forms can be found in Appendix 5. 1.4 Is the governing body for the program BWDB is an independent Agency (Board), but reports all its independent? activities to MOWR and will be required to seek approval for all its administrative and project requirements. 1.5 Is the organizational structure BWDB organization structure is currently undergoing appropriate for the needs of the reorganization and staff realignment. There are currently staff program? shortages of about 28 % or 2,484 vacant positions within the BWDB. In the envisaged structure the establishment of an office of the Chief Engineer River Management is envisaged. This is the appropriate organizational unit to accommodate the work of MRP. 2. Fund Flow Arrangement 2.1 Describe (proposed) program fund For externally financed projects, there are basically two parts of flow arrangements, including a chart the fund to be used in project financing: 1) GOB budget and 2) and explanation of the flow of funds donor funds. Funds received from donors including ADB are from ADB, government and other deposited into an imprest account of an approved commercial financiers. bank. The details of the fund flow are described in under point 7 - 12 in the main FMA report. 2.2 Are the (proposed) arrangements to The proposed arrangement generally follows approved transfer the proceeds of loan (from government protocols, and while it is generally satisfactory, the the government/ Finance Ministry) to approval processes to transfer funds are often time consuming, the entity satisfactory? and improvements can be made to shorten this process. 2.3 What have been the major problems The number of steps required to obtain funds are time consuming. in the past in receipt of funds by the entity? 2.4 In which bank will the Imprest The MOF, at the request of BWDB, will usually approve the Account be opened? opening of an foreign currency Imprest account with the Central Bank (Bangladesh Bank) and a corresponding local currency account in any authorized commercial bank in Bangladesh against the specific foreign aided project. 2.5 Does the (proposed) Program The establishment of a PMO has not yet been determined for the Management Organization (PMO) MRP program and is still under consideration, and as such, the have experience in the management capability and capacity cannot be established at this time. of disbursement from ABD? However, BWDB has ample experience managing large scale donor-funded projects, also projects funded by ADB. 2.7. Does the entity have/ need a capacity BWDB does not have the capacity to manage foreign exchange risk

Page 138 September 2013 Institutional and Financial Assessment

Topic Response and Remarks to manage foreign exchange risks? as this task is undertaken by the MOF on behalf of BWDB 2.8 How are the counterpart fund Counterpart funds are assessed based on the approved ADP and accessed? are usually released in 4 quarterly installments made through the Finance Division of the MOF into the Central Account of BWDB. The fund request is usually done by BWDB request for funds to the Ministry of Finance through MOWR. 2.9 How are payments made from the GOB counterpart funds are disbursed through the various Regional counterpart funds? Accounting Centers (RACs) for payment of goods and services procured 2.10 If part of the project is implemented If part of the project is implemented by NGO or communities, by communities or NGOs does the PMO is required under the IMED requirements to regularly report PMO have the necessary reporting its project progress and status. and monitoring features built into its systems to track the use of project proceeds by such agencies? 2.11 Are the beneficiaries required to Beneficiaries are not required to contribute to the project cost of contribute to project costs? If MRP. beneficiaries have an option to contribute in kind (in the form of labor), are proper guidelines formulated to record and value in the labor contribution? 3. Staffing 3.1 What is the organizational structure The current organization structure of the accounting department of the accounting department? Attach is shown in Appendix 3-3. Under the existing organizational an organization chart. structure, BWDB’s finance and accounting operations are headed by the Additional Director General (Finance). There is a Comptroller of Finance and Account who is in charge of two directors - Directors of Finance and Director of Accounts. Director of Audit reports directly to the ADG -Finance. Staffing is as follows:

ADG – Finance: (No of sanctioned post: 7)

Controller of Finance and Accounts (No of sanctioned post: 7) • One Accounts Officer and the remainder are supporting staff

Director of Accounts (No of sanctioned post: 110) • Director, Accounts • Additional Director in charge of RAC-East • Additional Director in charge of RAC-West • Additional Director, Accounts • There are six Deputy Directors of Finance

Director of Finance (No of sanctioned post: 38) • Director, Finance • Additional Director, Finance • Three Deputy Directors

Director of Audit (No of sanctioned post: 53) • Director, Audit • Additional Director, Audit

Page 139 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Topic Response and Remarks • There are three Deputy Directors • Auditors and support staff

Trustee Board - Staff Welfare (No of Sanctioned post: 5) 3.2 Identify the (proposed) accounts staff, Key Personnel in the Director of Accounts: including job title, responsibilities, • Mr. Sanaul Haque, Director Accounts, B Com (Hons) M Com educational background and in Accounting, 14 years experience. professional experience. Attach job • Mr. Rezaul Karim, Additional Director-RAC West, B Sc (Hons) descriptions and CVs of key M Sc in Statistics, 14 years experience. accounting staff. • Mr. Kabir Ahmed, Additional Director-RAC East, BSS (Hons) MSS in Economics, 14 years experience. • Mr. Ekramul Kabir, Deputy Director, B Com (Hons) M Com in Management, 13 years experience. • Mr. Mehedi Hasan, Deputy Director, B Com (Hons) M Com in Marketing, 13 years experience. • Mr. Zayed Hossain, Deputy Director, B Sc (Pass). 3.3 Is the project finance and accounting Currently under the ADG Finance Department, there is a function staffed adequately? sanctioned headcount of 220 against the current staff of 168 positions or about 24% staff shortage or 52 vacant positions. 3.4 Is the finance and accounts staff The account staffs are graduates from the commerce or adequately qualified and accounting field with experiences in different operations of BWDB. experienced? 3.5 Is the project accounts and finance No, staffs have not been trained ADB project management staff trained in ADB procedures? procedures but have experience in working with Foreign Aided Projects. ADB training procedures is therefore recommended. 3.6 What is the duration of the contract Accounts staff are permanent staff of BWDB with the finance and accounts staff? 3.7 Indicate key positions not contracted Key account staffs of the PMO are all permanent BWDB staff. yet, and the estimated date of appointment. 3.10 Does the project have written Yes, all BWDB staffs have well defined job descriptions that position descriptions that clearly include tasks and responsibilities and a procedure manual that define duties, responsibilities, and line guides them on operational and financial authority. of supervision and limits of authority for all of the officers, managers and staff? 3.11 At what frequency are personnel Staff rotation occurs every few years. transferred? 3.12 What is training policy for the finance Training is regularly arranged by the director of training to update and accounting staff? staff on the latest financial government regulations and BWDB’s accounting system and policies if any. 4. Accounting Policies and Procedures 4.1 Does the entity have an accounting Yes, the accounting system adopted by BWDB allows for proper system that allows for the proper recording of all project financial transactions based on an entity recording of the project financial accounting system. transactions, including the allocation of expenditures in accordance with the respective components, disbursement categories and sources of funds? Will the project use the entity accounting system? 4.2 Are controls in place concerning the The control mechanism are guided by BWDB Financial procedure

Page 140 September 2013 Institutional and Financial Assessment

Topic Response and Remarks preparation and approval of and other administrative and government manuals which transactions, ensuring that all stipulates the payment and disbursement approval process; and transactions are correctly made and including the assignment of accounting code which follows the adequately explained? prescribed government accounting codes which specify how all these transactions should be followed and recorded by the accounting department. 4.3 Is the chart of accounts adequate to Yes, a review of the Chart of Accounts shows that it is adequate to properly account for and report on record and report on project activities and its disbursement project activities and disbursement categories, and meet the requirements of IMED. The chart of categories? account is also consistent with the government prescribed economic and financial code - universal to all government offices. 4.4 Are cost allocations to the various Yes funding sources made accurately and in accordance with established arrangements? 4.5 Are the General Ledger and Yes subsidiary ledgers reconciled and in balance? 4.6 Are all accounting and supporting Yes, all accounting and supporting vouchers are kept at the documents retained on a permanent respective RAC offices where the project is implemented. basis in a defined system that allows authorized users easy access? Segregation of Duties 4.7 Are the following functional Yes, the functional responsibilities are segregated as follows: responsibilities performed by 1. The Project Director at PMO level, with approval from the zonal different units or persons (i) Chief Engineer, authorizes execution of transactions for goods and authorization to execute a services, transaction (ii) recording of the 2. Recording of transactions is done at the RAC level, and transaction, and (iii) custody of assets 3. Custody of assets is under the responsibilities of the Divisional involved in the transaction? level. 4.8 Are the functions of ordering, Yes, ordering, receiving, accounting and paying functions are receiving accounting for, and paying segregated. for goods and services appropriately segregated? 4.9 Are bank reconciliations prepared by Yes, bank reconciliation statements are generally prepared by the someone other than those who make Account Officer at the RAC level. or approve payments? Budgeting System 4.10 Do budgets include physical and Yes, budgets include physical and financial targets. financial targets? 4.11 Are budgets prepared for all Yes, budgets are prepared according to ADP requirements – which significant activities in sufficient undergo stringent checks from within BWDB and inter-ministerial detail to provide a meaningful tool approval for all approved foreign aided projects. Reports on with which to monitor subsequent project progress are regularly reported to MOWR, IMED and MOF performance? for ADB funded projects, and other reports will follow ADB report requirements to monitor project performance. 4.12 Are actual expenditure compared to Yes, actual expenditures are compared to the budgeted the budget with reasonable expenditures on monthly, quarterly and annual basis. Any frequency, and explanations required variation thereof will require an explanation to the MOWR and for significant variations from the IMED. In addition, if the yearly expenditures / achievements are budget. below 95% of the overall budget target, further explanation will be provided by BWDB to MOWR and IMED.

Page 141 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Topic Response and Remarks 4.13 Are approvals for variations from the Approvals for budget variation are required in advance from the budget required in advance or after MOWR and the and approved by MOF the fact? 4.14 Who is responsible for preparation The preparation and budget approval process and work flow is and approval of budgets? described in details under Appendix 4. 4.15 Are procedures in place to plan Yes, procedures are in place for field offices and for project project activities collect information consultants to plan the project activity requirements with the from the units in charge of the assistance from the field Zone, Circle Line and Divisional Line different components, and prepare under the command area. These are checked by PD before the budgets? finalizing the budgets. 4.16 Are the project plans and budgets of Yes, project plans and budgets are generally realistic as it goes project activities realistic, based on through vigorous checks from the technical and planning valid assumptions, and developed by departments before it gets adopted into the budget. knowledgeable individuals? Payments 4.17 Do invoice processing procedures Yes, payment procedures are very well spelt out in the procedure provide for (i) Copies of purchase manual and financial rules and meet with all the 4 criteria as orders and receiving reports to be mentioned. obtained directly from issuing departments? (ii) Comparison of invoice quantities, prices and terms, with those indicated on the purchase order and with recorded of goods actually received? (iii) Comparison of invoice quantities with those indicated on the receiving reports (iv) Checking the accuracy of calculation? 4.18 Are all invoices stamped PAID, dated, Yes, all invoices paid are clearly stamped PAID, dated, reviewed reviewed and approved and clearly and approved and account code assigned by the account marked for account code department. assignment? 4.19 Do Controls exist for the preparation Yes. Account staff generally prepares staff payroll based on their of the payroll and changes to the existing records and these are properly checked and approved by payroll properly authorized RAC or PD. Policies and Procedures 4.20 What is the basis of accounting (e.g Cash basis. cash, accrual)? 4.21 What accounting standards are Bangladesh Accounting Standards (BAS) followed? 4.22 Does the project have an adequate Yes. Projects are guided by BWDB financial procedure manual and policies and procedures manual to other government issued guidelines and procedures that guides guide activities and ensure receipt and payments and ensures all these activities are in accountability? accordance to prescribed policies and are subjected to annual internal and external audits. 4.23 Is the accounting policy and The accounting policy and procedure manual was last updated in procedure manual updated for the 2006. project activities? 4.24 Do procedures exist to ensure that Yes, the procedures are guided by FAR. only authorized persons can alter or establish a new accounting principle, policy or procedure to be used by the entity?

Page 142 September 2013 Institutional and Financial Assessment

Topic Response and Remarks 4.25 Are there written policies and Yes, as guided by FAR. procedures covering all routine financial management and related administrative activities? 4.26 Do policies and procedures clearly Under the Service Rule 1986, there are policies and procedures define conflict of interest and related that define conflict of interest and how they should be reported. party (transaction real and apparent) and provide safeguards to protect the organization from them? 4.27 Are manuals distributed to Yes appropriated personnel? Cash and Bank 4.28 Indicate names and positions of Project Director and Project Accounts Officer are the authorized authorized signatories in the bank signatories in the bank account account 4.29 Does the organization maintain an Yes. adequate, up-dated cashbook, recording receipts and payments? 4.30 Do controls exist for the collection, Yes timely deposit and recording of receipt at each collection location? 4.31 Are the bank and cash reconciled on Yes. a monthly basis? 4.32 Are all unusual items on the bank Yes. Generally the Cashier of RAC office prepares the bank reconciliation reviewed and approved reconciliation and all unusual items – if any, and this will be by a responsible official? approved by the head of the respective RAC office. 4.33 Are all receipts deposited on a timely Yes, all receipts are deposited in a timely manner. basis? Safeguard over Assets 4.34 Is there a system of adequate Yes, these are guided under the FAR and other government safeguards to protect assets from manuals and policies within BWDB. fraud, waste and abuse? 4.35 Are subsidiary records of fixed assets Yes, subsidiary records of fixed assets are kept up to date and and stocks are kept up to date and reconciled with controlled accounts at least once a year reconciled with controlled accounts? 4.36 Are there periodic physical Yes, once a year. inventories of fixed assets and stocks? 4.37 Are assets sufficiently covered by the Projects for constructions are covered by insurance and insurance insurance policies? coverage will not be provided after project completion. This will need to be addressed by ADB on its MFF programs Other Offices and Implementing entities 4.38 Are there any other regional offices The Department of Disaster Management is the Implementing or implementing entities Agency for the Disaster Management Activities. participating? Other participating organizations are the Local Government Engineering Division (LGED), different research organizations and NGOs as service providers. 4.39 Has the project established controls A description of these controls and procedures will be included in and procedures for flow of funds, the Memoranda of Understanding between BWDB and the financial information, accountability organizations concerned. For LGED such a MoU exists already. and audits in relation to the other With service providers a contractual relationship will be offices or entities ? established describing the issues mentioned.

Page 143 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Topic Response and Remarks 4.40 Does information among the This will be as defined in the MoU or contract. different offices/ implementing agencies flow in an accurate and timely fashion? 4.41 Are periodic reconciliation performed This will be as defined in the MoU or contract. among the different offices/ implementing agencies? Other 4.42 Has the project advised employees, Yes, these are clearly defined under the Service Rule 1986. beneficiaries and other recipients to whom to report if they suspect fraud, waste or misuse of project resources? 5. Internal Audit 5.1 Is there an internal audit department Yes, there is an internal audit department under ADG Finance. in the entity? 5.2 What are the qualifications and The Director of Audit has one Director and three Deputy Directors. experience of the audit department Their qualification and experience are as follows: staff? • Director, B. Com(Hons), M.Com in Accounting, FCMA, 17 years of experience • Deputy Director, B Com (Pass), 32 years of experience • Deputy Director, M Sc, 35 years of experience. • Deputy Director: Vacant position 5.3 To whom does the internal auditor Internal auditor reports its findings to the Director of Audit, who in report? turn sent this to the ADG Finance and then to DG.

5.4 Will the internal audit department Yes, the internal audit covers all units of BWDB including the MRP include the project in its work program. program? 5.5 Are actions taken on the internal Yes, follow up actions are under the responsibilities of ADG audit findings? Finance. 6. External Audit 6.1 Is the entity financial statement Yes, financial statements are audited yearly by an external audited regularly by an independent auditor’s firm –Narul Azim and Company to audit Receipts and auditor? Who is the auditor? Payments Account, Contributory and General Provident Funds, Loans and Advances, and the general Financial Statements of BWDB. 6.2 Are there any delays in audit of the Yes, there are delays in the audit in the entity for financial year entity? When are the audit report 2011 and 2012, and currently awaiting MOWR decision for issued? submission to external auditing. The entity usually is being audited within 4 months after the close BWDB accounts and audit report issued within 60 days thereafter. 6.3 Is the audit of the entity conducted According to BWDB, audits are conducted according to BAS which according to the international follows the International Auditing Standard. standards on auditing? 6.4 Were there any major accountability At the point of this report, this cannot be established and a follow issues brought out in the audit report up is necessary. of the past three years? 6.5 Will the entity auditor audit the Yes, GOB funded projects are being audited by CAG and FAP are project accounts or will another audited by FAPAD auditor be appointed to audit the project financial statements?

Page 144 September 2013 Institutional and Financial Assessment

Topic Response and Remarks 6.6 Are there any recommendations According to BWDB, most recommendations made by the auditors made by the auditors in prior audit have been implemented. reports or management letters that have not yet been implemented? 6.7 Is the project subject to any kind of Yes, Comptroller and Auditor General (CAG) audit from an independent government entity (e.g. the supreme audit institution) in addition to the external audit? 6.8 Has the project prepared acceptable This will be addressed before the implementation of Tranche 1. terms of reference for an annual audit 7. Reporting and Monitoring 7.1 Are financial statements prepared for Yes, financial statements are prepared in accordance to BAS. the entity in accordance with which accounting standards? 7.2 Are financial statements prepared for Yes the implementing unit? 7.3 What is the frequency of preparation BWDG prepares yearly financial statement and is reported to be of financial statements? Are the on time. reports prepared in a timely fashion so as to useful to management for decision making? 7.4 Does the reporting system need to be Yes, this is part of the requirement under IMED reporting. adapted to report on the project components? 7.5 Does the reporting system have the No, the current financial software system does not support and capacity to link the financial allow for real time project information as most of the RACs are not information with the project‘s linked and information and data transmission are generally physical progress? If separate transmitted by email and thumb drive. Controls on security data is systems are used to gather and considered poor and are not synchronized. compile physical data, what controls are in place to reduce the risk that the physical data may not synchronize with the financial data? 7.6 Does the project have established Financial Management Reporting is based on report requirements financial management reporting for MOWR, IMED and MOF. The report requirements links under responsibilities that specify what IMED are shown in Appendix 5. reports are to be prepared, what they are to contain, and how they are to be used? 7.7 Are financial management reports Yes used by management? 7.8 Do the financial reports compare Yes actual expenditures with budgeted and program allocations? 7.9 Are financial reports prepared The accounting software system currently adopted by BWDG is directly by the automated accounting arcane and not fully automated and is generally prepared using system or are they prepared by Excel spreadsheet for data consolidation. spreadsheets or some other means?

Page 145 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Topic Response and Remarks 8. Information Systems 8.1 Is the financial management system Financial management system is using an old software package - computerized? MS Great Plains Dynamic Accounting software since 2006 and has never been updated and may not be appropriate to manage the upcoming MRP program. Further review will be required. 8.2 Can the system produce the No, the system cannot produce the necessary reports and has to necessary financial reports? be manually tabulated due to its non linkages with the RACs. 8.3 Is the staffs adequately trained to There is currently no technician to maintain the system and is maintain the system? vulnerable to breakdown. 8.4 Does the management organization The current practice of transferring information through internet and processing system safeguard the and ‘post-mailing’ of thumb drive does not really safeguard nor confidentiality, integrity and promote confidentiality and integrity of data as these data are not availability of the data? encrypted. It is expected that when the WB funded ICT component is implemented, it will address these issues.

Page 146 September 2013 Institutional and Financial Assessment

Attachment 2 A) Project under Implementations of BWDB (in Mil TK)47

Sl no. Project name Total cost Donor Name Completion date 01. Upper-Surma-Kushiyara project 13260.00 GOB June, 2014 02. New Dakatia and Old Dakatia Little Basin 15379.64 GOB June, 2014 Improvement Project 03. Water Management Improvement Project (Special 98227.56 GOB June, 2014 Revised) (GoB-9813.20 & World Bank PA-88414.36) 04. Secondary Towns Integrated Flood Protection 51973.11 GOB June, 2013 Project Phase-II (GoB-14652.35 & ADB & OPEC PA-37320.76) 05. Feasibility Study & Detailed Design of Ganges 4564.00 GOB June, 2013 Barrage Project(PC-2) 06. River Bank Protection & Development and Town 19133.81 GOB June, 2013 Protection Project (4th Phase)(1st Revised) 07. Emergency 2007 Cyclone Recovery & Restoration 33923.40 World Bank June, 2014 Project(Component C & Sub-component D-2) (PA-33923.40) (ECRRP) 08. Protection of Left Bank from Teesta 15061.45 GOB June, 2013 Barrage to Chandimari (1st Revised) 09. Gorai River Restoration Project (Phase-II) 94215.00 GOB June, 2013 10. Faridpur Town Protection Project 17654.00 GOB June, 2013 11. Charfession & Monpura Town Protection Project in 14287.56 GOB June, 2015 Bhola District 12. Protection of Faridpur FCD Project (Area-1) from 9835.05 GOB June, 2014 Erosion of Padma River at Bakshipur-Sengram Area in Rajbari District, Bank Protection of the Naboganga River at Mohajan Bazar Area in and River Bank Erosion Protection of the Gorai River at Khoksa & Kumarkhali Upazila under Kustia District 13. Rehabilitation of Bhutiar & Barnal Salimpur- 2134.00 GOB June, 2013 Kolabashukhali Flood Control and Drainage Project in Khulna District (Phase-II) 14. Protection of Shahbazpur Gas Field from Erosion of 13410.25 GOB June, 2013 Meghna River under Borhanuddin Upazila of Bhola district (Phase-II) 15. Protection of Left Bank of the Jamuna River from 41700.71 GOB June, 2014 Bahadurabad Ghat to futani Bazar in Dewangonj & Islampur Upazilla and Harindhara to Hargila in Islampur Upazilla under Jmalpur District 16 Protection of Chandpur Irrigation Project Area from 18388.74 GOB June, 2013 the Erosion of the Meghna River (Haimchar) and Protection of Left Bank of the River Meghna at Bancharampur 17. Protection of Chandpur Irrigation Project from 17095.48 GOB June, 2013 Erosion of the Meghna River zt Ibrahimpur-Sakhua adjacent to Puran Bazar of Chandpur District 18. Capital (Pilot) Dredging of River System in 102812.00 GOB June, 2014 Bangladesh (Phase-I) 19. Restoration Project (New 94409.00 GOB December, 2013 Dhaleswar-Pungli-Bangshi-Turug-Buriganga River System) 20. Excavation of Chandana Barasia River 5953.00 GOB June, 2013

47Source: BWDB – Chief Monitoring Unit 26 Feb 2013

Page 147 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Sl no. Project name Total cost Donor Name Completion date 21. Procurement of Dredgers and Ancillary Equipment 130988.00 GOB June, 2014 for River Dredging of Bangladesh 22. Rehabilitation of BWDB’S Structures Damaged by 34663.28 GOB June, 2013 Cyclone AILA in Coastal Area 23. Re-excavation of Bemalia, Langan and Balbhadra 4242.00 GOB June, 2013 River under Nasirnagar Upazila in Brahmanbaria District 24. Protection of Right Bank of Jamuna River at Kazipur 28540.00 GOB June, 2013 Upazilla Under Sirajgong District 25. Rehabilitation & Strengthening of Both Bank of 7337.00 GOB June, 2013 26. River Bank Protection at Tamaruddin and 6059.22 GOB December, 2014 Baglabazar of Polder 73/1(A+B) at Hatiya Upazilla under . 27. Protection of Shaghata Bazar and Adjacent Area 17031.00 GOB June, 2013 from the Erosion of Jamuna River under Shaghata Upazila ob and Protection of Left Bank of the Brahmaputra River at Shahiber Alga (near BOP camp) in Datbhanga Union under Roumari Upazila of 28. River Bank Protective Work of Left bank Erosion of 20089.00 GOB June, 2013 the Padma River at Different Places in Sujanagar Upazilla and Right Bank Erosion of the Jamuna River at Raghunathpur in Bera Upazilla of District Pabna 29. Procurement of 6 nos. Dredgers and Ancillary Crafts 40716.00 GOB September, 2014 & Accessories for Ministry of Water Resources & (GoB-23782.00 & India Ministry of Shipping (Mongla Port-1 no., BIWTA-3 PA-16934.00) nos., BWDB-2 nos.) 30. Kalni- Management Project 60983.31 GOB June, 2014 31. Protection of Flood Embankment along the Right 11686.89 GOB June, 2014 Bank of Jamuna River at Antarpara, Daripara and adjacent area under 32. Bank Protective Work along the left Bank of 3230.00 GOB June, 2013 Madhumati River at Fukra And along the Both Banks of Madaripur Billrute Channel at Koligram and Manikdaha in Gopalganj District. 33. Char Development & Settlement Project- 4 (CDSP- 27661.31 GOB December, 2016 IV) (GoB-3704.12 & IFAD PA-23957.19) Netherland 34. Pre-monsoon Flood Protection & Drainage 68494.00 GOB June, 2013 Improvement in Haor Area 35. Removal of Drainage Congestion from the Kobadak 26155.00 GOB June, 2015 River Basin (phase-II) 36. Excavation of a Pilot Channel at the Downstream of 6386.00 GOB June, 2014 Feni Regulator Under of and Bank Protective Works on the Left Bank of Feni River at Pashchimjoar Under Mirsarai Upazila of District 37. Naogaon Town Protection Project 7325.00 GOB June, 2013 38. Protection of Right Bank of Jamuna River at Bogra 21446.00 June, 2016 District 39. South –West Area Integrated Water Resources 29406.79 GOB June, 2014 Management Project GoB-5782.45 & ADB PA-23624.34) 40. Teesta Barrage Project Phase-II, (1st Revised) 24863.00 GOB June, 2015 41. Re-Excavation of Connecting Rivers Development of 36171.00 GOB June, 2013 Irrigation Facilities and Fish Culture project of

Page 148 September 2013 Institutional and Financial Assessment

Sl no. Project name Total cost Donor Name Completion date Gaznar Beel Area Under in 42. Tarail-Pachuria Integrated Water Resources 28145.00 GOB June, 2013 Management Project 43. Construction of Additional Pump Station At 7983.00 GOB June, 2013 Goranchatbari In P.S Mirpur, Dhaka 44. Flood Control, Drainage and Irrigation Project of 4570.50 GOB June, 2014 Right Bank of 45. Main River Flood and Bank Erosion Risk 1570.00 GOB June, 2014 Management Programme (GoB-549.00 & ADB PA-1021.00)

B) Newly Approved Project List of BWDB for Fiscal Year 2012-2013 (in mil TK)

Sl no. Project name Total cost Donor Name Completion date 01. Protection of the Bhurungamari-Madargonj Road 4174.00 GOB June, 2014 from the Erosion of the Dudhkumar River near at Bridge under and Protection of the Left Bank of Teesta River from Gunaigach to Bazra Senior Madrasa under of Kurigram District 02. Protection of Alatuli Area of Chapai Nawabgonj 16551.00 GOB June, 2013 District from the Erosion of the Padma River 03. Integrated Water Management Project of Polder 16726.12 GOB June, 2015 34/2 in Bagerhat District 04. BholaTown Protection Project 10328.83 June, 2015 (Phase-III) 05. Protection of Bairagirhat and Chilmari Bandor 19136.03 GOB June, 2016 from the Erosion of the Right bank of Brahmaputra River at Chilmari and Ulipur Upazila in Kurigram District (Phase-II) 06. Protection of the Left Bank of Padma River from 21020.00 GOB June, 2014 Komorpur to Shara-Jhaudia in Ishaardi Upazila under Pabna District and Tilokpur to Gouripur in under 07. Protection of Louhajong Upazilla Complex area 2447.04 GOB June, 2014 under Louhajong Upazilla in Munshigonj District from the Erosion of the River Padma 08. Rehabilitation of Works of Teesta Main Canal and 1465.00 GOB June, 2014 Related Structure under Command area of Teesta Barrage Project (phase-1) 09. Rehabilitation of the Ganges-Kobadak Irrigation 16472.00 GOB June, 2016 Project

Page 149 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Attachment 3: BWDG: Budgeting Work Flow for ADP Approval – Refer to FMAQ 4.14

Project Management Office – Project Director - BWDB Ministry of Finance – Program Division 1

9 7 1 16 15 0

Director of Program

Director of Finance

2 Planning Commission Request for Programming Division Proposal 14 5 (RFP)

8 6 1 Director General - BWDB 1

3

13 4 Ministry of Water Resources (MOWR)

Governing Council (GC) BWDB 12

Work Flow Processes of ADP Approval:

1. The Project Director (PD) prepares the budget for all the projects in close consultation with the Chief Engineers, Executive Engineers, Superintend Engineers and Project consultants of the respective Zones, Circle Lines, and Divisional offices associated with each project and consolidate this into the Annual Development Program (ADP) fund requirements. It is also assumed that, at this stage, the PD would also have obtained concurrence with the Office of Chief Planning for his concurrence after reviewing the entire technical and financial proposal sent through to them from the respective divisional and circle lines. The PD submits the ADP proposal to Director of Finance (DOF) and Director of Program (DOP).

Page 150 September 2013 Institutional and Financial Assessment

2. The DOF and DOP, upon receipt of ADP from PD, checks, verify and endorsed PD’s ADP proposal against all planned project disbursement for the year and sent this to the Director General (DG). 3. The DG reviews the final ADP, endorses it and sent it to the Board’s Governing Council (GC) for consideration. 4. Once the GC review the ADP proposal from DG and there are no issues, will then approved the ADP and sent it back to DG. 5. The DG, after receiving approval from the GC, will passes on the decision to DOP and DOF. 6. The DOP, on behalf of DOF will then submit this ADP request to the Ministry of Water Resources (MoWR) – Department of Project Evaluation Committee (DPEC) for consideration. 7. DOP, will at the same time informs PD that they have submitted the ADP to MOWR for consideration 8. After MOWR endorses the ADP, it will then submit the said ADP to the Planning Commission – Programming Division - for consideration. 9. Planning Commission – Programming Division – makes the final review and submits its recommendations to the Ministry of Finance (MoF). 10. At the MoF, it reviews final ADP requirements and once approved, will then transmit the same back to the Planning Commission. 11. The Planning Commission, upon receiving the same approval, will inform MOWR. 12. At the MOWR, once this approval has been received, it will then on behalf of the GOB, issued a Government Order (GO) - which is an official government issued administrative approval for BWDG to proceed with its ADP 13. Once the GO approval has been sent to the GC, they will acknowledged and in turn inform the DG. 14. The DG then sent this ADP GO approval to DOF and DOP. 15. DOP will on behalf of DOF informs PD of the ADP GO approval. 16. The PD, upon receipt of the ADP GO order will commence preparation of the detailed project components for the purposes of tendering out each project component listed in their approved ADP.

Page 151 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Attachment 4: Financial Reporting Forms for IMED – Ministry of Planning

IMED Formats (Revised in 2003) Sl. No. Name of the Format Download Format 1 IMED-01/2003 (Revised) (For individual Projects) doc pdf IMED-02/2003 (Revised) (Component-wise Physical and Financial 2 Target for current year ) doc pdf 3 IMED-03/2003 (Revised) (For Quarterly Progress Report) doc pdf 4 IMED-04/2003 (Revised) (For Completion Report) doc pdf 5 IMED-05/2003 (Revised) (For Monthly Progress Report) doc pdf

6 Proposal for No Cost Time Extension doc

7 Procurement Related Format excel http://www.imed.gov.bd/index.php?option=com_content&task=view&id=268&Itemid=359

Page 152 September 2013 Institutional and Financial Assessmentt

APPENDIX 4: Establishment and Introduction of a Management Information System

Page 153 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Document Status

Title: Establishment and Introduction of a Management Information System (MIS)

Author: Md. Makbul Hossain

Revision March 2013

ACRONYMS

ADB Asian Development Bank

ADP Annual Development Program

BWDB Bangladesh Water Development Board

DPP Development Project Pro-forma/ Proposal

FCDI Flood Control, Drainage and Irrigation

MIS Management Information System

MoWR Ministry of Water Resources

NBB Need Based Budget

O&M Operation and Maintenance

RDPP Revised Development Project Pro-forma/ Proposal

Page 154 September 2013 Institutional and Financial Assessmentt

Executive Summary Bangladesh Water Development Board (BWDB) is the principal government agency in the water sector. The main mandates of the organization are planning, implementation of water resources development projects and their subsequent O&M. BWDB spends about Tk. 1,500-2,000 crore annually on development project, ranks as one of top 10 agencies in terms of ADP spending. The organization has to operate and maintain huge number of infra-structures such as embankment, drainage channel, Irrigation canals, hydraulic structures, functional and office buildings, large pump, etcetera, spread all over the country. The tasks are quite challenging from management point view. Lots of information gathering, storage, processing and sharing is needed to accomplish the tasks.

Presently, BWDB’s capacity for strategic planning, portfolio management, project and program implementation, system operation and maintenance, risk management is constrained by several factor s including limited sharing of information both within BWDB and between BWDB and other government agencies. A lack of systematic storage of information and easy access and retrieval of the same constrains in-depth analysis which hampers proper planning and implementation of projects and programs; taking timely management actions. Further, lack of complete inventory of system and infra- structures with proper attributes, non-existence of standards for inspection and maintenance, absence of quick processing facilities hampers prioritized budget allocation for proper operation and maintenance. Putting an integrated Management Information System (MIS) in place will improve the situation.

A framework for development and deployment of a comprehensive MIS, based on analysis of business process is presented in this report. The envisaged MIS will have three components, focusing on three distinct areas of BWDB operation such as (i) project/program implementation, (ii) Operation and Maintenance (O&M), and (ii) Benefit Monitoring and Evaluation. ADP MIS will focus on project planning, implementation activities, O&M MIS will focus on activities related to operation and maintenance and BME MIS will deal with activities related to long term project benefit monitoring and evaluation. In the report, first two components have been elaborated.

The data need of ADP MIS has been identified and the structure of relational data tables that will make the ADP database has been presented. The processing requirement has been outlined. ADP MIS will facilitate -

• Monitoring planning activities; • Tracking project approval; • Archiving project information; • Drawing up of annual program; • Tracking procurement tender; • Tracking implementation progress; • Tracking contract and progress; • Generating various report for internal and for external audience; and • Archiving implementation history.

As in the case of ADP component, data need of O&M MIS has been identified and the structure of relational data tables that will make the O&M database has been presented. The data structure of has

Page 155 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program been made intelligent by adding ranking attribute fields to implement prioritized O&M fund allocation. O&M MIS will facilitate-

• Quick overview of infra-structure base; • Preparation of rolling/long term plan • Estimating logical annual budget requirement; • Drawing up annual O&M plan; • Rational and prioritized O&M budget allocation; • Quick revision of plan • shorten processing time, consequently allowing more time for execution; • O&M Implementation Monitoring • Enhance accountability of O&M expenditures. • Archiving infra-structure status history; • Archiving O&M history; • Establish need based budget (NBB) ;

Lastly, further works needed for development of MIS and strategies for deployment have been outlined.

Page 156 September 2013 Institutional and Financial Assessmentt

1. INTRODUCTION 1.1 Background Flood and riverbank erosion are two of major problems for socio-economic development of the country. Asian Development Bank (ADB) extended financial assistance in building two FCDI system, one on the right bank of Jamuna river in Pabna and other on the left bank of Meghna in Chandpur. Under follow up loan project, command areas of the systems were developed. Later, when both the system became vulnerable to river bank erosion, ADB again came forward with financial assistance to implement ‘Jamuna-Meghna River Erosion Mitigation Project (JMREMP) to relieve the two systems from erosion risk. JMREMP was implemented in different phases starting from January 2003 until June 2011. In the course of implementation, a low cost revetment design using sand filled geo-textile bags, a phased construction approach such as under water part first followed by resettlement actions and thereafter above water part of revetment, and a special method of construction from river using positioned barges over longer reach under multi-year contract system evolved. JMREMP bank protection works so far appears sustainable. The experiences from the aforementioned systems suggest an integrated approach, involving channel stabilization and flood mitigation measures as appropriate for sustainable flood risk reduction. Following JMREMP, ADB has come forward with a proposed loan up to $250 million, under Multi tranche Financing Facility (MFF) modality, for flood and bank erosion risk mitigation along the main rivers of the country. This PPTA has been commissioned to carry out necessary analysis and prepare invest plan for the Government and ADB. As a requirement of the assignment, an in depth institutional assessment is being made to determine BWDB’s capacity for planning, design, procurement and construction management, financial management, information dissemination, operation and maintenance, mainstreaming beneficiary participation etcetera. Any capacity enhancement program deemed required for tranche 1 and 2 projects is to be proposed and incorporated in the investment program.

Study reveals that, at present, BWDB’s capacity for strategic planning, portfolio management, project and program implementation, system operation and maintenance, risk management is constrained by several factor s including limited sharing of information both within BWDB and between BWDB and other government agencies. A lack of systematic storage of information and easy access and retrieval of the same constrains in-depth analysis which hampers proper planning and implementation of projects and programs; taking timely management actions. Further, lack of complete inventory of system and infra-structures with proper attributes, non-existence of standards for inspection and maintenance, absence of quick processing facilities hampers prioritized budget allocation for proper operation and maintenance.

Putting an integrated Management Information System (MIS) in place will improve the situation. This report provides the framework for development and deployment of MIS to the requirement of BWDB.

1.2 Goals and Objectives Bangladesh Water Development Board (BWDB) is the principal government agency mandated for development and management of water resources, under the administrative control of Ministry of Water Resources (MoWR). MoWR is one of the top 10 ministries that spend large share of annual development budget. Each year, under the ministry, large number of projects remain under ADP concurrently; of which, BWDB is responsible for implementation of more than 90%. Over the last 50 years of existence, BWDB has implemented near about 1000 project through which huge number of FCDI infra-structures such as embankments, irrigation canals, regulators/sluices, pump houses, barrages, closure dams, erosion protection groynes, and revetments have been built. Most of the

Page 157 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program structures are located in rural areas, spread all over the country. Operation and maintenance of this infra-structures/ systems is the other major part of mandated task.

BWDB operates in quite a complex manner in carrying out mandated tasks (see Appendix-A: Planning, Budget and Expenditure Process; Appendix-B: Operation and Maintenance: Status and Issues ). The organizational chart in Appendix 1y shows BWDB’s structures, principal responsibility and core tasks of individual units (only the units directly involved in planning, implementation and O&M have been shown in the chart). It also shows administrative hierarchy, and functional linkage between units. From the organogram chart and operational process description, it should be evident that many units at different organizational hierarchy and located at different places do the bits of the ultimate task of building new systems and follow up O&M. Each unit’s work is dependent or linked to the work of one other unit. Thus there have to be a lot information sharing and exchange of data among the BWDB units as well as units external to BWDB.

Presently, data and information exchanges do take place, but mostly in the form of hard copy. Though in some cases data is stored in computer, but not in a well structured manner. Different unit use different format; as a result, critical analysis cannot be accomplished easily and quickly; report cannot be produced timely for decision and management action. As no systematic approach for data storage is followed, historical data is obscured in piles of paper file or segmented computer file at different locations in different computer in incompatible format.

Technology is available for storage of data in uniform and well structured manner in computer databases. Individual database can be built at different computer, located at different places. The databases can be linked through networking to form a virtual single database. Sophisticated software packages are available to support such system of data storage and retrieval. Based on database information, institutional policy and rule, prioritized resource allocation model can be built to effective resource allocation in the event of constraints. For BWDB O&M planning and annual resource allocation, such a tool will prove valuable in the present situation of inadequate budget grant from the Government. In addition, an integrated database system will support producing sophisticated management reports for better management the activities and resources.

In summary, the goals and objectives of MIS development are to

• Enable better program/project management through storage of information in structured manner, easy access/ retrieval, quick processing of information and production of appropriate management reports; • Enable rational and effective resource allocation across the portfolio expenditures; • Ensure transparency and accountability; • Enable preservation of historical information and thereby facilitate analysis for better planning and projection.

Page 158 September 2013 Institutional and Financial Assessmentt

Figure 4 1: Organogram of BWDB

1.3 MIS Components The envisaged MIS will have three components, focusing on three distinct areas of BWDB operation such as (i) project/program implementation, (ii) Operation and Maintenance (O&M), and (ii) Benefit

Page 159 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Monitoring and Evaluation. The first component, to be titled as ADP MIS will focus on project planning, implementation activities. The second component, to be titled as O&M MIS, will focus on activities related to project (system) operation and infra-structure maintenance. The third component, to be titled as BME MIS will deal with activities related to long term project benefit monitoring and analysis.

The ADP MIS will consist of computerized databases of relevant information on project plan, schedule and necessary processing routines including data acquisition, retrieval, information sharing. ADP MIS will facilitate -

• Monitoring planning activities; • Tracking project approval; • Archiving project information; • Drawing up of annual program; • Tracking procurement tender; • Tracking implementation progress; • Tracking contract and progress; • Generating various report for internal and for external audience; and • Archiving implementation history.

The O&M MIS will consist of computerized database of system/ infra-structure and other related information, various processing routines including prioritized budget allocation model. O&M MIS will facilitate-

• Quick overview of infra-structure base; • Preparation of rolling/long term plan • Estimating logical annual budget requirement; • Drawing up annual O&M plan; • Rational and prioritized O&M budget allocation; • Quick revision of plan • shorten processing time, consequently allowing more time for execution; • O&M Implementation Monitoring • Enhance accountability of O&M expenditures. • Archiving infra-structure status history; • Archiving O&M history; • Establish need based budget (NBB) ;

The BME MIS is for monitoring project impact and outcomes over the longer term. It includes information related to physical and socio-economic conditions such as extent of flooding, eroded area, crop losses, and income and land value. Data from base line surveys, BME reports, and satellite imagery will be included in database, facilitating the analysis of changes over the duration of project. However, this report will not be detail further; rather deferred to until development of the first two components.

2. Project Planning and Implementation Bangladesh Water Development Board (BWDB) is a statutory organization under the administrative control of Ministry of Water Resources (MoWR). Though originally created in 1959 under a government ordinance, it has been reconstituted in 2000 under “Bangladesh Water Development Board Act 2000”.

Page 160 September 2013 Institutional and Financial Assessmentt

Principal responsibilities of the organization are to build, operate and maintain physical infra-structure such as embankment, sluice/regulator, groyne/ bank revetment, barrage/ pumping plant, irrigation canal and dredge or excavate river/khal for control of flood inundation, salinity intrusion, riverbank erosion; providing irrigation, improved drainage or navigation. Board also performs supporting water management function such as hydrological data collection, processing and storage, flood forecasting and issuance of warning.

BWDB operates and conducts activities using fund allocated out government’s revenue and development budget. Often, bilateral or multilateral development partners come forward with grant or loan though government for funding BWDB project.

The organization is managed by the Chief Executive Officer designated as Director General (DG), who is assisted by 5 Additional Director General (ADG). Board has unit offices, spread all over the country. The units can be identified as headquarter units and field units. Headquarter units are assigned principally with the responsibilities of planning, coordination, monitoring and maintaining liaison. The principal responsibilities of field units are carrying out program execution including necessary data/ information collection and making initial planning.

The headquarter units are organized into in functional lines with each unit have to carry out specific part/s of the whole of project/program planning and implementation. Field units are organized in the line geographical areas, each unit having jurisdiction over specific geographical area and responsible for mandated activities for that area.

For the management of BWDB field works, Bangladesh is divided into 8 zones, each zone covering 5-12 administrative districts. A Chief Engineer heads the zonal set up. The area under a zone is divided into 2 or more circles; again area under a circle is further divided into 2 or more Divisions. The sub division into circles, further sub division into Divisions depends upon areal extent and work volume. There are 29 Circle units and 78 Divisional units48. A Circle is headed by a Superintending Engineer; a Division is headed by an Executive Engineer.

Division offices are the most important units in respect of field operation. They are responsible for upkeep and operation of infra-structures located in its command area as well as data/information collection. These offices initiate project/program planning, procurement actions; administer procurement contract.

The zonal office performs administrative control on field activities under its jurisdiction and guides the Superintending Engineers and Executive Engineers in performing their responsibilities. The Zonal Chief Engineer maintains liaison with headquarters offices and channelize all request from Circles/ Divisions. The Circle office serves as intermediary between Zonal office and Division office.

2.1 Planning Process Planning activities of BWDB is coordinated by planning wing, headed by ADG (planning). The office of Chief Planning under ADG (planning) is the most important office in respect of planning jobs.

Technical Project Proposal/ Performa (TPP) and Development Project Proposal/Performa (DPP) are the two documents through which government’s approval is accorded for project implementation. A TPP is required for technical/ feasibility study project while a DPP is required for capital investment project.

48 Annual Report 2010-11, Ministry of Water Resources

Page 161 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Preparation planning documents like TPP and DPP is the responsibility of the office of Chief Planning. However, Chief Planning is assisted by concerned field offices, Planning Directorate under him or Project Management Office in respect preparation of draft of TPP/ DPP. Different phases of planning process in BWDB are described below.

2.1.1 Technical/ Feasibility study After identification of a possible project, a Technical Project Proposal (TPP) document needs to be prepared for taking up feasibility study. This document provide basis for incurring expenditure for study project. Chief Planning prepares this document with the assistance of concerned field office/ Planning Directorate under him/ Project Management Office. TPP costing up to 20 million is approved by MoWR; TPP costing more than BDT 20 million is approved by planning Commission.

Once a TPP is approved, it is included in Annual Development Program (ADP) and budgetary allocation is made.

After this, consultant is recruited following procurement rule and process of Government. The recruitment of consultant is the responsibility of Chief Planning. He discharges this responsibility with the approval of Director General at many of the steps needed. Sometimes, approval of MoWR is needed depending upon cost ceiling, provided by ‘Delegation of Financial Power’ of Government. In case, feasibility study is taken up out of financial assistance of an external donor, they may recruit the consultant directly; however the concurrence of BWDB is sought before final award of contract. It may be mentioned that all communication with the external donor agency is made through Economic Relation Division (ERD) under the Ministry of Finance via MoWR.

2.1.2 Formulation and approval of the DPP If the identified project is found out to be technically feasible, economically viable and socially acceptable, DPP is prepared for implementation of investment project. DPP is largely based on feasibility study result.

The preliminary draft of DPP is prepared by concerned field office in case of GoB financed project. For aided project, draft DPP is prepared by Project Management Office (this may be an assigned Planning Directorate under Chief Planning or a temporary PMO office, set up for the purpose).

Office of Chief Planning scrutinizes the draft for consistency, gets concurrence of DG through ADG (Planning) on the draft and submits the document to MoWR for further processing towards getting Government approval.

At the MoWR, the DPP is reviewed by planning wing of the ministry and placed for consideration at Departmental Project Evaluation Committee (DPEC) meeting. DPEC consists of representative from Planning Commission, Ministry of Finance, and LGED in addition to officials of MoWR, DG/BWDB and DG/WARPO and is headed by Secretary, MoWR. If the submitted document is accepted by DPEC, then it is submitted to Planning Commission for final processing towards approval.

At the Planning Commission, the submitted document is reviewed by concerned official of Planning Division and placed for consideration of inter-ministerial ‘Project Evaluation Committee (PEC)’, headed by Member (Agriculture, Water Resources and rural Institution), Planning Commission. If the project proposal is found consistent with Government’s development goals and objectives, fits in Five Year Plan, and can be accommodated in available fiscal resources, the committee recommends the project for approval. If the cost of the project is BDT250 million or less, Planning Minister gives final approval.

Page 162 September 2013 Institutional and Financial Assessmentt

For Project, costing more than BDT250 million, the DPP is placed to ECNEC (Executive Committee, National Economic Council) meeting for consideration and approval. If DPP is approved, the decision is circulated to concerned ministries and departments by Planning Commission for actions. Following ECNEC decision, MoWR issues Government Order (administrative approval).

2.1.3 Revision of TP/ DPP In the course of implementation, an approved TPP/DPP may need revision for various reasons. Preparation and approval of revised DPP go through the same process as described above.

2.2 Implementation Process Once a DPP is approved, the information is circulated to all concerned Ministries and Divisions. The project enters into implementation phase and automatically included in the revised ADP of the year and budgetary allocation is made as per financial schedule of the DPP. This is done by Programming Division (of Planning Commission)

2.2.1 Annual Development Program (ADP) In the second half of each fiscal year, national Revised ADP (RADP) for the current year and ADP for the next year are prepared.

For the case of BWDB, the concerned field office or project management office in charge of execution of project works prepare draft proposal of RADP for current fiscal year and ADP for next year for the projects under implementation, keeping in view of the DPP provisions. At the head quarter level, Directorate of Program coordinates the ADP preparation, checks for consistency and prepares consolidated ADP of BWDB. Afterwards, with the concurrence of DG, sends the RADP and ADP proposal to MoWR for onward transmittal to Programming Division of Planning Commission.

Programming Division makes the final budgetary allocation based on resource availability.

2.2.2 Preparation and Approval of Physical Breakup Approved ADP allocation is circulated among the field offices/ project management offices. The field offices collect necessary data and prepare project wise physical and financial breakup in standard format and send to Directorate of Program. Program Directorate checks for consistency, sends to MoWR for approval with concurrence of Board management.

The Ministry of Water Resources (MoWR), after necessary review and checking, finally approves the physical breakup.

2.2.3 Detailed Work Authorization On the basis of approved physical breakup, Zonal Chief Engineers/ Project Directors issues detailed work authorization to facilitate taking up physical works and necessary procurement actions.

At the same time, annual procurement plan is be prepared and get approved by concerned ADG or DG, depending on the cost ceiling.

2.2.4 Procurement As per procurement plan, the concerned Executive Engineer/ Superintending Engineer/ Chief Engineer (as the case may be) invite tender following Government procurement rules and procedure. For donor supported project, procurement rule of that donor agency may be to be followed. Tenders are

Page 163 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program evaluated by forming appropriate Tender Evaluation Committee and approved by competent authority. In the process, officers of different level, Executive Engineers up to DG may be involved; depending upon individual procurement size. If the cost of individual procurement cost is more than BDT250 million, competent authority is MoWR up to BDT500 million. An individual Procurement costing more than BDT500 million go to Cabinet Committee on Government Purchase for approval.

Procurement actions are major administrative job for BWDB.

2.2.5 Fund Release Fund against ADP allocation is released quarterly, 4 installments in a year.

GoB Fund

Initial proposal for quarterly fund release is prepared by designated Project Director in standard format; along with supporting information, also in standard formats. All project directors send the proposal to Director Finance. Director, Finance checks for consistency, if found correct send the proposal to MoWR with the concurrence of ADG (finance).

At MoWR, the fund release proposal is checked against ADP allocation and physical breakup; if found satisfactory, issues Government Order (GO) to Chief Account Officer, Ministry of Water Resources. Following GO, Director Finance then present bill to Chief Account Officer, who issues check against the bill.

For the 4th quarter, MoWR send the fund release proposals received from BWDB to Finance Division (Ministry of Finance) for their concurrence, following which MoWR issues order for fund release for last quarter.

Released fund is deposited in the Central Accounts of the Board. Then on recommendation of Director Program, fund is distributed to field Regional Accounting Centre (RAC). The Deputy Director/ Accounts officer in charge of RAC keeps project wise accounts of fund received.

Reimbursable project aid fund

Fund for reimbursable project aid is made available by special account. For most cases, these special accounts are imprest accounts.

For aided project, BWDB apply to the Finance Division through MoWR, seeking permission to open an imprest account. Finance Division issues permission and instruct to Bangladesh Bank to open an imprest account against the specific project. At the same time permission is given to open a corresponding account in local currency with a commercial bank (second stage imprest account).

The Donor agency deposits an initial amount in foreign currency as advance to the imprest account with BB. BB remits an equivalent amount in local currency to the project account in the commercial bank.

Project Director spends the money from the project account with the commercial bank and submits withdrawal application to the donor agency along with statement of expenditure and supporting voucher. The donor agency then replenishes the imprest account in BB with spent amount in US$. BB then remit the equivalent amount to the project local currency account.

However, the above operational procedure requires advice from Finance Division, Ministry of Finance. At the beginning of financial year, Project Directors of BWDB project will initiate proposal for utilisation

Page 164 September 2013 Institutional and Financial Assessmentt of reimbursable project aid, as per ADP provision of the year. The proposal is sent to Finance Division through MoWR for issuance GO. On necessary scrutiny, authorization is issued for the whole year.

Payment of bills

Executive Engineers prepares contractor’s bill against work and supply and submit to concern RAC. The RAC makes actual payment to the contractor/ agency.

Accounts

RAC maintain accounts of payment they make and submit monthly accounts to Director, Accounts (BWDB). Director accounts consolidate the accounts received from RACs all over the country.

Director Accounts prepare annual statement of fund received and expenditure and submit to the Office Account General of the Government. The unspent balance for the year is deposited in the treasury.

2.3 Monitoring Process BWDB monitors and reviews planning, execution and expenditure process regularly and follows a monitoring system evolved over years. The main focus of monitoring is project planning and implementation. The subjects of monitoring are procurement (Status of tender invitation and receipt, evaluation and award of contract), planning (status of TPP/DPP preparation, approval) and implementation (physical and financial progress).

A monthly review meeting is held at BWDB presided over by DG. Another review meeting is held at the MOWR presided by Minister or in his absence by Secretary.

BWDB has to submit monthly, quarterly progress reports in approved format to Inspection, Monitoring and Evaluation Division (IMED), Ministry of Planning.

2.4 Historical Budget and Expenditure The charts on the next page show the picture of historical budget allocation and actual utilization. The graphs reveal some interesting insight. Nominal budget allocation over the last 30 years point to note that during the period from 1984-85 to 1997-98, share of project aid in BWDB ADP budget was higher than GoB contribution. In the peak year (1997-98), the amount of project aid was TK. 558.75 crore which was 63.86% of total budget. With devaluation taken in count, the figure comes to near about Tk. 1,000 in today’s value.

3,000.00 2,750.00 2,500.00 2,250.00 2,000.00 1,750.00 1,500.00 1,250.00

Crore Taka Crore 1,000.00 750.00 500.00 250.00 0.00

Fiscal Year GoB(N) PA(N) Total(N)

Page 165 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Figure 4.2: Historical ADP Budget Allocation (nominal and inflation adjusted)

110.00% 100.00% 90.00%

80.00% 70.00% 60.00% 50.00% 40.00% % Allocation% 30.00% 20.00% 10.00% 0.00%

Fiscal Year GoB PA Total

Figure 4.3: Historical ADP Budget Utilization

3. Operation and Maintenance: Status, Issues, Strategies 3.1 BWDB Infra-Structures Base Bangladesh Water Development Board (BWDB) is the principal agency of the government for development and management of water resources of the country. Main mandates of the organization are planning, implementation and subsequent operation and maintenance of project for flood protection, drainage improvement, irrigation supply, river channel maintenance, estuary control etcetera with objectives to ensure secured physical environment for living and livelihood to attain goal of poverty eradication and socio-economic development. To date (June/2011), the organization has implemented 751 projects over the last 50 years. Table 4.1 below summarizes the FCDI infrastructures built so far.

Table 4.1 : Achievement at a glance ( up to June/2011)

Project Completed : 751 Nos. Major physical components -Embankment : 10,405 km (Coastal – 4,571 km, Inland – 5,834 km) - Irrigation Canal : 5,175 km - Drainage Channel : 4,245 km - Hydraulic Structure : 14,287 Nos. - Pumping Plant : 19 Nos.

Page 166 September 2013 Institutional and Financial Assessmentt

- Large pump : 100 Nos. - Barrage : 4 Nos. - River Closures : 1,330 Nos. - Bridges/Culverts : 5,630 Nos. - Roads : 1,041 km - Rubber Dam : 2 Nos. - Weir : 2 Nos. - Riverbank revetment : 622 km - Spur/Groyne : 220 Nos.

In addition to FCDI structures, many hundred office building, residential and other functional building has been constructed. Unlike FCDI infra-structures, BWDB does maintain account or inventory of buildings though appreciable share of maintenance budget goes maintenance of buildings.

The charts on the next page show the growth of infra-structures over the last 18 years. It is evident from the charts that development of FCD/I system has now reached near to a state of saturation. There are hardly any virgin areas left for new development except modification or rehabilitation of existing system. As such, present main challenge of BWDB is to ensure proper management, operation and maintenance of the vast number of installed engineering interventions for harnessing anticipated benefits, continuously and in sustainable manner.

Growth of FCDI Infra-structures (1) Embankment Canal Channel Road 12000 11000 10000 9000 8000

7000 6000 5000 Length (km) 4000 3000 2000 1000 0

Year

Figure 4 4: Growth of FCDI Infra-structures (1)

Page 167 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Growth of FCDI Infra-structures (2) H.Structure Bridge/Culvert Closure 16000 14000 12000

10000 8000

Number 6000 4000 2000 0

year

Figure 4 5: Growth of FCDI Infra-structures (2)

Growth of FCDI Infra-structures (3)

Revetment (km) Spur (No.) Large Structure (No.)

700 600

500 400 300

Number/km 200 100 0

Year

Figure 4 6: Growth of FCDI Infra-structures (3)

Page 168 September 2013 Institutional and Financial Assessmentt

Growth of benefited area

FCD Irrigation Land reclaimed

7000

6000

5000

4000

3000

Areain 000 hactare 2000

1000

0

Year

Figure 4 7: Growth of benefited area

3.2 Importance and Scope of O&M The flood control, irrigation, erosion control, land reclamation systems of BWDB play important direct roles for ensuring food security and poverty reduction. These facilities contributed to an estimated annual additional crop production of 93 metric ton. In the absence of these systems, the country would be subject to highly vulnerable situation in terms of food supply. In the setting, there is no other choice but to ensure the durability of the infra-structures through regular adequate maintenance and thus keeping the systems functional.

The BWDB infra-structures are mostly located in remote, watery environment and remains subjected natural forces such as cyclonic surge, water current, rain and wind. For the fact, the structures, specially the earthen embankments get deteriorated easily and quickly. Therefore, the effectiveness of the structures solely depends on proper and regular maintenance.

Two types expenditure has to be incurred for management of FCDI systems – operational cost and repair and maintenance cost. The operational cost includes cost of supplies and services such as fuel, electricity, lubricants etcetera and cost of man power needed for operation of gates, pumps.

The meaning of repair and maintenance work needs to be extended to cover (a) body repair and (b) protection of physical environment of the of structures. Body repair is the repair of structure proper as required due to physical deterioration or damage of structure. FCDI structures such as embankments, sluice/regulator is usually constructed along river bank. Sometimes, riverbank erosion threatens the existence of the structure. To save the structure from being collapsing into the river, bank protection work has to be taken up. Such work is to be considered as maintenance of the structure.

Page 169 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

For convenience of management, O&M work can be classified as (i) routine maintenance work, (ii) emergency work, (iii) damage repair work, and (iv) periodic work on the basis of frequency and extensiveness.

3.2.1 Routine Maintenance Some types of the maintenance works need to be carried out regularly at fixed interval, at least once a year or few times a year. These are petty works that includes cleaning and greasing of guide channel gates and hoisting devices, paining metal parts of gates, lubricating moving parts of pumps, de-weeding irrigation canal/ drainage channel etcetera. These works are termed as routine maintenance work.

3.2.2 Emergency Work During high flood, leakage may be observed at certain points of an embankment. Similarly, during irrigation supply, leakage may be observed at certain points of canal dykes. This phenomenon has to be stopped immediately by taking some kind of mitigation measures to avoid further damage. Sudden erosion attack during monsoon may endanger a flood embankment or a structure located near the river bank. In such cases also, immediate mitigatory works have to be carried out to avoid greater damage. These works are carried out as and when required without much planning. These types of works are termed as emergency work.

3.2.3Damage Repair Local damages of embankment/ canal/ bank protection revetment or hydraulic structure do take place during monsoon due to flood flow, excessive rain or cyclonic surge. Extent damage becomes visible with recession of flood after monsoon season. If it is observed that sustained damage is to scale that it will fail to be effective for the purpose the structure is intended to. In such cases, the damaged has to be repaired by the following dry period to restore the functionality. These type of works are termed as damage repair or more properly, flood damage repair.

3.2.4Periodic Repair Work Deterioration of a structure specifically flood embankment/ canal dyke continues to take place over time. Carrying capacity of irrigation canal or drainage channel is reduced over time due to siltation. If the size, shape or capacity of the embankment/ dyke/ canal/ channel falls to a certain critical stage below design standard, the whole of the embankment/ dyke /canal / channel reach has to restored to design standard through re-sectioning in case of embankment/ dyke and though de-silting in case of canal / channel by taking up comprehensive work. These types of repair work are termed as periodic repair work. The periodicity of such work execution depends on the particular design and environmental characteristics of the particular structure and has to be ascertained though comprehensive survey or measurement before taking up works.

3.3 O&M Cost and Financing Table 4.1 shows the enormity of infra-structures BWDB has built till to date. Any expert in this field will agree that large amount fund is required for proper O&M of such huge number of structure. However, to be honest, BWDB is not sure what an average annual O&M fund is sufficient. Post implementation O&M cost requirement for project’s output infra-structures are indicated in the respective project documents (PP/DPP). However, government does not make annual O&M allocation based on this estimates nor BWDB seriously pursue the cases. The reason may be that, in most cases, the theoretical O&M cost estimate provided in the project document appears not practical.

Page 170 September 2013 Institutional and Financial Assessmentt

Some experts suggest that average annual O&M fund requirement can be estimated following thumb rule as:

Earthen structure > 6% of investment cost

Bank protection work  10% of investment cost

Concrete structure  2% of investment cost

Valuing all infra-structures at present cost and then applying above rate should give a definite figure of up to date O&M fund requirement (such calculation may result a figure near about Taka 2,000 crore). To many, the suggested rate is not convincingly rational; the percentage, they argue, are never monitored to determine actual O&M cost scheme by scheme. Thus some experts consider above estimate is in the lower side, others consider it on the higher side. However, it can be safely say that, spending an annual amount of around Taka two thousand crore for O&M will require long term O&M planning as well as a sound basis for fund requisition.

The government allocates fund out of revenue budget as maintenance grant to carryout maintenance of BWDB infra-structures. The demand by BWDB and actual allocation made by government is shown in Table 4.2 below. For the last 5 years, annual grant amount remained at around Taka 300 crore with exception of year 2009-10, when a grant of 402.00 crore was made. Historically, the grant amount remained much less than demand made.

In the past, under ‘Food for Work’ programme (mainly targeted for temporary employment generation and food security for rural poor), quantity food grains (wheat/ rice) to the tune of equivalent monetary value of around 200 crore used to be made available to BWDB. These commodities were used for earthwork in connection with maintenance of embankments, irrigation canals and drainage channels. The works were implemented through ‘Project Implementation Committee’, formed with local people, under special implementation methodologies. Later, these was converted to ‘Taka for Work’, in which case, cash was made available instead of food grain for execution of similar works under similar methodologies. These programs played a supportive but highly significant role the earth work maintenance requirement. However, this program has been discontinued in BWDB since 3 years back which literally reduced the maintenance grant amount by about Taka 200 crore.

O&M Fund Demand and Allocation 3000 2500

2000 1500

Crore Taka Crore 1000 Demand 500 Allocation 0

Fiscal Year

Page 171 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Figure 4.8 : Demand and Allocation History

Table 4 1: Demand and allocation of O&M funds Financial Year Demand Allocation Allocation, % Demand (Crore Taka) (Crore Taka) 2000-01 245.66 69.00 28.08% 2001-02 250.76 57.19 22.81% 2002-03 284.98 82.19 28.84% 2003-04 284.03 100.00 35.21% 2004-05 430.92 125.90 29.22% 2005-06 341.00 135.00 39.59% 2006-07 350.00 150.00 42.86% 2007-08 400.00 151.50 37.87% 2008.09 529.00 305.00 57.66% 2009-10 846.00 402.00 47.52% 2010-11 1799.00 305.10 16.96% 2011-12 2000.00 317.80 15.89% 2012-13 2500.00 317.80 12.71%

However, it is mentioned here that, Government allocates another Taka 15-20 crore as per requirement, under separate budget code to be exclusively used for payment of electricity bill of pumping plants, over whatever amount is allocated as maintenance grant.

3.4 O&M Planning and Management: Current Practice 3.4.1 Operational Plan Operation in regard to FCD/I scheme usually means operation of sluice/regulator’s gate opening to control water level behind a hydraulic structure keeping in view requirement of different water uses. Operation includes such other actions as installing/ removing fall board in hydraulic structures, earthen dams in khals, perform flushing for irrigation through small inlets on peripheral embankments, operation of navigation locks, operation of river and re-lift pumping stations and LLPs.

3.4.2Maintenance Plan Each year, a consolidated maintenance work plan is prepared centrally based on the amount of maintenance grant allocated by the Government. At the beginning of financial year, BWDB got informed about annual maintenance grant made in favor of the organization. On behalf of Board management, Directorate of O&M then invite O&M work plan from each unit office dealing with O&M.

The budget proposals of field units are reviewed by a committee formed by Board through a series of consultation meeting with concerned field officials. Then allocation is made depending on the merit of the demand and availability of fund. In all cases, the demand is many times higher than what could be allocated from the Annual Grant received from GoB. The O&M Plan is then compiled and consolidated as BWDB Annual O&M Plan.

3.4.3O&M Execution Execution of works under annual O&M work plan is the responsibility of concerned field units i.e. BWDB Division Office, headed by an Executive Engineer. Execution is carried out as per codal procedure. Monitoring of execution is the responsibility of the concerned Superintending Engineer.

Page 172 September 2013 Institutional and Financial Assessmentt

Zonal Chief Engineer does provide oversight of O&M activities. Centrally, Director O&M monitors progress and Director Finance arrange fund release and distribution to field unit as per approved plan.

3.5 O&M Issues A serious concern about BWDB is in the sphere of operation and maintenance of it’s existing FCD/I schemes. Lack of adequate and timely maintenance, faulty operations coupled with inefficient management have rendered many of it’s facilities to perform much below expectations with serious social, economic and environmental implications. BWDB is criticized for not discharging O&M responsibilities well. Circumstances demand an unbiased analysis of prevailing O&M situation.

3.5.1Fund constraint BWDB has to manage and care vast number of systems and infra-structures. Proper O&M of this extensive asset base requires huge amount of recurring fund. Most of BWDB’s projects were implemented with the assistance of bilateral or multi lateral donors. Such assistance is not available for O&M of the project outputs. Government meets the O&M cost of public managed systems out of its annual revenue budget. But Government’s actual year to year allocations are much less than demands made by BWDB. The grant amount stands far below the requirement for demand arising out of post cyclone/flood damage repair from a severe event or due to back log maintenance ( In the current year, BWDB’s demand was Taka 2500 crore and allocation made by Government is Taka 317 crore).

Food for Work (later, Taka for Work) program played a supportive but highly significant role for earthen structure maintenance requirement. As this has been discontinued since last three years, the O&M fund availability is now further constrained.

3.5.2 Planning deficiency No doubt, lack of adequate fund is a major constraint for proper O&M. At the same time, the other dimension of the problem is weakness in planning practices and resource management.

The present practice of drawing up annual O&M work plan is not based on rigorous need analysis. Preparation of scheme wise formal annual operational plan is not in practice in BWDB. Though, scheme wise annual irrigation target is prepared by office of Chief, Water Management, but this is not done in a coordinated way with preparation of operational plan of physical infra-structures. Annual maintenance plan is prepared by concerned Division, purely on adhoc basis.

The field units do not maintain ready inventory of schemes and infrastructures with technical details. The philosophy and benefit of long term O&M planning is either not understood or staff are not prepared to take pain which is required for the first plan preparation. Each unit make proposal for all the needed maintenance work in the current year and little work for next year. Though everyone knows that that taking up all the deferred maintenance works in a single year is not practical and no commensurate fund will be available, yet everyone do the same passively. There is provision for indicating priority, but as per submitted document, all demands are of top priority. If the annual budget proposal documents of a unit for consecutive years are compared, it will be found that there is no continuity and consistency in making budget demand.

No comprehensive inventory of schemes with details of infra-structures is maintained centrally and there is no formal prioritization framework. In the absence of these, there is a tendency to make allocation partially to as many demands as possible. Evaluation of performance of annual O&M activities including performance of scheme as a whole remains completely unaddressed. BWDB has yet

Page 173 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program to set evaluation criteria, indicators and procedures for systematic and regular evaluation in respect of O&M.

Though budget grant received is only part of demand, utilization of fund is not satisfactory. Every year 3-4 crores of taka out of allocation remains unspent. Failure to utilize fully the scarce O&M grant can be attributed to poor O&M planning, delay in procurement process, weak monitoring system.

3.6 Way Out It is reasonable to assume that GoB will not increase budget grant dramatically, because Government, constrained by limited resources has other priorities. In such a situation, BWDB should pursue the options of full utilization of limited resources. Greater effort should be directed toward optimization of resource allocation and utilization with goal of maximizing socio-economic benefit out of limited available fund. Additionally, effort for mobilization of local resources should be intensified.

Preparation of O&M Budget Plan is an annual event. Objects of O&M in BWDB are vastly extensive. About 120 field units are involved with O&M. Staggering high number of demand is received from each unit. The combined fund demand received from all over the country stands many times greater than the grant received from the Government. In such a situation and in the absence of transparent prioritization framework and processing facilities, compilation, consolidation and finalization of the annual maintenance work plan become difficult. Often real need fail to get due consideration. Much time is spent in finalizing the O&M plan, consequently limited time remains available for implementation. For this reason time become a constraint for proper execution of maintenance works. All these could be accomplished with ease, if there had been a comprehensive inventory in place with inbuilt priority rating, a well established need based budget model and computerized processing facilities based on established rational budget allocation framework. Time base for finalizing budget plan could be shortened that would facilitate longer time period for work execution before monsoon.

3.7 Proposed Improved Practices

3.7.1Medium Term Maintenance plan Governments allocate fund for maintenance on annual basis. It is pertinent to note that, though the amount is not adequate, but such allocation was available in each past years and will surely be available in each future years. This gives the logical scope for preparation of medium term maintenance plan.

At present, preparation O&M plan starts only after annual budget allocation information is received. Number of systems/schemes, their constituent structures and so the scope O&M vast and extensive. On the other hand, drawing up and finalizing the annual O&M plan process has to go through many steps. It is difficult to draw up rational and effective plan and implement the work with in one year’s time frame and as well one year’s budget amount. Due to time and fund limitation, in most cases, piecemeal work is taken up and executed which proves not much effective. To overcome such planning deficiency, Long term maintenance plan could be prepared. If annual plan is drawn up following long term plan and executed with in annual budget provision, would be much more effective. In such practice, the system managers will remained aware of maintenance work need in advance and will be able to take timely action in work execution.

Periodic type maintenance work will be included in the medium term plan. This plan will be a rolling plan of 3-year duration. To accommodate with annual budget grant, the need to be updated every year.

3.7.2Annual O&M Plan

Page 174 September 2013 Institutional and Financial Assessmentt

Government’s fiscal year commences in July. Flood season also commences in July and continues up to September. Flooding causes damages to structures, specially embankment and irrigation canals. Assessing damages caused due to immediate past flood only possible after end of flood season. On the other hand, due to time constraint, drawing up O&M plan cannot be delayed till end of flood season. Strategy to deal with the situation is to draw two work plan, one main and other supplementary. Original plan will include routine works, works identified through condition survey and periodic work. Supplementary plan will include flood damage repair work which cannot be deferred to next year. For the purpose, a part of allocation (20-40%) will be kept aside for flood damage repair. If the fund requirement exceeds the retained amount, demand will be placed ministry to allocate additional amount from the lump sum kept for unforeseen demand.

Main Work Plan

Annual Structure Condition Report

Every year during dry period, Executive Engineer of each field division, with the help of Sub-Divisional Engineers and Sectional Officers, will prepare Annual Structure Condition Report (ASCR) of infrastructures under his jurisdiction. ASCR will be prepared as per format approved by BWDB management. Under proposed improved practice, preparation of ASCR will be mandatory.

Engineering Survey/ Detailed Field Measurement

If it is evident that a structure has sustained damage to such an extent that requires repair, then detailed field survey/ measurement should be carried out. This should be done for each damaged structure. Afterward, cost estimate should be prepared by structure. The summary of estimate should entered in a register, exclusively for O&M management.

Preparation Preliminary Annual Work Plan

At beginning of fiscal year (in the month of July), the Executive Engineer will prepare preliminary annual O&M work plan for his Division, incorporating works identified through structure condition survey as well as periodic works under his jurisdiction which has been included in medium term plan. This preliminary Divisional work plan will be prepared as per standard format, standard work specification with each work proposal tagged with appropriate priority rating.

The aforementioned work plan will have to be prepared as computer file, using standard software package (possibly MS Excel). The work plan will have to be submitted to Chief engineer (O&M) electronically (possibly via email, with copy to concerned Superintending Engineer and Chief Engineer. Copy of the ASCR should be annexed to the submission.

Consolidation : National O&M Plan

Chief Engineer (O&M) with the assistance of the office of Director (O&M) will review the preliminary annual O&M work plan submitted by field Divisions. He will held Circle level separate consultation meetings with concerned Executive Engineers and Superintending Engineers, to asses priority of demand in the national perspective. Thereafter, draft consolidated work plan will be prepared through a process of exclusion and inclusion on basis of national policy and priority and accommodating with available fund. After getting concurrence of the Board management, consolidated work plan will be submitted to MoWR for onward transmission Ministry of Finance (Finance Division) for ultimate approval of work plan.

Page 175 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Being satisfied that the work plan has been prepared following approved policy and procedure, Finance Division will accord consent on the submitted plan. Thereafter, the plan will be circulated to field offices for physical implementation of works.

Timeframe

Following time schedule would be followed in finalizing annual O&M plan: Submission of Preliminary Work Plan to Board by field office ... : 31 July Consolidation at Headquarter and Submission to MoWR ... : 31August Final approval by MoWR/ finance Division ...... : 15 September Circulation of approved O&M plan to field offices ...... : 20 September

Supplementary Work Plan Time frame for finalization of supplementary work plan will be as follows: Submission of flood damage repair work Plan to Board by field office: 31 July Consolidation at Headquarter and Submission to MoWR : 15 December Submission of additional demand to Finance Division ... : 20 December Approval by MoWR/ Finance Division ...... : 25 December

3.7.3 Prioritization Framework System Priority BWDB have developed large number of FCDI systems which may be categorized as large, medium, small (based on command area). The schemes are spread all over the country. However, socio- economic importance of all schemes are not equal. On the other hand, there is limitation on fund availability for O&M works. For this reason, for rational allocation of O&M fund resource, socio- economic importance need to be considered.

Hence systems will be categorized according to socio-economic importance. Following prioritization rating will be assigned:

Descriptive Rating Numerical Rating Remarks Very high 5 Value will be used in appropriate prioritization formula High 4 Moderate 3 Low 2 Very low 1 Non-Functional 0 A non-functional system will no qualify O&M fund allocation

Element Priority A FCDI system consist different kind and number of physical structures such as embankment, canal, sluice/regulators (termed as element in the context of system definition) etcetera. Each structure has definitive functional role in the system’s functioning. However, all the structure is not equally

Page 176 September 2013 Institutional and Financial Assessmentt important for the overall functioning of the system. To develop a prioritization model in the context of O&M fund allocation, each structure will be assigned priority rating (within the system) as follows:

Descriptive Rating Numerical Rating Remarks Strategic 3 indispensable for scheme’s functioning Important 2 generate substantial benefit or service Marginal 1 generate little benefit or service

Priority Ranking of Work Scope Beyond above prioritization criterion, further criterion can be applied in case fund constraint. The scope of maintenance work will be prioritized as per following ranking scale:

Descriptive Rating Numerical Rating Remarks

National Priority 2 Repair of coastal embankment Repair of submersible embankment of Haor areas Repair of irrigation canal Normal Priority 1 All other work

Criteria for O&M Allocation Long term O&M plan will be prepared using NBB data. The plan will be updated or recast at beginning of each financial year on basis of O&M performance of previous year and Annual Operational Plan of current year. Rationale for budget allocation will be as follows:

Functioning of system as a whole will be considered during budget allocation.

Individual component within the system will be object of budget allocation.

A structure/component of a system/scheme will qualify for budget allocation only if it is an inventory item.

Annual Budget allocation will be based on long term rolling maintenance plan in conformity with annual operational plan. Demand for allocation can be made only as per standard O&M work definition. Priority of a budget demand for a component of a System will be determined on the basis of: System Priority Ranking; Element Priority Rating; Work urgency, indicated by the field office in the preliminary O&M work plan form. Fund Breakup by O&M work Type Routine type of O&M works have to be carried out regularly at required frequency every year. Annual fund requirement for routine O&M can fairly be estimated from a comprehensive inventory of infra- structures. Fund required for emergency type of work as well as flood damage cannot be estimated in advance. Only the after occurrence flood/cyclone, damage assessment can be made and actual fund requirement can be estimated. The requirement of fund for emergency and flood damage repair is dependent on situation of particular year, varies considerably from year to year. Periodic work is taken up on the basis of long term plan and fund availability.

Page 177 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Fund is allocated by government on yearly lump sum. The amount would be split up in 3 parts, one part for routine work, one part for periodic work and damage repair and the other for emergency/ flood damage repair. 10% of fund will be used for routine works, 60% for damage repair and periodic work and 30% for emergency/flood damage repair. Main annual O&M plan would include routine, damage repair and periodic work with unspecified reserve for emergency/ flood damage repair. If in a particular year, emergency/flood damage requirement is less than what was kept for the purpose, the balance amount can be utilized for periodic work.

Performance Monitoring Regular and systematic monitoring of system performance is be institutionalized. The purpose will be to find whether system is performing as intended i.e. generating the desired benefits. This will confirm effectiveness of repair work and justification of O&M spending. The practice will ensure accountability of the staff/staffs concerned.

Performance will be measured in terms of flood Protection, drainage improvement, erosion mitigation, timely and adequate irrigation supply/ irrigation coverage achieved, beneficiary institution development (formation of WMO, integrating them in O&M activities). Each Division will prepare an annual report covering performance of all the systems under its jurisdiction.

Need Based Budget (NBB) The idea was evolved under System Rehabilitation Project(1990s). An NBB is the long term annual O&M requirement of a system/scheme based on actual expenditures incurred over past years. In an NBB, all cost related to O&M are included. Initially, NBBs are based on designs and inventories of structures of the system, standard data on depreciation rates of structures and some standard operational requirements and cost of structures. Over time, when good monitoring procedures are made effective, the NBB will reflect the actual requirements.

The annual O&M program, actually a short term NBB is the annual requirement based on the actual field condition. On a national scale, the annual O&M program will follow the NBB (the sum of individual system/scheme NNBs) rather closely. This will enable GoB to reserve well in time the required fund for the O&M of the completed projects i.e. systems. On the individual system scale, the annual program will vary considerably as certain repair and maintenance action require on an irregular basis. Nevertheless, the NBB being a long term average of O&M requirements is useful at scheme level in providing a basis for future cost recovery based on actual cost in a scheme.

NBB for each system will be developed through analysis of individual structures of the system on the basis of technical and environmental factors in consideration. This will give a sound basis for placing credible annual budget demand to Government from the side of BWDB. NBB data will be computerized in database system. It will serve as baseline for drawing up annual O&M plan in advance. Actual maintenance program will be based on field inspection and survey.

4. ADP MIS

4.1 Development Principle If contemplate objectively and deeply, we will realize that, as professional/ engineer/ manager, what we do is nothing but information processing. Computer can accomplish standard information processing accurately with amazing speed, relieving of unnecessary stress and allowing more time for creative thinking.

Page 178 September 2013 Institutional and Financial Assessmentt

Large number of projects remains under implementation concurrently under BWDB. As described elsewhere in this document, many BWDB units are involved in different ADP implementation process phases such as budget, procurement, contract management, monitoring and reporting physical progress and expenditures etcetera. The planned ADPMIS will facilitate these activities by building relational databases with processing facilities to achieve the ultimate objective of efficient and timely implementation of project.

Life cycle of BWDB project has three phases – planning phase, approval phase and implementation phase. Planning phase starts with the identification of potential future project. However, the planning phase itself goes through an implementation phase of corresponding feasibility study project. The approval phase starts after completion feasibility study, if the feasibility study report comes with positive recommendations. At this stage, formal project document for investment is prepared on the basis of feasibility report and submitted to the approval channel. The project enters the implementation phase, once project document is approved by the Government.

BWDB management has to monitor activities in all phases of project. Thus the envisaged ADP MIS should be designed to cover all phases of project cycle.

Projects are implemented as parts of Government’s Annual Development Program (ADP). Approved document of the project i.e. Development Project Proposal/Proforma (DPP) provides for annual phasing of physical works and financial schedule in addition to overall works requirement, costing, source of funding.

4.2 ADP Database

The starting point of ADPMIS databases will be the pertinent information contained in the project document such as project components (works, goods and service) with cost, year wise physical and financial schedule, procurement packaging and schedule, funding source and amount etcetera. There will also be databases of component wise annual physical and financial target, tenders, contracts, physical/ financial progress and data processing routines contained in the approved DPP. Information implementation progress and status will be gradually added with passage of time.

Various standard formats are in use for different ADP process (a complete set of formats is given in appendix -3). A careful study/examination of the formats indicates full set of data needed as well as many of the standard report the MIS will have to produce.

The ADPMIS need segregated databases located at each functional unit. Thus a networked database configuration will be required for the purpose. A server database like Microsoft SQL server or Oracle will be appropriate. However, for the present, pilot database has been developed using MS Access. It is easy to develop forms, queries and reports in MS Access. In the later stage, when decision will be made to deploy the MIS, it can be upgraded to or translated to MS SQL Server or Oracle.

ADP database tables with structure are given in Attachment–1. Each table includes the field names, data type, field length and description of field.

4.3 Processing Routines

The ADP MIS will include data processing software routines for carrying out necessary operation on database data and production of filled in routine forms, progress and management reports. The following processing capabilities are indicative-

Page 179 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

• Production of ADP budget proposal based on database information on project schedule, cumulative physical and financial progress etc; • Production of ADP break up based on budget information with consistency confirmation as per DPP; • Production of fund release proposal form in consistent manner; • Compiling and consolidating physical and financial progress and producing • Routine monthly, quarterly and annual progress report; • Special report as required by management; • Production of project completion report; and • Archival of project information in consolidated form.

Page 180 September 2013 Institutional and Financial Assessmentt

5. O&M MIS 5.1 Development Principle

It is difficult to provide meaningful judgments regarding operation and maintenance unless it is completely known what facilities BWDB presently have to operate and maintain. Government allocates budget grant for O&M of FCDI infra-structures as well as for maintenance of functional/ residential buildings and other service installations on annual basis. BWDB has to prepare annual O&M plan recurrently. However, preparation of rational O&M plan turns out as a challenging task considering the prevailing practical situation of huge number of infra-structures, geographical spread, and high budget demand from each of concerned field offices, limitation of available fund and short planning and execution time span available. The MIS design principles is directed towards addressing the difficulties faced currently.

For effective utilization of maintenance fund, O&M planning and budget allocation needs to be focused on System instead of looking at individual structure in isolation. In the context of present MIS development, a System is defined as a group of structural and/or non structural elements that can be identified as an independent fully functional unit, generating certain quantifiable benefits or services. A system may be output of one or more project; on the other hand several systems may be product of a single project. A particular System may include only physical elements, only non-physical elements or both types of components. For traditional FCD/I scheme, embankment/ sluice/ regulator/ canal etc will be treated as system element.

In addition to traditional FCD/I schemes, camp & colony will be considered as system and individual building situated in the colony will be element of that System. Similarly vehicles pool, equipment pool will treated as system and individual vehicle/ equipment will be treated as component of the vehicle/ equipment pool system. Large installation such as pump house will be treated as separate system.

The Figure 4.8 shows the schematic representation of overall concepts and components of O&M MIS. Elements of O&M are described below.

5.2 O&M Database The database structure has been designed to be responsive to any query regarding infra-structure and O&M. There will be 4 group data, in relational structure.

5.2.1 System Inventory A computerized System inventory will be central to the envisaged MIS. The inventory database will contain all such technical, social, economic attribute data of Systems and their constituent elements; helpful for drawing up water management plan, making day to day decision on operation and maintenance.

Each system will have national priority ranking from the stand point of O&M. The ranking system will be based on socio-economic importance of the system. The ranking scale may be as very high/high/ moderate/low/very low/non-functional with corresponding numerical ranking from 6 down to 0 (zero).

In turn, each element i.e. structure of a system will have priority ranking within the system based on the role it plays for the functioning of the system. The ranking scale will be: • Strategic (Indispensable for System's functioning) with numerical ranking s 3 • Important (generate substantial benefit or service) with numerical ranking as 2 • Marginal (generate little benefit or service) with numerical ranking as 1

Page 181 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

The above prioritization ranking will be established by independent committee and will be built in the system inventory databases as attributes.

Resource Database

System Inventory Table -12: Work Definition

Table-13: BWD Units Table 1 : System Basic

Table-2 : System Category

Table-3 : Element Basic

Table- 4 : Element Category Budget Database

Table-5 : Element Ownership Table-16 : GoB Grant

Table-6 : Embankment Table-17 : O&M Proposal

Computer Routines

Forms

WMO Database Reports M&E Database

Table-22 : WMO Quires Table -20 : Structure Status

Figure 4.9: Elements of O&M MIS

5.2.2 Standard O&M Work Definition

Structures or elements of systems have been are categorized on the basis of O&M work requirement. Several standard works for each category of structures have been defined on the basis of technical requirement and threshold deterioration level. Works has been categorized as preventive/ periodic/ emergency work. Life cycle of each standard work definition also will be established. Standard definition will give insight into work complexity, cost and enable comparison between demands. Inventory work definition will be used for placing budget demand by field units.

5.2.3 Budget Inventory This database will contain information on budget grant received from government, budget demand from field offices and actual allocation made against individual demand. The database will also contain information on O&M execution i.e. actual maintenance done and actual amount spent.

5.2.4 Inventory of Local Resources

Page 182 September 2013 Institutional and Financial Assessmentt

Mobilization of local resources to shorten the O&M fund gap will be an important strategy for improvement of O&M. In this context, computerized inventory of unused land parcel will be prepared. Each parcel of such land will be categorized on probable productive use. Inventory of unused buildings which can be leased out will be prepared. Also inventory of planted trees with harvesting time will be prepared. This will enable to predict future cash flow for O&M outside Government grants.

5.2.5 Inventory of WMOs WMOs is considered as one of the means of achieving improved O&M. WMOs are exiting in some project. BWDB plan to organize WMO in all FeD/I schemes and ensure environment so that they can play role as per GPWM. Inventory of WMOs will be maintained in the O&M database. Information on WMO membership, executive committee, election schedule, AGM schedule etc will be maintained and updated regularly. Activities of WMO will be monitored.

5.2.6 Common Database There will be general purpose databases of common information such as (i) administrative units (Districts, , unions) (ii) BWDB units (divisions, circles, zones, head quarter offices), Government/ BWDB rules, regulations etc.

5.3 Prioritized Fund Allocation Model Long term O&M plan will be prepared based on inventory information, considering general requirement. The plan will be updated at beginning of each financial year on basis of field report status report and annual O&M implementation report. Thereafter, process of drawing up of annual O&M plan for New Year will begin.

Rational fund allocation against demands coming from all over the country needs comparison among demands. O&M work proposal must be made in standard form using standard O&M work definition. As the work definition applies to specific element type, work proposal must be individual element or structure based. Work proposal from all the field offices will evaluate and finalized on qualification criteria and over all priority.

5.3.1 Qualification Criteria Eligibility of any work proposal getting fund allocation must pass through following criteria:

• The element or structure for which work is proposed must be an inventory item; • The system of which the element is member, should be a functional a system; • Individual component within the system will be object of budget allocation. • Annual Budget allocation will be based on long term rolling maintenance plan in conformity with annual operational plan. • Demand for allocation can be made only as per standard O&M work definition. • Priority of a work demand

5.3.2 Priority Ranking Priority of a budget demand for a component of a System will be determined on the basis of: • National Priority Ranking of the System defined in the MIS inventories; • Component's role defined in the MIS inventory; • O&M work urgency, indicated by the field office in the standard form; • National O&M priority.

Page 183 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

• Work urgency ranking will be determined by technical requirement and functional requirement. Priority ranking may in the scale of 1-5. • National O&M work priority is maintenance of coastal embankment, submersible embankment in haor areas and irrigation infra-structures. These type of work will be given a priority ranking of 2, all other work will have priority ranking as 1.

Overall priority ranking of maintenance demand may be calculated as per formula:

Overall Priority = System Priority *Element Priority * Field Priority * National Priority

Before making final decision on budget allocation, priorities of the all the work proposals will be worked out based on above principles. In case of resource constraint, only high priority demands will be entertained.

5.4 Computer Routines The MIS software will contain routines for system assisted data entry, data presentation, generating customized report, organizing and archiving historical data. In addition to usual data management routines, this component of MIS will contain routines implementing prioritized O&M fund allocation model. The system will have following processing routines:

• Drawing up long term O&M plan; • Compilation of annual division preliminary work plan (performed by each Divisional unit); • Compilation and consolidation of annual national work plan; • Generate prioritized fund allocation report; • Viewing data from different perspective; • Generate various monitoring reports; • Archiving historical data (infra-structure status, annual O&M work plan, expenditure etc) • Updating long term O&M plan; and • Other processing routines as identified during implementation phase.

5.5 MIS Organization A functional MIS (read computerized databases and computer software) will be deployed at each unit of BWDB. For the purpose, an MIS cell will be established at each unit which will be responsible for day to day operation of the system for that unit under the guidance of head of the unit. Directorate of O&M will act as operational focal point of O&M MIS at national level. This unit will be responsible for maintenance/ updating of system software and extend necessary technical assistance to other units in regard to smooth operation of the computer system at those units.

There will be standard procedures and methods for communication and data exchange between MIS cells.

Page 184 September 2013 Institutional and Financial Assessmentt

6. Software Platform Activities related to planning and execution of ADP is performed at different functional units. At the first place is the project charter document (called DPP/TPP) preparation and documentation activity, which is performed by the office of Joint Chief, under office of Chief Planning. The office of Director Program prepares consolidated ADP, comprising all projects currently under implementation and documents all program information. The office Director, Central Procurement Cell monitors tender process and document tender information. The office Chief Monitor monitors project progress, prepare management reports for internal review meeting and prepare reports for IMED in the required format.

Page 185 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Annex I ADP MIS Database Tables

tblProjectBasic Table

This table stores basic information of projects

Field Name Data Type Size (byte) Description ProjectID Auto Number 16 Computer generated unique ID number for Project NationalCode Text 15 Code assigned by Planning Commission ProjectTitle Text 255 Title of the project ProjectTitle_B Text 255 Title of the project in Bengali ProjectShortTitle Text 50 Short Title of the project ProjectShortTitle_B Text 50 Short Title of the project in Bengali ProjectType Byte 1 Project type (1- FS, 2 – Inst Dev, 3 – Investment) EcoSector Text 10 Economic sector under which this project belongs

tblProjectItems Table

This table stores list of items included in each project

Field Name Data Type Size (byte) Description ItemID Auto Number 16 Computer generated unique ID number for item ProjectID Long Integer 4 Project ID number EconomicCode Text 4 Economic code, in numeric character ItemDesc Text 100 Description of item ItemDesc_B Text 110 Description of item in Bengali

tblProjectRevision Table

This table stores information on project revision.

Field Name Data Type Size (byte) Description RevisionID Auto Number 16 Computer generated unique ID number for revision ProjectID Long Integer 4 Project ID number RevisionNo Byte 1 DPP revision descriptive number RevisionDate Date 8 Date of cost estimate ApproveDate Date 8 Date on which this version was approved ProjectCost Single 4 Total estimated cost (current revision) in Lac Taka LCCost Single 4 Cost in local currency (Lac Taka) FCCost Single 4 Cost in foreign currency (in equivalent Lac Taka) FCurrency Text 10 Name of foreign currency ExchangeRate Single 4 Exchange rate of specified foreign currency CostDate Date 8 Date of Rate schedule

Page 186 September 2013 Institutional and Financial Assessmentt tblProjectRevision Tabl (continued)

Field Name Data Type Size (byte) Description NPV_Fin Single 4 Financial NPV value NPV_Eco Single 4 Economic NPV value BCR_Fin Single 4 Financial BCR value BCR_Eco Single 4 Economic BCR value IRR_Fin Single 4 Financial IRR value IRR_Eco Single 4 Economic IRR value

tblProjectItemCost Table

This table stores item wise estimated cost including beak down according to fund source.

Field Name Data Type Size (byte) Description RevisionID Long Integer 4 Revision ID number ItemID Long Integer 4 Item ID number ItemQty Single 4 Quantity in appropriate unit ItemQtyUnit Text 6 Unit description ItemQtyUnit_B Text 10 Unit description in Bengali script ItemCost Single 4 Cost of Item in Lac Taka GoBCost Single 4 Fraction of cost to be funded by GoB (in Lac Taka) RPACost Single 4 Fraction of cost to be funded by Donor as reimbursable project aid (in Lac Taka) DPACost Single 4 Fraction of cost to be funded by Donor, to paid directly to contractor/supplier (equivalent in Lac Taka) DutyTax Single 4 Import duty or value added tax to paid by GoB (Lac Taka) DPACost Single 4 Fraction of cost to be funded by Donor, to paid directly to contractor/supplier (equivalent in Lac Taka)

tblExternaIFunding Table

This table stores information on external funding

Field Name Data Type Size (byte) Description ProjectID Long Integer 4 Project ID number DonorID Long Integer 4 Donor ID number FundingAmount Single 4 Amount of Donor fund in specified curreny CurrencyName Text 10 Name of currency in which fund will be provided NatureOfAssistance Byte 1

tblProcurementPlan Table

Page 187 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

This table stores procurement plan information of a project

Field Name Data Type Size (byte) Description ProcPlanID Auto 16 Automatic computer generated ID Number for Number procurement plan ProjectID Long Integer 4 Project ID number ItemID Long Integer 4 Item ID number ProcurementType Text 1 Procurement Type i.e. Goods or Works or Services PackageNo Text 2 Descriptive identification text PackageDesc Text 255 Description of package works PackageDesc_B Text 255 Description of package works in Bengali Qnty Single 4 Quantity of work included in the package QntyUnit Text 6 Description of quantity unit TenderMethod Byte 1 TenderType Text 3 Type from view point of nationality of participant ProcuringEntity Long Integer 4 ID of BWDB unit that will make procurement TenderApprover Long Integer 4 ID of BWDB unit that will approve evaluation report FundSource Text Name agency funding this procurement EstimatedCost Single 4 Estimated cost of works included in the package PlannedPQFloatDate Date 8 Planned date for pre-qualification invitation PlannedTenderFloatDate Date 8 Planned date for tender invitation PlannedContractSignDate Date 8 Planned date for contract sign PlannedProcCompleteDate Date 8 Planned date for completion of contract work

tblProcurementImp Table

This table stores procurement implementation status of a project

Field Name Data Type Size (byte) Description ProcPlanID Long Integer 4 Plan ID ActualPQFloatDate Date 8 Actual date for pre-qualification invitation ActualTenderFloatDate Date 8 Actual date for tender invitation ActualContractSignDate Date 8 Actual date for contract sign ActualProcCompleteDate Date 8 Actual date for completion of contract work ProcImpRemark Memo variable Details on causes, bottlenecks, revision etc.

tblADPAllocation Table

Page 188 September 2013 Institutional and Financial Assessmentt

This table stores information about ADP allocation made against each project under implementation.

Field Name Data Type Size (byte) Description AllocationID Auto Number 16 Automatic computer generated ID Number FYear Text 7 Financial year of ADP ADPVersion Byte 1 Indicates whether original ADP or revised ADP ADPCluster Text Program head given by Programming Division ADPNumber Integer 2 Serial number given by Programming Division ProjectID Long Integer 4 Project ID RevisionID Long Integer 4 Project revision ID PhysicalTarget Single 4 Physical target in percent AllocationTotal Single 4 Total allocation in lac Taka GoBTotal Single 4 GoB part of allocation in lac Taka GoBRevenue Single 4 Revenue fraction of GoB allocation in lac Taka CapitalTotal Single 4 Total capital part of allocation in lac Taka CapitalRPA Single 4 Capital part of allocation in lac Taka (RPA) RevenueTotal Single 4 Revenue part of allocation in lac Taka PATotal Single 4 Project aid part of allocation RPATotal Single 4 Reimbursable part of PA CDVAT Single 4 Allocatoin for CD and VAT provided by GoB

tblADPAllocationBreakup Table

This table stores information about ADP allocation made against each project under implementation.

Field Name Data Type Size (byte) Description AllocationID Long Integer 4 Allocation ID ItemID Long Integer 4 Item ID PhyTargetAbs Single 4 Physical target in unit of item quantity PhyTargetPC Single 4 Percent physical target GoBFund Single 4 Part of expenditure to be met from GoB Fund RPAFund Single 4 Part of expenditure to be met from GoB Fund DPAFund Single 4 Part of expenditure to be met from GoB Fund WMOFund Single 4 Part of expenditure to be met from WMO/ beneficiary fund

tblADPMonthlyProgress Table

This table stores information about ADP allocation made against each project under implementation.

Field Name Data Type Size (byte) Description AllocationID Long Integer 4 Allocation ID ReportMonth Byte 1 Month for which progress is reported PhyProgress Single 4 Progress in percent of physical target (for the year) GoBFundUtilized Single 4 Incremental GoB fund utilized during month RPAFundUtilized Single 4 Incremental RPA fund utilized during month DPAFundUtilized Single 4 Incremental DPA fund utilized during month WMOFundUtilized Single 4 Incremental WMO fund utilized during month

tblAnnualProgress Table

This table stores information about ADP allocation made against each project under implementation.

Page 189 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Field Name Data Type Size (byte) Description ProjectID Number 2 ReportYear Text 7 Financial Year PhyProgress Single 4 Cumulative progress up to report year GoBFundUtilized Single 4 Cumulative GoB fund utilized up to report year RPAFundUtilized Single 4 Cumulative RPA fund utilized up to report year DPAFundUtilized Single 4 Cumulative DPA fund utilized up to report year WMOFundUtilized Single 4 Cumulative WMO fund utilized up to report year

tblInvitationTable

This table stores information about supply/work/service contracts..

Field Name Data Type Size (byte) Description InvitationID Auto Number 16 Automatic computer generated ID Number ProcPlanID Long Integer 4 Procurement plan identification number InvitationCode Text 20 Short descriptive code identifying the tender InvitationDesc Text 255 Description of tender InvitationrDesc_B Text 255 Description of tender in Bengali NumLot Byte 1 Number of lots included in the tender InvitationDate Date 8 Date on which invitation notice is circulated

tblTenderTable

This table stores information on floated tender and ultimate status.

Field Name Data Type Size (byte) Description TenderID Auto Number 16 Automatic computer generated ID Number InvitationID Long Integer 4 Invitation ID TenderDesc Text 255 Short description giving situation and scope TenderDesc_B Text 255 Ditto in Bangla EstimatedCost Single 4 Estimated cost as per scope of work FinalStatus Byte 1 0 – Failed; 1 – Successfully concluded TenderRemark Memo variable Short description on process and outcome.

tblTenderProgress Table

This table stores information on floated tender and ultimate status.

Field Name Data Type Size (byte) Description TenderID Auto Number 16 Automatic computer generated ID Number ProgressMonth Byte 1 LastStatus Byte 1 1 – Floated; 2 – Received; 3 – Evaluated; 4 – Approved and awarded; 5 – Contract signed 6- Abandoned; TenderProgRemark Memo variable Difficulties/ bottlenecks encountered and way out

tblContract Table

This table stores information about supply/work/service contracts.

Page 190 September 2013 Institutional and Financial Assessmentt

Field Name Data Type Size (byte) Description ContractID Auto Number 16 Automatic computer generated ID Number TenderID Long Integer 4 Procurement plan identification number ContractDesc Text 255 Contract description ContractDesc_B Text 255 Contract description in and script Contractor Text 50 Name of contractor ContractorOrg Byte 1 Organizational structure i.e. single entity of JV LeadPartner Long Integer 4 Contractor ID ContractValue Single 4 Value of the supply/work or service at quoted price rate ContractSignDate Date 8 Date signing contract CommenceDate Date 8 Date on which work under contract to commence CompletionDate Date 8 Date on which work/ supply or service to be completed EngineersEstimate Single 4 Estimated cost of the work/ supply/ service ContractScope Memo variable Brief description of situation,

tblJVPartnerTable

This table stores information about partners of joint venture

Field Name Data Type Size (byte) Description ContractID Long Integer 4 Contract ID Partner Long Integer 1 Contractor ID Share Single 4 Business share under the contracted work

tblContractProgress Table

This table stores information about supply/work/service contracts..

Field Name Data Type Size (byte) Description ContractID Auto Number 16 Automatic computer generated ID Number ProgressMonth Byte 1 Reporting month PcPhyProgress Single 4 Incremental percent physical progress FinProgress Single 4 Incremental percent financial progress ConProgRemarks Memo variable Brief description of difficulties encountered and way out

Page 191 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

O&M MIS Database Tables tblSystem Table

This table stores pertinent information and attribute for each system BWDB physical system.

Field Name Data Type Size (byte) Description SystemID Auto Number 4 Computer generated unique ID SystemTitle Text 100 Title of the System SystemTitle_B Text 100 Title of the System in Bengali script SystemCatID Text 1 System category ID HQZilaID Text 2 ID of district where main or most elements are located SysCommiDate Date 8 Date on which the system came into operation ParentSystem Text 4 The ID of the bigger system whose part is this system GrossArea Integer 2 Area within system boundary (ha) FCArea Integer 2 Area with flood protection facilities (ha) IrriArea Integer 2 Area with irrigation facilities (ha) DrainageArea Integer 2 Area with drainage facilities (ha) SystemPriority Byte 1 System Priority attribute

tblSystemCat Table

This table stores system classification information

Field Name Data Type Size (byte) Description CategoryID Number Byte Category identification number SystemCatDesc Text 50 Category description (FCD/I, Camp&Colony, Vehicle pool, Equipment pool, Vessel pool) SystemCatDesc_B Text 50 Category description in Bengali script

tblSystemUZ Table

This table stores the list of Upazilas covered fully or partly by the System’s command area

Field Name Data Type Size (byte) Description SystemID Long Integer 4 Key, relating to tblSystem Table UZID Text 3 Unique Identification number of particular upazila AreaCov Number 2 Area covered by the system in the upazila

tblSystemUnit Table

This table stores the list of BWDB Divisions responsible for O&M of the system

Field Name Data Type Size (byte) Description SystemID Long Integer 4 Key, relating to tblSystem Table UnitID Number 2 Unique Identification number of particular Division

Page 192 September 2013 Institutional and Financial Assessmentt tblSystemElement Table

This table stores general information about each element (structures) of a system.

Field Name Data Type Size (byte) Description ElementID Long Integer 16 Computer generated unique ID SystemID Long Integer 4 Reference to the system ElementTitle Text 100 Title of the Element ElementTitle_B Text 100 Title of the Element in Bengali script ElementTypeID Text 4 Element Type ID ElementSizeCat Byte 1 System Priority attribute ElementSizeVal Single 2 Size of the element in appropriate characteristic unit ImportantRating Byte 1 Importance of the element in the system ServiceArea Single 2 Area served by the element ProjectID Long Integer 4 Reference to project under which it was constructed EleCommiDate Integer 2 Date on which structure was commissioned ConstructCost Single 2 Cost of construction NBBAmount Single 2 Long term annual O&M budget requirement

tblElementType Table

This table stores pertinent classification attributes of system elements.

Field Name Data Type Size (byte) Description ElementTypeID Text 4 Unique Identification text, all in numeric character ElementTypeNameProper Text 40 Proper type name of the element ElementTypeNameProper_B 50 Proper type name of the element in Bengali script ElementTypeNameClass Text 50 Class type name of the element ElementSizeMeasure Text 20 Prime size measure of the type of element ElementSizeUnit Text 5 Unit of size measure ElementSizeUnit_B 6 Unit of size measure ElementReality Number 2 Idendifier that specifies the element is physical (2) one or institution (1) or conceptual(0) ElementGeometry Text Byte This variable describes whether the structure can be considered as point or a Line SumAllowed Boolean Byte This variable value indicates whether primary size measure of element can be meanigfully summed up

Page 193 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program tblEmbankment Table

This table stores pertinent information of embankment structure

Field Name Data Type Size (byte) Description ElementID Long Integer 4 Unique Identification text, all in numeric character EmbkCodeName Text Code name of the of the embankment StartLocation Text 25 Name of place at which embankment starts StartGeoRef Text 19 Start latitude, longitude pair StartChain Long Integer 2 River chain at the start (in km) EndLocation Text 25 Name of place at which embankment ends EndGeoRef Text 19 End latitude, longitude pair EndChain Long Integer 2 End chainage in meter EmbankLength Single 2 Length of embankment in km EmbankConfig Number Byte Linear configuration (0 – Closed; 1 – Open ended; LocationType Number Byte Embankment Type ( 1- Inland, 2- Coastal) WaterBody Text 20 River or water body along which this embankment is built FloodRisk Number Byte Damage risk resulting from breach (1. Low, 2. Moderate, 3. High) ErosionRisk Number Byte Vulnerabilty to esosion attack (low, moderate, high) EmbankGrade Number Byte Embankment grading ( 1- Main river/Sea, 2- Regional River, 3- Local River)

tblEmbankDesign Table

This table stores design information of embankment (reach wise)

Field Name Data Type Size (byte) Description ElementID Long Integer 4 Unique Identification text, all in numeric character ReachNo Integer 2 Ordinal number of reach, from U/S to D/S ReachStartChain Long Integer 2 Reach start chain in meter ReachEndChain Long Integer 2 Reach end chain in meter StartCrestEl Single 2 Crest elevation at the start of reach EndCrestEl Single 2 Crest elevation at the start of reach CSSlope Single 2 Country side side slope (Z:1) RSSlope Single 2 River side side slope (Z:1) AvHieght Single 2 Average height of embankment at this reach ErosionVul Byte 1 Vulnerabilty to esosion attack (low, moderate, high)

Page 194 September 2013 Institutional and Financial Assessmentt

tblCanal Table

This table stores pertinent information of embankment structure

Field Name Data Type Size (byte) Description ElementID Long Integer 4 Unique Identification text, all in numeric character CanalID Text Local identification codename StartGeoLocation Text 25 Name of place at which embankment starts StartChain Long Integer 2 Start chainage in meter EndGeoLocation Text 25 Name of place at which embankment ends EndChain Long Integer 2 End chainage in meter CanalLength Single 2 Length of embankment in km DirectCommand Single 4 Area in hectare directly served by the canal ChildArea Single 4 Cumulatitve area in hactares served by canals, branching out from the canal ParentCanal Long Integer CanalMemo Memo Note on additional technical characteristics and issues

tblHStructure Table

This table stores pertinent information of hydraulic structure (sluice/ regulator/weir/ barrage/ rubber dam)

Field Name Data Type Size (byte) Description ElementID Text 8 Unique Identification text, all in numeric character GeoLocation Text 20 Name of place at which the structure is located Type Number Byte Standalone or appurtenant NumVent Number Byte Number of Vents VentWidth Number 2 Vent Width in meter VentHeight Number 2 Vent Height in meter USGateType Number Byte DSGateType Number Byte SillLevel Number 2 Sill Level USLooseApron Number 2 Length of U/S loose apron DSLoosApron Number 2 Length of D/S loose apron HStructureMemo Memo Note on additional technical characteristics and issues

tblRevetment Table

This table stores technical characteristics of bank protection revetment

Field Name Data Type Size (byte) Description ElementID Long Integer 4 Unique Identification text, all in numeric character StartGeoLocation Text 25 Name of place at which embankment starts StartChain Long Integer 2 Start chainage in meter

Page 195 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

tblRevetment Table (Continued)

Field Name Data Type Size (byte) Description EndGeoLocation Text 25 Name of place at which embankment ends EndChain Long Integer 2 End chainage in meter RevetLength Single 2 Length of revetment (parallel to river) in km MainMaterial Text 7 Material for constructing bank protection (under water) in meter WaveMaterial Text 7 Material used in constructing wave protection MainWidth Integer Width of main protection in meter ApronLength Integer Length of launching apron (transverse to river) in meter WaveWidth Integer Byte Width of wave protection in meter RevetMemo Memo Variable Note on additional technical characteristics and issues

tblGroyneSpur Table

This table stores technical characteristics of groyne/ spur structure

Field Name Data Type Size (byte) Description ElementID Long Integer 4 Unique Identification text, all in numeric character GroyneSpurType Byte 1 Type depending on pass through condition of impinging flow OrientationAngle Single 1 Orientation to flow direction ShankLength Integer 2 Shank length in meter ShankTopWidth Single 4 Top width of shank part in meter ShankSideSlope Single 4 Side slope of shank NoseType Byte 1 Configuation of nose (T or rounded) NoseLength Single 4 Length of nose perimeter ShankProtectMat Text 7 Material used in erosion protection in shank part NoseProtectMat Text 7 Material used in erosion protection in nose part GroyneMemo Memo Note on additional technical characteristics and issues

tblBuildingTable

This table stores pertinent characteristic information of building

Field Name Data Type Size (byte) Description ElementID Long Integer 4 Unique Identification text, all in numeric character BuildingID Text 10 Number assigned to a building to identify in particular campus UseType Byte 1 Classification according to use i.e. office/residential etc StructureType Byte 1 Structural characteristics (load bearing wall or framed structure) NumStory Byte 1 Number of story

Page 196 September 2013 Institutional and Financial Assessmentt tblBuildingTable (continued)

Field Name Data Type Size (byte) Description FloorArea Single 4 Cumulative area of all floors in square meter WallAreaExt Single 4 Cumulative area of all exterior wall face in square meter WalAreaInt Single 4 Cumulative area of all interior wall face in square meter NumDoor Integer 2 Number of doors in the building DoorArea Single 4 Cumulative area of all door opening NumWindow Integer 2 Number of window in the building WindowArea Single 4 Cumulative area of all window opening FlloorFinish Byte 1 Floor finishing work type WallPaintExt Byte 1 Painting work type of wall exterior faces WallPaintInt Byte 1 Painting work type of wall interior faces BuildingMemo Memo Technical characteristics and issues

tblBudget Table

This table stores information yearly consolidated O&M budget demand and actual allocation by Government.

Field Name Data Size Description Type (byte) FY Text 7 Fiscal year Demand Single 4 Requisition amount (Lac Taka) Grant Single 8 Amount allocated by Government (lac Taka)

tblProposal Table

This table stores pertinent information of each work proposal by field office including cost, priority etc.

Field Name Data Type Size (byte) Description ProposalID Long Integer 16 Computer generated unique ID of this proposal UnitID Integer 2 ID number of BWDB unit making work proposal ElementID Long Integer 4 Unique Identification text, all in numeric character FYear Text 7 Financial year WorkID Text 4 ID of standard work definition StartChain Single 4 Chainage where work start EndChain Single 4 Chainage where work ends WorkQnty1 Single 4 Work length WorkQnty2 Single 4 Work volume WorkCost Single 4 Estimated cost of proposed work (Lac Taka) ProgramID Number Byte ID number of funding program WorkStatus Number 2 Planned, ongoing, completed earlier Priority Number Byte Priority of the [proposed work Remarks Memo - Brief note on work situation

Page 197 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program tblAllocation Table

This table stores pertinent information about actual allocation made

Field Name Data Type Size Description (byte) ProposalID Long Integer 4 Identification number of corresponding proposal AcStartChain Single 2 AcEndChain Single 2 AcWorkQnty1 Single 2 AcWorkQnty2 Single 2 AcWorkCost Single 2 Actual allocation made against proposal (Lac Taka) Remarks Memo - Brief note on allocation

tblWorkDefi Table

This table stores standard maintenance work definition

Field Name Data Type Size (byte) Description WorkID Text 4 Unique ID for work definition WorkShortDesc Text 100 Short description of work WorkShortDesc_B Text 100 Short description of work in Bangla WorkFullDesc Text 255 Full description of work WorkFullDesc_B Text 255 Full description of work in Bangla WorkSpread Text 1 Point work (without need to specify start and end chain) or line work (need to specify start and end chain in making work proposal) WorkType Number Byte Work type as routine maintenance/ emergency work/ flood damage repair/ periodic maintenance VolMeasure Number VolMeasureUnit Text Volume measure unit of work proposal using this definition VolMeasureUnit_B Text Ditto in Bangla LenMeasure Number LenMeasureUnit Text Length measure unit of work proposal using this definition LenMeasureUnit_B Text Ditto in Bangla Remarks Memo - Brief note about situation of work

Page 198 September 2013 Institutional and Financial Assessmentt

Support Database Tables tblBwdbUnit Table

This table stores pertinent information of BWDB unit offices

Field Name Data Type Size (byte) Description UnitID Auto Number 16 Unique identification number for this demand UnitTitle Text 50 Title of unit office UnitTitle_B Text 50 Title of unit office in Bengali AdminRank Byte 1 Rank of the office in the organization setup ParentUnit Long Integer 4 ID of Controlling unit FunctionType Byte 1 1 – Planning/Monitoring ; 2- Execution OperationType Byte 1 1 – Headquarter unit; 2- Field unit Location Text 20 Location of the unit office HeadedBy Text 1 E – Engineer; N – Non-Engineer UnitCatName Text 20 Category name (Zone, Circle, Directorate etc) HeadofUnit Text 20 Nomenclature of the staff acting as unit head Address1 Text 20 Road/ Village/ Para/ Mahalla Address2 Text 20 Town/ City Address3 Text 20 District PostCode Text 4 Postal code Email Text 30 E-mail address Address1_B Text 20 Road/ Village/ Para/ Mahalla in Bengali Address2_B Text 20 Town/ City in Bengali Address3_B Text 20 District in Bengali Responsibility Memo Brief description of responsibilities Setup Type Byte 1 1 – permanent; 2 - temporary AdminPower Byte 1 Administrative power of unit head; 0 – None; 1- specific FinPower Byte 1 Financial power of unit head; 0 – None; 1- specific EstablishDate Date Date on which the unit was established

tblDivision Table

This table stores pertinent information of administrative Division.

Field Name Data Type Size (byte) Description DivisionID Byte 1 Unique identification number for this division DivisionName Text 20 Name of administrative division DivisionName_B Text 20 Name of administrative division in Bengali

tblDistrict Table

This table stores pertinent information of administrative District.

Field Name Data Type Size (byte) Description DistrictID Text 1 Unique identification number for this demand DistrictName Text 20 Name of administrative district DistrictName_B Text 20 Name of administrative district in Bengali DivisionID Byte 1 Division under which this district is situated

tblUpazila Table

Page 199 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

This table stores pertinent information of administrative Upazila.

Field Name Data Type Size (byte) Description DistrictID Text 1 Unique identification number for this demand DistrictName Text 20 Name of administrative district DistrictName_B Text 20 Name of administrative district in Bengali DivisionID Byte 1 Division under which this district is situated

tblDonor Table

This table stores pertinent information of international donor agencies.

Field Name Data Type Size (byte) Description AgencyID Auto Number 1 Computer generated Unique identification number AgencyName Text 20 Name of Agency AgencyName_B Text 20 Name of Agency in Bengali AgencyShortName Text 6 Abbreviated name of Agency AgencyShortName_B Text 6 Abbreviated name of Agency in Bengali AgencyType Byte 1 1 – Government/ Government agency; 2 – International Financial Institution; 3- International Organization; 4 – Non-government Organization (NGO)

tblContractor Table

This table stores pertinent information of international donor agencies.

Field Name Data Type Size (byte) Description ContractorID Auto Number 1 Computer generated Unique identification number ContractorName Text 50 Name of Contractor

tblContractor Table (continued)

.Field Name Data Type Size (byte) Description ContractorName_B Text 50 Name of Contractor OrganizationForm Byte 20 Business organization form (1- Single proprietorship; 2- Partnership; 3- Limited Company) ContractorTIN Text 10 Taxpayer Identification Number Address1 Text 25 Village/ Para/Street Address2 Text 25 City Address3 Text 20 District PostCode Text 5 Postal code ContactPhone Text 11 Phone number Email Text 25 E-mail Address

Page 200 September 2013 Institutional and Financial Assessment

APPENDIX 5:Community-based Flood Risk Management

Page 201 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Page 202 September 2013 Institutional and Financial Assessment

Community-based Flood Risk Management (CbFRM) Program

Quazi Towfiqul Islam Institutional Development Specialist

I. Background Bangladesh’s proneness to various water-related disasters, such as, river and coastal floods, river erosion, drought has grave consequences for the country’s overall socio-economic development. The effects of such disasters on livelihoods of the population are manifold in the affected areas - the severest of them is the effect of river-erosion induced by floods of major rivers, which results in immediate loss of land and other valuables assets of the affected households. As a result, thousands of rural households living along the major riverbanks of Bangladesh, many of who once were not poor, are falling into the poverty-trap for generations. This also slows down the pace of poverty reduction at the national level as well as affects GDP growth. Again, experience shows that amongst the total affected population, poor and other vulnerable groups including women, children, elderly and disabled are not only disproportionately higher in number, their level of distress is also very high in all respects.

The government capacity to address disaster management in Bangladesh is very much constrained by lack of resources. An estimated 5 per cent of the total budget of the country is earmarked for this sector annually for all kinds of natural and man-made disasters. The Table-1 below shows the revised budget allocations for a number of years to carry out the activities of Ministry of Disaster Management and Relief. The allocations combine both development and non-development expenditures, including VGF, TR, GR, special relief and government Social Safety Net Programs (SSNPs) for vulnerable population affected by any disasters, provided during emergencies and for long-term recovery.

6,000 Taka in crore 5,000 4,000 3,000 2,000 1,000 0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Note: 1 crore = 10 million. Source: Finance Division, Ministry of Finance, GoB. Table 1: Annual Revised Budget Allocation for Disaster Management and Relief in Bangladesh (2006/07-2011/12) In the above context community-based disaster risk management is very important in planning any development project in Bangladesh. In this respect this PPTA on Main River Flood and Bank Erosion Risk Management (shortly, MRP) needs to focus on Community-based Flood Risk Management (CbFRM) program, under non-structural mitigation component, side-by-side major structural mitigation component to stabilize river channels in vulnerable reaches of major rivers Jamuna and Padma. The main aim of CbFRM program is to strengthen community resilience to river flood damages, periodically

Page 203 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program affecting the population in riverbank areas, based on various activities throughout the year. This approach corresponds with the approach adopted by Bangladesh government in overall disaster management. In this respect there is a significant shift from conventional relief and rehabilitation to community-based risk reduction strategies or programs to reduce community’s vulnerability to various disasters, including flood risks and river erosion, and the extent of hazards/damages caused by those. Hence, heavy reliance on relief and long-term rehabilitation is also substantially reduced during and after disaster, which is also believed to stimulate early recovery of the affected communities to pre- disaster level.

The ‘Capability Assessment for Readiness’ or risk management is usually an approach to include thirteen elements to address disaster risk reduction activities/programs at the national as well as community levels. They include: (1) laws and authorities; (2) hazard identification and risk assessment; (3) hazard mitigation; (4) resource management; (5) direction, control and coordination; (6) communications and warning; (7) operations and procedures; (8) logistics and facilities; (9) training and exercises; (10) evaluations and corrective actions; (11) crisis communications; (12) public education and information; (13) finance and administration. All these elements are a mix of activities to be initiated and implemented by the central government, local government institutions, NGOs, members of civil societies and community people or households at the lowest level. For example, apart from the laws and authorities, which are to be formulated by the central government, all other elements should involve all others, as mentioned above.

To reinforce community-based risk reduction a number of activities need to be carried out under the above different elements, which usually include (a) organizing communities and building awareness on disasters, (b) developing early warning and communication systems, (c) mapping risks, resources and capacities, (d) formulating strategies to increase resilience including conserving natural resources, (e) developing skills, (f) developing networking and knowledge exchange with relevant organizations and groups, (g) knowing and practicing safety measures and first aid, (i) accessing and improving healthcare, (j) preparing and implementing community and household disasters plans, (k) learning and practicing flood embankment maintenance, (l) securing shelters, (m) participating and partnering with institutional actors in the government and other levels to be the part of decision-making process, (n) accessing institutional resources for preparedness, (o) monitoring these activities to remain active in all these fronts of community-based disaster risk reduction throughout the year.

II. Findings in community-based early warning system and recommended actions

Findings: Experience of an earlier project piloted in 2009-2010 to develop effective early warning dissemination system of BWDB for flash flood risk reduction in Kalaria-Gabragate region in Netrokona Upazilla in Netrokona district49 had a number of critical observations, of which the relevant ones are highlighted below:

• Most people did not have access to early warning before floods, and they did not where to get it from. • Many people came to know the warnings from the neighbors, but were confused about their authenticity.

49 See the report entitled ‘Strengthening Community Based Early Warning Dissemination System for Flash Floods in Kaliara Gabragati Union, Netrokona: Final Report’, BDPC, November 2010.

Page 204 September 2013 Institutional and Financial Assessment

• The community did not understand the true meaning of the warnings, as they were not disseminated in simple language with local dialect. • People relied on indigenous knowledge about early warning. • Warnings were not disseminated well ahead of the floods. • Authenticity of the warnings to the community depended on dissemination by respected community people i.e. Imams of mosques,teachers, social workers,volunteers, UP members,etc. • Flood marker posts were not needed to set up a various points indicating danger levels. • Colors fags were should have been used to indicate rise and fall of water levels. • The mosques microphone could be used to disseminate early warnings. • Skill training of the volunteers and community people were needed for flood risk management at household and community levels.

Recommendations: Based on the above findings some important recommendations were formulated, which are also appropriate in similar other contexts to develop a sustainable ‘people- centered’ Community-based Flood Warning Dissemination System:

• Recognizing the people at risk as the main actors in implementing early warning system. A group of people amongst them should be particularly equipped with required skills to act as ‘Change Agents’, who should be in the forefront to receive and disseminate early warnings effectively and timely to individual households in the community in local language and accent. • Integrating indigenous knowledge into the system to ensure that community people easily understand and respond to the warnings quickly. • Warning dissemination system must be appropriate to the local context so that community people could easily access the information and understand those. To this end, a schematic early warning dissemination system has been presented below:

Source: Ibid, BPDC report.

Figure 5 1: Early Warning Dissemination System

Page 205 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

In the above figure it is shown that control office at the Deputy Commissioner’s office always has access to flood information from the Flood Forecasting and Warning Center (FFWC) based at BWDB in Dhaka50 as well as Disaster Management Information Center (DMIC) at the Ministry of Disaster Management and Relief. The DRRO can quickly send the warning, using established communication networks, to Union Council via UNO/Project Implementation Officer, PIO, stationed at Upazila head quarter. However, in this system there are challenges on how to disseminate the warning at the community and household levels. The following recommendation is put forward to address this challenge.

• Developing the ‘change agents’ in the community (say, a ward or village in a Union), who are the community volunteers, organized in several groups, to perform different activities in a systematic manner based on information gathered at correct sources. Thus, some of them would have access to using the loud speakers of the mosque (there are normally three to four mosques in every ward of a union) to speak about the warnings, some would hoist flags at pre- selected public spots and communicate with each other, others would post warnings to each household member in the neighborhood and so on. One of the most experienced volunteers in each ward should have the responsibility to manage the entire process of early warning dissemination system. • Organizing training programs for the ‘change agents’ so that they can efficiently conduct early warning dissemination in the community covering the following topics: - Types and nature of floods in Bangladesh. - Importance of early warning dissemination in the community. - Existing flood warning system and its limitations. - Community-based warning dissemination procedure. - Interpretation of warning flags and flood marker. - Formulation of a warning message relevant to local context. • Keeping a budget for procurement of necessary instruments and others for the ‘Change Agents’, such as, hand microphones, dresses including helmets and shoes etc. to disseminate early warnings in the community.

III. Existing institutional framework and response to disaster management

The Ministry of Food Security and Disaster Management (it has been recently restructured to name as Ministry of Disaster Management and Relief, excluding food security) has developed and adopted via Standing Orders on Disaster (SOD), published in April 2010, an elaborate institutional framework, its composition, and responsibilities for various levels starting from the national mechanism for policy guideline and coordination down through local Disaster Management Committees (DMCs) at all districts, city corporations, Pourashavas, Upazilas and Unions to address overall disaster management in Bangladesh. Relevant government departments and various non-government entities (professional, civil society groups and NGOs) are represented in the DMCs.

The recently constituted Department of Disaster Management (DDM), a merger of former Department of Relief and Rehabilitation (DRR) and Disaster Management Bureau (DMB), has its main coordinating role at different national platforms as well as DMCs, entrusted with planning, implementation and monitoring of disaster management activities at local levels based on national level guidelines and directions. It is to be noted that unlike other DMCs, there is no DDM representative in Union DMCs along with others from Union-based concerned government departments. As regards BWDB, Executive

50 FFWC in BWDB has been strengthened over the years since its inception in 1972 to become a center of excellence, equipped with the state of art of technology and skilled staffs, and capable of flood forecasting for 72 hours with almost 100% accuracy.

Page 206 September 2013 Institutional and Financial Assessment

Engineer is a member of only district DMC and the organization is not represented in other DMCs (See SoD for details).

As mentioned above a shift towards concentrating more on disaster risk management at the community and household levels in overall disaster management has made it important for this future project to organize and sustain CbFRM programs round the year in flood and river-erosion prone reaches in subsequent phases.

It is deplorable that at the community level affecting the households in any disasters, risk management activities or programs are not at all carried out or coordinated during normal time of a year under any DMCs. For example, none of the DMCs sit regularly once a month during normal time, as per SoD. Therefore, CbFRM is severely undermined and neglected throughout the year, which weakens the foundation of an effective disaster management advocated by the government. Quite contrarily, DMCs work in full capacity only during disaster and post-disaster recovery periods - the only motivating factor behind relates to making decisions on allocation and distribution of relief and rehabilitation goods rendered by the government for disaster victims. For the same reasons the Union Council/Pourashavas DMCs, the closest entity to the community, also have no work for CbFRM during normal time. CbFRM has, thus, been treated as secondary, across the board. Dealing with this issue seriously at the top level, therefore, can hardly be overemphasized, which must be demonstrated in concrete actions, monitoring and follow-ups at the community level round the year.

IV. Current state of institutional linkage and coordination between BWDB and DDM for disaster risk reduction

In the SoD the role of BWDB, as the chief player in the country’s water management, in the overall context of disaster management in Bangladesh is relatively minor compared to other relevant government departments/agencies both at national51 as well as district DMC levels. The latter is the only local forum where BWDB had a chance to play somewhat a prominent role in coordination with local DDM representative and others directly. The fact remains that this also does not happen in reality, as expected. Generally speaking, this might be the result of a historical trend.

Regarding monthly district DMC coordination meeting, it does not hold at all during normal time dealing mainly with disaster preparedness issues. Instead, these issues, if there are any, are discussed as part of numerous other issues in monthly district development coordination meetings. Most of the time there are no issues to be discussed at this level concerning BWDB’s role. However, only during flood season, there might be the issue of early flood forecasting or warning to discuss and disseminate. As it happens, this is the only area where BWDB does have a role to play at local level by alarming the local administration to take necessary precautionary measures at the community level in the face of imminent disaster. Truly, this is also not a case that should wait for DMC meeting, the relevant information is also made available to District Relief and Rehabilitation Officer (DRRO) of DDM, who work under district administration, and others concerned (Disaster Management Information Center, DMIC) through other official means. On the other hand, during flood disaster threatening embankments, BWDB has an independent and exclusive role to protect the embankment from any damage based on its own procedures that are not dealt with or usually discussed at DMC.

Steps to improve overall coordination between BWDB and DDM at local and other levels to strengthen CbFRM program

51 Not in a single forum DG, BWDB is a member. Again, apart from the Chairman, BWDB, who is a member of Committee for Speedy Dissemination and Determination of Strategy of Special Weather Bulletin, none from BWDB is represented in any of the forums directly interfacing DDM at the national level.

Page 207 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

In view of weak coordination and linkage between BWDB and DDM at all levels to address CbFRM and the stipulation to implement the CbFRM program by DDM, the following steps should be considered for effective implementation of CbFRM program in various phases of MRP.

• Apart from the SOD guideline, a separate MoU between DDM and BWDB at the institutional level should be signed to expedite existing coordination mechanism as well as evolve new ones on bilateral basis for the interest of future project during implementation. Based on the success of these evolving modes in connection with strengthening CbFRM, they should be formally institutionalized in due course for long-term effects. • the BWDB representative (Sub-division or at least Assistant Engineer) should also be made a member of the Upazilla Disaster Management Committee (UzMC) that operates very close to disaster-affected communities above the UDMC. This arrangement can, at least be, tried during project implementation to show BWDB’s belongingness to the project.

V. Main and sub-activities of CbFRM program

In the above context following main and sub-activities are proposed for effective implementation of CbFRM program in different sub-projects under different tranches of MRP.

1. Mobilization of community people in ‘Ward Disaster Management Committees’ (WDMCs): Experience shows people living below poverty line are, in most cases, the worst victims of river floods and erosion in the sub-project areas.52 In this category there are also people, who were once were affluent farmers but due to river erosion lost their lands and became landless and homeless. Considering the extreme vulnerabilities of these people in the community and their cohesiveness as social groups, they should be regarded as ‘target population’ of the CbFRM program. Given the resource and time constraints a representative sample of this population will be organized in every ward in Ward Disaster Management Committee(s) (WDMCs)53, comprising around 25 (twenty-five) ‘physically-abled adult’ members in each committee. The committee members will be either males or females or both depending on concrete situations in the sub-project areas. However, women should constitute at least 40 per cent of the total committee members. They may be popularly called as ‘Change Agents’ in the community, who would be in the forefront to implement CbFRM activities in the sub-projects.

The number of WDMC in each ward of the sub-project should be proportionate to the total number of target population in each ward. It should be noted that the WDMCs would be the focal points of all community-based flood risk reduction activities during and post MRP, as expected.

In Table-1 below an attempt has been made to show the distribution of Change Agents and WDMCs in three sub-projects, across the tranches, based on the target population distribution in those areas. It is seen that a total of 7,000 people will be targeted over the three tranches, who would be organized in total 280 WDMCs in the following order: 40 in tranche-1 (20 in JRB1, 19 in JLB2, and 1 in PLB1), 120 in tracnche-2 (61 in JRB1, 58 in JLB2, 1 in PLB1), and 120 in tranche-3 (61 in JRB1, 58 in JLB2, 1 in PLB1).

52 As evidenced, non-poor population mostly does not live near or along the flood and erosion-prone riverbank areas. Even if lived they before on their own lands, but due to recurrent floods and erosion they left the areas by selling those lands and other properties to others and moved inside in other safer and more protected areas for living over the years. 53 There were no previous community groups created by any organizations (neither CDMP, UPs and NGOs) to address disaster risk reduction in the project areas.

Page 208 September 2013 Institutional and Financial Assessment

Table 2: Distribution of Change Agents and WDMCs in CbFRM Program by Sub-projects and Tranches Sub- Tranche-1 Tranche-2 Tranche-3 Total project Change Agents WDMC Change Agents WDMC Change Agents WDMC Change Agents WDMC JRB1 510 20 1,530 61 1,530 61 3,570 142 JLB2 480 19 1,440 58 1,440 58 3,360 135 PLB1 10 1 30 1 30 1 70 3 Total 1,000 40 3,000 120 3,000 120 7,000 280 Source: PPTA study.

2. Undertake capacity development training for WDMCs: A well-designed training program54 for capacity development of the WDMCs (cohesive community groups), comprising 25 (twenty five) so called ‘Change Agents’ in each WDMC, should be imparted in batches (each batch consists of a WDMC) with a duration of 5 (five) days for each batch during implementation of CbFRM program. The training should be conducted based on participatory approach and practical demonstrations, as far as possible. As a result of such training WDMCs will be able to effectively carryout CbFRM activities in the concerned communities. This training program should cover the following main contents:

• Definition of disaster, risk, vulnerability and capacity. • Concept of disaster management and disaster risk reduction (Red Cross Code of Conduct, Sphere Standards, Hyogo Framework). • Basic concepts of natural disasters/hazards in Bangladesh (floods, river erosions, cyclones, droughts, tornedoes, earthquakes). • Disaster cycle and disaster management cycle. • Assessment of needs, capacity and vulnerability. • Flood warning system. • Preparedness and mitigation activities (community-based and organizational) with emphasis of community O&M activities. • Emergency response, relief, rehabilitation, reconstruction and development. • Community participation in disaster risk reduction (DRR) and disaster management (roles and responsibilities of WDMCs, community involvement and contingency planning). • Management role and coordination with community, NGOs, government organizations, local institutions, local civil society). • Disaster management and gender balance – assessing the vulnerabilities of women, children, elderly and persons with disabilities (PWDs). Participation of women in DRR and disaster management. • Develop plan of action.

Main activities of WDMCs in risk reduction The WDMCs being the main actors of CbFRM program at the grass roots are expected to perform both O&M and other activities.

(a) O&M activities: • Planting both fruit and timber trees in the lands protected by embankment in the countryside and also fodder trees (grasses) under ‘Social Forestry’ on the slopes of riverside embankment for livestock (goat) grazing that has a link to produce milk and meat by people in the project areas.

54 A donor supported ongoing ‘Comprehensive Disaster Management Program (CDMP)’ undertakes only institutional capacity building of District DMC (DDMC), Upazila DMC (UDMC) and Union DMC (UnDMC).

Page 209 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

• Operating sluice gates with the participation of community people at particular points. This activity should, however, be coordinated with local BWDB.

(b) Other activities:

• Undertake early flood warning activities including marking and monitoring of water levels at different points as well as disseminate those to the community people through various means based on the information gathered from the central flood information center of the BWDB. An innovative means would also include providing very localized information through SMS mass blasting using the country’s cell-phone operators. Besides, during normal time organize mass public awareness programs through folk songs, popular drama and field-shows. • Equip the ‘Change Agents’ with hand phones and dresses, including helmets and shoes, etc. to carry out their early warning activities and, most importantly, ‘socially acknowledge’ their valuable individual services to the community.

VI. Implementation arrangement

As per the agreement between ADB and Bangladesh government Bangladesh Water Development Board (BWDB) will be the Executing Agency of MRP, dealing with the major structural mitigation component of the project. On the hand, DDM will implement the CbFRM program, as an Implementing Agency (IA), under a separate package and budget allocation provided by BWDB. The scope and operational issues of such arrangement will be articulated in a MOU signed between DDM and BWDB before inception of the program. In this regard a Project Management Unit (PMO) would be established at DDM headed by a Project Director (PD) to the rank of a Director, who would be holding the main responsibility to implement the CbFRM program over the tranches in different sub-project areas.

To discharge its responsibilities, PMO at the outset will engage an Implementation Consultant (IC) on full-time basis to mainly (i) assist PMO to recruit an Implementing NGO, called INGO-FRM, which will be responsible to implement the program activities at the grassroots, (ii) coordinate and monitor program implementation activities at all levels, including at the grassroots by INGO-FRM, as per the design, on behalf of PMO and report to the Project Director, (iii) review all relevant documents, quarterly progress reports of INGO-FRM and suggest actions, if any, for smooth implementation of the program, (iv) provide clearance to all kinds of payments to INGO-FRM, (iv) represent the program in different forums jointly with or without DDM representative and PD etc. (The detailed ToR of IC will be developed by PMO in due course). The IC must have at least 10 (ten) years of practical experience in implementing similar projects elsewhere within Bangladesh with success and reputation.

As mentioned, PMO would also engage an INGO-FRM with the support of IC to implement CbFRM program activities at the grassroots, which include (1) mobilizing community people in ‘Ward Disaster Management Committees’ (WDMCs), and (2) conducting capacity development training for WDMCs. In addition to the above activities, the INGO-FRM will also be responsible to organize and monitor WDMCs activities in every tranche. It is to be noted here ADB’s procurement guideline will be followed in procurement of both IC and INGO-FRM.

The INGO-FRM should be an experienced not-for-profit NGO with 15 (fifteen) years of proven track record, skills and reputation in implementing similar projects at the grass-roots level. Depending on the eligibility, the implementing NGO (INGO) can either be a local or national or there can be a joint venture or association of both types of NGOs. However, in the latter case there should not be any option for a combination of not for profit NGO and for profit private company, registered as NGO.

Page 210 September 2013 Institutional and Financial Assessment

INGO-FRM with close cooperation of local DDM office at the district and Upazila levels will perform its various field activities and, if needed, will report on the status of the program to local DDM offices. Local DDM will, specifically, extend all required administrative and coordination supports to INGO-FRM for effective implementation of the program at the grassroots. (Detailed ToR of INGO-FRM will be developed by DDM in due course).

Some issues in implementing program activities by INGO-FRM

The INGO-FRM will have to focus on some operational issues during implementation of the program activities, which are as below:

• In selection of the WDMC-members, INGO-FRM should follow the standard practices of the NGOs in selection of the beneficiaries in different targeted programs. Besides, INGO-FRM can also depend on the existing NGOs’ groups in the community or do a rapid household survey, or follow both approaches. Finally, the list of WDMC members should also be checked with the local Union Parishads or Councils (UPs). This would be seen as an opportunity for the INGO-FRM to introduce itself to UPs, whose cooperation would be very important at different stages during implementation of the program. Apart from UPs, INGO-FRM should also liaise with other relevant local institutions (notably, local government departments) to draw their attention and cooperation for the program, especially for sustaining its impacts through some kind of institutionalization of the process in future. DDM should a take lead in this regard. • In carrying-out capacity development training programs the INGO-FRM should primarily rely on their own resource persons. However, if needed, subject specific resource persons can also be engaged from outside with prior approval of PMO.

VII. CbFRM Program Budget

The budget is presented in Attachment-1 by dividing it into costs for (1) training modules development, (2) training conduction, (3) mass awareness programs, (4) logistics support for ‘Change Agents’ and (5) program management of INGO-FRM. The budget for engaging an Implementation Consultant (IC) has not been shown here.

Page 211 PPTA 8054-BAN: Main Rivers Flood and Bank Erosion Risk Management Program

Attachment -1 CbFRM Program Budget in different Tranches and Sub-projects

A. One time cost for development of training modules with lesson plans on CbFRM capacity building =Tk.50,000 (USD 625 approx.) B. Training Budget: (Values are in Taka) Cost of items per batch Tranche-1 Tranche-2 Tranche-3 Total JRB1 JLB2 PLB1 JRB1 JLB2 PLB1 JRB1 JLB2 PLB1 (20 batches) (19 batches) (1 batch) (61 batches) (58 batches) (1batch) (61 batches) (58 batches) (1batch) 1. Foods for 27 persons (25 1,485,000 1,410,750 74,250 4,529,250 4,306,500 74,250 4,529,250 4,306,500 74,250 20,790,000 participants + 2 trainers) per batch for 5 days = Tk.74,250 2. Conveyance for each 250,000 237,500 12,500 762,500 725,000 12,500 762,500 725,000 12,500 3,500,000 participant Tk.100X25X5 days=Tk.12,500 3. Stationary = Tk.12,000 240,000 228,000 12,000 732,000 696,000 12,000 732,000 696,000 12,000 3,360,000 4. Venue = Tk.3,000 60,000 57,000 3,000 183,000 174,000 3,000 183,000 174,000 3,000 840,000 5. Documentation =Tk. 500 10,000 9,500 500 30,500 29,000 500 30,500 29,000 500 140,000 6. Facilitators’ (2) 300,000 285,000 15,000 915,000 870,000 15,000 915,000 870,000 15,000 4,200,000 honorarium = Tk.3,000/day X 5 days = Tk.15,000 Total 2,345,000 2,227,750 117,250 7,152,250 6,800,500 117,250 7,152,250 6,800,500 117,250 32,830,000 (USD 410,379 approx.)

Page 212 September 2013 Institutional and Financial Assessment

C. The cost of organizing at least three mass awareness campaigns through folk songs, popular drama and field-shows in each sub-project during the monsoon each year = Tk.50,000/campaign X 3 times X 3 Sub-projects X 8 years = Tk.3,600,000 (USD 45,000 approx.) D. Logistics support (hand phones and dresses, including helmets and shoes, etc.) cost for the ‘Change Agents, across the tranches = Tk.10,000/change agent X 7,000 change agents = Tk.70,000,000 (USD 875,000 approx.). The disaggregated figures between tranches will be as follow: Tranche 1 = USD 125,000, Tranche 2 = USD 375,000, Tranche 3 = USD 375,000. E. Program Management Budget: Cost items Tranche 1 Tranche 2 Tranche 3 Tranche 1 Tranche 2 Tranche 3 Total Budget Number Number Number Budget (Tk.) Budget (Tk.) Budget (Tk.) (Tk.) 1. Coordinator 1 2 2 Tk.30,000/month x 32 months = Tk.35,000/month x 2 x 39 months Tk.40,000/month x 2 x 39 months 6,810,000 Tk.960,000 = Tk.2,730,000 = Tk.3,120,000 2. Community field 5 15 15 Tk.8,000 /month x 5 x 32 months = Tk.10,000/month x 15 x 39 months Tk.12,000/month x 15 x 39 months 14,150,000 worker (CFW) 1,280,000 = Tk.5,850,000 = Tk.7,020,000 3. Accounts officer 1 2 2 Tk.10,000/month x 32 months = Tk.12,000/month x 2 x 39 months Tk.15,000/month x 2 x 39 months 2,426,000 Tk.320,000 = Tk.936,000 = Tk.1,170,000 4. Support staff – 6 6 6 Tk.4,000/month x 6 x 32 months = Tk.6,000/month x 6 x 39 months = Tk.8,000/month x 6 x 39 months = 4,044,000 2/field office Tk.768,000 Tk.1,404,000 Tk.1,872,000 5. Conveyance for staff - - - Tk.30,000 for a Coordinator Tk.108,000 for 2 Coordinators Tk.144,000 for 2 Coordinators 1,707,000 @Tk.1,000/month + @Tk.1,500/month + Tk.540,000 @Tk.2,000/month + Tk.810,000 Tk.75,000 for 5 CFWs for 15 CFWs @Tk.1,000/month for 15 CFWs @Tk.1,500/month = @Tk.500/month = Tk.105,000 =Tk.648,000 Tk.954,000 5. Field office rent 3 3 3 Tk.5,000/month x 3 x 30 months = Tk.8,000/month x 3 x 36 months = Tk.10,000/month x 3 x 36 months 2,394,000 Tk.450,000 Tk.864,000 = Tk.1,080,000 6. Office Stationery - - - Tk.1,000/month x 3 x 30 months = Tk.2,000 /month x 3 x 36 months = Tk.3,000/month x 3 x 36 months = 630,000 Tk.90,000 Tk.216,000 Tk.324,000 7. Office maintenance - - - Tk.1,500/month x 3 x 30 months = Tk.2,500/month x 3 x 36 months = Tk.3,500/month x 3 x 36 months 783,000 & utilities Tk.135,000 Tk.270,000 =Tk.378,000 Total - - - 4,108,000 12,918,000 15,918,000 32, 944,000 (USD 411,800 approx.) Base on the above item-wise calculation total budget of CbFRM program has been estimated to be USD 1,742,804 approx.

Page 213