P ublic Sector Development Project Preparation, Approval and Revision Process

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

2. What is a Project A planned piece of work that has a specific goal, purposes, objectives and output and that usually requires certain inputs and specific time; Logical Framework of a project: • Goal • Purpose/Objectives • Output • Input

3. Types of projects • Investment Investment Projects are three types • Completely Government own funded project; • Development Partner’s funded project (which may include or not include GOB fund); • Organization’s own funded project (Autonomous Organizations)

4. Types of Project Technical Assistance Project (TA Project) TA projects are three types • Development Partners/ GOB or both funded TA project under public sector; • Development Partner’s funded Regional TA project; • Development Partner’s funded TA project under private sector;

5. Types of Project In addition to the above types of investment and technical assistance projects, we have another two types of projects in our planning process : • Survey/Feasibility Study Project under development budget; • Specific types programme under revenue budget:

6. Types of Project Investment Project • Projects having mainly physical components, which we termed as capital investment components such as construction of power stations, Industries, buildings, roads, highways, culverts and bridges etc which usually have physical existence; • Having or not having TA components; • Includes in the ADP as main programme;

7. Types of projects Technical Assistance Improvement of institutional capacity, transfer of technology and development of human resources, including; • Consultancies, • Local/ foreign training/ fellowship, • Technological services of experts etc;

8. DPP/TPP/FSP Format Investment Project • Development Project Proforma (DPP) Technical Assistance Project • Technical Assistance Project Proforma (TPP) Survey / Feasibility Study Project • Survey/ Feasibility Study Project Proforma (FSP)

9. Project Formulation and Approval Process • Executive Agency/Division/ Ministry prepares the DPP for investment project; • Project Scrutiny/Examination Committee (PSC) chaired by the Secretary of the respective Division/Ministry reviews the project proposal; • If the project is accepted by the PSC and the project has the provision of manpower, than the project proposal sends to the Manpower Review Committee of Finance Division for approval of project manpower;

10. Project Formulation and Approval Process • Manpower Review Committee of Finance Division must provide their recommendations regarding manpower within 15 days after receiving the proposal of project manpower; • Implementing Agency revised /re-casted the DPP as per recommendation of the manpower committee and resubmit the DPP to the respective ministry/ Division; • If needed FIRR and EIRR calculation sheet attached with the DPP;

11. Project Formulation and Approval Process • For all road transport sector project, Project Appraisal Framework (PAF), Project Appraisal Report (PAR) and Appraisal Summary Table (AST), Hydrological and Morphological study report ( if the project is 100 m above bridge project) must be attached with the DPP; • Executing Ministry submit the re-casted DPP to the Planning Commission within 10 days after receiving the DPP from Implementing Agency; • The concerned Wing/ Sector-Division of planning Commission examines the DPP and prepares Working Paper for Project Evaluation Committee (PEC) meeting;

12. Investment Project Approval Process Major criteria for appraisal in the Planning Commission • Relevancy of the project with the national priority • Overall sectoral allocation as well as MTBF and existing projects of the agency; • Relevancy of the project with the line of 6th five years Plan, Sectoral Plan and other National Documents;

13. Investment Project Approval Process Major criteria for appraisal in the Planning Commission d. Impact on revenue budget after completion of the project; e. Examination of the project duration f. Consideration of necessary fund mobilization etc g. If the project is a next phase of an earlier project then the Evaluation Report of previous phase prepared by IMED/any other organizations is needed to be considered;

14. Investment Project Approval Process • If the Planning Commission (PC) is not satisfied with the proposal, PC may return it to the Ministry/ Division within 30 working days with specific comments; • Incorporating the recommendations of PC, DPP must be submitted to the Planning Commission within 25 working days • Planning commission submits DPP to the project evaluation Committee • For PEC meeting notice needs to be issued at least seven working days before the meeting

15. Investment Project Approval Process • Minutes of the PEC meeting have to be issued within 10 working days of the meeting • If Recast is needed the Ministry will send the recast DPP to PC by reflecting recommendations of the PEC • If PEC recommends cost rationalization by IMED, IMED needs to do it within 15days and sends it the ministry

16. Investment Project Approval Process • Ministry sends DPP to the Agency for recast, Ministry and Agency normally get 25 days for recasting the DPP but for any specific cause get maximum 40 days. • If recast DPP is not sent within 40 days then the project will be automatically void. • After receiving recast DPP/ since Issuing date of minutes, Sector Division place the DPP to ECNEC or Planning Minister for approval with in 10 days

17. Investment Project Approval Process • If the total Project cost is within TK. 25 core, approving authority is given to the Honorable Minister for Planning; • If the total project cost is more than TK. 25 core, approving authority Executive Committee of the National Economic Council (ECNEC); • An approval order for each DPP has to be issued within 3 days ;

18. Summary of Approval Process and Time line for Investment Project

19. Summary of Approval Process and Time line for Investment Project

20. Summary of Approval Process and Time line for Investment Project

21. Summary of Approval Process and Time line for Investment Project

22. Summary of Approval Process and Time line for Investment Project

23. Technical Assistance (TA) Project • Implementing Agency (IA)/Executive Agency prepares Technical Assistant Project Proposal (TPP) and submits to the Ministry; • The planning Wing/Branch of the Ministry preliminary examines acceptability of the proposal; • If the Project cost is within TK. 7 Crore, planning Wing/ Branch of the Ministry submits TPP to the Departmental Special Project Evaluation Committee (DSPEC) for recommendation;

24. Technical Assistance (TA) Project • Hon’ble Minister of that Ministry approves TPP on the basis of DSPEC recommendations • This process shall be completed within 30 days by the Ministry from the receiving date.

25. Technical Assistance (TA) Project • If the Project cost is above TK. 7 Crore, Ex. Ministry sends TPP to the Planning Commission; • Respective Sector Division of PC submits the TPP to the SPEC meeting; • Minister for Planning approves TPP on the basis of recommendation of SPEC; • This process shall be completed within 45 days by PC from the receiving date;

26. Revision of projects • Project should not be revised more than two times; • Third time revision allowed incase of special needed but third time revision should be processed with the prior approval of the Minister for Ministry of Planning;

27. Why revision • If planned objectives are not achievable and have to change; • If cost is increased due to currency fluctuation and/or CDVAT cost changed; • If national pay scale and other allowances are enhanced; • If physical items’ cost is increased or decreased; • If design needs to be changed;

28. Why revision • If have to include new items, change in personnel, vehicle and mode of finance • Two times revision allowed • No post facto approval • If need 3rd revision- Prior permission from Planning Minister for processing

29. First revision • Prepare in RDPP format. • Ministry approve Revised Project cost up to 10% increase/decrease under certain conditions with the recommendation of DPEC ( objectives, mode of finance, source of fund, vehicle , manpower unchanged and inclusion of new Item) • If project cost increase / decrease upto 20%, approval authority Planning Minister • If project cost above 20% and total project cost within 25 crore, approval authority Planning Minister All other cases ECNEC approves

30. Second revision • If project cost up to 20%, approval authority Planning Minister • If project cost above 20% and total project cost within 25 crore, approval authority Planning Minister • All other cases ECNEC approve

31. Revision of TPP • If Revised Project cost increase/decrease up to 25%; Concern Minister may approve with the recommendation of DSPEC • If the project cost is increased more than 25%; approval is done by the Planning Minister. • Two times project revision is allowed • No post facto approval • If need 3rd revision- Prior permission from Planning Minister for processing

32. Second revision • Planning Minister approve it • within 45 days • Any revision with time extension needed the recommendation of ERD