Countries and Regions

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p. 3 of 4 BACK | NEXT I. Current Development Trends and Issues II. Implementation of the Country Strategy and Program III. Portfolio Management Issues IV. Country Performance and Assistance Levels

Country Strategy and Program Update 2004-2006: Bangladesh

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III. Portfolio Management Issues

A. Portfolio Performance

27. As of 31 December 2002, ADB's total public sector lending to Bangladesh comprised $6.67 billion for 147 loans and $149.88 million for 280 TAs. As of the same date, there were 35 ongoing public sector loans (for 31 projects) valued at $2.05 billion. In terms of implementation progress, 2 loans (6%) were rated "highly satisfactory", 29 loans (83%) were "satisfactory", and 4 loans (11%) were "partly satisfactory" due to long delays in project implementation. The overall portfolio ratings were broadly in line with South Asia and ADB-wide averages. As of 31 December 2002, 17.1% of the portfolio was considered "at risk", which is slightly higher than ADB-wide average (16%). According to the 2003 country assistance program evaluation, Bangladesh had the lowest percentage of unsuccessful projects among the major countries in the subregion. However, contract award and loan disbursement ratios (18.1% and 15.4%, respectively) in 2002 were below the ADB-wide average (22.6% and 22.2%). Actual contract awards and disbursements were $202.7 million and $171.1 million in 2002, with achievements of 95% and 102%, respectively, compared with the annual projections.

B. Performance Monitoring and Evaluation

28. Besides the annual country portfolio review, several initiatives have been taken jointly with the Government to improve portfolio management: (i) speeding up settlements of pending audit observations on ADB-assisted projects in the past 6 years and improving executing agency's project accounting capability; (ii) streamlining procurement and loan disbursement procedures under local competitive bidding (LCB); (iii) follow-up on timely submission of project accounts and financial statements; and (iv) accelerating processes for effectiveness of approved loans. There have been substantial improvements in the above areas, e.g., streamlined procedures for LCB have been adopted by the executing agencies. In connection with the multilateral development banks harmonization initiatives, ADB is actively participating in the joint Government-donor working groups on procurement, financial reporting and auditing, and training that have been established by the Government to improve the efficiency, accountability, and transparency of development assistance. Project completion reports prepared for four delegated projects, two in education, one in transport, and one in rural infrastructure developments, were given a satisfactory rating.

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