Regions and Countries

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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 2005-2006: Bangladesh

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III. Portfolio Management Issues

A. Portfolio Performance

23. As of 31 December 2003, ADB's total commitment to Bangladesh comprised 152 public sector loans for $7.21 billion and 285 TAs for $152.17 million. There were 30 ongoing public sector loans (for 25 projects) valued at $2.13 billion. At that date, 6.7% of the portfolio was considered “at risk” compared with the ADB-wide average of 14.5%. This is an improvement over the portfolio performance of 2002 when 17.1% of projects were considered at risk. However, contract award and loan disbursement ratios (11.7% and 15.8%, respectively) in 2003 were below the ADB-wide averages (17.3% and 20.2%) largely due to project start-up delays (Appendix 1, Table A1.7). Actual contract awards and disbursements in 2003 were $133.2 million and $201.7 million, respectively, with achievements of 64% and 99%, respectively, of the annual projections.

B. Performance Monitoring and Evaluation

24. The Government has taken several key steps to address project start-up delays. Some progress has already been made in streamlining project documentation. Further progress is being made in enhancing transparency and efficiency in procurement following implementation of the 2003 Public Procurement Regulations. The Government has issued several key documents including procurement procedures and standard bidding documents.

25. In FY2003, to support the Government's general efforts to improve sector governance and to combat project-related corruption, ADB, in coordination with the foreign aided projects audit directorate, conducted eight workshops for 251 project staff from 23 ADB-assisted project offices on project accounting, financial governance and management, internal control, and audit. Quality and timeliness of audit reports of project accounts have improved substantially; the number of audit observations was reduced as many were clarified at field level. Assisted by ADB, the Government is also working to address resettlement issues, which adversely affect project progress in the transport sector. Recommendations made in six project completion reports (PCRs), four project performance audit reports, and one Country Assistance Program Evaluation completed by ADB during 2002-2003 are being addressed through follow-up with concerned government agencies.

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