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ADB, Bangladesh Sign Agreement to Improve Governance

Dhaka, Bangladesh, 01 November 2007

The Asian Development Bank (ADB) and the Government of Bangladesh today signed a loan agreement for $150 million from ADB's concessional Asian Development Fund resources to better equip Bangladesh in its fight against corruption and to foster economic growth by strengthening its system of governance.

ERD Secretary Md Aminul Islam Bhuiyan signed for the Government while Hua Du, Country Director of ADB's Bangladesh Resident Mission, signed on behalf of ADB at a simple ceremony at ERD, Sher-e-Bangla Nagar, Dhaka today. Among others, Einar Hebogaard Jensen, Ambassador of Denmark to Bangladesh was also present at the loan signing ceremony.

In addition to the loan for the Good Governance Program, ADB is also extending a $1.5 million grant for technical assistance (TA) that will enhance the capability of concerned agencies to implement policy reforms and effectively manage the Good Governance Program. Denmark's Human Rights and Good Governance Program is providing a $1 million grant for the TA.

The Good Governance Program seeks to support the Government to strengthen the ongoing consensus building on good governance, integrity and anticorruption reforms; support judiciary separation and reforms with a focus on the performance, transparency and accountability of the judiciary, particularly on its role in the anticorruption agenda; strengthen the role and reach of the government's Anticorruption Commission; and bring good governance and anticorruption initiatives into the mainstream within selected sector level agencies to enhance their effectiveness.

The result will be a set of long-term policy reforms in good governance, particularly those related to instituting good practices in combating corruption, specifically at the sector agency level. The loan will also help the government formulate and implement a national integrity strategy. At the moment, there is no program in the country targeting corruption through a broad and comprehensive approach. The Good Governance Program fills that void.

"Reflecting the government's strong stand on developing major reforms to address corruption, the Good Governance Program supports the government's priorities on good governance and contributes directly to desired outcomes in this sector," said Hua Du.

"According to surveys conducted by various organizations, corruption adversely impacts not only the economy at the macro level but also individuals and households at the micro level, particularly those in the low-income brackets.

The program will help the Government to implement and institutionalize important policies, systems and procedures, and to sustain the good governance reforms", Hua Du said.

"Denmark is pleased to support, jointly with ADB and others, strengthening of the Anti-corruption Commission as well as a participatory national process to formulate a National Integrity Strategy under this initiative," said Einar Hebogaard Jensen, Ambassador of Denmark to Bangladesh.

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