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Development Partners Reach Understanding with Government on Four Key Actions to Improve Portfolio Performance in Bangladesh

DHAKA, BANGLADESH (18 March 2004) - A country review mission conducted by ADB and two other major development partners in Bangladesh, which wrapped up today, has reached an understanding with the Government on four key actions to improve portfolio performance in the country.

The review is being carried out by ADB, the World Bank (WB), and Japan Bank for International Cooperation (JBIC) to address common constraints adversely affecting project implementation.

The portfolio review revealed that many externally financed projects suffer from delays in implementation. In most cases, these delays occur in the early stages of project implementation and often as a consequence of late preparation and approval of the Project Concept Paper (PCP) and Project Proforma (PP), late recruitment of project consultants, and protracted delays in procurement.

As a result, partner funds are poorly utilized and project benefits delayed. In some cases, financial management and reporting including auditing do not follow the requirements laid down by development partners. In addition, monitoring and evaluation of results and outcomes are often weak or absent.

The four key actions to improve the portfolio performance are as follows:

• A new PCP/PP approval process and documentation would be introduced.
• The recently adopted Procurement Regulations would be expeditiously implemented including issuance of procurement procedures, financial procedures and standard bidding documents.
• There is a great need to strengthen financial management and reporting including auditing in line with partners' new guidelines.
• Monitoring and evaluation of results and outcomes would be emphasized and strengthened with support of the Government's Poverty Reduction Strategy Paper (PRSP).

ADB is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Established in 1966, it is owned by 63 members - 45 from the region. In 2003, it approved loans and technical assistance worth US$6.1 billion and US$177 million, respectively.