Bangladesh: Improvement of Capital Market and Insurance Governance TA Loan

Sovereign Project | 36197-013 Status: Closed


The Project will improve good governance practices in the capital market and the insurance sector.

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Project Name Improvement of Capital Market and Insurance Governance TA Loan
Project Number 36197-013
Country Bangladesh
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2232-BAN: Improvement of Capital Market and Insurance Governance TA Loan
Asian Development Fund US$ 3.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Finance - Insurance and contractual savings

Gender Equity and Mainstreaming Some gender elements
Description The Project will improve good governance practices in the capital market and the insurance sector.
Project Rationale and Linkage to Country/Regional Strategy To reduce poverty and accelerate the pace of social development, the Government's national poverty reduction strategy (NPRS) aims to substantially increase private investment, savings, and economic growth. Financial sector development generating more financial resources and improving the efficiency of resource allocation by restoring investor confidence is critical to this goal. The Government also recognizes that, to meet the NPRS targets, it needs to rely on the financial sector, and thereby develop an appropriate market and environment. Improving the practice of good governance in all aspects of the financial system is essential to its development.
Impact Sound and efficient capital market and insurance sector to help accelerate economic growth and poverty reduction
Project Outcome
Description of Outcome " Improvement of governance, efficiency and investor confidence in capital market and insurance sector
Progress Toward Outcome All the components: Bangladesh Securities and Exchange Commission (BSEC), Investment Corporation of Bangladesh (ICB), and Insurance Governance Regulatory Authority (IDRA) completed by lrevised oan closing date of 31 December 2012. Loan account will be closed by end April 2013.
Implementation Progress
Description of Project Outputs

Part 1. Enhancement of Governance and Capacity of Capital Market

Component 1. SEC

(i) Strengthening the Market Surveillance Systems

" Surveillance system installed at SEC

" Strengthened surveillance capacity

(ii) Further Strengthening the Capacity of SEC

" Improved SEC capacity and governance capabilities

" Training unit established

Component 2. Stock Exchanges

(i) Enhancing the Capacity of Management and Governance of the Stock Exchanges

" Enhanced stock exchange staff capacity

" Improved governance and management of stock exchanges

(ii) Increasing Demand for and Supply of Securities

" Recommendations made to deepen the capital market

Component 3. Market Intermediaries Enhancing Capacity and Operating Standards

" Licensing regime strengthened

" National capital market institute established

Component 4. ICB Enhancement of Governance and Capacity

" Recommendation of international best practices in accounting, audit, and management for ICB and its


Part 2. Enhancement of Governance and Capacity of the Insurance Sector

" Capacity building and training programs for OCCI

" Revised rules and regulations based on new insurance acts

" Recommendations made to improve the governance of stateowned insurance corporations

Status of Implementation Progress (Outputs, Activities, and Issues)

Consultants fielded and surveillance system installed.

Necessary training completed as planned and approved.

BICM established.

Two consultant reports submitted. Training manual and courses finalized. Planned local training completed.

Training manual and courses finalized.

SEC act amended incorporating training unit in the organogram.

Overseas training completed.

Training programs (domestic/overseas) completed.

A separate support was provided from staff consultancy budget to study the demutualization of stock exchanges.

Consultant submitted study report.

Revised rules have been submitted.


BICM established.


The management of ICB and board decided to implement the recommendations of the consultants.

The management of ICB and board decided to implement the recommendations of the consultants.

Partially completed due to time constrain of the project period after the appointment of Chairman and members of IDRA.

FR submitted and approved.

MIS was proposed in FR and procurement of the equipment completed.


Geographical Location Bangladesh
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

Consulting services will be engaged in 3 packages (two packages for consulting firms and one package for an individual consultant). A total of 53 person-months of international and 56 person-months of domestic consulting inputs will be financed. For the packages for consulting firms, the quality and cost-based selection method will be used. A full technical proposal will be used for part 1, while a simplified technical proposal will be used for part 2. A domestic financial and administrative consultant will be selected by the Executing Agency to help the project coordinator of the Project Monitoring Unit to implement the project. The breakdown of consulting inputs are as follows:

A. Part 1: Enhancement of Governance and Capacity of the Capital Market - Consulting Firm by QCBS

1. International Market Surveillance Systems Consultant (5 person-months)

2. Domestic Consultant (1 person-month)

3. International SEC/Exchange Skills Development and Training Consultant (6 person-months)

4. Domestic Training Consultant (6 person-months)

5. International Exchange Governance Expert (1.5 person-months)

6. International Capital Market Specialist (3.5 person-months)

7. Domestic Capital Market Specialist (3 person-months)

8. International Regulatory Consultant (3 person-months)

9. Domestic Regulatory Consultant (2 person-months)

10. International Securities Training Consultant (3 person-months)

11. Domestic Securities Training Consultant (3 person-months)

12. International Training Development Consultant (3 person-months)

13. Domestic Training Development Consultant (3 person-months)

14. International Accounting and Audit Specialist (4 person-months)

15. International Governance Expert (2 person-months)

B. Part 2: Enhancement of Governance and Capacity of the Insurance Sector - Consulting Firm by QCBS

16. International Insurance Capacity Building Specialist (6 person-months)

17. International Insurance Regulatory Specialist (5 person-months)

18. International Life Insurance Specialist (4 person-months); International General Insurance Specialist (4 person-months)

19. International Actuary (3 person-months)

20. Domestic Insurance Capacity Building Specialist (6 person-months)

21. Domestic Regulatory Specialist (4 person-months)

22. Domestic Insurance Specialist (4 person-months)

C. TA Loan Administration - Individual Consultant

23. Domestic Financial and Administrative Consultant (24 person-months)


Procurement of goods and services will be in accordance with ADB's Guidelines for Procurement. Each supply contract for equipment, computers, or materials estimated to cost the equivalent of $500,000 or less (other than minor items) will be awarded on the basis of international shopping, and supply contracts valued at $100,000 equivalent or less may be procured based on local procedures under the government's Public Procurement Regulations, 2003 and which are acceptable to ADB.

Surveillance system equipment will be purchased through international shopping.

Responsible ADB Officer Bidyut Kumar Saha
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Bank and Financial Institutions Division-MOF
Arijit Chowdhury
Bangladesh Secretariat
Dhaka-1000 Bangladesh
Concept Clearance 06 Aug 2003
Fact Finding 11 May 2005 to 24 May 2005
MRM 20 Jul 2005
Approval 09 Mar 2006
Last Review Mission -
PDS Creation Date 27 Sep 2006
Last PDS Update 21 Mar 2013

Loan 2232-BAN

Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Mar 2006 07 Feb 2007 23 May 2007 30 Jun 2008 31 Dec 2012 19 May 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4.00 Cumulative Contract Awards
ADB 3.00 09 Mar 2006 2.28 0.00 99%
Counterpart 1.00 Cumulative Disbursements
Cofinancing 0.00 09 Mar 2006 2.30 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Safeguard Documents

See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Bangladesh: Improvement of Capital Market and Insurance Governance Project Validations of Project Completion Reports Sep 2015

Related Publications

None currently available.

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