The Project will improve good governance practices in the capital market and the insurance sector.
| Project Name | Improvement of Capital Market and Insurance Governance TA Loan | ||||
| Project Number | 36197-013 | ||||
| Country | Bangladesh |
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| Project Status | Closed | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development |
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| Sector / Subsector | Finance / Insurance and contractual savings |
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| 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 subsidiaries 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. Completed. BICM established. Completed. 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. completed. |
| Geographical Location | Nation-wide |
| 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 | 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 $100,000 equivalent or less may be procured based on local procedures under the government's Public Procurement Regulations, 2003 and which are acceptable to ADB. Surveillance system equipment will be purchased through international shopping. |
| Responsible ADB Officer | Saha, Bidyut Kumar |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Bangladesh Resident Mission |
| Executing Agencies |
Bank and Financial Institutions Division-MOF Arijit Chowdhury [email protected] Bangladesh Secretariat Dhaka-1000 Bangladesh |
| Timetable | |
|---|---|
| Concept Clearance | 06 Aug 2003 |
| Fact Finding | 11 May 2005 to 24 May 2005 |
| MRM | 20 Jul 2005 |
| Approval | 09 Mar 2006 |
| Last Review Mission | - |
| PDS Creation Date | 27 Sep 2006 |
| Last PDS Update | 21 Mar 2013 |
Loan 2232-BAN
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 09 Mar 2006 | 07 Feb 2007 | 23 May 2007 | 30 Jun 2008 | 31 Dec 2012 | 19 May 2013 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ 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 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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| Title | Document Type | Document Date |
|---|---|---|
| Improvement of Capital Market and Insurance Governance TA Loan: Project Completion Report | Project/Program Completion Reports | Sep 2014 |
| Technical Assistance Loan Improvement of Capital Market and Insurance Governance Project | Procurement Plans | May 2011 |
| Technical Assistance Loan Improvement of Capital Market and Insurance Governance Project | Project/Program Administration Manual | Mar 2008 |
| Technical Assistance Loan Agreement for Improvement of Capital Market and Insurance Governance Project between People's Republic of Bangladesh and Asian Development Bank dated 7 February 2007 | Loan Agreement (Ordinary Resources) | Feb 2007 |
| Improvement of Capital Market and Insurance Governance Project | Reports and Recommendations of the President | Feb 2006 |
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.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
Tenders
No tenders for this project were found.
Contracts Awarded
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Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Technical Assistance Loan Improvement of Capital Market and Insurance Governance Project | Procurement Plans | May 2011 |