Bangladesh : Sustainable Economic Recovery Program (Subprogram 2)

Sovereign Project | 54307-002

The program supports Bangladesh's economic recovery from the coronavirus disease (COVID-19) pandemic amid a context of heightened regional and global economic uncertainty. Subprogram 2 deepens reforms initiated in subprogram 1, with continued focus in two areas: (i) public financial management (PFM); and (ii) access to finance for the underserved market segments, mainly cottage, micro, small, and medium-sized enterprises (CMSMEs). The PFM reforms will help create the fiscal space needed to boost investment in critical physical and social infrastructure. Broadening access to finance will help revitalize CMSMEs, which is crucial not only for preserving employment and livelihoods but also for strengthening production networks throughout the value chain. Subprogram 2 advances these agenda while also building the capacities of government agencies to operationalize the reforms and shaping longer-term reform strategies and plans.

Project Details

  • Project Officer
    Rahman, Aminur
    Sectors Group
    Request for information
  • Country/Economy
    Bangladesh
  • Sector
    • Public sector management
Project Name
Sustainable Economic Recovery Program (Subprogram 2)
Project Number
54307-002
Country / Economy
  • Bangladesh
Project Status
Closed
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan 4319-BAN: Sustainable Economic Recovery Program (Subprogram 2)
Source Amount
Ordinary capital resources US$ 400.00 million
Loan: Sustainable Economic Recovery Program (Subprogram 2)
Source Amount
Asian Infrastructure Investment Bank US$ 400.00 million
Loan: Sustainable Economic Recovery Program (Subprogram 2)
Source Amount
Japan International Cooperation Agency US$ 209.04 million
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector
  • Public sector management / Public expenditure and fiscal management

Gender
Effective gender mainstreaming
Description
The program supports Bangladesh's economic recovery from the coronavirus disease (COVID-19) pandemic amid a context of heightened regional and global economic uncertainty. Subprogram 2 deepens reforms initiated in subprogram 1, with continued focus in two areas: (i) public financial management (PFM); and (ii) access to finance for the underserved market segments, mainly cottage, micro, small, and medium-sized enterprises (CMSMEs). The PFM reforms will help create the fiscal space needed to boost investment in critical physical and social infrastructure. Broadening access to finance will help revitalize CMSMEs, which is crucial not only for preserving employment and livelihoods but also for strengthening production networks throughout the value chain. Subprogram 2 advances these agenda while also building the capacities of government agencies to operationalize the reforms and shaping longer-term reform strategies and plans.
Project Rationale and Linkage to Country/Regional Strategy
Poor public investment management (PIM) system degrades the government's ability to undertake social and physical infrastructure projects. The lack of an effective mechanism and inadequate capacity to properly identify, appraise, and approve projects have led to allocative inefficacies, weak project readiness, and low project quality at entry, which in turn resulted in start-up delays, and cost and time overruns in capital investment projects. This also affects project execution and procurement performance, eventually affecting the overall project quality. There is limited annual supervision of ongoing investment projects and absence of timely identification of potential time and cost overruns. These lead eventually to higher costs and completion delays.
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

Implementation Progress

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

Procurement
Procurement, advance contracting, and retroactive financing are not expected.

Contact

Responsible ADB Officer
Rahman, Aminur
Responsible ADB Department
Sectors Group
Responsible ADB Division
Public Sector Management and Governance Sector Office (SG-PSMG)
Executing Agencies
Finance Division, MOF (EA)

Timetable

Concept Clearance
-
Fact Finding
22 Mar 2023 to 27 Mar 2023
MRM
17 Apr 2023
Approval
13 Jun 2023
Last Review Mission
-
Last PDS Update
13 Jun 2023

Funding

Loan 4319-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Jun 2023 14 Jun 2023 16 Jun 2023 31 Dec 2023 - 22 Jun 2023
Financing Plan
  Total (Amount in US$ million)
Project Cost 400.00
ADB 400.00
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 20 Oct 2023 400.00 0.00 100%
Cumulative Disbursements 20 Oct 2023 400.00 0.00 100%

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.

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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

None currently available.


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.

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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.