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

Related Projects

Project Name Sustainable Economic Recovery Program (Subprogram 2)
Project Number 54307-002
Country / Economy Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4319-BAN: Sustainable Economic Recovery Program (Subprogram 2)
Ordinary capital resources US$ 400.00 million
Loan: Sustainable Economic Recovery Program (Subprogram 2)
Asian Infrastructure Investment Bank US$ 400.00 million
Loan: Sustainable Economic Recovery Program (Subprogram 2)
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.
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

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 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 400.00 Cumulative Contract Awards
ADB 400.00 15 Aug 2023 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 15 Aug 2023 400.00 0.00 100%

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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.