Bangladesh - Independent Evaluation Group - World Bank

3.24 In October 2009, the Bank had to decide how to proceed. The decision was taken that
RHD would have to show improvement in at least two projects before the Bank would reengage.
Currently the RHD is piloting two smaller projects, and the Bank is providing some
technical assistance and monitoring progress of the projects. A Public Expenditure Tracking
Survey (PETS) carried out by Ernst and Young India is currently underway and preliminary
results are expected in March 2011.
3.25 Implementation with the LGED has been more satisfactory (World Bank 2007d). This
project is scheduled to close in FY11. An ORA carried out with funding from a DfID trust
fund found that there is no real oversight of roads (World Bank 2007d). At present there is no
internal control mechanism in LGED. It is not clear why technical audit and oversight were
not picked up in the Bank’s project but were left to the government. It was noted in
discussions with Bank staff that a failure to incorporate a technical audit is one flaw of the
RTIP. The other two project components and work with LGED were reported to be operating
in a satisfactory manner.
3.26 The Caretaker Government created a window of opportunity for making some
progress on procurement in roads with the RTIP. Under the Caretaker Government, 60 road
contracts were cancelled for not performing, and more transparency was introduced. This has
continued under the current government. Drawing on the GAC strategy and the option of
disengagement, a decision was taken in this particular project to disengage on component one
of the project. Four years of initial work on the component were lost after disengagement.
3.27 The RHD ORA coincided with four concurrent INT investigations. The INT
investigations created a particularly tense environment in Bank-client relations.
Harmonization and alignment issues arose after the Bank’s decision to disengage. The ADB
had also been working with RHD and picked up some of the work that the Bank left in
disengaging. There have been negative reputational effects in the sector following the Bank’s
disengagement.
3.28 Relevance. The Bank’s engagement in the roads sector was moderately relevant. The
objectives of the RTIP are relevant. However, the fit to country context in the RHD
component was questionable in balancing service delivery and management of fiduciary
risks. The high fiduciary risks involved with the project were made apparent in the ORA of
RHD and in the outcomes of the INT investigations. The decision to withdraw has sent a
strong signal that fundamental reforms are needed in RHD, while the Bank continues to
provide some support through a PETS, and a piloting of e-procurement through the Public
Procurement Reform Project. However, it is valid to ask whether the Bank could have taken
an alternative path to focus on more fundamental institutional reforms in this crucial sector
rather than the carrot-and-stick approach presented with the analytic and advisory activities
and the requirement for RHD to show progress before continuing engagement.
3.29 Education. The Bank supports GAC issues in five education projects, two of which
address primary education, the Primary Education Development Project (PDEP) II (P074966,
FY04, $1,815 million) and the Reaching Out of School Children (ROSC) Project (FY04).
PDEP II is a large multi-donor coordinated sector-wide approach ( SWAp) working to help
18