Bangladesh - Independent Evaluation Group - World Bank

diagnostics have been carried out covering some of the same ground as the PEFA (such as
Government of Bangladesh and DfID 2007 and DfID 2009). The government recently agreed
to a full PEFA to provide baseline information for implementation of the SPEMP, and as an
input to donors considering potential budget support. However, cognizant of the
government’s lingering doubts about the methodology, the Bank team does not plan to use
PEFA as a key part of the PFM policy dialogue. These difficulties might have been avoided
or mitigated by better communicating the purpose, strengths, and weaknesses of the PEFA
methodology to key stakeholders.
4.6 Procurement support was highly effective. Initial procurement reforms supported by
the Bank included the creation of a Central Procurement Technical Unit of the Ministry of
Planning and public procurement regulations effective from 2003. These were enacted as
law in 2006, and expanded in the Public Procurement Rules (PPR) in 2008. The rules
establish public procurement processing and approval procedures, including the bid
evaluation committees, checklists, and a timetable for the procurement procedures. The time
required for awarding contracts has been reduced. Competition and publicity have increased,
and complainants are encouraged to address any shortcomings in the process.
4.7 A six-tiered training program has been successfully rolled out, and 3000 staff trained
(featured as a best practice case in IEG’s 2008 Training Evaluation). A procurement
performance monitoring system is being piloted in four government bodies comprising 60-70
percent of the value of all government procurements. Online connectivity has been
established with 300 procurement entities in these bodies, facilitating real-time monitoring.
E-procurement is being piloted and will be formally launched in 70 entities in February 2011.
A communications and awareness strategy is being implemented countrywide, using radio,
television, billboards, and community meetings, and supported by media training. The Bank
continues to focus support on implementation and monitoring of the procurement law in key
sector ministries, including the operation of a recently established Public-Private
Stakeholders Committee.
4.8 Since the current administration came to power in 2009, there has been some
backsliding on procurement reforms, including an end to the requirement for prior
qualifications for bidding on small contracts. The government had initially sought 40
changes, but these demands were significantly reduced following the consideration of
objections raised by the Central Procurement Technical Unit, development partners including
the Bank, and other stakeholders.
4.9 The effectiveness of support to revenue management is rated as substantial. The Bank
worked over the review period with DfID and the IMF to prepare a strategic development
plan for the National Bureau of Review, and a large Taxpayer Unit was created. There has
been progress in customs automation in Chittagong, Dhaka, Khulna, and one of the land
ports, but this work has mainly resulted from support from the relevant Chambers of
Commerce. BICF support to alternative dispute resolution seems promising, but it is too
early to judge its outcome. Extensive training has been carried out, though selection of
trainees could have been more rigorous. Automation of income tax has been done on a pilot
basis and in two VAT offices. Taxpayer identification numbers have been introduced, and
they are being linked with the voter identifications (IDs) that all Bangladeshi adult citizens
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