 Bangladesh will receive a US$111.5 million credit from the World Bank to improve quality of local governance by providing community services through a transparent fiscal transfer system.
A signing ceremony was held this afternoon at a local hotel, attended by government officials, development partners, civil society, Union Parishad (UP) representatives and media. Mr. Ismail Zabihullah, Secretary, Economic Relations Division and Ms. Christine Wallich, World Bank Country Director signed on behalf of the Government and the World Bank, respectively.
Ms. Christine Wallich, World Bank Country
Director (right) and Mr. Ismail Zabihullah,
ERD Secretary (left) shake hands after signing.
Minister for LGRD (behind) is a witness to
the ceremony Mr. Abdul Mannan Bhuiyan, Minister for Local Government, Rural Development and Cooperative (LGRD&C) was present during the signing ceremony as the Chief Guest. Mr. SM Jahrul Islam, Secretary, Local Government Division, and Dr. Hossain Zillur Rahman also spoke. Mr. Abul Haris Rikabdar, General Secretary of Union Parishad Chairman Association also spoke at the event.
Commenting on this new initiative of the Government, Minister Bhuiyan said: “The Government is committed to strengthen local governance by increasing fiscal transfers to Union Parishads, so that they are able to respond to community development priorities”. He also added that ” the new project will enhance effective and accountable local governments that will bring increased economic and social benefits to citizens by ensuring quality services”. Christine Wallich, World Bank Country Director said: “The emergence of effective local governments can create space for broader political participation and bring with it a chance for greater accountability of the state to citizens.” (Click here to read the Country Director's complete speech)
In its first year, the Local Governance Support Project (LGSP) will focus on capacity building in Union Parishads, particularly regarding financial management and procurement. Following this capacity building period, UPs will receive additional fiscal transfers through the Government’s block grant system. Alongside the block grants, a safety net program for the rural poor will also be piloted through 15 Union Parishads. The project draws on the Government’s own framework, as well as pilots such as the Sirajganj Local Government Development Project (funded by UNDP/UNCDF) and Tangail Rural Development Project (funded by the Japanese Government). In these pilot programs, UPs were empowered through discretionary funds and capacity enhancement. Local governments – responding to community needs – were able to improve service delivery and build infrastructure at 30 percent lower costs than government agencies.
In addition to the World Bank credit, in a parallel but coordinated initiative, the United Nations Capital Development Fund (UNCDF), United Nations Development Program (UNDP) and the European Union (EU) will also contribute US$16 million for ‘second generation’ pilots. These pilots will focus on Millennium Development Goals (MDGs) by enhancing UPs role in service delivery, rural infrastructure development and linking local economy with markets for poverty reduction. |
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