WASHINGTON, November 29, 2011 — The World Bank today approved US$290 million concessional credit to Bangladesh for the Second Local Governance Support Project to strengthen the lowest tier of rural local governments – the Union Parishads. The project builds on the success of LGSP I to further strengthen local level accountability, and will support development initiatives prioritized by local communities. With its nation-wide coverage to all Union Parishads, LGSP II is expected to benefit 135 million people across the country. The Second Local Governance Support Project (LGSP II) will continue to support Government of Bangladesh’s decentralization efforts through provision of direct block grants to Union Parishads for financing local development projects. The project supports rigorous audits and open budget presentations to create greater transparency and good governance. A key new feature under the LGSP II is the introduction of performance-based grants in addition to expanding the amounts and coverage under the current block grants supported by initial project. Recognizing the major contribution of women, in local level development, it earmarks about 30 percent of the grants for local schemes prioritized by women. “The World Bank is committed to support Government of Bangladesh’s decentralization reforms and remains a longstanding partner in the efforts to strengthen local governments which play a vital role in enhancing domestic accountability and participatory development,” said Ellen Goldstein, Country Director, World Bank Bangladesh. “The local governance support project is expected to directly benefit all 4,504 Union Parishads representing over 90% of the country’s population.” The Block Grants under LGSP II will support all Union Parishads once they meet the minimum transparency and governance conditions including completion of local audits, conducting participatory planning and open budgeting, and submission of financial and progress reports. The new Performance Grant window will reward Union Parishads who demonstrate improvements across a range of indicators including in local revenue mobilization. The project will strengthen coordination among different sub-national tiers (Union, Upazila and Zila) as well as support institutional development across the entire local government system. The Union Parishads will also be held more accountable to local communities through strengthened local Wards and Committees. “More than 35,000 community schemes generating employment for poor people have already been implemented by the first LGSP initiative. These include construction or rehabilitation of roads, culverts, drainage and embankment systems, water and sanitation facilities, school and clinic repairs,” said Balakrishna Menon Parameswaran, Task Team Leader, LGSP II, World Bank. “LGSP II will further finance thousands of small infrastructure and service delivery community schemes responding to local needs.” The credit from the International Development Association (IDA), the World Bank’s concessionary arm, has 40 years to maturity with a 10-year grace period; it carries a service charge of 0.75 percent. Contacts In Washington: Alison Reeves, (202) 473-8955, areeves@worldbank.org In Dhaka: Mehrin Ahmed Mahbub, (880-2) 8159001, mmahbub@worldbank.org For more information on the World Bank in Bangladesh, please visit: http://www.worldbank.org/bd Visit us on Facebook: http://www.facebook.com/worldbankbangladesh Visit us on Facebook: http://www.facebook.com/worldbank Be updated via Twitter: http://www.twitter.com/worldbank For our YouTube channel: http://www.youtube.com/worldbank |
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