Diagnostic Report On BPR & TNA of LMs-Update 19 May 2011

Updated and Revised Report
(19 May 2011)
Summary Results of Diagnostic Survey on Business Process Review

And Training Needs Assessment (TNA) of Line Ministry (LM)/Division/Agency Planning Wings
For Strategic Planning and Integrating Planning with MTBF
Subcomponent C3.41
Strengthening Public Expenditure Management Programme (SPEMP)
Deepening Medium Term Budgeting Framework (MTBF) and
Strengthening Financial Accountability Project2
Finance Division, Ministry of Finance, Government of Bangladesh
Subcomponent C3.4 Team comprised Technical Expert Tarun Das and National Consultants S.M. Shahjahan, M.A. Muktadir Mazumder and
Nargis Islam. They would like to express their deepest gratitude to Brendon Goudry, the then Adviser (C3); Sadiq Ahmed, Adviser (C4) and
Ahsan Mansur, Policy Adviser for strategic guidance and supervision, and Navin Bulusu, Acting Adviser and Technical Expert (C3) for valuable
discussions and directions at every stage of the survey.
1
They would also like to express their sincere thanks to the Chiefs/ Deputy Chiefs and other officers of the Planning Wings/Cells in the
Ministries of Agriculture, Education, Primary and Mass Education, Communications, and Power, Energy and Mineral Resources, all
Divisions and selected Agencies under them for discussions on wide ranging issues and providing necessary data, information and reports.
However, views expressed here are the personal views of the consultants and do not necessarily imply views of the LMs/Divisions/
Agencies or the organizations they are working with. For any clarifications of concepts and issues, please contact the following EMAILs:
das.tarun@hotmail.com/ smshah_agri@yahoo.com/ muktadirmm@yahoo.com/ nargis_gn@yahoo.co.uk
PDP Australia PTY Ltd., DMTBF Project Office, BTMC Building (7th Level), 7-9 Kawran Bazar, Dhaka 1215, Bangladesh.
Updated and Revised Report
(19 May 2011)

And Training Needs Assessment (TNA) of LM/Division/Agency Planning Wings
Contents
1.
2.
3.
4.
5.
6.
7.
Abbreviations
Introduction- Scope and Objectives
Methodology and Sample Design
Role of Planning Wings for Planning, Budgeting and MTBF
3.1 Medium Term Budgeting Framework
3.2 Development and Non-development Budget
3.3 Organizational Set Ups for Planning and Budgeting
Business Process Review (BPR)
4.1 Medium Term Strategic Business Plan (SBP)
4.2 Long Term Perspective Plan
4.3 Preparation of the Sectoral Five Year plan
4.4 Preparation of the Annual Development Programme (ADP)
4.5 Preparation of Development Budget
4.6 Project conceptualization and preparation
4.7 Project appraisal and approval
4.8 Monitoring and Evaluation of Project/ Programme Implementation
4.9 Post Project/Programme Monitoring and Evaluation (outcome and impact analysis)
Training Needs Assessment (TNA)
Major Observations and Recommendations
Tentative Future Work Plan Matrix for C3.4 and C4
Selected References
Official Documents and Reports consulted
Organograms (Organizational Charts):

1.
2.
3.
4.
5.
6.
7.
8.
9.
Ministry of Agriculture
Roads and Railways Division, Ministry of Communications
Ministry of Education
Ministry of Primary and Mass Education
Ministry of Communications
Energy and Natural Resources Division; Ministry of Power, Energy and Natural Resources
Power Division; Ministry of Power, Energy and Natural Resources
Bangladesh Railways, Ministry of Communications
Bangladesh Agricultural Development Corporation (BADC), Ministry of Agriculture
Annexes:
Annex-1: Abridged Questionnaire for Diagnostic Study
Annex-2: Questionnaire for Training Needs Assessment
Annex-3: Minutes of the Meetings in the LMs/Divisions/Agencies
Annex-4: LMs/Divisions/Agencies Visited and Officials Met
ABBREVIATIONS
ADB
ADP
ADPRC
BANBEIS
BCC
BMB
BMC
BMRC
BPR
BR
BWG
CAO
CGA
CAMPE
CPTU
DPEC
DMFAS
DPHE
DPP
DPR
DSHE
EAD
EC/ NEC
EFA
EMIS
ERD
FABA
FD
FM
Asian Development Bank

Annual Development Programme
ADP Review Committee
Bangladesh Bureau of Educational Information and Statistics
Budget Circular
Budget Management Branch
Budget Management Committee
Budget Monitoring and Resource Committee
Business Process Review
Bangladesh Railways
Budget Working Group
Chief Accounts Officer
Controller General of Accounts
Campaign for Popular Education
Central Procurement Technical Unit
Departmental Project Evaluation Committee
Debt Management and Financial Analysis System
Department of Public Health Engineering
Development Project Proforma/ Proposal
Detailed Project Report
Directorate of Secondary and Higher Education
External Affairs Division
Executive Committee of the National Economic Council
Education for All
Education Management Information System
Economic Relations Division
Foreign Aid Budget Accounts
Finance Division
Finance Minister
FSMU
GAP
GED
GoB
HR
iBAS
ICT
IMED
IMF
IRD
KPI
LMs
M&E
MBF
MEW
MIS
MOE
MOF
MOPME
MOU
MTBF
NEC
NEP
NGO
NSAPR
NSD
P&T
PC
PD
PEC
PFF
Financial Systems Management Unit

Gap Analysis Programme
General Economics Division
Government of Bangladesh
Human Resources
Integrated Budget and Accounting System
Information and Communication Technology
Implementation, Monitoring & Evaluation Division
International Monetary Fund
Internal Resources Division
Key Performance Indicators
Line Ministries
Monitoring & Evaluation
Ministry Budget Frameworks
Macroeconomic Wing
Management Information System
Ministry of Finance
Ministry of Primary and Mass Education
Memorandum of Understanding
Medium Term Budget Framework
National Economic Council
National Education Policy
Nongovernment Organization
National Strategy for Accelerated Poverty reduction
National Savings Directorate
Posts & Telegraphs
Planning Commission
Programming Division
Programme Evaluation Committee
Public Finance Foundation
PM
PW/C
PWD
RADP
RTPP
RHD
SAE
SBP
SD
SMP
SP
SPEMP
TA
TC
TDMW
TNA
TOR
TPP
TSA
TYRIP
Prime Minister
Planning Wing/ Cell
Public Works Department
Revised Annual Development Programme
Revised Technical Assistance Project Proforma
Roads and Highways Department
Self Accounting Entities
Strategic Business Plan
Sector Division
Social Management Plan
Strategic Plan
Strengthening Public Expenditure Management Project
Technical Assistance
Technical Committee
Treasury and Debt Management Wing
Training Needs Analysis
Terms of Reference
Technical Assistance Project Proforma/ Proposal
Treasury Single Account
Three Year Rolling Investment Plan

And Training Needs Assessment (TNA) of LM/Division/Agency Planning Wings
1. Introduction- Scope and Objectives
Would you tell me please, which way I ought to go from here? asked Alice.
That depends a great deal on where you want to get to, said the cat.
I dont care much where, said Alice.
Then it does not matter which way you go. said the cat.
Extract from Alice in Wonderland, Lewis B. Carroll
Eventually Alice realized that it matters a great deal to know where to go and how to get there. The same lesson is true for Budget
Formulation for any economy. Preparation of an Annual Budget for a budgetary agency without any Medium Term Strategic Planning
(MTSP) and Medium Term Budgeting Framework (MTBF) leads to the same problems as faced by Alice in Wonderland. For effective
budgeting, it is important to know the vision, mission and basic goals of an agency; the scope of its strategic activities in terms of
exact inputs, outputs and outcomes in the medium term, and how to achieve these activities with least resources. Medium term
planning and medium term budgeting help to have a clear vision by the planners and facilitate preparation of sound strategic business
and financial plans by a budgetary agency.
1. Scope and Objectives of the Study

According to the revised terms of reference, the basic responsibilities of the Technical Expert and the
National Consultants dealing with strategic planning and integrating planning with budgeting in the
MTBF include the following:
(1)
Provide technical assistance and assist Technical Adviser (C3) in the implementation
of, and reporting on, all activities under sub-component 3.4, including:
Undertake a detailed Diagnostic review of Planning Wing key processes and their capacity
development needs (based on a sample approach and methodology developed by C3 Advisor).
Improving capacities for better sector-specific Programme design, project preparation, and monitoring
and evaluation (M&E) by line ministries (LMs).
Strengthening Planning Wing/Cells in LMs to support resource allocation decision making process in
achieving policy objectives.
Strengthening Planning Wing/Cells capacity in Medium Term Strategic Planning and determination of
intra-sectoral policy priorities.
Improving procedures for determination and management of sectoral capital investments within LMs.
Improve linkages between sectoral planning and sectoral budgeting within the context of the MTBF
process.
Building capacities for evaluating and monitoring the implementation of capital investment
management procedures in the ministry (as opposed to preparing and monitoring the ADP), as well as
project/Programme evaluation with respect to how they contribute to the achievement of sectoral
policy priorities and outcomes.
Implementing the functional reform agenda associated with Component 4 as it affects the Planning
Wing/Cells personnel operating within line ministries/divisions.
(2) In terms of overall Technical Adviser (TA) support to C3:
In collaboration with the Technical Experts (TEs) assigned to MTBF reform, assist in developing Medium Term Strategic
Business Plans (MTSBPs) for selected LMs (indicating their vision, mission, goals, strategic objectives and policies,
Programmes / projects to achieve these goals and objectives, outcomes, outputs and physical and financial inputs required) to
assist them achieve development objectives under the Millennium Development Goals (MDGs)/ National Strategy for
Accelerated Poverty Reduction (NSAPR-PRSP II), Sixth Five Year Plan, Perspective Plan, Vision 2021 and other documents.
(3) In terms of overall Technical Adviser (TA) support to C4:
Assist in formulating sector policy frameworks that support prioritisation within the sectors to achieve the countrys medium
and long term economic development objectives as mandated by the national plan, especially for accelerated economic growth
and poverty reduction.
Monitor and evaluate outputs and outcomes of sectoral projects and Programmes as stipulated in the MBF;
Review / improve institutional set-up for managing sectoral investments / projects / Programmes as mandated by the
BMC/BMW/BMB Terms of Reference;
Review and improve institutional systems and responsibilities for monitoring & evaluation.
Other activities supporting the TOR will evolve as the initial works progress over time.
(4) Works during Q2 of the Project (i.e. Jan-March 2011)

It was decided by the Components C3.4 and C4 Advisers in consultation with the Policy Adviser that the consultants will conduct a
diagnostic study for the business process review and the training needs assessment for the Planning Wing/Cells of the selected LMs/
Divisions/ Agencies during the Q2 of the project and prepare a report on the above mentioned subjects, mainly relating to C3.4, by the
end of March 2011. On the basis of the main observations and recommendations of the study, a detailed work plan will be prepared for
the subsequent quarters of the project period. Other activities supporting the TOR as regards Component-4 support to the Planning
Commission and IMED in relation to strengthening planning, project monitoring and evaluation techniques, methodologies, systems
and institutional set ups will evolve as the initial works progress over time.
(5) Document History
A Draft Report was submitted on the 30th March 2011. Main findings of the report was presented in C3 Group meeting at the FD on
3rd May 2011 and in the Team Meeting, also attended by the World Bank officials, and chaired by the Project Director on the 5th May
2011 at the KB Project Office. Comments were also received from Paul Nankivel, Project Manager. On the basis of these comments
the Final Report has been prepared with active participation of all consultants.
10
2. Methodology and Sample Design for the Diagnostic Study

A detailed background note and questionnaire3 has been prepared by the Technical Adviser for the Diagnostic study. A Questionnaire
for the Training Needs Assessment (TNA) Survey has also been prepared in consultation with the Technical Adviser for Training.
Annex-1 presents an abridged version of the detailed Questionnaire and Annex-2 presents the Questionnaire for the TNA.
The Questionnaire puts leading questions to the Chief Planning Officers for a Diagnostic review of the Planning Wing/ Cell key
processes and their capacity development needs for planning, establishing linkages between sectoral planning and sectoral budgeting
within the context of the MTBF process, and for all aspects relating to project conceptualization, feasibility study, preparation of
detailed project report, project appraisal, approval, implementation, monitoring and evaluation. The Questionnaire basically focuses on
the following two aspects for pilot LMs/Divisions/Agencies;
(1) Business Process Analysis for activities of the Planning Cell/Wing, their interlinkages with Annual budgeting, MTBF, Medium
Term Strategic Business Plan, Master Plan, Accelerated Poverty Reduction Programme, attainment of MDGs, the Sixth Five Year
Plan, the Perspective Plan; and the constraints, if any, for better sector-specific Programme design, project preparation, ex-ante project
appraisal, monitoring and evaluation of the project implementation, and ex-post project performance evaluation.
(2) Assessment of immediate and Medium Term Training Needs for the officers of the PW/Cs in LMs/Divisions/Agencies.
Purposive Sample and Focused Group Survey
For the Diagnostic Study, we adopted the technique of a Rapid Interview and Structured Survey for the Business Process review and a
Focused Group Survey for the TNA. The following LMs/Divisions/Agencies were selected on the basis of a Purposive Sample Design
because of their major shares in development budget and strategic importance for poverty alleviation, employment generation,
accelerated growth and achievement of millennium development goals:
1. Ministry of Agriculture,
3
Background Note and Questionnaire for Diagnostic Assessment of Line Ministries Capacity for Planning, Project Preparation, Appraisal,
Monitoring and Evaluation and Integration of Planning with Budgeting and MTBF, pp.1-59, February 2011.
11
-- Department of Agricultural Extension (DAE),

-- Bangladesh Agricultural Development Corporation (BADC)
2. Ministry of Education,
-- Directorate of Secondary and Higher Secondary Education (DSHE),
-- Department of Technical Education,
3. Ministry of Primary and Mass Education,
-- Directorate of Primary Education,
4. Ministry of Power, Energy and Mineral resources
-- Power Division,
-- Bangladesh Power Development Board (BPDB),
-- Energy and Natural Resources Division,
-- Bangladesh Oil, Gas and Mineral Corporation (Petrobangla)
5. Ministry of Communications,
-- Roads and highways Department,
-- Bangladesh Railways,
-- Bridges Division.
Expected Output:
Business process analysis and preparation of flowchart, brief discussions of activities, processes and constraints, future work-plan;
Training Needs Assessment (TNA) and work-plan for training during current year.
12
3. Role of Planning Cells for Planning, Budgeting and MTBF

3.1 Medium Term Budget Framework (MTBF)
The Government of Bangladesh (GOB) has introduced the Medium Term Budget Framework (MTBF) to improve the efficiency and
effectiveness of public expenditure and to ensure the attainment of the strategic goals and objectives of the Government. 33
LMs/Divisions introduced MTBF for the budget 2010-2011. All LMs/Divisions will be brought under MTBF for the forthcoming
budget for 2011-2012. The MTBF period has been extended to five year to make it consistent with the Sixth Five Year Plan.
Preparation of MTBF has three distinct phases viz. (i) Strategic Phase (ii) Budget Estimating Phase and (iii) Budget Approval Phase.
At the first stage, Ministry Budget Framework (MBF) for each LM/ Agency is prepared in accordance with the guidelines contained in
the Budget Circular-1 (BC-1) forwarded by the Finance Division to all LMs/Divisions. MBF is finalized in Tripartite Meetings with
the Finance Division, Planning Commission and the concerned Ministry/Division.
The main objectives of the MBF are: (i) to establish a linkage between the budgetary allocation and government's strategic objectives,
policies and priorities reflected in the NSAPR and other policy documents of the Government; (ii) to prepare a realistic expenditure
plan for the concerned LM on the basis of the resources available in the medium term; and (iii) to establish linkages between the
budgetary allocation and performance of the concerned LM/ Division/ Agencies. The MBF also focuses on gender budgeting and poverty
reduction budgeting.
MBF consists of two major Parts and five Sections. Part-A is prepared by the concerned LM/Division and Part-B is prepared by
Departments/Agencies under the respective Ministry.
MBF-Part A (to be prepared by Ministry/Division)
Section-1: Mission Statement & Major Functions of LM/ Division
Section-2: Medium Term Strategic Objectives and Key Activities
Section-3: Poverty and Gender reporting
Section-4: Priority Spending Areas/ Programmes
Form-1: Key Performance Indicators (KPI) of the Ministry/Division
Form-2: Preliminary Revenue Estimates and Projections
Form-3: Expenditure Ceilings for Departments and Agencies
MBF-Part B (to be prepared by Department/Agency)

Section-5.1: Recent achievements of the Division/Agencies under the LM
Section-5.2: Key Activities, Outputs related to the Activity & objectives
Section-5.3: Output Indicators and Targets
Section-5.4: Forward Budget Estimates
Section-5.5: List of Programmes/Projects of the Department/Agency
Form-4: Preliminary Expenditure Estimates and Projections for the
Departments/Agencies under the Ministry.
13
3.2 Development and Non-Development Budget

At present, the national budget is formulated in two segments, 'Development' and 'Non-development'. Although the intended
objectives are the same, such division leads to duplication and lack of coordination in resource allocation process which is considered
a major impediment in the budget management system. In order to overcome these limitations, in the budget speech for 2009-2010,
the Finance Minister (FM) reflected on formulation of a unified budget and district budgets to make allocations of public resources
explicit at the district level. FM also placed a concept paper before the Parliament highlighting important issues regarding unified
budget, decentralization and devolution of financial powers to district and upazila level, reforms in government accounting system,
changes in the format of development projects, revision of budget classification structure and digitization of government accounting. A
number of procedural reforms have to be taken before implementing a unified budget. The government has yet taken any decision on
unified budget. At present, all MTBF ministries are required to submit a single consolidated budget comprising of both nondevelopment and development estimates.
3.3 Organizational Set ups for Planning and Budgeting
Preparation of MTBF is a highly technical job and needs to be executed by the Budget Management Branch (BMB) with desired technical
knowledge. Accordingly, the GOB took a policy directive on creation of a Budget and Planning Wing in all the ministries/divisions within
their respective organizational structures to strengthen the process of budget formulation, implementation and monitoring activities at
the desk level. In general, the Planning Wings/Cells of the Line Ministries, Divisions and Agencies have the following responsibilities
and functions:
(i)
Preparation of strategic plan, sectoral five year plan and perspective plan for the LM;
(ii)
Identification, Processing, Appraisal, Management, Implementation, Monitoring and Evaluation of projects/Programmes;
(iii)
Preparation of Ministry Budget Framework (MBF) as per guidelines under the Budget Circular-1 issued by the FD;
(iv)
Assist PC for preparation of Annual Development Programme (ADP) and assist FD for preparation of Development Budget;
(v)
Report necessary information to IMED for monitoring and evaluation of projects/Programmes implementation.
The basic works of these activities are carried out at the Agency Level PW/C. The Planning Wing of the concerned Division
coordinates these activities for all the Agencies under it and submits to the LM for approval. The Planning Wing of the LM
coordinates activities for Divisions and interacts with the PC and IMED for project appraisal and approval, and coordinates with PC,
FD, ERD and IMED in finalizing budgets for development projects/Programmes.
14
4. Business Process Review (BPR) for Planning, and Integrating Planning with Budgeting and MTBF
4.1 Medium Term Strategic Business Planning (SBP)
Steps/ Processes/
Activities
(1)
4.1.1. Vision, Mission
Recommending
Processes used
Agencies
(2)
(3)
LMs/ Divisions Indicated as concise and
With inputs
clear purpose of broad
from Agencies
areas of operations. Are
linked to the Allocation
of Business of the
Agencies.
4.1.2. Major Functions
LMs/ Divisions
With inputs
from Agencies
Major functions are

indicated as per
Allocation of Business
of the concerned Cells/
cells/ wings.
15
Approving
Authorities
(4)
LM/FD
Impacts or
Consequences
(5)
This helps to
identify the
mandate,
objectives,
stakeholders and
clients.
LM/FD
This helps to
identify the
mandate, strategic
objectives, key
activities,
stakeholders and
clients.
Remarks
(6)
Vision statement is
not required under
BC/MBF. But, it
needs to be
indicated for
effective strategic
planning.
We agree with the
observations made
by the C1-BPR that
at present the
functions of the
LMs/ Agencies are
predominantly
structure based and
not concepts-based.
There is a need for
preparing detailed
Guidelines and
providing training
on basic concepts of
SBP/ MTBF.
Steps/ Processes/
Activities
(1)
Recommending
Agencies
(2)
Processes used
Approving
Authorities
(4)
Impacts or
Consequences
(5)
4.1.3. Goals, Core

Values, Clients
LMs/ Divisions
With inputs
from Agencies
Not specified, as these

are not required under
the present MTBF and
Budget Circular. Need to
be specified as these
provide basis for
identification of desired
outputs.
LM/FD
Focus on the
sequencing and
prioritizing projects
and activities
within resource
constraints.
For realistic
strategic business
planning, these
aspects need to be
focused by any
budgetary agency.
All LMs/Agencies
may also prepare
citizens charter.
4.1.4. SWOT4 (Strength,

Weakness,
Opportunities and
Threats) analysis
LMs/ Divisions
With inputs
from Agencies
A SWOT analysis is a
pre-requisite for
preparation of MTSBP
for any LM/ Division/
Agency. At present,
SWOT analysis is not
done in MBF, as it is not
required under the
present Budget Circular.
LM/FD
Indicates the sociotechno-economicpolitical context

under which an
Agency works.
Helps to identify
strategies and
policies.
A SWOT analysis
needs to be done
before identifying
strategies and
policies for any
Budgetary Agency.
(3)
Remarks
(6)
SWOT Analysis means Strength, Weakness, Opportunities and Threats Analysis for an organization. Strength refers to internal favorable factors, Weakness
means internal unfavorable factors, Opportunities mean external favorable factors while Threats mean external unfavorable factors or external constraints for the
growth and success of an organization.
16
Steps/ Processes/
Activities
(1)
4.1.5. Sectoral Policy
Documents
Recommending
Agencies
(2)
Processes used
LMs/ Divisions
With inputs
from Agencies
Prepared on the basis of

multi-stakeholders
consultations and the
reports of the Working
Groups
(3)
17
Approving
Authorities
(4)
Impacts or
Consequences
(5)
LM/ PC/ NEC Provides the basis

for identification of
strategic objectives,
key activities and
desired
Programmes.
Remarks
(6)
It is noteworthy that
there exist National
Agriculture Policy,
National Seed
Policy, National
Integrated Pest
Management
Policy, National
Education Policy,
National Land
Transport Policy,
Power Sector
Future Rolling Plan
and Power and
Energy Sector Road
Map. Other major
LMs may be
encouraged to
prepare their
respective policy
documents as a
guide to the
preparation of the
medium term SBP.
Steps/ Processes/
Activities
(1)
4.1.6. Medium Term
Strategic Objectives and
Key Activities
Recommending
Agencies
(2)
Processes used
(3)
LMs/ Divisions Detailed strategic

with inputs from objectives and key
Agencies
activities are indicated at
the very beginning for
linking with
Programmes/ projects
and for identification of
key performance
parameters.
Approving
Authorities
(4)
Impacts or
Consequences
(5)
Remarks
LM/FD/PC
Are linked to the

Master Plan, Road
Map, MDGs,
NSAPR, Five Year
Plan, and other
sector specific
policy documents.
Help to identify
linkages of
objectives with
projects.
We agree with the

observations made
by the C1-BPR that
at present the
strategic objectives
of the LMs/
Agencies are a
mixture of medium
term objectives,
strategies and
activities and need
to be more focused.
(6)
Another problem is
that multiple
Agencies have the
same strategic
objectives/ key
activities. So, it is
difficult to assess
their specific roles.
18
Steps/ Processes/
Activities
(1)
Recommending
Agencies
(2)
4.1.7. Gender Budgeting

and Poverty Reduction
Budgeting
LMs/ Divisions
With inputs
from Agencies
4.1.8. Key Performance

Indicators (KPIs)
LMs/ Divisions
With inputs
from Agencies
Processes used
Approving
Authorities
(4)
Impacts or
Consequences
(5)
Remarks
Impacts of strategic
objectives on poverty
reduction and womens
advancement are
identified and separate
budgets are allocated.
FD
Helps to assess the

impact of the
budget on the
related MDG
targets.
This is a very
welcome
development. In
future budgets,
KPIs may be
identified related to
these budget
allocations.
KPIs are CREAM (clear,

relevant, economic,
adequate, monitorable)
and SMART (specific,
measurable, agreed
upon, realistic, timely).
FD
KPIs are not linked

to the ultimate
projects/
Programmes. So, it
is difficult to judge
efficiency of
projects in terms of
KPIs.
We agree with the

observations made
by the C1-BPR that
at present the KPIs
indicated by the
LMs/ Agencies
are also a
confused array of
measurements for
inputs, intermediate
outputs and final
outputs and need
to be more focused.
(3)
19
(6)
Steps/ Processes/
Activities
(1)
4.1.9. Outputs and
Outcomes
Recommending
Agencies
(2)
Concerned
Agency
Processes used
(3)
Outputs are the
deliverables or the
products and services
produced, and the
immediate or end results
of activities, whereas
outcomes are the
medium term impact of
public Programmes and
policies on the economy
and user groups.
Comparison of planned
outputs with actual
outputs indicates
efficiency of a project,
whereas comparison of
planned outcomes with
actual outcomes
indicates the
effectiveness of a
project.
20
Approving
Authorities
(4)
Division/ LMs
Impacts or
Consequences
(5)
Selected overall
output indicators
are specified, but
multiple projects
produce the same
outputs, and the
outputs are not
measured for
specific projects.
Outcomes are not
indicated for most
of the projects. In
the absence of
M&E of outputs
and outcomes, it is
difficult to judge
the efficiency and
effectiveness of
projects/
Programmes.
Remarks
(6)
We agree with the
observations made
by the C1-BPR that
at present it is
difficult for the
MBFs fulfill its role
as a strategic
framework to drive
strategic planning,
sectoral resource
allocation and
performance
management for
LMs/Agencies to
achieve results
effectively and
efficiently.
Issues for Discussion:

International best practices for medium term budgeting indicate that in general the preparation of a Medium Term Strategic Business
Plan (MTSBP) for a LM is a pre-requisite for the preparation of MTBF for a LM. SBP is the analytical tool to link medium term
planning with annual budgeting and MTBF. It is a combination of Strategic Plan (SP) and the Operational Action Plan (OAP) of a
budgetary agency. MTSBP specifies intended Programmes/ projects along with cost estimates of a budgetary body, with a focus to
achieve a clear Mission, embedded in a realistic Vision, based on issues, objectives, policies and strategies identified in collaboration
with major stakeholders. SBP need not be too ambitious with an impressive plan but unrealistic targets. It should emphasize concrete
plan of actions and strict implementation schedules.
Ideally a MTSBP of a budgetary body shall form the basis for preparation and approval of its annual budget in the medium term
budgeting framework. MTSBP will contain strategic objectives and Programmes of the budgetary body for the forthcoming three/ five
years and the Programmes/ projects to be implemented during the next financial year and specified by outputs, outcomes and costs.
In the short run, strategic business plans need to be tailored to take advantage of institutional strengths and to avoid weak institutions
and conflicts. But, in the medium and long terms, emphasis should be placed on strengthening, replacing or even eliminating weak
institutions. While doing so, we need to understand the dynamics of both internal and external environment and be prepared with
appropriate strategy to tackle any contingent liabilities.
The Budget Circular-1 stipulates that each LM/ Division/ Agency must specify their mission, strategic objectives, major functions,
strategic objectives, and key activities linked to the Sixth Five Year Plan and NSAPR. Although there are some descriptions of the
basic concepts and some guidelines given in the BC-1 for the preparation of MBF, these cannot be taken as a substitute for detailed
Manuals/ Guidelines for the preparation of a Medium Term Strategic Plan for a LM. As reviewed in the above table, there are many
limitations in the present implementation. In fact, the LMs do not have a Medium Term Strategic Business Plan, which is consistent
with the Sectoral Master Plan, Sixth Five Year Plan, Perspective Plan and Vision 2021.
At present the LM indicates mission, strategic objectives, functions and projects related to these objectives. But these linkages are not
shown in concrete terms in terms of outputs, outcomes and intended performance indicators for each project/Programme. In the
absence of these interlinkages, it is difficult to judge the performance of individual projects/Programmes and to fix the responsibility
and accountability of the project/Programme managers.
21
IMED in association with the Agencies monitors and evaluates the projects during their implementation period. But the monitoring is
done to judge basically the financial compliance (i.e. comparing budgeted expenditure with actual expenditure and to indicate time
overruns and cost overruns), but the efficiency (comparing expected outputs with planned outputs) and the effectiveness (comparing
actual outcomes with planned outcomes) of the projects are not monitored and evaluated. In the absence of proper system and
methodology for monitoring, evaluation and review of the performance of projects, it is not possible to implement the MTBF basic
purpose of which is to move towards performance based output/ outcome budgeting.
Recommendations:
(1) It is recommended that a detailed Medium Term Strategic Business Plan (combining strategic plan and costed action plans)
may be prepared for a LM.
(2) In order to achieve (1), during the current year, three pilot LMs may be selected and detailed guidelines and manuals may be
prepared for the preparation of Medium term Strategic Business Plans for these LMs,
(3) Officials in the Planning Cells/ Wings in the LMs/ Divisions/ Agencies may be given training on basic concepts and essential
structures of the SBPs.
(4) Starting with next year, major LMs (having significant shares in budget allocations) may prepare Medium Term Strategic
Business Plan. It should be revised and updated every year with a rolling plan for five years.
(5) For uniformity, the SBPs of all budgetary entities for the years 2012-2015, may have the similar structure as indicated below.
(A) Foreword by the Minister
(B) Statement by the Secretary
(C) Vision, Mission, Core Values, Guiding Principles,
(D) Acts, Long Term Policy Documents, Priorities, Multi-stakeholders and Clients
(E) Strength-Weakness-Opportunities-Threats (SWOT) Analysis for the Economic-Social-Political-Technological Context
(F) Strategic Purpose, Objectives, Policies and Functions
(G) Top-Down Approach: Specifications of Goals, Targets, Projects/ Programmes, Outcomes, Outputs, Activities and Inputs
(with clear, relevant, economic, appropriate and monitorable indicators) in terms of manpower, financial resources and ICT
(H) Institutional Structures and Organizations for project implementation
(I) Programme Budgets for the Strategic Planning Period 2012-2015 along with past performance for the years 2010 and 2011.
(J) Financial Plan for the Budget
(K) Monitoring, Evaluation, Review and Performance Assessment System
(L) Annex-1: Implementation and Evaluation Report of the previous SBP
(M)
Annex-2: Costing and Budgeting Methodology and Benchmarks
22
4. 2 Preparation of Sectoral Perspective Plan

Steps/ Processes/
Activities
(1)
4.2.1 Preparation of
long term (for 10
to 15 years)
perspective plan
for a sector
Recommending
Agencies
(2)
Planning Wings/
Cells of the
Divisions/
Agencies
Processes used
(3)
Projections of sectoral
demand, supply,
investment etc. for the
next 10 to 15 years in
consistent with the
long term sectoral
policies and national
perspective plan of the
Planning Commission.
Approving
Authorities
(4)
Concerned
Division/
Department
Impacts or
Consequences
(5)
Such studies form
the basis of the
medium term
sectoral planning
and budgeting.
Remarks
(6)
Planning Cells of the
LMs/Divisions/Agencies
have constraints on
adequate manpower,
skill and ICT, and need
appropriate training.
However, ideally
initiatives and the
leadership role need to
be taken by the PC for
such studies and
modeling works.

At present Bangladesh Railways have a Master Plan for 15 years, which can be regarded as a Perspective Plan. But, the Ministry of
Communications or the Physical Infrastructure Division of the Planning Commission does not have an Integrated Perspective Plan for
multi-modal (rail, road, coastal shipping, inland water, civil aviation, pipelines) transport system. Constraints on physical
infrastructure (transport, telecommunications and energy) may affect adversely the sustainability of growth in future.
Recommendations:
It is desirable that the Planning Commission in association with the respective LMs and experts may develop sectoral planning models
for preparation of perspective planning for vital sectors such as transport and energy. In this respect, lessons can be learnt from similar
developing countries. However, such studies and sectoral modeling works fall outside the scope of the ongoing DMTBF Project.
23
4.3. Assist the PC in formulation of sectoral Five Year Plan

Steps/ Processes/
Activities
(1)
4.3.1 Formulation and
recommendation
for sectoral Five
Year Plan
Recommending
Agencies
(2)
Mostly directed
by LMs/
Divisions. In
some cases,
originated by
the Agencies.
Processes used
(3)
Projections of sectoral
demand, supply,
investment etc. for
five years in
consistent with the
five year national
development plan.
Approving
Authorities
(4)
Concerned
LMs/Division/
Department
and the PC
Impacts or
Consequences
(5)
Integrated by the
Planning
Commission
Remarks
(6)
Agencies/ Planning
Cells in LMs have
constraints on adequate
manpower, skill and
ICT, and need
appropriate training.

It is understood that all Divisions/ LMs have submitted draft Sectoral Five year Plans to the PC who are preparing the Sectoral
Chapters for Part Two of the Sixth Five Year Plan.
Recommendation:
PC needs to take leading role to guide LMs/Divisions/ Agencies for preparation of such reports.
24
4.4 Preparation of the Annual Development Programme (ADP)

One of the major functions of the Planning Commission is to prepare the Annual Development Programme (ADP) with the assistance
of the LM/Division/ Agency Planning Wings/Cells. ADP in an important vehicle for linking planning with budgeting and forms the
basis for medium term development budget under the MTBF. These works are closely related to the following functions:
(a)
(b)
(c)
(d)
(e)
(f)
Formulation of Five Year Plan and a long-term (15-20 years) Perspective Plan and submission to NEC5 for approval.
Formulation of the Three Year Rolling Investment Programme (TYRIP) in the past.
Formulation of Poverty Reduction Strategy Paper (PRSP).
Preparation of Annual Development Programme (ADP) within the framework of Five Year Plan.
Appraisal of project proposals for the PEC6/ ECNEC7 and the Minister for Planning.
Evaluation of Plans and their impact on the economic development.
National Economic Council (NEC) is the highest economic policy-making body of the nation. It is chaired by the Prime Minister and comprises all Ministers
as Members, and supported by the Cabinet Secretary; Governor, Bangladesh Bank; All Members, Planning Commission; and Secretary, Concerned Ministry/
Division. Major functions of the NEC include: (a) to provide overall guidance at the stage of the formulation of Five Year Plans. Annual Development
Programmes and Economic Policies; (b) to finalize and approve plans, Programmes and policies; (c) to review progress of implementation of development
Programmes; (d) to take such others decisions and actions as may be considered necessary for socio- economic development; and (e) to appoint such committees
as deemed fit to assist the NEC in the due discharge of its responsibilities.
6
Project Evaluation Committee (PEC) is chaired by the concerned Member of the PC and comprises Chief of the concerned Division of the PC,
representatives from the GED and the Prog. Division in the PC, FD and ERD of MOF, sponsoring LM, Implementation, Monitoring and Evaluation Division
(IMED), Ministries of Establishment, Environment and Forest, Women and Children Affairs, and Head of the concerned Executive Agency as Members.
7
Executive Committee of the National Economic Council (ECNEC) comprises PM as Chairperson, FM as Alternate Chairman, and Ministers of Planning,
Agriculture, Labor and Employment, Water Resources, Commerce, Shipping, Communication, and Minister/State minister of the concerned Ministry as the
Members. It is supported by the Cabinet Secretary, Principal Secretary and Secretaries of the PMO, ERD, FD, IMED, Planning Division, Programming Division,
GED and the concerned LM/Division. The functions of the ECNEC (a) to consider and approve public sector projects having investment expenditure of above
Tk. 250 million with prior recommendation of PEC meeting; (b) to review the progress of implementation of development projects; (c) to consider proposals for
investment companies as private, joint ventures with foreign participation; (d) to monitor the economic situation and review over-all performance of the economy
and related policy matters; (e) to consider the performance of statutory corporations and especially their financial performance.; (f) to consider rates, fees and
prices of public utility services or products of public enterprise; (g) to consider and approve yearly target of foreign aid, expansion of trade, export of manpower
as well as to review the progress of the yearly targets. At present, the meetings of ECNEC are held almost every week.
25
(A) Institutional Linkages of the PC with Line Ministries

(1) In preparing the Five Year Plan, Annual Development Programme and in carrying out the process of project appraisal and
approval, the Planning Commission interacts with different Ministries/ Divisions/ Agencies of the Government. The
Bangladesh Bureau of Statistics (BBS) conducts statistical surveys and meets comprehensive data requirements of the
Planning Commission for development planning and monitoring major macroeconomic parameters.
(2) Interlinkages of the Planning Commission with other Line Ministries and Divisions are indicated in a flow chart in Chart-1.
(3) FD and IRD of the Ministry of Finance advise the Planning Commission on matters relating to resource availability and
formulation of fiscal and monetary policy. The role of the Implementation Monitoring and Evaluation Division (IMED) of the
Ministry of Planning is also very important in the work of the Planning Commission. ADP implementation under the Five
Year Plan framework is monitored by the IMED and the Planning Commission takes corrective steps accordingly.
(4) Given the country's heavy dependence on official development assistance (ODA) from the international community for
development planning, the role of Economic Relations Division (ERD) is also very important. ERD mobilizes ODA to meet
saving-investment gap in the development planning. At the micro level, ERD lines up project aids for implementation of
Annual Development programme (ADP).
(5) Bangladesh Institute of Development Studies (BIDS) gives backup research support to the Planning Commission whenever
necessary. Planning and Development Academy supports the Commission by providing training inputs for its officials. Finally
the Commission submits plans, Programmes and projects to the PEC/ ECNEC/NEC for formal approval (Chart-1).
26
Chart-1: Linkages of the Planning Commission with other LMs/Divisions for preparation of the Annual Development
Programme (ADP), Five Year Plan, Perspective Plan and approval of public investment projects
Source: Website of the Planning Commission http://www.plancomm.gov.bd
27
4.4 Assist in preparation of Annual Development Programme

Steps/ Processes/
Activities
(1)
4.4.1. Spadework for the
preparation of the
Annual Development
Programme (ADP),
Revised Annual
Development
Programme,
Development Budget,
Log Frame of Projects in
accordance with the
Planning Commission
and Finance Division
guidelines
Recommending
Processes used
Agencies
(2)
(3)
Concerned
On the basis of
Agencies
guidelines of the
Planning Commission
and the Finance
Division
Approving
Authorities
(4)
PEC/ ECNEC/
NEC on the
basis of prior
approval by the
LMs/ FD
Impacts or
Remarks
Consequences
(5)
(6)
ADP forms the
(1) There are too
basis of
many projects and
development budget Programmes dealing
under the MTBF.
with the same
strategic objectives.
(2) Besides,
ADP includes
approved as well as
unapproved new
projects/
Programmes which
make MTBF
ineffective.
Issues for discussion:

(1) The ADP as prepared by the PC contains 17 sectors. Some 8 sectors like 1.Agriculture, 2.Industry, 3.Power, 4.Transport,
5.Education and Religion, 6.Sports and Culture, 7.Health, Nutrition, Population and Family Welfare, 8. Social Welfare, Women
Affairs and Youth Development comprise of some sub-sectors at varying number ranging between 2 sub-sectors for Sports and
Culture and 7 sub-sectors for Ministry of Education and Religion. Other sectors have no sub-sectors and provide allocation on
the basis of functional Cells directly under sectors like Physical Planning, Water Supply and Housing has as many as 30
functional Cells.
(2) The classification of ADP into sectors and sub-sectors appears arbitrary and does not seem to have any link with input-output
model developed by the PC.
28
(3) No code is used in ADP presentation. In contrast, the Development Budget prepared for the LMs/Divisions/Agencies follows
classification and code system under the Chart of Accounts of the iBAS. Conversion of ADP into Development Budget under
one frame work with expenditure code and classification poses problems and requires restructuring of ADP classification.
Recommendations:
ADP classification by sectors/sub-sectors need to be realigned with Development Budget classification. ADP may also use the
standard codes of the Chart of Accounts.
4.5 Preparation of Budget
The Planning Commission (PC), Programming Division (PD) of PC, FD, ERD, Administrative Ministries/ Divisions/ Departments/
Agencies/ Directorates and Corporations are the key agencies for the preparation of the Development Budget.
The preparation of budget starts with the issue of Budget Circular-1 (BC-1) in December/ January by the FD indicating LM/
Division wise indicative expenditure ceilings for the budget year finalized by the BMRC on the basis of macro-economic and
fiscal projections. FD provides guidelines and Proforma to the LMs/ Divisions to prepare Ministry wise Medium Term Budget
Proforma.
Budget Management Branch (BMB) of each LM/ Division finalizes MBF and puts up MBF for examination by the Budget
Working Group (BWG) and approval by the Budget Management Committee (BMC). Parts A and B of MBF are then
forwarded to the FD.
LMs/Division wise resource and expenditure ceilings for budget year and four forward years are then finalized in tripartite
meetings of FD, PC and LM chaired by the Finance Secretary. While preparing total indicative expenditure and revenue targets
for each sector, various issues such as strategic objectives, activities and priorities of each ministry, fund required for
implementing ongoing projects and Programmes are considered. Besides recent trends of revenues and expenditures and
effectiveness and efficiency of public expenditure incurred by the ministries and agencies, major issues related to other sectors/
ministries and their impact on the poverty reduction and growth strategy, gender equality, attainment of targets under the
Millennium Development Goals (MDG), sectoral policy papers are also considered.
29
FD then circulates Budget Circular-2 (BC-2) to all budgetary agencies for preparation of ministry/ division wise budgets within
expenditure ceilings for combined developmental and non-developmental budget. Simultaneously, PC initiates preparation of
ADP. After finalization of ADP by PC, FD transforms ADP into Development Budget. Different steps involved for the
preparation and finalization of ADP and Development Budget are described below.
Preparation of Development Budget
4.5.1
4.5.2
4.5.3
4.5.4
4.5.5
4.5.6
4.5.7
4.5.8
Development budget is coordinated and prepared in the Programming Division (PD) of the PC, which issues guidelines and
standard Proforma sometime in March to the Executive Agencies for preparation of the proposed and revised estimates for the
Annual Development Programme (ADP).
The Executive Agencies submit the revised estimates for the current year and the estimates for the Budget Year to the
Programming Division (PD) of the PC through the Administrative Ministry / Division.
A Programming Committee constituted in the PD of PC with participation from the FD, ERD and IMED examines and reviews
development project proposals on considering the priorities of Ministries/ Divisions, and finalizes project wise allocations to
be provided for in the ADP on the basis of available resources.
The Programming Committee undertakes a review of the ADP beginning the middle of November to finalize the revised ADP
(RADP) and makes the first projection of the ADP for the following year (i.e. the Budget Year).
The Programming Committee finalizes the recommendations for ADP in the month of April/May each year for consideration
by the Planning Minister and presentation to the NEC.
Particulars of each approved project/ Programme/ scheme included in the RADP/ ADP, showing the revenue and capital
components with the breakdown and estimated receipts, if any, are furnished to the FD by the respective administrative LMs/
Divisions for incorporation in the Budget.
The FD then classifies the allocation for the project to the Classification Chart for incorporation in the budget. Presently the
MTBF LMs/ Divisions put the data in the formatted Chart of Accounts and these are cross checked by FD.
The project-wise estimates of expenditure of projects completed during the last fiscal year are also furnished to the FD by the
respective LMs/ Divisions for making necessary budget provision in the non-development budget.
30

(1) Major problem with the ADP prepared by the PC is that ADP presents the project-wise estimated expenditure for only the
budget year and indicates only the aggregate capital and current expenditure for each project. The detailed line items under the
economic classification for each project are not indicated, although the information is available with the original
DPP/RDPP/APP/RAPP for the project approval. So it is not possible to make economic analysis of the development budget.
(2) Similarly, the absence of project expenditure for the subsequent four forward years (beyond the budget year) makes it
impossible to prepare the MTBF for the development budget for each project.
(3) There are too many projects/ Programmes under both the ADP dealing with the same strategic objectives and key activities and
delivering the same outputs. The system makes it difficult to monitor and evaluate the KPIs and Outputs for each project and
to fix responsibility and accountability.
Recommendations:
(1) It is desirable to adopt the concept of Programme budgeting and to place all projects with same objectives under one
Programme umbrella with well defined planning, implementation and output/outcome targets.
(2) For effective MTBF for the development budget prepared on the basis of ADP, it is desirable to provide information of project
cost for the budget year and for four forward years, as is done with the non-development expenditure.
(3) It is also advisable to provide major line items (such as Compensation of Employees, Use of Goods and Services,
Consumption of Fixed Capital, Interest, Subsidies and Social Benefits, Interest Payments, Other Expenses, Acquisition of
Nonfinancial Assets) under development budget for making economic classification of development expenditure.
31
4.6 Project Preparation, Appraisal, Monitoring and Evaluation

These activities form an integral part for the preparation of the Annual Development Programme (ADP) by the PC. ADP in
Bangladesh is equivalent to the Public Investment Programmes (PIP) in other developing countries. Efficient management of public
investment with better designing, prioritization, implementation and monitoring is very important for sustaining growth and achieving
the objectives of poverty reduction. International experiences indicate that reforming public investment management (PIM) systems is
very challenging and require efficient organization. Managing sophisticated investment projects in infrastructure, including publicprivate partnerships (PPPs), with their wide spread social, economic and environmental impact is not only institutionally complex, but
also politically challenging.
According to the World Bank Policy Research Working Paper entitled A Diagnostic Framework for Assessing Public Investment
Management, prepared by A. Rajaram, T. M. Le, N. Biletska, and J. Brumby (2010), there are eight distinct phases of a project
starting with project design and ending with project evaluation as indicated in the following flow chart:
Flow-Chart-1: The eight must-have features of an efficient PIM system (Ref: A. Rajaram et. all (2010), WB)
In the following paragraphs, we review critically the Business Process for each of these activities for project design, preparation,
approval, monitoring implementation, evaluation and review.
32
4.6 Project Design, Project Conceptualization and Preparation

Steps/ Processes/
Activities
(1)
4.6.1. Project Designproject
conceptualization and
identification
Recommending
Agencies
(2)
Mostly directed
by LMs/
Divisions.
In some cases,
initiated by the
Agencies.
4.6.2. Preparation of
Feasibility Reports and
Detailed Project Reports
(DPR) and initial
techno-economicfinancial appraisal
Concerned
Agencies.
Mostly inhouse, but for
donor funded
projects and
large and
complicated
projects, by
technical
consultants.
Processes used
(3)
Followed by preparation
of feasibility reports
(FR) and Detailed
Project Reports (DPR).
On the basis of
established cost-benefit
analysis, methodologies,
surveys, technoeconomic data and in
accordance with the
Planning Commission
guidelines for Financial/
Economic Appraisal, and
Environmental impact
analysis guidelines by
the donors.
33
Approving
Authorities
(4)
Concerned
Division/
Department/
LMs
Impacts or
Consequences
(5)
Project Concept
Paper (PCP) forms
the basis for the
preparation of
DPR.
Concerned
Division/
Department/
LMs
Detailed technoeconomic-financial
cost benefit
analysis is used to
prepare
Development
Project Proforma/
Proposal (DPP),
and Technical
Assistance Project
Proforma/ Proposal
(TPP)
Remarks
(6)
Agencies/ Planning
Cells in LMs have
constraints on
manpower, skill,
information and
communications
technology (ICT).
Agencies/ Planning
Cells in LMs have
constraints on
adequate manpower,
skill and ICT, and
need appropriate
training, particularly
on social cost
benefit analysis and
environmental
impact analysis.
4.7 Project Appraisal and Approval

Steps/ Processes/
Activities
(1)
Development Project
Proforma/ Proposal
(DPP) and Revised DPP
(RDPP)
Recommending
Processes used
Agencies
(2)
(3)
Concerned
On the basis of the
Agencies
detailed guidelines,
benchmarks and
standard Proforma,
issued by the PC (see
Methodology for
Identification, Appraisal,
Approval and revision of
Public Funded Projects,
pp.1-81, May 2008,
Planning Commission).
Approving
Authorities
(4)
PEC/ ECNEC
with prior
approval by
the concerned
Division/
Department/
LM
Impacts or
Consequences
(5)
Approved projects
are included in the
Annual
Development
Programme (ADP)
Technical Assistance
Project Proforma/
Proposal (TPP) and
Revised TPP (RTPP)
Concerned
Agencies
PEC/ ECNEC
with prior
approval by
the concerned
Division/ LM
Approved projects
are included in the
Annual
Development
Programme (ADP)
On the basis of the

Planning Commission
guidelines, benchmarks
and standard Proforma,
as indicated above.
34
Remarks
(6)
There are too many
projects dealing
with the same
strategic objectives/
key activities and
delivery of the same
outputs. Some
rationalization of
project groups is
required for better
monitoring. We also
need forward
estimates of project
costs.
Both the DPP/
RDPP and TPP/
RTPP need to be
revised to provide
forward estimates
required under
MTBF, and also to
make economic
classification of
development
expense.
Summary of Approval Procedures of Development Projects under ADP

Actions
Ministry/ Division/
Agencies responsible
Investment Projects
A.1
Project conceptualization and project design
A.2
Preparation of the detailed techno-economic-financial

appraisal report for a project and submission to the
Sponsoring Ministry/ Division in DPP format
Submission to the relevant Sector Division (SD) of the
Planning Commission after necessary examination,
modifications and corrections
Return of DPP to the Sponsoring Ministry/ Division, if it is
incomplete or grossly lacks vital information
Processing of DPP by SD of PC and submission to PEC
after necessary appraisal
Issue of PEC meeting minutes/ decisions
A.3
A.4
A.5
A.6
A.7
A.8
A.9
Planning Wing/ Cell of

the Executive Agency
Executive Agency (EA)
Time limit
As directed by LM or initiated
by the Executive Agency
As directed by LM
Sponsoring Ministry/
Division (SM/D)
In 20 copies within 10 working

days of the receipt of DPP from
the EA
Relevant sector division Within 30 working days of the
of the PC
receipt of DPP from SM/D
Sector Division of PC
Within 15 working days of the
receipt of DPP from LM/DIV
Sector Division of PC
Within 10 working days
Submission of recast DPP on the basis of PEC comments Sponsoring Ministry/

to the Planning Commission
Division (SM/D)
Submission of DPP up to TK 25 crore to Planning Minster Sector Division of PC
for approval
Submission of DPP above TK 25 crore to ECNEC for Sector Division of PC

approval
35
Summary of Approval Procedures of Technical Assistance Projects for ADP

Actions
Ministry/ Division/
Agencies responsible
TA Project Approval Process
B.1
Preparation of the project proposal in TPP Format and

submission to the Planning Cell of the Sponsoring
Ministry/ Division (SM/D)
Examination and finalization of the project proposal
Circulation of the proposal to PC, IMED, FD, ERD and
other concerned agencies for comments and review
Inter-Agency Committee meeting under the Sec (SM/D)
Submission for approval to the Minister of the SM/D for
projects up to TK 70 million as development partners
contribution
Submission for approval to the planning Minister for
projects above TK 70 million as development partners
contribution
Total processing period:
(a) In the Sponsoring Ministry/ Division
(b) In the Planning Commission
B.2
B.3
B.4
B.5
B.6
B.7
36
Time limit
Executive Agency (EA)

Planning Cell of SM/D
Sponsoring Ministry/
Division (SM/D)
SM/DIV
Sponsoring Ministry/Div
(a) 30 working days

(b) 45 working days
Issues for Discussion and Recommendations:

(A) Project Conceptualization
1.
Ideas and concept of project/Programme originate from many sources like the LM, donors, on-going project manager,
implementing division/agencies etc. But, the main responsibility of preparation of Programme/project through DPP/TPP remains
with the implementing divisions/agencies.
(B) Project Appraisal
2.
The PW/Cs of the LMs/ Divisions/ Agencies collect the primary data and information and undertake the basic tasks of ex-ante
and ex-post appraisal, monitoring and evaluation of projects. PC re-examines their works for final submission to the ECNEC in
the process of approval. PC also prepares and circulates general guidelines for project appraisal and provides discount factors
and opportunity cost of capital to all LMs, PW/C to facilitate appraisal of projects/ Programme.
3.
Transfer of responsibility of basic project appraisal from the PC to the Divisions/Agencies and resulting enhanced
responsibilities of the LMs/Divisions/ Departments/Agencies required intensive training on project/ Programme appraisal,
review, monitoring and evaluation for the PW/C officials in order to enable them to perform professionally and independently,
but the desired capacity building has not happened until date. Consequently, the actual techno-economic-financial-environmental
appraisal of the projects/ Programmes are mostly done by the consultants and in-house by only a few technical Agencies.
4.
The planning officials working in the LMs/ Divisions/ Agencies are generally involved in routine type functions relating to the
preparation of the Development Project Proforma/ Proposal (DPP), Revised DPP, Technical Assistance Project Proforma/
Proposal (TPP) and Revised TPP to the higher authorities in LMs/ PC for approval of projects.
5.
Too many projects are put up for approval by the sector division and the Programming Division which may not have sufficient
staff and time to make rigorous recheck and scrutiny of project appraisals. Some rationalization is required on the number of
project proposals by the LMs/Division/Agencies which need to have much longer vision and consolidated strategic objectives.
37
(C) Project Approval Process

6.
Approval process involves divisions/agencies at the bottom to ECNEC 8 at the highest level via LM and PC. Data/information
for DPP/TPP are collected and estimated mostly at the Divisions level through its functioning Cells and other internal and
external sources. Departments/agencies prepare the DPP/TPP and send it to the concerned LM for examination in the PW/C. The
LM PW/C examines the proposals and secures the approval of the Secretary/Minister and sends the DPP/TPP to PC sector
division. The PC examines the proposal and initiates approval process through Project Evaluation Committee (PEC) 9; first step
in approval process. After approval by PEC, the proposal is sent to ECNEC Secretariat in the PC for processing for submission
to ECNEC for Approval.
7.
Sometimes, formal/informal discussions/meetings, if required are held among concerned officials of LM, PC, ERD, MOF,
IMED etc to sort out issues. Programme/Project proposal, if needed are sent back to its source for correction, revision, changes
etc at any level of approval process. Approval process has some element of decentralization in approval authority. For example,
Minister for Planning has the authority to approve investment project/Programme up to cost of Tk 250 million and LM Minister
can approve Technical Assistance project up to Tk 75 million.
8.
LM has to approve the proposal through Departmental Special Project Evaluation Committee (DSPEC). LM Secretary is the
Chairman of the DSPEC. Representation in the DSPEC is same as that of the PEC.
9.
In the case of TPP, the minister for planning can approve project/Programme without any cost limit while LM minister has the
authority to approve proposal up to Tk 75 million. Decentralization limits and procedures need to be examined and reviewed to
reduce time taken for project appraisal and to reduce project costs due to time overruns.
See footnote 7 on page-23.
See footnote 6 on page-23.
38
Recommendations:
(1) All Planning Wings/Cells of the LM/divisions/Agencies express shortage of manpower, skilled manpower and the facilities for
ICT. The concerned administrative Ministries/ Divisions may conduct detailed studies on Human Resource Development.
However, this aspect does not fall under the purview of the present DMTBF Project.
(2) Planning Wings/Cells of the LM/divisions/Agencies need to be given desired training on all aspects relating to the Public
Investment Management. These include project conceptualization, project design, feasibility studies, detailed project appraisal
reports, economic/ financial cost-benefit analysis and environmental impact analysis. For technical divisions/ agencies such as
Petrobangla and Power Division, there will be additional needs for technical training relating to their specific fields. A separate
report has been produced on the Training Needs Assessment (TNA) of the pilot LMs/Divisions/ Agencies.
(3) DPEC/PEC can be considered to be the appropriate and basic step/level where the decisions for approval/rejection of
investment proposals are taken on the basis of results of ex-ante economic, financial and technical appraisal by the concerned
Agencies/ Divisions. Quality of project proposals put up for consideration of the ECNEC could be ensured at the level of
DPEC/PEC. Almost the same members participate at the meetings of the DPEC/PEC chaired by the Secretary (LM)/ Member
of the concerned Division of the PC, respectively. Investment size and participation of officials level and quality at
PEC/DPEC have been changing in inverse order since long. This is an important area that needs to be critically examined in
more details for suitable reforms in public investment management.
(4) Decentralization of financial limits on project size and procedures for project approval at different levels (starting with the
Agency/ Division / DPEC/LM and going up to the PEC/ ECNEC/ NEC) need to be examined and reviewed to reduce time
taken for project appraisal and to reduce project costs due to time overruns.
39
4.8 Monitoring and Evaluation of Project Implementation

(1)
Traditionally, the Development Budget is under watch of the concerned authorities on routine basis. In general, the LM
holds monthly ADP Review meeting to monitor the financial progress on regular basis. All concerned officials of the
LM/divisions/departments/agencies attend this meeting. MOF, ERD, IMED, PC etc are represented in the ADP review meeting.
Secretary of the concerned LM generally chairs such review meeting. In some cases or in some ministries, Minister himself holds
such meetings. Apart from financial progress, different issues facing the project implementation and time and cost overruns are
discussed. The Planning Wing/Cell prepares the background paper for ADP review meeting. In most cases, the administration
division is well represented in the ADP review meetings.
(2)
For development projects, IMED prepares monthly, quarterly and annual reports on the basis of data and information
sent by concerned Ministry/Division/Agency in standard formats during the implementation of the projects. Final Annual Report of
IMED is presented in the NEC meeting. In contrast, revenue budget remains outside the purview of watch and continues to be
routine type. Review of physical implementation progress is in rudimentary stage. In some cases, after the introduction of MTBF,
physical progress issues come up in review meetings.
(3)
Central Procurement Technical Unit (CPTU) in the IMED has made significant advance in introduction of
procurement manual, guidelines, rules and regulations. Procurement plan presentation formats are appended with DPP/RDPP/
TPP/RTPP. There are various Rules and regulations for procurement planning. These issues are being examined in a separate
Diagnostic study.
(4)
DPP annual phasing of project cost has rare links with actual development budget allocation. In most cases, actual
provision is less than the amount shown in the DPP/RDPP. In addition, there is block allocation of funds for many unapproved new
projects included in the ADP. Consequently, project/Programme implementation falls behind target. Lack of required resources,
change of priority etc may be some of the reasons for insufficient provision. DPP phasing of implementation of project may also be
another factor affecting implementation because in most of the cases the DPP phasing of project costs may not done on the basis of
rigorous feasibility analysis.
40

Steps/ Processes/
Activities
(1)
4.8.1. Project
Implementation
Recommending
Processes used
Agencies
(2)
(3)
Concerned
On the basis of
Agencies
guidelines of the
Planning Commission,
IMED and the Finance
Division
Approving
Authorities
(4)
Project
Managers are
appointed for
each project
by the
concerned
LM/Division/
Agency
4.8.2. Monitor and

Evaluate the
development projects
and prepare Monthly,
Quarterly and Annual
M&E Reports within
the project
implementation period
Concerned
Agencies
Reports are
submitted to
NEC by
IMED after
prior scrutiny
by the LMs/
Divisions and
the concerned
PC Division

guidelines and Proforma
stipulated by the IMED
41
Impacts or
Consequences
(5)
Project Managers
have the
responsibility for
day-to-day
operational matters
and to provide
information to the
LM/Division/
IMED for project
monitoring.
Analysis of project
performance
against agreed
targets is provided
to LM. IMED seeks
to explain reasons
for time and cost
overruns for taking
appropriate
corrective
measures.
Remarks
(6)
Consolidation of
multiple projects
with similar
strategic objectives
may be considered
for better
implementation and
coordination.
Monitoring reports
are considerably
delayed in many
projects due to
existence of too
many ongoing
projects.
Steps/ Processes/
Activities
(1)
4.8.3. Post
implementation review
and evaluation of a
project
Recommending
Agencies
(2)
Processes used
Concerned
Agency/
Divisions/ LMs

guidelines and Proforma
stipulated by the IMED
(3)
Approving
Authorities
(4)
Impacts or
Consequences
(5)
Reports are
submitted to
NEC by
IMED after
prior scrutiny
by the LMs/
Divisions and
the concerned
PC Division
Terminal evaluation
reports are prepared
by IMED on all
projects
immediately on
completion. It
contains an analysis
of the project
progress with
recommendations.
IMED also
commissions expost evaluation of
selected projects for
assessing their
impacts on the
community and the
lessons learned are
used in future
project design and
implementation.
42
Remarks
(6)
Terminal
Monitoring reports
are considerably
delayed in many
projects due to
existence of too
many ongoing
projects.
Issues for discussions:

IMED monitors more than 900 projects under the ADP and evaluates around 200 projects on an annual basis. Under the ADP implementation
status IMED publishes monthly, quarterly and annual progress reports for all LMs and also for the top 10 ministries with largest allocations.
The main reports emanating from the IMED are:
i)
Monthly performance evaluation of projects of the Ministries/Divisions,
ii)
Quarterly performance evaluation reports of ADP included projects,
iii)
Annual review report on ADP implementation,
iv)
Annual project evaluation reports, and
v)
Impact assessment reports conducted by the external bodies.
The basic thrust of IMED's M&E activities is identification of implementation problems and their timely resolution to accelerate project
progress and to reduce time and cost overruns. All the reports prepared by IMED contain implementation problems and suggestions for
appropriate actions. These problems are discussed in review meetings held at the Ministry, the NEC, and appropriate measures and policies
are identified to resolve project problems in time.
Role of Respective Divisions/ Agencies

IMED is assisted by the concerned Divisions/ Agencies to produce these reports. Some of the Divisions, like the Power Division has
developed efficient ADP Project Monitoring and Evaluation System: Power Division is currently monitoring more than 45 projects
with 11 agencies and provides up-to-date project status (Physical & Financial). Previously the system was managed manually with
several ledgers. Presently the project management system has been automated to keep records and to generate up to date reporting. This
software, designed and developed with the direction and supervision of Joint Chief, Power Division, has the following major features:
Web based application using Unicode Bangla.
Authorized users can login and use this application through Internet.
Managing the information regarding projects, agencies and donor agencies.
Monitoring ADP/RADP allocation and procurement plan of the projects under different agencies.
Tracking the fund allocation and release of ADP and RADP against a project.
Tracking financial & physical target & progress report of a project.
Generating the financial and physical progress report (including BAR Chart) of a project.
43
Online Reporting of IMED Reports

At present, IMED is in the process of strengthening its website and developing a software to prepare and publish its reports online from
April 2011. In February 2011, the Planning Minister launched the software and said "The long-practiced manual process of getting and
publishing monthly, quarterly, half-yearly, and annual reports of different ministries and departments will come to an end through the
introduction of the software. It will also help to get the project development reports by the third day of every month." Addressing the
Programme, IMED secretary Mohammad Habib Ullah Majumder said that all the government offices would now send their reports to
the IMED through internet and it would publish those online.
Recommendations:
(1) Multiple projects with similar strategic objectives may be integrated/ consolidated/ combined under single Programme, if
feasible, for better implementation and coordination.
(2) Implementation Monitoring reports and Terminal Project Implementation Reports are considerably delayed in many projects
due to existence of too many ongoing projects. There is need to reduce the delay in preparation and submission of these reports
to make them more effective.
(3) As planned by IMED, the process of development of online monitoring software and website need to be completed by April
2011. This would save time and the monitoring reports would be more effective, productive and transparent.
(4) Planning Wing/Cells have diverse functions and responsibilities starting with project conceptualization and ending with project
monitoring and evaluation. In fact they have major roles in the complete cycles of public financial management reforms. All
the Planning Wings have expressed shortage of personnel, skill and desired ICT to conduct their works more efficiently and
within specified time limits.
(5) Planning Wing/Cells need to be strengthened in terms of manpower, skill and provisions of ICT. They need to be manned by
technical and professional cadre and be trained in all aspects relating to project preparation, appraisal and M&E.
44
4.9 Post Project Evaluation/ Result-Based Evaluation

Post project evaluation/ Result-based evaluation is different from the terminal project implementation and evaluation report as
discussed under section 4.8 above. Post project evaluation basically implies an impact analysis of a project in terms of exact outputs
and outcomes. The IMED monitoring report examines the financial compliance i.e. comparing actual project costs with the budgeted
project costs to determine time and cost overruns. But, we need to compare actual outputs with targeted outputs to evaluate efficiency
of a project, and to compare actual outcomes with targeted outcomes to evaluate effectiveness of a project.
The result based M&E system moves beyond the traditional input based M&E and can help policy makers analyze outcomes and impacts. It
is a powerful public management tool that can be used by the governments to demonstrate accountability, transparency and results. It also
provides solid knowledge base for formulation of future development projects. The system can also bring about major political and cultural
changes in the public operations and organizations leading to improved performance, increased accountability, transparency, learning and
knowledge. In the specific context of Vision 2021 and the Sixth Five Year Plan, a results-based M&E will be critical to helping the
Government track and monitor progress with implementation of the respective targets and take corrective actions in time. Accordingly, the
draft Sixth Plan has proposed specific steps to move towards a results-based M&E.
The World Bank Handbook on Result-Based Monitoring and Evaluation System has proposed adoption of a 10-step model as
presented in a flow-diagram (Figure i-ii) on next page. These steps include the following:
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
Conducting a readiness assessment;

Agreeing on outcomes to monitor;
Selecting indicators to monitor;
Establishing baseline data on indicators;
Planning for improvements- selecting result targets;
Monitoring for results;
Emphasizing the role of evaluation;
Reporting the findings;
Using the findings; and
Sustaining the M&E system within organization.
45
Source: Kusek, Jody Zall and Ray C. Rist (2004) Ten Steps to a Result-based Monitoring and Evaluation- A Handbook for
Development Practitioners, pp.1-268, World Bank.
46
4.9 Post Project Monitoring and Evaluation

Steps/ Processes/
Activities
(1)
4.9.1 World Bank 10Step Model for Project
M&E- Diagnostic
study, Choice of
outcomes, Setting key
performance indicators,
Establishment of
performance
benchmarks, Selection
of results targets in the
interim period,
collection of reliable
and quality performance
data, types and timing
of evaluation,
Preparation of analytical
reports, Dissemination
of information and
reports, Establishment
of credible support
systems for sustaining
results-based M&E
systems
Recommending
Agencies
(2)
As present there
is no established
institutional
process or
practice to
conduct these
activities on
systematic
basis.
Processes used
(3)
The draft Sixth Five
Year Plan has proposed
specific processes to
move towards the resultbased M&E system.
These processes are
discussed in details in a
background paper
prepared by us.
47
Approving
Authorities
(4)
Reports will
be submitted
to NEC by a
special unit in
the GED after
prior scrutiny
by the LMs/
Agencies/
Divisions and
the concerned
PC Division.
Impacts or
Consequences
(5)
In the specific
context of MTBF,
MDG, Vision 2021
and the Sixth Five
Year Plan, a resultsbased M&E will be
critical to helping
the Government
track and monitor
progress with
implementation of
the respective
targets and take
corrective actions
in time.
Remarks
(6)
It is recommended
that a specialized
unit may be set up
within the GED of
the PC to conduct
these activities.
The GED/ Sector
Divisions of the PC,
BBS, and the
Planning
Wings/Cells in the
Divisions/ Agencies
may be given
necessary training
to collect basic data
and information and
to support the
specialized unit in
the GED.
Issues for discussions:

At present the IMED monitoring and evaluation reports are mostly the financial compliance reports during the project implementation report
or immediately after the completion of a project. There are very few reports on the impact analysis of the major public investment reports or
the supply of public goods and services. The result based monitoring and evaluation reports make an attempt to evaluate the outputs and
outcomes of the public investment projects.
There are not any detailed guidelines issued either by the PC or by the IMED for such evaluation. There is no identifies technical institution
to conduct such studies.
Strengthening Result Based Monitoring Project of IMED
This project has started in July 2007 and was expected to complete by June 2009. The project was funded by an Asian Development Bank
grant of US$ 800,000 and Government of Bangladesh contribution of US$ 2,00,000. The main objective of the "Strengthening Result Based
Management Capability of IMED and FAPAD in the Monitoring and Evaluation of the Projects" was to help improve the efficiency in
resources use by enhancing the project monitoring capacity of Implementation Monitoring & Evaluation Division (IMED) and auditing
capacity of Foreign Aided Project Audit Directorate (FAPAD).
The project delivered the following benefits:
(i) Strategic plan for IMED and action plan for strengthening its functions, staffing, organizational structure and reporting relations;
(ii) Capacity needs assessment and a capacity building training plan supporting implementation of the strategic plan;
(iii)Targeted capacity building activities, including training on M&E, RBMS, MIS, Performance Audit and other areas
(iv) Development of Web-based technology for data entry and establishment of linkage for online and offline data transfer from
LGED. WDB, PDB, REB, RHD. BCIC, DOF, CGA Office, M/O. Finance, Programming Division & GED;
(v) Further functional enhancement of database and expansion in the short and long terms;
(vi) PC based tools for computerized audit management.
(vii) Gradually extend the system of different level of Implementation including Line Ministries, Agencies and projects in the
light of Malaysian Model;
(viii) Continue training on PMIS, M&E even after completion of the project;
(ix) Engage consultants on small scale from GOB budget to facilitate regular maintenance of the PMIS.
48
IMED has been strengthened significantly under this project. IMED has prepared a Five Year Strategic Plan (2008-2013) with Vision,
Mission, Strategic Goals and Objectives, Organizational Change Management, and concrete action plans until the end of 2013.
Citizens Charter has been prepared and put on the IMED website for transparency and information of all stakeholders. Standard
Formats have been developed for preparation of monthly, quarterly, annual and terminal implementation reports for the ongoing
projects. There are separate detailed progress reports for top ten Ministries.
Despite these progresses on monitoring and evaluation by IMED, our diagnostic study indicates that the LMs/ Divisions/ Agencies need
further strengthening of their information and communications technology (ICT) and training on Project Monitoring and Evaluation of
Project Implementation. The result-based monitoring and evaluation system is absent for practical purpose in the LMs/ Divisions/ Agencies.
Although there are detailed formats for monitoring and evaluation of the ongoing projects and to prepare the terminal reports after the
completion of a project, there are no detailed guidelines and manuals on result based monitoring and evaluation.
Recommendations:
(a) GED in the PC in collaboration with the IMED may take the lead responsibility to institutionalize result-based M&E system.
(b) It is recommended that a specialized unit may be set up within the GED of the PC to conduct these activities.
(c) The Planning Cells in the Divisions/ Agencies, and the sector divisions in the PC may be given necessary training to collect basic
data and information and to support the specialized unit in the GED/PC.
(d) The capacities of the GED, IMED, PWs in LMs/Agencies will need to be strengthened with better staffing, technology and training.
(e) Good practice results-based M&E from international experiences from similar countries need to be studied and adapted.
(f) The capacity of BBS will be further strengthened to generate required data for M&E. This could entail special-purpose surveys
(g) Strong results-based M&E will require collaboration with the LMs, research institutions, and civil society.
(h) ICT needs to be improved and workshops need to be organized for wider dissemination of M&E results.
(i) Detailed guidelines and manuals need to be prepared before initiating pilot studies.
49
5. Training Needs Assessment (TNA) of the Planning Wings/ Cells of Ministries/Divisions

And Departments/Agencies under LMs
Introduction
As indicated earlier under the methodology and survey design for the study, a three member team comprising Dr Tarun Kanti Das,
International Consultant (Technical Expert C-3.4 &4), S.M Shahjahan and M A Muktadir Mazumder, National Consultants
(component -3.4) visited Planning Wings/Cells of 16 selected LMs/Divisions and their Departments/Agencies in order to elicit some
information on their performance in terms of conceptualizing, processing and preparation of development budgets particularly
MBF/MTBF. The discussions and interactions between Planning Wing/Cell concerned officials and the consultant team were informal,
free and open. Record notes of these meetings are attached in Annexure-3.The diagnostic study efforts were very pragmatic and
objective keeping in view the role of training only in capacity building of the involved officials.
Questionnaire and Response
A simple questionnaire (Annex-2) was devised and distributed among the concerned planning officials of 16 Ministries/ Divisions /
Department/ Agencies. 64 filled-in questionnaires were received back in about 7days time. Table 5.1 presents LM/Agency wise
responses to fill in these questionnaires. Due to their pre-occupation with other office works, BADC and Petrobangla could not
provide us filled-in questionnaires within the stipulated time limit.
Sample Size
Number of filled-in questionnaires ranges widely from 1 to 13; DAE submitted 13 filled in Questionnaires, PDB 12, MOC and
DS&HE 1 each. Ministries/Divisions sent in all 24 filled-in Q while department/agencies sent 42. Due to constraints on time of both
ministry officials and consultants, half-day workshops to canvass the Questionnaires and to fill in these by the focus group, as
suggested by Adviser (C3) could not be organized. However, quality of data and basic information have been verified and
complemented through direct interactions with the concerned officials during our visits.
50
Table-5.1
Training Needs Assessment of Planning Wings/Cells of Ministries/Divisions and Departments/Agencies under LMs
Questionnaires in number
Ministries/Division/Department Visited,
Discussed and Questionnaires Distributed
Filled-in Questionnaires Received

Ministries
Divisions
1 Ministry of Agriculture
3
2 Department of Agriculture Extension
3 Ministry of Energy and Mineral Resources
4
4 Power Division
3
5 Bangladesh Power Development Board
6 Ministry of Primary and Mass Education
2
7 Department of Primary Education
8 Bridges Division
2
9 Ministry of Education
5
10 Directorate of Technical Education
11 Roads and Highways
4
12 Railways
13 Ministry of Communication
1
14 Bangladesh Agricultural Development Corporation
15 Department of Secondary and Higher Education
16 Petrobangla
Total
15
9
Academic Qualifications of Respondents
51
Agencies
Total
13
12
6
2
8
1
42
3
13
4
3
12
2
6
2
5
2
4
8
1
1
66
Responses to General Information part of the Q were well provided. All most all the officials excepting the technical ones such as
engineering are post graduate degree holders. Noted degrees include P.hD., M.Phil, M.S, M A. M.Sc and B.Sc etc. Post graduate
degree except in the case of engineers is the basic qualification requirement for entry into Economic Cadre through Public Services
Recruitment System. Majority of the officials underwent various training courses including compulsory Basic Courses in the PATC
and Planning and Development Academy at home and abroad. Despite these initial qualifications and on-the-job and formal training,
many officers still do not have any specific professional training required for capacity development.
Training Facilities
Availability of training facilities varies greatly by ministries, divisions and departments/ agencies whereas requirement is common in
all the PWs/PCs. Scope for actual use of training facilities depend largely on the mindset of the controlling officers who belong to
various cadres. Stream-lining of training policy and Programme to suit the needs of officials of PWs/PCs as identified in the
Questionnaire is absent in the development budget preparation and management system.
Training Needs
100% of the respondents belonging to the 16 LMs, Divisions and Departments/ Agencies Planning Wing/Cells opted for training in
different items of 3 identified broad topics/Programmes. These include the following:
A. Preparation of Strategic Business Planning (PSBP),
B. Project Preparation and Appraisal (PP&A) and
C. Project Monitoring & Evaluation (PM&E).
Very few officials expressed their desire for training in technical skills (TS) in computer. Overwhelming likings for training on PSBP,
PP&A and PM&E sub-topics is driven by their involvement in the PW/PC in processing and preparation of development budget
including ADP, RADP, MBF/ MTBF etc.
Duration of training varies from one half day to 10 days. Option for short duration for training is prompted by their heavy
engagements in the budget processing, preparation, monitoring, policy issues etc Priority requirement appears to be less attended.
Commonality of functions and responsibilities of officials whichever ministries, divisions and department/agencies they belong
52
accounts for less attention. Yet there are few exceptions providing priority. One respondent demanded training on Public Procurement
Act, Techniques of Poverty and Social Impact Assessment and Land Acquisition, Re-settlement and Environment.
Further strengthening of understanding and coordination between development and non-development functionaries is sine qua non for
processing and preparation of DB/MBF/MTBF following the topics-guidelines in the Q- PSB&P, PP&A, PP&E and TS. There is no
scope for delay in processing and preparation of Development and Non-Development budgets on this account. Strong institutional link
is required to ensure availability of support papers, for example copy of BC-1 or any other specific directive from relevant authority.
Development Project Proforma (DPP) is instrument for submission of investment proposal in the public sector. PSB&P, PP&A
&PM&E are undertaken on the basis of data & information contained in the DPP. Total cost, phasing of cost over life time of project,
implementation period etc are some main items in DPP. Conceptually, DPP cost phasing should be matched with annual allocation of
fund thorough ADP. In practice, truth is far off. In fact, there is hardly any link paving way to creation of indiscipline in financial
management system. There is scope for looking into this for sake of planning and financial discipline.
Major Observations and Recommendations
Training needs survey in the pilot LMs/ Divisions/ Agencies indicate that the officers working in the planning cells need extensive
training on the methodology and practical examples of the Strategic Business Planning, Project preparation and appraisal, and
monitoring and evaluation of projects. For these works, consultants will prepare detailed guidelines and manuals, and appropriate
training course materials.
53
6. Major Recommendations and Future Action Plan

A. Issues
With the introduction of the Medium Term Budget Framework (MTBF) system since FY 2005-2006 as a part of the reform process
in the financial management system in Bangladesh, significant progress has been made to link planning with budgeting and to
establish a link between budget allocation with the policies and priorities of the Government and between budget allocations with
performance. However, our diagnostic study indicates that the existing links between planning, budgets and results are weak and
need to be strengthened. The capacities of the planning wings/ cells of the LMs/ Divisions/ Agencies also need to be improved for
performing their respective tasks under the ongoing DMTBF Project.
The Ministry Budget Framework (MBF), preparation and approval of projects and the Annual Development Programme are the
important vehicles for linking planning with budgeting. We describe here the major issues relating to these vehicles and propose
measures for their improvement.
6.1 Issues on Ministry Budget Framework (MBF)
6.1.1 MBF is an important vehicle for linking planning with budgeting. Significant progress has been made for preparation of
MBF, which integrates planning with budgeting and establishes links between (1) Medium Term (MT) Strategic
Objectives and Key Activities, (2) Priority Spending Areas and Strategic Objectives, (3) Key Activities and Outputs, and
(4) Projects/Programs/ Operational Units and Key Activities. However, links between planning, budgets and results still
remain weak.
6.1.2 Present MBF is mainly descriptive and qualitative and is not adequately quantitative with analytical framework and
methodological guidelines to act as an effective aid to medium term budgeting. MBF provides medium term estimates
for total developmental and non-developmental expenditures and a list of Projects/ Programs/ Operational Units, but it
does not indicate the methodology for the estimation/ projections of total expenditure.
6.1.3 There are confusions about specified KPIs, inputs and outputs, strategies and objectives.
6.1.4 Although the present MBF for a budgetary agency specifies mission, functions, strategic objectives and key activities,
there is no building block for linking quantitatively medium term planning with medium term budgeting.
54
6.1.5 There is no SWOT (strength, weakness, opportunities, threat) analysis for an agency. Ideally a SWOT analysis should be
made before identifying appropriate strategies.
6.1.6 Although rigorous methods and procedures are adopted and substantial time of the Planning Wings/Cells of the LMs/
Divisions/ Agencies is devoted for the preparation and approval of DPP/RDPP/TPP/RTPP, capital phasing of programs/
projects costs given in DPP/RDPP/ TPP/RTPP are not used for estimation of project costs for forward years.
6.1.7 All these limitations are due to lack of detailed methodological / technical Manuals/ Guidelines on basic concepts,
analytical framework, building blocks and methodology for integrating planning with budgeting.
6.1.8 Although BC-1 provides descriptions of the basic concepts and instructions for the preparation of MBF, it cannot be
taken as a substitute for detailed Manuals/ Guidelines.
6.2 Issues on Public Investment Management (PIM)
6.2.1
Annual Development Programme (ADP) and Revised ADP (RADP) prepared by the PC are two important documents
for linking development planning with budgeting. ADP or RDPP in Bangladesh is equivalent to the Public Investment
Programs (PIP) in other developing countries.
6.2.2
Project Conceptualization, Preparation, Appraisal, Monitoring and Evaluation are different components of an effective
Public Investment Management (PIM) and form an integral part for the preparation of the ADP and RADP.
6.2.3
Consultants made detailed analysis of the methodology, systems and operational procedures for different aspects of
PIM and have given specific suggestions for improvement.
6.2.4
Although there are detailed procedural and operational Manuals and Guidelines for the PIM, there are no detailed
methodological Manuals and Guidelines on project preparation and approval.
6.2.5
Planning Wings of the budgetary agencies have also expressed the need for intensive training on project/ programme
appraisal, review, monitoring and evaluation techniques to enable them to perform professionally and independently.
55
6.3
6.3.1
Issues on the preparation of the Annual Development Programme (ADP)
ADP forms the basis for inclusion of development projects in the budget and preparation of the Development Budget.
Guidelines issued by the PC to the LMs for preparation of ADP and allocation of funds are very brief and need to be
reviewed; and detailed Manual and guidelines needs to be prepared.
6.3.2
Programming Division of PC finalizes ADP in April-May and puts up for consideration and approval of NEC. FD has
to convert ADP into Development Budget, and reclassify total expenditure as capital and revenue expenditure. Budget
is presented sometime in the first half of June. Consequently FD faces time constraints to perform assigned duties.
6.3.3
ADP provides project/ program wise expenditure estimates for investment projects, technical assistance projects and
Japan Debt Cancellation Fund projects. ADP also makes block allocations for unapproved projects, and provides a list
of unapproved new projects. Subsequently, a Revised ADP is prepared for investment projects, technical assistance
projects and JDCF projects. Revised ADP includes only approved projects/ programs.
6.3.4
ADP Formats require allocated expenditure (decomposed into capital and revenue) for the current year (2010-2011)
and the forthcoming budget year (2011-2012) for all projects. But, such information is not provided for 4 forward
years. Therefore, ADP information is not sufficient to prepare MTB.
6.3.5
Although rigorous procedures and methodology are used for preparation and approval of DPP/APP, multi-year capital
phasing as mentioned in these documents is not used for budgeting of project-wise capital expenditure for the budget
year and for MTBF. As a result, most of the Agencies experience that that the forward budgetary estimates, as indicated
in the MTBF, turn out to be unrealistic even before the current budget year is over.
6.3.6
The planning wings of the LMs/ Divisions/ Agencies have also indicated that they need training for the preparation of
the SBPs, and also for effective public investment appraisal, management, monitoring and evaluation.
6.3.7
ADP classification into sectors/ sub-sectors is not the same as the FD sector classifications. Lack of uniformity for
sector/ sub-sector classifications creates problems for effective monitoring and evaluation of outputs by sectors and
sub-sectors. These classifications need to be aligned with each other for effective integration of development and nondevelopment budgets.
56
B. Proposals
6.4 Suggestions for improvement of preparation of MBF
6.4.1
There is a need to prepare detailed Guidelines/ Manuals with clear definitions and practical examples of basic concepts,
analytical framework, building blocks, methodology and data base for preparation of MBF.
6.4.2
There is need to add two sections in the MBF. These include a Strength, Weakness, Opportunities and Threats (SWOT)
analysis of the LM/Division and an assessment of the current MBF for preparation of MBF for the budget year. For
these tasks necessary guidelines may be prepared for a SWOT analysis and development of a Performance Assessment
Rating Tool (PART).
6.4.3
In addition, international best practices indicate that the preparation of a Medium Term Strategic Business Plan
(MTSBP) for LMs is a pre-requisite for the preparation of an effective MTBF. MTSBP is a combination of a strategic
plan and a clear, realistic, time-bound, costed Action Plan.
6.4.4
To start with MTSBP may be prepared jointly by the Consultants and the LM Planning Wings in consultation with the
FD for selected pilot LMs. Subsequently, once the methodology is finalized, it can be rolled over to other LMs.
6.4.5
As per international best practices the BC-1 may also provide Medium Term Macroeconomic and Fiscal framework,
which form the basis for determination of ministry level ceilings on expenditure.
6.4.6
MBF may also indicate multi-year projections of development and non-development, capital and current expenditures
for each project/ program/ operational unit.
6.5 Suggestions for Improving Public Investment Management (PIM)
6.5.1
Existing Manuals/ Guidelines/ Formats on methodologies for project preparation, project approval, monitoring and
evaluation need to be examined, reviewed and revised, if necessary.
6.5.2
Systems and procedures for project appraisal and approvals may be reviewed, and decentralization of financial limits on
project size and procedures for project approval at different levels (starting with the Agency/ Division/ DPEC/LM and
going up to the PEC/ ECNEC/ NEC) need to be examined and reviewed for efficient PIM;
57
6.5.3 Planning Wings of the budgetary agencies need to be given intensive training for project preparation, project appraisal,
project monitoring and evaluation and performance based budgeting.
6.5.4 Existing Guidelines of the PC on the Public Investment Management (PIM) need to be reviewed and revised.
6.6 Suggestions for improving the preparation of the Annual Development Programme (ADP)
6.6.1 We need to prepare detailed Guidelines and Manual for preparation of ADP and sectoral allocation of funds.
6.6.2 Timing of ADP preparation and development budget needs to be synchronized with the preparation of non-development
Budget and total budget.
6.6.3 As in the case of non-development budget, we need project-wise information for capital and revenue expenditure under
ADP for budget year and 4 forward years.
6.6.4 ADP classification into sectors/ sub-sectors and the FD sector classifications need to be aligned with each other for
effective integration of sector-wise development and non-development budgets and reclassification of sectoral total
expenditure under capital and current expenditure.
6.6.5
6.6.6
6.6.7
There are too many projects under ADP/RADP which creates problems for effective monitoring and evaluation. It is
desirable to adopt the concept of Programme Budgeting and to place all projects with same objectives under one
Programme umbrella with well defined planning, implementation and output/outcome targets.
For effective MTBF for the development budget prepared on the basis of ADP, it is desirable to provide information
of project cost for the budget year and for four forward years, as is done with the non-development expenditure.
It is also advisable to provide major line items (such as Compensation of Employees, Use of Goods and Services,
Consumption of Fixed Capital, Interest, Subsidies and Social Benefits, Interest Payments, Other Expenses, Acquisition
of Nonfinancial Assets) under development budget for making economic classification of development expenditure.
58
6.7 Sectoral Planning Models

6.7.1
It is desirable that the Planning Commission in association with the respective LMs and outside experts may develop
sectoral planning models for preparation of perspective planning and formulation of strategic policies for vital sectors
such as transport and energy. In this respect, lessons can be learnt from similar developing countries.
6.7.2
PC may have to take leading role to build up, test and calibrate sectoral policy planning models. However, such studies
and sectoral modeling works fall outside the scope of the ongoing DMTBF Project.
6.8 Sectoral Policy Papers
6.8.1
Many of the Ministries such as Agriculture, Education, Land Transport, and Energy have sectoral policy papers. PC
may have to take leading role to guide other LMs/Divisions/ Agencies for preparation of Sectoral Policy Papers.
However, preparation of sectoral policy papers falls outside the purview of the present DMTBF Project.
6.9.1
Consolidation of multiple projects with similar strategic objectives may be considered for better implementation and
coordination.
6.9.2
Planning Wing/Cells need to be strengthened in terms of manpower, skill and provisions of ICT. They need to be
manned by technical and professional cadre and be trained in all aspects relating to project preparation, appraisal and
Monitoring and Evaluation (M&E0.
6.11 Result-Based Evaluation
6.10.1 Post project evaluation/ Result-based evaluation is different from the terminal project implementation and evaluation
report prepared by IMED, which basically examines the financial compliance i.e. comparing actual project costs with
the budgeted project costs to determine time and cost overruns. But, result-based evaluation compares actual outputs
with targeted outputs to evaluate efficiency of a project, and compares actual outcomes with targeted outcomes to
evaluate effectiveness of a project.
59
Recommendations:
(a) GED in the PC in collaboration with the IMED may take the lead responsibility to institutionalize result-based M&E system.
(b) The capacities of the GED, IMED, PWs in LMs/Agencies will need to be strengthened with better staffing, technology and
training.
(c) Good practice results-based M&E from international experiences from similar countries need to be studied and adapted.
(d) The capacity of BBS will be further strengthened to generate required data for M&E. This could entail special-purpose
surveys.
(e) Strong results-based M&E will require collaboration with the LMs, research institutions, and civil society.
(f) ICT needs to be improved and workshops need to be organized for wider dissemination of M&E results.
(g) Detailed guidelines and manuals need to be prepared before initiating pilot studies.
6.11 Training Needs

All the respondents belonging to the Planning Wing/Cells of 16 LMs/Divisions/Agencies visited by the consultants under the
Focus Group Rapid Survey indicated that they need extensive training on the methodology and practical workshops on all aspects
relating to the following subjects:
A. Preparation of Strategic Business Planning (PSBP),
B. Project Preparation and Appraisal (PP&A) and
C. Project Monitoring & Evaluation (PM&E).
6.11.1 Planning Wings/Cells of the LM/divisions/Agencies need to be given desired training on all aspects relating to the
Public Investment Management. These include project conceptualization, project design, feasibility studies, detailed project
appraisal reports, economic/ financial cost-benefit analysis and environmental impact analysis.
6.11.2 Decentralization of financial limits on project size and procedures for project approval at different levels (starting with
the Agency/ Division / DPEC/LM and going up to the PEC/ ECNEC/ NEC) need to be examined and reviewed to reduce time
taken for project appraisal and to reduce project costs due to time overruns.
60
7. Tentative Future Work Plan Matrix for C3.4 and C4

Terms of Reference
1.
Undertake a detailed Diagnostic

review of Planning Wing key
processes and their capacity
development needs (based on a
sample approach and methodology
developed by C3 Advisor).
6. Improving capacities for better

sector-specific Programme design,
project preparation, and monitoring
by line ministries (LMs).
Activity
1.1
To prepare background paper on
scope and objectives, methodology,
sample design and techniques
1.2
To prepare Questionnaire for
Business Process Review (BPR)
1.3
To prepare questionnaire on
Training Needs Assessment (TNA)
1.4 To conduct Rapid Focus Group
Surveys on BPR and TNA in selected
LMs / Divisions/ Agencies10
1.5
To prepared detailed Report on
Diagnostic Study and to prepare Future
Work Plan
2.1
To review existing guidelines and
Proforma for project design, preparation,
and monitoring of projects
2.2
To prepare detailed Guidelines
and Manuals on project design,
feasibility study, techno-economicfinancial-environmental evaluation, and
monitoring and review of project
implementation
10
Jan-Mar
2011
Completed
Apr-June
2011
Jul-June
2011-12
Jul-June
2012-13
Jul-June
2013-14
Review &
update of
Manuals
Review
& update
of
Manuals
Completed
Completed
Conducted
Draft
Report
submitted
This is the
Final Report.
To initiate
spadework
Critical
Review
To initiate
spadework
Preparation
of detailed
Guidelines
& Manuals
These LMs/Divisions/Agencies include (1) Ministry of Agriculture, Department of Agricultural Extension (DAE), Bangladesh Agricultural Development
Corporation (BADC); (2) Ministry of Education, Directorate of Secondary and Higher Secondary Education (DSHE), Department of Technical Education, (3)
Ministry of Primary and Mass Education, Directorate of Primary Education, (4) Ministry of Power, Energy & Mineral Resources; Power Division, Bangladesh
Power Development Board (BPDB), Energy and Minerals Division, and Bangladesh Oil, Gas and Mineral Corporation (Petrobangla); (5) Ministry of
Communications, Roads and Railways Division, Bangladesh Railways, Bridges Division.
61
Terms of Reference
3.1
Strengthening Planning
Wing/ Cells11 in LMs where they
exist to support resource allocation
decision making process in
achieving policy objectives.
3.2
Strengthening Planning
Wing/ Cells capacity in medium
term strategic planning and
determination of intra-sectoral policy
priorities.
3.3
Improving procedures for
determination and management of
sectoral capital investments within
LMs.
3.4
To prepare Sectoral Medium
Term Strategic Business Plan (SBP)
Terms of Reference
Activities
Jan-Mar
2011
2.3
To conduct training and
workshops (TR/WS) for
3.1
To specify vision/ mission/
core values/ major functions/goals/
priorities/ clients
Apr-June
2011
Preparation
of Outline
Review
information
available
with
budgetary
Agencies
To prepare
guidelines
3.2
To conduct SWOT (strengths/
weakness/ opportunities/ threat)
analysis
3.3
To specify strategic objectives,
policies, key objectives in line with
sectoral policy documents, perspective
plan/ master plan, Sixth Five Year
Plan, NSAPR, MDG targets etc.
3.4
To identify projects for 5-year
3.5 To specify benchmarks for
resource estimation and allocation
under different Programmes/ projects
3.6 To prepare Costed Medium
Term Operational / Action plan
On the basis
of data
available
with LM/
Agencies
3.7
To prepare complete document
for medium term strategic business
plan (SBP) after combining strategic
plan and action plan
Activities
To prepare
guidelines
11
To prepare
guidelines
To prepare
guidelines
Jan-Mar
Apr-June
Jul-June
2011-12
Jul-June
2012-13
Jul-June
2013-14
TR/WS will be organized in consultation with

Component C9
To provide
formal and onthe job
training
To provide
operational
training and
prepare
strategic plan
Roll over to
other
agencies
Roll over to
other
agencies
Roll over to
other
agencies
To provide
operational
training
To provide
operational
training
To provide
operational
training
Roll over to
other
agencies
To provide
operational
training
To provide
operational
training
Roll over to
other
agencies
Roll over to
other
agencies
Roll over to
other
agencies
Jul-June
Jul-June
Jul-June
Roll over to
other
agencies
In the initial six months, Dr Tarun to focus capacity development activities within the Ministries of Agriculture, Education, Primary & Mass Education, Power,
Energy & Mineral Resources, and Roads and Railways Division and Bridges Division.
62
2011
4.
Improve linkages between
sectoral planning and sectoral
budgeting within the context of the
MTBF process.
4.1
Alignment of processes,
procedures and time schedules for
preparation of development and nondevelopment budgets in the MTBF
process
4.2
ADP/ Development project
cost need to be given for four forward
years in addition to budget years.
4.3 Major line items need to be
given for Development Budget for
each year.
4.4
As in the case of preparation of
non-development budget, a definite
time schedule need to be prepared for
the preparation of ADP and
Development Budget by the PC
5.
In collaboration with the
TE(s) assigned to MTBF reform,
assist in developing Medium Term
SBPs for a select number of LMs
5.1 As described under (3) above
63
2011
2011-12
May be
decided
jointly by FD
and PD at the
beginning of
the budget
cycle
ADP
Proforma and
project/
program wise
capital
phasing need
to be prepared
on the basis of
DPP/ RDPP/
TPP/ RTPP
Preparation of
Time
Schedule and
detailed
Budget
Circulars for
ADP and
Development
Budget jointly
by the FD and
PC
As described
under (3)
above
2012-13
May be
decided
jointly by
FD & PD at
the
beginning of
the budget
cycle
ADP
Proforma
need to be
revised &
implemented
on the basis
of DPP/
RDPP/ TPP/
RTPP
2013-14
May be
decided
jointly by FD
& PD at the
beginning of
the budget
cycle
Preparation
of Time
Schedule and
detailed
Budget
Circulars for
ADP and
Development
Budget
jointly by the
FD and PC
As described
under (3)
above
Preparation
of Time
Schedule and
detailed
Budget
Circulars for
ADP and
Development
Budget
jointly by the
FD and PC
As described
under (3)
above
ADP
Proforma
need to be
revised &
implemented
on the basis
of DPP/
RDPP/ TPP/
RTPP
Terms of Reference
Activities
Building capacities for

monitoring and evaluating (M&E)
the implementation of capital
investment by the LMs/ Divisions/
Agencies (as opposed to the M&E of
ADP Project Implementation by the
IMED), i.e. to monitor and evaluate
how the Programmes/ projects
contribute to the achievement of
sectoral policy objectives, priorities
and outcomes
6.1
This is the result-based M&E
of the impact of the Programmes/
projects, as described in the World
Bank Handbook on Result-Based
Monitoring and Evaluation System
with a 10-step model.
6.2
We have recommended the
following activities:
(a) Setting up a specialized unit within
the PC/ GED to conduct these
activities.
(b) LM/ Agencies Planning Cells need
necessary training to collect basic
data to support the specialized unit
in the GED/PC.
(c) Capacities of the GED, IMED,
PWs in LMs/Agencies need to be
strengthened with better staffing,
technology and training.
(d) Study of good practice resultsbased M&E from international
experiences from similar countries;
(e) Strengthening the capacity of BBS
to conduct special surveys and to
generate required data for M&E.
(f) Strong results-based M&E will
require collaboration with the LMs,
research institutes & civil societies.
(g) ICT needs to be improved and
workshops to be organized for
wider dissemination of results.
(h) Preparation of detailed guidelines
and manuals for training.
6.
Jan-Mar
2011
64
Apr-June
2011
This activity
cannot be
executed
without full
cooperation
and
participation
by the PC
and IMED.
Jul-June
2011-12
GED in the
PC in
collaboration
with the
IMED may
have to take
the lead
responsibility
to
institutionalize
result-based
M&E system.
The
consultants
can only help
to prepare
manuals and
guidelines and
to provide
necessary
training.
Jul-June
2012-13
Jul-June
2013-14
Terms of Reference
Activities
7.1
Assist in formulating sector
policy frameworks that support
prioritisation within the sectors to
achieve the countrys long term
economic development objectives
as mandated by the national plan,
especially for accelerated economic
growth and poverty reduction.
7.2
Capacity building and assist
to monitor and evaluate outputs and
outcomes of sectoral projects and
Programmes.
7.3
Review/ improve
institutional set-up and procedures
for managing sectoral investments /
projects / Programmes.
7.4
Review and improve
institutional systems and
responsibilities of different
organisations for monitoring &
evaluation.
8
Capacity building of
LM/Agency PWs for preparation of
SBPs, all aspects of project
preparation, appraisal and M&E of
project implementation.
7.1 To conduct detailed diagnostic

study for business process review of
the IMED and the GED, Programming
Division, Planning Division, Sectoral
Divisions of the Planning Question.
8.1
To prepare training
schedules, training outlines, budget
and identity resource persons
8.2
To prepare training materials
8.3
To conduct training and
workshops (TR/WS) for
65
Jan-Mar
2011
Background
paper and
detailed
Questionnaire
has been
prepared.
Apr-June
2011
This activity
cannot be
executed
without full
cooperation
and
participation
by the PC
and IMED.
Jul-June
2011-12
GED in the
PC in
collaboration
with the
IMED may
have to take
the lead
responsibility
to
institutionalize
result-based
M&E system.
Consultants
can only help
to prepare
manuals and
guidelines and
to provide
necessary
training.
Jul-June
2012-13
Jul-June
2013-14
To initiate
spadework
Preparation of
detailed
Training
Materials
Review &
update of
Training
Manuals
Review &
update of
Training
Manuals
Exact plan to
be decided in
consultation
with C9
TR/WS be
conducted in
association
with C9
TR/WS be
conducted in
association
with C9
TR/WS be
conducted in
association
with C9
Selected References
Brendon Goudry (2011) C3-Diagnostic Methodology, February 2011, DMTBF Project.
Das, Tarun (2011) Background Note and Questionnaire for Diagnostic Assessment of Line Ministries Capacity for Planning, Project Preparation,
Appraisal, Monitoring and Evaluation And Integrating Planning with Budgeting and MTBF, Feb 2011, DMTBF Project.
Das, Tarun (2007a) Preparation of Strategic Business Plans- Structural Framework and Guidelines to Line Ministries, pp.1-74, ADB Capacity
Building Project on Governance Reforms, MOF, Mongolia, Sep 2007.
________(2007b) Interlinkages between UN MDGs, National Development Plans and Poverty Reduction Growth Strategy - Selected Country
Experiences from ESCAP, Part-1, pp.1-84, Part-2, pp.1-78, ESCAP, United Nations, Bangkok, Oct 2007.
Das, Tarun (2008a) Manual of Procedures and Guidelines for Medium Term Budgeting and Programme Budgeting for Line Ministries in
Mongolia, pp.1-47, ADB Capacity Building Project on Governance Reforms, MOF, Mongolia, January 2008.
________(2008b) Budget Performance Evaluation- Methodology, Systems and Management, pp.1-53, ADB Capacity Building Project on
Governance Reforms, MOF, Mongolia, Ulaanbaatar, April 2008.
________2008c) Programme Budgeting, Programme Assessment Rating Tool (PART), and Programme Evaluation and Review Technique (PERT),
pp.1-51, ADB Capacity Building Project on Governance Reforms, MOF, Mongolia, May 2008.
Das, Tarun (2010a) Relation between PFM Reforms, Macroeconomic Reforms and Poverty Reduction and Growth Strategy (PRGF)- the AfDB
Institutional Support Project for Economic and Financial Governance (AfDB-ISPEFG), MOF, the Gambia, April 2010.
________(2010b) Relation between Public Financial Management (PFM) Reforms, Macroeconomic Policies, and Monetary and Fiscal Policies,
AfDB-ISPEFG, Ministry of Finance, the Gambia, Banjul, April 2010.
Dorotinsky, Bill (2007) From Line-item to Programme budgeting Opening the 'black-box' of spending, pp.1-3, Fiscal Affairs Department, IMF
Website. www.imf.org
Finance Division, Ministry of Finance (2005) Public Expenditure Management Manual, Government of Bangladesh, Dhaka.
Halan, Steeve (2010) Diagnostic Methodology for Business Process Design and Analysis, prepared by C5, DMTBF Project.
Kim, John M. (2007) edited. From Line-item to Programme Budgeting- Global Lessons and the Korean Case, pp.1-281, Korea Institute of Public
Finance and the World Bank, Seoul, Korea. http://www1.worldbank.org/publicsector/pe/bookProgrammemebudget.pdf
66
Kusek, Jody Zall and Ray C. Rist (2004) Ten Steps to a Result-based Monitoring and Evaluation- A Handbook for Development Practitioners,
pp.1-268, World Bank.
Mercer, John (1993) The Model Performance Budgeting System, John Mercer website www.john-mercer.com
Muktadir Majumder (2011) Current Budget Preparation and Implementation Procedure for Sectoral Projects A Case Study for the Ministry of
Health and Family Welfare (MOHFW), DMTBF Project.
Office of Management and Budget (2007) Programme Assessment Rating Tool Guidance No.2007-02, vii+pp.1-82, Executive Office of the
President, United States of America, Washington D.C. 20503, January 29, 2007. http://www.whitehouse.gov/omb
Paniec, Bill (2011) Discussion Paper on Economic and Functional Classifications of Budget Receipts and Expenditure.
Quang, Paulette (2011) Diagnostic Study Report prepared for C1.2, DMTBF Project. And PPP on MTBF in Bangladesh- Summary of Key
Diagnostic Findings on Budget Planning and Preparation, Diagnostic Study Report prepared for C1.2, DMTBF Project.
Rajaram, A.; T.M. Le, N. Biletska, & J. Brumby (2010) A Diagnostic Framework For Assessing Public Investment Management, World Bank
Policy Research Working Paper No.WPS5397, Washington D.C.
Shahjahan. S.M. (2010) PC and the LM Planning Wings/Cells Diagnostic Study of planning and development budget.
Smith, Jonathan (2011) Templates for Training Needs Assessment, DMTBF Project.
Tareque, Mahammed (2006) Linking Budgeting and Planning- Bangladesh Experience, Ministry of Finance, Bangladesh and Asia Pacific
Community of Practice on Managing for Development Results, July 2006, www.cop-mfdr.adb.org
67
Officials Documents and Reports Consulted:

1
Ministry of Finance, Government of Bangladesh, Website www.mof.gov.bd

1.1 Budget Circular-1 for the preparation of 2011-12 Budget, FD,
1.2 Budget Circular-2 for the preparation of 2011-12 Budget, FD,
1.3 Budget Speech of the Honorable Finance Minister for the Year 2010-11
1.4 Budget Speech of the Honorable Finance Minister for the Year 2011-12
1.5 Medium Term Budgetary Framework (MTBF) for 2010-11 to 2012-13, Finance Division.
1.6 Concept Paper on Unified Budget and District Budget
1.7 Guidelines for Preparation, Appraisal, Monitoring and Evaluation of Non-Developmental Budget Proposals, July 2010
1.8 Codes for Chart of Accounts
1.9 Classification Chart for Economic Codes, Financial System Management Unit (FSMU), CGA.
1.10
Karmasuchi Revised 2010
1.11
Towards Revamping Power and Energy Sector: A Road Map, June 2010
1.12
Public Expenditure Management Manual 2006
Ministry of Agriculture, Government of Bangladesh, Website www.moa.gov.bd

2.1 Organogram (Organizational Chart)
2.2 Citizens Charter
2.3 Selected DPP
Ministry of Communications, Government of Bangladesh, Website www.moc.gov.bd

3.1 Organogram
3.2 National Land Transport Policy
3.3 Management Manual of Ministry of Communications
Ministry of Education, Government of Bangladesh, Website www.moedu.gov.bd

4.1 Organogram
4.2 Education Policy 2010
4.3 Strategic Plan, and Guidelines for Education
4.4 Education management and structure
4.5 Monthly Progress Report July 2010
68
Ministry of Primary and Mass Education, Government of Bangladesh, Website www.mopme.gov.bd

5.1 Organogram
5.2 Education for All (EFA)
5.3 National Plan of Action (APA II) (2003-20150
5.4 Non-Formal Education Policy
Planning Commission, Government of Bangladesh, Website www.plancomm.gov.bd

6.1 Organogram
6.3 National Strategy for Accelerated Poverty Reduction II (FY 2009-2011) (NSAPR-II)
6.4 MDG Needs Assessment and Costing 2009-2015
6.5 Project Preparation, Processing, Approval and Revision Procedures for Public Sector, 2008
6.6 Survival and Resettlement Policy Framework
6.7 National Agriculture Policy 2004
6.8 Outline Perspective Plan of Bangladesh 2010-2012, Making Vision 2021 A Reality, pp.1-98.
6.9 Annual development Programme (ADP) 2010-2011, June 2010
6.10 Revised Annual development Programme (RADP), 2010-2011
6.11 Millennium Development Goals (MDG) Progress Report 2009
Implementation Monitoring Evaluation Division, Government of Bangladesh, Website www.imed.gov.bd

7.1 Strategic plan
7.3 IMED Formats for Monitoring and Evaluation
7.4 Reports- Progress Reports, Top Ten Ministries, Other Ministries
7.5 Strengthening result Based Monitoring Report
Energy and Mineral Resources Division, Government of Bangladesh, Website www.emrd.gov.bd

8.1 Organogram
8.2 Vision and Mission
8.3 Functions and Functional Structures
8.4 Planning and Development Activities
69
Power Division, Government of Bangladesh, Website www.powerdivision.gov.bd

9.1 Organogram
9.2 Upgraded 3-year Road Map (2008-2010)
10 Bangladesh Railways, Government of Bangladesh, Website www.railway.gov.bd

10.1 Organogram
10.3 Annual Report (2010-11) of Bangladesh Railways.
10.4 Selected DPP of the Bangladesh Railways.
10.5 Roads and Railways Digital Bangladesh
11 Bangladesh Roads Website www.rhd.gov.bd
12 Bangladesh Agricultural Development Corporation www.badc.gov.bd
12.2 Vision and mission
12.3 Organogram
13 Petrobangla, Bangladesh Oil, Gas and Mineral Corporation, www.petrobangla.org.bd
13.1 National Energy Policy
13.2 Draft Coal Policy
13.3 Bangladesh Gas Act 2010
13.4 Monthly Information Report (MIS) December 2010
13.5 Annual Report 2008
14 National Web Portal of Bangladesh, www.bangladesh.gov.bd
14.1
Government Vision 201
14.2
Citizens services
14.3
Ministries and Divisions
70
71
72
73
74
Organogram of Ministry of Primary and Mass Education
75
Organogram of the Ministry of Communications
76
Organogram of Energy and Mineral Resource Division
77
Organogram of the Power Division
78
Power Division- Number of Officers
79
Bangladesh Railways Organizational Chart
80
Organogram of the Bangladesh Agricultural Development Corporation (BADC)

Note: Administration Wing consists of: (1) Planning Division along with the following divisions/ cells:
(2) Monitoring Division
(3) Purchase Division
(4) Inquiry Division
(5) Establishment Division
(6) Recruitment and Welfare Division
(7) Organization and Management Division
(8) Common Service Division
(9) Public Relations Division
(10) Medical Cell
(11) Law Division
(12) Co-ordination Division.
81
Annex-1
Check Lists for Diagnostic Survey and Expected Outputs
The purpose of this study is to make a Diagnostic review of Planning Wing/ Cell key processes and their capacity development needs
for planning, establishing linkages between sectoral planning and sectoral budgeting within the context of the MTBF process, and for
all aspects relating to project conceptualization, feasibility study, preparation of detailed project report, project appraisal, approval,
implementation, monitoring and evaluation. We would basically focus on the following two aspects for pilot LMs and agencies;
(1) Business Process Analysis for activities of the Planning Cell/Wing, their interlinkages with Annual budgeting, MTBF, Medium
Term Strategic Business Plan, Master plan, Accelerated Poverty Reduction Programme, attainment of Millennium
Development Goals, the Sixth Five Year Plan and the Perspective Plan; and the constraints, if any, for better sector-specific
Programme design, project preparation, ex-ante project appraisal, monitoring and evaluation of the project implementation,
and ex-post project performance evaluation.
(2) Assessment of immediate and Medium Term Training Needs for the officers of the Planning Cell and related Cells in LMs and
Agencies.
Initially during Q2 of the Project (i.e. Jan-Mar 2011) diagnostic studies will be conducted in the following LMs/Divisions/Agencies:
(1) Ministry of Agriculture,
(2) Ministry of Education,
(3) Ministry of Primary and Mass Education,
(4)Ministry of Power, Energy & Mineral Resources
Power Division; and Energy and Minerals Division
(5) Ministry of Communications
Roads and Railways Division; and Bridges Division.
Expected Outputs
1. Business process analysis and preparation of flowchart, brief discussions of activities and constraints, future work-plan;
2. Training Needs Assessment (TNA) and work-plan for training during current year
82
1. Indicate channels and systems for planning and preparation, project appraisal, and approval of projects for both within and
outside the ministry, and the interlinkages with annual budgeting and MTBF..
2. Indicate channels and systems for project monitoring and evaluation for both within and outside the ministry
3. Please indicate strength of staff involved for Planning and Project Appraisal, M&E. Do you consider that your Planning Wing/
Cell has adequate staff and relevant expertise?
4. Is there any succession plan for the officers holding key positions? Has there been any problem with the turnover ratio of the
officials dealing with essential activities?
5. Has your LM introduced MTBF in preparing the Budget? What are the constraints faced by you for this task and for
integrating strategic planning with budgeting and MTBF.
6. Does your LM have the following documents for medium term planning? If yes, please provide a copy of the document.
(a) Strategic Business Plan,
(b) Master Plan,
(c) Vision Document.
7. Capacity Building Requirements for Planning and Project Appraisal, M&E
(a) What are the overall skills of civil servants in each of the following five areas: please rate each item on a scale of 1 to 5 where
1 = Very Poor; 2 =Poor; 3 = Adequate; 4 = Good; 5 = Excellent. Tick () the appropriate cell):
Items
1
2
3
4
5
i. Preparation of SBP
ii. Preparation of MTBF
iii. Project preparation and appraisal
iv. M&E of Project implementation
v. M&E of Project Outcome
83
(b) Was there any capacity building/ training Programme in the following areas during the past two years (2008-2009 and 20092010) for any level of government officials for your LM/Budgetary Agency? Who provided this help and under what
framework or reform process?
Items
Yes/No No. of officials
Donor
Name of Programme
trained
i. Preparation of SBP
ii. Preparation of MTBF
iii. Project preparation and appraisal
iv. M&E of Project implementation
v. M&E of Project Outcome
8. Project Preparation and Appraisal
(a) Describe in details the systems for preparation of the Development Project Proforma/ Proposal (DPP). Is it based on any
Detailed Project Report (DPR) indicating techno-economic-financial-environmental feasibility and sustainability study? If yes, who
prepares the DPR?
(b) Describe in details the systems for preparation of the Technical Assistance Project Proforma/ Proposal (TPP). Is it based on any
Detailed Project Report (DPR) indicating techno-economic-financial-environmental feasibility and sustainability study? If yes, who
prepares the DPR?
(c) Are there detailed guidelines and manuals for techno-economic-financial-environmental appraisal of projects? Do these need
any improvements?
(d) Please provide a sample copy of DPP/ RDPP and TPP/ RTPP.
(e) Do you feel that the Planning Commission approves a project within time? Please indicate the average time taken for approval.
What measures do you propose for reducing the time gap for approval of a project?
84
9. Efficiency of Planning Cell/ Project M&E Cell or related Unit

Efficiency
(a)
(a)
(b)
(c)
(d)
(e)
(f)
(a)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
Tick () appropriate options- You may tick multiple options

Planning Cell
Project M&E
Has sufficient manpower

Has appropriate technical skill
Has appropriate hardware
Has appropriate software
Uses Management Information system (MIS)
Has Access to internet
Maintains dedicated Website for Public
information
Main constraints
Lack of proper organizational structure
Lack of proper methodology
Lack of desired guidelines
Lack of training and capacity building
Lack of appropriate software
Lack of desired hardware
Lack of legal framework
Limited financial resources
Planning Cell
85
Project M&E
Annex-2
Questionnaire for Training Needs Assessment (TNA) Survey
Questionnaire for Individuals for Planning and Project M&E
General Information
Name and Designation: ___________________________________________
Division/ Ministry: ________________________________________________
Highest degree: __________________________________________________
Brief description of duties: _________________________________________
Main fields of works: (Tick appropriate item): Strategic planning/ Project Preparation and Appraisal/ M&E of Project Implementation/
M&E of Project Outcomes (Impact Study)
Training received during last three years:
Main topics
Place of Training
86
Period
(No. of days)
Survey
1.
The Table on next page list presents topics related specifically to strategic planning, ex-ante project appraisal, monitoring and
evaluation (M&E) of project implementation and ex-post project M&E.
2.
Please tick YES if you think that your job performance could improve if you took training in the topic during the next 12
months. Tick No if you think that you have the appropriate expertise and experiences in the field and your job performance would not
be improved by taking training in the topic. For the column priority, rank the item as 1, 2 and 3 where 1 stands for first priority, 2
second priority and 3 third priority for your job performance improvement.
3.
In the far right column (duration of training), indicate the length of training you think would be ideal. Indicate number of
days. Range would be from up to 5 days.
Do you need any training in the following TOPICS during the next 12 months?
Preparation of Strategic Business Planning:

A.
Basic concepts on strategic planning- Vision, Mission, Core Values,
Strategic Objectives, Goals, Targets, Policies, Programmes, Projects,
Inputs, Outputs, Outcomes
B.
Techniques of strategic planning, identification of multi
stakeholders, and implementation
C.
Strength, Weakness, Opportunities and Threats (SWOT) Analysis
D.
Identification and measurement of outputs and outcomes of
projects/ Programmes
E.
Benchmarks setting and Identification and determination of Key
Performance Indicators (KPI) of projects and Programmes
87
YES
NO
PRIORITY
Duration of
training: No.
of days
YES
NO
PRIORITY
Duration of
training: No.
of days
YES
NO
PRIORITY
Duration of
training: No.
of days
F.
Integration of Strategic Business Plans with Annual Budgeting
Framework and MTBF
G.
Linkages between SBP, MDG, Sixth Five Year Plan and sectoral
Master Plan
H.
Preparation of Guidelines and Manual for Strategic Business Plan
(SBP)
I.
Preparation of Guidelines and Manual for Medium Term Budget
Framework
Project Preparation and Appraisal:
1.
Financial Cost-Benefit Analysis and project appraisal techniques
2.
Economic Cost-Benefit Analysis and project appraisal techniques
3.
Social and Environmental Cost-Benefit Analysis and project
appraisal techniques
Project Monitoring and Evaluation:

1.
Monitoring and evaluation techniques for implementation of
projects
2.
Monitoring and evaluation of outcomes of projects (Impact
Analysis)
88
3.
Performance Assessment Rating Tools (PART)
4.
Project Evaluation and Review Technique (PERT)
5.
World Bank 10-Step Model for Project M&E- Diagnostic study,
Choice of outcomes, Setting key performance indicators, Establishment of
performance baselines or benchmarks, Selection of results targets during
the interim period, collection of reliable and quality performance data,
types and timing of evaluation, Preparation of analytical reports,
Dissemination of information and reports, Establishment of credible
supporting systems for sustaining results-based M&E systems
6.
Preparation of guideline and manual on project appraisal, M&E
Technical Skills:
1.
Computer competence in MS-Word, Excel, PPP, Email and Internet
2.
Working knowledge of SPSS, data management and analysis,
statistical methods
3.
Working knowledge of EViews7 and econometric techniques
4.
Econometric modeling for medium term forecasting and simulations
5.
Spreadsheet modeling for consistent macro-economic projections
and analysis
89
YES
NO
PRIORITY
Duration of
training: No. of
days
Annex-3
Record Notes of Discussions with Line Ministries (LM) and Agencies in connection with the
Business Process Review (BPR) and Training Needs Assessment( TNA) of Planning Cells/Cells .
1. Ministry of Agriculture
Venue: Bangladesh Secretariat
Date: 27-02-11
Time: 03 PM
Following officers of the Ministry were present in the meeting:
1. Mr. Naquib bin Mahbub, Joint Chief
2. Dr.Md.Mustafizur Rahman, Deputy Chief
3. Mr.Monzurul Anwar, Deputy Chief
Dr. Tarun Kanti Das, Technical Expert for C3.4 and national consultants Mr. S.M.Shahjahan and Mr. M.A. Muktadir Mazumder from
the DMTBF project participated. Dr.Das explained the objectives of the DMTBF project and purpose of meeting with the Ministrys
Planning Wing/Cell. The following points emerged in the discussions:
At the moment the Ministry of Agriculture does not have any Strategic Plan. There is a Thematic Group for the
Ministry which assist in the preparation of 5 Year Plan and Perspective Plan for the sector.
Overall targets are set by the Ministry in line with broader Government objectives and the Agencies prepare necessary
project/Programme documents i.e. DPP/TPP.
A Project Screening/ Review Committee chaired by the Secretary examine the proposed projects/Programmes in the
Ministry before forwarding these to the Planning Commission for approval.
The Ministry has no authority to approve investment project. However, the Ministry can approve TA Projects up to
Taka 7 crore.
Development budget is prepared by the Planning Wing while non-development budget is the responsibility of the
Administration Wing. These are separate entities. Part -1 of MTBF is prepared by the Pl Proper and effective
coordination between the two streams- the development budget and the non-development budget Wings are yet to be
established.
90
The Planning Wing is considered understaffed compared to the number of development projects /Programmes of the
ADP.
The Planning Wing needs to be strengthened with one Division Chief at the top and required number of increased posts
at the levels below.
Short and long term training are necessary for capacity development of the Planning Wing officers. There is no training
plan in the Ministry for systematic capacity improvement of the officers. The Planning Wing will submit its training
requirements soon.
2. Department Agriculture Extension (DAE)

Venue: Khamar Bari, Farm Gate, Dhaka
Date: 28-02-11
Time: 10AM
Following officers of DAE were present in the meeting:
1. Mr. M.A. Salam, Addl. Director, Planning and Evaluation
2. Mr. Mohd. Harun, Assistant Director (Finance)
Following points were raised by DAE in the meeting:
DPP and TPP are prepared by the DAE.

All aided projects are prepared by the agency as per direction of the Ministry.
The Agency conceptualizes only the GoB funded projects.
The process of preparation of DPP is lengthy and it needs to fill up about 30 columns. The format should be shortened and
simplified.
The DAE assists the Ministry in preparing the vision, mission and strategy in connection with 5 Year Plan, Perspective Plan
and MTBF. However, the priority and vision etc. changes with the change of Government.
BMC does not exist in DAE. Development and non-development budgets are prepared separately and sent to the Ministry.
91
Release of ADP allocation up to 3rd quarter /installment by the Ministry is smooth. However, release of the 4 th quarter by the
Finance Division still faces some problem.
Decentralization of authority to DAE in terms approval of projects and release of funds is necessary for improving
implementation efficiency and performance.
They need training in different areas of project the project cycle for improvement of capacity. Residential training is more
productive in terms uninterrupted attention and commitment.
3. Directorate Secondary and Higher Secondary Education (DSHE)

Venue: Abdul Ghani Road, Dhaka
Date: 01-03-11
Time: 10 AM
The Team met Mr. SM Bashirullah, Assistant Director Planning and noted the following points:
For the first time in the history of Bangladesh an Education Policy has been approved in the Parliament. The draft
Education Policy was widely circulated through mass and electronic media for public opinion.
A National Committee has been formed to implement the Education Policy.
An Action Plan for implementation of the Policy has not yet been drawn up.
The major challenges of implementation are: lack of resources, shortage of manpower, inadequate physical facilities.
The DSHE suffers from lack of skilled manpower. The Director Planning who reports to the Director General is
supported by 1Deputy Director, 2 Assistant Directors and 4 Research Officers.
Appointment of Project Directors (PD) is the prerogative of the Ministry. More often than not right persons are not
appointed as PDs.
Projects are prepared and DPPs and TPPs are formulated by the DSHE as per directives of the Ministry.
Project implementation is monitored by the Ministry and the IMED. Decentralization of monitoring system would
bring about better results.
The DSHE assists the Ministry in preparing the vision, mission and strategy in connection with 5 Year Plan,
Perspective Plan and MTBF.
92
There is no provision/mechanism of post evaluation of project impact either in the Directorate or in the Ministry. IMED
also conducts input monitoring only.
Decentralization of authority in terms approval of projects and release of funds is necessary for improving
implementation efficiency and performance.
They need training in different areas of project the project cycle for improvement of capacity.
4. Ministry of Education
Date: 01-03-11
Time: 2PM
The following officers were met by the Team:
1. Mr. Munirul Haque, Joint Chief
2. Mr. Swapan Kumar Ghosh, Deputy Chief
The Planning Cell expressed the following opinion:
There is shortage of skilled and efficient officers both in the Ministry as well as in the agencies.
Recruitment rules and procedures are not strictly followed for appointment in the agencies leading to selection of improper
and not always right person for the right position.
The time honored practice of project processing that is from the agency to Ministry and then to the Planning Commission for
approval and revision of DPP/TPP is followed by the Ministry.
Development budget is prepared by the Planning Cell and they do not face any problem in preparing the MTBF.
The Ministry does not have any training plan for human resources development. They need training in different areas of the
project cycle for improvement of capacity.
The Ministry emphasizes on the need for stronger inter-ministerial cooperation and coordination for smooth and efficient
implementation of projects.
93
5. Directorate of Primary Education (DPE)

Venue: DPE Bhaban, Mirpur, Dhaka
Date: 02-03-11
Time: 10-30 A M
The following officers of DPE participated in the meeting:
1. Mr. Bablu Kumar Shaha, Deputy Director, Planning
2. Mr.Fazle Siddique Md. Yahya, Deputy Director (P&D)
Discussions:
Dr.Das explained the objectives of the DMTBF project and purpose of meeting with the Line Ministry and the Agencies. He
specifically wanted to learn about the business process of the DPE and its relationship with the Ministry in terms of planning, approval
and implementation of projects including release of funds. He added that assessing the strength of the agencies in terms of number and
skill/quality of the staff members is one of the objectives of the project. The Ministrys Planning Wing/Cell. The following points
emerged in the discussions:
At the moment the Planning Unit of DPE is headed by a Director and has 1 Director, 3 Deputy Directors, 3 Assistant Directors
and 4 Education Officers.
Existing manpower is not enough. DPE has submitted proposal for increasing manpower to cope with additional workload of
the ensuing PEDP-III Programme.
Fund release is straight forward now and no problem is faced up to the release of the 3rd quarter.
The traditional practice of project processing is followed by the DPE.
Provision of consultancy for preparation of DPP should be there.
The DPE assists the Ministry in preparing the vision, mission and strategy in connection with 5 Year Plan, Perspective Plan
and MTBF. However, the agency prepares projects at the directive of the Ministry.
BMC does not exist in the Directorate. The Planning Unit prepares development budget.
Training is necessary for up gradation of skill of the staff members.
There is no mechanism for post evaluation of the impact of a project either in the Ministry or in the Directorate.
94
6. Ministry of Primary and Mass Education (MoPME)

Date: 02-03-11
Time: 2 PM
The following Officers were present in the meeting:
1. Mr.Md. Zakir Hossain Akanda, Deputy Chief (Planning)
2. Mr.Imtiaz Ahmed Sr. Assistant Chief
The following points were made by the Planning Cell of MoPME:
The Planning Cell is seriously understaffed. The current work load of the Ministry has increased many times, but the number
of officers and staff remains the same.
The Planning Cell should be strengthened by creating a post of Joint Chief. The Planning Commission should declare and
include the MoPME Planning Cell posts as Economic Cadre Posts.
ADP should be prepared by the Planning Commission. The strength of the Economic Cadre should be increased commensurate
with the increasing workload of the development Ministries.
IMED should be strengthened and expanded up to the district level for ensuring better and effective monitoring.
Training of Officers in the areas of planning, budgeting, cost-benefit analysis, monitoring and evaluation are necessary for
improvement of skill.
7. Power Division, Ministry of Energy and Mineral Resources
Date: 02-03-11
Time: 4PM
The Team met the Joint Chief. The following information was gathered during the discussions:
The Planning Cell is overworked and understaffed. At the moment the Planning Wing consists of Joint Chief-1, Deputy Chiefs2 and Sr. Assistant Chief/Assistant Chiefs-3.
There is a Power Sector Master Plan 2010-2030
95
There is also a Power Sector Road Map in addition to a 3 Year Rolling Plan
All these Plans are prepared by the System Planning Unit of the Bangladesh Power Development Board (BPDB)
The standard procedure for approval and revision of projects is followed by the Energy Division.
MTBF and Development budget are prepared by the Planning Cell.
All works relating to procurement and fund release are performed by the Development (Administration) Branch.
A BMB has been created in the Division, but it is not functional.
They need training for improving skill and efficiency.
8. Ministry of Communications
Date: 03-03-11
Time: 10-30 A M
The Team met Mr. Md. Liakat Ali, Deputy Chief. The points were made by the Deputy Chief:
The Planning Cell is understaffed.
There are 204 projects of the Communications Ministry in the ADP.
Only 4 officers in the Planning Cell- 1 Joint Chief, 2 Deputy Chiefs, and 1 Assistant Chief are now handling this huge number
of projects.
Because of shortage of manpower no proper appraisal of projects at the formulation stage is possible at the Ministry; rather
they pass on the DPPs to the Planning Commission as prepared by the Agencies.
The Planning Cell posts are not declared Economic Cadre posts.
There is no mechanism in the Ministry for post evaluation of completed projects. The Ministry only conducts input monitoring
and that is also mostly limited to projects funded by development budget.
Development budget is prepared by the Planning Cell while revenue budget is the responsibility of the Development Wing.
A 20 Year Road Sector Master Plan is now under preparation in the Ministry.
They need training for improving skill and efficiency, but hardly can afford to spare officers for training because of shortage of
man power.
96
9. Energy Division
Ministry of Energy and Mineral Resources
Date: 03-03-11
The Team met Mr. Abu Yusuf Meah, Deputy Chief and .Sr. Assistant Chief. The following points were made by them in the meeting:
Shortage of manpower in the Planning Cell is the major problem in processing, monitoring and evaluation of development
projects in the Ministry.
Basic works relating to preparation of DPP/TPP are performed by the agencies.
The Ministry in most cases cannot do justice to the documents prepared by the agencies owing to lack of manpower in general
and technical experts in particular.
Lack of incentives in terms of allocation of fellowship and training to Planning Cell officers discourages initiatives.
For preparation of highly complex and big investment projects services of external consultants is necessary.
Training for improvement of skill and efficiency is necessary. The Planning Cell will flag their training needs and send the
questionnaire to the Team soon.
MTBF is prepared by the Planning Cell. There is no effective coordination between the Planning Cell and the Budget Unit of
the Ministry.
Routine review by the Ministry and monitoring of development projects are done by the IMED. There is no mechanism for
post evaluation of completed projects.
10. Bangladesh Agricultural Development Corporation
Venue: BADC Bhaban, MCA, Dhaka
Date: 06-03-11
Time: 2 PM
The Team met Sanaul Haque Chief Planning, BADC. The following information was gathered during the discussions:
At present BADC has 18 ongoing development projects in the ADP
Seven more projects are in the process of approval.
BADC conceptualizes most of the projects themselves, but some projects are formulated as per direction of the Ministry.
BADC has its strategic plan which is incorporated in the Ministrys 6th Five Year Plan
97
ADP is prepared by the Planning Unit of the organization while MTBF is the responsibility of their Finance Division.
The Planning Unit suffers from lack of manpower.
The Planning Unit consists of: I Chief of Planning, 1 Joint Chief, 3 Deputy Chiefs and 3 Assistant Chiefs.
The position of Joint Chief and those of the 3 Assistant Chiefs have been vacant for quite a long period.
A Committee formed by the Government has suggested to raise the staff strength of BADC to 10, 000 from 6,800 existing at
the moment.
BADC does not appoint external consultants for preparation of DPP. The organization has a Monitoring Unit.
They need training of officers in relevant areas for improving skill and efficiency.
11. Bangladesh Railways, Ministry of Communication

Venue: Rail Bhaban, Abdul Ghani Road, Dhaka
Date: 04-03-11
Time: 10 AM
The Team had a meeting with M. Sagar Krishna Chkarabarty, Chief Planning Officer (CPO), Bangladesh Railways. The following
points were mentioned by the CPO:
Total sanctioned staff strength of Bangladesh Railways is 40,000.
The Planning Unit is composed of CPO-1, Addl. CPO-2, Sr. Planning Officer-4, Junior Planning Officer-2 and research
Officer-2. All officers of Bangladesh Railways including those of the Planning Unit are manned by Bangladesh Railway Cadre
Officers.
All basic works relating to project processing and preparation of DPP /TPP are done by the Planning Unit.
Present manpower is not enough to handle the increasing workload of the organization. For example, one Project Director is
responsible for implementation of five projects.
The Guide Line for the preparation of DPP is lengthy and needs to be improved.
The Planning Commission should be manned by Economic Cadre officers at all levels.
Unofficially the agency places their staff to the Ministry and the Planning Commission despite their own constraints of
manpower.
M &E Reports are prepared by the agency and those are sent to IMED by the Ministry.
98
There is no system established in the agency or in the Ministry for post evaluation of completed projects.
The Planning Unit needs training for improvement of skill and efficiency.
Recruitment and promotion of officials are not regular in the Bangladesh Railways.
MTBF Part-1 and the Development Budget of B. Railways are prepared by the Planning Unit.
12. Bangladesh Power Development Board (BPDB)

Venue: WAPDA Bhaban, MCA, Dhaka
Date: 04-03-11
Time: 12 noon.
The following officers were present in the meeting:
1. Engr. Mr.Tomal Chakrabarty, Chief Engineer( Planning and Design)
2. Engr. Mr. Md. Shahjahan Miah, Director
The following points emerged in the discussions:
The Power Sector has a Road Map. The present road map is incorporated in the Vision 2021.
Small projects are processed by BPDB itself.
Feasibility study is necessary for big projects and usually conducted by consultants and funded by donors.
DPP/TPP is prepared by the PDB and submitted to the Planning Commission by the Power Division for approval of ECNEC.
M&E report is prepared by the PDB and sent to the Ministry for transmission to IMED.
MTBF Part-1 is prepared by the BPDB.
Continuing Education and Training are necessary for better performance.
Planning Commission hardly organizes any training for them.
Training is absolutely necessary in the field of financial/economic analysis and monitoring and evaluation, particularly post
evaluation.
There is no recruitment for last two years causing shortage of staff in the feeder posts.
13. Roads and Highways Department (R&HD)
Venue: Sharak Bhaban, (Roads &Highways Bhaban), Dhaka
Date: 07-03-11
99
Time: 3 PM
The Team met the following Officers:
1. Mrs. Asma Akhter Jahan, Executive Engineer
2. Mr. Md. Shafqat Hussain, Sub-Divisional Engineer.
Points raised in the meeting are listed below:
Shortage of manpower in the Planning Unit is a major problem.
There are only 4 officers in the Planning Unit.
Development budget is not need based.
MTBF is prepared by the Planning Unit.
Development budget and Revenue budget are separately prepared by the Planning Unit and the Finance Unit of the Department
and sent to the Ministry.
MTBF projections do not hold good as new commitment of the Government needs to be addressed almost every year.
There is lack of coordination between planning, Programming and budgeting.
Proper appraisals of projects are not always done. Neither there is any mechanism for post evaluation of completed projects.
Training is necessary in all areas of the project cycle.
14. Bangladesh Oil, Gas and Mineral Corporation (PETROBANGLA)
Venue: PETROBANGLA, Karwan Bazar, Dhaka
Date: 09-03-11
Time: 10 AM
The Team met Mr. Md.Shafiqur, Rahman, General Manager Strategic Planning and Resources Mobilization Division. The following
points were made by the General Manager:
The Planning Directorate of Petro-Bangla consists of 3 Divisions viz, 1.Investigation and Studies, 2. Strategic Planning and
Resource Mobilization and 3. Project Planning and Monitoring.
Constrained by shortage of manpower
Very short notice /time are given by Ministry for submitting reports and documents.
100
Selection of officials should be fair and without any bias. Recruitment should be regular.
High frequency of reporting hinders routine work.
Projects are developed by the Companies.
Project proposals are approved by the Petro-Bangla Board.
Ministry should be authorized to approve revision of projects up to 30% cost escalation.
Reappropriation ceiling of the Ministry should also be increased.
Planning Cell of the Ministry should be strengthened.
Gas Sector Master Plan was prepared in 1984.
A Cell should be established in the GED of Planning Commission for conducting post evaluation of completed projects.
The IMED should be strengthened in terms of increased manpower and expansion up to district level.
They need training in project appraisal, monitoring and evaluation.
Budget (both development and revenue) is prepared by the Finance Division of Petrobangla.
101
Annex-4
List of persons met in the Line Ministries (LM) and Agencies
All members of the Team viz., Dr. Tarun Kanti Das, TE, Mr. SM Shahjahan and Mr. Muktadir Mazumder, National Consultants were
present in all the meetings held with the LMs and Agencies.
Sl. No.
Date
Line Ministry/Agency
27-02-2011
Ministry of Agriculture
28-02-2011
28-02-2011
Department of Agricultural
Extension (DAE)
Department of Technical Education
01-03-2011
Directorate of Secondary and Higher

Secondary Education (DSHE)
01-03-2011
02 -03-2011
Directorate of Primary Education
02-03-2011
02-03-2011
Ministry of Primary and Mass

Education
Power Division
Name and Designation of persons met

1 Mr. Naquib bin Mahbub, Joint Chief (Planning)
2 Dr. Md. Mustafizur Rahman, Deputy Chief (Planning)
3 Mr. Monzurul Anwar, Deputy Chief (Planning)
1. Mr. M.A. Salam, Addl. Director, Planning and Evaluation
2. Mr. Mohd. Harun, Assistant Director (Finance)
1. Dr. Sheikh Abu Reza, Assistant Director
2. Md. Shamsum Alam, Chief Scientific officer and Head,
Bangladesh Agricultural Research Institute
1. Mr. S.M. Bashirullah, Assistant Director , Planning
2. Md. Mizanur Rahnan, Assistant Project Director
3. Md. Hemayet Uddia Howladder, Assistant Director
(Planning)
1. Mr. Munirul Haque, Joint Chief
2. Mr. Swapan Kumar Ghosh, Deputy Chief
1. Mr. Bablu Kumar Shaha, Deputy Director, Planning
2. Mr. Fazle Siddique Md. Yahya, Deputy Director (P&D)
3. Md. Khairul Islam, Deputy secretary
1. Mr. Zakir Hossain Akanda, Deputy Chief (Planning)
2. Mr. Imtiaz Ahmed, Senior Assistant Chief
1. Mr. Md. Nazrul Islam, Joint Chief (Planning)
102
03-03-2011
Roads and Railways Division,

Ministry of Communications
Energy Division
1.
Mr. Md. Liakat Ali , Deputy Chief (Planning)
10
03-03-2011
1.
Mr. Abu Yunus Meah, Joint Chief (Planning)
11
06-03-2011
Bangladesh Agricultural
Development Corporation (BADC)
1. Mr. Sanaul Haque, Chief (Planning )

2. Bangladesh Agricultural Development Corporation
(BADC)
1. Mr.
.
Deputy Chief (Planning)
1. Engr. S.K. Chkarabarty, Chief Planning Officer
12
06-03-11
13
07-03-11
14
07-03-11
Bangladesh Power Development

Board (BPDB)
15
07-03-11
16
08-03-11
Roads and High ways Department

(R&HD)
Bangladesh Oil, Gas and Mineral
Corporation (Petrobangla)
17
09-03-11
Bridges Division, Ministry of

Communications
Bangladesh Railway
Bangladesh Oil, Gas and Mineral

Corporation (Petrobangla)
1. Engr. Tamal Chkarabarty, Chief Engineer, Planning and

Design
2. Engr.Md.ShahjahanMiah, Director, Project Planning
1. Mrs. Asma Akhter Jahan, Executive Engineer
1. Mohammed Shaiful Alam Chowdhury, Director (Planning)
2. Md. Ghusan Sarwar, General Manager, Planning and
Monitoring Division
3. Mr. Md. Shafiqur Rahman, General Manager, Strategic
Planning and Resources Mobilization Division
103

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Updated and Revised Report

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Summary Results of Diagnostic Survey on Business Process Review

Updated and Revised Report

(19 May 2011)

Summary Results of Diagnostic Survey on Business Process Review

Organograms (Organizational Charts):

Asian Development Bank

Financial Systems Management Unit

Summary Results of Diagnostic Survey on Business Process Review

1. Scope and Objectives of the Study

(3) In terms of overall Technical Adviser (TA) support to C4:

(4) Works during Q2 of the Project (i.e. Jan-March 2011)

2. Methodology and Sample Design for the Diagnostic Study

-- Department of Agricultural Extension (DAE),

3. Role of Planning Cells for Planning, Budgeting and MTBF

MBF-Part B (to be prepared by Department/Agency)

3.2 Development and Non-Development Budget

4.1.2. Major Functions

Major functions are

4.1.3. Goals, Core

Not specified, as these

4.1.4. SWOT4 (Strength,

Indicates the sociotechno-economicpolitical context

Prepared on the basis of

LM/ PC/ NEC Provides the basis

LMs/ Divisions Detailed strategic

Are linked to the

We agree with the

4.1.7. Gender Budgeting

4.1.8. Key Performance

Helps to assess the

KPIs are CREAM (clear,

KPIs are not linked

We agree with the

Issues for Discussion:

4. 2 Preparation of Sectoral Perspective Plan

Issues for Discussion:

4.3. Assist the PC in formulation of sectoral Five Year Plan

Issues for Discussion:

4.4 Preparation of the Annual Development Programme (ADP)

(A) Institutional Linkages of the PC with Line Ministries

4.4 Assist in preparation of Annual Development Programme

Issues for discussion:

Issues for Discussion:

4.6 Project Preparation, Appraisal, Monitoring and Evaluation

4.6 Project Design, Project Conceptualization and Preparation

4.7 Project Appraisal and Approval

On the basis of the

Summary of Approval Procedures of Development Projects under ADP

Project conceptualization and project design

Preparation of the detailed techno-economic-financial

Planning Wing/ Cell of

In 20 copies within 10 working

Submission of recast DPP on the basis of PEC comments Sponsoring Ministry/

Within 25 working days

Submission of DPP above TK 25 crore to ECNEC for Sector Division of PC

Within 10 working days

Within 10 working days

Summary of Approval Procedures of Technical Assistance Projects for ADP

TA Project Approval Process

Preparation of the project proposal in TPP Format and

Executive Agency (EA)