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BANGLADESH

Digitizing Implementation Monitoring and Public Procurement Project (Cr. 6077-BD)

Third Implementation Support Review

(November 27 to December 4, 2018)

Aide Memoire

1. During November 27 to December 4, 2018, a World Bank team1 carried out the third implementation

support review of the Digitizing Implementation Monitoring and Public Procurement Project (DIMAPPP). The

Aid Memoire (AM) summarizes the findings on the status of the project implementation, recommendations, and

agreements reached with the relevant agencies to take measures to expedite implementation. The AM was

discussed at the wrap-up meeting on December 4, 2018, with Mr. Abul Mansur Md Faizullah, Secretary-In-

Charge, IMED in the Chair. During the wrap up meeting, it was agreed to classify the aide memoire document as

“public”.

OVERALL STATUS AND KEY PROJECT DATA

2. Overall progress: The achievement of project development objective is considered as satisfactory in view

of the progress of implementation of the project. There is good progress in implementing the project activities

with three major contracts signed. The results framework is in Annex 3.

3. Key project data: The key project data is provided below.

Table 1: Key Project Data

Board Approval 07/28/2017

Effectiveness Date 10/08/2017

Closing Date of IDA Credit 06/30/2022

IDA Credit Amount SDR 40.2 M

Amount Disbursed 17%

KEY POINTS DISCUSSED AND AGREED ACTIONS

4. The Central Procurement Technical Unit (CPTU) under the Implementation Monitoring and Evaluation

Division (IMED) of the Ministry of Planning is responsible for implementing the project. The Local Government

Engineering Department (LGED) is assisting CPTU with the specific implementation of electronic government

procurement (e-GP) in all local government institutions (LGIs) and their capacity development. The key points of

discussions and component-wise agreed actions are provided below, with timebound action plan in Table 1 and

details in three Annexes.

5. Component 1: Restructuring CPTU and Institutionalizing e-GP: It has two components: restructuring

CPTU into an Authority with more regulatory power and institutionalizing electronic government procurement

(e-GP) to function as a service provider with adequately staffed professional resources. Few months back, the

Prime Minister in principle already provided concurrence to the formation of such an Authority. Now, the draft

new law for the proposed Authority (Bangladesh Public Procurement Authority- BPPA) along with the

amendment of the existing Public Procurement Act (PPA) is at the final stage of submission to the Cabinet for its

in-principle approval that earlier went through several rounds of iterations and extensive consultations. After the

1 Messrs./Mmes. Zafrul Islam (Lead Procurement Specialist & Team Leader), Ishtiak Siddique (Sr. Procurement Specialist), Masud Mozammel (Sr.

Communications Officer), Mehrin A. Mahbub (Sr. Communications Officer), ANM Mustafizur Rahman (Sr. Procurement Specialist), Maxwell B. Dapaah

(Sr. Financial Management Specialist), Arafat Ishtiak (Procurement Specialist), Md Kamruzzaman (Procurement Specialist), Omar. F. Khandaker (Sr. IT Security Specialist), Shazia Amina Ahmed (Public Policy and Stakeholders Consultant), SM Hafiz Al Mamun (Project Support Consultant), and

Mahmuda Nusrat Hussain (Team Associate). Besides, Joseph Fagan (Sr. e-GP Consultant) provided input on-line.

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Cabinet approval, it will be placed to the Parliament. CPTU informs that enactment of the Law may take up to

April 2019 in view of the imminent general election in late December 2018. Nevertheless, the Bank review team

emphasized the need of concurrently finalizing the organogram of the Authority and associated regulations (if

applicable), to avoid delay in the implementation of the Law, once the Parliament passes it. Concerning e-GP,

although CPTU has further strengthened its own IT staffing resources as per the transition plan, couple of positions

are still to be filled up (web developer: international -1; local- 2).

6. Component 2: Enhancing Digitization of Public Procurement: This component aims to enhance the

scope of e-GP for all public-sector organizations across the country, with specific focus on the 28 newly selected

public-sector organizations (NSPSOs), covering about 3,000 procuring entities, followed by 4 previously selected

PSOs (PSPSOs). Of those NSPSOs, Local Government Institutions (LGIs) under the local government division

alone comprises 888 procuring entities. Other key activities include overall enhancement of the e-GP system with

more advanced features, like, robust contract management process including payments, geo-tagging, international

bidding, business modeling, national tenderers’ database.

7. Expansion of the use of e-GP is progressing fast in high momentum. Out of about 1359 procuring

organizations in Bangladesh, 1273 organizations are already registered in the e-GP system up to November 30,

2018. As of November 2018, over 52,000 tenderers have been registered in the system, with about 230,000

invitations of tender, valued $24 billion. The progress of major procurement under this component is moderate.

While few major procurement contracts are in good progress (signed or completed), yet a few other critical

activities are lagging: (i) CPTU- the development of contract management module; selection of firm for e-GP

training, and consulting firm for e-GP system enhancement; (ii) LGED- selection of consulting firm for capacity

development of the LGIs and LGED. Other agreements with CPTU involves: making available computers and

accessories in all 28 NSPSOs covering about 3000 procuring entities.

8. Component 3: Professionalizing Procurement and Citizen Engagement: This component aims to

improve public service delivery by operationalizing procurement cell/unit in the 32 SPSOs with 3-10 procurement

professionals, improving procurement management capacity of the 32 selected PSOs (SPSOs) and capacity of the

bidding community, enhancing citizens monitoring of public procurement at decentralized level (48 upazillas),

institutionalizing government-contractors forum (GTF), initiating open contracting data standard (OCDS) vis-a-

vis public disclosure of procurement information through citizen portal (supply and demand side governance).

9. As of November 2018, out of the 28, 27 NSPSOs have formed procurement cell/unit. To ensure

appropriateness of their skills to be able to serve as the knowledge bank of those NSPSOs, ITC-ILO/Turin will

review their qualifications and experience within the next couple of months and share reports. ITC-ILO, as the

key service provider for capacity development with the largest contract in the project, is onboard since mid-

October 2018. The Team Leader of ITC-ILO is available; however, other initial start-up activities appear slow.

The review team emphasized the need to make all relevant key staff available as per the provisions of the contract.

Also, the citizen engagement tasks by BRAC Institute of Governance and Development (BIGD), an affiliate of

the BRAC university, are behind schedule specifically starting the physical implementation of citizen monitoring

of procurement at upazilla level. Institutionalizing GTF as part of the behavioral change communication, a task of

Bangladesh Center for Communication Program (BCCP) needs to be expedited. The hiring of consultant for

developing the citizen portal is at the request for proposal stage. CPTU needs to expedite the selection of M&E

consultant and share the ToR with the Bank. CPTU is behind schedule on the actual implementation of OCDS

activities as the e-GP contract management module is yet to be completed.

10. Component 4: Digitizing Project Implementation Monitoring: The component aims to strengthen

implementation monitoring of development programs/projects at national level using digital technology. Although

some progress has been made in the selection of firm for need assessment, the overall progress of this component

is delayed substantially. The need assessment task is delayed over six months (September 2018 to March 2019)

which will have large impact on the making of parallel arrangements for the selection of firm for PMIS updating

including the existing PMIS framework, evaluation strategy, and research unit. Also, the IMED office refurbishing

contract is delayed which IMED now expects to sign within December 15, 2018.

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FIDUCIARY COMPLIANCE AND SAFEGUARD MANAGEMENT

11. Fiduciary Performance: The overall fiduciary performance is moderately satisfactory (combined

procurement and financial management). Details are provided below.

12. Procurement Performance: The procurement performance is moderately satisfactory (MS). Procurement

consultant has been on boarded in CPTU. Both CPTU and LGED have completed the procurement process of few

major contracts of the Project. However, CPTU is yet to issue the REOI and Terms of Reference of Consulting

Services for eGP enhancement and operation and maintenance (CPTU/S-02). Also, CPTU needs to finalize

quantities for supply of computers and accessories for PEs of 28 NSPSOs. These two packages are now critical

for CPTU to start the bidding process to ensure the timely transition to the new contract for overall e-GP

enhancement and increase the use of eGP. IMED/ CPTU also needs to expedite the preparation of ToR of

consulting services for design /update on-line PMIS for IMED (CPTU/S-07) for which another consulting firm

has been engaged to assess the need. LGED is at the evaluation process of goods package for the supply of IT

Equipment to 491 LGIs (Upazila Parishad) under Package LGED/G – 06. Regarding the use of STEP (Systematic

Tracking of Exchange in Procurement), LGED duly uploads document and information of post review packages

as and when the procurement activities take place, however, CPTU has some post review packages (5) already

awarded but procurement document and information yet to be uploaded in STEP.

13. Financial Management (FM) Performance: FM performance is moderately satisfactory. IUFRs are

submitted on time and deemed satisfactory. The project is also adequately staffed with one qualified accountant

and one financial management officer at CPTU. At LGED one Junior Financial Management Specialist is working

for record keeping and reporting. Both in CPTU and LGED, a single person has authority for signing the checks

for all payments under the project. Both CPTU and LGED informs, however, that they follow the Government’s

standard practice as approved by the ministry of Finance. Considering better risk management, the Bank team

nevertheless requested to look into the matter further. For asset management, the team recommends that CPTU

explores introduction of on-line system for asset tracking like LGED (ProInfo) and LGED also incorporates

features like the value, funding source, asset number, etc. For conducting internal audit, CPTU will hire an external

professional auditing firm. With TOR acceptable to the Bank. CPTU is required to make its accounting software

(TALLY) more user friendly and functional so that it can capture category wise report.

14. Disbursement Status: As of November 30, 2018, disbursement is about 17% (USD 9.62 million). Based

on information provided by the project, an amount of BDT 567.11 million has been incurred as expenditure as of

November 30, 2018.

15. Environmental Safeguards: The project is Category “C”, with no major civil construction works. For IT

equipment procurement and disposal, LGED has incorporated ECoP (Environmental Code of Practice)

requirements in the tender documents for computers/ equipment etc. CPTU will need to incorporate similar

provisions in its tender documents for planned procurement of computers.

NEXT REVIEW

16. The next implementation support review is tentatively planned for late April/ early May 2019, in addition

to the continuous supervision of the project.

Table 1: Summary of Agreed Actions

Activities Responsibility Agreed timeline

Component 1: Restructuring CPTU and Institutionalizing e-GP

1 Approval from the Cabinet in principle on draft law of the proposed

BPPA and amendment of PPA, after completion of all requirements

including the Bank’s review.

CPTU January 31, 2019

Final Approval from Cabinet after vetting of Ministry of Law March 31, 2019

Placement of the Law to Parliament April 15, 2019

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Share with the Bank the draft organogram and staffing of the

proposed Authority (job description with proposed scale)

February 15, 2019

2 Share with the Bank draft (i) 7 national tender documents in Bangla,

and (ii) remaining 5 documents

CPTU/

MIDAS

December 15, 2018

April 30, 2019

3 Hire three remaining web developers/specialists as CPTU’s in-house

resources (national: 2, international: 1)


Component 2: Enhancing Digitization of Public Procurement

4 Share with Bank the shortlist of consulting firm and RFP for

providing e-GP training (NSPSOs and bidders)


Share with the Bank Technical Evaluation report March 31, 2019

Share with the Bank draft negotiated contract April 30, 2019

Sign Contract May 15, 2019

5 Issue REOI for overall e-GP system enhancement CPTU December 15, 2018

Share with the Bank short list and draft RFP February 15, 2019

Share with the Bank Technical Evaluation report April 15, 2019

Share with the Bank draft negotiated contract May 15, 2019

Sign contract May 30, 2019

6 Share with the Bank draft bidding documents for procurement of

computers for 28 NSPSOs covering 2000 PEs

CPTU December 31, 2108

Share with the Bank bid evaluation report March 7, 2019

Sign contract March 31, 2019

Make available required computers and accessories in NSPSOs June 15, 2019

7 Make onboard the system architecture consultant for need

assessment of e-GP upgradation (Jboss – EAP 7.1 with Java 10)

CPTU/ GSS

Infotech/

Dohatec

December 15, 2018

Need assessment report from system architecture consultant January 25, 2019

Procurement of the system based on need assessment, potentially

Jboss – EAP 7.1 with Java 10

February 28, 2019

Build environment on the new system to implement eGP modules March 31, 2019

8 Share with the Bank final e-GP modules with detailed features:

Contract Management

CPTU/ GSS

Infotech/

Dohatec

January 31, 2019

Complete development of all modules for contract management February 28, 2019

Start piloting and testing the contract management module in e-GP

in four PSPSOs (RHD, LGED, BWDB, BREB)

March 31, 2019

Prepare a roll-out plan for implementation of e-contract management

across public sector agencies

April 30, 2019

9 Share with the Bank International bidding document- goods (e-PG4) CPTU/ GSS

Infotech/

Dohatec

December 15, 2018

Share with the Bank e-GP modules with detailed features:

International bidding document

January 31, 2019

Start piloting of international bidding in e-GP March 31, 2019

10 Final approval on e-GP modules with detailed features: national

tenderers’ database and data entry from Tenderer

CPTU/ GSS

Infotech/

Dohatec

March 31, 2019

11 Share with the Bank time extension request for the 6 helpdesk

executives


12 Make onboard the consultants for e-GP training and capacity

development of the Local Government Institutions (888)

LGED February 15, 2019

Component 3: Professionalizing Procurement and Citizen Engagement

13 Complete creation of specific procurement unit/cell in each SPSO

with identified skilled officials to serve as procurement knowledge

bank for the organization

32 SPSOs December 31, 2018

14 Make available the core key staffs for the capacity development

contract (6 P)

ITC-ILO January 15, 2018

Start 3 weeks training by consultant for capacity development and

professionalization (ITC-ILO)

CPTU/ ITC-

ILO

January 15, 2018

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Uploading training calendar in the website January 15, 2019

Developing new training modules by ITC-ILO March 15, 2019

Share a draft Disposal Policy with CPTU and the Bank ITC-ILO April 30, 2019

15 Share with the Bank TOR of M&E consultant (CQS) CPTU December 20, 2018

Sign contract with the selected M&E consultant after completing all

procurement steps and procedural requirements

March 31, 2019

16 Finalize the array of data/ fields that will be disclosed in public

under the open contracting data standard (OCDS)

CPTU March 31, 2019

17 Receive proposal from the top ranked firm for developing citizen

portal


Sign contract with the selected firm January 20, 2019

18 Share with the Bank revised TOR of PPSC by BIGD CPTU/BIGD December 10, 2018

19 Start implementation of citizen monitoring of procurement at the

pre-identified upazilla

BIGD January 31, 2019

20 Arrange PPSC meeting CPTU/BIGD February 7, 2019

21 Share with the Bank strategic methodology for institutionalization

and sustainability of Central BGTF by consultant (BCCP)

CPTU/ BCCP December 31, 2018

Create Central BGTF with its branches at least at division level (8) April 30, 2019

Component 4: Digitizing Project Implementation Monitoring

22 Share with the Bank the need assessment report from Consultant in

strengthening IMED (PMIS framework, evaluation strategy, research

unit, possible disclosure of data in citizen portal)

IMED February 28, 2019

23 Share with the Bank TOR for design/updating of IMED’s on-line

PMIS for digital monitoring of project implementation

IMED March 31, 2019

Issue the REOI for designing/updating the on-line PMIS (based on

consultant’s report under item 22 above) after Bank’s review

April 7, 2019

Make the PMIS design/updating consultant onboard (PMIS) after

completing all requirements of review by the Bank

June 30, 2019

24 Sign contract with the selected firm for IMED refurbishing work IMED December 15, 2018

Complete refurbishing of IMED’s office March 15, 2019

25 Develop a comprehensive system (monitoring tools and techniques,

guidelines, data analytics and research, and on-line reporting)

IMED September 30,

2019

Procurement and Financial Management (FM) Performance

26 Hire external professional audit firm to carry out internal audit with

TOR acceptable to the Bank

CPTU February 28, 2019

27 Provide all project assets and share report with the Bank CPTU/ LGED January 31, 2019

28 Submit the first audited financial statements (FY 2017-18). CPTU December 31, 2018

Attachments:

Annex 1: List of Key Persons Met

Annex 2: Component Details (as applicable) & Fiduciary Aspects

Annex 3: Project Results Framework

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Annex 1

List of Key Persons Met

Implementation Monitoring and Evaluation Division/ CPTU:

Mr. Md. Mofizul Islam, Secretary, IMED

Mr. Abul Mansur Md. Faizullah, Secretary-In-Charge, IMED

Mr. Faruque Hossain, Director General (Additional Secretary), CPTU

Mr. Md. Mahmudul Haque, Joint Secretary, IMED

Mr. Zehsan Islam, Director/CPTU & DIMAPPP Component 1 Director

Mr. Md. Aziz Taher Khan, Director/CPTU & DIMAPPP Component 2 Director

Mr. Shish Haider Chowdhury, Director/CPTU & DIMAPPP Component 3 Director

Mr. Mohammad Habibul Islam, Director/IMED & DIMAPPP Component 4 Director

Mr. Mujibul Ferdous, Director/IMED & DIMAPPP Component 4 Director

Mr. Md Shamimul Haque, Director, CPTU

Mr. Masud Akhter Khan, Director, CPTU

Mr. Md. Mosharraf Hussain, Sr. System Analyst, CPTU

Ms. Moushumi Habib, Deputy Director, CPTU

Mr. Md. Salah Uddin, Deputy Director, CPTU

Ms. Fatima Tuz Johora Thakur, Assistant Director, IMED

Mr. AKM Fazlul Karim, Procurement Reform Implementation Advisor, CPTU

Mr. Md. Mosta Gausul Hoque, Principal Project Management Consultant, CPTU

Mr. Syed Sarwar Hussain, Senior Procurement Consultant, CPTU

Mr. Shafiul Alam, Sr. Communications Consultant, CPTU

Mr. Ashfakul Islam, Sr. e-GP Management Consultant, CPTU

Mr. Mohammad Hafizur Rahman, Sr. Programmer, CPTU

Mr. Asad Ibne Moin, Security Assurance Consultant, CPTU

Mr. Md. Abu Saker Chowdhury, Call Center Manager, CPTU

Mr. Md. Mr. Mohammad Asadul Hoque, System Analyst, CPTU

Mr. Engr. Mohammad Ariful Islam, System Analyst, CPTU

Mr. Md. Zumshedul Abedin Chowdhury, System Administrator, CPTU

Mr. Abid Hossain, Application Administrator, CPTU

Ms. Naznin Nahar, Programmer, CPTU

Mr. Sk. Shariful Islam, Assist. Maintenance Engr., CPTU

Mr. Mohammad Salim, Sr. Financial Management Consultant, CPTU

Mr. Mohammad. Taherul Islam, FMC, CPTU

Mr. Lutful Muyeed, Database Administrator, CPTU

LGED:

Mr. Md. Abul Kalam Azad, Chief Engineer, LGED

Mr. Khondokar Ali Noor, Additional Chief Engineer, LGED

Mr. Abdus Sattar, Executive Engr & Focal Person & DIMAPPP PIT Member

Mr. Md. Abdus Salam Mondol, Superintent Engineer, Faridpur Region, LGED

Mr. Md. Noor Hossain, Executive Engr, Faridpur, LGED

Mr. Bimol Kumar Das, Executive Engr, Faridpur Region, LGED

Mr. Muhammad Shariful Islam, Senior Assistant Engineer, LGED

Agencies (SPSOs and NSPSOs):

Ms. Regia Begum, CAO, Office of Chief Accounts Officer, Hisab Bhaban, Segunbagicha

Mr. Saiful Islam, DD (Procurement), Directorate of Primary Education

Mr. Kazi mohammad Mahbubul Haque, Sr. System Analyst, RAJUK

Mr. S.M.Anwar Satter, Dhaka WASA

Md. Rezaul Karim Sheikh, Deputy Project Director, DG Food

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Mr. Kaium Miah, Upazila Agriculture Officer, DAE

Mr. Md. Sultanul Arefin, Asst. Sytem Analyst, BIWTA

Ms. Humaira Binte Reza, Executive Engineer, PWD

Mr. Engr. A. F.M. Mizanur Rahman, Attached Officer, ICT cell, DTE

Mr. Md. Jahangir Alam, Director (P&D), DTE

Ms. Mazeda Begum, Desk Officer-Procurement, CMSD

Mr. Zafar Sadeque, Chief Engineer (P&O), BREB

Mr. Md. Yousuf Khan, Deputy Chief, DoF

Ms. Kazi Sayeda Momtaz, Sr. System Analyst, RHD

Mr. Md. Hamidul Islam Prodhan, System Analyst, Bangladesh Police, Police HQ, Dhaka

Mr. Engr. Md. Nazrul Islam, PD, DPHE

Mr. Md. Rafiqul Islam, Procurement Officer & DPM, DGFP

Mr. Sumon Kumar Shorma, Deputy Controller, Controller General of Accounts/Accounts

Mr. Manzoor Alam, System Analyst, Directorate of Food

Mr. Mamunur Hossen, Programmer, National Curriculum and Textbook Board

Mr. Md. Abdus Sattar, Executive Engineer (Proc.), LGED

Mr. Shafiqul Basher, System Analyst, Chittagong WASA

Mr. Md. Monirul Islam, Director, Contract & Procurement, BWDB

Mr. Engr. Mir Muazzem Hussain, Executive Engineer, EED

Mr. Mohammad Anisur Rahman, Deputy Director, DSHE

Mr. Md. Abdul Hamid, Executive Engineer, HED

Mr. Md. Zakir Hussain, Sr. Faculty, ESCB

Md. Sarower Murshed, Sub-Divisional Engineer, BPDB

GTF:

20 members of Government Tenderers Forum, Faridpur

BCCP:

Ms. Khadija Bilkis, Team Leader, BCCP

Ms. Meher Afroz, Deputy Director, BCCP

BIGD:

Dr. Imran Matin, Executive Director, BIGD

Dr. Mirza M. Hassan, Team Leader, Citizen Engagement, BIGD

Mr. Ahmed Asif Enam, Research Associate, BIGD

Dohatec/GSS Infotech/PWC/CNS Limited/Midas/ Thakral:

Mr. A.K.M Shamsuddoha, President, Dohatec

Mr. Nazmul Islam Bhuiyan, Deputy Team Leader, Dohatec

Mr. Raj Peesa, SVI-Sales & Operation, GSS Infotech

Mr. Joseph George, Team Leader, GSS Infotech

Dr. A.S.M. Mashi-Ur-Rahman, Managing Director, MIDAS

Mr. Kamrul Islam, Deputy General Manager, CNS Limited

Mr. Mohammad Masud, Manager, Sales, Thakral Information Systems Pvt. Ltd.

ITC-ILO/Turin:

Mr. Ralf Krueger, Manager, Sustainable Development Program

Mr. Richard Lorenz, Team Leader.

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Annex2

Component Details (as applicable) & Fiduciary Aspects

Component 1: Restructuring CPTU and Institutionalizing e-GP

This component aims to restructure the CPTU in order to enhance its regulatory power and institutionalize e-GP

to function as a service provider with professional resources. Two major sub-components with progress is as

follows.

Component 1.1: Restructuring CPTU and Furthering Policy Reform

Major activities include: (i) framing of necessary law for restructuring CPTU into an Authority (Bangladesh

Public Procurement Authority- BPPA); (ii) revising/amending the Public procurement Act 2006 (PPA) to

incorporate necessary changes arising out of the proposed BPPA along with advanced procurement features like

framework agreement, sustainable procurement; gender equity, quality-based selection, etc.; (iii) drafting

remaining key tender documents including Bangla version for the identified national tender documents.

It is lagging by few months. The law for BPPA has been consulted widely in a few workshops involving all

stakeholders covering major ministries and procurement organizations, bidding community and business apex

bodies; civil society organizations; academia; and key development partners. Subsequently it was placed at the

CPTU website for public comments. All comment at various stages were then reviewed in detail in a series of

meeting at CPTU including at the final stage involving Secretary, IMED. Earlier about couple of months back,

the Prime Minister has given her consent in principle on the formation of BPPA. The law is now at its final stage

of submission to the Cabinet for approval following GOB internal process. Concurrently, the amendment of the

PPA is also drafted and finalized. Given that the process has been delayed already by few months, the review

team requested CPTU to expedite the subsequent steps. CPTU is expecting to place to the Parliament both the

drafts, that is, BPPA Act and amendment of PPA, at the same time around mid-April 2019 after fulfilling all

internal requirements (Ministry of Planning, Cabinet, Ministry of Law).

There are few remaining bidding documents to be drafted including drafting Bangla version of a few national

tender documents.

Component 1.2: Institutionalizing e-GP

Major activities include: (i) strengthening e-GP staffing of CPTU; (ii) putting in place IT Security Protocol with

system control functions; (iii) issuing the revised e-GP guidelines; and (iv) developing skills in CPTU in the

overall management of the e-GP system. All planned IT key staff are in place except a three positions of web

developers/specialists (international- 1, and national- 2). CPTU is expected to issue shortly the IT Security

Protocol after incorporating Bank’s comments. Also, CPTU will need to issue the revised e-GP guidelines that

has been recently updated in light of the experience of e-GP implementation in the last few years and

changes/adjustments in the PPA.

Component 2: Enhancing Digitization of Public Procurement

This component aims to enhance the existing e-GP system both in terms of its technology and widening

scope across the entire public-sector organizations, and e-contract management including payments. It has two

sub-components and progress is summarized below.

Component 2.1: Expansion of e-GP system

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There have been extensive efforts in enhancing the scope of e-GP with greater awareness and ownership of

the key stakeholders that is procuring entities and the bidding community. This has resulted in exponential growth

of the use of e-GP as demonstrated in the below graph. Also, most organizations are appreciating and commending

the role of CPTU in operating its 24X7 helpdesk to provide as much as possible instant support and/or solutions

(e.g., Land Port Authority, SNSP Project Office).

The review team had an update on the progress of current activities for enhancing digitization of public

procurement. The CPTU will need to move quickly to issue the REOI for the selection of firm for e-GP system

enhancement (Package S-02) after incorporating Bank’s comments in the TOR. The selected firm is expected to

take over the e-GP system operation and management including transition/lap-over at the end of the current

contract extension of the existing firm (June 2019). The earlier the firm can be recruited the better to ensure there

is sufficient time to support the knowledge transfer and allow the best approach for enhancing the e-GP system

over the next 5 -10 years. Any delays with the recruitment of the new firm may have an impact on ensuring a

stable system environment during the transition period.

Cybersecurity threat mitigation is a continuous challenge and new threats are evolving every day. To

protect e-GP system from evolving cyber threats - continuous monitoring, regular security patches update,

vulnerability assessment and execution of Information Security Policies controls are needed. The Bank already

reviewed the Information Security Policy of e-GP system and provided feedback to CPTU. CPTU needs to finalize

the Information Security Policy and publish it for all the stakeholders of e-GP. Bank also reviewed the e-GP

Guidelines document and provided feedback to CPTU. The review team suggested to review the Information

Security and other policies execution status of e-GP monthly. CPTU shared the BCC Scan Report on e-GP system,

Internal Audit Report of Q1 with vulnerability scan and Internal Audit Report of Q2 with vulnerability scan with

the World Bank. Also, CPTU will need to share the comprehensive Quarterly Vulnerability Assessment Report

on e-GP System with the World Bank in each Quarter as soon as quarterly vulnerability scan is completed.

Component 2.2: Implementation of Contract Management

The development of the electronic Contract Management (e-CM) module is now at the advanced stage

after a substantial delay. A number of e-GP modules/forms’ data structure and features (e.g., particular conditions

of contract, form for work plan etc.) are undergoing changes to facilitate smooth operation of the e-CM. Besides,

with the new features, the procuring entities will now be able to prepare the complete contract documents through

the system and communicate electronically to the winning bidder as part of the electronic notification of award.

The preparation of the contract document will mostly take the advantages of auto filled/calculated information

from the tender document, tender submitted by the winning tenderer, and recommendation of the tender evaluation

committee. The winning tenderer will now be able to complete their part of the information in the contract

document (e.g., bank account information, contact person etc.) and accept the contract electronically. Contract

management module at the initial phase has the following features – update the work plan (milestones), register

actual progress as per the work plan, preparation and approval of the measurements of works as per the bill of

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quantities, preparation and approval of invoices, view physical and financial progress of the contract at any point

of time, amend the contract including time extension and variation order, additional delivery/extra work, issue

work completion and part completion certificates etc. Work completion certificates/information in-turn will be

stored in the contractors’ database that is also under development.

Going forward, the contractors’ database will be linked with tender submission forms and tender

evaluation report which will ease the tender submission and evaluation efforts as the tenderers will only mention

the unique work completion certificate number in their tender and the system will auto-fill and verify all relevant

information. It will also greatly increase the efficiency of the system, reduce tender evaluation time and possibility

of submitting fake work experiences by the tenderers. The facilities for uploading geo tagged images will be

included in the next phase of development. It was agreed that the features of the complete e-CM module (Phase-

1) will be finalized by December 15, 2018. The developer will complete the development of the module (Phase-

1) including the related features listed above by February 28, 2018 and will start internal piloting of the module

by March 31, 2019.

Component 3: Professionalizing Procurement and Citizen Engagement

This component aims to improve procurement management capacity of the SPSOs and capacity of the

bidding community. The sub-component will encourage creation of knowledge base, analytical tasks, and research

and development. Concurrently, it will attempt to create a citizen monitoring mechanism of local level contracts

with specific reference to rural roads, education, and health service deliveries. Five subcomponents progress are

summarized below:

Component 3.1: Improving Procurement Management of SPSOs, IMED and CPTU

The key activity is to create and operationalize a procurement cell in each of the 28 NSPSOs, comprising

3-10 members depending on the organization. This cell will function as knowledge bank for the respective

organization. As of November 30, a total of 27 NSPSOs have formed procurement cell and staffed them. The

review team informed CPTU and NSPSOs that ITC-ILO will review the appropriateness of qualifications and

experience of the cell members and shar report based on which strengthening measures by March 31, 2019, if

requires any, will be undertaken. All remaining NSPSOs will complete formation of cell by December 31, 2018.

Component 3.2: Capacity Building and Professionalization of Procurement

The key consultant ITC-ILO is behind schedule and has just started their initial start-up activities. They

need to mobilize all their key staff, beyond the Team Leader, within mid-December 2018 so that the main three

week course can start as planned within December 15, 2018. Also, ITC-ILO will need to provide a detailed initial

plan at least for the initial six months for training of main courses and short courses covering 17 types of audience.

Component 3.3: Disclosure of Public Procurement Information in Open Data Format

This sub-component refers to establishment of transparency in public procurement with disclosure of supply-

driven data from the CPTU side, especially the e-GP data. The CPTU will decide on the category of data to be

disclosed on the Citizen Portal at this stage. CPTU will need to prepare a strategy on Open Contracting Data

Standard as soon as possible.

Component 3.4: Citizen Engagement

The two key activities of citizen engagement (CE) sub-component include: local level citizens’

monitoring and national level dialogue under the platform of Public-Private Stakeholders Committee (PPSC). The

implementing consultant for this sub-component, BRAC Institute of Governance & Development (BIGD), has

finalized the selection of the 48 upazilas (sub-districts) where the local level monitoring will be taking place.

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BIGD is still in the process of finalizing the formalities including the TOR in engaging the partnering NGO,

BRAC’s Community Empowerment Program (CEP). The CEP will primarily manage the implementation of

different activities of local level citizens’ monitoring of procurement. With regards to the implementation of PPSC

activities, BIGD is revising the TOR of the PPSC following comments from the CPTU and the World Bank.

Following key actions were agreed:

- First PPSC meeting will be organized in late January or early February 2019;

- Start implementation of citizen monitoring of procurement contract at upazilla level by January 31, 2019.

Citizen Portal:

The expected outcome of this portal in Bangla at CPTU is to establish a culture of openness and promote

dialogue on public procurement for better service delivery which will eventually lead to greater transparency. The

portal will share/publish information related to public procurement process across the country. The Portal will

have two key features: Supply side of good governance from data available in the government procurement

system, and demand side of governance with data from the beneficiaries and citizens. The Portal would include

information stemming from e-GP system, local level citizen engagement activities, Government-Tenderers Forum

(GTF), PPSC discussions, etc. The Citizen Portal will be an information repository comprising both supply and

demand-driven data. The selection of the main consultant for the Citizen Portal is at the final stage and is expected

to be onboard in next couple of months.

Component 3.5: Behavioral Change and Strategic Communication

The main consultant for the strategic and behavior change communication, Bangladesh Center for

Communication Program (BCCP) has updated the communication strategy for DIMAPPP and organizing to

implement the various activities of GTF. Given the recommendations of a recent workshop on this it is anticipated

that creation of an apex GTF body and inclusion of provision for dialogues and citizen engagement in the Public

Procurement Rules-2008 may be necessary. Following key actions were agreed:

- Finalizing selection of Consultant for Citizens’ Portal;

- Finalizing TOR for PPSC.

Component 4: Digitizing Project Implementation Monitoring

At the national level, program/ project implementation monitoring and evaluation is the responsibility of

the Implementation Monitoring and Evaluation Division (IMED) of the Ministry of Planning. IMED expressed

its commitment to streamline the monitoring process and making it on-line through a single platform connecting

all public-sector organization.

This component is substantially delayed. The need assessment consultant (Computer Network System) has

submitted the inception report. The consultant will formulate the requirements for the modernized system to

support IMED current and future needs and to integrate with the e-GP and contract management system. The

consultant will review the existing PMIS system, monitoring tools and techniques and Data Analytics including

reporting parts and firm will prepare the TOR for main consultant for developing PMIS. They are expected to

submit their final report by March 2019. Based on this assessment and associated TOR, the main firm for updating

the PMIS system will be appointed. Also, other contract for the office refurbishing of IMED is expected to be

signed within mid- December 2018.

Procurement:

The procurement performance is moderately satisfactory. Although CPTU signed three major contracts

(capacity development, citizen engagement, and behavioral change communication), it is lagging in other

procurement. CPTU will need to process the e-GP system enhancement contract as soon as possible. Earlier the

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Bank provided comments on the TOR. Also, it needs to expedite the selection of firm for e-GP training which is

delayed. The key individual consultants are already on boarded except three web developers (international- 1, and

national- 2). The procurement packages of LGED part are generally on track with some marginal delay. There is

no significant procurement progress in component 4 (IMED). Both CPTU and LGED are using STEP for

procurement plan update. CPTU needs to store all information and documentation in STEP for procurement post

review packages.

Financial Management:

Overall assessment

The FM rating for the project is rated as moderately satisfactory. IUFRs are submitted on time and deemed

satisfactory. The project is also adequately staffed with one qualified accountant and one financial management

officer at IPTU.

At LGED one Junior Financial Management Specialist is responsible for record keeping and reporting. The

Executive Engineer (Project Manager) is the single authority for signing the checks for all payments under the

project. This is also the case at CPTU. Although this seems to be a common practice for projects in Bangladesh,

The Bank team would like to highlight that there are risks with such an arrangement. Both CPTU and LGED

informs however that they follow the Government’s standard practice as approved by the Ministry of Finance.

Considering better risk management, the Bank team, however, requests to look into the matter further. This is best

practice in many jurisdictions and consistent with proper internal controls around check issuance.

Also, in review of sampled transactions at CPTU, we noted that Advances made to vendors are treated as

expenditure. Without any supporting documents indicating delivery of good or services it is inaccurate to treat

such an Advance as expense. The FM team was advised to keep track of Advances in the IUFRs and as well as in

the Bank reconciliations and only treat the portion for which goods or services have been delivered as an expense

within the relevant period.

Moreover, no record of fixed assets is kept at CPTU although, at LGED a bespoke system called ProInfo is being

developed to keep a records of assets distributed to implementing entities in local districts. Some key aspect of

asset records such as the value, funding source, and asset number are however missing from the system. The

Mission recommended this additional information be included in the system. The mission also advised CPTU to

visit LGED to study the system and to determine if CPTU can have access, and also make inputs without having

to acquire or developing a new fixed asset record system.

Per the PAD, at least two internal audits will be carried out by an external professional auditing firm in the lifetime

of the project. The project team was reminder of this and asked to initiate the hiring process. To initiate the first

round of internal audit by an external professional auditing firm, the project will share a draft Terms of Reference

(ToR) with the Bank for its review and concurrence.

Finally, the project team was reminded that Annual Audit report for the project is due on December 30, 2018.

Staffing: The project is adequately staffed including a Senior Financial Management Consultant and a Financial

Management Consultant to deal with day to day financial management affairs.

Internal Control (including internal audit): The project retains copy of supporting documents for all project’s

related transactions except for copy of deliverables and contract. The mission recommends that all supporting

documents which includes copy of contracts, deliverables etc. (at least copy of some sample pages) must be filed

with payment voucher ensuring audit trail to facilitate internal and external audits, as well as reviews by the Bank.

The project does not maintain any fixed assets register and the mission found lack of control over assets

management of the project. The mission noted that the Project’s consultants have been paid for procuring of

computer/laptop out of reimbursable expenses of consultant’s contract amount but the asset was not recorded

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under the list of project assets. The mission didn’t find any record or document on disclaimer of restoring these

assets from the consultant at end of service period. The project team is requested to include an addendum to the

claim document of the consultant that the laptop is an asset of the GoB and that it should be returned after the

short-term assignment is over. The mission also recommends that an annual verification of all project assets shall

be carried out and a summarized report shall be shared with the Bank by December 31, 2018. As agreed, the

internal audits will be carried out by an external professional auditing firm at least two times over the lifetime of

the project. To initiate the first round of internal audit by an external professional auditing firm, the project will

share a draft Terms of Reference (ToR) with the Bank for its review and concurrence.

Accounting and Reporting: The project procured and installed an off-the-shelf accounting software TALLY,

which is essential in order to produce a timely and accurate financial statement. However, the system couldn’t

produce the required statements of the IUFR automatically i.e. category wise report; DA Activity statement and

the statement of contracts subject to prior review and not subject to prior review but it produces the component

wise report. Currently the project prepares the Interim Unaudited Financial Reports (IUFRs) manually through

data capturing from the system. Since the last mission the project submitted the IUFRs to the Bank on a regular

basis and these were found acceptable by the Bank based on its desk reviews.

Transaction Review: The Mission has reviewed the transactions reported in the Interim Unaudited Financial

Reports (IUFR) for the quarter ended June 30, 2018 and September 30, 2018. While reviewing the transactions

the mission was noted that some advance payments were reported as expenditures and lack of adequate supporting

documents with payment voucher. The mission advised the project team not to treat Advance as an expense any

longer since this is not proper accounting. Rather, a separate record of Advances should be kept and also included

in the quarterly IUFRs. The portion of the Advance that is retired with requisite supporting documents is what

should be treated an expense. Details of the transaction review have been shown in the Annex.

External Audit: External audit for FY 2017-2018 is underway by Foreign Aided Project Audit Directorate under

C&AG, with the final report expected to be submitted to the Bank by December 31, 2018.

Disbursement: An amount of USD 9.62 million was disbursed to DA as of November 30, 2018 which is 17% of

total commitment.

Annex 3 PROJECT RESULTS FRAMEWORK

Project Development Objective (PDO): To improve public procurement performance and enhance capacity for implementation monitoring

of development programs/projects

PDO Level Results Indicators2

Co

re UOM3

Baseline

(2017)

Cumulative Target Values4

Comments 2018

2019 2020 2021 2022

1. NSPSOs procurement lead time reduced in NCB

using e-GP system (invitation to contract award) Days 100 95 90 85 80

70

Achievement (as of November 2018) 75

2. NSPSOs invite bids in National Competitive

Bidding (NCB) through e-GP system % 2 2 15 30 50

75


3. Selected sub-districts engage citizen monitoring in

contract implementatiion Number 4

4

5

15 30

45


4. SPSOs’ projects implementation monitored on-line

by IMED % 0 0 0 5 10 25

45


2 Please indicate whether the indicator is a Core Sector Indicator (for additional guidance – please see http://coreindicators). 3 UOM = Unit of Measurement. 4 Target values should be entered for the years data will be available, not necessarily annually. Target values should normally be cumulative. If targets refer to

annual values, please indicate this in the indicator name and in the “Comments” column.

http://coreindicators/

15

Intermediate Results and Indicators

Intermediate Results Indicators

Co

re

Unit of

Measur

ement

Baseline

(2017)

Cumulative Target Values

Comments 2018 2019 2020 2021 2022

1. Draft bill establishing the proposed Authority and

amending the PPA 2006 placed in Parliament Yes/No N N Y

Achievement (as of November 2018) N

2. Government approved organogram with staffing of

the proposed Authority Yes/No N N Y


3. Procuring entities of NSPSOs have at least one

trained/certified procurement professional % 5 5 10 30 60

80


4. PSPSOs' (RHD, LGED, BWDB, and BREB)

contract completion rate within the original time

schedule

% 0 0 0 10 30 50


5. Core procurement unit operationalized in each of the

selected public sector organizations (SPSOs) % 0 0 5 20 50

80


6. Procurement professionalization/accreditation

certificates issued % 0 0 5 20 40

70


7. e-contract magement module in e-GP system

updated Yes/No N N Y

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Co

re

Unit of

Measur

ement

Baseline

(2017)


Comments 2018 2019 2020 2021 2022


8. Open contracting module developed and made

functional Yes/No N N N Y


9. Citizen portal developed and made functional Yes/No N N N Y


10. IMED’s on-line project implementation monitoring

module developed Yes/No N N Y


11. Disposal policy drafted and issued Yes/No N N N Y


12. Authority's officials in place compared with the

staffing plan % 0 0 5 20 40

70


13. Officials trained in reference to the training plan % 0 0 10 30 50

75


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Co

re

Unit of

Measur

ement

Baseline

(2017)


Comments 2018 2019 2020 2021 2022

14. Female officials level of participation in training % 0 0 5 10 15

20


15. e-GP system generated procurement performance

reports of SPSOs published in CPTU/ Authority's

website

% 0 0 10 25 45

75


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