INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC2486. Date ISDS Prepared/Updated: 09/18/2006 I. BASIC INFORMATION. A. Basic Project Data

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Date ISDS Prepared/Updated: 09/18/2006 I. BASIC INFORMATION A. Basic Project Data INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC2486 Country: Bangladesh Project ID: P Project Name: Public Procurement Reform Project II Task Team Leader: Zafrul Islam Estimated Appraisal Date: April 18, 2007 Estimated Board Date: June 21, 2007 Managing Unit: SARPS Lending Instrument: Technical Assistance Loan Sector: General public administration sector (100%) Theme: Public expenditure, financial management and procurement (P) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): 7.20 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 0.08 Financing Gap B. Project Objectives [from section 2 of PCN] The proposed project development objective is to improve monitoring of procurement outcomes and accountability of stakeholders in the public procurement system with increased transparency and disclosure of information, and thereby resulting in improved governance in the sector. C. Project Description [from section 3 of PCN] Over the last several years, though systemic changes have been made by mandating uniform procurement policy, actual implementation of the regulation is slow and less progress has been made in improving tangible outcomes on the ground. The current procurement reform project, being implemented by the Central Procurement Technical Unit (CPTU) of Implementation Monitoring and Evaluation Division (IMED) of the Ministry of Planning, will close in June 2007, and to establish a robust procurement environment, there is a need for continuity of the program. Thus, the project is likely to have four components: Component 1: Furthering Policy Reform and Institutionalizing Capacity Development

2 5. Furthering Policy Reform: The Public Procurement Regulations 2003 (PPR 2003) framed under PPRP is in force. All local procurement follows PPR 2003 and will continue to do so until detailed rules are framed based on the procurement law that has recently been passed. Rules will be framed by updating the existing regulations/ procedures etc. Whatever those updating/ adjustments might be, they will imply consequential amendments to a number of other documents including the implementing procedures, the suite of standard bidding documents (SBDs) and any guidelines or directions issued by the CPTU in respect of the procurement provisions. 6. Institutionalizing Procurement Management Capacity: Under the current credit, as of now, GOB developed a critical mass of about 25 national trainers and trained about 1400 staff. The current training program appears to have been successful in meeting the immediate goal of training a core number of procurement officers in the new legal and regulatory procurement framework. However, the training does not go far enough on core procurement skills such as evaluation mechanisms and contract administration. Also, planning, budgeting and supply chain management skills are lacking. For sustainable capacity development, its institutionalization is essential. 7. Subject to the final outcomes/ findings of an assessment, currently the following components of a medium to long term strategy are envisaged:? Continuation and development of current training: The program will include updating the contents to reflect the new legal framework in view of the law, continuing current courses, and institutionalizing it in a way that the existing provider (Bangladesh Institute of Management- BIM) develops its own faculty to continue training on a sustainable basis.? Development of core procurement capacity: This component envisages a more holistic demand-based approach concentrating on the core skills of procurement functions. The method envisaged is to invite a recognized international institution like the Chartered Institute of Purchasing and Supply, U.K. (CIPS) to partner with a local institute to create skills at various levels allowing for the efficient division of labour within procurement departments and the creation of a distinct career path in procurement, if feasible, leading to the emergence of a welltrained and diverse procurement regime.? Introduction of specific training modules within existing structures: Assistance will be provided to various existing public training institutes and universities to develop and include appropriate courses within their current syllabus.this will be a multi-dimensional approach with appropriate procurement modules involving institutes like Bangladesh Civil Service Administration Academy (BCSAA) for all entry level civil servants, Bangladesh Public Administration Training Center (BPATC) for senior decision-makers, the Institution of Engineers (training the engineering cadre) for specific course on technical specifications, BRAC University/ North South University/ Institute of Business Administration/ Bangladesh University of Engineering & Technology for academic courses. Component 2: Strengthening Procurement Monitoring and Evaluation:

3 8. MIS Networking: Tracking compliance with the regulations and monitoring of procurement outcomes in terms of performance are still the key challenges. An initial MIS has been established in CPTU for on-line tracking, and it is being piloted in two agencies using large part of the budget. To cater for the concerned ministries and agencies, this MIS needs to be expanded with appropriate linkages to all agencies. Such a system will provide all procurement related data at the national level including a set of performance indicators compatible with the desired outcomes. 9. Information Disclosure & Monitoring: Disclosure of procurement process information is critical to transparency, and as part of the disclosure, procuring entities are to provide data to the CPTU?s MIS. Since MIS data will be available in CPTU?s website, in order to make the best use of data and making the system more transparent and reliable to the stakeholders, involvement of NGOs/ civil society to review, analyze, and publicize the features of MIS data in the media will be considered. This will help provide the government a central source of information and depending on the outcomes/ performance of the agencies, strategic improvement actions may be made. 10. CPTU/ IMED: CPTU with its current staffing and logistics is overburdened with numerous tasks and is simply insufficient to cope with the given mandate of policy making and overseeing/ monitoring implementation of procurement across the country. Also, the linkages of IMED?s other sector units with CPTU is important to compile necessary information for dissemination to the policy makers. This subcomponent is to increase the level of capacity of IMED, and in particular CPTU, to take the lead in carrying out its mandated activities and monitor its results. Component 3: Introducing e-government Procurement (e-gp) 11. Given the country environment and recent progress in procurement reform, introducing an e-government procurement system allowing electronic submission of bids is likely to reduce the threats and other problems created by powerful syndicates. E-government procurement has many other advantages and, for those countries using it, has proved to be an effective tool in fighting corruption, producing transparency and significant savings. Recognizing the need for some quick results but also recognizing the risks associated with the level of technological capacity or organization and expertise within the public and private sectors, the results of an ongoing study provides ground that e-government procurement can be implemented slowly in phases. The plan will facilitate the government in achieving the objectives of greater transparency, greater efficiency, value-for-money, improved quality of public procurement management, and enhanced prospects for the business sector. 12. e-gp will be conducted through a common web site that allows registration of suppliers and buyers, and public access to procurement policy, guidelines, procurement opportunities, process stages and procurement outcomes (i.e. who won the contracts, cost, duration). Thus, the system will be designed and integrated centrally through CPTU with portals for each ministry with independent access. Compatibility of the system with the CPTU?s MIS will be an essential consideration. Detailed components are likely to involve: development of single web-based

4 system, formation of e-gp technical support unit, capacity development and training on e-gp for key procuring entities, e-gp awareness campaign, and piloting e-gp. Component 4: Behavioral Change Communication and Social Accountability (BCC & SAc) 13. Social Awareness & NGOs Involvement: This intervention is likely to entail the development and implementation of four separate, but interrelated, public awareness campaigns, targeted at very specific audiences. The areas of interventions are: (a) campaign to rally officials? support for reform (key policy makers, officials, politicians, Member of Parliament), (b) public awareness campaign to educate Bangladeshi society in general about what procurement is and the crucial importance that it has for the proper management of public funds; (c) campaign on social accountability to increase the appreciation of the concept, tools and opportunities of social accountability in public procurement; and (d) behavioral change campaign to promote a change of behavior and mind-set among the members of the community (public officials, bidding community, civil society, politicians, etc.). In addition, for a social accountability movement, it would be necessary for civil society/ NGOs to be trained in procurement practices. The idea of this procurement demystification activity is to promote procurement literacy among civil society/ NGOs including an incentive structure. 14. Public-Private Partnership or Civil Society Monitoring: The creation of a public-private partnership to address the issue of non-governmental/ civil society monitoring of the procurement process as well as outcomes is an important area. We see from early initiatives in Bangladesh that there already exist some agencies in civil society that monitor the government performance in sectors like education and health. Two options are envisaged: (i) civil society organization/ NGO(s) that will be willing to work closely and constructively with CPTU to monitor procurement process, and (ii) a civil society?s Procurement Watch to monitor procurement outcomes on the ground through research, advocacy, training, and coalition building with other NGOs and the media. Technical support and capacity building to conduct workshop/training sessions would come from NGOs/institutes that have been working for some time in the area (for example, Center for Good Governance in Hyderabad, Procurement Watch in the Philippines, etc). Another aspect of this partnership could be to offer a space where the various stakeholders affected by the reform process can come together and discuss procurement reform. 15. Media Professionals: The aim is to provide substantive training to a core group of journalists on public procurement, including the investigative tools to find and bring to light cases of abuse and bad procurement. In order to increase and improve the current coverage of procurement related issues, it would be important to emphasize the social dimension of public procurement? that is, on how properly procured works, goods and services can enhance the wellbeing of the population. D. Project location (if known) The project is located at Dhaka, and it does not involve environmental issues or population likely to be affected. E. Borrower s Institutional Capacity for Safeguard Policies [from PCN]

5 Not applicable F. Environmental and Social Safeguards Specialists Ms Nilufar Ahmad (SASES) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered Yes No TBD Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11) Indigenous Peoples (OP/BP 4.10) Involuntary Resettlement (OP/BP 4.12) Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) Projects in Disputed Areas (OP/BP 7.60) Environmental Category: C - Not Required III. SAFEGUARD PREPARATION PLAN A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared: 11/23/2006 B. For simple projects that will not require a QER, the target date for preparing the PAD-stage ISDS: 02/08/2007 C. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing 1 should be specified in the PAD-stage ISDS. Not applicable IV. APPROVALS Signed and submitted by: Task Team Leader: Mr Zafrul Islam Approved by: Regional Safeguards Coordinator: Mr Frederick Edmund Brusberg 09/18/2006 Comments: Sector Manager: Ms Els Hinderdael-Forger Comments: 1 Reminder: The Bank s Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in-country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.

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