World Bank approves $250m to bolster public sector performance in Bangladesh

The World Bank's Board of Executive Directors have approved $250 million in financing to bolster public sector performance in Bangladesh by fostering transparency, accountability, and efficiency in key government agencies. 

The Strengthening Institutions for Transparency and Accountability (SITA) project will support the ongoing reform initiatives of the interim government of Bangladesh to modernise key public sector functions, by enhancing data transparency, domestic revenue mobilisation, public investment management, public procurement, and financial oversight, reads a World Bank press release issued yesterday. 

The project will strengthen governance structures and capacities in five key government agencies, namely the Bangladesh Bureau of Statistics, the National Board of Revenue, the Planning Division, the Bangladesh Public Procurement Authority, and the Office of the Comptroller and Auditor General. 

"The investment will leverage digitisation of business processes to help improve transparency and reduce corruption by supporting Bangladesh in modernising public institutions capable of serving an emerging economy," said World Bank Interim Country Director for Bangladesh Gayle Martin. 

"This project will help improve the quality and accessibility of public services and thus enhance public trust in government institutions."

The project will streamline operations and improve service delivery within the targeted agencies, enhancing access to reliable public statistics that are crucial for transparent and accountable decision-making and policy formulation. 

It will help modernise tax administration and increase tax compliance, thereby improving much-needed revenue mobilisation and fiscal sustainability. 

The project will develop a second generation of electronic government procurement (e-GP) and broaden its scope. It will also help strengthen and digitise public audits.

The World Bank and the interim government are also preparing a development policy credit scheduled for the World Bank Board discussion later this month. It would support transparency and accountability in domestic revenue mobilisation, the banking sector, data production and dissemination, public investment management and procurement, audit and accountability, and the delivery of social programmes. 

The SITA project will complement these activities and help build the institutional capacity necessary for implementing these important reforms. 

"By taking a holistic approach covering five critical public institutions, the project will boost government effectiveness, which is a key ingredient for sustainable economic growth," said World Bank Lead Country Economist Souleymane Coulibaly, also the task team leader for the project. 

"This project and the proposed development policy credit would be complementary and provide the government both the necessary hardware and software for improving public financial management and public service delivery," he added.