The World Bank (WB) has identified three projects, funded by the global lender, as problematic and sought necessary steps to ensure their delivery and implementation before June 2017, officials said.
"At present, several financial sector projects are on critical path, and our teams need to focus on ensuring delivery and implementation before June 2017," the WB said recently in a letter sent to the Economic Relations Division (ERD).
Earlier, the ERD sent a letter to the WB on December 08 last, requesting International Development Association (IDA) support to Palli Karma-Sahayak Foundation (PKSF) through a proposed project titled promoting micro-enterprise to expedite poverty reduction (PMEPR).
The WB recently replied to the letter sent by the ERD secretary. The lender in its letter said, "Given the role of the micro-enterprise sector as a major generator of jobs, especially for low-income citizens and the large shortfall in the supply of adequate financing for this sector, we also attach great importance to these proposed initiatives for promoting inclusive growth in Bangladesh."
The modernisation of state-owned financial institutions project was approved by the WB board on June 30 in 2016, but has not been made effective yet, awaiting DPP (Development Project Proforma) processing and the Executive Committee of the National Economic Council (ECNEC) approval in order to proceed with implementation. The total budget for the project will be US$ 150 million.
The project will improve performance of the state-owned banks that together account for 30 per cent of total banking sector assets by automating the business and transaction process.
The project will implement a modern information technology (IT) infrastructure project to support stronger cyber security, centralised processing, branch connectivity, an enterprise-wide email system and ATM network.
It will further help improve bank data quality, develop better financial reporting systems and strengthen internal resource management and control, including staff training.
The insurance sector development project (ISDP) is now awaiting DPP processing in order to proceed with negotiations. Some US$ 65 million will be expended for the project.
The objective of the project is to strengthen the institutional capacity of the sector regulator and the state-owned insurance corporations for enhancing insurance coverage in the country in the present context. Besides, the investment promotion and financing facility project-II is awaiting a special project evaluation committee (SPEC) meeting, a non-concessional loan committee meeting, and DPP processing in order to proceed with negotiations.
The global lender has recently selected four projects that include the central bank's IPFF-II to provide US$ 300 million worth of funds. The BB is the implementing agency of the project.
"We will look forward to partnering with PKSF to develop the proposed PMEPR project for the fiscal year 2018, once greater progress has been made on the above projects," the WB letter said.
Despite several attempts over phone, secretary (in-charge) of the ERD Kazi Shofiqul Azam could not be reached for his comments in this regard.
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