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The World Bank (WB) would provide US$250 million funds to facilitate improving transparency, accountability, and efficiency of some key government agencies in Bangladesh.
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The WB board on Saturday approved the loan to support the ongoing reform initiatives of the interim government, aimed at modernising crucial public sector functions.
These are essential for improving data transparency, domestic revenue mobilisation, public investment management, public procurement, and financial oversight, according to a statement issued on Saturday.
Under the Strengthening Institutions for Transparency and Accountability (SITA) project, five key government agencies – the Bangladesh Bureau of Statistics (BBS), the National Board of Revenue (NBR), the Planning Division, the Bangladesh Public Procurement Authority (BPPA), and the Office of the Comptroller and Auditor General (CAG) – would reform their operational activities.
The project is expected to streamline operations and improve service delivery within the five agencies and enhance access to reliable public statistics, 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 WB loan will also help improve the efficiency and accountability of public spending, ensuring that resources are utilised effectively for the benefit of all citizens.
It will develop a second generation of electronic government procurement (e-GP) and broaden its scope. The project will also help strengthen and digitise public audit.
Gayle Martin, the World Bank’s Interim Country Director for Bangladesh, on Saturday said: “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.”
This project will help improve the quality and accessibility of public services and thus enhance public trust in government institutions, she added.
According to the statement, the Bangladesh government and the WB are also preparing a development policy credit scheduled for the bank’s board discussion later this month.
Such credit is expected to support transparency and accountability in domestic revenue mobilisation, the banking sector, data production and dissemination.
Souleymane Coulibaly, World Bank Lead Country Economist and Task Team Leader for the project, said: “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.”
