Dhaka: The World Bank will provide US$ 34.5 million additional assistance to Bangladesh for its on-going Second Public Procurement Reform Project (PPRP II).

The additional financing will help to scale up the electronic procurement (e-GP) and on-line procurement performance monitoring in key public agencies.

The government and World Bank today signed a financial agreement in this regard.

Abul Kalam Azad, Secretary of Economic Relations Division, (ERD) and Johannes Zutt, WB Country Director, formally signed the agreement paper at ERD in the capital city's Sher-e-Banglanagar area.

Bangladesh has been steadily improving its procurement environment since 2002 with the support of two consecutive World Bank financed projects.

PPRP-II has piloted electronic procurement in the four government agencies that accounted for more than half of the total government procurement. These are: Roads and Highways Department, Local Government Engineering Department, Rural Electrification Board and Bangladesh Water Development Board.

Since PPRP-II piloted electronic procurement and online procurement performance monitoring systems, 65 percent small value contracts at decentralized levels were awarded within initial bid validity period in 2012, up from only 10 percent in 2007. Cent percent of bids invitations are now published in newspaper, up from 70 percent in 2005.

Johannes Zutt said: "The Government of Bangladesh has made progress in improving its procurement in recent years, and the World Bank continues actively to support the Government in this effort."

The additional financing will deepen electronic procurement at these four agencies and also scale up capacity development in 20 more agencies, covering health, education, power and public works.

Further expansion of procurement performance monitoring system (PROMIS) will enable improved efficiency of government bidding.

Within the next three years, it is expected that the four key agencies will have cent percent implementation of on-line procurement performance monitoring system.

With this additional financing, the World Bank is providing a total support of US$ 58.6 million for the Public Procurement Reform Project-II.

"The additional financing is a reflection of Government's vision of digital Bangladesh," said Abul Kalam Azad. The credit from the International Development Association (IDA), the World Bank's concessional lending arm, has 40 years to maturity, including a 10-year grace period; and carries a service charge of 0.75 percent.

Ends/AMA/10/06/13