Move to raise ADP block grant for UP

Under the project regular ward meetings, open budgeting and performance assessment will be held to ensure local government's accountability, WB officials in Dhaka said yesterday.

"Government is now drafting a project document, which will be shared with the WB and other interested donors at the end of January," a WB statement said.

It also said the WB is likely to plan a pre-appraisal mission in the first week of February and accordingly, will assist the government in the finalisation of the LGSP.

The government has started the process of strengthening local governments, particularly UPs, the lowest tier of administration, to achieve the goals of the poverty reduction strategy papers (PRSP).

The WB said local government in Bangladesh is weak, especially in rural areas.

"The UPs have limited resources, little revenue raising authority, and almost no influence on how the central government uses its resources in their areas," it said.

The development objective of the LGSP is to strengthen inclusive and accountable institutions of local governance, through empowering communities to make choices on their development priorities and basic local services needs, and empowering local governments to respond to community priorities.

These objectives are expected to be pursued through four components: (i) provision of fiscal transfers and incentive grants to local governments; (ii) institutionalising local accountability; (iii) capacity building and institutional support to strengthen formal and informal local institutions; and (iv) policy evaluation.

The Local Government Division (LGD) of the Ministry of Local Government, Rural Development and Cooperatives (LGRD&C) has piloted a number of initiatives on local government reform, with active participation of citizens.

WB said in the successful Sirajganj Local Government Development (SLGD) Project, for example, grants are provided to UPs to implement development plans and provide essential services such as access roads, clean drinking water, culverts, drainage, schools, health facilities, market structures and passenger sheds.

These are resulting in improved access to neighbouring villages, local markets and other public facilities, decreased travel time and transport costs, improved health conditions, lower school drop out rates and enhanced security, the Bank said.

Construction of SLGD infrastructure takes two to six months and construction costs are estimated to be 25-30% cheaper than normal construction costs for the same infrastructure through national government agencies and private contractors.

Following the principles of this fiscal system, the GoB is now developing the nationwide LGSP to strengthen the capacity of local governments to manage service delivery, with active citizen engagement.

To design and oversee the preparation of this programme, the GOB has constituted a group in the LGD, led by the Director General, Monitoring, Evaluation and Inspection (MEI) Wing of the Local Government Division.