Adp formulation and planning process 17 07-2018 planning academy

ADP formulation

1. By Dr. Md. Shamsul Arefin Secretary Anti-Corruption Commission Date: 17 July 2018 The Annual Development Program Monday, July 16, 2018 Dr. Md. Shamsul Arefin 1

2. Annual Development Programme (ADP) Operational document of the GoB I ncludes all types of GoB funded and Foreign Aided Projects (both ongoing and newly included). The ADP consists of: T he main investment programme T echnical assistance programme I nstitute’s/agency’s self-financed programme , The programs are sub-divided into the different government sectors. The ADP is published in June and is available to the public.  Monday, July 16, 2018 Dr. Md. Shamsul Arefin 2

3. ADP Formulation A simplified series of steps in the formulation Process of Annual Development Programme The Inter-ministerial “Resource Committee” at the Finance Division estimates the resources availability for the ADP Programming Division of Planning Commission prepares the sector/project wise ADP allocation in consultation with the Sector Divisions, GED of the Planning Commission, sponsoring Ministries and agencies. Programming Division place the draft ADP at the Planning Commission Meeting for finalization Planning Division Submits the final ADP to National Economic Council (NEC) for formal Approval Monday, July 16, 2018 Dr. Md. Shamsul Arefin 3

4. 4 Ministry of Planning : Ministry of Planning Planning Division Planning Commission NEC/ECNEC Planning Division works as the secretariat of the Planning Commission Statistics Division IMED Monday, July 16, 2018 Dr. Md. Shamsul Arefin

5. 5 Structure of Planning Commission Chairperson Hon’ble Prime Minister Vice Chairman Hon’ble Minister for Planning Member Secretary Secretary, Planning Division Member, Socio-Economic Infrastructure Division Member, Programming Division Member, Industries and Energy Division Member, Agriculture, Water Resources and Rural Institution Division Member, Physical Infrastructure Division Member, General Economics Division Monday, July 16, 2018 Dr. Md. Shamsul Arefin

6. 6 ECNEC Composition Hon’ble Prime Minister – Chairperson Minister of Finance– Member Minister of Planning – Member Minister of Agriculture – Member Minister of Labour and Employment – Member Minister of Water Resource – Member Minister of Commerce – Member Minister of Communications – Member Minister of Shipping – Member Ministers / State Ministers of relevant Ministries – Member Officers of assisting ECNEC Cabinet secretary Principal secretary/secretary, office of the Prime Minister Secretaries, Planning, Finance, ERD & IMED All members of the planning Commission & relevant secretaries. Monday, July 16, 2018 Dr. Md. Shamsul Arefin

7. 7 ADP Formulation A simplified series of steps in the formulation Process of Annual Development Programme The Inter-ministerial “Resource Committee” at the Finance Division estimates the resources availability for the ADP Programming Division of Planning Commission prepares the sector/project wise ADP allocation in consultation with the Sector Divisions, GED of the Planning Commission, sponsoring Ministries and agencies. Programming Division place the draft ADP at the Planning Commission Meeting for finalization Planning Division Submits the final ADP to NEC for formal Approval Monday, July 16, 2018 Dr. Md. Shamsul Arefin

8. 8 Project Planning Classification of Projects Development Projects Investment Projects Technical Assistance Projects Minister in charge of Planning is the Approval Authority of Projects Costing up to Tk. 25 Crore ECNEC is the Approval Authority of Projects Costing over Tk. 25 Crore Minister in charge of sponsoring Ministry is the Approval Authority of Projects Costing up to Tk. 7 Crore Minister in charge of Planning is the Approval Authority of Projects Costing over Tk. 7 Crore Self Financed Projects are approved by the Minister in change of the Sponsoring Ministries. Monday, July 16, 2018 Dr. Md. Shamsul Arefin

9. 9 Project Planning (Cont…) A simplified series of steps in Investment Projects Processing / Approval Process Generation of Project idea from sectoral Plans/Five Year Plan/Poverty Reduction Strategy Formulation of Development Project Proposal (DPP) by Executing Agencies Ministries Scrutinize the DPPs Sector Divisions of the Planning Commission Appraise the DPPs Project Evaluation Committee (PEC) Recommends for Approval Minister for Planning Approves Project Costing up to Tk. 25 crore ECNEC approves Projects costing over Tk. 25 crore Approved projects listed into ADP for implementation. Monday, July 16, 2018 Dr. Md. Shamsul Arefin

10. 10 Institutional Linkages of Planning Commission with other Ministries/Divisions/Organizations Planning Commission NEC/ECNEC ERD FD Ministries/ Divisions IMED APD IRD BIDS Statistics Division Monday, July 16, 2018 Dr. Md. Shamsul Arefin

11. 11 ECNEC Composition Hon’ble Prime Minister – Chairperson Minister for Finance– Alternate Chairman Minister for Planning – Member Minister for Agriculture – Member Minister for Labour and Employment – Member Minister for Water Resource – Member Minister for Commerce – Member Minister for Communications – Member Minister for Shipping – Member Ministers / State Ministers for relevant Ministries – Member Officers of assisting ECNEC Cabinet secretary Principal secretary/secretary, office of the Prime Minister Secretaries, Planning, Finance, ERD & IMED All members of the planning Commission & relevant secretaries. Monday, July 16, 2018 Dr. Md. Shamsul Arefin

12. 12 Sectors/Divisions of the Planning Commission Planning Division consists of six divisions (17 Sectors) Programming Division General Economics Division Socio-Economic Infrastructure Division Agriculture, Water Resource and Rural Institution Division Industries and Energy Division Physical Infrastructure Division Each Division is headed by one Member (Secretary), one Division Chief (Additional Secretary), Joint Chiefs and other supporting officials. Monday, July 16, 2018 12 Dr. Md. Shamsul Arefin

13. 13 Project Planning Classification of Projects Development Projects Investment Projects Technical Assistance Projects Minister in charge of Planning is the Approval Authority of Projects Costing up to Tk. 25 Crore ECNEC is the Approval Authority of Projects Costing over Tk. 25 Crore Minister in charge of sponsoring Ministry is the Approval Authority of Projects Costing up to Tk. 7 Crore Minister in charge of Planning is the Approval Authority of Projects Costing over Tk. 7 Crore Self Financed Projects are approved by the Minister in change of the Sponsoring Ministries. Monday, July 16, 2018 Dr. Md. Shamsul Arefin

14. 14 Project Planning (Cont…) A simplified series of steps in Investment Projects Processing / Approval Process Generation of Project idea from sectoral Plans/Five Year Plan/Poverty Reduction Strategy Formulation of Development Project Proposal (DPP) by Executing Agencies Ministries Scrutinize the DPPs Sector Divisions of the Planning Commission Appraise the DPPs Project Evaluation Committee (PEC) Recommends for Approval Minister for Planning Approves Project Costing up to Tk. 25 crore ECNEC approves Projects costing over Tk. 25 crore Approved projects listed into ADP for implementation. Monday, July 16, 2018 Dr. Md. Shamsul Arefin

15. 15 ADP Formulation A simplified series of steps in the formulation Process of Annual Development Programme At the initiative of the programming division of the Planning Commission, the Inter-ministerial “Resource Committee” at the Finance Division estimates the resources availability for the ADP Programming Division of Planning Commission prepares the sector/project wise ADP allocation in consultation with the Sector Divisions and GED of the Planning Commission and sponsoring Ministries and agencies. Programming Division place the draft ADP at the Planning Commission Meeting for finalization Planning Division Submit the final ADP to NEC for formal Approval Monday, July 16, 2018 Dr. Md. Shamsul Arefin

16. DPP/TPP/FSP Format Investment Project Development Project Proforma (DPP) Technical Assistance Project Technical Assistance Project Proforma (TPP) Survey / Feasibility Study Project Survey/ Feasibility Study Project Proforma (FSP) Monday, July 16, 2018 16 Dr. Md. Shamsul Arefin

17. Project Formulation and Approval Process Executive Agency/Division/ Ministry prepares the DPP for investment project; Project Scrutiny/Examination Committee (PSC) chaired by the Secretary of the respective Division/Ministry reviews the project proposal; If the project is accepted by the PSC and the project has the provision of manpower, than the project proposal sends to the Manpower Review Committee of Finance Division for approval of project manpower; Monday, July 16, 2018 17 Dr. Md. Shamsul Arefin

18. Project Formulation and Approval Process Manpower Review Committee of Finance Division must provide their recommendations regarding manpower within 15 days after receiving the proposal of project manpower; Implementing Agency revised /re-casted the DPP as per recommendation of the manpower committee and resubmit the DPP to the respective ministry/ Division; If needed FIRR and EIRR calculation sheet attached with the DPP; Monday, July 16, 2018 18 Dr. Md. Shamsul Arefin

19. Project Formulation and Approval Process For all road transport sector project, Project Appraisal Framework (PAF), Project Appraisal Report (PAR) and Appraisal Summary Table (AST), Hydrological and Morphological study report ( if the project is 100 m above bridge project) must be attached with the DPP; Executing Ministry submit the re-casted DPP to the Planning Commission within 10 days after receiving the DPP from Implementing Agency; The concerned Wing/ Sector-Division of planning Commission examines the DPP and prepares Working Paper for Project Evaluation Committee (PEC) meeting; Monday, July 16, 2018 19 Dr. Md. Shamsul Arefin

20. Investment Project Approval Process Major criteria for appraisal in the Planning Commission Relevancy of the project with the national priority Overall sectoral allocation as well as MTBF and existing projects of the agency; Relevancy of the project with the line of 6 th five years Plan, Sectoral Plan and other National Documents; Monday, July 16, 2018 20 Dr. Md. Shamsul Arefin

21. Investment Project Approval Process Major criteria for appraisal in the Planning Commission d . Impact on revenue budget after completion of the project; e. Examination of the project duration f. Consideration of necessary fund mobilization etc g. If the project is a next phase of an earlier project then the Evaluation Report of previous phase prepared by IMED/any other organizations is needed to be considered; Monday, July 16, 2018 21 Dr. Md. Shamsul Arefin

22. Investment Project Approval Process If the Planning Commission (PC) is not satisfied with the proposal, PC may return it to the Ministry/ Division within 30 working days with specific comments; Incorporating the recommendations of PC, DPP must be submitted to the Planning Commission within 25 working days Planning commission submits DPP to the project evaluation Committee For PEC meeting notice needs to be issued at least seven working days before the meeting Monday, July 16, 2018 22 Dr. Md. Shamsul Arefin

23. Investment Project Approval Process Minutes of the PEC meeting have to be issued within 10 working days of the meeting If Recast is needed the Ministry will send the recast DPP to PC by reflecting recommendations of the PEC If PEC recommends cost rationalization by IMED, IMED needs to do it within 15days and sends it the ministry Monday, July 16, 2018 23 Dr. Md. Shamsul Arefin

24. Investment Project Approval Process Ministry sends DPP to the Agency for recast, Ministry and Agency normally get 25 days for recasting the DPP but for any specific cause get maximum 40 days. If recast DPP is not sent within 40 days then the project will be automatically void. After receiving recast DPP/ since Issuing date of minutes, Sector Division place the DPP to ECNEC or Planning Minister for approval with in 10 days Monday, July 16, 2018 24 Dr. Md. Shamsul Arefin

25. Investment Project Approval Process If the total Project cost is within TK. 25 core, approving authority is given to the Honorable Minister for Planning; If the total project cost is more than TK. 25 core, approving authority Executive Committee of the National Economic Council (ECNEC); An approval order for each DPP has to be issued within 3 days ; Monday, July 16, 2018 25 Dr. Md. Shamsul Arefin

26. Summary of Approval Process and Time line for Investment Project Steps of DPP Preparation and Approval Specific time limit given in the planning Process DPP prepares by IA and submit to the Ex. Ministry /Div. Ex. Ministry/Div. scrutinizes the DPP through Project Scrutiny Committee (PSC) of the Ministry/Div. No time limit for the Ministry/ Div. after receiving the DPP from IA. If project requires manpower, Executing Ministry send s the DPP to the Manpower Review Committee of Finance Division 15 days after receiving the proposal ( Manpower committee should provide their specific recommendation within the specific time) IA revised/re-casted the DPP as per recommendation of the Manpower Review Committee No time limit for IA Steps No. Steps of DPP Preparation and Approval Specific time limit given in the planning Process 1 DPP prepares by IA and submit to the Ex. Ministry /Div. 2 Ex. Ministry/Div. scrutinizes the DPP through Project Scrutiny Committee (PSC) of the Ministry/Div. No time limit for the Ministry/ Div. after receiving the DPP from IA. 3 If project requires manpower, Executing Ministry send s the DPP to the Manpower Review Committee of Finance Division 15 days after receiving the proposal ( Manpower committee should provide their specific recommendation within the specific time) 4 IA revised/re-casted the DPP as per recommendation of the Manpower Review Committee No time limit for IA Monday, July 16, 2018 26 Dr. Md. Shamsul Arefin

27. Summary of Approval Process and Time line for Investment Project Step No. Steps of DPP Preparation and Approval Specific time limit given in the planning Process 5 After receiving the updated DPP from IA, Ex. Ministry/Div. sends the DPP to the Planning Commission 10 days after receiving the DPP from IA 6 Planning Commission examine the DPP and if the project not accepted as per criteria of the government , Planning Commission returns the DPP to the Ex. Ministry/Div. with specific comments; 30 days after receiving the DPP from Ministry/Div. 7 Planning Commission may return the DPP to the Ex. Ministry/Div. for resubmission with specific comments . 30 days after receiving the DPP from Ministry/ Div 8 Ex. Ministry/Div. resubmit the DPP by incorporating the suggestions/changes provided by the Planning Commission; 25 days after receiving the DPP from Planning Commission. Monday, July 16, 2018 27 Dr. Md. Shamsul Arefin

28. Summary of Approval Process and Time line for Investment Project Step No. Steps of DPP Preparation and Approval Specific time limit given in the planning Process 9 Planning Commission submit the updated/revised/re-casted DPP to the Project Evaluation Committee (PEC) meeting for recommendation for approval 30 days after receiving the DPP from Ex. Ministry/Div. 10 If 30 days over after receiving the DPP from the ex. Ministry, Planning Commission can not return the DPP to the Ex. Ministry. Planning Commission should process the DPP for PEC with specific comments PEC committee notice with working paper should be issued before seven days of the meeting. 11 Planning Commission circulate the PEC committee Meeting Minutes ; 10 days after PEC Meeting. 12 Ex. Ministry/Div. resubmit the DPP to the Planning Commission by incorporating the suggestions/changes provided by the PEC; 25 days after receiving the PEC meeting minutes from Planning Commission. Monday, July 16, 2018 28 Dr. Md. Shamsul Arefin

29. Summary of Approval Process and Time line for Investment Project Step No. Steps of DPP Preparation and Approval Specific time limit given in the planning Process 13 If any cost rationalization needed as per decision of the PEC, IMED/Planning Commission rationalized the project cost. 15 days after receiving the minutes of the PEC . 14 After receiving the rationalized cost from IMED, Ex. Ministry /Div. updated/revised/re-casted the DPP and submit to the Planning Commission . 25 days after receiving the rationalized cost from IMED. 15 If Ex. Ministry/ Div. fails to submit the updated DPP to the Planning Commission within 40 days after receiving the minutes of the PEC and cost rationalization minute of IMED , the approval process of the project must be considered automatically void, and this project will not be considered further for approval. Monday, July 16, 2018 29 Dr. Md. Shamsul Arefin

30. ADP 2018-2019 Size of the ADP 2017-18: BDT 1,53,331  crore Local Resource : BDT 96,331 crore (63%) Foreign aid/project assistance : BDT 57,000 crore   (37%) ADP 2017-2018 Size of the ADP 2017-18: BDT 1,80,869.17  crore Local Resource : BDT 1,19,810.95  crore (66%) Foreign aid/project assistance : BDT 61,058.22 crore   (34%) Dependency on foreign aid is decreasing year by year ADP 2017-2018 & 2018-2019 Monday, July 16, 2018 Dr. Md. Shamsul Arefin 30

31. Sectoral Allocation in Annual Development Programme Monday, July 16, 2018 Dr. Md. Shamsul Arefin 31

32. Thank you for listening Dr. Md. Shamsul Arefin Monday, July 16, 2018 32