Public Sector Development Project

Preparation, Approval and Revision Process

Mantu Kumar Biswas
Joint Chief
Ministry of Water Resources
Bangladesh Secretariat
 What is a Project
A planned piece of work that has a specific goal,
purposes, objectives and output and that usually
requires certain inputs and specific time;

Logical Framework of a project:

Goal
Purpose/Objectives
Output
Input
 Types of projects
Investment
Investment Projects are three types
Completely Government own funded project;

Development Partners funded project (which may include

or not include GOB fund);

Organizations own funded project (Autonomous

Organizations)
 Types of Project
Technical Assistance Project (TA Project)
TA projects are three types
Development Partners/ GOB or both funded TA
project under public sector;

Development Partners funded Regional TA project;

Development Partners funded TA project under

private sector;
 Types of Project
In addition to the above types of investment and
technical assistance projects, we have another two
types of projects in our planning process :

Survey/Feasibility Study Project under

development budget;
Specific types programme under revenue budget:
 Types of Project
Investment Project
Projects having mainly physical components, which we
termed as capital investment components such as
construction of power stations, Industries, buildings,
roads, highways, culverts and bridges etc which usually
have physical existence;

Having or not having TA components;

Includes in the ADP as main programme;
 Types of projects
Technical Assistance
Improvement of institutional capacity, transfer
of technology and development of human
resources, including;
Consultancies,
Local/ foreign training/ fellowship,
Technological services of experts etc;
 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)
 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;
 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;
 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;
 Investment Project
Approval Process

Major criteria for appraisal in the Planning

Commission
a. Relevancy of the project with the national priority
b. Overall sectoral allocation as well as MTBF and
existing projects of the agency;
c. Relevancy of the project with the line of 6th five
years Plan, Sectoral Plan and other National
Documents;
 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;
 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
 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
 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
 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 ;
 Summary of Approval Process and
Time line for Investment Project
Steps
Steps of DPP
Steps
Preparation
of DPP Preparation
and Approval
and Approval
Specific time
Specific
limit given
time limit
in the
given
planning
in the
No. Process planning Process
DPP1 prepares
DPP by IA and by
prepares submit to submit
IA and the Ex. to the Ex.
Ministry /Div.
Ministry /Div.
Ex. 2Ministry/Div.
Ex. Ministry/Div.
scrutinizesscrutinizes
the DPP the DPP
No time limit
Nofor
time
thelimit
Ministry/
for theDiv.
Ministry/
after
through Project
throughScrutiny
ProjectCommittee
Scrutiny Committee
(PSC) receiving
(PSC) the
Div.DPP
afterfrom
receiving
IA. the DPP
of the Ministry/Div.
of the Ministry/Div. from IA.
If project
3 requires
If projectmanpower, Executing Executing
requires manpower, 15 days after
15 receiving
days afterthe proposal
receiving the
Ministry send s thesend
Ministry DPPsto theDPP to the Manpower
the ( Manpower committee should
proposal provide
( Manpower
ManpowerReviewReviewCommittee
CommitteeofofFinance
FinanceDivision
their specific
committee
recommendation
should provide
within the
Division specific time)
their specific recommendation
IA revised/re-casted the DPP as per within
No time limit the specific time)
for IA
recommendation
4 of the Manpower
IA revised/re-casted the DPP as per No time limit for IA
Review Committee
recommendation of the Manpower
Review Committee
 Summary of Approval Process and
Time line for Investment Project
Step Steps of DPP Preparation and Approval Specific time limit given in
No. the planning Process
5 After receiving the updated DPP from IA, Ex. 10 days after receiving the
Ministry/Div. sends the DPP to the Planning DPP from IA
Commission
6 Planning Commission examine the DPP and if 30 days after receiving the
the project not accepted as per criteria of the DPP from Ministry/Div.
government , Planning Commission returns the
DPP to the Ex. Ministry/Div. with specific
comments;
7 Planning Commission may return the DPP to 30 days after receiving the
the Ex. Ministry/Div. for resubmission with DPP from Ministry/Div
specific comments .
8 Ex. Ministry/Div. resubmit the DPP by 25 days after receiving the
incorporating the suggestions/changes DPP from Planning
provided by the Planning Commission; Commission.
 Summary of Approval Process and
Time line for Investment Project
Step Steps of DPP Preparation and Approval
No.
9 Planning Commission submit the
updated/revised/re-casted DPP to the Project
Evaluation Committee (PEC) meeting for
recommendation for approval
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
11 Planning Commission circulate the PEC
committee Meeting Minutes ;
12 Ex. Ministry/Div. resubmit the DPP to the
Planning Commission by incorporating the
suggestions/changes provided by the PEC;
Specific time limit given in
the planning Process
30 days after receiving the
DPP from Ex. Ministry/Div.
PEC committee notice with
working paper should be
issued before seven days
of the meeting.
10 days after PEC Meeting.
25 days after receiving the
PEC meeting minutes from
Planning Commission.
 Summary of Approval Process and
Time line for Investment Project
Step Steps of DPP Preparation and Approval Specific time limit given in
No. the planning Process
13 If any cost rationalization needed as per 15 days after receiving the
decision of the PEC, IMED/Planning minutes of the PEC .
Commission rationalized the project cost.

14 After receiving the rationalized cost from 25 days after receiving the
IMED, Ex. Ministry /Div. updated/revised/re- rationalized cost from
casted the DPP and submit to the Planning IMED.
Commission .
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.
 Summary of Approval Process and
Time line for Investment Project
Step Steps of DPP Preparation and Approval Specific time limit given in
No. the planning Process
16 After receiving the updated DPP as per 10 days after receiving the
decision of the PEC and IMED , Planning Updated DPP from Ex.
commission process the DPP for final approval Ministry.
from
Planning Minister if the project cost within
25 crore;
ECNEC if the project cost 25 crore and
above

Total Time required if we follow all the 185 Working Days ( 6

above steps of approval process month and 05 days)
 Technical Assistance (TA) Project

Implementing Agency (IA)/Executive Agency

prepares Technical Assistant Project Proposal (TPP)
and submits to the Ministry;

The planning Wing/Branch of the Ministry

preliminary examines acceptability of the proposal;

If the Project cost is within TK. 7 Crore, planning

Wing/ Branch of the Ministry submits TPP to the
Departmental Special Project Evaluation Committee
(DSPEC) for recommendation;
 Technical Assistance (TA) Project

Honble Minister of that Ministry approves TPP

on the basis of DSPEC recommendations

This process shall be completed within 30 days

by the Ministry from the receiving date.
 Technical Assistance (TA) Project

If the Project cost is above TK. 7 Crore, Ex.

Ministry sends TPP to the Planning Commission;
Respective Sector Division of PC submits the TPP
to the SPEC meeting;
Minister for Planning approves TPP on the basis
of recommendation of SPEC;
This process shall be completed within 45 days
by PC from the receiving date;
 Revision of projects

Project should not be revised more than two times;

Third time revision allowed incase of special

needed but third time revision should be processed
with the prior approval of the Minister for Ministry
of Planning;
 Why revision

If planned objectives are not achievable and have to

change;
If cost is increased due to currency fluctuation
and/or CDVAT cost changed;
If national pay scale and other allowances are
enhanced;
If physical items cost is increased or decreased;
If design needs to be changed;
 Why revision

If have to include new items, change in personnel,

vehicle and mode of finance
Two times revision allowed
No post facto approval
If need 3rd revision- Prior permission from Planning
Minister for processing
 First revision

Prepare in RDPP format.

Ministry approve Revised Project cost up to 10%
increase/decrease under certain conditions with the
recommendation of DPEC ( objectives, mode of finance,
source of fund, vehicle , manpower unchanged and inclusion
of new Item)
If project cost increase / decrease upto 20%, approval
authority Planning Minister
If project cost above 20% and total project cost within 25
crore, approval authority Planning Minister
All other cases ECNEC approves
 Second revision

If project cost up to 20%, approval authority Planning

Minister
If project cost above 20% and total project cost within 25
crore, approval authority Planning Minister
All other cases ECNEC approve
 Revision of TPP

If Revised Project cost increase/decrease up to 25%; Concern

Minister may approve with the recommendation of DSPEC
If the project cost is increased more than 25%; approval is
done by the Planning Minister.
Two times project revision is allowed
No post facto approval
If need 3rd revision- Prior permission from Planning Minister
for processing
 Second revision

Planning Minister approve it

within 45 days
Any revision with time extension needed the
recommendation of ERD