WB project for municipalities doing well with 8.82 lakh beneficiaries

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DHAKA, March 28, 2018 (BSS) – The World Bank (WB) supported Municipal Governance and Services Project (MGSP) is performing well with the total number of its direct beneficiaries reaching 8.82 lakh by February 20.

This was revealed at a mid-term review of the project carried out by the World Bank. The project is expected to be completed by June 2020.

The WB review said, “The project is making progress towards achieving its objectives.”

Under the improved service delivery objective, as of December 15, 2017, about 670,000 people have been estimated as benefited directly from completed Year 1, 2 and 3 sub-projects.

The number of beneficiaries is expected to increase substantially in the next two years, when the larger infrastructure sub-projects will be implemented.

The number of direct project beneficiaries is now 8,82,000 (till February 20, this year) while the final target of raising the project beneficiaries is at 34,30,000.

The target of female project beneficiaries has already exceeded the target of 45 percent and currently rose to 49.30 percent.

Under the project, so far some 440 kilometers of roads were constructed or rehabilitated by February 20, this year while the ultimate target of constructing or rehabilitating roads is 640 kilometers.

Besides, some 112.89 kilometers of drainage was constructed or rehabilitated by February 20, this year against the completion target of 300 kilometers.

During this period, some 22 revenue generating facilities were constructed or rehabilitated while the project end target is 70.

As of February 25, 2018, MGSP disbursement was at 34 percent. The project was effective on April 6, 2014 and will close on June 30, 2020.

Out of the overall financing of $410 million, the World Bank has so far disbursed 34 percent of the overall financing amounting $129.61 million while $252.84 million remains undisbursed.

The project was restructured on May 30, 2017 to adjust project design in line with the capacities in Local Government Engineering Department (LGED) and Bangladesh Municipal Development Fund (BMDF) as well as in the participating municipalities.

In terms of improved municipal governance, the review report said about 24 Urban Local Bodies (ULBs) out of 26 demonstrated improvements and achieved an aggregate rating of at least 60 percent in key performance targets for the first Performance Assessment that was completed in July 2017.

The BMDF achieved the target for the loan repayment ratio of 84 percent. The report said the project’s overall Implementation Progress (IP) is moderately satisfactory while the overall risk rating is moderate.

Analyzing the risk-rating tools of the project, it was found that the political and governance aspects were substantial, the macroeconomic situation was moderate, sector strategies and policies were moderate, technical design of project or program was substantial, institutional capacity for implementation and sustainability was substantial, the fiduciary was moderate, environment and social aspects were substantial and stakeholders were moderate.

The objective of the Municipal Governance and Services Project for Bangladesh is to improve municipal governance and basic urban services in participating Urban Local Bodies (ULBs), and to improve recipient’s capacity to respond promptly and effectively to an eligible crisis or emergency.

There are four components to the project and the first component is municipal governance and basic urban services improvement.

The second component is the Bangladesh Municipal Development Fund’s (BMDF) demand-based financing for urban services.

The third component is the capacity building and implementation support.

Finally, the fourth component is the contingent emergency response.