Economic Relations Division Government of the People's Republic of Bangladesh
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Last updated: 28th October 2014

Wing-2:World Bank

Wing-2 of ERD is mainly responsible for resource mobilization and Aid coordination with World Bank. The wing is headed by an Additional Secretary. He/She has to supervise the follwoing three branches: (1) World Bank-I Branch, (2) World Bank-II Branch and (3) World Bank-III Branch  

 

World Bank is the largest multilateral development partners of Bangladesh. The nature of assistance by World Bank is basically soft loans and grants.  Wing 2 of ERD is charged with the overall responsibility to manage the World Bank aid portfolio for Bangladesh. Responsibility of foreign debt management also falls under this wing. Wing -2 is divided into 3 Branches each headed by a Deputy Secretary/ Deputy Chief. This Wing is headed by an Additional Secretary.

 

The World Bank is one of the world's leading development institutions with a mission to fight poverty and improve living standards of people in the developing world. It provides loans, policy advice, technical assistance, and knowledge-sharing services. IBRD and IDA-together the "World Bank"-are owned by member countries, which preserve the ultimate decision-making power. The World Bank Group today consists of five closely associated institutions. These are:

The International Bank for Reconstruction and Development (IBRD) : IBRD lends to the government of middle income and creditworthy low-income countries. To join the IBRD, countries must first be members of the International Monetary Fund (IMF). Bangladesh has not borrowed any money from IBRD. The International Development Association( IDA) : IDA was established in 1960 to provide concessional loans and grants to world’s poorest countries for their socio-economic developemnt. Countries are selected for IDA assistance on the basis of their income. As per IDA 15 replenishment developing countries with per capita incomes below USD 1065 are eligible for IDA concessional financing. IDA directs a large share of its resources to countries where people earn less than two dollars a day. Membership in IDA is open to all members of IBRD.


IDA credits are given only to governments with a maturity of 40 years including a 10-year grace period. IDA credits have no interest, but it carries an annual service charge of 0.75 percent on the disbursed and outstanding credit. The commitment charge on IDA credit and grant is set annually within a range of 0 - 0.5 percent and determined by the Executive Board before start of a financial year. IDA is financed by a partnership of donors who come together every three years to agree on the resources required to fund IDA’s lending program and to determine the policy objectives that guide IDA’s activities. IDA resources are funded by the contributions of the member countries and replenished every three years. The Fourteenth replenishment covering the period 2005-2008 has just been completed on 30 June 2008. The Board of Governors of the IDA approved the Fifteenth Replenishment of IDA’s resources on April 23, 2008. Under IDA 15, approximately USD 41.6 billion ( SDR 27.3 billion) will be made available as concessional lending to the world’s poorest countries during the period of July 1, 2008 to June 30, 2011.

The International Finance Corporation (IFC): The IFC provides Loans , Equity and Technical assistance to private sector. Membership in the IBRD is a prerequisite for membership in the IFC. Bangladesh became a member of IFC in 1972 and owns 9037 shares amount to 0.40% of total IFC votes. The Multilateral Investment Guarantee ( MIGA) : MIGA provides insurance/guarantee against non-commercial. It also advises member governments on the design and implementation of policies and programmes, and sponsors dialogue between the international business community and host governments on investment issues.

Bangladesh signed and ratified the MIGA Convention in March 1987 and became full member of MIGA.

The International Centre for settlement of Investment Disputes (ICSID) : The ICSID was established under the Convention on the Settlement of Investment Disputes between foreign investors and other host countries. ICSID provides facilities for the conciliation and arbitration of investment disputes between governments and foreign investors. Bangladesh became a signatory to the Convention in 1979. 

 

World Bank’s Lending Policies

IDA project cycle involves project Identification, Preparation, Appraisal, Negotiations and Board Approval followed by Agreement Signing, Implementation Supervision and Evaluation. After project completion, an independent WB unit (Independent Evaluation Group) evaluates the achievement of major objectives and these evaluations are reported directly to the Executive Directors.

Joint Country Strategy (2006-2009)

The World Bank Group has prepared the Country Assistance Strategy (CAS) for Bangladesh, based on the Government’s PRSP, for FY 2005-2008 jointly with the Asian Development Bank, the Department for International Development of UK, and the Government of Japan as part of their commitment to implement the Paris Declaration on Aid Effectiveness. This joint CAS reflects agreement on the country context, the outcomes the four partners plan collectively to support, and the strategies needed to attain these outcomes. The major pillars and outcomes of CAS are i) Improving the Investment Climate ii) Empowering the Poor and iii) Improving the core governance.

 

The CAS includes a total of 25 projects with an indicative World Bank financing to the tune of US $ 2965.50 million.

 

World Bank  Branch -I

World Bank  Branch -I comprises of following three Sections: Section- IDA-1,  Section-IDA-3 and   Section -IDA-4.  Each section deals with the aid mobilization for certain number of assigned ministries/ divisions.  This branch is responsible for the following functions for project loan/grant processing:
   
i. Exploring the possibility of IDA financing for proposed projects of the assigned Ministries/Divisions
ii. Coordinate processing (from the stage of preparation to  pre-appraisal and appraisal), negotiation and signing of  IDA Development Credit Agreement (DCA)/

Development Credit Grant ( DGA)
iii. Processing the Project Preparation Facility (PPF) request for facilitating the preparatory work of the Investment Projects
iv.  Monitor  implementation progress of  on-going projects
v. Coordination and submission of GOB’s Implementation Completion Report (ICR) to World Bank at the completion of the projects
It also looks after Central coordination and management of the  Bank Funded Project named “ Economic Management and Technical Assistance Project (EMTAP)’   It oversees administrative works of Infrastructure Development Company Limited (IDCOL) and Infrastructure Investment Facilitation Centre (IIFC).

 

Section : IDA-1

Section IDA-1 is responsible for fund mobilization for the following Ministries/ Divisions:
Ministry of Industries
Cabinet Division
Chief Adviser’s Office
Ministry of Science and Information & Communication Technology
Ministry of Commerce  
It also deals with central coordination and management work of the  Bank-Funded Project named Economic Management and Technical Assistance Project

(EMTAP)’.   
 
Section: IDA-3
Section IDA-3 is responsible for fund mobilization for the following Ministries/ Divisions:
Ministry of Post and Tele-communication
Ministry of Housing and Public Works
Ministry of Communication
Ministry of Shipping
Ministry of Civil Aviation and Tourism  
Ministry of Information
Ministry of Home Affairs
Ministry of Local Government, Rural Development and Cooperatives   

Section : IDA-4

Section IDA-4  is responsible for fund mobilization of the following Ministries/ Divisions:

Ministry of Power, Energy and Mineral Resources
Ministry of Textiles and Jute
Ministry of Cultural Affairs
Ministry of Youth and Sports
Ministry of Law, Justice and Parliamentary Affairs
Ministry of Labour and Employment
Ministry of Expatriates’ Welfare & Overseas Employment

It also oversees activities related to Infrastructure Development Company Limited (IDCOL) and Infrastructure Investment Facilitation Centre (IIFC), particularly

processing of the  correspondences between the Organizations, appointment of CEO, formation of Board of Directors and shareholders etc.

Branch: World Bank-II
World Bank Branch -2 comprises the following three Sections:   Section IDA-2, Section IDA-6 and Section IDA-7.  Each section deals with the fund mobilization

for certain number of assigned ministries/ divisions. - This branch is responsible for the following functions for project loan/grant processing: i. Exploring the

possibility of IDA financing for proposed projects of the assigned Ministries/Divisions ii. Coordinate processing (from the stage of preparation to  pre-appraisal and

appraisal), negotiation and signing of  IDA Development Credit Agreement (DCA)/ Development Credit Grant ( DGA) iii. Processing the Project Preparation

Facility (PPF) request for facilitating the preparatory work of the Investment Projects iv. Monitor implementation progress of  on-going projects v. Coordination

and submission of GOB’s Implementation Completion Report (ICR) to World Bank at the completion of the projects -This branch also deals with activities related

to Global Environment Facility (GEF)   


Section: IDA-2  
Section IDA-2 is assigned with fund mobilization for the following ministries:
Ministry of Health and Family Welfare
Ministry of Education
Ministry of Primary and Mass Education
Ministry of Establishment
Ministry of Religious Affairs

Section: IDA- 6

Section IDA-6 is assigned with fund mobilization for the following ministries:
Ministry of Water Resources
Ministry of Land
Ministry of Chittagong Hill Tracts Affairs
 
Section : IDA-7
Section IDA-7 is assigned with fund mobilization for the following Ministries :
Ministry of Agriculture
Ministry of Food and Disaster Management•
Ministry of Fisheries• and Livestock
Ministry of Environment and Forest •
The Section also dealt with activities related to Global Environment Facility (GEF)

Branch: World Bank-III
World Bank-III Branch comprises of following three Sections: Section IDA-8, Section IDA-9 and Section IDA-5. Each section deals with the fund mobilization

for certain number of assigned ministries/ divisions.
This branch is responsible for the following functions for project loan/grant     processing:
i. Exploring the possibility of IDA financing for proposed projects of the assigned Ministries/Divisions
ii. Coordinate processing (from the stage of preparation to pre-appraisal and appraisal), negotiation and signing of IDA Development Credit Agreement (DCA)/

Development Credit Grant ( DGA)
iii. Processing the Project Preparation Facility (PPF) request for facilitating the preparatory work of the Investment Projects
iv. Monitor implementation progress of  on-going projects
v. Coordination and submission of GOB’s Implementation Completion Report (ICR) to World Bank at the completion of the projects
 
Also deals with World Bank/IMF/IFC related policy issues/ administrative matters/meetings / high-level visits /other related coordination matters
Coordinate activities of World Bank Annual Meeting/ Bank Fund Meeting
Coordinate works for holding Poverty Reduction Strategy (PRS) Implementation Forum
Liaison with World Bank for preparation of Country Assistance Strategy (CAS)
Casting vote regarding IDA/MIGA/IBRD/ICSID related matters
Subscription of share/replenishment of fund/maintenance of value in the IBRD/ MIGA/ GEF/ICSID
Private Sector investment related matters of IFC  

Section : IDA-8
Section  IDA-8 is  assigned with fund mobilization for the following Ministries/Division/Secretariat :
Ministry of Finance
Ministry of Planning
Ministry of Defence
Parliament Secretariat
    
World Bank/IMF/IFC related policy issues/ administrative matters/meetings / high-level visits /other related coordination matters
Preparation of briefs and coordination activities of World Bank Annual Meeting/ Bank Fund Meeting
Coordination of works for holding Poverty Reduction Strategy (PRS) Implementation Forum
Liaison with world Bank  for preparation of Country Assistance Strategy (CAS)
Coordinate activities and review policy papers or issues related to  World Bank / IMF/IFC/MIGA/ICSID
Casting vote regarding IDA/MIGA/IBRD/ICSID related matters
Subscription of share/replenishment of fund/maintenance of value in the IBRD/MIGA/GEF/ICSID
Private Sector investment related matters of IFC  

Section: IDA- 9   
Section  IDA-9 is  assigned with fund mobilization of  the following Ministries
Ministry of Social Welfare
Ministry of Women and Children Affairs
 
Section IDA-5*
Section IDA- 5 is assigned with fund mobilization for the following Ministries/ Secretariat:
Ministry of Foreign Affairs
Ministry of Liberation War Affairs
Election Commission Secretariat
Work as a focal point of the wing


* Section- IDA-5 has been recently upgraded as World Bank Branch-4. If authority decides to revert it into a Section again, it will be designated as Section

IDA-5 under the World Bank Branch -3 as earlier.

 

 


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