49

 For FY 2015 – 2016 

 

 

 

Draft Operational Manual Urban Resilience Project

UUrban Resilience ProjectComponent A: Reinforcing the Country’s Emergency Management

Component B: Vulnerability Assessment of Critical and Essential Facilities

Component C: Improved Construction, Urban Planning, and Development

Component D: Project Coordination, Monitoring, and Evaluation

Component E: Contingent Emergency Response

Government of People’s Republic of Bangladesh

Dhaka North City Corporation, Ministry of Local Government, Rural Development & Co-operatives

RajdhaniUnnayanKartipakkha, Ministry of Housing & Public Works

Department of Disaster Management, Ministry of Disaster Management & Relief

Project Coordination & Monitoring Unit, Programming Division, Ministry of Planning

50

List of Contents 1.  STRATEGIC CONTEXT ..................................................................................................................................58 

1.1  THE CHANGING SCENARIO .............................................................................................................................58 1.2  DISASTER RISK REDUCTION AND DEVELOPMENT ........................................................................................58 1.3   BANGLADESH’S PREDICAMENT ......................................................................................................................59 

2.  BANGLADESH URBAN RESILIENCE PROJECT (URP) .........................................................................59 

2.1  BACKGROUND ..................................................................................................................................................59 2.2  PROJECT OBJECTIVE AND PHASES .................................................................................................................60 

3.  PROJECT DESCRIPTION ...............................................................................................................................61 

3.1  COMPONENT A: REINFORCING THE COUNTRY’S EMERGENCY MANAGEMENT RESPONSE CAPACITY – 61 

US$110 MILLION .............................................................................................................................................61 3.1.1 Component A1: Renovate and Outfit National-Level Disaster Risk Management (DRM) ...................65 Facilities (US$ 2.3M) ...........................................................................................................................................65 3.1.2 Component A2: Build, Renovate and Outfit Local-Level City Corporation and FSCD DRM ..............67 Facilities (US$8.0 M) ...........................................................................................................................................67 3.1.3 Component A3: Supply, Install and Integrate Specialized ICT Equipment for DRM and ....................71 Emergency Response within the National-Level and Local-Level Agencies (US$ 47.5M).............................71 3.1.4 Component A4: Supply Specialized Search and Rescue Equipment to Local-Level Agencies..............74 Involved in DRM (US$ 39.5 M)...........................................................................................................................74 3.1.5 Component A5: Provide Training, Exercises and Drills (TED) to National-Level and Local-.............76 level Agencies Involved in DRM (US$ 12.7M) ...................................................................................................76 

3.2  COMPONENT B: VULNERABILITY ASSESSMENT OF CRITICAL AND ESSENTIAL FACILITIES AND LIFELINES –...79  US$12 MILLION ...............................................................................................................................................79 

3.2.1 Component B1: Conduct a Vulnerability Assessment of Critical and Essential Facilities and ............80 Lifelines (US$ 6.6M) ............................................................................................................................................80 3.2.2 Component B2: Support the Development of a Risk-Sensitive Land Use Planning Practice................82 

3.3  COMPONENT C: IMPROVED CONSTRUCTION, URBAN PLANNING, AND DEVELOPMENT –US$ 41 MILLION ..85 3.3.1 Component C1: Create and Operationalize an URU in RAJUK (US$ 23.4M).......................................86 3.3.2 Component C2: Establish an Electronic Construction Permitting System (US$ 8.7M) ........................89 3.3.3 Component C3: Set Up a Professional Accreditation Program for Engineers, Architects ....................91 and Planners (US$ 4.7M) ....................................................................................................................................91 3.3.4 Component C4: Improve Building Code Enforcement within RAJUK Jurisdiction (US$ ....................93 4.2M) .....................................................................................................................................................................93 

3.4  COMPONENT D: PROJECT IMPLEMENTATION, MONITORING, AND EVALUATION – US$ 10 MILLION .....95 3.5  COMPONENT E: CONTINGENT EMERGENCY RESPONSE – US$ 0 MILLION .................................................97 

4.  IMPLEMENTATION.........................................................................................................................................97 

4.1   PROJECT IMPLEMENTATION STRUCTURE .....................................................................................................97 4.2  PROJECT IMPLEMENTATION ARRANGEMENTS AND RESPONSIBILITIES....................................................101 4.3  MONITORING AND EVALUATION ..................................................................................................................102 4.4  SUSTAINABILITY ............................................................................................................................................103 

4.4.1 Physical Sustainability ..............................................................................................................................103 4.4.2 Financial Sustainability............................................................................................................................103 4.4.3 Institutional Sustainability .......................................................................................................................103 

5.  ECONOMIC ANALYSIS.................................................................................................................................103 

6.  FINANCIAL MANAGEMENT.......................................................................................................................105 

7.  PROCUREMENT .............................................................................................................................................106 

8.   ENVIRONMENT (INCLUDING SAFEGUARDS) ......................................................................................112 

9.   SOCIAL (INCLUDING SAFEGUARDS)......................................................................................................113 

10.  INSTITUTIONAL SETUP FOR SAFEGUARDS ........................................................................................114 

11.  INDICATIVE ELIGIBLE EXPENDITURE .................................................................................................115 

51

12.  NON-ELIGIBLE EXPENDITURE.................................................................................................................115 

13  COST ESCALATION AND RE-APPROPRIATION ..................................................................................116 

14.   AMENDMENT..................................................................................................................................................116 

ANNEXURE I..............................................................................................................................................................117 

OPERATIONAL RISK ASSESSMENT FRAMEWORK (ORAF)......................................................................117 

ANNEX II: GOVERNANCE AND ACCOUNTABILITY ACTION PLAN (GAAP)..........................................66 

ANNEX III .....................................................................................................................................................................70 

FINANCIAL MANAGEMENT MANUAL ...............................................................................................................70 

1.  INTRODUCTION...............................................................................................................................................71 

2.  OBJECTIVES OF PROJECT FINANCIAL MANAGEMENT SYSTEM..................................................71 

3.  SOURCE OF FINANCING (JULY 2015 TO JUNE 2020) ............................................................................71 

4.  PROJECT FINANCING ALLOCATIONS DISBURSEMENT, REPORTING AND AUDITING .........72 

4.1 OPERATING COSTS UNDER PROJECT MANAGEMENT..................................................................................72 4.2 FM ARRANGEMENTS (FLOW OF FUNDS AND DESIGNATED ACCOUNT).....................................................72 4.3 DISBURSEMENT..............................................................................................................................................72 4.4 ACCOUNTING AND REPORTING ....................................................................................................................73 4.5 AUDIT ARRANGEMENTS ................................................................................................................................73 

4.5.1 External Audit .............................................................................................................................................73 4.5.2 Internal Audit ..............................................................................................................................................73 

5.  SPENDING MONEY UNDER OPERATING COST.....................................................................................73 

5.1  NATURE OF OPERATING COST........................................................................................................................73 5.2  RECORD KEEPING ...........................................................................................................................................73 

6.  FINANCIAL AND ACCOUNTING ACTIVITY CYCLE.............................................................................74 

6.1   ROUTINE FINANCIAL AND ACCOUNTING ACTIVITY CYCLE.........................................................................74 6.2   BUDGET PREPARATION, SUBMISSION OF ADP/RADP..................................................................................75 6.3   EXPENDITURE AUTHORIZATION AGAINST RPA............................................................................................76 6.4   ALLOCATION OF FUND ....................................................................................................................................76 

Withdrawal/Disbursement of Funds from IDA.............................................................................................76 6.5   INTERNAL CONTROLS .....................................................................................................................................77 

6.5.1 Definition and Purpose ..............................................................................................................................77 6.5.2 Objectives .....................................................................................................................................................77 6.5.3 Principles of Internal controls....................................................................................................................77 6.5.4 Categories of Control ..................................................................................................................................78 6.5.4.1 Segregation of Duties ...............................................................................................................................78 6.5.4.2 Organizational Structures........................................................................................................................78 6.5.4.3 Authorization and Approval Procedures ...............................................................................................78 6.5.4.4 Physical Safeguards .................................................................................................................................78 6.5.5 Essential Characteristics of Internal Control............................................................................................79 

6.6   FINANCIAL INFORMATION RECORDING.........................................................................................................79 6.6.1 Bookkeeping, Accounting& Significant Policies ......................................................................................79 6.6.2 Cash Basis of Accounting ...........................................................................................................................79 6.6.3 Books of Accounts and Supporting Documents ........................................................................................79 6.6.4 The Significant Accounting Principle .......................................................................................................80 

6.7   RECORD KEEPING AND ACCOUNTING............................................................................................................80 6.8 REPORTING......................................................................................................................................................81 

6.8.1 Financial Reporting at URP ..................................................................................................................81 6.9   AUDITING .........................................................................................................................................................81 

6.9.1 Audit Arrangement.................................................................................................................................81 OBJECTIVES..................................................................................................................................................................81 

6.9.1.1 Statutory Audit.....................................................................................................................................81 6.9.1.2 External Audit .....................................................................................................................................81 

52

7.  FINANCIAL AND ACCOUNTING PERSONNEL........................................................................................82 

8.  FINANCIAL ACCOUNTING AND RECORDING SYSTEM OF URP .....................................................82 

8.1  ACCOUNTING SYSTEM .....................................................................................................................................82 8.2  CHART OF ACCOUNTS AND CODE STRUCTURE .............................................................................................83 

8.2.1 Introduction ............................................................................................................................................83 8.2.2 Accounting Code Structure....................................................................................................................83 8.2.3 Account Code Allocation .......................................................................................................................84 8.2.4 Computerization of Financial Management System............................................................................84 8.2.5 Payment Voucher ...................................................................................................................................84 8.2.6 Supporting Document ............................................................................................................................84 8.2.7 Retention of Document ..........................................................................................................................84 

8.3  CHAS BOOK ......................................................................................................................................................85 8.3.1 Daily and weekly actions.......................................................................................................................85 8.3.2 Monthly actions .....................................................................................................................................85 8.3.3 Bank charges .........................................................................................................................................85 

8.4   BANK RECONCILIATION ..................................................................................................................................85 8.5  GENERAL LEDGERS .........................................................................................................................................85 8.6  INTERIM UNAUDITED FINANCIAL REPORTS (IUFRS): QUARTERLY BASIS................................................85 

8.6.1 IUFRs as part of Progress Reporting....................................................................................................85 8.6.2 Sources and Uses of Funds Statement ..................................................................................................86 8.6.3 Uses of Funds by Project Activity..........................................................................................................87 8.6.4 Output Monitoring Report .....................................................................................................................90 

APPENDIX - 1...............................................................................................................................................................91 

APPENDIX - 2...............................................................................................................................................................93 

APPENDIX - 3...............................................................................................................................................................94 

APPENDIX - 4...............................................................................................................................................................95 

APPENDIX – 5 ..............................................................................................................................................................96 

 

53

List of Figures

Figure 1: Urban and Rural Population in Bangladesh 1950-2050 .......................................................58 Figure 2: The Three Pillars of Urban Disaster Resilience.....................................................................49 Figure 3: Schematic of the Proposed Integrated Emergency Management System Requiring Vertical Communications Capabilities ...................................................................................................64 Figure 4: Indicative Organization Chart for the National Disaster Management and Training Research Institute .....................................................................................................................................67 Figure 5: Proposed RAJUK PIU-URU Organogram as of August 2014 .............................................49 Figure 6: Project Management Structure.............................................................................................102 Figure 7: Routine Financial and Accounting Activity Cycle ................................................................70 

List of Tables

Table 1: Budget Allocation for Component A1......................................................................................67 Table 2: Budget Allocation for Component A2......................................................................................71 Table 3: Budget Allocation for Component A3......................................................................................73 Table 4: Budget Allocation for Component A4......................................................................................76 Table 5: Budget Allocation for Component A5......................................................................................79 Table 6: Budget Allocation for Component B1 ......................................................................................82 Table 7: Budget Allocation for Component B2 ......................................................................................85 Table 8: Budget Allocation for Component C1......................................................................................89 Table 9: Budget Allocation for Component C2......................................................................................91 Table 10: Budget Allocation for Component C3 ....................................................................................93 Table 11: Budget Allocation to Component C4......................................................................................94 Table 12: Implementation Structure.......................................................................................................99 Table 13: Expenditures.............................................................................................................................72 

54

ABBREVIATIONS AND ACRONYMS

BCIF Bangladesh Climate Investment Fund

BNBC Bangladesh National Building Code

BP Bank Policy

BUERP Bangladesh Urban Earthquake Resilience Program

BUET Bangladesh University of Engineering and Technology

C&AG Comptroller and Auditor General

CAS Country Assistance Strategy

CASE Clean Air and Sustainable Environment

CCDMC City Corporation Disaster Management Committee

CDMP Comprehensive Disaster Preparedness Program

CDMP Comprehensive Disaster Management Programme

CHT Chittagong Hill Tract

CONTASA Convertible Taka Special Account

CPTU Central Procurement Technical Unit

CQ Consultants’ Qualification

DA Designated Account

DAP Detailed Area Plans

DC Direct Contracting

DCCs Dhaka City Corporations

DDM Department of Disaster Management

DFID Department for International Development

DL Disbursement letter

DNCC Dhaka North City Corporation

DRM Disaster Risk Management

DSCC Dhaka South City Corporation

EA Environmental Assessment

ECRRP Emergency Cyclone Recovery and Restoration Project

ECRRP Emergency Cyclone Recovery and Restoration Project

eGP electronic Government Procurement

EMF Environmental Management Framework

55

EMIDS Emergency Management Information and Data System

EOC Emergency Operations Center

ERD Economic Relations Division

FAPAD Foreign Aided Project Audit Directorate

FBS Fixed Budget Selection

FM Financial Management

FSCD Fire Services and Civil Defense

GAAP Governance and Accountability Action Plan

GDP Gross Domestic Product

GEODASH Geospatial Open Data Sharing

GFDRR Global Facility for Disaster Reduction and Recovery

GIS Geographic Information System

GoB Government of Bangladesh

GPN General Procurement Notice

GRM Grievance Redress Mechanism

HFN

Hope

Hastily Formed Network

Head of Procuring Entity

HVRA Hazard, Vulnerability and Risk Assessment

IAs Implementing Agencies

ICB International Competitive Bidding

ICPs Incident Command Posts

ICT Information and Communications Technologies

IDA International Development Association

IFC International Finance Corporation

IMDMCC Inter-Ministerial Disaster Management Coordination Committee

INSARAG International Search and Rescue Advisory Group

IRR Internal Rate of Return

IUFR Interim Unaudited Financial Report

JICA Japan International Cooperation Agency

LCS Least Cost Selection

LGD Local Government Division

M&E Monitoring and Evaluation

56

MARM Monthly Annual Development Program Review Meeting

MICT Ministry of Information and Communications Technology

MoDMR Ministry of Disaster Management and Relief

MoHA Ministry of Home Affairs

MoHPW Ministry of Housing and Public Works

MoLGRD&C Ministry of Local Government, Rural Development and Cooperatives

MoP Ministry of Planning

MTR Mid Term Review

NCB National Competitive Bidding

NDMC National Disaster Management Council

NDMCC National Disaster Management Coordination Committee

NDMRTI National Disaster Management Research and Training Institute

NDRCC National Disaster Response Coordination Center

NDRCG National Disaster Response Coordination Group

NGO Non-Governmental Organization

NPV Net Present Value

NS National Shopping

O&M Operation and Maintenance

OP Operational Policy

ORAF Operational Risk Assessment Framework

OTM Open Tendering Method

PAD Project Appraisal Document

PCMU Project Coordination and Monitoring Unit

PD Project Director

PDO Project Development Objective

PIC Project Implementation Committee

PPA Public Procurement Act

PPR Public Procurement Rules

PRMP Procurement Risk Mitigation Plan

PSC Project Steering Committee

QBS Quality Based selection

QCBS Quality and Cost Based Selection

57

RAJUK RajdhaniUnnayanKartripakkha

Capital Development Authority

RAP Resettlement Action Plans

RDP Regional Development Plan

RSLUP Risk Sensitive Land Use Planning

SCC Sylhet City Corporation

SEA Strategic Environment Assessment

SMF Social Management Framework

SMP Social Management Plans

SOD Standing Order on Disasters

SoE Statement of Expenditures

SSS Single Source Selection

TA Technical Assistance

TED Training, Exercises and Drills

TOR Terms of Reference

ULB Urban Local Body

UNDB United Nations Development Business

URU Urban Resilience Unit

USAR Urban Search and Rescue

ZRC Zonal Control Room

58

1. Strategic Context  1.1 The Changing Scenario

1. The strong economic growth prospects have fueled a significant population shift to Bangladesh’s urban areas. As a result, the contribution of agriculture to GDP fell from 30 percent in 1990 to 20 percent in 2010, while the contribution of the urban sector to GDP increased from 37 percent to an estimated 60 percent over the same period. The urban share of the total population of 150 million people amounted to approximately 29 percent in 2013, compared to 21 percent 20 years earlier. By 2050 the population is expected to grow to 200 million, and 52 percent are expected to live in urban areas. Not only is urbanization increasing, but the population density in major metropolitan areas is 1,900 people per sq. km. – among the highest in the world.

 

 

Figure 1: Urban and Rural Population in Bangladesh 1950-2050

1.2 Disaster Risk Reduction and Development  

2. Bangladesh is the most disaster prone country in the world1, and is highly exposed to a variety of hazards such as floods, cyclones and earthquakes. The Government of Bangladesh (GoB) has instituted disaster risk reduction policies and invested in infrastructure along coastal areas to mitigate the risk from floods and cyclones, primarily after the catastrophic cyclones of 1970 and 1991. Over the years, the GoB has demonstrated that investments in flood management and cyclone preparedness saves lives, reduces economic losses, and protects development gains. As a result, the Government’s actions are often cited in the argument for proactively investing in Disaster Risk Management (DRM) globally. Despite these tangible gains, the vulnerability of Bangladesh’s urban areas is not as well understood, or addressed, in the country’s policy framework.

                                                            1Maplecroft Global Risk Analytics. http://maplecroft.com/about/news/ccvi.html

 

 

59

1.3 Bangladesh’s Predicament  

3. With seven million people living in Dhaka City, and 15 million people living in the wider metropolitan area, Dhaka is particularly at risk. Approximately 28 percent of the population is already classified as poor, and an estimated 300,000 to 400,000 poor migrants arrive in the city on a yearly basis. Land use planning regulation, and public service delivery in the urban areas of Bangladesh has failed to keep up with the pace of growth. The current regulatory environment is somewhat opaque and the enforcement mechanisms for urban development control do not address structural safety, creating an environment that lacks practical enforcement capability and accountability. In this context, physical and social vulnerabilities keep increasing and any hazards, such as floods, fires, building collapses, or earthquakes present a formidable threat to life and prosperity.

4. On the other hand the city of Sylhet, located outside of Dhaka, is the third largest city in Bangladesh and, like many fast growing secondary cities in the region, suffers from a responsive rather than proactive approach to urban management and development. Sylhet’s own five-year development plan acknowledges that “the shortage of administrative, technical and professional capacity is exacerbated by lack of coordination, an unwieldy bureaucracy and poor organization”. In this context, and the city’s proximity to a fault line that crosses the country, Sylhet is also highly vulnerable to a significant earthquake.

2. Bangladesh Urban Resilience Project (URP) 2.1 Background

5. The Urban Resilience Project (URP) builds on a long-term Bank engagement with the Government of Bangladesh (GoB) that seeks to: (1) operationalize rules and regulations in emergency management based on the GoB’s recent Standing Orders of Disaster; (2) assess the vulnerability of critical facilities and lifelines; and (3) improve the enforcement of building codes and regulations in planning and construction. Drawing on lessons from past projects in Bangladesh and the Bank’s global experience in implementing complex DRM interventions, URP will serve as a new model to build capacity for emergency preparedness and response for both recurrent and large-scale events, as well as best practice in the construction industry in highly exposed, disaster-prone urban environments.

6. The Bank has been working with the GoB since 2012 in preparation for the proposed Project, which laid the foundation for a strong relationship with all the agencies involved. This collaboration has been supported by the Global Facility for Disaster Reduction and Recovery (GFDRR), which provided US$1.5 million of grant support for Technical Assistance (ta) through the Bangladesh Urban Earthquake Resilience Program (BUERP). In order to ensure strong collaboration efforts throughout project implementation, URP will also leverage the already established and well-functioning Project Coordination and Monitoring Unit (PCMU) of the Bank-supported multi-ministerial Emergency Cyclone Recovery and Restoration Project (ECRRP).

7. This Project is part of a longer-term engagement process that includes a series of investments designed to fully equip the GoB for emergency response and construction. URP will be fundamental in providing necessary emergency management resources, decentralizing emergency response capacity, clarifying roles and responsibilities within the GoB, and building a network of trust to gradually develop a solid emergency response and safe construction system. 

60

Figure 2: The Three Pillars of Urban Disaster Resilience

2.2 Project Objective and Phases  

8. City-level actors are critical to the effort to develop resilient and livable cities in Bangladesh. This project seeks to create an enabling environment for centrally coordinated and locally managed Disaster Risk Management (DRM). There are three core pillars of disaster resilience in urban settings, as described in Figure 2 below, including: i) effective emergency management; ii) improving structural resilience through reduction of existing physical vulnerability; and iii) risk-sensitive land use planning and safe construction standards and practices to ensure sustainable growth.

 

61

9. A comprehensive approach to increase urban resilience requires coordinated long-term investment across the three pillars. The Urban Resilience Project (URP) would serve as the first in a series of investments, which will initially focus on Pillar 1, to improve the critical capacity and infrastructure for emergency planning and response. The proposed project will also lay the foundations for subsequent investments in Pillars 2 and 3 by identifying key risks in the to-be built environment and developing the practice of risk-sensitive urban development.

10. With the key elements of effective urban response in place, future attention could then shift to reversing the trend of risk accumulation, and to increasing physical resilience through broader investments in priority sectors. Under this strategy, a subsequent second project would seek to further improve construction standards for future developments and reduce the existing physical vulnerabilities in Dhaka and major cities across Bangladesh. A third project could consider broader investment in priority sectors, for example critical facilities, water systems, power systems, transport, and construction of protective infrastructure.

3. Project Description  

11. The first URP investment consists of four main components that focus on: (1) improving emergency response and preparedness capabilities, (2) establishing an understanding of risk for critical facilities and essential facilities, (3) supporting improvements in urban development and construction, (4) providing the institutional arrangements for implementation, monitoring and evaluation to ensure efficiency, transparency, and accountability in the implementation of project activities. A common element across the four main components is the systematic collection, maintenance, updating, and sharing of critical data and information required for improving emergency management as well as the planning of urban disaster resilience programs. The project components are described in detail below.

3.1 Component A: Reinforcing the Country’s Emergency Management ResponseCapacity – US$110 Million

12. Within the framework of DRM, Component A will increase emergency management capacity at the national and local levels in Bangladesh. This is a priority in the country, as response to past urban events has been disorganized and inefficient.

13. An emergency management system will be put in place that will mobilize the resources at all levels and assign roles and responsibilities more efficiently. The system will be guided by international standards and principles of emergency management2 and in conformity with national laws and guidelines incorporated in the Disaster Management Act of 2012 and Standing Orders on Disaster (SOD) 2010. The overall goal is to design and operationalize an integrated emergency management system in Bangladesh that will enable the country to plan and respond to both common, everyday emergencies as well as major disasters in an organized and effective manner. For this purpose, the project will: (1) set up emergency operations centers (EOCs) and other response facilities to international standards; (2) outfit them with modern interoperable emergency communication systems and response equipment; and (3) support the proposed emergency management system with a robust and sustained capacity development program that establishes and trains a cadre of emergency management professionals for Bangladesh that are on par with their international peers.

                                                            

62

14. Following an assessment of the current government capabilities for response and planning, a significant gap must be addressed for Bangladesh to reach international standards in emergency management. Bangladesh does not have local level infrastructure for emergency/disaster management. Local authorities such as Dhaka City Corporation and Sylhet City Corporation and other local institutions lack the basic minimum facilities, equipment, processes, competencies, and training in urban emergency management. Consequently, the significant resources and knowledge that these institutions have cannot be mobilized in case of a major event. While the country has built capacity by managing coastal flooding and cyclone disasters through repeated response experience and has support systems in place through local NGOs and government institutions under the ongoing Cyclone Preparedness Program, the current set up is not sufficient to manage catastrophic events such as earthquakes in complex urban areas like Dhaka City. Since Dhaka is the seat for the National Government, urban earthquake response in Dhaka is complicated by the fact that at least three levels of political jurisdictions will be physically impacted by the earthquake, making it very difficult to respond in a coordinated manner. Further, the vulnerability of the current overall infrastructure is a major concern in potentially impeding the response.

15. The current emergency response system is organized using the multiple committee approach and the international Command and Control (or Direction and Control) system specified in the SOD is not operational. According to the SOD, there are at least 11 designated committees related to disaster management – some of these committees have been formed while others remain on paper only. For example, the Dhaka City Disaster Management Committee and the Dhaka City Disaster Response Group have not convened since the passage of the Disaster Management Act of 2012. Further, there is no evidence of linkages between the designated committees and the response operations. The current government guidelines such as the SOD, national and local level contingency plans indicate the tasks and activities but do not specify how these are to be implemented. As a result, the current emergency management system does not provide a Common Operating Picture to effectively coordinate and manage a large-scale urban disaster response, such as a major earthquake that can cause widespread damage.

16. At the national level, response coordination is assumed by the National Disaster Response Coordination Center (NDRCC). The NDRCC lacks modern communication equipment, operational facilities, and other resources to be capable of coordinating large-scale disaster response. It is also not undertaking emergency management planning in accordance with international standards expected for a national level center.

17. The Fire Services and Civil Defense (FSCD) organization has demonstrated capacity for emergency response and is currently the most prepared civilian agency. The FSCD should be reinforced with further investments in critical infrastructure, specialized response equipment, information and communications technologies (ICT) and training that will help FSCD carry out its first-responder functions more effectively.

18. The identified gaps into the country’s emergency management system include: a) the lack of capacity at the local level, principally at the level of the City Corporations; b) the lack of an effective system of coordination between the various levels of response agencies at the national, local, and site levels; c) the lack of uniform training, standards and reporting protocols among all those in charge of response planning and execution; d) the absence of modern facilities in particular EOCs, control rooms, fixed and mobile command centers with appropriate ICT equipment and protocols; and e) comprehensive schedule of drills and exercises among all relevant response agencies.

63

19. To ensure effective emergency response management at the national and local level, the URP will fill the identified gaps by providing the following: a) the required, dedicated human resources; b) a documented and practiced process for assessing emergency management planning and related needs, c) a uniform situational assessment reporting format, d) operational, internationally-based, Emergency Operations Plans for Dhaka and Sylhet with an established Emergency Support Function system to serve as the coordination mechanism for major response operations. Furthermore, it will provide a sustained capacity development program for training, exercises, and drills to implement and operationalize an Emergency Management System that is aligned with national guidelines and international standards of practice.

20. In view of the above summarized gap analysis for emergency management practices compliant with national laws and international standards, Component A will support the following activities of the URP:

• Renovate and outfit national-level Disaster Risk Management (DRM) facilities. This component will focus on renovating the National Disaster Response Coordination Center (NDRCC) and the National Disaster Management Research and Training Institute (NDMRTI). (Component A1, US$ 2.3M)

• Build, renovate and outfit local-level City Corporation and Fire Service and Civil Defense (FSCD) DRM facilities in Dhaka and Sylhet. The FSCD will be reinforced with further investments in critical infrastructure that will help the agency carry out its first-responder functions more effectively. This will include the construction of: (1) distributed warehouses to house emergency response assets for its facilities in Dhaka and Sylhet; and (2) fixed and mobile emergency command and control rooms in Dhaka and Sylhet. This component will also help build the DRM and emergency response capability of the Dhaka City Corporations (DCCs) North and South, including the establishment of one fully operating EOC for Dhaka City as well as satellite control rooms stationed at institutions which are members of the Dhaka City Disaster Response Coordinating Group and the zone-level administrative unit of DCCs. In Sylhet, it will build the DRM and emergency response capability of the Sylhet City Corporation with the establishment of a fully operating EOC and an Urban Resilience Unit (URU). (Component A2, US$ 8M)

• Supply, install and integrate specialized ICT equipment for DRM and emergency response within the national-level and local-level agencies. The objective is to procure, install, test, and operationalize all the emergency communications and other related ICT equipment to establish an integrated emergency management communication system that provides interoperability between key Government of Bangladesh (GoB) response organizations, major utilities and other agencies involved in response. This ensures the ability to provide a mechanism for real-time communication and conduct command and control between all of these organizations involved in early response. (Component A3, US$ 47.5M)

• Supply specialized search and rescue equipment to local-level agencies involved in DRM.

Reinforce FSCD organizational structure to achieve international standards such as certification from the IAEM and EMAP. (Component A4, US$ 39.5M)

• Provide Training, Exercises and Drills (TED) to national-level and local-level agencies

involved in DRM. (Component A5, US$ 12.7M)  

21. The NDRCC, EOCs, command and control centers and satellite control rooms will be equipped with Emergency Communications System capable of enabling voice and data under extreme conditions; this will enable all those involved in responding to an emergency event to keep communication up at critical times. The interoperability of the different levels of response (i.e., national-to–local-to-field/site) will enable the development of a COP during emergencies to support real-time decision making, and allow an effective mobilization and allocation of resources during the response.

64

22. Component A aims to achieve a national emergency operations system where role, responsibilities, resources and decision-making are optimized. This structure is represented schematically in Figure 3 below. It depicts horizontally, from left to right, the emergency management organizational system for levels of government, command, type of operations, and type of authority that would occur simultaneously during a major earthquake scenario for greater Dhaka or Sylhet, involving all levels of government. Communications capabilities are required vertically to link each level of government, achieve a vertical level of command and vertical coordination between operations centers and types of authorities to avoid confusion.

23. To effectively plan and prepare for response to disaster events, emergency managers need to have access to robust and accurate data. Scenario analysis provides valuable input to emergency managers on potential impacts of various events such as number of casualties, number of displaced people, emergency shelter needs, and demand on critical facilities such as healthcare, and disruptions in lifeline networks (roads, pipelines, electricity and water supply). Based on this information, narrative scenarios, simulation and visualization tools can be developed to more effectively assess response, relief and recovery needs. Furthermore, sharing data and creating open systems promote transparency, accountability, and ensure that a wide range of actors are able to participate in the challenge of building resilience. The URP funding will support the NDRCC, FSCD, City Corporations and other associated response agencies to use and contribute to the Geospatial Open Data Sharing (GEODASH) Platform developed and maintained by the Ministry of Information and Communications Technology (MICT) under a separate technical assistance funding from the World Bank. The URP will provide funding for capturing and updating verifiable inventories of emergency response resources and facilities, as well as accurate contingency databases (e.g. location and suitability of planned emergency shelter sites) for use by EOC personnel. The funding will also include development and training for the use of dynamic IT platforms to capture post-disaster decisions, interactions and changes over time.

 

Figure 3: Schematic of the Proposed Integrated Emergency Management System Requiring Vertical Communications Capabilities

65

 

24. The city-level emergency response operations is represented by the horizontal, rectangular box across the middle of the diagram – local authorities perform operational commands through the EOC, which enables direct control of the emergency response. The Integrated Emergency Management System proposed for Bangladesh is comprised of management nodes at different levels of governance (column 1 from left), requiring communications links between the site response agencies at the Incident Command Post with authorities located at the City EOCs (columns 1 and 3). The City EOCs require communications to the National Authorities at the NDRCC (columns 1 and 3). This communications capability allows for the required vertical levels of command (column 2), from tactical at the site of the emergency and operational at the City EOC to strategic at the national level. These required vertical communications linkages also allow for an integrated response at all levels of government authority, as depicted in column 4.

 3.1.1 Component A1: Renovate and Outfit National-Level Disaster Risk Management (DRM)

Facilities(US$ 2.3M) 25. Under component A1, the URP will renovate and outfit two critical national-level facilities of the country’s emergency management system: a new, dedicated facility that will house both a NDRCC and a newly created NDMRTI. The project will advise on the minimum core human resources required to operationalize this National facility. The Ministry of Disaster Management and Relief (MoDMR) / Department of Disaster Management (DDM) will manage both the center and the institute, housed in one facility, once they are fully established.

26. Currently, there is a NDRCC at the level of the MoDMR. The Center has no functional emergency communication equipment nor necessary basic data management, data display, adequate furniture or physical space and layout to be functional. The country has no NDMRTI, which is mandated under the Disaster Management Act 2012. Quoting section 12 of the Disaster Management Act, “Establishment of National Disaster Management Research and Training Institute. – (1) To fulfill the objectives of this Act, the government, if necessary, may establish a ‘National Disaster Management Research and Training Institute’ to take relevant programs including research on the effects of disaster and climate change and increasing capability of disaster management method. (2) Functions and method of conducting including other relevant issues of the institution established under clause (1) would be determined by the rules.”

27. Component A1 funding includes: i) renovation of the NDRCC and NDMRTI; and ii) outfit of the NDRCC and NDMRTI with basic office equipment. Outfit of specialized ICT equipment for both facilities will be implemented in component A3. The NDRCC and NDMRTI will be located in the building currently housing DDM, to which three additional floors will be added. The actual construction of this one facility will be financed and completed by the MoDMR, with funds outside of this project. The building will be analyzed for vulnerability to extreme hazard events. Any deficiencies will be corrected. The facility will also have redundant lifeline system (water, power, wastewater, food supply, etc.) to operate independently for a period up to seven days.

28. The NDRCC is conceived as a facility to assume the operational requirements of the National Disaster Management Coordination Committee (NDMCC), and the National Disaster Response Coordination Group (NDRCG) as specified into Disaster Management Act of 2012 and the SOD 2010 and in conformity with international standards. Its space and functional specifications will be prescribed to enable effective operations of both entities (i.e., NDMCC and NDRCG) during a disaster event. In addition, it should provide capabilities for its permanent staff to undertake their defined job requirements such as event tracking, database development, drills preparations, etc. The NDRCC operates under the premise of one

66

emergency response operation that integrates response from the national level, to the local level, to site level optimizing all national resources including the relevant sectors of civil society.

29. The role of the NDRCC will be to provide national situational awareness in the event of a major disaster. The NDRCC is distinguished herein from the city-level EOCs to also be a funded activity. The NDRCC functions similarly to an EOC except it is the national center for coordination of resources to support subordinate EOCs, make decisions and establish policies. In particular, the NDRCC’s functions include the following:

• Pre-Disaster: Serve as the secretariat to the NDMCC, the NDRCG and other similar national disaster management committees. Support the development, understanding and implementation of the regulatory framework, including national policies, rules, guidance documents, damage collection and reporting requirements for DRM and emergency management programs that will be executed before and during major disasters. Establish, execute, and monitor a pre-disaster planning process for both national and local institutions to engage in pre-disaster planning.

• During Disaster: Serve as a central facility for the National Government to gain and maintain situational awareness of any significant disaster, including alerts and warnings, and develop a COP in order for NDRCG members to make critical decisions on the appropriate prioritization of available resources. Lead national level coordination between response agencies of the NDRCG in order to meet the resource requirements of the subordinate EOCs and Incident Commanders for any major disaster in the country that requires national-level personnel and assets. The NDRCC may service multiple, on-going, simultaneous disasters within the country.

• Post Disaster: Serve as a facility to coordinate national-level recovery efforts as well as conduct after action reviews to adapt, modify and change legal and institutional arrangements, policies, plans, and Standard Operating Procedures (SOP) and processes in order to improve preparedness, DRM, and response missions.

30. The NDMRTI will serve as the support facility to the NDRCC by undertaking a program for well-coordinated emergency response planning to help the country achieve international standards for emergency management. Furthermore, the institute would conduct training, educational and awareness activities. The NDRMTI assumes an important role in disaster preparedness and in guiding the country towards disaster mitigation and urban resilience.

31. The NDMTRI will thus provide a number of key training opportunities: a) assessment and awareness of hazards and risks; b) modern DRM strategies and emergency management systems; c) DRM and emergency management specific job function and Incident Command System; and d) International Search and Rescue Advisory Group (INSARAG) entry to advanced training and certification. The INSARAG component will be operated and managed by members of FSCD. An indicative Organization Chart of the NDMTRI is shown in Figure 4 below.

67

 

Training Division Geological Hazard 

Meteorological/Climatic Other hazards 

IEC Division Information Education 

Communication 

Public Relations & Int. Relations 

Division 

Response & EOC Division 

Policy Planning & Research Division 

Governing Body 

Executive Director 

Admin & FinanceDivision

 

Figure 4: Indicative Organization Chart for the National Disaster Management and Training Research Institute

Table 1 presents a summary of the budget allocation for A1.

Table 1: Budget Allocation for Component A1

No. Component A1: Renovate and Outfit National-Level Disaster Risk Management (DRM) Facilities

USD Millions

A1a. NDRCC

A1b. NDMRTI

TOTAL Investment 2.3

3.1.2 Component A2: Build, Renovate and Outfit Local-Level City Corporation and FSCD DRM

Facilities (US$8.0 M) 32. Currently, the most prepared civilian agency is the Fire Services and Civil Defense (FSCD). Due to its important mission as well as its limited facilities, equipment, and training, this organization overcomes tremendous challenges and obstacles on a daily basis to provide essential life-saving services. From site visits and direct consultations during field investigations, the FSCD is limited in capacity and must be enhanced to provide required life rescue and fire suppression equipment and capabilities.

a) Three key types of facilities will be built or renovated and equipped with basic operational equipment under component A2 to capitalize on the institutional success of the FSCD. These are:

• Construct and equip two (2) FSCD Fixed Control Rooms, one located in Dhaka and one in Sylhet;

• Renovate and equip seventeen (17) Auxiliary Control Rooms for priority (Alpha) fire stations;

• Construct and equip twelve (12) new Emergency Management warehouses within FSCD grounds, 10 located in Dhaka and two in Sylhet;

68

33. For the FSCD, the Control Rooms are the command and control brain centers that will provide situational awareness, facilitate communicating with other agencies and manage the deployment of their resources for emergency situations. The current operational fire control system is very limited in capacity, including an inadequate and vulnerable communications system. The Control Rooms will be outfitted with specialized ICT equipment that will be interoperable and resilient, provided under Component A3.

34. The operational capacity of FSCD will be further augmented in a distributed manner throughout Dhaka by renovating 17 existing Auxiliary Control Rooms located at specified Alpha fire stations within the city, which will also be outfitted with specialized ICT equipment under Component A3. In addition, 12 FSCD emergency management warehouses will be built under Component A2 to increase effectiveness of emergency response at the local level. This intervention will focus on increasing the capacity related to FSCD Urban Search and Rescue and HAZMAT Tenders/Trucks, as well as to augment required missing basic equipment to meet life-safety standards for rescue workers. The warehouses will house essential emergency management equipment located in close proximity to critical transportation nodes and key hotspot areas within Dhaka. The actual equipment to be housed in the warehouses will be provided under Component A4. Overall, the warehouses and inventories of equipment and supplies will further provide Dhaka with a distributed response system. 35. Local authorities, such as DNCC, DSCC and SCC play a critical role in such a decentralized system as they provide the link between decision making and coordination at the national level, and the tactical operations of the response agencies on-site. They have significant resources and knowledge that must be mobilized for effective DRM and emergency response. The DRM Offices of Dhaka and Sylhet will thus serve as the Secretariats for their respective City Disaster Management Committees and City Disaster Response Coordination Groups.They will prepare annual plans and budgets to support DRM activities and coordination with other agencies and relevant stakeholders.

36. The local authorities will also help promote the mainstreaming of DRM within the city’s mandate and governance system. They will undertake the necessary risk assessment studies, maintain databases of human resources, equipment, directories, and location of critical infrastructures and support advocacy, policy, and the adoption of legal instruments (e.g. local ordinances) aimed at DRM. In addition, local authorities will execute the core function of training and capacity building, vulnerability reduction, information-education-communication as part of these preparedness activities, and coordinate all the city’s activities related to DRM. To assess progress achieved, they will also undertake monitoring and evaluation activities to measure and report on progress made by their respective city in their preparedness and mitigation activities. Some of the main activities of the DRM offices can be summarized as follows:

• Pre-Disaster: Utilize agency personnel to develop city-level DRM Strategies and Emergency Operations Plans and policies that will help operationalize local city response as described in the current law. Compile, update, maintain and share systematic databases on hazard, vulnerability and risk assessment (HVRA) used for emergency response planning and DRM on the GEODASH platform developed and maintained by the MICT. Educate local-city level agencies and the community on emergency management policies and best practices. Undertake emergency management planning and training.

69

• During Disaster: Gain and maintain situational awareness of the disaster, and develop a local city level COP in order for the mayor to (1) make critical decisions on the appropriate prioritization of resources; (2) handle coordination between response agencies; and (3) meet the resource requirements of the Incident Commander in the field managing an emergency response operation.

• Post Disaster: Lead city-level recovery efforts as well as conduct after action reviews to adapt, modify and change legal and institutional arrangements, policies, plans, SOP and processes in order to improve preparedness, DRM, and response missions.

37. Five key types of facilities will be built or renovated and equipped with basic operational equipment under component A2 to capitalize on the institutional success of the DNCC, DSCC and SCC. These are: • Separate DRM Offices for Dhaka North City Corporation (DNCC), Dhaka South City

Corporation (DSCC), and Sylhet City Corporation (SCC); • Build two (2) fully operational Emergency Operations Centers (EOC), one for DSCC and

one for SCC; • Build individual Satellite Control Rooms (SCRs) for thirteen (13) DCC agencies, namely

DCCs, RAJUK, Deputy Commissioner, Police Commissioner, Ansar & VDP, Dhaka WASA, BTCL, DGHS, AFD, TITAS GAS, Anjuman E Mafidul Islam, Red Crescent Society, DESCO;

• Outfit ten (10) Zonal Control Rooms (ZRCs), one for each of the Dhaka City Corporations zonal offices;

• Establish one (1) Urban Resilience Unit (URU) for SCC.

38. The DRM Offices should have the appropriate staffing and budget to undertake the above activities. Typically it will include the Head of the DRM Office, Deputy and Division Heads for Planning and Research, Administration and Finance, Training, and Operations.

39. Incorporated into the facilities for the DSCC and SCC DRM Offices is the appropriate space to accommodate a state-of-the-art EOC as the foundation for establishing successful Emergency Management Systems for Dhaka and Sylhet. International standards have expanded EOCs’ roles from simple call and dispatch centers to central locations for key decision makers to analyze disaster information, develop a COP, and determine resource allocation during an emergency. The EOC provides a central location from which government, at any level, can conduct interagency coordination and executive decision-making in support of the incident response. The EOC provides the primary emergency management node for disaster response.

40. International standards acknowledge that disaster responders must mobilize resources at all levels of government. It is recognized that local level responders are more familiar with their jurisdiction and have existing institutional relationships. In addition, in a countrywide disaster, the national level response apparatus may be physically and systemically incapable of handling every decision and directive at the local level. The decision-making must be decentralized and ordered. Interoperable communications is the key to this decision making process and city-level EOCs facilitate this important procedure.

70

Roles and functions of the EOC:  

The EOC does not "command and control" the on‐site response. Decisions made at the EOC level are not tactical decisions. The Incident Commander and Command Staff at the incident scene  take  the  lead  in  this  area.  Instead,  the  EOC  personnel  carries  out  coordination functions  through  information  collection,  evaluation  and  consolidation,  future  planning, priority  setting,  resource management  and  tracking,  financial  oversight,  and  After  Action Review (AAR) analysis. For every large disaster, Emergency Managers and EOCs conduct key response  functions.  These  include:  Damage  Assessments,  Disaster  Declarations,  Urban Search and Rescue, Emergency Medical Care and Triage, Recovery and Reconstruction. The EOC must be staffed by dedicated personnel organized ideally under the Incident Command System. The EOC  is  the  facility  from which multiple  agencies or organizations  (Emergency Support Functions ‐ ESFs) and EOC staff conduct response support tasks. The EOC will house a  standard,  system‐wide,  Emergency Management  Information  Data  System  to  integrate disaster  information  among  all  key  agencies.  The  EOC  will  have  a  standardized  set  of emergency  management  professionals  organized  in  accordance  with  a  form  of  Incident Command System that is scalable based on the event and requirements. The EOC will also be designed to accommodate a system of Emergency Support Function personnel. Finally, the EOC will  be  operated  in  accordance with  established  legal  and  institutional  arrangements under an adopted Emergency Operation Plan. 

41. Initially, DNCC and DSCC will share a single EOC located in DSCC. The reason is that DNCC is currently located in a small house with no space or land available to accommodate an EOC. From discussion with government authorities, the acquisition of land and construction of facilities could be a long-term endeavor. DSCC has an open space in its existing building that can be used immediately. Further, both DNCC and DSCC have no emergency management training or personnel at the moment. Thus, time will be needed to build capacity and operationalize an emergency management practice within these institutions.

42. Within Dhaka, two additional groups of responders will be outfitted with small but important disaster control centers. First, up to 13 DCC agencies engaged in the Dhaka City Disaster Management Response Group will be outfitted with satellite disaster control rooms. The agencies are DCCs, RAJUK, Deputy Commissioner, Police Commissioner, Ansar& VDP, Dhaka WASA, BTCL, DGHS, AFD, TITAS GAS, Anjuman E Mafidul Islam, Red Crescent Society, and DESCO. These city agencies/department control rooms will enhance the Emergency Support Function capabilities and responsibilities of the city departments and resources. Second, since DCC has decentralized some of its functions into 10 zones, these zones will also be outfitted with disaster control rooms. The purpose of this strategy is to further extend the emergency management system into the community in order to mainstream the system throughout Dhaka.

43. Finally, SCC does not have a Planning Department. At the same time, the city is expanding rapidly and significant urban renovation activity is expected to modernize the city to adapt it to the expected growth. It is thus critical that development planning and urban renovation be risk-sensitive. Thus, an Urban Resilience Unit (URU) will be established within SCC, which will undertake urban development functions fully integrated with HVRA, risk-sensitive land use planning, building code and other development control provisions enforcement, as well as work with the DRM office and other relevant institutions and stakeholders to plan, develop, and implement risk reduction programs within SCC. The Sylhet URU will also be in charge of the training of construction professionals to improve the overall construction standards and construction monitoring within Sylhet.

Table 2presents a summary of the budget allocation for A2.

71

Table 2: Budget Allocation for Component A2

 

No. Component A2: Build, Renovate and Outfit Local-Level City Corporation and FSCD DRM Facilities

USD Millions

A2a. FSCD Command and Control Room Dhaka

A2b. FSCD Command and Control Room Sylhet

A2c. Auxiliary Control Rooms Dhaka

A2d. Emergency Management Warehouses DNCC

A2e. Emergency Management Warehouses DSCC

A2f. DRM Office DNCC

A2g.

A2h.

A2i.

A2j.

A2k.

A2l.

A2m.

A2n.

DRM Office DSCC including EOC

DRM Office SCC including EOC

Individual Satellite Control Rooms Dhaka

Zonal Control Rooms DNCC

Zonal Control Rooms DSCC

Urban Resilience Unit SCC

Emergency Management Warehouses FSCD, Dhaka

Emergency Management Warehouses FSCD, Sylhet

TOTAL Investment 8.0

3.1.3 Component A3: Supply, Install and Integrate Specialized ICT Equipment for DRM and Emergency Response within the National-Level and Local-Level Agencies (US$ 47.5M) 44. A thorough ICT situation assessment has revealed that the major emergency management system gap lies in the GoB and Dhaka City agencies (including first responders such as the FSCD) having no Command and Control facilities or communications capabilities to adequately respond to city-wide Dhaka (or Sylhet) emergencies. The existing communications links are extremely vulnerable to disruption.

45. The objective of Component A3 is to procure, install, test, operationalize all the emergency communications and other related ICT equipment to establish an integrated emergency management communication system that provides interoperability between key GoB response organizations including FSCD, DDM, MoDMR, Office of the Deputy Commissioner, National Police, DNCC, DSCC, SCC, major utilities and other agencies involved in response. This ensures the ability to provide a mechanism for real-time communication and conduct command and control between all of these organizations involved in early response.

72

46. Of note is that although we will strive to provide interoperable communications with police and armed forces organizations, this project will NOT provide funding for any equipment, personnel, training or exercises for them. The intent of this project is ONLY to fund ICT for FSCD, DNCC, DSCC, SCC, NDRCC and NDMRTI.

47. The ICT equipment will include the following:

• Five (5) full Emergency Communications Technology (ECT) Suites will be installed, tested, and operationalized at the NDRCC facility, FSCD Control Room Dhaka, FSCD Control Room Sylhet, DSCC EOC and SCC EOC;

• One (1) Training Mini-ECT Suite will be installed, tested and operationalized at the NDMRTI facility;

• “Flyaway” Communication kits: o Seventeen (17) “Flyaway” Communication kits will be installed, tested and

operationalized at the Alpha fire stations in Dhaka o Thirteen (13) “Flyaway” Communication kits will be installed, tested and

operationalized at the thirteen agencies members of the Dhaka Disaster Management Coordination Committee

o Ten (10) “Flyaway” Communication kits to be installed, tested and operationalized at the ten zonal offices under the DCC agencies

o Thirteen (13) "Flyaway" Communications Suites for Sylhet Disaster Management Coordination Committee

o Supply and operationalize Mobile Command and Control Centers for NDRCC, FSCD Dhaka, FSCD Sylhet, and DSCC

• Six (6) Emergency Management Information and Data System (EMIDS) will be installed tested and operationalized at the NDRCC, NDMRTI, FSCD Control Room Dhaka, FSCD Control Room Sylhet, DSCC EOC, and SCC EOC;

• Geographical Information System (GIS) consisting of software and hardware will be installed, tested and operationalized at NDMRTI, FSCD Control Room Dhaka, FSCD Control Room Sylhet, DNCC DRM Office, DSCC DRM Office, and SCC DRM Office.

48. Firstly, the proposed ECT equipment should enable effective operations of all entities (i.e., NDMCC, NDRG, FSCD, Dhaka City DMCC, Sylhet City DMCC, and all satellite agencies as well as field command centers and posts) during a disaster event. While the Mini-ECT at the NDMRTI would be primarily used for training but could also augment the national capabilities in case of a major disaster.

49. The second ICT requirement is to address the very real likelihood that the normal telecommunications infrastructure is rendered completely inoperable due to a disaster event (e. g. no land lines, cellular service, push-to-talk radio systems, wired or wireless broadband Internet). In such a case, the project requires the deployment of Hastily Formed Networks (HFNs) in the form of mobile/portable facilities and communication capabilities. This includes the purchase of ten (10) large SUV integrated Command Vehicles and a defined quantity of medium and small hardened suitcases or man-pack based Flyaway kits consisting of ICT equipment and capabilities that are strategically placed around the region. These mobile/portable resources would be used to quickly and temporarily set up and deploy resources at disaster Incident Command Posts (ICPs) in an environment where the normal ICT infrastructure is completely destroyed. The ICPs will be able to fully integrate with local early responders as well as with the above fixed EOC and Control Room ICT infrastructure.

73

50. The required ICT equipment components that will be acquired include High Frequency (HF)/Ultra High Frequency (UHF)/Very High Frequency (VHF) radios, robust cell phone, satellite phone and smart phone devices (for voice communications); VSAT and Broadband Global Area Network (BGAN) devices - (for satellite broadband Internet access) at the EOC, Control Rooms and in the mobile/portable expeditionary configuration levels; Meshed WiFi (to create broadband "clouds" of Internet access); WiMAX point-to-multipoint-wireless-bridging technologies; and the required grid or generator or alternate energy solutions to power all of the ICT infrastructure outlined above. Some of these technologies require monthly/annual service to operate (the cell phones, satellite phones, VSAT and BGAN broadband satellite capabilities).

51. The EMIDS system will have the capability to integrate and display hazards, damage, traffic, and GIS data. EMIDS is an interactive database with the capability to monitor and display real-time, information feeds from external data providers for use in situation assessment and analysis. It can also serve as a log for the incident command system to keep detailed information about reports from the field and whereabouts of particular individuals or equipment.

52. The GIS technology (software and hardware) will enable database development, database management and spatial mapping. This is critical in disaster management. It will also have the capability for connecting with spatial mapping applications on the Internet such as Google Earth and OpenStreet. The GIS Software will also be used to operate GEODASH, the Bangladesh data sharing system currently under development.

53. Finally, the human resources necessary to secure, track, operate, and maintain this entire ICT infrastructure will be required. These resources include the hiring, training and field exercising of the personnel who will acquire, operate and maintain these ICT resources including permanently assigned ICT fixed and mobile/portable infrastructure managers and operators. Full-time permanent personnel will be responsible for operating and maintaining the HFN Flyaway kit suites, the Mobile Command Vehicles as well as the mobile/portable equipment.

54. These full time permanent personnel will also be required to provide ongoing training and certification for these systems. Operationalization of all the above equipment shall be achieved through three levels of training: 1) Regular User, 2) Advanced User, and 3) Administrator. Training should include basic trouble-shooting and repairs. Services will include licensing, maintenance and upgrades of specialized ICT equipment.

Table 3presents a summary of the budget allocation for A3.

Table 3: Budget Allocation for Component A3

No. Component A3: Supply, Install and Integrate Specialized ICT Equipment for DRM and Emergency Response within the National-Level and the Local-Level Agencies

USD Millions

A3a. Communications

A3b. GIS

A3c.

A3d.

EMIDS

Installation and Integration

TOTAL Investment 47.5

74

3.1.4 Component A4: Supply Specialized Search and Rescue Equipment to Local-Level Agencies Involved in DRM (US$ 39.5 M) 55. Component A4 will focus on supplying and operationalizing firefighting, hazardous materials handling, and search and rescue equipment within FSCD, DNCC and DSCC. The construction of warehouses, as well as the procurement of critical rescue and fire-fighting equipment will increase DRM and emergency response capacity at the local level. This particular component will focus on increasing the capacity related to FSCD Urban Search and Rescue and HAZMAT tenders/trucks, and augment required missing basic equipment to meet life-safety standards for rescue workers. By housing essential emergency management equipment in close proximity to critical transportation nodes and key hotspot areas, these warehouses and inventories of equipment and supplies will further provide Dhaka with a distributed response system.

56. The package of goods and associated services related to the maintenance of these goods to be purchased will consist of twelve (12) sets of firefighting, hazardous materials handling, rescue and other specialized equipment, which will be stored in the distributed Emergency Management Warehouses. These warehouses will be constructed within the grounds of selected FSCD Alpha Fire Stations. The required equipment components will include:

Rescue Section

• Pneumatic Powered Tools • Electric Powered Tools • Hydraulic Powered Tools • Power Tools • Miscellaneous Tools • Hand Tools • Electrical • Heavy Rigging • Technical Rope • Safety

Medical Section

• Patient/Personal Protection Supplies • Skeletal and Wound Care Supplies • Patient Monitoring Equipment

Technical Section

• Structure Specialist Equipment • Technical Information Specialist Equipment • HazMat Specialist Equipment • Technical Search Specialist Equipment

Water Section

• Swiftwater Technician Level

75

Logistics Section

• Water / Fluids • Food • Shelter • Sanitation • Safety • Task Force Support • Base of Operations • Regular Maintenance

Hazardous Materials Section

• Detection Equipment • Personal Protective Equipment • Pharmaceutical • Decontamination Equipment • Shipping Containers

City Section

• Personnel Locator System • Mobile Light Unit and Generator (2000W) • Generator • Concrete Cutter • Air Compressor • Power Chain Saw • Megaphone • Breathing Apparatus • Knee Pad & Eye Protector • Gloves • Ram Jack • High Pressure Air Bag • Gas Cutter • Rubble Removing Bag • Stretcher • Tent • First Aid Box

57. The search and rescue equipment should be based on two fully equipped USAR teams. A USAR response consists of highly trained, multi-agency specialists responsible for their own safety. They operate within a defined structure as a specialized resource working under normal City or Province emergency management arrangements. An effective USAR response requires personnel from different disciplines to train and work together for maximum efficiency. An integrated response system is also required. This involves highly specialized equipment, effective communications, logistical support and an established internal command and control system.

Table 4 presents a summary of the budget allocation for A4.

76

Table 4: Budget Allocation for Component A4

 

No. Component A4: Supply Specialized Search and Rescue Equipment to Local-Level Agencies Involved in DRM

USD Millions

A4a. Heavy Equipment

A4b. Rescue

A4c.

A4d.

Medical

Technical

A4e.

A4f.

Water Rescue

Communications

A4g.

A4h.

Logistics

Hazmat

A4i. City

TOTAL Investment 39.5

3.1.5 Component A5: Provide Training, Exercises and Drills (TED) to National-Level and Local- level Agencies Involved in DRM (US$ 12.7M) 58. The tasks under this assignment require the development, evaluation, implementation, review and improvement of a comprehensive multi-agency program of training, exercises and drills (TED) to improve emergency response capabilities, preparedness and readiness of government institutions and other key stakeholders (utilities, service providers, media, private sector and civil society organizations) involved in disaster and emergency management response. This is an in-depth long term and fundamental educational competency, capacity building and awareness program, which in the long run will provide Bangladesh with a confidence and pertinence in managing disaster risk and building urban resilience. The lead agency for the program is FSCD. However, the program is to be coordinated and be implemented collaboratively with NDMTRI, DNCC, DSCC, and SCC. Certain components will be specific to particular agencies as specified below. The program will be designed and implemented over five years with the last year devoted to evaluation, improvement and formulation of a final set of TED activities to be carried out for a decade or longer by the related agencies.

59. Component A5 will also utilize funding for staff development, curriculum development, and curriculum delivery of the NDRMTI. The Disaster Management Act of 2012 and the Revised SOD 2010 require the development of a series of identified guideline documents on disaster management. It must be noted that the country has developed a large-scale volunteer training program. By following international standards to develop response guidelines, the country can develop a corps of certified emergency managers under the certification program supported by the International Association of Emergency Managers (IAEM). National institutions can also be accredited under the Emergency Management Accreditation Program (EMAP) standards.

77

60. EMAP is an independent non-profit organization that fosters excellence and accountability in emergency management. To achieve this mission, EMAP establishes credible disaster and emergency management standards that are then applied in a peer reviewed voluntary accreditation process. The American National Standard Institute (ANSI) recognizes EMAP as a Standard Developing Organization.

61. Recognized for being rigorous, robust and scalable, the standard created by EMAP is known as the Emergency Management Standard. The Standard is flexible in design so that programs of differing sizes, populations, risks, and resources can use it as a blueprint for improvement and can attain compliance. It was collaboratively developed in a series of working groups of emergency management stakeholders from government, business and other sectors, and continues to evolve to represent the best in disaster and emergency management. EMAP’s Emergency Management Standard is the only disaster and emergency management standard endorsed by the International Association of Emergency Managers (IAEM), the international non-profit organization of emergency management professionals.

62. Accreditation of a jurisdiction’s emergency management program is undertaken by way of a 5 step, quantitative approach completed by EMAP certified assessors. The approach is both objective and cooperative, ensuring that the process is completed with the jurisdiction rather than for the jurisdiction.

63. The scope of work consists of the following tasks:

1) Undertake an in-depth capacity needs assessment, strengths-weaknesses-opportunities-challenges analysis and situational analysis of the TED requirements to improve urban emergency/disaster preparedness, planning, awareness and management using various scenarios such as a major earthquake in Dhaka, a major earthquake in Sylhet, and a major flood in Dhaka. Complete the situational analysis for each of the five institutions concerned by this contract putting the findings and recommendations in the context of the country as a whole.

2) In view of the above study, define the particular TED requirements as well as a collaborative program for each of the five institutions. In general the assessment should include specific targets to reach particular international standards on emergency management as indicated above. In addition to the guidance and criteria of the international standards, the particular conditions are as follows:

i. Assess the requirements relative to the mandate of the NDMTRI as indicated in the Disaster Management Act of 2012, the SOD 2010 and direct consultations with government officials from the MoDMR and DDM.

ii. Assess the requirements relative to the mandate of FSCD to acquire qualifications for

INSARAG.

iii. Assess the requirements relative to the mandate of DNCC, DSCC, and SCC for building competency of the DRM offices and the EOCs.

78

3) Based on Task 1 and Task 2 findings, design a comprehensive TED Program with the

minimum requirements: i. Use NDMTRI to build the capacity of national institutions in DRM and

emergency management. Training on Emergency Communication Technology, Incident Command System and Fundamentals of Emergency Management are considered mandatory in the curriculum.

ii. Acquire FSCD INSARAG qualifications, reach optimum use of Communication Equipment, and obtain special firefighting skills.

iii. Trainings on the EOC, Emergency Support Functions, and Information and Communications Technology for personnel in charge of response planning and operations at the Dhaka City and Sylhet City Corporations.

iv. Capacity building for the DRM Offices of DNCC, DSCC and SCC. Capacity building for the URU of SCC, including training on HVRA. Rapid assessment of the seismic vulnerability of buildings.

v. Multi-institutional exercises and drills, including simulations, table top exercises for at least three major event scenarios (earthquake, flood and pandemic), and at least one large scale Dhaka-level drill based on the occurrence of a major earthquake on the Madhapur Fault where all agencies, the NDMCC and the Dhaka Disaster Management Coordination Committee are involved at the Dhaka level. This last drill is expected to take place on year 4 of the program.

vi. Training related to search and rescue equipment, including technical training on: (1) contingency planning, (2) firefighting, (3) search and rescue; (4) hazardous materials handling; (5) emergency communications; (6) disaster assistance and rescue; (7) international certification standards; (8) HVRA; and (9) DRM thematic areas.

4) All training courses and methods should be independently peer reviewed and tested under

a rigorous quality control program that is developed as part of this contract. A coordination process between the concerned agencies should be designed to ensure the sharing of data and knowledge and effective use of the program.

5) The development of the training program should be completed at the end of year 2. Years 3 and 4 should be fully dedicated to capacity building program and the preparation of the exercises and drills. Each of the training modules should be given at least once. The curriculum can be based on other existing courses that are available either on a partnership basis or on a sub-contract basis.

6) A monitoring and evaluation team with an objective monitoring approach should be set up as part of the program. The monitoring team should be a complete part of the course development and delivery. Each delivery should be evaluated and the results assessed to improve all aspects of the course, including delivery methods, pedagogy, content, knowledge checks, tests and reports. The findings will serve to improve the whole TED program.

7) Year 5 of the program will be devoted to review and update the entire TED program including its curriculum, delivery method, pedagogy, content and schedule. At the end of Year 5, it is expected that the TED program will be in place, operationalized, fully equipped and sustainable with a target timeline of a decade. A schedule of upgrade and review should be part of the program.

79

Table 5: Budget Allocation for Component A5

 

No. Component A5: Provide Training, Exercises and Drills (TED) to National-Level and Local-level Agencies Involved in DRM

USD Millions

A5a. Training, Exercises, and Drills

TOTAL Investment 12.7

3.2 Component B: Vulnerability Assessment of Critical and Essential Facilitiesand Lifelines – US$12 Million

64. The objective of this component is to develop the consensus-driven analytical foundation required for longer-term investments to reduce risk in the built environment of Dhaka, Sylhet and other cities in Bangladesh. It concentrates on two activities: i) an assessment of the vulnerability of the built environment in greater Dhaka to earthquakes and other major hazards, focusing on essential and critical facilities and infrastructure. The assessment will establish the patterns of vulnerability of the cities, understand the hotspots, and serve as a basis for a long term vulnerability reduction in greater Dhaka; and ii) the development of risk-sensitive land use planning as a practice in Bangladesh. This will be informed by an understanding of the hazards, vulnerability and risk facing urban centers, and by clearly stated consensus-driven DRM objectives and policies.

65. RAJUK’s jurisdiction extends beyond the administrative boundaries of the DCCs to adjoining city corporations and municipalities. Among its responsibilities, the Building Construction Rules (2008) provide RAJUK the authority to enforce the national building code in addition to the Construction Rules themselves. Under this broad mandate, RAJUK plays an important role in steering the development of Greater Dhaka and impacting its urban resilience outcome either positively or negatively. In particular, RAJUK has jurisdiction over legal development enforcement instruments, such as zoning ordinances, development control provisions, and building codes and construction rules implementation.

66. Previous HVRA studies for Dhaka undertaken by the Comprehensive Disaster Management Programme (CDMP) and by the Bangladesh Urban Earthquake Resilience Project (UERP) were limited to the geo-administrative boundary of DNCC, DSCC and SCC. The understanding of hazards, vulnerability and risk of Greater Dhaka with technologies that enable spatial visualization and data sharing will empower RAJUK as well as stakeholders with the knowledge to create an environment for promoting higher standards and ethics for construction and development. These objectives are critical to sustainable economic growth and poverty reduction by making development plans risk-sensitive and supporting the construction of resilient infrastructure while reducing the vulnerability of at risk populations.

67. Currently, RAJUK and other relevant national institutions have not developed a comprehensive understanding of the vulnerability of critical and essential facilities such as hospitals, emergency operation centers, public safety facilities, key public buildings, food distribution centers, amongst others, to natural hazards such as earthquakes. This is also true for the general public. The knowledge of risk to critical and essential facilities resides only in the hands of a few experts and is incomplete. Yet, these facilities are relied upon immediately after an event to render core services to the population, house displaced populations and enable a fast recovery. It is thus critical to identify, map and assess the vulnerability of these facilities in order to build urban resilience in Greater Dhaka.

80

68. Recent events also serve as grim indicators of the extreme vulnerability of the built environment in Dhaka. The collapse of the Rana Plaza building in Savar on April 24, 2013 resulted in the death of 1,127 people and was the latest and most deadly in a series of structural failures in the city.3 A report commissioned by MoHA concluded that poor site location, sub-standard building materials, and illegal construction had contributed to the collapse. This is not an isolated case but experts agree that physical vulnerability of Dhaka’s built environment is of great concern. Vulnerability to earthquakes and other hazards has compounded in the last several decades due to rapid urbanization, uncontrolled rural and urban migration, lack of risk-sensitive land use planning and poor enforcement of government regulations and building materials. Physical and social vulnerabilities keep increasing and any hazards such as floods, building collapses, or earthquakes present a formidable threat to life and property.

69. The Dhaka Structure Plan (2016-2035) had focused on finding new satellite areas for urban expansion; however, i) core areas with high density building structures (Old Dhaka) and ii) urbanizing areas (near Old Dhaka and periphery) are highly vulnerable (or highly at risk) to earthquake hazards and flood hazards. The older and dense part of Dhaka has a large – but unknown – number of dilapidated buildings and frequently experience collapses. While the vulnerability of the built environment is recognized, a mapping and characterization of these vulnerabilities has not been done.

70. To address those inherent weaknesses, the following activities will be implemented under

ComponentB: • Conduct a vulnerability assessment of critical and essential facilities and lifelines

(Component B1, US$ 6.6M) • Support the development of a risk-sensitive land use planning practice in Dhaka

(Component B2, US$ 5.4M)

3.2.1 Component B1: Conduct a Vulnerability Assessment of Critical and Essential Facilities and

Lifelines (US$ 6.6M)

71. This component aims to identify at-risk public infrastructure, including critical and essential facilities and lifelines, assess their vulnerability to earthquakes and other hazards, and develop a city-wide vulnerability reduction program which includes priorities and budgets for physical strengthening, retrofitting or replacement. The assessment will establish the patterns of vulnerability of the city, identify the hotspots, and serve as a basis for a long term vulnerability reduction in Greater Dhaka.

72. This project component shall integrate several levels of surveys and structural engineering techniques (i.e. several rapid visual surveys, advanced engineering analysis, and building material testing) to collect critical construction data on the identified facilities in Greater Dhaka and establish their level of vulnerability and safety.4 This data will be used to set up the strengthening and retrofitting recommendations.

                                                            3Ministry of Disaster Management and Relief, 2013. Situation Report on Building Collapse at Savar, Dhaka. 4Essential and Critical facilitiesarefacilities needed for emergency response such as hospitals, fire stations, emergency centers, police stations, certain public buildings that house functions needed by the public, data centers, and power plant

81

73. The water transmission and distribution system for Greater Dhaka currently administered by DWASA is one of the lifelines that will be evaluated. Potential breaks in the piping system due to various levels of earthquake shaking, as well as structural and functional failures of water treatment plants, reservoirs, and pumping stations will be assessed. Downtime for restoration of the water system for each ward will also be estimated. The dependency of water and power distribution systems will be investigated to understand the potential impact of power failure on the water distribution system. The assessment will be used to develop a program for reducing downtime and improving reliability of the water system.

74. Similarly, the earthquake vulnerability assessment of the gas transmission and distribution system currently administered by TITAS Gas will also be investigated. Potential breaks in the piping system should be established according to the severity of ground shaking and potential for soil failure, such as liquefaction. Potential for fire ignitions will also be assessed. A program for reducing the vulnerability of the gas distribution system and potential for fire should be developed.

75. The output of the vulnerability assessment is to develop a long term risk reduction program combining various building and lifeline vulnerability reduction strategies. This includes techniques such as building retrofit, building abatement and replacement to reduce the number of unsafe, substandard and dangerous buildings, pipelines and facilities strengthening to ensure that infrastructures are resilient to extreme environment stresses. The lifeline strategies include developing redundant distribution systems and improve their reliability through system analysis. The focus is primarily to address them in areas highly susceptible to earthquake and flood hazards. This will be done in coordination with DCCs, organizations and ministries owning properties or operating within RAJUK’s jurisdiction, such as the Ministry of Education, the Ministry of Health, and the Ministry of Home Affairs, among many others.

76. The following tasks are envisioned: a) Develop a framework and methodology for building vulnerability assessment particularly

suited for structural typologies existing in Bangladesh. This could follow a procedure similar to ASCE-31 of the United States or similar standards, including a procedure for Quality Control (e.g.: peer review).

b) Similarly, develop a framework and process for the vulnerability assessment of water and gas systems, similar to procedures/guidelines suggested by the American Lifelines Alliance, FEMA, ASCE, or the National Institute of Building Sciences (US). A system reliability analysis will be undertaken for Lifelines.

c) Train structural engineering assessors on the methodology, including field testing and validation, inventory and reporting systems.

d) Prepare databases of critical and essential buildings and infrastructures within RAJUK jurisdiction. Incorporate all key information such as name, address, function, and age of the building, number of occupants, area, number of stories, construction material, type of structural system, and other data as required by the methodology developed in a) and b).

e) Collect and review previous vulnerability assessment studies undertaken by CDMP, Bangladesh UERP-1 and other similar studies. Catalogue information and findings from these studies to serve as references.

f) Coordinate vulnerability assessment activities with utility providers (DCCs, TITAS Gas, WASA, and other facilities owners).

82

g) Prepare a long-term schedule for seismic evaluations according to the available resources. The schedule should start with areas of higher risk as determined by the study.

h) Carry out an HVRA study for Greater Dhaka. i) Conduct initial surveys for structural vulnerability assessment on selected samples to

assess the validity and further refine the methodology; identify vulnerability features of buildings and infrastructure.

j) Complete vulnerability assessments and a system vulnerability analysis according to the formulated schedule.

k) Prepare a consultation and reporting process with concerned building owners and other relevant stakeholders. Develop an online reporting and tracking system.

l) Develop an overall program for risk reduction and a methodology for prioritization for retrofit and vulnerability reduction. Produce an initial implementation plan with priority clusters and budget estimates.

m) Develop an awareness and educational campaign to inform building vulnerability and raise societal involvement in improving construction standards.

n) Prepare guidelines and standards for the rehabilitation and retrofitting of critical facilities.

Table 6 presents a summary of the budget allocation for B1.

Table 6: Budget Allocation for Component B1

No. Component B1: Conduct a Vulnerability Assessment of Critical and Essential Facilities and Lifelines

USD Millions

B1a. Preparation of a Database of Critical and Essential Facilities

B1b. Survey for a Structural Vulnerability Assessment

B1c. Analysis of Output Development for a Vulnerability Reduction Strategy and Program

B1d. Consultations, Education and Awareness Campaign

TOTAL Investment 6.6

3.2.2 Component B2: Support the Development of a Risk-Sensitive Land Use Planning Practice in Dhaka (US$ 5.4M)

77. Bangladesh UERP evaluated the existing planning policies, systems and plans under RAJUK. It provided input and detailed guidance on how future plans can be made “risk-sensitive” and how mainstreaming can be incorporated in the land use management approaches and various sectors of development embedded in the plan. The findings and guidelines were summarized in the Guidebook for Risk-Sensitive Land Use Planning of Dhaka (RSLUP)5 produced as an output of Bangladesh UERP. An introductory training on risk-sensitive land use planning was developed and completed for about 35 planners and engineers.

78. At the same time, significant HVRA data and output have been produced by the CDMP and the Bangladesh UERP. A Dhaka City Profile and Earthquake Risk Atlas publication was produced by Bangladesh UERP Phase 1 and has been widely distributed in Dhaka.

                                                            5Refer to RSLUP Guidebook: http://nmd.sk/ENcMSuPf

83

79. Data, information and technology provide the relevant environment to inform the planning system and plans for Dhaka and make those plans risk-sensitive. Sharing data and creating open systems promote transparency as well as accountability, and ensure that a wide range of actors are able to participate in the challenge of building resilience. GEODASH is being developed under a separate contract to facilitate knowledge and data sharing and provide better information and tools to support DRM planning and decision making. RAJUK is expected to be an active participant in the development and sharing of data within GEODASH. Additional GIS resources are also provided to enable RAJUK to play a key role in this initiative.

80. RAJUK is completing the Dhaka Structure Plan 2016-2035 and the Dhaka Regional Development Plan (RDP). These plans provide the policy, strategies and pattern of development for Metropolitan Dhaka for the next 20 years. Risk sensitivity in the plans is only integrated in terms of hazards, such as geological and meteorological attributes. Suitability and land and infrastructure qualities criteria are also included. The geological input was provided by the Geological Survey of Bangladesh during the planning process. This input, however, is limited to hazards and does not include a full integration of the earthquake risk considerations as well as DRM objectives. Policies and mechanism for mainstreaming risk reduction and disaster management objectives are not explicitly derived and integrated in the plans. Hence, the opportunity to mainstream DRM at the strategic level may not be fully realized.

81. There is a real opportunity to fundamentally influence future development, reduce risk and build resilience in the development of the detailed area plans (DAP). The plan development is scheduled for 2015. The objective is to make the DAP risk-sensitive and support the integration and mainstreaming of HVRA (to include earthquake and flood hazard risks for Greater Dhaka) in the planning process.

82. Component B2 will support the conduct of risk-sensitive planning exercises for Metropolitan Dhaka in coordination with the findings and outputs of Component B1. In particular it will have the following objectives:

• Review, assess and re-design RAJUK’s current participatory planning process to assume more ownership for consultation, learning and consensus building within both RAJUK offices (e.g.: the Engineering or Town Planning Division) and external stakeholders such as urban managers of Dhaka (DCCs, DWASA, TITAS GAS, many others) with a focus on institutional capacity building and risk-sensitive planning. A structured participatory process for all relevant stakeholders under the leadership of RAJUK will enable a better understanding of the risks and their implications, thus reaching a better outcome for urban resilience. The focus on methodology will be institution-based planning rather than consultant-driven planning.

• Review, assess and re-design the existing process of strategic planning (Metro-wide),

local land use planning (DAP), zoning and site planning (local areas) towards risk-sensitive planning, investment programming and implementation.

• Provide support to RAJUK (through the Town Planning Division) to develop the

tools, procedures, and examples for mainstreaming DRM into spatial and development planning, utilizing outputs from other components of the URP.

84

83. The project component will have the following activities managed by the Town Planning Division of RAJUK and supported by the URU (See component C):

• Develop a framework and methodology for risk-sensitive planning particularly suited to Dhaka. It should utilize the existing RAJUK and external institutional arrangements as well as planning processes as take-off points for DRM mainstreaming.

• Identify and develop the entry points for DRM mainstreaming into land use planning,

sector planning and zoning, using the Structure Plan 2016-2035 of Dhaka and DAP as case studies.

• Identify and develop the entry points for DRM mainstreaming into investment

programming, project development cycle, building enforcement and related RAJUK operations and processes.

• Develop the internal guidelines and processes for RSLUP, including mainstreaming

plan formulation, collecting and integrating data, and supporting the development of detailed DAP.

• Develop curriculum and training methodology for capacity building; conduct various

trainings as well as their assessments.

• Develop data management and dissemination strategy to share and promote collected data on GEODASH using the established technology, protocols and standards in order to use the spatial data on critical infrastructure and essential buildings in an efficient and flexible way among beneficiary institutions.

• Introduce spatial analysis and decision making tools to enhance current plans.

• Develop a common digital platform for the sharing of planning and HVRA

information within RAJUK and other institutions.

Table 7 presents a summary of the budget allocation for B2.

85

Table 7: Budget Allocation for Component B2

No. Component B2: Support the Development of a Risk-Sensitive Land Use Planning Practice in Dhaka

USD Millions

B2a. Assessment of Plans and Planning System

B2b. Develop the Internal Guidelines and Processes for RSLUP

B2c.

B2d.

Training and Capacity Building

Database Management and Outreach

TOTAL Investment 5.4

3.3 Component C: Improved construction, urban planning, and development–US$41 Million

84. The objective of Component C is to put in place the institutional infrastructure and competency to reduce long-term disaster vulnerability in Dhaka. It would address both the existing built environment as well as future development. The overall scheme for component C covers three areas of investment in order to: (1) create a unit within RAJUK, the Urban Resilience Unit (URU) to support DRM mainstreaming and improving Dhaka urban resilience; (2) put up the infrastructure and process to ensure an efficient and integral process for land use and zoning clearance, building code implementation and enforcement, permitting and approval of site and building plans; (3) improve competency (through professional accreditation), trainings, continuous education, forums, and piloting of projects for urban resilience, demonstrating results that address key urban development and manage problems and issues.

85. The investments when completed will be seen as a big leap in the country’s urban governance to build urban resilience in accordance with existing Bangladesh Acts, building codes, construction standards, enforcement laws and institutional arrangements. They will align Bangladesh with international standards for construction and development.

86. Core to the success and implementation of this component is institutional strengthening by the creation of a new URU in RAJUK to encompass the development of competencies related to urban resilience such as risk assessment, earthquake engineering, construction standards, and risk-sensitive land use planning. The URU will be equipped with a specialized training facility geared toward competency building of construction activities. It will also set up a testing facility for in-situ and laboratory of construction materials and structural components.

87. Internal approval has been granted by RAJUK’s management to create the URU and its director has been appointed. This project will support the setup, structuring, training and provision of necessary facilities, resources, and equipment of the URU. It will also support its core activities to ensure it sustainability. The URU will also serve as RAJUK’s PIU for Components B and C, which will be implemented by RAJUK.

86

88. Component C2 will see the design and institutionalization of an electronic permitting and monitoring system for building construction and development. Its objective is to address and provide solutions to the lengthy, multi-agency and opaque land use and building construction permitting that fosters delays, creates frustration amongst permit applicants, and is an open door to violation and intervention. The e-system it intended to improve transparency and governance, but also to advance compliance with building codes and development control regulation, thus contributing to urban resilience. This electronic construction permitting infrastructure will establish incentives for the government, developers and owners motivated by increased efficiency, cost savings from electronic submissions, processing and approval of building project applications.

89. Component C will also address other fundamental risk management issues. Component C3 will set up a Professional Accreditation Program for civil and structural engineers, architects, planners and other construction and development professionals. This will pave the way for improving the competency and qualifications of front line construction and urban development professionals and to elevate their professional status and market competition.

90. Finally, Component C4 will seek to support the government’s efforts to address urban vulnerability through improving building code enforcement of the updated Bangladesh National Building Code (BNBC).

91. The implementation of the project will require several years and significant level of high-end expertise and technical assistance for RAJUK and the GoB. However, strategically, this is key to reversing the trend of vulnerability and developing a coherent and effective urban investment roadmap for the country.

92. As detailed above, the following activities will be implemented under Component C:

• Create and Operationalize an URU in RAJUK (Component C1, US $10M) • Establish an Electronic Construction Permitting System (Component C2, US$ 12M) • Set up a Professional Accreditation Program for Engineers, Architects and Planners

(Component C3, US$ 5M) • Improve Building Code Enforcement within RAJUK Jurisdiction (Component C4,

US$ 4M) 3.3.1 Component C1: Create and Operationalize an URU in RAJUK (US$ 23.4M)  

93. This component will fund activities related to setting up an URU within RAJUK to develop s human and capital resources (both in number and capacity) to undertake urban resilience activities. In particular, it will oversee the implementation of the BNBC, accreditation and code enforcement provisions, and implementation of building construction standards. During the project period, the URU will coordinate all the URP projects under Component B and Component C.

94. The URU will help RAJUK mainstream DRM into its operations, functions, planning, policy and decision making. Within the project’s lifetime, the organization will coordinate and set up the electronic construction permitting infrastructure and process, provide the required trainings for the enforcement of BNBC and related development permitting processes, and undertake the testing of construction materials to improve construction quality and assess structural vulnerability. Eventually the URU will become the main arm for the construction permitting and building code enforcement process within Dhaka, in accordance with BNBC accreditation and code enforcement provisions.

87

95. The structuring and development of a sustainable URU within RAJUK will require close collaboration amongst RAJUK’s leadership to ensure the unit will have the authority to exercise its responsibilities as indicated in its mandate. Part of the funding will be dedicated to establishing the legal, administrative and organizational structure of the URU and the detailed definition of its mandate and activities within RAJUK’s own institutional mandate. Through the implementation of these components, RAJUK will ramp-up its structure, competence and capacities. The project will support this process administratively, technically and materially.

96. In addition to technical and scientific competencies, the URU will have the laboratory and field equipment to undertake the testing of structures, including non-destructive testing, to enable it to establish material properties and characteristics of existing buildings and of construction material and aggregates. This will provide essential data for tracking building quality and establishing norms and standards to improve construction.

97. The URU will conduct and/or sponsor research, trainings, forums, community outreach, campaigns and workshops on risk-sensitive development to support the operationalization of major thrusts, such as building permitting, construction supervision, land use, zoning, and specific planning aspects of urban resilience. The outputs shall be taken to develop improved standards of construction in the country and promote urban resilience. For this purpose, the URU will be equipped with a state-of-the-art training facility that will oversee and manage all training activities. Figure 5 shows the organogram composed of 55 professionals comprising the PIU-URU during the project period.

88

Figure 5: Proposed RAJUK PIU-URU Organogram as of August 2014

89

Below is a summary of the budget allocation for C1.

Table 8: Budget Allocation for Component C1

No. Component C1: Create and Operationalize an URU in RAJUK USD Millions

C1a. Structural and Administrative Setup of URU

C1b. Construction of Office Space

C1c.

C1d.

C1e.

C1f.

Laboratory and Field Testing Equipment

Community Outreach, Campaign and Activities

Development of Training Facility

Program Development and Technical Assistance

TOTAL Investment 23.4

3.3.2 Component C2: Establish an Electronic Construction Permitting System (US$ 8.7M)  

98. This component will fund the design, development and implementation of an electronic permitting and monitoring system (e-permit) for construction applications. The funding will include a feasibility study, the design, development, testing, training, as well as deployment of the system, and related infrastructure (software and hardware necessary for institutionalization). The objective is to make construction permitting more efficient and transparent.

99. Planning permitting processes for building construction have been described as lengthy and complicated for building applicants. Illegal broker fees are known to be paid in order for applicants to shortcut the process6. This reduces Dhaka’s quality of life, erodes public confidence in its institutions and opens the door to violations, thereby increasing vulnerability to disasters.

100. Being the legitimate approving authority for any building construction, RAJUK has in the past been unable to cope with the demands of rapid building construction. This is primarily due to a lack of manpower, resources, and effective internal mechanisms to enforce the building construction provisions. Several problems and conflicts need to be addressed in the building permitting process:

• Non-respect of deadlines and timelines for delivering permits and void interventions and

deals; • Delays and negligence in duties in inspection, enforcement and reporting; • Lack of accountability and monitoring; • Complexity and opacity for getting clearances and non-objections (RAJUK demands

clearance certificates from the following organizations DoE, DESA, WASA, TITAS Gas, DMP Traffic, DCC, and the Civil Aviation Authority Bangladesh prior to considering the issuance of building permits).

                                                            6 Mahmud, A. (2007). Corruption in Plan Permission Process in RAJUK: A Study of Violations and Proposals. Transparency International Bangladesh.

90

101. The e-permit will create incentives for the government, developers and owners to observe development control regulations and provisions by providing increased efficiency, cost savings, speed in processing, transparent verification, and feedback mechanisms. The activities will start by undertaking a feasibility study of the e-permit system that includes:

• Consulting with key stakeholders, such as relevant ministries responsible for planning, infrastructure, housing, public works, utilities, amongst others;

• Studying the institutional arrangements;

• Assessing the IT infrastructure;

• Designing and specifying the process for instituting an electronic permitting and monitoring system for building construction and development;

• Establishing rules for conflict resolution between agencies;

• Establishing a schedule for reviews, applicant tracking mechanism, regulatory checks and mechanisms of enforcement;

• Identifying critical path in the business permitting process and re-engineering the process to improve the overall turnaround in plan approval;

• Developing a conceptual system architecture and specifications of key functionalities related to various users (e.g., builders, inspectors, plan reviewers, and supervisors);

• Estimating cost of development, set up, and deployment.

102. The design of the e-permit system will include the regulatory and licensing schemes, the legislative instruments, as well as the institutional and administrative arrangements of the permitting process under the principles of transparency and effectiveness. It shall incorporate requirements for RAJUK and satellite agencies that regulate and enforce building safety, fire safety, traffic management, waste management and environment protection. RAJUK shall provide the coordination and integration of these requirements from within and from various regulatory agencies. It will also act as gatekeeper for the system and as an e-permit process enabler.

103. A multi-stakeholder and multi-agency collaboration steering committee will be created to support and oversee the development of the e-permit system. This will contribute to: i) reaching consensus among the stakeholders on the core parameters that would facilitate an integrated seamless and transparent process for the application of construction permits through a common e-permit platform; and ii) defining the parameters of success in the design, development and implementation of the reformed system.

104. The steering committee will conduct a series of workshops and consultations to seek stakeholders’ input on the changes in building permitting processes to ensure that new system’s functionality corrects existing issues and streamlines the process. The consultations and workshops shall be designed to promote awareness among all relevant stakeholders, including the concerned RAJUK business units, developers, designers, contractors, practitioners, regulators, experts and advocates for the e-permit system.

Table 9 presents a summary of the budget allocation for C2.

91

Table 9: Budget Allocation for Component C2

No. Component C2: Establish an Electronic Construction Permitting System USD Millions

C2a. Feasibility Study and Institutional Setup

C2b. E-permit Software Design, Testing and Release

C2c.

C2d.

Hardware, Software, Equipment and Operations

Human Resources

C2e.

Trainings, Seminars, Workshops, Symposiums, Study Tours and Short Courses

TOTAL Investment 8.7

3.3.3 Component C3: Set Up a Professional Accreditation Program for Engineers, Architects and Planners (US$ 4.7M)

105. Bangladesh currently has a professional licensure process through which an engineer or architect becomes authorized to provide professional services to the public. However, the current process is not based on rigorous competency criteria and is not recognized as adding value to the profession or society as a whole.

106. Component C3 will serve to improve the professional competency and ethical standards of practice of professional engineers, architects, planners and other construction professionals according to Bangladesh building code and international standards of practice. The objective is to develop a new program aimed at delivering a recognized professional accreditation based on international best practices. A major effort will go into developing the curriculum, requirements for skills and experience, and certification documentation agreed upon and accepted by the professional engineering community. For Dhaka, the Authorized Officers of RAJUK will act as deputized building officials for building code enforcement, according to the BNBC and the Construction Act 1952.

107. The professional accreditation will apply to a broad range of professionals involved in land development, design, construction and real-estate industries, including: building officials, engineers, architects, planners, designers, contractors, constructers and developers. However, at the start of the program, the professional accreditation will focus on civil engineers because of the relevance of their function in the design, construction and supervision of building construction.

108. The funding will set up a 3-year indicative program. However, in the long term, the incentive-based program should become financially self-sustainable and market-driven, as certified professionals will emerge as leaders in their field, and recognized by their peers, the government and the industry for their added skills and observance of exceptional codes of ethics and professionalism.

109. Due to the nature of its mandate for Metropolitan Dhaka, RAJUK will play a key role in the development and implementation of the program. RAJUK engineers could serve as the first set of engineers to be accredited.

92

110. The funding will translate the requirements embedded in the Professional Accreditation Program into institutional and operating arrangements, setting geographic jurisdictions, continuing professional education, building and planning field curriculum reviews to enable RAJUK to implement the activities of this component.

111. Component C3 will first oversee a consultation process with stakeholders to establish a working relationship with RAJUK and the MoHPW. The Professional Accreditation Program should be promoted and the demand and requirements should be defined through a participatory process. In consultation with the professional associations, academia, building design and construction industry, an Accreditation Advisory Panel should be convened to help build consensus around the parameters and conditions for the accreditation program and establish standards. The administrative and technical provisions of the accreditation program will also be developed and discussed with the Advisory Panel. The technical provisions should include qualifications in terms of knowledge and experience. A monitoring and evaluation mechanism should also be developed.

112. Secondly, research and analytical studies will be developed to provide an enhanced understanding of BNBC’s enforcement mechanism, as well as its agenda and procedures for deputized inspectors and accreditation. Other models of professional accreditation in both developed and developing countries should be researched and documented and opportunities of adaptation of most relevant provisions should be identified.

113. A training platform and capacity building program should be developed to support engineers in the preparation of the Accreditation tests and exams and in developing the capacity of relevant institutions. The capacity program should extend beyond the targeted engineers to reach developers, contractors, planners and architects. It should conduct a series of forums, trainings, symposia, and study tours to educate, build support and further develop the infrastructure and accreditation requirements.

114. The initial experiment of the accreditation program with RAJUK will create the parameters to establish a permanent national accreditation system and its governance structure.

Table 10 presents a summary of the budget allocation for Component C3.

93

Table 10: Budget Allocation for Component C3

No. Component C3: Set Up a Professional Accreditation Program for Engineers, Architects and Planners

USD Millions

C3a. Consultation Process with Stakeholders

C3b. Research and Analytical Formulation

C3c.

C3d.

C3e.

Operationalization, Monitoring and Evaluation

Establishment of a Platform for Continuing Education and Training to Support Certification Outreach and Educational Campaign

TOTAL Investment 4.7

3.3.4 Component C4: Improve Building Code Enforcement within RAJUK Jurisdiction (US$ 4.2M) 115. Building code enforcement in Dhaka has been described as “largely problematic”. The capacity and numbers of personnel from RAJUK to meet the demands of building construction and carry out building permitting based on BNBC requirements are lacking. The shortage of building inspectors, weaknesses in competency, and lack of understanding of building code enforcement to protect human lives and properties have resulted in a negligent code enforcement process.

116. The current code enforcement process is limited to checking setbacks and ignoring the structural provisions. The noted development and code violations include the following:

• No maintenance of the required distance between buildings from adjacent roads;

• No maintenance of the agreed height of the building as per the plan;

• No maintenance of the setback rules of the building;

• Change in the land use of the building;

• Systemic dismissal of the structural provisions (including earthquake provisions) of the building code;

• Violation of fire code provisions;

• Low or inexistent field construction quality control and inspections.

117. The funding will build the capacities and administrative structure for RAJUK to implement and enforce the BNBC, the provisions of the Structure Plans and DAP, and building field inspection and controls. This funding is confined to RAJUK’s jurisdictional responsibilities and mandate. It will include the following:

• Conduct an initial assessment to identify strengths, weaknesses, opportunities and challenges for strategic and successful BNBC implementation, the necessary capacity building needs for RAJUK infrastructure, and current legal and administrative procedures for building code enforcement.

94

• Based on the findings of the assessment, develop the parameters (legal, administrative, technical, and logistical) for transparent and rigorous building code implementation and enforcement. Develop the processes, reporting and recourse mechanism for improved code enforcement. Validate the proposed interventions with the relevant stakeholders, including RAJUK.

• Develop a training and capacity building program for government officials, construction engineers, architects, planners and other construction professionals on building code requirements and implementation procedures. The training and capacity building program should extend into a continuing education program to raise the technical capacity of building officials, engineers, contractors and other professionals involved in the construction industry.

• Link the proposed capacity programs to the ones undertaken in Component B and Component C3. It will include the development of step-by-step guidebooks and illustrative examples.

• Develop an extensive awareness and educational campaign to reinforce the critical importance of the implementation of the building code, the development controls to protect life and property and the development of a globally competitive design and construction industry in Bangladesh.

• Develop indicators for monitoring and evaluating progress in achieving code compliance.

Table 11 presents a summary of the budget allocation for C4.

Table 11: Budget Allocation to Component C4

No. Component C4: Improve Building Code Enforcement within RAJUK Jurisdiction

USD Millions

C4a. In-depth Feasibility and Assessment Study

C4b. Development of Processes, Technical Criteria, Reporting and Recourse Mechanism for Code Implementation and Enforcement

C4c. Operationalization of Enforcement Mechanisms

C4d.

C4e.

Building Public Awareness around Building Code Enforcement

Capacity Building and Continuing Education

TOTAL Investment 4.2

95

3.4 Component D: Project Implementation, Monitoring, and Evaluation – US$ 10Million

118. The objective of this component is to provide necessary funding for project coordination, monitoring and evaluation. The implementation arrangements for the project are not included as each implementing agency will be responsible for its own implementation, procurement. The URP will have an implementation structure to engage relevant ministries that will focus on DRM, emergency response, vulnerability assessment, risk-sensitive land use planning and management, and institutional strengthening. Component D will provide the funding that will enable the monitoring and evaluation of URP’s key activities. It will also ensure periodic evaluation of the investment program to highlight the outputs and outcomes in support of a longer term investment program.

119. Component D will be implemented by the Project Coordination and Monitoring Unit (PCMU) of the Programming Division, Planning Commission, MoP. The PCMU of the Programming Division has been successfully implementing a similar World Bank funded multi-sectoral and multi-ministerial project, i.e., Emergency Cyclone Recovery and Restoration Project (ECRRP). It would also provide funding for the activities of the Project Steering Committee (PSC).

120. Activities that will be supported under this component include: i) overall support of the activities of the PSC and PCMU; ii) support of activities related to overall progress, monitoring and evaluation, compliance with the project’s safeguard and fiduciary requirements, and capacity development; iii) support of communication and promotional activities reflecting project contributions and stakeholder expectations; iv) procurement of vehicles, office furniture, and information technology equipment for the PCMU; v) operating costs of the PCMU; vi) hiring of experts and specialists to reinforce the staffing and technically support the mission of the PCMU; and vii) strategy long-term studies.

121. The already established PCMU of the Programming Division, Planning Commission will provide overall coordination, macro-management and resource (technical/HR) support for efficient implementation of this multi-ministerial project. The PCMU will provide secretariat services in the form of technical and administrative resources to the PSC. Second, it will collect progress/monitoring/financial reports from each of the three Project PIUs and prepare consolidated progress/monitoring/financial reports for onward transmission to the Ministries/Division concerned, Implementation, Monitoring and Evaluation Division (IMED) under the MoP, Economic Relations Division (ERD) under the Ministry of Finance, and to the Planning Commission, and the World Bank. Third, it will render supervision /technical services to the Project Implementation Committees (PICs) and PIUs on an ongoing and “as-needed” basis.

122. The PCMU will consist of:

• One (1) Project Director (PD) for planning and management who will be the PD for both URP and ECRRP;

• One (1) Deputy/ Assistant Project Director (DPD/APD) for administration and safeguards;

• One (1) DPD/APD for financial management, budgeting and accounts; • One (1) DPD/APD for procurement and contract management; • Any other DPD/APD depending on the activities to be undertaken by the PCMU.

96

123. An international firm (jointly supported by a national firm) shall be hired specifically for monitoring and evaluation, and shall be supervised by the PD of the PCMU. The international firm should also provide the adequate technical knowledge to assist in the definition of the request for proposals, evaluation of the bids, and development of the M&E criteria and analysis.

124. The three (3) Project Components A, B & C shall be implemented by three (3) Implementing Agencies (IAs), namely: a) DNCC (for DNCC itself, DSCC, SCC and FSCD) within the Local Government Division (LGD) of the Ministry of Local Government Rural Development & Cooperatives (MoLGRDC); b) RAJUK within the Ministry of Housing and Public Works (MoHPW); and c) DDM within the Ministry of Disaster Management and Relief (MoDMR).

125. Each of the IAs (DNCC, RAJUK and DDM) will have its own PIU. The IAs will also have their own Project Implementation Committees (PICs) that will oversee efficient and effective implementation and regular monitoring of the IAs project activities. Each PIU will serve as a Secretariat to its respective PIC. Figure 6 shows the project management structure for URP.

126. Each PIU shall consist of:

• One (1) Project Director (PD) for planning and management; • One (1) Deputy/Assistant Project Director (DPD/APD) for administration and social

safeguard; • One (1) DPD/APD for financial management, budgeting and accounts; • One (1) DPD/APD for procurement and contract management; • One (1) DPD/APD for monitoring and evaluation; • One (1) DPD/APD for environmental safeguard, and • Any other DPD/APD depending on the activities to be undertaken by the respective

PIU.

127. The Logical Planning Framework in Annex 4 will be used to monitor and evaluate the progress towards accomplishing the PDO and the expected outcomes. Project monitoring will be undertaken with a periodic function, and shall include: accounting and financial audits, reporting of outputs, review of processes and maintenance of records. As reflected in Annex 4, the project outputs will be measured against the collected baseline information using identified performance indicators under each component.

128. M&E will be undertaken in parallel by the PSC and PIUs, as well as the project IAs for the project components for which they are responsible. The PCMU will be responsible for the overall M&E. With technical support from the international and local M&E experts, the PCMU will develop tools and techniques (i.e. determining baselines, setting bi-annual/annual targets, setting appropriate indicators to measure performance, collecting required information/data, among others) for monitoring progress in achieving the Project’s Goal, Development Objectives and Intermediate Results. These results/outcomes may be monitored initially annually and then subsequently bi-annually (depending on the required timeline to generate results/outcomes). The PCMU will also need to devise an M&E system, including report templates for the PIUs, to make use of in measuring their respective components’ results and impacts.

97

129. The PIU of each IA will likewise undertake M&E by preparing Monitoring Reports in the prescribed format of IMED and PCMU. The PIU-level monitoring will be confined to inputs, processes, and outputs. In each of the PIUs, the APD for M&E will assign the responsibility of routine implementation monitoring of the particular project. The APD will continuously monitor the project’s physical and financial progress, including processes involved. The APD will then need to prepare Monthly/Quarterly/Bi-annual/Annual Progress Monitoring Reports, which he/she will eventually process for endorsement and signature of the PD. The endorsed reports will be forwarded to the IMED and PICs, which in turn will submit it to PSC for acceptance. The PSC will examine, endorse and/or accept/ approve monitoring reports prepared by the PIUs as well as the PICs.

130. The Monthly Annual Development Program Review Meeting (MARM) at the Ministry/Division Chaired by either the Minister or the Secretary will similarly discuss progress on their respective components and other related issues on the project performance.

130. The Mid-Term Review (MTR) will be conducted halfway of the project jointly by the GoB and World Bank under an agreed Terms of Reference (TOR).

131. The end of project evaluation will be conducted separately by both the GoB and World Bank after the completion of the project. It may be noted here that IMED of the GoB has to conduct terminal evaluation of all projects mandatorily within six months of their completion but these evaluation mainly look into the performances with respect to outputs rather than performances made with respect to intermediate/final outcomes or results. Under this project a result framework will be developed with appropriate indicators to measure at least intermediate outcomes or results. Hence, an end of project evaluation may be designed at a later stage under that perspective.

3.5 Component E: Contingent Emergency Response – US$ 0 million  

132. Following an adverse natural or man-made event that causes a major disaster, the GoB may request the Bank to re-allocate project fundsto this component (which presently carries a zero allocation) to support response and reconstruction7. This component would allow the government to request the Bank to reallocate project funds and designate them as Immediate Response Mechanism funds to be engaged to partially cover emergency response and recovery costs. This component could also be used to channel additional funds should they become available as a result of the emergency.

4. Implementation 4.1 Project Implementation Structure

133. The Urban Resilience Project (URP) – Phase 1 will be implemented by the following Implementing Agencies:

Department of Disaster Management (DDM): DDM under the Ministry of Disaster Management and Relief (MoDMF), will implement component A1 and A5 of the project which include(1) Renovate and Outfit National-Level DRM Facilities; (2) Provide Training, Exercises and Drills to National-Level and Local-level Agencies Involved in DRM (US$15 million)

                                                            7Such a reallocation would not constitute a formal Project restructuring, as permitted under the particular arrangements available for contingent emergency response components (ref. Including Contingent Emergency Response Components in Standard Investment Projects, Guidance Note to Staff, April 2009, footnote 6).

98

Dhaka North City Corporation (DNCC): DNCC under the Ministry of Local Government, Rural Development and Cooperatives (MoLGRD&C) will implement the project on behalf of DNCC, DSCC, SCC and FSCD. DNCC will undertake implementation of component A2, A3 and A4 of the project which include, (1) Build, Renovate and Outfit Local-Level City Corporation and FSCD DRM Facilities; (2) Supply, Install and Integrate Specialized Emergency Management and Communications Technology (ECT) Equipment for DRM and Emergency Response within the National-Level and the Local-Level Agencies; (3) Supply Specialized Search and Rescue Equipment to Local-Level Agencies Involved in DRM (US$95 million)

RajdhaniUnnayanKatripakhha (RAJUK): RAJUK under Ministry of Housing and

Public Works will implement component B and C of the project which include (1) Conduct a Vulnerability Assessment of Critical and Essential Facilities and Lifelines; (2) Support the Development of a Risk-Sensitive Land Use Planning Practice in Dhaka; (3) Create and Operationalize an Urban Resilience Unit (URU) in RAJUK to Support DRR Mainstreaming and Improve Dhaka Urban Resilience; (4) Establish an Electronic Construction Permitting System; (5) Introduce a Professional Accreditation Program for Engineers, Architects and Planners; and (6) Improve Building Code Enforcement within RAJUK Jurisdiction (US$53 million)

Project Coordination and Monitoring Unit (PCMU): PCMU under Programming

Division of Planning Commission will implement component D of the project which include (1) Project Coordination, Monitoring, and Evaluation (US$10 million)

TOTAL: US$173 million

99

Table 12: Implementation Structure

Sl. Component Sub‐  Component

Subcomponent Description Implementing Agency

Total Cost

(US$ m)

A1 Renovate and Outfit National‐Level DRM Facilities

DDM 2.3

A2 Build, Renovate and Outfit Local‐Level City Corporation and FSCD DRM Facilities

DNCC 8

A3 Supply, Install and Integrate Specialized ECT Equipment for DRM and Emergency Response within the National‐Level and the Local‐Level Agencies

DNCC 47.5

A4 Supply Specialized Search and Rescue Equipment to Local‐Level Agencies Involved in DRM

DNCC 39.5

1  

Component A: Reinforcing the 

Country’s Emergency Management Response Capacity 

A5 Provide Training, Exercises and Drills (TED) to National‐Level and Local‐level Agencies Involved in DRM

DDM 12.7

B1 Conduct a Vulnerability Assessment of Critical and Essential Facilities and Lifelines

RAJUK 6.6 2 Component B: Vulnerability Assessment of Critical and Essential Facilities 

B2 Support the Development of a Risk‐Sensitive Land Use Planning Practice in Dhaka

RAJUK 5.4

100

 

Sl. Component Sub‐component

Subcomponent Description Implementing Agency

Total Cost

(US$ m)

C1 Create and Operationalize a URU in RAJUK

RAJUK 23.4

C2 Establish an Electronic Construction Permitting System

RAJUK 8.7

C3 Set Up a Professional Accreditation Program for Engineers, Architects and Planners

RAJUK 4.7

3 Component C: Improved 

Construction, Urban Planning 

and Development 

C4 Improve Building Code Enforcement within RAJUK Jurisdiction

RAJUK 4.2

4 Component D: Project 

Coordination, Monitoring, 

and Evaluation

D Project Coordination, Monitoring, and Evaluation

PCMU 10

5 Component E: Contingent Emergency Response Component

E     0

TOTAL 173

101

4.2 Project Implementation Arrangements and Responsibilities  

134. The Government of Bangladesh has the overall responsibility for project management and coordination through the Ministry of Planning (MoP), and includes the following ministries: MoLGRD&C, MoHA, MoDMR, and MoHPW. A Project Steering Committee (PSC) will be established and chaired by the Secretary of the MoP and membership will include high-level representatives from concerned ministries. The PSC will oversee the project, provide overall policy guidance, and facilitate broad communication and coordination across the GoB. PCMU in the Programming Division of the Ministry of Planning, will coordinate all other IAs on a day to basis to keep abreast of project progress. To help PSC update about the implementation status of the project, PCMU will communicate all other IAs regularly, and whenever necessary will expedite project activities of other IAs. PCMU will also closely monitor project implementation procedure and progress of other IAs as discussed in section that follows.

135. In addition to the Project Steering Committee sitting on top of all other committees, a Project Implementation Committee (PIC) shall be constituted in each of the three IAs under the Chairpersonship of respective Head of the Agency, i.e. Chief Executive Officer, DNCC/ DSCC, Chairman, RAJUK and Director General, DDM, to supervise and coordinate activities of their respective PIU. Each PIU will serve as secretariat to its respective PIC. Members of the PIC will be drawn from key officials representing the Lead and Partner (where applicable) IAs. All necessary efforts will be undertaken to make these three Committees efficient and effective, so that these Committees meet at least once in a month and take quick as well as appropriate decision towards resolving implementation related problems and / or pending issues.

 

136. The four IAs have been assessed by the Bank fiduciary specialists as having the capacity to manage projects similar to the proposed URP. Three of the four IAs are implementing ongoing Bank-financed projects, which are detailed as follows. The DCCs have implemented Bank-supported projects, including a component of the ongoing Clean Air and Sustainable Environment (CASE) Project and the closed Dhaka Urban Transport Project (DUTP). The DCCs were split into two in December 2011 and, since then, DNCC and DSCC have coordinated in implementing CASE, with the CASE PIU located within DSCC. DDM is currently implementing one of the components of the ECRRP and a component of the Safety Net Systems for the Poorest Project. Only RAJUK has not implemented a Bank-supported project and has limited experience implementing other donor-funded projects. The already established ECRRP PCMU, under the guidance of a PSC, and with oversight from the MoP, will be responsible for overall project coordination, management, monitoring, evaluation and overseeing strategic studies and training.

 

102

 

Figure 6: Project Management Structure

4.3 Monitoring and Evaluation  

137. The PCMU will prepare an annual progress report, in accordance with the format agreed with the Bank. The progress report will cover: (i) physical and financial progress achieved against agreed implementation and disbursement indicators; (ii) issues and problem areas, including comments on actions to address identified problems; and (iii) work programs and cost estimates for the coming year, including revised estimates for the former period. A mid-term review of the Project will be carried out no later than December 2017 to review overall progress and take necessary actions. 138. In addition, an independent monitoring and evaluation (M&E) consultancy, financed under Component D, will report to the DG/PD PCMU and PSC and will be responsible for overall monitoring and supervision of the implementation and impact of various components. They will also supervise implementation of the overall Environmental Management Framework (EMF) / Social Management Framework (SMF), review and monitor each sub-project’s specific social and environmental management plans, as well as supervise their implementation. M&E will be carried out using the latest technology, such as satellite imagery and Geographic Information System (GIS), where necessary. 

103

4.4 Sustainability  

4.4.1 Physical Sustainability  

139. The physical investments under this Project are designed to increase the Government’s ability to respond to emergency events based on best practices for system engineering, response, and communication systems in partnership with a well-known international firm with relevant expertise. Significant support for training, exercises and drills will ensure systems are used efficiently. Technical audits and experts will ensure the systems are of high quality. For sub-projects involving the financing of goods and equipment, eligibility for funding will be tied to the capacity of the receiving agency to adequately maintain the investment.

4.4.2 Financial Sustainability

140. The fiscal impacts of disasters require significant capital expenditures for repairing and reconstructing damaged public/state-owned infrastructure as well as, in particular cases, implicit liabilities to the Government. This Project will build capacity within the Government to reduce their contingent disaster liability by improving the design and quality of public and private new construction that will be more resilient to adverse natural events.

4.4.3 Institutional Sustainability

141. Prior to project preparation, all relevant stakeholders were involved in the GFDRR TA, implemented over the past 18 months. Since the specific objective of the GFDRR TA was to build not just an understanding, but also consensus, of disaster risk, the program has focused on identifying a broad range of stakeholders to include in the TA. The overall project structure of the TA involves over 120 participants from more than 50 government agencies and outside organizations, including bilateral, private sector, and non-government organizations. Due to the participatory approach of the GFDRR TA, the stakeholders are increasingly aware of the need to not only act on the increased understanding of disaster risk, but also to act in unison, each providing their respective strengths to the effort. As a result of this engagement, and despite the significant institutional challenges related to weak capacity as well as overlapping mandates for urban risk management, it is expected that risks related to project sustainability will be manageable.

5. Economic Analysis

142. An objective approach to measuring the benefits of the Project will be to quantify losses averted due to fire in the aftermath of a major earthquake. Fire has been a recurring hazard in Dhaka due to the high concentration of industrial operations related to the garment industry, lax regulations, and susceptibility of the built environment to fire hazards. Access for fighting fires is very limited due to congestion, and the ability of fire fighters to control fires is very limited due to poor training, inadequate equipment and lack of water availability. The potential for multiple conflagrations and major fire spread in several areas of the city after a major earthquake could result in catastrophic human and economic losses.

104

143. While a major fire could spread across part of Dhaka in the absence of an earthquake, this analysis takes a more conservative approach that focuses on the expected fire that would materialize as a result of a major earthquake in Dhaka. The averted losses expected under the Project would be similar to those of other major cities of South Asia, including Kathmandu, Karachi or Delhi. From a historical perspective, between 1875 to 1925, cities including Boston, Chicago, San Francisco, Tokyo and Baltimore all suffered devastating fires. These fires occurred due to poor urban development, enabled by a culture of corruption. Of these, the Great San Francisco fire of 1906 and the Great Tokyo fire of 1923 were caused by a major earthquake. However, in recent years in developed nations, the impact of fires has been contained due to: i) strong building code enforcement; ii) effective land use plans; and iii) effective emergency management services. 144. The core objectives of the Project mimic the actions taken following these catastrophic events. Averted losses will be focused on the potential savings from effectively limited fire ignition and fire spread, and improving fire suppression after an earthquake. The probability of various events is estimated, as well as the expected impact of each event. A fire loss factor will be used for various scenarios of loss. This loss factor will be based on the seismic loss factor for each magnitude of event, and a fire loss factor is estimated as well. These figures will be defined during project preparation in collaboration with an international engineering firm with this expertise. In Phase 1 of the TA project, earthquake risks to Dhaka have been modeled from the earthquake scenarios. The database and analytical formulations can be extended to look at the fire risks and establish fire loss ratios. Other analytical resources can also be brought to support the fire modeling effort. Based on these figures, estimates of losses before and after the project intervention will be calculated and the averted fire losses quantified. The value of averted losses will only include affected capital and not lost lives; however, it is estimated that tens of thousands of lives would be saved in the long term as a result of an improved emergency response and preparedness system financed by the Project. 145. Economic analysis was performed to assess the rate of return of capital investments in emergency response centers and equipment. The physical investment is complemented by human capacity building in the areas of emergency response as well as fire and building code enforcement. 146. The benefit of hazard mitigation of the type proposed in the Project lies in avoiding damage and loss. Mitigation provides protection and we can calculate its benefits in the event of an actual disaster by asking the counterfactual: what would society have lost had mitigation not occurred? Broadly hazard mitigation will have the following benefits: • Direct impacts (example: strengthening buildings will reduce the damage in an

earthquake or similar events, reducing down time). • Indirect impacts (example: less down time for production loss and reduced business

disruption after an earthquake or similar events). • Intangible impacts (example: better built structures will offer tenants a greater sense of

security, just as evacuation plans and frequently checked fire extinguishers create a feeling of safety). 

• Secondary impacts (these impacts could be the same as the indirect impacts, but usually work through the markets that link wholesalers with retailers and retailers with consumers). 

• Human impacts (example: strengthening buildings and improved emergency response systems will reduce fatalities and injuries). 

105

147. For the purpose of this economic analysis we do not try to measure the benefits from the additional number of lives that could be saved or the injuries that could be avoided by the Project.

148 We assume the Project will reduce the expected economic losses by at least 3 to 10 percent. The reduction of the expected economic loss will occur through the following channels: (a) direct losses to building and infrastructure will be reduced through better building code enforcement derived from capacity building and training; (b) better emergency management response will be derived from a more robust emergency management infrastructure as well as the emergency response equipment funded by the Project. This will reduce losses due to fires following an earthquake; as well as (c) economic losses due to a loss of productivity.

149. Based on the values of the assets, the state of damage (described in detail in Annex 10) and their corresponding probabilities, the expected losses were calculated for three types of losses for the various earthquake scenarios in each city: (a) expected economic losses stemming from damages to the buildings and lifeline infrastructure; (b) expected direct losses from damages to the buildings and lifeline infrastructure; and (c) expected losses due to fire following earthquakes.

150. A Monte Carlo simulation analysis was performed to account for the uncertainty in the areas of O&M, project impacts, and the future growth rates of the two cities. The simulation covers a period of 20 years using a discounting rate of 12 percent. The 20-year project life assumption is on the lower end, which leads to conservative results.

151. Overall the Project fairs very well with IRR of 21.6 percent and NPV of about US$73 million. The probability that the IRR would fall below 12 percent is zero. The possible IRR ranges of between 13.6 percent and 28.2 percent show that the rate of return on the investments is sufficiently high and satisfactory, even when values of the variables that impact benefits are at their probable lower ends.

6. Financial Management  

152. The PCMU, on behalf of the Planning Secretary, would be responsible for overall coordination and financial management arrangements of the Project. The PCMU is well versed in handling Bank-funded operations, including financial management procedures. The financial management performance of ECRRP has been continuously receiving a ‘Satisfactory’ rating. A simplified financial management assessment was undertaken on the adequacy of financial management arrangements and the proposed FM arrangements were found to be acceptable. Suitable risk mitigation measures and capacity building elements have been accordingly proposed. There are no overdue audit reports or ineligible expenditures under the four IA.

153. The financial management system will be governed by the Financial Management Manual which is provided in Annex-II

106

7. Procurement:  7.1 The legal framework: Procurement is one of the major important activities of any development project and most difficult too. The Government of Bangladesh has made it mandatory for all institutions/organizations/agencies to follow the The Public Procurement Act 2006 (PPA) and The Public Procurement Rules 2008 (PPR) for thepurchase of all kinds of goods, works and services from within the country and abroad to be made under both the non-development (revenue) as well as development budgets. However, in conformity with Rule 3(d) of PPR, for IDA funded projects such as URP, all procurement involving international competitive bidding (ICB) and national competitive bidding(NCB) above a certain threshold will follow theWorldBank’s Procurement Guidelines for Goods, Works and Non-Consultancy Services January 2011. All selection of consulting services/consultants will follow the World Bank’s Consultant Guidelines. Should there be any conflict between the World Bank’s Guidelines and the PPA/PPR, the former will prevail and this has been clearly stipulated both in the PPR and in the Financing Agreement (FA) executed between the IDA and the GoB. Because of its bulk the PPA and the PPR have not been attached to this OM. However these documents and other relevant regulations are available on the website of Central Procurement Technical Unit (CPTU) of the IMED i.e. www.cptu.gov.bd. World Bank’s Procurement/Consultant Guidelines are available on its websitewww.worldbank.org.

7.2 Procurement Methods: The procurement methods to be used for procurement of goods, works and services, are presented below:

7.3 Procurement of Goods: It is presumed that all agencies will have to purchase materials, equipment and instruments from the local market with some may need international procurement. The bulk of such purchase may be modest for some and very large for others. Testing laboratory equipment (seismic), seismic equipment for vulnerability assessment, Construction of URU with training facility & testing laboratory, Consultancy Services for Operationalizing the URU and Build DRM Facilities in Dhaka & Sylhet are highly specialized and often not available within Bangladesh. Some highly specialized Search and Rescue equipment may also not be found in the country. This will inevitably require international procurement and payment in foreign currency. Generally goods will be procured using ICB, followed by NCB and national shopping/quotation for small valued contracts. Direct contracting will be used for specialized items of low value / proprietary nature / specialization, with IDA’s prior concurrence. This is applicable for all procuring entities under the project, i.e., PCMU, RAJUK, DNCC and DDM. The following procurement thresholds shall be valid for procuring Goods, Works and Services. Thereafter, URP shall seek World Bank’s clearance for following these threshold amounts.

i. ICB: Goods and equipment contracts estimated to cost US$ 1.00 millionand above per contract will be procured using ICB.

ii. NCB: Goods and equipment contracts estimated to cost below US$ 1.00 million per contract may be procured using NCB following provisions of the PPA and model bidding/tender documents acceptable to the World Bank. This includes vehicles, computers, office equipment etc. For the purpose of NCB the following shall apply:

Post bidding negotiations shall not be allowed with the lowest evaluated or any other bidder; Bids should be submitted and opened in public in one location immediately after the

deadline for submission; Lottery in award of contracts shall not be allowed; Bidders’ qualification/experience requirement shall be mandatory; Bids shall not be invited on the basis of percentage above or below the estimated cost and

contract award shall be based on the lowest evaluated bid price of compliant bid from eligible and qualified bidder; and

Single-stage two-envelope procurement system shall not be allowed.

107

iii. National Shopping\Request for Quotation (NS \RFQ): Small goods and equipment contractsmay be procured in accordance with provisions of national shopping (Request for Quotations) under PPA and PPR, provided those are included in the Procurement Plan agreed with IDA.

iv. Direct Contracting (DC): Under this project, goods & works can beprocured following DC procedures in accordance with the World Bank’s Procurement Guidelines and with IDA’s prior concurrence.

7.4 Procurement of Works: A number of civil works are envisaged under components of URP. The following procurement methods can be used just in case resources are used for eligible purposes such as renovation/ refurbishing/extension/construction of laboratories/ workshops, warehouses etc.:

i. International Competitive Bidding (ICB): ICB will be used for contracts estimated to cost US$ 10.00million or above per contract.

ii. National Competitive Bidding (NCB): Civil works contracts estimated to cost below US$ 10.00million per contract may be procured using NCB in accordance with provisions of the PPA and model bidding/tender documents acceptable to the World Bank. The exceptions to PPA/PPR as mentioned in 4.2.2 also apply for works.

iii. National Shopping (NS): Small works may be procured in accordance with national shopping (Request for Quotations) provisions of PPA and PPR, provided those are included in the Procurement Plan agreed with IDA.

7.5 Consultants’ Services and Training: It is assumed that international technical assistance/consulting will be required as there will be a number of procurement of services of complex nature under the URP. In addition of international technical assistance/consulting, local technical expertise may be needed to assist the URU\ Implementing agencies to review technical specifications, schedule of requirements and cost estimates to be submitted by project managers. Such local consultants may be firms or individuals based on specific needs and their hiring would follow provisions of the WorldBank’s Consultant Guidelines January 2011. A few packages may also go for procurement of technical assistance/consulting services.

154. Major consulting assignments would relate to Construction of URU with training facility and testing laboratory, Strategic Studies, Training, Exercises and Drills Program monitoring and evaluation (M&E), procurement and financial management. Furthermore, there will be consultants to provide technical assistance to the implementing agencies for project implementation and monitoring.

7.5.1 Short lists of consulting firms for services estimated to cost less than Taka 24.0 million (US$300,000 equivalent) per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the IDA’s Consultant Guidelines. The methods of procurement that can be used are as follows:

i. Quality and Cost Based Selection/Quality-Based Selection (QCBS/QBS): Consulting services through firms estimated to cost Taka 24.0 million (US$300,000 equivalent) and above per contract will be selected following QCBS/QBS in accordance with IDA’s Consultant Guidelines. .

ii. QCBS/Fixed Budget Selection (FBS): Services through firms estimated to cost less than Taka 24.00 million (US$300,000 equivalent) per contract shall follow the QCBS/ FBS method in accordance with IDA’s Consultant Guidelines.

iii. Selection Based on Consultant Qualification (CQ)/Least Cost Selection (LCS): Services through firms estimated to cost less than Taka 8.0 million (US$100,000 equivalent) per contract may be procured following CQ or LCS in accordance with IDA’s Consultant Guidelines..

108

iv. Single-Source Selection (SSS): Specific consultants’ services through firms conforming IDA’s Guidelines (paragraph 3.8 to 3.11) may be procured following SSS under IDA Guidelines. This includes staff training and capacity development in project management and implementation.

7.5.2 Individual Consultants (IC): Services for assignments for which teams of personnel are not required and the experience and qualifications of the individual are the paramount requirement, will be procured through individuals in accordance with Section V of the IDA Guidelines. Individuals will be selected on the basis of their qualifications for the assignment. Individual experts for the IAs will be selected following this method.

7.5.3 All procurement methods for goods, works and services will be specified in the Procurement Plan and agreed with IDA before procurement process is started by the project offices.

7.6 Use of Standard Bidding and Contract Documents: For ICB procurement of goods and works, the use of IDA’s Standard Bidding Documents (SBD) is mandatory. For NCB procurement, URP\IAs may use the Government’s standard bidding document format with modifications incorporated and agreed with IDA (model tender documents for goods, works and non-consultancy services). For selection of any consulting firm, the WB’s Standard Request for Proposals (RFP), including standard contract form will be used. Depending on the type of procurement, the Standard Bid/Proposal Evaluation Forms of the World Bank, and of GoB when those become available, will be followed for submission of evaluation reports.

7.7 Cancellation of ongoing procurement process, and re-invitation of tenders/ proposals for the same, will require prior no-objection from IDA irrespective of procurement method and value of contract.

7.8 System for Handling Complaints: A credible system of handling complaints would be put in place at the IAs. The salient features of the system will be a standard protocol with appropriate triggers for carrying out investigations, taking actions pursuant to PPA/PPR against parties involved in inappropriate practices in procurement process, and including submission and disposal of complaints within the timeline stipulated therein. In its premises, IAs will introduce a complaint box and during pre-bid meetings, bidders will be informed of their rights to complain. For ICB/international selection of consultants the complaint redress mechanism under IDA guidelines will apply.

7.9 Additional Procurement Risk Mitigation Measures: In addition, the following steps will be followed as part of procurement and implementation arrangements: (a) by date………agencies under URP will have at least one person with completed training on procurement arranged by URP-PCMU, and all Project Managers (PMs) will have completed specialized training arranged by URP-PCMU and The World Bank on red flags of fraud and corruption; (b) all bid evaluation reports of contracts awarded by URP-IAs will cover verification of recommended bidders’ post-qualification information [for goods and works]; (c) all contract negotiations will be preceded by additional due diligence by URP-PCMU/IAs/PMs on verification of recommended consultants’ experience and curriculum vitae of key staffs [for consultancy services] (d) bidders will be made aware about fraud and corruption issues through bidding documents and pre-bid meetings; (e) contracts will be awarded within the initial bid validity period, and IAs/PMs and URP-PCMU will closely monitor the timing; (f) action is taken against corrupt bidders in accordance with Section I of the Bank’s Procurement/Consultant Guidelines besides provisions of PPA/PPR; (g) records and all documents regarding public procurement are appropriately maintained, preserved and archived, in accordance with the Bank Guidelines and PPA/PPR, to facilitate smooth procurement audit or post-review; (h) contract award information published on CPTU and IAs websites within two weeks of contract award

109

(and in UNDB and Bank’s external website for ICBs or international consultancies); and (i) timely payments to the suppliers/ contractors/consultants are ensured; (j) a Procurement Audit Consultant (PAC)is recruited by URP-PCMU to review 15-20% of contracts under IAs with a Terms of Reference (ToR) acceptable to the Bank and (k) a Procurement Risk Mitigation Plan (PRMP) by URP-PCMU is introducedthrough reports submitted to IDA on a periodic (semi-annual) basis with a set of features as mentioned below:

(I) Alert bidders in pre-bid meeting:URP-PCMU/PMs through a notification will alert bidders during pre-bid meeting on consequences of corrupt practices (fraud and corruption, collusion, coercion, etc.). The alert message, among others, will include that if bidders are found to have adopted such practices, there may be remedial actions including debarment from bidding processes in conformity with the Bank’s Guidelines. For national competitive bidding, national bidders debarred, if any, under the PPA, will not be able to participate. In addition, in the pre-bid meeting, the bidders will be clarified for preparation of bids correctly.

(II) Alert internal officers/staff:URP-PCMU/PMs will issue alert letter(s) notifying on the

fraud and corruption indicators and the possible consequences of corrupt and similar behavior in procurement practices and action to be taken against the official staff if they are involved in such practices. Moreover, URP-PCMU will highlight that, in case of noncompliance or material deviation from IDA’s Procurement Guidelines, IDA may take remedial actions (i.e., withdrawal of funds, declaration of mis-procurement) for concerned contracts.

(III) Bid opening minutes: During the same day of bid opening, photocopies of the Bid

Opening Minutes (BOM) with readout bid prices of participating bidders will be submitted by BEC for circulation to all concerned. For prior review packages, such BOM will be shared with the IDA.

(IV) Low competition among bidders and high price of bids: The case(s) of low

competition (not solely based on number of bidders) in ICB and NCB cases, coupled with high-priced bids will be inquired into and further reviewed by URP-PCMU. The review and decision in this regard would be in the context of qualification criteria, the contract size (too small or too large), location and accessibility of the site, capacity of the contractors, etc.

 (V) Measures to reduce coercive practices: Upon receiving allegations of coercive practices

resulting in low competition, URP-PCMU/PMs will look into the matter and take appropriate measures. For prior review contracts, observations of URP-PCMU will be shared with IDA, along with the evaluation reports. URP-PCMU/PMs/IAs may seek assistance from law enforcing agencies to provide adequate security for bidders during bid submission. For ICB contracts, provision for bid submission through international/national courier services will be allowed and confirmation of the receipt of the bid will be informed to the bidders through e-mail.

(VI) Rebidding: In case of re-bidding, URP-PCMU will inquire into the matter, record and

highlight the grounds of re-bidding (i.e. corruption or similar, high bid prices etc.) along with recommended actions to be taken. For prior review of cases, all such detailed reports will be sent to IDA.

(VII) Filing and record-keeping:URP-PCMU/PMs will preserve all records and documents

regarding their public procurement in accordance with provisions of the PPA. These records will be made readily available on request for audit/investigation/review by the Development Partners and the Government.

110

(VIII) Submission of PROMIS report: URP-PCMU will submit quarterly report based on The

Government’s PROMIS (Procurement Management Information System) format to IDA, which is available at the website of CPTU (www.cptu.gov.bd).

(IX) Publication of award of contract:URP-PCMU will publish contract award information

within two weeks of contract award on its website, dgMarket/UNDB online, and CPTU’s websites with the following information: identity of contract package, date of advertisement, number of bids sold, number of submitted bids along with names, bid prices as read out at bid opening, name and evaluated price of each bid, number of responsive bids along with name of bidder, name of bidders whose bids were rejected and brief reasons for rejection of bids, name of the winning bidder and the price it offered, proposed completion of date of contract, as well as a brief description of the contract awarded.

 7.10 Procurement Plan: A procurement plan covering all major procurement packages for the first 18 months of the URP has been prepared. As part, IAs shall submit procurement plans for their respective proposals. It will also be available in the Project’s database and in IDA’s external website for this project. The Procurement Plan will be updated in agreement with URP-PCMU, semi-annually, to reflect the actual project implementation needs and adjustments thereof.

7.11  Review by IDA of Procurement Decisions: The review by IDA of procurement decisions and selection of consultants will be governed by Appendix 1 of the Bank’s Guidelines. For each contract to be financed by credit, the threshold for prior review requirements and post review contracts will be identified in the Procurement Plan. During the first 18 months of the project, IDA will carry out prior review of the contracts. This prior review threshold will be updated annually based on the performance of URP-PCMU, and the initial prior-review thresholds of the following contracts for the first 18 months are mentioned below:

i. For Goods: All the ICB contracts and direct contracts irrespective of estimated cost. The NCB contracts estimated to cost equivalent or more than US$ 1,000,000.

ii. For Works: All the ICB contracts and direct contracts irrespective of estimated cost. The

NCB contracts estimated to cost equivalent or more than US$ 10,000,000. iii. For Non-consulting service: All the ICB contracts and direct contracts irrespective of

estimated cost. The NCB contracts estimated to cost equivalent or more than US$ 1,000,000.

iv. For Consultant’s Services: All contracts estimated to cost USD 500,000 equivalent or more

for firms and USD 200,000 equivalent or more for individuals, all single-source contracts. All Terms of References of the consultants are subject to the IDA’s prior agreement.

7.12 Post Review:For compliance with the Bank’sprocurement procedures, the Bankwill carry out sample post review of contracts that are below the prior review threshold. Such review (ex-post and procurement audit) of contracts below the threshold will constitute a sample of about 15 percent (fifteen percent) of the post-review contracts in the project. Procurement post-reviews will be done on semi-annual basis depending on the number of post-review contracts. Post-review will also include assessment of the performance of URP’s procurement team, including adequacy of due diligence exercised by URP, and regularity of procurement-related reporting and record-keeping. In addition to Bank’s post review activities, PCMU will appoint independent consultant to conduct Procurement Post Review for each financial year and will share the findings with the Bank.

111

7.13 Electronic government procurement (e-GP): All NCB procurement under URP project will be allowed to be done through electronic government procurement (e-GP). e-GP has been rolled out in June 2011 under The Government’s Procurement Reform. The Bank has approved the system to use in NCB contracts under Bank-financed project in Bangladesh.

7.14 Other Actions: Other actions to be taken during implementation to improve the procurement governance are:

(a) URP-PCMU Procurement Unit officials s and other previously trained officers to work in this project will attend refresher courses organized by CPTU/IMED; and,

(b) URP-PCMU will submit a training plan for all concerned procurement staff in IAs that will undergo procurement training (three-week and short refresher courses) during the tenure of the project.

(c) In addition to the local training under PPRP II, the PD and the PFP may take overseas procurement training.

7.15 Review of Procurement Performance: IDA will monitor the compliance with the requirements of procurement methods and performance standards on a continuous basis. As part of the project’s planned annual review/mid-term review, a comprehensive assessment of procurement performance will also be carried out. Based on the review, in consultation with the Government, the WB may revise the prior review threshold, including the procurement and selection methods.

7.16 Overall Procurement Arrangement. It has been already mentioned that all IAs project managers are required to prepare a Procurement Plan (which can be an update of the version included in the CP) in accordance with formats prescribed by IDA or/and PPA 2006/PPR 2010; and these will have to be reviewed by URP-PCMU, and concurred by the World Bank before implementation and updated regularly on a half-yearly basis.

7.17 Strengthening Procurement Capacity: For procurement under URP project, the PMs will conduct their own procurement. This requires significant strengthening of IAs’ capacity in undertaking public procurement. In order to strengthen IAs’ procurement capacity following measures will be taken upfront:

(i) Special Training Course: Prior to implementation, URP-PCMU will arrange a five-day customized training course, covering IDA Procurement Guidelines and the PPR 2010. All officials handling procurement and/or holding membership of BECs are required to participate in this training program. No organizational staff should be allowed to handle procurement without appropriate procurement training. Furthermore, the procurement consultant (PC) will provide periodic training who will be designated upfront during submission of application.

(ii) Bid/Proposal Evaluation Committee (BEC/PEC) in the IAs shall have at least two members from outside the IAs;

(iii) IDA will prior review the first contract of goods, works and services regardless of value;

112

8. Environment (Including Safeguards)

 

155. The Project overall is environmentally and socially beneficial, since the objective is to strengthen the capacity of GoB agencies to plan for and respond to emergency events, and to reduce the vulnerability of future building construction to disasters in Dhaka and Sylhet. The project activities which may trigger environmental safeguard issues are upgrading or construction of emergency management infrastructure and purchase of new safety and disaster equipment to strengthen the resources of FSCD and EOCs for DCCs and SCC.

156. The environmental impacts due to the infrastructure development (small-scale construction/upgrading buildings to accommodate a National Coordination Center, a National Disaster Management, Research and Training Institute, Emergency Operations Centers and Control Rooms) and due to the installation of new safety equipment for FSCD, handling, use and disposal of dysfunctional equipment are likely to be short term, site-specific, no sensitive or reversible, and in every case, mitigation measures can be designed to overcome or reduce the negative environmental impacts. Considering the level of possible impact, the environment assessment (OP/BP 4.01) policy has been triggered for the proposed operation and the Project is classified as “Category B”. The Project may consider the retrofitting of public buildings (hospital, office, educational institution etc.) in the future. In that case environmental risk associated with the investment will be reviewed through an environmental assessment.

157. An Environmental Management Framework (EMF) for the Project has been prepared. The EMF highlights relevant general policies and provides guidance on: (i) environmental concerns and benefits obtained from the construction of warehouses for storing emergency evacuation equipment; (ii) environmental concerns and mitigation outlines for retrofitting buildings to reduce earthquake vulnerability; and (iii) terms of reference for preparing the Strategic Environmental Assessment (SEA) for integrating environmental concerns into development planning. Under Component B of the Project to support long-term building retrofitting and code, an SEA will be developed. The SEA will give guidance on the environmental consideration of the building code. The EMF has been disclosed as per the Bank Policy on Disclosure of Information.

158. PIUs will be established in each of the IAs for day–to-day execution of the project components. These PIUs will include social and environmental safeguards compliance management. Each IA will appoint an environmental safeguard focal person, and the PCMU will have an Environmental Specialist with an environmental background to strengthen the project execution at present and in the future. The Environmental Specialist will be responsible for providing support for environmental compliance in the project activities and coordination of the multi-agency setup. S/He will share biannual reports with the project coordination committee. S/He will ensure contractors provide due diligence in following the environmental safeguard concerns. A Social Development Officer with a social science background will be engaged to strengthen the social management capacity of the PIUs.

113

159. RAJUK will additionally receive the support of a Senior Environment Specialist for the finalization of the SEA. The RAJUK PIU may hire a consulting firm for conducting the SEA in close collaboration with the multiple departments. The URU will have an Environmental Unit for the strong execution of environmental safeguard in retrofitting buildings. Environmental safeguard will be given due diligence during independent mid-term review and project completion.

160. The PCMU, with the input from each PIU, will prepare a half yearly progress report on environmental management and will share the report with the Bank for review. In addition, the effectiveness of screening, monitoring and implementing the EMP will be carried out by an independent M&E Consultant hired as a third-party monitor. The Annual Environmental Audit Report prepared by the third-party monitoring firm will be shared with the safeguards secretariat.

161. Public consultations for the EMF have already been conducted. The EMF, documenting the mitigation measures and consultation process, will be made available for public review in both English and Bengali. Workshops have been organized at the local and national levels to disclose the findings of the EMF. The EMF has been disclosed in the Bank Info shop on January 15, 2015.

9. Social (Including Safeguards)  

162. The overall social impacts are expected to be positive. As per the project description,civil works construction under the safety and disaster management facilities and infrastructure could generate social safeguards issues. The proposed activities for assessment of vulnerability of critical and essential facilities and lifelines trigger social development issues including strategy for inclusive communication and participation. All construction is expected to be on existing or available public land without any encumbrances. However, in critical circumstances, additional private land can also be acquired and public land can be resumed from private uses causing displacement.

163. OP/BP 4.12 Involuntary Resettlement: In the event that land acquisition or population displacement cannot be fully avoided, participatory and transparent processes would be followed in accordance with the Bank’s operational policy and guidelines. However, land acquisition is not anticipated under the project. In the case that it is necessary, the National regulatory framework will be followed for documentation of transfer of government owned and donated land. Voluntary donation of land will be accepted only when the interventions are not location sensitive and the potential donor is not exposed to any threat or coercion. The SMF will be a guiding tool for social impact assessment and preparation and implementation of social management plans (SMP) or resettlement action plans (RAP), as appropriate.

164. OP/BP 4.10 Indigenous Peoples: The country’s Small Ethnic Communities with indigenous language and culture are concentrated in the Chittagong Hill Tract (CHT) districtsnamely Rangamati, Khagrachari and Bandarban under the Chittagong Division. They are alsodispersed in small proportions in the plain districts. The Small Ethnic Communities in the city of Dhaka are not living as a distinct community. However, in SCC, many of them are living in small clusters of 20 to 75 households. The project approach will be to avoid any adverse social impact on the Small Ethnic Communities but they will be covered for enhanced benefits through inclusive design, construction and operation.

114

165. As per the project description, investment activities include construction and/or upgrading buildings for technical and institutional support services enhancing urban resilience to disasters. All these constructions will expectedly be on existing or available lands. However, in critical circumstances, additional private lands can also be acquired and public land can be resumed from private uses. There is a small concentration of Small Ethnic Communities (indigenous by language and culture) in the city areas of DCCs and SCC.Given that the urban areas are densely populated; displacement of people may not be avoidedfully. In unavoidable displacement events, participatory and transparent processes would befollowed in accordance with the Bank’s operational policy guidelines for resettlement andrehabilitation of affected persons. The national regulatory framework will be followed forany land acquisition and documentation of transfer of government-owned and donated land.A strategy of inclusive communication and participation will be followed for the activitiesproposed for assessment of vulnerability of critical and essential facilities and lifelines in the City Corporations. 166. The IAs have developed the SMF that includes guidelines for attending involuntary land acquisition and displacement issues in compliance with the Bank’s safeguard operational policies and applicable national regulatory framework on land acquisition. The IAs will ensure that sound methodologies are followed and no displacement is unattended to check impoverishment rather than improvement of livelihoods. They will ensure that none of the tribal people is affected by any project intervention rather than benefitted. Voluntary donations of land will be accepted only when the interventions are not location sensitive and the potential donor is not exposed to any threat or coercion.

167. The SMF will include a Grievance Redress Mechanism (GRM) for the Project to answer queries, receive suggestions and address complaints and grievances about any irregularities in application of the guidelines adopted in the SMF for inclusive project design, and assessment and mitigation of social and environmental impacts. Based on consensus, the procedure will help resolve issues/conflicts amicably and quickly, saving the aggrieved persons from having to resort to expensive, time-consuming legal action. The procedure will however not pre-empt a person’s right to go to the courts of law.

10. Institutional Setup for Safeguards

168. PIUs will be established in each of the IAs for day–to-day execution of the project components, including social and environmental safeguards compliance management. Each IA will appoint its own safeguard focal persons, including an Environmental Specialist with an environmental background to strengthen the project execution at present and in the future. The Environmental Officer will be responsible for providing support for environmental compliance in the project activities and coordination of the multi-agency setup. S/He will share biannual reports with the project coordination committee. S/He will ensure contractor provide due diligence in following the environmental safeguard concern. A Social Development Specialist with a social science background will be engaged to strengthen the social management capacity of the PIUs.

169. RAJUK will additionally receive the support of a Senior Environment Specialist and an Occupational Health and Safety Specialist for the finalization of the SEA. The RAJUK PIU will hire a consulting firm for conducting the SEA in close collaboration of the multiple departments. Environmental safeguard will be given due diligence during independent midterm review and project completion. 

115

11. Indicative Eligible Expenditure  

170. Under various windows the following expenditures will be allowed, which will be used to support the activities for enhancing the quality and improvement of institutional performance.

11.1 Training 11.1.1 Expenditure for participation in customized training courses for professional development of

permanent academic staff at home and abroad; 11.1.2 Expenditure for foreign training of permanent staffs for developing expertise on operations

and maintenance of sophisticated laboratory equipment procured for the project; (all Windows) provided that;

(a) For which training is not available in Bangladesh; and

(b) Not exceeding 30 man-days;

11.1.3 Expenditures for conferences, seminars, workshops held within Bangladesh related to the project activities.

11.2 Academic Collaboration

171. Academic and research collaboration with local and foreign universities, institutes, research organizations, industries, professional bodies and associations

11.3 Operational Costs

172. Maximum 2% of sub-project cost to meet operational expenses (e.g., temporary renting of out of site space for project activities, charges for electricity, water in out of site project office/camp, petrol and lubricants for motor vehicles, motor bikes and speed boats, commuting costs of sub-project’s temporary employees, overtime paid to support staff for arduous work, repair of sub-project equipment, repair and maintenance of motor vehicles, motor bikes and motor boats, hiring of labors for shifting of sub-project furniture/ equipment/materials, honorarium, committee expenses and contingencies etc.

12. Non-Eligible Expenditure

 

12.1 Salary and allowances for the permanent professional and support staff of the IAs;

12.2 Any establishment/recurring/revenue expenditures of the agency/ organization;

12.3 Large civil works likeconstruction of new physical infrastructure i.e., building, road, laboratory, workshop, auditorium, library, seminar hall/room/facilities etc. which are not related to the project;

12.4 Costs not related to the project activities and not included in the work plan, financing and procurement plans and budget.

116

13 Cost Escalation and Re-appropriation  

Due to various reasons like price hike of goods, works or services and/or depreciation of value of Taka, the total approved cost of a project may require to be adjusted against the current market prices. In such cases the total approved cost of a project may be allowed to be adjusted upwards up to 10%. Such cost adjustment proposals with revised budget breakdown and justification shall have to be sent to the URP-PCMU through IAsfor approval by the Project Director, URP-PCMU. If the required adjustment is above 10%, then URP-PCMU shall send the cost adjustment proposal to HOPEfor approval. Re-appropriation of budget will be allowed in cases when it becomes necessary for achieving project’s objectives and for rationalizing cost under different heads of budget. However, budget re-appropriation proposal must be prior-approved by the project director of URP- PCMU.

14. Amendment  

173. This Operations Manual should not be considered as a final document that cannot be amended, modified or updated to respond to problems that may arise in the course of project implementation and to reflect the new imperatives and lessons learned from the experience. It is expected that during the mid-term review, the need for such amendments/modifications will be considered and if required will be executed by the IAs in consultation with MoP, MoHPW, MoDMR&MoLGRD&C, and the World Bank. In the interim period URP-IAs will be the final authority to explain/interpret any ambiguity that may arise.

117

Annexure I

Operational Risk Assessment Framework (ORAF)

118

Annexure I

Operational Risk Assessment Framework (ORAF) Urban Resilience Project, Appraisal Stage

1. Project Stakeholder Risks Rating Moderate Description: Through the ongoing Bank / GFDRR TA, the Bangladesh Urban Earthquake Resilience Program, the various stakeholders across government and civil society have been consulted in the preparation of the project.

Risk Management: The ongoing TA will continue to engage all stakeholders from 40+ government agencies and civil society organizations through the project preparation and implementation process. Local focus groups, stakeholder meetings, and dialogue with all relevant individuals will inform all aspects of the project.

2. Implementing Agency Risks (including fiduciary) 2.1 Capacity Rating: Substantial Description: RAJUK and DDM have limited experience with World Bank procurement and FM procedures and lack adequate staffing for procurement and financial management.

Risk Management: RAJUK has not implemented an IDA project and substantial support will be required. DDM has been implementing the IDA-supported Emergency 2007 Cyclone Recovery and Restoration Project, Component D1, since 2009. This has built some capacity within DDM in implementing similar projects. The following measures will be put in place:

(i) Procurement Specialist to assist in preparation of procurement documents. (ii) Financial Management Specialist to assist in ensuring smooth flow of project funds,

preparation of IUFRs, preparation of annual financial statements, coordination of project audit, among other relevant tasks.

(iii) A functional webpage with procurement-related information accessible to the public. A system for handling complaints and a database for recording, monitoring and following up all project procurement activities.

(iv) Procurement guidelines will be issued to ensure clarity on procedures and training will be provided to staff of the Implementing Agency.

119

2.2 Governance Rating: Substantial Description: While there is broad ownership for the project across implementing agencies, there may be risks associated with delayed decision-making due to bureaucratic processes in place or due to potential lack of agreement on proposed measures. This could affect project preparation and implementation.

Risk Management: The process of decision-making would be assisted through continuous discussion and engagement with the PMU and line departments on project activities and overall program reforms. The PMU will coordinate with the various departments to ensure streamlined project implementation. To support rapid decision-making, the Chairperson of the PMU will have the convening power to align the objectives of the departments associated with the project.

3. Project Risks 3.1. Design Rating: Substantial Description: The project is multi-sectoral and complex by nature. It involves a wide variety of Departments, including DNCC, DSCC, SCC, FSCD, DDM, and RAJUK, etc. These Departments are not used to working together cohesively. This may create confusion and slow project implementation.

Risk Management: According to a recent IEG Report, in most cases, multi-sector lending has proved most effective for getting funding to the right areas at the state level. Multi-sector lending has proved an indispensable component for drawing the line ministries into a dialogue on development priorities. The PMU will serve as the point agency for all line ministries and will streamline the communication between these agencies and the Bank. In addition, the PMU will have the organizational power to implement and monitor projects, and institute standard operating procedures for all project components (e.g. bidding documents, procurement, etc.). It will also ensure compliance with all bank rules, including financial management and disbursement of funds and compliance with safeguards standards. Throughout project implementation, the PMU will monitor and evaluate the progress of the various components and keep the Bank informed of the situation on the ground. It is also critical that the focus of the project is at the city level – and with City Corporations – in order to ensure institutional complexity can be managed at a local level.

3.2. Social & Environmental Rating: Low Description: The project is expected to have positive social and environmental consequences for residents who will benefit from improved emergency response systems. But there are

Risk Management: The PMU and consultants will provide guidance to the implementing agencies to prepare acceptable EMF, and SMF for sub-projects (as appropriate) and monitor implementation. Independent validations will also be provided for the social and environmental aspects of the

120

likelihood of limited adverse social and environmental impacts those needs to be handled in compliance with the Bank policy on environmental and social safeguards. Given the performance of the past experience of the multiple implementing agencies, identification and management of social and environmental safeguard compliance issues will be a challenge.

project. Bank missions will review and clear sub-project specific safeguard documents and monitor their implementation through site visits, discussions with government parties and consultants, and by executing thorough reviews of reports produced by the implementing agencies. The Bank will provide guidance in ensuring compliance with safeguard documents as necessary.

3.3. Program & Donor Rating: Low Description: Several donors have been active in Bangladesh’s DRM activities. There is a risk of overlapping activities and lack of coordination.

Risk Management: To mitigate this risk, the Bank and the PMU will (i) make project documents available as per the World Bank policy on Access to Information and GOB’s Right of Information Act; (ii) closely coordinate with the UNDP team regarding the Comprehensive Disaster Management Program, and (iii) will continue to regularly inform all associated donors about project progress through ongoing dialogue and formal updates.

3.4. Implementation & Sustainability Rating: Moderate Description: The GoB typically faces issues with the continued adequate budget allocations for operation and maintenance of critical infrastructure, and various government agencies have faced continued funding maintenance problems because of budget shortfalls.

Risk Management: Adequate funding for O&M will be available under the project. In addition, the project will establish Emergency Operations Centers within the major line ministries, which will undertake minor maintenance and overall coordination over time.

Non disclosable Information for Management Attention (Optional) Comments: 5. Project Team Proposed Rating Before Review Moderate

66

Annex II: Governance and Accountability Action Plan (GAAP)

67

67

Annex II: Governance and Accountability Action Plan (GAAP)

Urban Resilience Project, Appraisal Stage Risk Factors Mitigating Measures Timeline Responsibility

Institutional Environment

There exists a lack of coordination among agencies which may hamper implementation of this complex project.

Creating awareness and understanding across Government ministries and agencies involved in urban disaster preparedness and response to ensure long term commitment and sustainability. Formal establishment of a PSC comprising representation from Planning Division, MoP, ERD,, MoLGRD&C, MoHPW, MoDMR, MoHA, DNCC, DSCC, SCC, RAJUK,DDM, AFD, and FSCD. Appointment of Project Directors and the development of a clear organogram.

By Negotiation Within 1 month after Effectiveness Within 1 month after Effectiveness

PCMU DNCC RAJUK DDM

Program Design and Oversight

A large number of stakeholders and coordination is necessary for successful project implementation.

Clear assignment of roles and responsibilities, at both policy and program delivery levels, including defining accountability relationships, monitoring responsibilities, remedial actions, among others, in program specific policy documents. Development of separate policy documents to include clear definitions of rules, assignment of roles and responsibilities and formulation of control and accountability measures. Public Information and Awareness Campaign.

By Negotiation

By Negotiation

Ongoing

PCMU DNCC RAJUK DDM

Management Supervision and Capacity

Human resource constraints continuously prove to be the biggest challenge to conducting business. There is also insufficient technical capacity for specific administrative functions, which also hampers programs at the service delivery level.

Appointment of Work Assistants as per Government sanction. Appointment of technical specialists to complement Government officials at national level. Provision of financial and technical resources (i.e. computers and other equipment, internet connectivity, etc.).

End of first year of implementation

End of first year of implementation

PCMU DNCC RAJUK DDM

68

Risk Factors Mitigating Measures Timeline Responsibility

There is an acute lack of adequate staffing and resources for proper supervision. The lack of internet connectivity and computer equipment also provides large challenges to the data flow upstream.

End of first year of implementation / Ongoing

Monitoring and Evaluation

Functions of dedicated cells or units for monitoring and evaluation.

Establishment of Monitoring & Evaluation cell staffed with mix of Government officials and full-time technical specialists to review program information and provide analyses for policy decision support.

Use of electronic tools to capture real time information from program locations and transmission to Monitoring & Evaluation cell for review and analysis.

Three months into implementation (TOR) completed

End of first year of implementation

PCMU

Access to Information & Transparency

Detailed information on program rules, roles of implementers, and responsibilities, is not readily available and the access to information is limited.

Assignment of information focal points in implementing agencies.

Conducting a comprehensive communication campaign.

Making available any pertinent project or program documents requested by any member of the public, other than those protected under relevant legal provisions (i.e. personnel information), as per the Government’s Rights To Information (RTI) Act and the Bank’s Access to Information Policy, and submitting a report of queries made and responses provided, including time taken, for Bank review. Detailed project information to be available to public.

By Effectiveness

Annually

As and when needed

Annually

PCMU

DNCC

RAJUK

DDM

70

Annex III

Financial Management Manual

71

1. Introduction

1. Project financial management is a process which brings together planning, budgeting, accounting, financial reporting, internal control, auditing, procurement, disbursement and the physical performance of the project with the aim of managing project resources economically and efficiently in achieving the project's development objectives (PDOs). Sound financial management is essential for all development projects. It is more than an administrative and control process. Sound financial management is a critical ingredient of project success. Timely and relevant financial information provides a basis for better decisions, thus speeding the physical progress of the project and the availability of funds, and reducing delays and bottlenecks. Moreover, sound Financial Management is a deterrent to fraud and corruption.

2. Objectives of Project Financial Management System

2. The objective of project financial management system is to:

• Provide essential information to the project authority in managing, implementing and supervising the projects and also to the government oversight agencies and other stakeholders.

• To provide guidelines on the financial management procedures and systems of theprojects facilitating the monitoring and evaluation tasks conducted by the Bank andrelevant government agencies;

• Ensure that resources are utilized economically and efficiently for the intended purposes of the project.Enhance transparency and promote accountability at various levels. To enhance transparency in project financial management to ensure the proper and effective use of project resources;

• Provides internal controls and the ability to quickly identify unusual occurrences and deviations.

• To provide clarified requirements, processes and procedures of project managementfacilitating project implementation

3. Source of Financing (July 2015 to June 2020)

3. Bangladesh Urban Resilience Project (URP) is an investment project under Social, Urban, Rural & Resilience Global Practice. The financing arrangements have been finalized in between Government of the People’s Republic of Bangladesh and International Development Association.

4. In the Financing Agreement, it has been agreed that International Development Association will provide financial assistance against the following expenditures:

72

Table 13: Expenditures

4. Project Financing Allocations Disbursement, Reporting and Auditing  

4.1 Operating Costs under project Management  

5. Operating cost of PIU will include: Fuel & Lubricants, Gas & Electricity, Printing & Stationary, Refreshments for the purpose of meeting at the project office, Advertisements, Paper & Periodicals, Office equipment maintenance, Furniture & Fittings maintenance, Telephone, Mobile, Internet bills & maintenance, Fee for TOC/POC/PEC/TEC member and other project committee, and Hiring of vehicles.

4.2 FM Arrangements (Flow of Funds and Designated Account)

6. Funds will be disbursed through fourDAs to be established within each PIU for the Project in the form of Convertible Taka Special Account (CONTASA), to be opened in a branch of a commercial bank acceptable to the Bank. The bank will have adequate experience, manpower, network and authority to process transactions on a fast track basis. The approved government procedures governing the establishment of DAs shall be followed in all respects and each PIU will be responsible for their own DAs. Direct payment methods would also be allowed to process large payments to the contractors/consultants, particularly those in foreign currency to avoid exchange loss. Replenishment to DAs, and documentation of expenditures made from the DA, will be done on a monthly basis upon submission of claims along with Statement of Expenditures (SoE)/full documentation following thresholds to be indicated in the Disbursement Letter. The ceiling on the advance to DAs will be set at four months of estimated average project expenditures.

4.3 Disbursement  

7. Disbursements will initially be made through traditional transaction based reporting with an option to transfer to report based disbursement if the IAs can demonstrate the capacity to generate timely and accurate financial statements.

SI Category Amount of the Financing

Allocated(expressed in SDR)

Percentage of Expenditures to be Financed (inclusive

of Taxes)

1 Goods , Works, non-consulting services, consultants’ services, Training and Incremental Operating Costs under Parts A, B, C and D of the Project (except for works under Part D of the Project)

122,800,000 100%

2 Emergency Expenditures under Part E of the Project

0 100%

Total Amount 122,800,000

73

4.4 Accounting and Reporting  

8. The Project will follow GOB Project Accounting Manual in maintaining books of accounts and in complying with monthly, quarterly and annual financial reporting requirements of various government agencies as well as the WB. An off the shelf accounting software has been in operation in the original project to record financial transactions and produce financial information in order to prepare and submit quarterly interim unaudited financial reports (IUFRs) acceptable to IDA.

4.5 Audit Arrangements 4.5.1 External Audit

9. External audits of the Project will be carried out by the AuditorGeneral of Bangladesh. The annual audit reports will be submitted within six months of the end of the financial year and monitored in the web-based Portfolio and Risk Management (PRIMA) system. The audited financial statements will be made available for public disclosure.

4.5.2 Internal Audit

10. Except RAJUK, the project will undertake operational audit on an annual basisby outsourcing the function to a firm of chartered accountants under agreed ToRs. This audit will examine the physical, financial and operational aspects of project implementation and provide timely feedback to project management regarding any control weaknesses or management improvements required. Internal audits of RAJUK will be carried out by its own internal audit department on an annual basis. The scope of the operational audit would be comprehensive including review of financial transactions, efficacy of internal control arrangements and evaluation of project performance against the project objectives.

5. Spending money under Operating Cost

 5.1 Nature of Operating Cost  

11. The following expenditures fall under the category of operating cost: Day-to-day coordination, administration and supervision of Project activities, including leasing and/or routine repair and maintenance of vehicles, equipment, communication expenses, translation, printing, photocopying and postal expenses, bank charges, advertising expenses, insurance, costs of clearing, forwarding, inspection, survey and transportation of goods, Project related meeting expenses, Project-related travel, subsistence and lodging expenses.

5.2 Record Keeping  

12. The Accounts Officer (AO) shall be responsible for maintaining proper books of accounts. Every expenditure shall be supported by proper vouchers, bills, receipts and other supporting documents. A statement of expenditures shall be prepared after receiving the 50% of the budgeted amount. The statement supported by the photocopies of supporting documents, duly signed by the AOs shall be sent to URP PCMU for checking and verification. If the expenditures are found to be satisfactory along with the Progress Report, then the rest 50% will be given to the AOs. The final project completion report along with the financial statements supported by copies of bills, vouchers, receipts, etc. shall be sent to the Project Directors, URP. However, audit by the FAPAD will be conducted at his office in due course of time. The AOs shall also be responsible for the audit and meet up the audit queries, if any. 13. Most importantly, the AOs shall also be responsible to look after the expenditures made by the Institutions and their proper book-keeping.

74

Figure 7: Routine Financial and Accounting Activity Cycle

Recording of Financial 

Information 

Obtaining Fund Release and Authorization 

Budget Preparation, Submission of ADP/RADP 

 

 

Payment Processing for Activities under 

URP 

Extend Cooperation to 

Auditors  

Obtaining Sanction of ADP 

in National Budget 

Preparation of Financial Reports 

Obtaining ADP/RADP Allocation 

6. Financial and Accounting Activity Cycle  

6.1 Routine Financial and Accounting Activity Cycle

75

14. The above diagram depicts the routine financial and accounting activity to be carried out by the finance section under URP. The activities are described in the following sections.

6.2 Budget Preparation, Submission of ADP/RADP  

15. The project budget will be prepared by the Project Director with the assistance of A Budget Committee consisting of the following officials

Project Director- Chairman

Deputy Director (Access) - Member

Deputy Director (Quality) – Member

Financial Management Specialist – Member

Accounts Officer – Member Secretary

16. The Budget Committee shall;

• Approve the formats in which the budget shall be prepared by different sections of the project • Determine time schedule for preparation and submission of project's annual budget • The Budget Committee shall be prudent while preparing the budget for the project with regard

to achievement and implementation of the Annual Budget • The URP Implementing Agencies (IA) will submit the annual original and revised budget to

the planning wing of the respective ministries (MOP, MoLGRD&C, MoHPW and MoDMR) for obtaining Planning Commission’s approval under Annual development Plan (ADP) and revised ADP

• Preparation of annual project plans, budgeting and identifying budget demand for the whole project

• Annual procurement and disbursement plans detailed for each contract and package • Quarterly procurement and disbursement plans detailed for each contract and package • Aggregation of annual and quarterly procurement and disbursement plans of the URP IAs and

budget demand for the URP IAs and AOs • Submission of approved annual plan and quarterly plan of the Project to the WB for getting

support in execution

Basis for project planning

• Financial Agreement, Project Appraisal Document (PAD), Feasibility Study Report (FS) • Real demand for implementation, management and supervising of the Project • Total demand from PMUs of USEOs in accordance with proposals • Consolidated financial reports of IAs and PMUs of USEOs

76

6.3 Expenditure Authorization against RPA

Processing Bills for Payments

17. The Financial Management arrangements at URP are to be guided by the following principles that:

• There are adequate and competent staffs and that there are proper segregation of responsibilities

and reporting relationship • There are proper delegation of financial power commensurate with the positions and well defined

approval procedures • Accounting structures provide accurate and complete information about financial transactions

related to each project components and financial activities • Timely and accurate financial management reports/statements are available duly certified by

external auditor • Records of expenditures maintained for each sub/ project by the cost categories of the approved

budget and actual expenditures are compared with budgeted amounts • Accounting records are to be maintained on a cash basis and balanced regularly • The records are supported by source documentation such as cancelled checks, bank statements,

invoices, contracts, travel reports, donor letters, in-kind contribution reports and personnel activity reports

• Records are preserved for three years following submission of the final financial status report • Adequate monitoring (internal audit) and reporting system guarantees timely action in case of default • Participating agencies or communities in-kind (non-cash) contributions are not required to be

recorded in the general ledger of URP, but must be accounted for, such as through the use of a memorandum records.

• Chain of events in processing bills for payments need to be specified, as example-Contractor/Supplier sends its Request for payment to Project

• Project FM Analyst prepares necessary documents for payments and sends to respective approving authority

• Within 5 working days, FMS reviews and verifies the eligible documents (in which clearly defining how much counterpart fund and how much IDA funds) and sends its certification of expenditures verification to PD

• PD send its Payment Order to respective Commercial Bank (C.B) • C.B makes payment to contractor Basis for project planning • Financial Agreement, Project Appraisal Document (PAD), Feasibility Study Report(FS); • Real demand for implementation, management and supervising of the Project; • Total demand from PMUs in accordance with proposals from IAs • Budget plan for Sub-projects which have been submitted for approval by respectiveauthorities • Consolidated financial reports of IAs and PMUs

6.4 Allocation of Fund  

Withdrawal/Disbursement of Funds from IDA 18. The URP shall maintain Convertible Taka Special Account (CONTASA) with a commercial bank on terms and conditions acceptable to IDA. The proceeds of the IDA credit shall be utilized exclusively in accordance with Development Credit Agreement. For further withdrawal from IDA credit will be on reimbursable basis against the actual expenditure from the Special Account funds, on a monthly basis or as and when required before the exhaustion of funds, keeping at least 80% of the advance in hand for future expenditures. All withdrawal application to the World Bank should be done through Electronically (E-Filing).

77

6.5 Internal Controls  

6.5.1 Definition and Purpose  

29. Internal Control comprises the whole system of control, financial and operational, established by the management in order to carry out project’s activities in an orderly and efficient manner; ensure adherence to policies and procedures; ensure maintenance of complete and accurate accounting records and safeguard assets of the project at each level of activity of the project to provide reasonable assurance that project objectives will be achieved, with particular reference to:

• The effectiveness of operations, • The economical and efficient use of resources, • Compliance with applicable policies, procedures, laws, and regulations, • The safeguarding of assets and interests from losses of all kinds, including those arising from

fraud, irregularity and corruption, and • The reliability of financial transactions and integrity of supporting staff.

20. The internal control system embraces concepts of effectiveness, value for money, compliance, fraud and financial controls.

6.5.2 Objectives  

22. The internal control forms part of the financial and accounting policies for the management of the Project. The objectives of the internal controls are to:

• Contribute to ensure adherence to GOVN's, donors' regulations and guidelines and project policies and procedures

• contribute to achieve clear and transparent financial practices • contribute to promoting operational efficiency • provide controls to safeguard the Project assets • Facilitate the early detection of errors and problems

6.5.3 Principles of Internal controls  

21. The basic principles of the internal controls are as follows:

• monitoring, checking and approving, by an upper level, of expenditures and procurements executedby the lower level

• defining responsibilities of project staff commensurate with position and level of authority • separating specific responsibilities of staffs; • using appropriate method to ensure proper custody of assets; • ensuring full and appropriate documentation; • using internal procedures for cross-checking of accounts, payments and transaction entries for

timely detection of errors • prepare annual inventory of assets

78

6.5.4 Categories of Control

22. In order to achieve accountability and transparency at all level, the URP’s internal control system shall include the following elements:

• Segregation of duties • Organizational structures • Authorization and approval procedures • Physical safeguards of documents and properties • Management review and monitoring • Accounting and Arithmetical procedures • Personnel arrangement • Supervision

6.5.4.1 Segregation of Duties

23. Roles and responsibilities shall be defined so as to ensure that:

• Areas of activity that are vulnerable to error, fraud or irregularities are separated so that no one person is wholly responsible for an activity without the independent check of another person of appropriate authority and competence and

• Clearly defined lines of authority and accountability. 24. These measures will:

a) Minimize the risk of non-detection of unintentional errors, b) Minimize the chances of collusion and intentional errors leading to fraud, c) Enable independent supervision resulting in efficient and accurate output.

6.5.4.2 Organizational Structures

25. Appropriate organizational structures shall exist to ensure that:

• Work is organized to maximum efficiency in the use of resources, eliminate duplication of effort, achieve objectives and plans and maintain a disciplined control environment,

• Adequate resources are deployed at all levels to meet objectives and plans, • Appropriate communication takes place, and • An operational ethics which fosters commitment to the project, itsobjectives and plans, and its

control environment. 6.5.4.3 Authorization and Approval Procedures

26. Appropriate authorization and approval procedures shall be introduced to ensure that: • Project policies, objectives and plans are adhered to, • Only legitimate activities are performed, • Integrity of systems through validation of data, • The use of systems and assets are controlled, and • The operation of authority is documented and a clear management and audit trail is maintained.

6.5.4.4 Physical Safeguards

27. Appropriate physical safeguards shall be established to:

• Limit access, systems and records to authorized personnel only; • Establish clear control of the use of assets, and custodial responsibilityfor them; • Ensure disaster recovery arrangements are in place (e g. fire proof/water proof storage for

files and records).

79

6.5.5 Essential Characteristics of Internal Control

• No one person handles all aspects of a transaction from beginning to end. Although a complete separation of functions may not be feasible for initial stage of URP, some measure of effective control may be obtained by planning the assignment of duties carefully

• It provides safeguards for all property, whether cash or other assets, and assure that it is used solely for intended purposes

• Physical assets should have proper identification mark, inventory register and annual verification system. The person who is responsible for the physical custody of the assets should not have the responsibility for keeping the records related to the assets

• Cash receipts should be recorded immediately and deposited to the bank account on a daily basis • Cash Book should be closed on a monthly basis • Bank statements should be reconciled monthly by a person other than the person who signs the checks • A petty cash fund for Taka 30,000.00 should be entrusted to a single person and used for all

payments other than those made by check. • Payments to the beneficiaries should be made by checks exceeding the amount of Tk. 5,000.00

and against approved invoices and supporting documents, if required under a contract • Accounts and records are maintained updated and financial statement is prepared by 7 of the

following month at the latest

6.6 Financial Information Recording 6.6.1 Bookkeeping, Accounting& Significant Policies  

28. Books of accounts for the project would be maintained using double-entry bookkeeping principles. Standard books/records (cash and bank book, ledger, trial balance etc.) would be maintained at the URP using an integrated computerized accounting system.

6.6.2 Cash Basis of Accounting

29. The project shall maintain accounts on cash basis like other Government department. Therefore, efforts shall be made to process payments as early as possible so that expenditures are recorded in the period in which they are incurred:

• Receipts will be recorded when cash is received and payments will be recorded when disbursements are made, not when liability arises

• Project shall employ consistent methods in maintaining records and in preparing financial statements 6.6.3 Books of Accounts and Supporting Documents

30. The project shall maintain books of accounts adequately to record:

• All sums of money received and expended by the project and the purposes for which the receipts and expenditure take place; and

• Assets procured for the project.

33. The principal accounting statements/books of accounts to be maintained are:

• Receipts Statements • Disbursement Statements • Petty Cash Statements • Payroll Registers • Bank Account Books (integrated as part of the General Ledger) • Petty Cash Books (integrated as part of the General Ledger) • General Ledger • Fixed Assets Register • Bank Reconciliation Statements

80

31. The books of accounts shall capture all financial data required to generate reports required by the Government and IDA and receipts, vouchers and relevant supporting documents shall be retained in systematic order for future references and audit purposes.

32. The financial management system would cover all project related transactions i.e. all sources (Government, IDA) and the use of funds would be accounted for and reflected in the financial statements of URP.

33. A chart of Accounts has been developed. The Chart of Accounts enables expenditure date to be captured and classified by project activities, components and disbursement categories.

34. Computerized accounting system would be installed and operated at URP. The system would provide information on the receipts and uses of funds and will automatically generate produce financial reports comparing budget with actual expenditure at any given time. The system would be able to provide financial data to measure performance that are linked to the outputs of the project.

6.6.4 The Significant Accounting Principle

35. Consistency- Accounting treatments of similar items should be consistently applied, either within a particular accounting period, or between one accounting period and the next.

36. Basis of Accounting - Financial Statements of URP shall be prepared under Historical Cost convention on GAAP (Generally Accepted Accounting Principles), on cash basis and Provisions of laws.

6.7 Record Keeping and Accounting    

37. The financial management system would cover all project related transactions i.e. all sources (Government, IDA) and the use of funds would be accounted for and reflected in the financial statements of URP.

38. A chart of Accounts has been developed. The Chart of Accounts enables expenditure date to be captured and classified by project activities, components and disbursement categories.

39. Computerized accounting system would be installed and operated at URP. The system would provide information on the receipts and uses of funds and will automatically generate produce financial reports comparing budget with actual expenditure at any given time. The system would be able to provide financial data to measure performance that are linked to the outputs of the project. 40. Standard books/records (cash and bankbook, ledger, trial balance etc.) would be maintained at the URP using an integrated computerized accounting system.

41. A register for fixed assets acquired should all assets should be grouped into the following broadcategories:

• Motor Vehicles • Office Equipment • Electrical Equipment • Audio Visual Equipment • Computers and Peripheral • Furniture and Fixtures

42. Periodical (at least annually) physical inspection of Fixed Assets shall be carried out and reconciled with fixed asset register. Discrepancies found shall be investigated into and appropriate action taken as well as remedial measures to be introduced to prevent recurrence of discrepancies.

81

6.8 Reporting 6.8.1 Financial Reporting at URP

43. The project will follow GOB Project accounting Manual in maintaining books of accounts and complying with monthly, quarterly and annual financial reporting requirements of various government agencies as well as WB.

• The Finance and Administrative Unit would also be responsible for preparing Interim Unaudited Financial Reports (IUFRs) on a quarterly basis, monitoring actual expenditure against forecast and coordinating with other units of URP to reconcile timely financial information.

• Quarterly IUFRs showing IDA, Government expenditure would be submitted to IDA and would include: (a) Sources and Uses of Funds (b) Use of Fund by Project Activity (c) Key Output Monitoring Report (d) Procurement monitoring Report – Goods (e) Procurement Monitoring Report – Consultants’ Services.

6.9 Auditing 6.9.1 Audit Arrangement

Objectives 44. Foreign Aided Projects Audit Directorate (FAPAD) of Comptroller and Auditor General (C&AG) is mandated to carryout development projects’ audit. In addition to FAPAD audit, the internal audit will be carried out by independent firm of Chartered Accountants in accordance with the agreed terms of reference (TOR). 45. The primary objectives of the audit will be:

1. To verify the accuracy and completeness of accounts to secure that all revenue and receipts collected are brought to account under the proper head, that all expenditures and disbursement are authorized, vouched, and correctly classified, and that the final account represents a complete and true statement of the financial transactions it purports to exhibit.

2. Review the underlying internal control systems and procedures to identify any material risks to complete, accurate and timely financial reporting, and

3. Render the audit opinions required under the project legal agreements. Therefore two types of audit will be carried out in Bangladesh Urban Resilience Project every year, which are:

6.9.1.1 Statutory Audit

46. Statutory audit Will be conducted annually by a hired Chartered Accountants firm. The audit report would be submitted to the Secretaries, MOP, MoLGRD&C, MoDMR and MoHPW with a copy to the Head of IAs.

6.9.1.2 External Audit

47. The annual financial statement of URP will be audited by Foreign Aided Project Audit Director of C&AG and will be submitted to IDA within six months of the end of each fiscal year. A Statement of Audit Needs (SAN) will be agreed with C&AG extending the audit focus on testing controls, preventing corruption and detecting transactions with corrupt practices.

82

7. Financial and Accounting Personnel 48. The Government of the People's Republic of Bangladesh has received a Credit (No. 5599-BD) in the amount of about US$ 173 Million from the International Development Association (IDA) toward the cost of Bangladesh Urban Resilience Project (URP). So the voluminous expenditures should be managed carefully, efficiently and accurately for which a strong Finance and Accounting Department is needed. 49. The Finance and Accounts Department should have the following personnel to manage the financial activities of the URP:

a) Financial Management Specialist (FMS) [To be recruited as consultant] b) Accounts Officer ( To be deputed from GoB staffs) c) Accountant ( To be deputed from GoB staffs)

Duties and responsibilities for each of the above noted finance and accounts personnel will be published in the advertisement

8. Financial Accounting and Recording System of URP 8.1 Accounting System

Meaning: It is the series of tasks in an entity by which transactions are processed as a means of maintaining financial records. Such a system should recognize, calculate, classify, post, summarize and report transactions. An accounting system supplemented by effective internal controls can provide management with reasonable assurance that assets are safeguarded from unauthorized use or disposition and that financial record are reliable to permit the preparation of financial information. Maintenance of Books/Records: The URP shall maintain cheque payment voucher (for payment through Banks), credit voucher (for receipts), imprest petty cash voucher (for petty payments under imprest system), journal vouchers (for adjustment entries) as well as cash payment voucher (for general cash payment). The URP shall also maintain cash & bank book and general ledger. Individual amounts from the receipt/payment vouchers or the monthly-summarized totals appearing in the bank book/ cash book shall be posted in the relevant accounts of General Ledger. Postings shall also be made in the appropriate accounts of general ledger for all debits/credits items of journal vouchers.

• Money Receipt: For receipts by the URP, pre-numbered printed Money Receipt (MR) (not computer generated Receipt) shall be issued.

• General Ledger: The General Ledger is the book of final entry for all the transactions of the URP and shall incorporate the control accounts of all subsidiary books. The General Ledger system for the Project is computerized.

• A complete trial balance shall be capable of being drawn-up from the General Ledger.

• Payroll: A payroll register shall be maintained incorporating therein relevant information. Other books necessary for the purposes are to be maintained. Double Entry System: Entries in the books of accounts shall be made on double entry system of accounting.

Subsidiary Ledgers: For efficiently processing information, the URP should adopt its accounting system to the type and quantity of information it needs. When there are only a few suppliers or advances, a separate account can be set up for each supplier and advance in the general ledger. However, when there are many suppliers or advances, a control account for accounts payable and a control account for advances account are established in the general ledger. Also, subsidiary ledgers for payables and advances etc. are added to the accounting system to show the balances for individual suppliers and advances.

83

Steps for book keeping:

Project staff should have good understanding of the regulations, provisions and conditions of Project Appraisal Document, Financing Agreement, Procurement Guidelines, Disbursement Handbook and Project Financial Management Manual to ensure that the project is implemented in line with the relevant regulations.

All transaction of project should be supported with original documentation (copy is not allowed) for bookkeeping and accounting purposes

Based on verified and reconciled original documents, accounting staff check and review accounting documents and record in accounting books following the standard procedur◌া

All transactions of project are accounted for in the right accounts, periodically, summarized and reported following the government and the World Bank’s regulations and requirements

 The accounting and bookkeeping arrangements:

The accounting documentation of the project shall be for all accounting items such as cash flows, inventories, fixed assets, labors and wages, and project implementing progress.

There should be procedures to control and enable the cross-checking of proofs of transactions, data, signatures and endorsement and other relevant documentে◌

The accounting system must ensure the reasonable routing of vouchers between the accounting units of PMU as well as between project accounting departments for the purpose of conveniently and timely recording into accounting books

The accounting system must maintain vouchers and other supporting documents and archive them at the end the fiscal year as requested by the current regulations

 8.2 Chart of Accounts and Code Structure 8.2.1 Introduction  

50. In order to capture financial data and record them under various classifications so that desired financial reports may be generated, appropriate account numbers are allocated in the General Ledger. 51. The various financial transactions recorded in the accounting forms are posted to the General Ledger at regular intervals and are thus captured under desired heads of accounts. The list of account heads under which financial transactions are recorded in the general Ledger is called the Chart of Accounts.

8.2.2 Accounting Code Structure

52. The Account Code structure has been specially designed to meet this project’s specific reporting requirement, viz.:

• Report by Project Component/Activity and also by Category of Expenses required for the

preparation of IFRs for submission to IDA for withdrawal of fund;

• “Expenditure Statement (summary)” required to prepare under RIBEC Account Code;

• Annual Project financial Statements required by the Foreign Aided Projects Audit Directorate (FAPAD);

• Monthly/quarterly/periodical reports as may be required by the Project Management

84

8.2.3 Account Code Allocation

53. The Chart of Accounts includes a ten digit Account Code (but this may change depending on the software finally developed and installed). The Chart of Accounts is shown in the Appendix.

8.2.4 Computerization of Financial Management System 54. Financial Management System of URP should be computerized and integrated with MIS Systems for efficient budget comparison, fund utilization analysis and other MIS reports. Transactions carried out at various levels of project activity will be processed through this computerized system. The system should have a provision of recording of financial information on daily basis thus enabling various financial information and reports to be generated accurately and promptly. An appropriate System Designer should be consulted for software development in due course. However, URP at present using the Tally Software Program for accounting purpose.

 

8.2.5 Payment Voucher  

55. Payment Vouchers must be numbered sequentially. If a payment is made by cheque, the cheque number and date, the amount of payment, the name and address of the payee make a payment, payment in words, and description of what the payment is for must be recorded. The payment voucher must be signed by the person preparing it, the person checking it, and by the person authorized to approve it. When payment is made, the payee must sign and date the payment voucher. All supporting and documents must be stamped ‘PAID’.

Filing and archiving of vouchers and accounting records:

To ensure the continuity in following up and treatment of all vouchers, each and every staff has the responsibility to file and archive accounting records in the current accounting period

In case of staff replacement, re-assignment or re-arrangement, the responsible staff has to hand over all vouchers, records within their responsibility in the witnesses of the Proper authority

At the end of a fiscal year and after the completion of the accounting works such as check,

reconciliation and preparation of financial statements, all vouchers, accounting records are arranged, classified, packed, sealed and stored in the accounting unit of Project

8.2.6 Supporting Document

56. Bills, cash memos and other supporting documents must support all payments. Payment for goods must also be supported by a purchase order; payment for service by a contract.

8.2.7 Retention of Document

57. The URP must retain payment voucher and all supporting documents for a period of four years after ending date of the Agreement. Vouchers may be audited at any time during this period. URP reserves the right to obtain copies of all vouchers if required.

85

8.3 Chas Book

8.3.1 Daily and weekly actions

58. Cash Books can be purchased from the shops. All receipts attached to Payment Vouchers must be Posted to the Cash Book and totaled daily. The date, particulars of payment, the cheque number, the payment voucher number, the amount, and the ledger folio number must be recorded. At the end of each day, the Bank and Cash balances should be checked against Cash in hand. At the end of each week the person authorized to approve expenditures should review and sign the cash Book, if it is correct. The Cash Book of URP has been computerized.

8.3.2 Monthly actions

59. The Cash Book must be totaled at the end of each month, and the balance of cash in hand and cash at bank should be verified by the person authorized to approve expenditures.

8.3.3 Bank charges

60. Debits or credits for bank charges, commissions, or interest shown on bank statements must be entered into the Cash Book so that Cash Book balances agree with Bank Statements.

8.4 Bank Reconciliation

61. Within seven days of the end of each month a Bank Statement must be obtained from the bank. Bank Statement must be reconciled with the Cash Book and a Bank Reconciliation statement should be prepared in case of any disagreement between Cash Book Balance and Bank Statement Balance.

 

8.5 General Ledgers

1. Uses of Funds Statement 2. Uses of Funds by Expenditure Type 3. Procurement Reports 4. Output Monitoring Report

8.6 Interim Unaudited Financial Reports (IUFRs): Quarterly Basis  

8.6.1 IUFRs as part of Progress Reporting  

62. The attached reports provide information on the progress of the project in terms of financial activity, key output measures, and the status of procurement below the Bank’s prior review thresholds. The IUFRs for the periods ending in June and December are incorporated into the larger six-monthly progress reports. A comprehensive report of project progress will be prepared prior to the mid-term reviews of the project.

 Comments on the IUFRs

63. {An analysis of the project’s overall progress areas to be provided. This analysis should include achievements and short-falls; reasons for shortfalls and actions planned to improve}.

86

Explanation of Largest Variances (see Uses of Funds Report)

64. A sample has been provided below:

“Equipment has been purchased on schedule, although at a slightly higher price than planned, since an additional district office has been added. MIS equipment purchases have been below expected cost. Expenditures on consultants' services are below plan because the program began later than planned, and because some consultants were not immediately available. In addition, it was decided that local office staff could handle some tasks that had previously been allocated to consultants. Some of these factors also reduced the amount of training required. However, training is expected to accelerate as more consultants come on board.”

 

8.6.2 Sources and Uses of Funds Statement For the quarter ending _________

In Bangladeshi Taka (BDT) 000’s

Current Quarter Year To Date Cumulative To Date

GOB IDA GOB IDA GOB IDA Opening Cash Balance. Project Bank account IDA Special account Opening Balance Total Add: Sources of Funds IDA Funds Government Funds Sources of Funds Total Less : Uses of Funds Goods, Works, Consultants and other Services

Uses Of Funds Total.

Closing Cash Balance Project Bank Account IDA Special Account

 

 

 

 

 

 

87

8.6.3 Uses of Funds by Project Activity For the quarter ending __________________________

In Bangladeshi Taka (BDT) 000’s

Quarter Cumulative PAD Project Activities Planned Actual Variance Planned Actual Variance Project

Life

TOTAL

90

8.6.4 Output Monitoring Report For the quarter ______________

Period Project to date Variance in # of beneficiaries Indicator Unit Actual Target Actual Target Total

Payment Average Payment Period To Date

1.

2.

3.

4.

5.

6.

7.

8.

9.

10

 

91

Appendix - 1

Bangladesh Urban Resilience Project (URP)

Bank Reconciliation Statement

For the Month of …………………….

Bank Account No

Branch_________________________ Nature of a/c

Amount

Taka

Balance as per bank statement at……………… xxxxxx

Add: Cheques deposited into the bank but not cleared within the month:

Date Cheque # Party/ source Amount

xxxx xxxxxx Xxxxx

xxxx xxxxxx Xxxxx xxxxx

Add: Bank charges debited by the bank but not accounted for by the project/Company:

Date Amount

xxxx xxxxx

92

xxxx xxxxx xxxxx

Less: Cheques issued by the project but not presented to bank within the month:

Date Chq No Payee Amount

xxxx xxxxxx xxxxx

xxxx xxxxxx xxxxx xxxxx

Balance per bank book as at …………………………………. xxxxx

Prepared by Checked by Approved by

93

 

Appendix - 2  

Bangladesh Urban Resilience Project (URP)

CHEQUE PAYMENT VOUCHER

1 Voucher No……………… Date: ……… Cheque No:……………. Date: ……..… A/C Code A/C Title Dr. Taka

Paid to ____________________________________________________________________

Against____________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Tk. ____________________

In words Taka____________________________________________________________

Prepared by_______________ Checked by______________ Approved by_____

___________________

Signature of Recipient

94

Appendix - 3

Bangladesh Urban Resilience Project (URP)

JOURNAL VOUCHER

JV.No

Date

Narration:

SL. No

Account Code Head of Accounts Dr.

Taka

Cr.

Taka

Total

Prepared by____________ Checked by_______________ Approved by________________

95

Appendix - 4

Bangladesh Urban Resilience Project (URP)

Requisition Form

(For Assets/Supplies/Stationery)

Request From:____________________________ Date: _________________

Department:________________ Purpose: ________________________________________________________________________

________________________________________________________________________

Sl No. Name of Article Quantity Remarks

Approved By: ______________ Checked by ______________ Requisitioned by:_________

 

 

 

 

 

96

Appendix – 5

BANK RECONCILIATION STATEMENT

Month _________________________________________

Account No. ______________________________________

Bank ________________________________________________

Address _________________________________________________

Balance as per Bank statement on: _________________ Taka ____________

Add Checks Deposited but not

Credited on the statement:

Less: Checks issued but not cashed: __________

__________

__________

__________

Add/Less others requiring reconciliation: __________

__________

__________

__________

Balance as per cashbook on: __________________ Balance __________

Prepared by: _________ Date: ________ Approved by: _____ Date: _______