The World Bank yesterday termed the delay in approving and implementing the donor-funded projects in Bangladesh a tragedy.

Ellen Goldstein, the WB country director in Bangladesh, said: "In some instances, development partners are waiting one to two years after the signing of a financing agreement with the government for an approved development project proposal allowing activities to begin and money to flow."

"This is a tragedy for the people of Bangladesh. Equally frustrating can be slow procurement processes, some of which raise red flags and must be cancelled or re-bid, adding to lengthy delays," she said.

Her comments came at a meeting of Local Consultancy Group at the Economic Relations Division in Dhaka at a time when donors' money continued to pour into the country, with outstanding commitments now standing at $13 billion.

"Aid commitments are at record highs. Project disbursements are running at the same pace as last year, and are no cause for immediate alarm," she said.

She also said project disbursements could accelerate significantly above trend if structural obstacles were addressed, particularly the project approval/revision process, public procurement and staffing continuity.

"While we have no cause for immediate alarm over aid disbursements, we should be working together to accelerate implementation, particularly given the size of outstanding aid commitments and subsequent decline in the disbursement ratio."

Goldstein said their joint analysis points to a few obstacles where immediate action is needed and possible.

"Perhaps the most binding constraint for many development partners is the cumbersome project approval and revision process, embodied in the Development Project and Technical Assistance Proformas (DPP/TPP)."

The WB's Bangladesh chief said, another source of concern is frequent turnover of project staff -- often within mere months of appointment.

"Let me hasten to add that changes in donor staff and lengthy donor procedures can also cause frustration for the government."

She said growth of credit to the private sector has slowed, which could dampen investment and growth in Bangladesh.

This situation is admittedly difficult, calling for strong fiscal discipline on subsidies and other public expenditure management going forward, even as the government seeks additional support from partners to relieve fiscal pressures.

"In addition, a strong focus is needed on the quality of public spending, in order to ensure that every taka is used to maximum effect and waste is minimised."

Goldstein said the government can build confidence among development partners by redoubling efforts to strengthen public financial management and promote transparency, accountability and good governance.

"Bangladesh's development partners are committed to Paris Declaration principles calling for greater country ownership and use of country systems to implement aid-funded activities.”

The Joint Cooperation Strategy signed by 18 development partners in Bangladesh underscores this commitment, she added.

At the same time, the WB official said partners require adequate fiduciary safeguards to ensure that aid resources are used for the purposes intended.

She said the development partners are focusing on absorption of aid flows, as this has been a source of concern for the government and its partners.

"Adequate absorption is indeed a prerequisite to achieving the goals of development interventions. But it is not enough to disburse the funds. We must ensure that funds support activities that produce desirable results for intended beneficiaries."

The Daily Star/Bangladesh/ 29th March 2012

From right, Noman Anwar, head of marketing and communications of HSBC Bangladesh; Andrew Tilke, chief executive officer; Mohammad Mahbub-ur-Rahman, head of commercial banking; and M Shohiduzzaman, head of trade finance, attend a press meet at Ruposhi Bangla Hotel in the capital yesterday where the Bank announced the third edition of its Export Excellence Awards for Bangladeshi exporters.

The Hongkong and Shanghai Banking Corporation (HSBC) Bangladesh yesterday launched its Export Excellence Awards for a third year to recognise five exporters for their outstanding performance in 2011.

“Exports not only keep our economy thriving, but also position the Brand Bangladesh across the world,” said Andrew Tilke, chief executive officer of HSBC Bangladesh. “As the world's leading international bank, HSBC is in a robust position to be a partner in this growth journey.”

The five award categories are: readymade garments and textiles exporters (Group A and Group B), EPZ enterprises, traditional and emerging sectors, and SMEs.

“Recognising exporters would play an important role in the promotion of exports and its diversification, and achieving excellence,” Tilke told the press at Ruposhi Bangla Hotel in Dhaka. “It is an initiative of the Bank to recognise the outstanding growth of Bangladesh exports.”

Mohammad Mahbub-ur-Rahman, head of commercial banking of HSBC Bangladesh, said the award is an attempt to dig up opportunities for the Bank to see how to facilitate the country's growing exports.

HSBC divided RMG and textiles exporters into two categories as these sectors account for a majority of the country's exports.

RMG exporters with annual export turnover worth $50 million or more are in Group A, and Group B covers those with less than $50 million in annual export turnover, HSBC said.

Companies in the export processing zones will be awarded under the EPZ enterprises category.

The non-RMG or textiles companies with annual export turnover worth $3 million or more will be awarded under the traditional and emerging sectors category.

The SME category is for the non-RMG or textiles companies with annual export turnover less than $3 million.

Local exporters can also participate in the programme by filling out a nomination form on the Bank's website.

The deadline for nomination submissions is April 30.

The Daily Star, Prothom Alo and Bangladesh Brand Forum are the strategic partners of the event.

M Shohiduzzaman, head of trade finance, and Talukdar Noman Anwar, head of marketing and communications of HSBC, also spoke.

Inam Ahmed, deputy editor of The Daily Star, and Shariful Islam, founder of Bangladesh Brand Forum, were also present.

The Daily Star/Bangladesh/ 29th March 2012

Prime Bank Limited launched its Mobile Banking Service "Easy Cash" recently at the Bank's Corporate Office premises. Deputy Managing Director of the Bank Ahmed Kamal Khan Chowdhury launched the Service as the chief guest. Deputy Managing Directors I B Chowdhury, Md. Golam Rabbani, Muhammad Yasin Ali and Kanti Kumar Saha, and Managing Director & CEO of the partner of the project SMG Infocom Ltd. Kamrul Islam were present.

Financial Express/Bangladesh/ 28th March 2012

Ali Reza Iftekhar, Managing Director & CEO, Eastern Bank Limited launching the "Student Banking" Tuesday at a press conference. M Muklesur Rahman, Deputy Managing Director, Towfiqul Alam Chowdhury, Head of NRB and Student Banking, Ziaul Karim, Head of Brand and Marketing, EBL were also present. (Story on page 24)

Financial Express/Bangladesh/ 28th March 2012

BRAC Bank employees pay homage to

martyrs

On the eve of the Independence Day, employees of BRAC Bank paid homage to martyrs of the liberation war. BRAC Bank employees gathered together, hoisted national flag and sang the National Anthem. They placed floral wreathe to makeshift national memorial (Smriti Shoudhu).

They also lighted up candles to pay respect to the martyrs and freedom fighters. Mr. Syed Mahbubur Rahman, Managing Director and CEO; Ms. Tahniyat Ahmed Karim, Head of Human Resources; BRAC Bank Limited, and other officials attended the program.

Mr. Syed Mahbubur Rahman, Managing Director and CEO of BRAC Bank said, "We are independent today because of the sacrifice of millions of people during the liberation war. We all at BRAC Bank got together here to remember and pay tribute to these valiant souls."

"We believe, the fight is still on - but for an economically independent, beautiful Bangladesh," he added.

Financial Express/Bangladesh/ 28th March 2012