Local Governance Support Project - 3

closed

The objectives of the Third Local Governance Support Project for Bangladesh are to institutionalize the Union Parishad (UP) fiscal transfer system, and introduce a fiscal transfer system for Pourashavas on a pilot basis. There are four components to the project, the first component being Institutionalization of UP fiscal transfers. This component will provide basic block grants and performance based grants to eligible UPs to carry out sub-projects and will support the institutionalization of the UP Fiscal Transfer. The second component is the audits and performance assessments, and management information systems. This component will support the institutionalization of UP audits and performance assessments (PAs), and operationalization of Management Information Systems (MIS), including through: strengthening the process of carrying out of UP’s annual financial audits and performance assessment systems, strengthening the readiness and preparation processes of annual financial statements, developing, reporting financial audits and appeal hearing guidelines, and enhancing the performance assessments conducted by auditors. The third component is the expanded block grants to pilot Pourashavas. Expanded block grants (EBG) will be provided to qualified Pourashavas to carry out sub-projects on a pilot basis. EBGs will be provided to 16 Pourashavas in eight divisions, with population less than 60,000, on a pilot basis. Finally, the fourth component is the capacity development and project implementation support. This component will support capacity building, project management and implementation support through: (i) capacity building activities for UP and Pourashava Officials, including Deputy Directors of Local Government (DDLGs) and District Facilitators (DFs); (ii) training on public financial management; and (iii) technical assistance to the Project Management Unit (PMU) to carry out project management and implementation support activities.