FOR OFFICIAL USE - World Bankdocuments.worldbank.org/curated/en/485601468003560874/pdf/417950PAD0P... · Project development objective Re$ PAD ILC., Technical Annex 3 The objective

Document o f The World Bank

FOR OFFICIAL USE ONLY

Report No: 41795-BD

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED CREDIT

IN THE AMOUNT OF SDR 21.9 MILLION (US$3 5 MILLION EQUIVALENT)

TO THE

THE PEOPLE'S REPUBLIC OF BANGLADESH

FOR A

DISABILITY AND CHILDREN-AT-RISK PROJECT

June 3,2008

This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. I t s contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS (Exchange Rate Effective February 29,2008)

CurrencyUnit = Taka Taka = US$1

1.60079US$ = SDR 1

BSAF BIDS CAS CBR DAF DPOs DSS F M GDP GOB HI HIES I A ICB IDA ILO JPUF M&E MDG MOLG MOSW NFDDP NFOWD NGOs PCAR PKSF PPA PPR PRSP PWD SBD SDF SILS UCEP UN UNESCAP UNICEF

FISCAL YEAR July 1 - June 30

ABBREVIATIONS AND ACRONYMS

Bangladesh Shishu Adhikar Forum Bangladesh Institute o f Development Studies Country Assistance Strategy Community-Based Rehabilitation Director of Administration and Finance Disable People’s Organizations Department of Social Services Financial Management Gross Domestic Product Government o f Bangladesh Handicap International Household Income and Expenditure Survey Implementing Agency International Competitive Bidding International Development Association International Labor Organization Jatiyo Protibondhi Unnayan Foundation Monitoring and Evaluation Millennium Development Goals Ministry o f Local Government Ministry of Social Welfare National Foundation for the Development o f Disabled Persons National Federation o f Organizations Working for the Disabled Non-governmental organizations Protection o f Children-at-Risk Palli Karma Sahayak Foundation Public Procurement Act Public Procurement Rules Poverty Reduction Strategy Paper People with Disabilities Standard Bidding Documents Social Development Fund Specific Investment Loans Underprivileged Children’s Educational Program United Nations UN Economic and Social Commission for Asia and the Pacific UN International Children’s Education Fund

Country Director: Xian Zhu Sector Director: Michal Rutkowski Sector Manager: Mansoora Rashid

FOR OFFICIAL USE ONLY

BANGLADESH

BANGLADESH DISABILITY AND CHILDREN AT RISK

PROJECT APPRAISAL DOCUMENT

SOUTH ASIA REGION

HUMAN DEVELOPMENT UNIT

Date: June 3,2008 Country Director: Xian Zhu Sector Manager/Director: Mansoora Rashid

Project ID: P106332 Lending Instrument: Specific Investment Loan

Team Leader: Qaiser M. Khan Sectors: Other social services (100%) Themes: Other social protection and risk management (P);Social risk mitigation (S) Environmental screening category: N o t Required

[ ] Loan [XI Credit [ 3 Grant [ ] Guarantee [ ] Other:

For Loans/Credits/Others: Total Bank financing (US$m.): 35.00 Proposed terms: The credit would be an IDA credit repayable in 40 years, including a grace years.

period o f

For Loans/Credits/Others: Total Bank financing (US$m.): 35.00 Proposed terms: The credit would be an IDA credit repayable in 40 years, including a grace period o f 10 years.

Total 0.00

35.00 Total: 28.00 7.00 35.00

Borrower: Economic Relations Division, Ministry o f Finance Government o f Bangladesh Dhaka, Bangladesh Fax: 88028813088

Responsible Agency: Ministry o f Social Welfare Department o f Social Services Government o f Bangladesh Dhaka, Bangladesh Jatiyo Protibhondi Unnayan Foundation CRP -Mirpur, Plot N5, Block-A Section-14, Mirpur Dhaka-1206, Bangladesh

This document has a restricted distribution and may be used by recipients only in the performance o f their off icial duties. I t s contents may not be otherwise disclosed without Wor ld Bank authorization.

[ ]Yes [XINO

[ ]Yes [XINO [ ]Yes [ IN0 [ ]Yes [ IN0

Does the project depart from the CAS in content or other significant respects? Re$ PAD I. C. Does the project require any exceptions f rom Bank policies? Re$ PAD I K G. Have these been approved by Bank management? I s approval for any policy exception sought from the Board?

[ ]Yes [X ] N o

[XIYes [ ] N o

Does the project include any critical risks rated “substantial” or “high”? Re$ PAD III.E. Does the project meet the Regional criteria for readiness for implementation? Re$ PAD I K G.

Project development objective Re$ PAD ILC., Technical Annex 3 The objective o f the proposed Project i s to expand the coverage, use, and quality o f social care services for persons with disabilities and vulnerable children as a means o f promoting equity and social inclusion. Project description [one-sentence summaly of each component] Re$ PAD ILD., Technical Annex 4 COMPONENT A : Expanding Disability Services, Improving Awareness, and Building Capacity: This component would expand social and rehabilitation services for the disabled and build the capacity o f NGOs and government agencies that support the disabled and their families, and/or that work for greater disability awareness, inclusion, and empowerment. COMPONENT B: Establishing a network o f Child Protection Services: The component would adopt a two-pronged approach: (i) it would provide financing and technical assistance for scaling up the services NGOs for street children and other vulnerable children with a focus on improving relevance and quality o f the services; and (ii) gradually shift the social care paradigm o f M O S W both at the policy and programmatic level to adopt a proactive and preventive approach with a stronger focus on reintegration and deinstitutionalization. COMPONENT C: Institutional strengthening the knowledge and sk i l ls o f the managerial and technical officials in the Ministry o f Social Welfare to provide relevant and effective services for vulnerable groups, with a special focus on disability and child protection. Which safeguard policies are triggered, if any? Re$ PAD I K F . , TechnicalAnnex 10 Significant, non-standard conditions, if any, for: Re$ PAD III. F. Board presentation: July 1, 2008. Loadcredit effectiveness: November 30,2008. Covenants applicable to project implementation: Standard.

BANGLADESH Disability and Children-at-risk Project

CONTENTS

Page

STRATEGIC CONTEXT AND RATIONALE .................................................................................................. 1

Country and sector issues .................................................................................................... 1

Rationale for Bank involvement ......................................................................................... 3 Higher level objectives to which the project contributes .................................................... 3

PROJECT DESCRIPTION ................................................................................................................................. 4

I .

A . B . C .

I1 . A . B . C . D . E .

I11 . A . B . C . D . E . F .

IV . A . B . C . D . E . F .

Lending instrument ............................................................................................................. 4

Project development objective and key indicators .............................................................. 4

Project components ............................................................................................................. 5

Alternatives considered and reasons for rejection .............................................................. 9

Partnership arrangements .................................................................................................... 9 Institutional and implementation arrangements ................................................................ 10 Monitoring and evaluation o f outcomes/results ................................................................ 10

Critical risks and possible controversial aspects ............................................................... 12 Loadcredit conditions and covenants ............................................................................... 14

Economic and financial analyses ...................................................................................... 14

Fiduciary ........................................................................................................................... 15 Social ................................................................................................................................. 16

Environment. ..................................................................................................................... 16

Safeguard policies ............................................................................................................. 16

Policy Exceptions and Readiness ...................................................................................... 17

Lessons learned and reflected in the project design ............................................................ 8

IMPLEMENTATION .................................................................................................................................... 9

. . Sustainabhty ..................................................................................................................... 11

APPRAISAL SUMMARY ........................................................................................................................... 14

List o f Annexes

Annex 1 : Country and Sector Background ................................................................................... 18 Annex 2: Major Related Projects Financed by the Bank and/or Other Agencies ......................... 23

Annex 3: Results Framework and Monitoring .............................................................................. 24 Annex 4: Detailed Project Description ......................................................................................... 33 Annex 5: Project Costs ................................................................................................................. 42 Annex 6: Implementation Arrangements ...................................................................................... 44 Annex 7: Financial Management and Disbursement Arrangements ............................................ 48 Annex 8: Procurement Arrangements ........................................................................................... 59 Annex 9: Economic and Financial Analysis ................................................................................. 70 Annex 10: Safeguard Policy Issues ............................................................................................... 79

Annex 12: Documents in the Project File ..................................................................................... 81 Annex 13: Statement o f Loans and Credits .................................................................................. 82

Annex 15: Maps ............................................................................................................................ 86

Annex 1 1 : Project Preparation and Supervision ........................................................................... 80

Annex 14: Country at a Glance ..................................................................................................... 84

I. STRATEGIC CONTEXT AND RATIONALE

A. Country and sector issues

1. decades, but poverty and vulnerability s t i l l afflict large segments o f the population. During the 1990s the economy grew annually at almost five percent - twice the average rate o f other low income countries - and this impressive performance continued through 2006 at an accelerating pace. National poverty has declined at a rate o f roughly one percent per annum for the last 15 years. The most recent Household Income and Expenditure Survey (HIES) data o f 2005 suggest a poverty rate o f 40 percent (upper poverty line) o f the population, or about 56 million people, o f whom two-thirds live in extreme poverty. The Government o f Bangladesh (GOB) established programs, many with support from IDA, targeting among others the rural poor, elderly, women, children, etc., through provision o f safety nets, microfinance and other services. However, government recognizes that some groups remain particularly marginalized with few targeted interventions. The GOB i s committed to developing financially sustainable programs to reach these marginalized groups.

Bangladesh has made substantial progress in reducing income poverty over the last two

2. Prominent among these marginalized groups are: (i) people with disabilities (PWD); and (ii) particularly vulnerable children (street children, children working in hazardous occupations, orphans, children/adolescents in conflict with the law, etc.), especially in rapidly growing urban slums. Lack o f access to an adequate education, health services, and safety nets not only results in disabled people being excluded from social and economic participation, moreover often leads to their family members also having to forgo paid employment to stay at home to provide care. Global evidence suggests that these factors translate into forgone GDP o f about 5-7 percent.’ Gertler and Gruber (2002)2 estimate, using Indonesian data, those individuals/families with illnesses which severely limit physical function are able to smooth less than 30 percent o f the income loss from such illnesses. For vulnerable children, empirical evidence from the recently completed MDG Report on Bangladesh suggests that the cost o f reversing their lack o f human development opportunities in later years i s far greater than the cost o f investing in their human development during childhood3 (see Annex 1 for more details on the profiles o f disabled people and children in Bangladesh).

3. In order to attain the MDGs and reduce poverty, it would be imperative to expand and improve the quality o f targeted social care services and economic opportunities for people with disabilities and vulnerable children in Bangladesh.

Government Strategy

4. The GOB i s signatory to most o f the major International Declarations and Conventions on disability including: (a) the UNESCAP Decade o f Disabled Persons, (b) the Millennium Decade o f Disabled Persons, (c) the Biwako Millennium Framework, and (d), most recently, the UN Convention on the Rights o f Persons with Disabilities (CRPD). I t promulgated a National Policy for Disability in 2005 to advance the implementation o f these declarations, and has developed a National Action Plan which includes the following six elements: (i) to improve data collection to identify the magnitude o f the issue; (ii) support the development o f prioritized district level actions and reform the existing National Foundation for the Development o f Disabled People (NFDDP) so that it could

Metts, Robert. Disability Issues, Trends and Recommendations for the World Bank, February 2000 For details see Paul Gertler and J. Gruber (2002) “Insuring Consumption against Illness”, American Economic Review. For example, school dropouts in Guyana forgo hundreds o f thousand o f dollars in net earnings over their lifetimes, costing the state thousands o f dollars in foregone income.

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oversee and fol low up the implementation o f core aspects o f the National Action Plan; (iii) in education, create awareness and sensitize teachers, management committees, parents and peers through Disabled People’s Organizations (DPOs) and non-government organizations (NGOs) to treat disabled children with dignity; (iv) in health to strengthen early detection and intervention, improve nutrition programs for pregnant women, train medical and social workers on disability issues, and increase provision o f assistive devices; (v) ski l ls development and training for disabled people, and monitor the compliance with the 10 percent quota system for the employment o f disabled people (and orphans) in the public sector, and (vi) increase access to transport, education and public facilities to enhance mobil ity.

5. Convention on the Rights o f the Child (UNCRC) and formulated a National Plan o f Action for Children (2005-2010) (see Annex 6 for more detail on policy and legal framework for children at risk). The Plan focuses on four strategic objectives: (i) creating opportunities to help children realize their full potential (access to health, nutrition and education, water and sanitation, etc.), (ii) serving the best interests o f children in national, social, family and personal situations (empowerment o f children), (iii) ensuring safety and security at home and in the public space (protection against abuse, exploitation and violence), and (iv) establishing and protecting children’s rights (social inclusion, decent work and livelihood).

Likewise, with regards to vulnerable children and youth, the GOB has also signed the UN

6. been lagging. This has been confirmed by an Institutional Assessment o f social care services for vulnerable groups by the Bank, which suggests poor implementation o f existing policies and ineffective enforcement o f existing legislation. In light o f this, the GOB has requested assistance from IDA to strengthen capacity and accelerate implementation o f i t s National Plans for disability and children.

Government recognizes that implementation o f these critical National Plans o f Action has

Institutional Capacity

7. The Ministry o f Social Welfare (MOSW) i s in charge o f policies but the institutional capacity o f the Ministry deters it from meeting international obligations and delivering the agenda as stipulated in the National Plans o f Action. The Ministry’s management capacity, controls and accountability, financial resources, human resources, and thus service delivery competence are limited. Two key departments attached to and within the MOSW are tasked with issues regarding disability and children’s services, respectively, the National Foundation for the Development o f Disabled Persons (NFDDP) and the Department o f Social Services (DSS) (see Annex 6 for more information on the institutional capacity o f the MOSW and DSS).

8. The NFDDP was established under the Societies Ac t as a mechanism to finance private sector and N G O groups to provide services and build awareness o f disability issues. I t has been largely under-funded and under-staffed, and has not had the autonomy required to reach i t s objectives. The DSS, tasked with delivering services for vulnerable children and other vulnerable groups, has about 1 1,000 staff in a wide network at the district and UP levels. However, most employees are class I11 and IV level staff with low qualifications, l i t t le motivation, and insufficient monitoring and links to the central office and the N G O community.

9. Plan o f Action for improving support for people with disabilities, government approved a major restructuring o f the NFDDP to make it more autonomous, improve i t s capacity and raise i t s profile to the status o f other similar organizations. The revitalized organization changed i t s name to the Jatiyo

As a condition o f project appraisal, and as part o f the broader vision o f government’s own

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Protibondhi Unnayan Foundation (JPUF) whose goal i s to increase direct funding to support disability services, build awareness, and promote accessibility and social inclu~ion.~ Government also recognizes the need to strengthen the MOSW’s Department of Social Services (DSS) and engage NGOs/DPOs more broadly to improve coverage and outreach of disability and children’s services.

10. Bangladesh has a large NGO community that works to address the needs of vulnerable children and the disabled, but there remains an unacceptably large gap between the basic needs of vulnerable groups and the supply of support and services. For example, the Bangladesh Shishu Adhikar Forum (BSAF), a child rights network of NGOs, comprises more than 230 NGOs. Many NGOs focus on advocacy, but their funding and capacity are too limited to provide comprehensive services. In the case of people with disabilities, the NFDDP has been providing very limited government funding for NGOs working on disability. DPOs and many NGOs led by the National Federation o f Organizations Working for the Disabled (NFOWD) have exerted great effort to promote accessibility and inclusion, and provide services, yet access to employment, training, aids and services i s extremely limited, especially in rural areas. Thus, much investment i s needed to reach a level where public and private organizations can work together to provide basic and much needed services with a minimally acceptable level of coverage and quality’ - or to mainstream people with disabilities and children-at-risk into society and the workforce.

B. Rationale for Bank involvement

1 1. vulnerable children, people with disabilities and their families by fostering inclusion and strengthening the country’s social services and network, in strong partnership with NGOs. The proposed operation builds on an existing reform momentum across the country and i s envisaged by the Bank’s Corporate Strategy as well as South Asia Regional and Country Assistance Strategies. The Bank and the South Asia Region’s focus on Disability, and Children and Youth, as well as the recent World Development Report on The Next Generation have played an important catalyst role in building consensus and support for an increased focus on these particularly vulnerable groups among policy makers. Moreover, the Bank’s strong poverty and multi-sectoral experience, and poverty- targeted country portfolio, provide both a strategic and technical edge to address the needs of these poor groups in a sustainable manner. The Bank has supported the successful Palli Karma Sahayak Foundation (PKSF) and Social Development Fund (SDF) for many years, providing a model o f good governance and partnerships among the government, NGO/DPOs and civil society. Recognizing i ts expertise and experience, the government has requested IDA financing to support the proposed operation.

The proposed operation would support the government to improve the situation for

C. Higher level objectives to which the project contributes

12. The project directly supports three of the six elements o f the National Plan o f Action for disability, while other World Bank Group and donor projects support the remaining three pillars. The project also supports three of the four elements in the National Plan of Action for children, while the fourth i s supported by other World Bank and donor projects. Both the Plans are part of the

Towards a Barrier-free Society, Asian and Pacific Decade o f Disabled Person (2003-2012), Mid-term Review o f Activities o f 4

the BIWAKO Millennium Framework Actions in Bangladesh by NFOWD, Handicap International and Ministry o f Social Welfare, Government o f Bangladesh, 2007.

This includes the need to establish criteria for monitoring the quality of work in which NGOs engage, which i s addressed through the project in these two areas.

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Poverty Reduction Strategy Paper (PRSP) and the project i s in line with the Country Assistance Strategy (CAS) objectives o f supporting the government’s poverty reduction strategy. The project specifically falls under the second pil lar o f the CAS, which looks to spread the benefits o f economic growth to all, especially those who are normally excluded.

13. The proposed operation i s part o f a broader government reform program that focuses on overall social protection reform and comprises other interventions, including a proposed National Social Protection Project and a social fund/community development program. The Wor ld Bank i s providing support to the government in al l areas o f reform through a combination o f other Specific Investment Loans (Social Investment Program 11, National Social Protection Project) and economic and sector work (poverty, MDGs, gender). In particular, the proposed operation strategically links well with the proposed National Social Protection Project, which focuses on providing direct support through cash transfers, while this operation focuses on providing services, awareness building, improving government’s knowledge base for policy development and institutional development.

11. PROJECT DESCRIPTION

A. Lending instrument

14. government’s reform efforts, which comprise institutional development, restructuring the JPUF (now completed), expanding coverage, promoting the quality and relevance o f services, and mobilizing national awareness to build support for implementation inclusive policies and practices at all levels. The project interventions are considered l ikely to be effective in addressing the current institutional, access and relevance issues.

A specific investment loan (SIL) i s proposed as the most suitable instrument to support

B. Project development objective and key indicators

15. coverage, use, and quality o f social care services6 for persons with disabilities and children at risk’ as a means o f promoting equity and social inclusion.8

Consistent with government’s Plans, the objective o f the proposed project i s to expand the

16. Performance o f the project will be measured by the percentage increase in: (i) the disabled population covered by JPUF using as baseline services provided by the NFDDP during the calendar year 2007; (ii) people with disabilities working either in the workforce or through self-employment;

In particular, Bank support for the project would mclude: (i) increasing the coverage andquality o f disability services, hilding awareness, and increasing capacity through strengthening o f the NFDDP/JPUF, improving the knowledge base and monitoring o f disability and building capacity for policy development in Bangladesh; (ii) strengthening integrated social work and care services for children a! risk below 18 years of age, particularly street children, primarily in urban and metropolitan area, and (iii) building the capacity o f the MOSW for devebping, implementing and monitoring policies and programs consistent with i ts mandate through promoting public-private partnerships. 7 Street children are defmed here as “Children below the age of 18 years whoare living, working, playing and sleeping on the street and are deprived ofbasic rights (ARISE report: A Review o f Existing Services relatingto street children, December 1999)’’ Minimum age of the street children included in the project i s 6 years. Street children can be divided into four sub-categories: (i) children up to 18 years of age who work and live on the street day and night without their family; (ii) children up to 18 years o f age who work and live on the street with their family; (iii) children up to 18 years of age who work and live on the street and retum to other family; and (iv) children up to 18 years o f age who work and live on the street md retum to their family.

Social care and rehabilitation services are defined as services for vulnerable groups, other than income transfers, that address a wide range of human development needs, including early child development, detection, prevention, physical and social rehabilitation, foster child care, assisted living, career development and equalizing opportunities for the disabled, services for vulnerable childreq etc. Promoting inclusion would be through awareness campaigns, policy formulation and implementation, networking, community mobilization and empowerment, I t would seek to eliminate physical, social, cultural and environmental barriers, which prevent the target groups from participating in society.

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and (iii) school attendance among participating children using as baseline the PCAR project experience during calendar year 2007. Performance will be measured against the baseline to be determined the first year o f effectiveness.

C. Project components

17. approximate cost o f US$35 million over a period of five years.

The proposed project i s expected to include the following three components for an

18. COMPONENT 1: Expanding Disability Services, Improving Awareness, and Building Capacity (US$22 million). This component would expand social and rehabilitation services for people with disabilitiesg and build the capacity of N G O ~ D P O S ' ~ and government agencies, which support disabled people and their families, and/or that work for greater disability awareness, inclusion, and empowerment. The component would support the restructuring and scaling up of the JPUF to channel grants to DPOs and disability NGOs. The component would be implemented by the JPUF and would comprise two sub-components:

+ Sub-component l(a): Restructuring and capacity building o f the JPUF: This sub- component would reform and strengthen the JPUF to become a center of excellence for contracting disability services, promotiordawareness building, research, monitoring and evaluation, and establishing good practices. The vision i s for the JPUF to reform into a strong and independent apex body which would operate with substantial autonomy under the management o f a nationally recognized leader. Using transparent criteria and accountability mechanisms, the JPUF would select and finance sub-projects in accordance with an agreed overall strategy and annual plans. This restructuring would seek to emulate as closely as possible the management structure and operational processes adopted by the SDF and the PKSF. Activities would commence by restructuring and revitalizing the Foundation, recruiting new management o f recognized integrity, bringing in additional staff with recognized technical and operational competence in the domain o f disability, setting priorities for funding, and building competencies in disability research, M&E' and awareness building. The Foundation would adopt a non-government salary scale similar to the SDFPKSF to help attract and retain new talent. The beneficiaries of this sub-component would be the (i) NGODPOs and disability activists that would benefit from funding and expertise from the JPUF, (ii) policy makers who would obtain necessary information for policy formulation and monitoring progress; and (iii) civil society organizations and individuals who would benefit from knowledge and understanding o f disability issues, as well as feedback received on the quality of their work. The project would support development of a long-term approach to sustain services for the disabled. The ultimate beneficiaries of this sub-component will be people with disabilities and their families.

+ Sub-component l(b): Provision of disability services through NGO/DPOs. This sub- component would provide financing for services offered by NGODPOs with a disability focus such as community-based rehabilitation (CBR), early detection and intervention, prevention, counseling, communication and awareness, empowerment, education, sk i l l s development,

Disability includes autism. Unless otherwise noted, the term Non-governmental Organization (NGO) i s here defmed to include community

based organizations, disabled persons organizations, and international and national NGOs. 'I M&E will include monitoring o f sub-grant activities as well as working with the MOSW on monitoring overall system status and outcomes through conducting household surveys, developing MIS, etc. The role and capacity of the government to do this wi l l be addressed in Component 3.

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provision o f assistive devices, and mainstreaming. The funding o f NGODPOs would be through sub-grants, awarded based on clear and transparent criteria outlined in the JPUF’s Operations Manual which may be reviewed and updated from time to time. Windows for financing will remain flexible and be determined by the Board o f the JPUF, but could include the following:

Area-basedperformance contracting: Larger annual funding for NGOPartner Organizations to cover an agreed geographical area with agreed services o f specific quality such as early detection and treatment o f children with disabilities and developmental delays, CBR or skills training. Award o f initial contracts under this window would be subject to rigorous screening o f NGO/DPOs against set eligibility criteria which emphasize good performance. Renewal o f contracts would be subject to the NGOs meeting pre-identified targets and standards as validated by third party reviews.

Training and support to partner organizations: Some NGO/DPOs, academic institutions, foundations or independent contractors may have specific expertise and skills in disability which are required but not widely available (for example, production or distribution o f assistive devices or early detection o f impairments in children). In such cases, the JPUF may opt to contract the expertise to train, support and monitor other Partner Organizations. Likewise, smaller DPOs are frequently in need o f strengthening their capacity to manage and monitor the services they provide and raise funds from donors and government agencies. There will be a window for training and capacity building o f such DPOs.

Innovation grants: Smaller one-off grants to introduce or pilot new interventions, assistive technologies, specialized equipment, develop curricula or learning materials for disabled people, communication and awareness campaigns, etc. Award o f contracts under this window would be based on the innovativeness and likelihood o f sustainability o f the proposal. Special consideration would be given to Self-help Groups and DPOs.

Promotion of disability issues: Even though the existing policy framework i s supportive o f disability issues, there i s a general lack o f understanding o f these issues in government and society. The JPUF could contract professional agencies to promote the abilities and rights o f people with disabilities, shifting public opinion away from a charity model o f engagement.

The priorities for funding, given that covering the wide range o f activities cited above i s not 19. possible within project resources, would be defined in annual working plans formulated by the Board o f the JPUF based on broad consultation, relevant policy documents and international agreements. The target group for this sub-component would be people with disabilities and their families across Bangladesh.

20. COMPONENT 2: Strengthening and Expanding the Network o f Services for Children-at- Risk (US$9.5 million). The objective o f this component i s to improve access to, and the quality and relevance o f services for children-at-risk in selected cities o f Bangladesh. To achieve this objective, the component would align the legal and policy framework with the UNCRC, strengthen the capacity o f the DSS to design and oversee programs for child protection, and implement pilot interventions to inform the child protection policy framework. Specifically, the project would: (i) consistent with CRC guidelines, improve the capacity o f relevant service providers to ensure quality, efficiency and effectiveness o f services for children-at-risk; (ii) develop and pilot alternative approaches to institutional care for orphans, and (iii) improve and expand services for street children with a focus on strengthening a referral system, case management and their reintegration into their families/communities. The component would be managed by a project implementation unit under the Department o f Social Services (DSS) that i s also implementing the UNICEF-financed “Protection

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o f Children-at-Risk (PCAR)” Project. The PCAR Unit would subcontract NGOs to deliver services to children in accordance with standards o f care developed for these services.

Sub-component 2(a): Support for institutional and capacity building o f DSS staff and service providers. In order to ensure adequate quality, effectiveness and efficiency o f service delivery, this sub-component would provide training and capacity building tailored to enhance the quality o f services for children-at-risk. It would: (i) develop and adopt minimum standards o f care o f relevant services for street children to be adhered to by a l l partner implementing agencies; (ii) provide training in compliance with these standards and monitoring; (iii) develop a “case management” tool for effective individual care and rehabilitation planning; (iv) provide training in case management and referral coordination; (v) enhance skil ls in specialized areas (mentoring, volunteerism, social work, care, counseling, etc.) for developing and managing the rehabilitation and integration cycle; and (vi) provide training in program management, monitoring, reporting, and networking and coordination with other service providers,.

Sub-component 2(b): Improving and expanding services for street children. This sub- component would support the expansion o f PCAR from six to eleven locations.’2 The PCAR project i s based on a four-step model to rehabilitate and integrate street children into mainstream society and includes: (i) outreach activities/open air schools, (ii) daytime drop-in centers, (iii) night shelters/homes, and (iv) economic and social activities that promote reintegration with families and communities. Services contracted under the project would be screened to ensure compliance with service standards as well as the UN Convention on the Rights o f Children. Building on PCAR’s existing model, the project would: (i) expand the services in geographical terms through contracting o f NGOs, broadening the scope o f services for street children to strengthen the case management13 and referral systems, (ii) establish a monitoring and evaluation system as an integral part o f service delivery, both at the management and service provider levels; and (iii) set up a Management Information System (MIS) for the project unit to track project progress (see Annex 4 for details).

+ Sub-component 2(c): Support the DSS to develop and pilot alternative approaches to institutional care for orphans in line with the UNCRC. This sub-component would help the DSS design alternative models (e.g., foster care) for taking care o f children without parents, some o f whom are now in orphanages, and others who do not have a home at all. Based on the model developed, guidelines would be prepared for operationalizing and piloting initiatives to test and improve the model over time. NGOs would be contracted as service providers to pi lot the new interventions and service delivery models. Award o f contracts under this sub-component would be based on the “child-centeredness” and sustainability o f the proposals.

Sub-component 2(d): Project management. This sub-component would support day-to-day management and operational costs o f the project for effective project implementation, ensuring adherence to Bank fiduciary requirements, particularly with respect to procurement and financial management.

Six divisional cities-Dhaka, Chittagong, Rajshahi, Khulna, Barisal, Sylhet, adding district towns Narayangong, Mymemsingh, Comilla, Rangpur, Jessore. l3 The case management system being proposed here i s to make sure that every child who enters the system i s properly monitored and support i s provided consistent with their needs. Given the early stages o f these services - at a pilot stage - the basic approach wil l need to refined and developed during the course o f the project based on experience gathered and consistent with UNCRC guidelines.

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21. (i) for beneficiaries, an increase in school attendance among participating children; and (ii) institutionally, shifting MOSW-DSS’s current management o f services to contracting service providers, resulting in gradually adopting a preventive and community-based approach for service development and delivery.

Activities under the Children-at-Risk component are expected to have the following impact:

22. Department of Social Services (US$3 million). The objective o f this component i s to support the MOSW and the DSS to gradually shift from being the managers o f institutions and services to a p r ~ a c t i v e ’ ~ and preventive social service approach. To this end, the MOSW, in collaboration with DSS, has laid out the strategic directions for the next five years in a Policy Letter. The project would support four selected key strategic areas: (a) strengthen MOSW’s capacity for policy formulation and revision o f the associated legal framework for persons with disabilities, chi ld protection and other socially disadvantaged populations to bring local laws and regulations in conformity with the UN conventions on Disability and Child Rights; (b) support the institutional development o f the DSS by streamlining the organizational structure and procedures for enhancing outreach and impact o f i t s many programs; (c) provide training and capacity building to enhance the ability o f the DSS personnel and other service providers for proactive social services to i t s target beneficiaries, including through contracting NGOs; and (d) strengthen program planning, implementation, monitoring and evaluation capacity o f both the M O S W and DSS including the development o f a long-term approach to sustain these service^.'^ For the MOSW, this would include monitoring the status o f target groups and the impact o f services so as to improve policy formulation and implementation. For the DSS, this involves improved M&E o f i t s services and programs, as well as specific assessment o f service provision/providers through establishing an MIS. Technical assistance, training, provision o f required hardware and software, and other capacity building measures wil l be financed.

COMPONENT 3: Institutional strengthening of the Ministry of Social Welfare and

D. Lessons learned and reflected in the project design

23. achieved by similar institutions in Bangladesh. The NFDDP, now JPUF, has not been accorded the financing, autonomy or necessary human resources required to live up to i t s promise and the expectation o f people with disabilities. Until the recent restructuring, the Secretary M O S W was officially the chairperson as an addition to hidher many other responsibilities. The key managerial positions in NFDDP were filled by government officials on deputation whose career aspirations may or not involve working on disability - this i s no longer possible since the restructuring. In the worst cases, some officials were assigned to NFDDP based o n their lack o f success elsewhere as a measure to prevent harm to other important government institutions. As a result, even competent officials posted at the Foundation have considered this a punishment and were unmotivated. B y contrast both PKSF and SDF had independent boards headed by well-known public figures with competent, fully dedicated staff-members. At the same time PKSF and SDF were properly funded, and operated in highly transparent environments with regular independent external audits.

The experience o f the NFDDP since i t s creation in 1999 contrasts sharply with the success

l4 The concept o f the ‘proactive’ approach i s to address situations that lead to vulnerabilities before they emerge rather than the government providing an institutional service response after they occur (e.g., identifying a family -,child-at-risk due to extreme poverty, violence, etc., before the children are forced to leave the home to work and live on the streets).

I s The capacity building component wil l take long-term approach to improving general social services as well as childcare services beyond the implementation support-related training described in Component 2.

8

24. independent organization along the lines o f PKSF and SDF; (b) establish transparency and accountability in i t s operations; and (c) develop professional and transparent financial management and procurement systems. The government agreed that these were necessary for proper functioning o f NFDDP: it was restructured in December 2007 and renamed the JPUF. A prominent citizen was selected Chairman; the Managing Director and other key staff have been recruited in the open market based on the merit o f their qualifications.

A key prior condition o f IDA support was that the NFDDP: (a) be restructured to be an

25. other programs delivering social services were assessed. Institutionally, the following lessons were considered during project development: (i) keep institutional arrangements and reporting mechanisms simple, yet instill accountability measures at each level; (ii) prepare implementation plans with consideration o f the time requirements for government’s internal processes and procedures; (iii) select only the most relevant, realistic, measurable and cost-effective indicators to monitor and evaluate project performance; and (iv) ensure implementation readiness at project effectiveness by training project entities on Bank fiduciary guidelines prior to appraisal. Technically, the following lessons were considered: (i) minimize the number o f formal implementing partners while providing space for community participation and regular stakeholder consultations; (ii) simplify service delivery mechanisms with least number o f bureaucratic steps; (iii) integrate monitoring and evaluation mechanisms as part o f project design; (iv) focus financing on sup-projects which will lead to achieving desired development outcomes and minimize specific investments in goods and works.

Wi th regard to children-at-risk, the lessons o f the ongoing UN-supported PCAR project and

E. Alternatives considered and reasons for rejection

26. be to support existing government institutions for the disabled and children-at-risk. This was considered and rejected for the fol lowing reasons:

An alternative to shifting the paradigm o f service delivery to N G O D P O contracting would

The existing services generally fol low a globally discredited institution-based approach which served to isolate the disabled and children-at-risk and not to mainstream them into society.

They are staffed by unqualified people with l i t t le understanding o f the needs o f the disabled and children-at-risk, using antiquated forms o f treatment including liberal use o f corporal punishment.

111. IMPLEMENTATION

A. Partnership arrangements

27. National Forum for Organizations Working with the Disabled (NFOWD), the officially recognized umbrella, which establishes guidelines and standards for DPO registration with government. The preparation team also met with DPOs, which are not members o f the NFOWD, and ensured their participation in stakeholder consultations and inclusion on the Governing Body o f the new JPUF.

The disability component has been prepared in close partnership with DPOs, particularly the

28. NGOs working with the target group. IDA funds will provide parallel financing for a program,

The children-at-risk component has been prepared in close collaboration with UNICEF and

9

which was initiated by UNDP and i s now financed and implemented by UNICEF. This project will scale-up efforts o f the existing project, so additional staffing needs at the margin will be financed by IDA.

B. Institutional and implementation arrangements

29. be three primary departments for (i) program development and sub-projects; (ii) finance and administration; and (iii) monitoring, research and evaluation. The finance and administration department will have dedicated procurement and financial management staff who are familiar with Bank procedures.

The disability component will be implemented by the newly restructured JPUF. There will

30. (MOSW) through the PCAR unit, which i s currently implementing the UNICEF-sponsored “Protection o f Children at Risk” Project. The Director General, DSS, will serve as the Project Director (PD) to the project and will be supported by the project implementation team o f the PCAR unit. The PCAR unit will comprise a Project Coordinator (PC), financial management and procurement specialists and assistants, accountant, monitoring and evaluation officer, divisional coordinators, technical specialists, administrative and support staff. See Annex 6 for details o f the PCAR project unit’s main functions.

The children-at-risk and institutional development components will be managed by DSS

C. Monitoring and evaluation o f outcomeshesults

3 1. The JPUF will have a dedicated monitoring an evaluation department which will be responsible for monitoring the outcomes o f the disability component. I t will employ a three-pronged approach to monitoring, research and evaluation: (i) monitor project activities and sub-project compliance, service standards and achievements against their contracts, including engaging third party evaluations o f the quality o f services; (ii) contract out research and surveys to establish baselines and monitor the status o f persons with disabilities, policy implementation, and provide feedback-information o f the system; and (iii) M&E to measure overall impact o f the broader program and attainment o f desired outcomes.

32. The children-at-risk component will be monitored primarily through the PCAR project unit, while developing the system o f the DSS. Three levels o f monitoring will take place: (i) component inputs and outputs will be monitored to produce required project reports; (ii) component intermediate outcomes such as the increase in the number o f users, development o f standards for services which cover vulnerable children, coverage o f services, etc., will be monitored through the information provided in beneficiary surveys, project progress reports, and independent and random rapid assessments o f the performance o f service providers; and (iii) component outcomes which are directly linked to the achievement o f project development objectives will be evaluated after the project has been implemented in its entirety. To prepare for the evaluation, the project will support establishment o f an MIS and develop a more robust baseline.

33. implementing agencies will be trained in M&E methods and policy and program development. The project will finance technical assistance while capacity o f DSS staf f i s developed.

For the institutional development component, personnel at the MOSW-DSS and in the

10

D. Sustainability

34. the services; (b) the service providing institutions; and (c) the nation.

Prospects for sustainability can be assessed at three levels: (a) the individuals benefiting from

Sustainability at the beneficiary level

35. disabilities and children-at-risk into social and economic l i fe. Experience o f NGODPOs in Bangladesh shows that successful programs can help with early detection, providing adequate rehabilitation, bringing children with disabilities to school, providing training opportunities, and helping people with disabilities find gainful employment. For children-at-risk, there are also examples o f successful intervention in Bangladesh (UCEP, etc.), which have been able to provide secure environments for vulnerable children, education, jobs, and reintegrate them with their families or communities. The emphasis on case management o f children would also ensure sustainability o f these interventions. Successful interventions will assure mainstreaming with the exceptions o f the most difficult cases.

Sustainability at the individual beneficiary level i s assured by mainstreaming people with

Sustainability at the institutional level

36. Sustainability o f the JPUF i s potentially a more difficult proposition. IDA support will finance activities o f JPUF for a period to facilitate the JPUF building up i t s current small endowment. Government contributions have been provided regularly in the past, and it i s expected that the higher and more independent and active profile for JPUF will allow it to raise endowment funds from the Bangladesh private sector, as well donors whose rules, unlike IDA’S permit financing o f endowments. The length o f time it will take to make the JPUF sustainable will depend in large part on the success o f i t s programs: effective and efficient service delivery through NGO/DPOs could attract higher levels o f funding. This will be assessed at the Mid-term Review for consideration as to how long IDA might consider financing the JPUF.

37. build their capacity will strengthen the prospects o f sustaining the impact o f project interventions at the local levels.

The window through which smaller disability NGOs and DPOs would receive training to

38. Sustainability o f the PCAR program will, in the long run, likely require increased government support. The importance o f tackling the problems faced by the urban poor - particularly children and youth has been highlighted by several recent reports and has already started to impact government policy and expenditures. In the recent period o f sustained economic growth, government has increased i t s ability and interest in supporting marginalized groups so that they can contribute to and benefit from that growth. Social protection is, therefore, one o f the fastest growing areas o f the budget and the government has repeatedly expressed i t s commitment to this area, particularly in channeling resources to the most effective programs. Like the disability component, increased financing would be the result o f success: if government i s able to manage more efficient and effective services through contracting NGOs, coverage would increase as would government’s willingness to finance the program. However, the f i rs t step to sustainability requires establishing the financing needs and then ensuring availability o f funds, given the overall fiscal envelope.

39. efficiency and focus o f how staff o f the MOSW and DSS work on social services delivery. There are

Sustainability o f the institutional development component will be achieved by increasing the

11

n o long-term recurrent cost implications as capacity building i s directed towards the employees o f M O S W and DSS - indeed productivity gains f rom training may reduce the need fo r additional staff.

Mitigation Strategy

M O S W will be redefining i t s role in supporting the provision o f services to that o f planning, improving data collection for policy making and monitoring. A jo in t M I S system wil l be established for the MOSW, DSS and JPUF.

Sustainability at the national level

Risk after Mitigation Moderate

40. The economic analysis given in section IV-A demonstrates the overall benefits at the national level. The project also contributes t o significant savings in long-term recurrent costs f rom switching to more cost-effective, community-based, NGO-provided approaches f rom costly institution-based approaches.

The project has a specific component on building capacity o f government at al l levels. A capacity assessment o f each NGO/DPO contract will be done based on the expected scope o f work. Best practices for accountability and transparency o f programs are being applied. Third party monitoring/audits

Project Design’s contribution to Sustainability

Moderate

Moderate

41. By supporting an approach to turn those who are normal ly excluded into productive citizens, the project design contributes to sustainability at a l l the individual, institutional and national levels. Even for those with severe disabilities who may not be fully mainstreamed, the project contributes to supporting and developing approaches which can reduce the unit costs o f care wi thout reducing the quality o f care, e.g., mov ing f r o m institution-based care to community-based care. F r o m a service delivery perspective, this builds o n the government’s already existing experience in making systems more efficient by contracting NGOs.

- - would be financed through theproject. A separate unit would be established

E. Critical risks and possible controversial aspects

Moderate

42. The risk analysis i s summarized in the table below:

under JPUF for procurement and contracting o f NGOs. Specialized staff will be recruited f rom the private and NGOs sectors. DSS will receive TA on procurement fi-om the project. Establish clear criteria and fol low up through MIS, operational audits, etc.

Risk

Moderate

Project design might overburden MOSW.

Limited capacity o f local governments and NGOs working on disability and children-at-risk. M O S W weak administrative and fiduciary capacity.

Procurement capacity limited.

Beneficiary selection not

Risk Before Mitigation substantial

substantial

substantial

substantial

substantial

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transparent. Coordination among ministries weak.

Reform o f JPUF may not result in a sufficiently independently managed organization. Irregularities in award o f sub-grants and implementation.

Small and scattered sub-grants result in activities not having desired or sufficient impact. Target groups may not use services or may not change behavior. Training o f M O S W staff may not result in long term capacity building. M O S W may be slow in contracting services.

Varied capacity o f NGODPOs could hinder implementation.

substantial

substantial

Substantial

substantial

Moderate

High

substantial

Moderate

JPUF Board i s comprised o f independent figures o f high reputation plus secretary level officials. Reform o f JPUF resulting in management o f recognized high integrity was a pre- condition for disbursing Bank funds through the JPUF.

Transparent processes and eligibil i ty criteria for a l l sub-grants, defined in Operational Manuals, are a pre-condition for this operation. Experience with PKSF and SDF provides a solid foundation for establishing a similar structure for this project with transparent recruitment criteria, accountability and intense reporting requirements. Implementing agencies are developing Operational Manuals, which document selection criteria, fiduciary procedures, monitoring mechanisms. Approval ofthese by IDA will be a key element o f appraisal. Funding will be based on agreed strategies and annual plans working toward achieving clear outcomes; major portion o f funding wil l go toward larger area-based performance contracts. Ongoing monitoring o f activities should enable feedback on the relevance and quality o f the activities, and allow corrections in annual plans. An institutional assessment o f the ministry i s ongoing and will be used to inform the design o f appropriate capacity building. The MOSW, through the P C A R project, i s already contracting services f rom NGOs and has developed a comprehensive set o f bidding documents. I t has prepared the outsourcing o f baby homes, for which it requested technical support from the Bank. The Credit Agreement wi l l make the necessary txovisions for contracting o f services. In order to involve smaller, less efficient NGODPOs, training and support would be incorporated to build their capacity.

substantial

Moderate

L o w

Moderate

L o w

substantial

Moderate

Low

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F. Loadcredit conditions and covenants

43. One covenant i s proposed: the implementation o f the JPUF and PCAR components will be according to agreed Operational Manuals which can be revised with prior agreement from IDA. The two draft manuals, assessed by IDA during appraisal, contain detailed descriptions o f the processes for defining, managing, selecting and monitoring sub-projects to be financed by the project. These include, among other, the governance framework for ensuring compliance with fiduciary guidelines, sub-project selection criteria, processes for developing annual work plans and related budgets, and guidelines for monitoring (both sub-project implementation as well as overall program outcomes).

IV. APPRAISAL SUMMARY

A. Economic and financial analyses

44. US$1.2 billion, or 1.74 percent o f GDP, i s lost per annum. This loss i s the cumulative o f four cost categories. First, because some people with disabilities are not employed, it costs Bangladesh US$891 million per annum. Second, some disabled children forego schooling because o f their disabilities and that costs the economy about US$26 million per annum because o f the lower stream o f lifetime earnings due to the lower educational attainment. Third, some people with disabilities need help from others to function. The cost o f adult helpers i s then US$234 million per annum from foregone income among adult helpers (usually women). Finally, children who are helpers o f disabled people forego schooling, costing Bangladesh US$28 million per year because o f the lower stream o f lifetime earnings due to the lower educational attainment. Therefore, the cost o f disability in Bangladesh i s US$148 per annum per disabled person. If these disabled people live in households with five family members, that loss in household income corresponds to almost a third o f the poverty line. The annual loss in lifetime earnings due to street children forgoing schooling i s estimated to be US$9 million in Bangladesh. This would be the result o f street children attending school instead o f working (and therefore foregoing earnings) and earning the skilled wage rate after age 18. The benefits o f getting street children into school are diminished somewhat because o f the reduced earnings that could have been earned as child laborers.

Analysis found that the cost o f disability in Bangladesh i s considerable, with an estimate that

Technical

45. There are three important aspects that make the project technically sound and sustainable:

a. Economic and social impact of the inclusion of people with disabilities. Empirical evidence demonstrates internationally that people with disabilities tend to be poorer, and the poor are more likely to be disabled. Stigma and lack o f access to services further exacerbate the problem, resulting in extreme social and economic exclusion. The JPUF renewal i s expected to lead to a significant increase in efficiency and effectiveness in the use o f resources (demand based sub-grants), reaching people with disabilities through better quality and coverage o f services and addressing issues o f stigma by sensitizing the broader population through awareness campaigns. The proposed operation will open up opportunities for community-based rehabilitation, education, access to health systems and aids, training and employment to a larger share o f people with disabilities. As a result o f increased social and

14

economic participation and support to families o f the severely disabled, levels o f poverty among the target population would decrease.

b. Participation of NGOsLDPOs and communities. The project has been designed with an objective to promote community-based development through the participation o f people with disabilities, childredyouth and their communities. I t rel ies primarily on contracting NGOs, DPOs and other c iv i l society organizations by funding “demand-based” sub-project proposals. Therefore, sub-project development, conceptualization, design, and implementation are driven by local and beneficiary needs. NGOs, DPOs and community leaders wil l serve as members o f special boards and committees (JPUF, N G O selection committees, advisory committees, etc.) offering their expertise and promoting accountability within these committees and boards.

c. Provision of integrated social services. The introduction o f a “case management” model in PCAR will help consolidate a variety o f rehabilitation and services for mainstreaming vulnerable children into one integrated package. This will assist in responding to the multi- dimensional needs o f children-at-risk with the help o f a well functioning network o f referral services which would be strengthened under this project. The provision o f integrated services through case management would enabled tracking the progress o f beneficiaries and has proven to be a cost-efficient and cost-effective approach to service delivery.

B. Fiduciary

46. forward in improving the public procurement environment. Though key policy reform actions have already been completed, including mandating new procurement act / rules, with associated procedures and al l documentations, implementation o f the national procurement act i s s t i l l a key challenge. However, this i s only the beginning, and there are s t i l l a number o f potential challenges in cross-cutting governance, institutional, and implementation issues, including inadequate enforcement o f regulations, inadequate adherence to the provision o f procurement approval process, delays in contract award, ineffective contract administration, allegations o f fraud and corruption, and political interference. Considering al l these factors, the procurement under the proposed project, although it contains only a small volume o f procurement, will have challenges requiring special measures to address associated risks (see Annex 8 for more details). A number o f measures are underway in the country, and as part o f the ongoing procurement reform, a second follow-on reform project under implementation i s expected to make the reform efforts sustainable.

Procurement. Bangladesh has undertaken procurement reforms, which i s a major step

47. Procurement Risks and Measures. Procurement activities under the project will be implemented by two Implementing Agencies (IAs); namely, the JPUF and DSS. The procurement risk, considering the country environment and the lack o f experience o f the agencies in implementing Bank-financed projects resulted in an init ial risk rating o f “substantial”. However, this i s expected to be reduced to “moderate” once the proposed mitigation measures as described below are put in place. In terms o f volume o f procurement, the draft procurement plan for all three components indicates a small amount o f goods and a few consultancy assignments (only about US$12.73 mi l l ion out o f the total project o f US$35 million). With a view to mitigating procurement risks, the project will rely on professional procurement specialists/consultants to be specially recruited in each o f the IAs. The procurement consultants are expected to be onboard well in advance o f the start o f any procurement activities. I t will be mandatory for these procurement consultants to be members o f the Bid Evaluation Committees. In addition, each agency will designate one focal person for procurement, and there will be specific provision for upfront training in PPAI PPR and Bank’s Guidelines. A procurement risk mitigation framework has been agreed with the IAs, which include mandatory

15

disclosure o f information, mechanisms for addressing complaints, and regular post reviews. The IAs wil l also ensure that the Operational Manuals include salient provisions o f the procurement arrangement and risk mitigation measures o f the project. All procurement activities will be subject to a six-monthly review by the IAs as well as by IDA. It i s expected that with implementation o f the risk mitigation framework proposed in the PAD, together with the above arrangements, the residual procurement risk will be ‘moderate’. Detailed arrangements specific to this project are described in Annex 8 (Procurement Arrangements).

Financial Management

48. capacity o f the country and the implementing agencies to assess the r isks and mitigation measures pertaining to the project. For the disability component, the JPUF has already recruited a financial management specialist. For the other two components, the PCAR unit will handle the project financial management.

A financial management assessment was carried out to identify the FM environment and

C. Social

49. The issues are somewhat different for disability and children-at-risk components, but the underlying theme for both i s to assure inclusion o f groups who are often excluded from society’s mainstream. With regard to the disability component, the primary goal i s to move away from a medical, charity model, which focuses on ‘fixing’ a perceived problem o f a person, to removing social, physical and economic barriers to their participation in al l aspects o f l i fe. It will be important to maintain a balance between allowing voice to various strong and vocal NGODPOs comprised o f people with disabilities, while assuring that the less organized are not left out. This balance will be achieved by working with larger NGOs to help develop capacity o f smaller, less organized DPOs as well as ensuring coverage o f underserved areas. The JPUF’s annual work plans will assure that funding i s available across types o f disability, and across types o f activities, so that less visible groups such as the intellectually disabled are not excluded. One particularly invisible and vulnerable group i s women and girls with disabilities who are more prone to abuse and often have no access to the limited services and support available. There will be a strong focus on ensuring a reduction in the gender gaps o f service provision, employment and broader social participation. The key issue with regard to children-at-risk i s to build a system over time which makes sure that they are supported in a systematic manner and to ensure that as many as possible are reintegrated into their families.

D. Environment

50. There are n o environmental issues raised by the project.

E. Safeguard policies

Safeguard Policies Triggered by the Project Yes N o Environmental Assessment (OPBP 4.01) [ I [XI Natural Habitats (OPBP 4.04) [ I [XI Pest Management (OP 4.09) [ I [XI Physical Cultural Resources (OP/BP 4.1 1) [ I [XI Involuntary Resettlement (OPBP 4.12) [ I [XI Indigenous Peoples (OPBP 4.10) [ I [XI Forests (OPBP 4.36) [ I [XI

16

Safety o f Dams (OP/BP 4.37) [ I [XI Projects in Disputed Areas (OPBP 7.60)* [I [XI Projects on International Waterways (OPBP 7.50) [I [XI

F. Policy Exceptions and Readiness

5 1. N o policy exceptions are triggered.

52. The appraisal found the project ready to implement with the exception o f services for children-at-risk. There i s a disbursement condition requiring the government to certify that the services financed by IDA are in compliance with Bangladesh's obligations under the UN Convention on the Rights o f the Child.

* By supporting the proposedproject, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas

17

Annex 1: Country and Sector Background

Estimates o f prevalence vary largely due to differences in the definit ion o f disability and coverage o f the surveys. A

International (HI) and NFOWD17 drew o n a sample population o f 13,205 people

percent as the prevalence rate o f disability. Figure 1 illustrates the

recently conducted study by Handicap

f rom a l l over Bangladesh and found 8.9

BANGLADESH: Disability and Children-at-Risk Project

Bangladesh: Type of Disability 1 1 %

1% 7

19

Country Background

- percentage share o f different type o f

Bangladesh has made strong progress towards reducing income poverty, p lacing it roughly o n track to meet the target o f halving the share o f the population living o n less than US$1 per day by 2015. Rising and stable economic growth, underpinned by good economic and social policies, have been a key factor in making this possible. In addition, pioneering social entrepreneurship, often with creative partnerships under innovative institutional arrangements, has also contributed immensely to the successes attained. These successes have compensated somewhat fo r Bangladesh’s critical and persistent weaknesses in governance. Currently the challenge i s t o steer the economy to middle income status, to which end the m u c h improved economic fundamentals and successful implementation o f an array o f first generation reforms in recent years augur wel l . But the challenges ahead are formidable. Bangladesh must actively pursue a range o f second generation pol icy reforms, which are necessary to sustain and improve good growth and human development achievements.

i Visual impairment E Physical disability 0 Heanng impairment 10 Intellectual disability E Speech impairment Multiple disability

I f economic growth i s not enough to achieve this, it i s necessary to examine the institutions and delivery models responsible for the services that are meant to combat hunger, disease, mortality, ignorance and discrimination, t o name a few. A key challenge i s t o find a way to integrate those who cannot fully help themselves into the mainstream o f society. T w o major groups need direct support - the disabled and vulnerable children - and they are the targets o f this project.

Brief Profile of Disability and Vulnerable Children

Generally speaking, the rate o f disabil ity in Bangladesh declines with rising incomes suggesting a close relationship between poverty and disabil ity in the country. The situation o f children i s worsening, particularly in the metropolitan areas.16 The available evidence suggests that the slum population, for wh ich outcomes o n many MDG-related indicators are highly unfavorable, has been growing at roughly 13 percent per year, or over 200 percent in the last decade alone.

Profile of People with Disabilities: Issues and Challenges

I6 Stopnitzky, AI-Zayed and Khan (2006) “Addressing the Crisis in Secondary Education for the Poor in Metropolitan Areas”. Presented at Workshop on Towards and Strategyfor Achieving the MDG Outcomes in Bangladesh.

Disability in Bangladesh- A Study on Prevalence, July 2005 by Handicap International and NFOWD.

18

study also provides age-wise break up o f disability along with types o f disabilities (Table 1). This prevalence rate o f 8.9 percent differs significantly from the last census, which yielded a 1.6 percent prevalence rate, and a 1997 Action Aid survey o f five geographic areas in Bangladesh which documented 13.3 percent. The HI/NFOWD study sample i s fairly small, but the methodology i s more in line with what the Bank considers good practice for disability measurement, and will therefore guide project development until better data can be made available.

Types of Disability

Mul t i p le

Age Groups 0-5 [ 6-15 I 16-30 I 31-50 I 51-64 I 64+ 7.1 I 10.4 I 10.3 I 4.0 I 13.8 I 18.6

Intellectual Physical

I Speech I 10.7 I 8.5 I 5.6 I 2.5 I 0.9 1 1.9 I

0 10.4 15.1 7.0 2.3 1.2 50.0 30.2 33.3 30.8 24.8 1 .o

Visual Hear ing

People with disabilities are amongst the most vulnerable o f the disadvantaged groups o f people in Bangladesh. Most receive l i t t le or no development assistance. Therapeutic services and availability o f assistive devices are extremely limited. Socially and economically, people with disabilities are l e f t out o f the development process mainly due to lack o f awareness o f people who design and implement development programs, negative attitude among general population towards people with disabilities, scarcity o f resources and lack o f knowledge and sk i l l s o f how to address needs o f people with disabilities inside development programs. People with disabilities have limited opportunities to study at educational institutions. The environment in which they l ive are often inaccessible, lacking basic accommodation to transport, buildings, the education curriculum, teaching methodologies, job markets, etc., further creating obstacles to participation.

14.3 11.3 15.9 40.3 39.4 47.4 17.9 29.2 19.8 15.4 18.3 14.7

Poverty has a strong influence on the disability situation in the country. About 80 percent o f people with disabilities are living in the rural areas. For a country l ike Bangladesh, poor nutrition, dangerous working and l iving conditions, limited access to health care, poor hygiene, bad sanitation, inadequate information about causes o f impairment, and natural disasters contribute to the creation o f disabilities. DFID estimates that more than 50 percent o f the impairments that result in people being included in current disability prevalence rates “are preventable and directly linked to poverty.” Poverty, impairment and disability also have impacts on families. For every person who has an impairment and/or disability, 4 to 5 other family members are also affected. This means that a large section o f people in Bangladesh are directly linked to disability as a result o f poverty and vice-versa. The poverty situation and scarcity o f resources also limits creation o f rehabilitation opportunities for people with disabilities and their capacity to access and attain much needed services. A study on Disability in Bangladesh reflects that 68.9 percent o f people with disability cannot seek medical or rehabilitation assistance due to economic hardships. The same study also found that 96.7 percent of people with disabilities did not get any help from organizations. All these are suggestive o f the

19

millions o f people with disabilities in Bangladesh who are not receiving much needed support mainly due to poverty conditions."

Profile of Children-at-Risk: Issues and Challenges

According to the World Bank in 2003, 37 percent o f the 133.3 mi l l ion population o f Bangladesh belonged to the age group o f 0-14 years, yielding a population o f almost 50 mi l l ion children. According to the 2001 census, out o f the total population o f 130 mill ion, there were 55.8 mil l ion children under 18 years. The absolute number o f children-at-risk i s not available; however, with 55.8 mil l ion children and poverty rates o f 40 percent, this number could be significant. Children are the mainstay o f a nation, and keeping this mind government has undertaken a number o f activities that have direct bearing upon children." Available data pertaining to children at risk include:

Children at Work: A National Child Labor Survey, 2002-03 by the Bangladesh Bureau of Statistics conducted throughout the country, covered the chi ld population aged 5-1 7 years old. Out o f the estimated 42.3 mi l l ion children in this age group, 7.4 mi l l ion were engaged in economic activity, Out o f the working children, about 5.4 mi l l ion were boys and nearly 2 mil l ion girls. The survey report said there are over 4 mi l l ion children who neither go to school nor engage in any work. Working children were involved in 300 types o f work and o f these, 49 are injurious to their physical and mental welfare. O f the total working children in Bangladesh, 7.7 percent were engaged in hazardous jobs. According to the ILO, children are employed in a wide range o f manufacturing jobs and the results, namely lost childhood, foregone education and special susceptibility to the hazards o f the work, are the same for all.

Children on the Street: Although street children are not a new phenomenon in Bangladesh, the fact i s that appropriate data or reliable statistics are available on their number, their actual living conditions, needs and interests. According to the 'Estimation o f the Size o f Street Children and their Projection for Major Urban Areas o f Bangladesh 2005' commissioned to the Bangladesh Institute o f Development Studies (BIDS) by ARISE, the present number o f street children in six divisional cities has been estimated at 390,000. The major concentration i s in Dhaka city at 63.91 percent, and the lowest concentration o f 2.5 percent i s in Barisal. The Consortium o f Street Children estimates that there are 445,226 street children in Bangladesh, with 75 percent o f them living in the capital city, o f which 53 percent are boys, and 47 percent girls.*' The problem i s thought to be escalating due to the r ise in urban migration and rural poverty. Despite the hazardous living conditions in cities, out-migrants from rural areas are pouring into urban centers due to rural poverty, unemployment, landlessness, river erosion, family conflict, the worsening law and order situation, disintegration o f traditional family and community structures that have ushered changes in the socio-economic scenario, As such, the number o f street children i s likely to increase. The BIDS study predicts the number street children shall r ise to 1.2 mi l l ion in 2014 and 1.6 mi l l ion in 2024. All categories o f street children are called Tokai ('rag pickers') by the general public, although they may be engaged in a range o f petty trading, employment, begging or criminal activities. The average daily income o f street children i s approximately US$0.55.

Homeless Children: According to a study conducted by the BIDS on homeless children, around 700,000 children live on urban streets, a number that has grown by a third since 2003.2'. Many o f

Community Based Rehabilitation Practices and alleviation o f Poverty o f people with disabilities in Bangladesh, Bangladesh 18

Country Paper by Khandakar Jahurul Alam, N m u l Bari and Masudul Abedin Khan. l9 Ensuring Child Rights by Md. Sazedul Islam, 2007 http://streetkidnews.blogsome.com/go.php. 2o Street Children: Bangladesh, UNESCO Bangkok, htt~://www.unescobkk.or~index.~h~?id=3371, (Sept 2001 survey).

Fear for Bangladeshi Street Kids http://news.bbc.co.uk/cbbcnews/hi/newsid~5250000/newsid~5253300/5253324.stm 21

20

them are drug dependent and run the risk o f ending up incapable o f managing their own or their future families' lives. Many children come from extremely poor and broken families (fathers re- married, single mother, etc.) and are exposed to extreme deprivation suffering from malnutrition, lack o f shelter, poor health and widespread illiteracy, perpetuating the inter-generational transfer o f poverty and major loss to human development o f the country.

Children and HIV/AIDS: With a prevalence rate o f less than 1 percent, HIV/AIDS in Bangladesh may not appear to be a major threat. Yet nothing can be farther from the truth: in a population o f over 130 million, a mere 1 percent r ise would mean an addition o f more than a million HIV/AIDS cases. The first case o f HIV was detected in 1989. According to a 2004 UN study, HIV infections have tripled in the last six years. UNAIDS estimated that 13,000 adults and children were living with HIV at the end o f 2002.22

According to the study, most o f these children hail from rural areas. Young girls, in many cases, fal l victim to human trafficking and many o f them are forced into begging and prostitution. According to Ashakti Punorbashan Nibash (APON) - a drug rehabilitation center that also treats addicted street children free o f cost, most child laborers are addicted to drugs, 'chakki' in their language, so as to work hard and carry heavy luggage. They buy sleeping pills, phensidryl, heroin and hashish from local pharmacies and smugglers, who force them to carry those for them. Many o f the children's employers also provide them with 'chakki,' leading to addiction. The addicted children get involved in pick-pocketing, mugging and other crimes for money to buy drugs. Girls are particularly vulnerable among street children.23

These issues are synthesized in the table below:

Institution

Ministry o f Social Welfare (MOSW)

Department o f Social Services

Official Responsibility Policy formulation and leadership in areas o f social security and protection and inclusions o f groups such as the disabled, children- at-risk.

The service delivery arm o f the Ministry

Current Role

Lit t le policy leadership but has been instrumental with pressure from civil society in acceding to international conventions. Has not been able to rewrite or reframe laws to meet the convention requirements. The Ministry has been successful in getting increasing resources for means tested old age, widow and disability allowances distributed through local governments. In areas o f disability and social services the DSS has focused on institutional care and very l i t t le on mainstreaming the disabled and children-at-risk into the community. It has about 11,000 social workers who do not provide much service and are apparently unaware what they should do as pro-

Issues

Need to strengthen capacity to develop policies and take more o f a leadership role than a reactive role.

Provide support to training so the social workers can provide services such as early identification, referral and community based care. Also, need to change the nature o f the institutional care and attitudes o f those working in the

Project Support needed

Support the development o f policy development, monitoring and evaluation cell. During the short run this could be contracted out.

Support restructuring o f the DSS and training for the social workers so that their services can be used for pro-active early detection and community based care.

HIV and AIDS in Bangladesh http://www,youandaids,org/Asia%20Pacific%2Oat%2Oa%20Glance/Banindex.asp 23 Children: 700,000 street children risk stepping into crime world, Porimol Palma: The daily Star, Muktadhara.net. 9 May 2001.

21

Institution

National Foundation for Development o f Disabled People (now JPUF)

NGOs

Official Responsibility

Set up as an endowed foundation to finance activities supporting the People with Disabilities from its endowment income. The government provided the initial endowment and has added to it regularly.

The Government has made NGOs a major partner in the delivery o f services to the disabled, children- at-risk and other vulnerable groups.

Current Role

active social workers. Despite i t s legal independence, it was treated as an arm o f the Ministry, headed by reluctant officials who saw it as a punishment posting. It functioned in a desultory non-transparent manner making small grants, which the major DPOs found too small to be o f use to service deliveIy needs. There has been no audit and its lack o f transparency has discouraged other contributors to i ts endowment, which remains small. Bangladesh i s the home of some o f the largest and most successful NGOs in the world which are world leaders. But the country also has many small localized NGOs some which have strong capacity and some o f which are quite weak.

Issues

institutions. Need to make this transparent and appealing to other donors who could contribute to increase i ts endowment and make i t se l f - sustaining in the long run. This type o f organization already exists in Bangladesh. Also, need to ramp up i ts ability to support financing service provision and advocacy o f disability issues.

Most o f them need a transparent source o f funding. The restructured JPUF would provide such a source for DPOs. Contracting for child services needs to be made more transparent.

Project Support needed

During project preparation government has agreed to restructure the PUF to be more autonomous and transparent. World Bank support i s contingent on this change. During implementation the project wi l l support ramping up the services and capacity of JPUF allowing i t to raise to build up i t s endowment to become self- sustainable in the long-run.

Project wi l l help restructure JPUF which wil l help DPOs. Project i s considering a framework to increase transparency o f contracting for NGOs providing child protection services.

22

Annex 2: Major Related Projects Financed by the Bank and/or Other Agencies


Sector Issue Project Name Latest Supervision Rating

(PSR/ISR)

Progress (IP) Objective (DO) Bank-financed Projects Implementation Development

Improving access to quality Reaching Out-of-School Children S S education for out-of-school children to facilitate their completion o f primary schooling.

(P086791); Grant No. H-1020-BD.

Increase access to schooling for Second Primary Education the disadvantaged. Development Project

(P074966); Cr. 3857-BD.

Other Development Agencies

Social Protection

Social Protection

S

United Nations Development Appropriate Programme (UNDP) Resources for United Nations Office for Project Services (UNOPS) Children’s

Improving Street

Environment (ARISE) Protection o f

(PCAR)

United Nations Children’s Education Fund (UNICEF) Children at Risk

S

23

Annex 3: Results Framework and Monitoring BANGLADESH: Disability and Children-at-Risk Project

Accessibility and quality o f care improved by: (i)

Results Framework

1. Minimum standards of care for working with street children are developed and

To observe compliance with minimum standards o f care

Project Development Objective

To expand the coverage, use, and quality o f social care services for persons with disabilities and vulnerable children as a means o f promoting equity and social inclusion.

Intermediate outcomes

Project Outcome Indicators

1. 10% increase in the coverage o f disabled population by JPUF starting from the baseline o f services financed by NFDDP during 2007.

2. 30% increase in early detection o f disabilities and impairments.

3. 10% increase o f disabled people are working (job or self-employed).

4. 30% of the participating street children attend formal or nonformal education, or training starting from the baseline o f the services provided by the PECAR project during 2007.

Component 1: Disability Services

Intermediate outcomes indicators

Expansion, awareness and competencies improved by: (i) conducting outreach campaigns on disability issues; (ii) training partner organizations in specialized services; (iii) contracting NGOs, DPOs for delivering services; (iv) developing tools and mechanisms for early detection and impairments; (v) JPUF fully operational and offering composite set o f services and information for disabled people.

1. 10% increase in disabled people using the services provided by NGOs contracted by JPUF starting from the baseline o f services financed by NFDDP during 2007.

2. NGOs, DPOs and community groups are capable o f developing and implementing rehabilitation and other disability programs to provide services to at least 20% more o f the target population.

3. Increased awareness and understanding o f disability issues in the population at large measured by spot KAP surveys.

Use of Project Outcome Information

To evaluate overall performance of the social services and policies in achieving their objectives. To gauge efficiency of business processes in MOSW and JPUF.

To make necessary adjustments in order to ensure transparent, efficient and effective performance and service delivery.

Use o f intermediate outcome monitoring

If people with disabilities receiving the services are fewer than expected, then the necessary corrective measures wil l be taken to remove the obstacles to prevent further delays.

If public awareness i s insufficient to generate demand from the communities, the efforts will be intensified to raise awareness and promote demand for services including national campaigns.

24

expanding services in more locations; (ii) developing and implementing standards of care; (iii) introducing referral system, integrated service provision and case management; (iv) increasing staff competences and skills; and (v) using automated MIS to monitor service delivery.

and efficiency I transparency by which the services are delivered. Non compliance with standards and any sign o f deterioration in services wi l l be subject to review by the national steering committee and corrective measures would be proposed to review the design and elements o f the programs to prevent deterioration in the situation.

applied across implementing NGOs. 2. Alternative care model for children

without parental care developed and piloted.

3. MIS established and used to monitor service delivery to street children.

Component 3: Institutional Development

MOSW-DSS perform i t s functions and deliver services according to their respective mandates and efficiently and effectively.

1. Evidence of MOSW-DSS taking lead in planning and formulating policies and programs consistent with its institutional mandate.

2. MIS developed and able to produce relevant reports to assess the performance o f selected programs.

To monitor performance of MOSW in taking lead in policy formulation, regulation and implementation.

To make informed policy recommendations and communicate them to all stakeholders.

Arrangements for Results Monitoring

1. Institutional Arrangements

The results o f the project will be monitored through the respective M&E units in JPUF and MOSW- DSS (PCAR) in coordination with NGOs, beneficiaries, and other partner organizations. For monitoring disability services, a full time Director o f M&E will be appointed in JPUF to coordinate the monitoring activities both in terms o f processes and outcomes. In addition, there will be a special evaluation unit in JPUF, which will report directly to the Board. In the absence o f branch offices, JPUF will primarily rely on i t s implementing partners to issue activity reports which will be reconciled with the results on the ground by the independent consultants and specialists. The beneficiary input will be an integral part o f the reports prepared by the independent consultants.

For monitoring children-at-risk services, a full time Evaluation and Monitoring Specialist will be hired as part o f the Project Implementation Team to coordinate the monitoring functions jointly with the Divisional Coordinators. The divisional coordinators will be responsible for overseeing the implementation o f activities in six divisional cities, in 1 1 locations. The Divisional Coordinators will ensure timely preparation o f progress reports in coordination with the implementing partners (NGOs) and will check the validity o f the reports prepared by the NGOs with help from independent consultants. The National Project Director, PIC and Steering Committee members will undertake regular visits to the project locations to ensure progress towards the achievement o f the expected results. Based on the reports from divisional coordinators, independent consultants, and feedback o f

25

the committees, the Evaluation and Monitoring Specialist will compile data on quarterly basis and prepare progress report for the National Steering Committee who will approve and share with the Bank. In addition, the Monitoring Specialist will oversee the efficiency o f service delivery for street children through a set o f economic studies, which would seek to establish the costs for service delivery for the various phases o f the street children approach (outreach, drop in centers, night shelters, etc.). The objective o f these economic studies would be to provide more information on the relative effectiveness o f the different elements o f the services provided. This in turn would help define future policy as wel l as program design.

2. Data Collection

With regard to disability services, data on subproject outcomes and results will be generated from different sources including: (i) an annual evaluation o f randomly selected sub-projects and a qualitative beneficiary assessment; (ii) evaluations by external consultants; and (iii) impact evaluations for which the data collection mechanisms will be put in place during the project. The operational manual will include detailed plan for data collection for outcome and impact indicators, and methodologies for assessment. The M&E unit will coordinate with MIS at JPUF to ensure that the data i s entered as it becomes available from any and al l relevant sources.

The data sources for monitoring the results o f children at risk services will include: (i) activity progress report including the feedback o f the referral agencies; (ii) data produced by the NGOs MIS system; (iii) rapid beneficiary assessments; and (iv) evaluation reports by independent consultants. The information from the implementing agencies will be entered into the MIS at the PCAR to be able to generate consolidated reports on outputs and, as far as possible, results that would reflect both the quality o f services and quantity o f children served. Important additional information would be provided by the beneficiary assessment and tracer studies for those street children who will graduate from the institutions after successfully completing the program in the 4* and 5th years o f the project.

The MOSW will be the main users o f the resulting analysesheports, feeding them into the policy making process and assessing the project's effectiveness.

3. Capacity

For both JPUF and MOSW-DSS, the capacity for M&E will be built through the project. The training and capacity building initiatives will focus on monitoring both the process and outcomes. Wi th regard to the process, the emphasis will be on the implementation lags, misguided activities, change o f strategic direction so that the relevant staff/ofYicials will be able to identify the bottlenecks and take corrective actions to prevent deterioration o f the sub-projects.

Wi th regard to measuring the outcomes, JPUF, MOSW-DSS and N G O staff will be trained in data processing (storage), analysis, and reporting. Moreover, community groups will also be trained to participate in the monitoring exercise to be able to assess situation o f their communities and families before and after the project.

Evaluation of outcomes and impacts

The project also includes funding for intensive evaluation o f outcomes and impacts.

26

For the disability services, the evaluation i s planned as follows. The project will support development o f the basic parameters for doing the impact assessment including setting up o f institutional framework, conceptual framework with model o f impact chain, specification o f the unit(s) or levels, at which impacts are assessed, and specification o f the types o f impact that are to be assessed. In addition, a specialized survey o f approximately 15,000 households will be undertaken to develop a baseline by which the project’s achievements could be measured. The survey would also serve as a key data source for the impact assessment.

To address longer term measurement and monitoring disability issues, Bangladesh Bureau o f Statistics and Household Income and Expenditure Survey (HIES) are planning to revise Census and HIES disability questions and analysis to be more in l ine with the international standards being developed by the work o f UN Statistics Washington Group. They have agreed to discuss the information requirements for implementation o f the UN Convention with relevant ministries, and to begin development o f a new set o f Census and HH Survey questions.

In the case o f the Children-at-Risk component, an evaluation methodology would be developed to provide information on the reintegration o f children into the education sector, their families and communities. The methodology would include control and treatment groups, and seek to establish tracer studies that would fol low the lives o f randomly selected children. In addition, the pilot on alternative care for orphans would be accompanied by intensive evaluation o f the process and possibly o f outcomes. The methodology for the evaluation o f the pilot, however, would be designed once the alternative care model i s developed.

27

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Annex 4: Detailed Project Description


The proposed project will be implemented through three components: (a) increasing the coverage and quality o f disability services, building awareness, and increasing capacity through strengthening o f the JPUF, improving the knowledge base and monitoring o f disability and building capacity for policy development in Bangladesh; (ii) strengthening integrated social work and care services for vulnerable children aged 0-1 8, particularly street children, primarily in urban and metropolitan area, and (iii) building the capacity o f the MOS W for developing, implementing and monitoring policies and programs consistent with the mission and mandate through promoting public-private partnerships, The principal focus o f al l three components i s to improve services for marginalized populations and help to mainstream them.

The overall budget for the project i s estimated at US$35 million.

COMPONENT 1: Expanding Disability Services, Improving Awareness, and Building Capacity (US$22 million)

The objective o f this component i s to expand services for and empowerment o f people with disabilities, and build the capacity o f NGOS/DPOS~~ and government agencies serving the disabled people. The component would support the restructuring and scaling up o f the JPUF, to channel grants to DPOs and disability NGOs. The component would be implemented by the JPUF and would comprise two sub-components:

Sub-component l(a): Restructuring and capacity building of the JPUF:

This sub-component would reform and strengthen the JPUF to become a center o f excellence for contracting disability services, promotiodawareness building, research, monitoring and evaluation, and establishing good practices. The vision for the JPUF i s to: (i) reform into a strong and independent apex body, which would operate with substantial autonomy under the management o f a nationally recognized leader; and (ii) positively affect the way disability i s addressed in Bangladesh to achieve a higher level o f social equity and inclusion for people with disabilities.

The restructuring o f the JPUF would seek to emulate as closely as possible the management structure and operational processes adopted by the SDF and the PKSF. I t will use transparent criteria and accountability mechanisms, to select and finance sub-projects in accordance with the agreed overall strategy, priority areas o f focus and the annual plans. The Foundation would adopt a non-government salary scale similar to the SDF to help attract and retain new talent. Activities would commence by restructuring and revitalizing the Foundation, recruiting new management o f recognized integrity, bringing in additional staff with recognized technical and operational competence in the domain o f disability, setting priorities for funding, and building competencies in disability research, M&E and awareness building.

2 4 Unless otherwise noted, the term Non-Governmental Organization (NGO) i s here defined to include community- based organizations, disabled persons organizations, and international and national NGOs.

33

To sustain the restructuring process and help JPUF evolve as a viable development agency representing people with disabilities, the project will support capacity building both at the strategic and operational level. Both roles are mutually interdependent and wil l be pursued together.

+ Enhancing the strategic role: While JPUF sets up the institutional and operational structures, the project will support the Foundation to continue to play a vital role in formulating disability policies, legislation and strategies to influence the way disability i s addressed at the national level. I t also aims to take the lead in preparing a National Framework o f Action starting with a review o f the National Policy of Disability to ensure compliance with UN Convention on Disability. The National Framework of Action will guide the operations o f the JPUF including the work o f multitude of disability organizations, and help influence mainstreaming o f disability issues in the national agenda. To assist the JPUF in fulfilling i t s strategic and policy role, the project will provide technical assistance in policy analysis, disability measurement and analysis, developing tools and mechanisms for assessing, analyzing and addressing disability, exclusion, equity and empowerment o f the disabled population.

+ Strengthening operational and management structures: To advance the setup o f the operational and management structure, the project would provide assistance for: (i) developing operational guidelines and instructions; (ii) planning, coordinating, managing and monitoring JPUF activities and sub-projects, linking them to disability goals and needs of the beneficiaries; (iii) developing mechanisms o f accountability including enforcement o f relevant rules/procedures/laws pertaining to provision and management o f services and strengthening integrity norms; (iv) setting up a monitoring and evaluation system for programs and projects and training of staf f in their implementation; and (v) establishing an integrated management information system that, inter alia, will serve as a gateway to information on disability programs in Bangladesh for both external and internal users.

The beneficiaries o f this sub-component would be the: (i) NGODPOs and disability activists that would benefit from funding and expertise from the JPUF, (ii) policy makers who would obtain necessary information for policy formulation and monitoring progress; and (iii) civil society organizations and individuals who would benefit from knowledge and understanding of disability issues to insight them to undertake future programs on the subject. The ultimate beneficiaries o f this sub-component will be the PWD and their families.

Sub-component 1 (b): Provision of Disability Services, Education, Training and other Empowerment Activities through NGODPOs:

This sub-component would provide financing for disability services offered by NGOsDPOs using a demand-driven approach following predetermined eligibility criteria. Sub-projects could include early detection and intervention, prevention, rehabilitation, counseling, communication and awareness, empowerment, education, skills development, provision o f assistive devices, mainstreaming and community-based rehabilitation (CBR). The JPUF will inform government and nongovernmental agencies, community groups, disabled people organizations, and the public at large through IEC (Information, Education and Communication) channels about i t s objectives, eligibility and selection criteria, conditions of funding, and methods of implementation. The detailed description of the eligibility o f the sub-projects, approval and selection criteria, grant limits, applicable procurement procedures, and roles o f various committees will be elaborated in the operational manual. The sub-projects would be solicited only after these procedures are

34

established, priorities are established through broad consultation, and systems are in place to operationalize the fund.

a.

b.

C.

d.

e.

f.

€5

h.

SUB PROJECT SCREENING APPROVAL PROCESS

The JPUF wi l l undertake broad consultations with numerous stakeholders including, inter alia, NGO/DPOs, professionals, academics, activists and relevant government ministries. From these consultations and analysis o f available data, 5-7 key priority areas for investment wi l l be established. This wil l form the annual work plan to guide sub-project financing. Information gathering and facilitation. NGODPOs wi l l discuss with beneficiaries their needs, priorities, expected results based on which they wil l prepare the sub-project idea and submit to JPUF. Pre-identification of initial sub-projects. JPUF wi l l solicit a small number o f sub-projects prior to project effectiveness by JPUF, so that their implementation can start immediately after effectiveness, following a shorter facilitation process. The other sub-projects wi l l be selected as described below. Identification and preparation. Sub-projects wi l l be identified by NGODPOs within the eligible locations through a consultation process, at the end o f which the most urgent needs wi l l be agreed upon with the assistance o f facilitators. Submission of sub-project applications and support for preparation of technical documents. Applications wi l l be submitted by NGODPOs, and go through a screening and pre-appraisal process by JPUF. If needed, JPUF could finance the preparation o f technical documents (feasibility studies, legal and other permits) to support the application. Appraisal and approval. JPUF wi l l conduct the appraisal process. Applications that pass the desk appraisal wi l l be subject to a field appraisal, which wi l l take into account both technical and financial feasibility and social impact. The final step wil l be approval by an independent selection committee and/or JPUF Board. Signing and Implementation. A sub-project contract wi l l be signed between JPUF and the NGO and/or the main executing agent. The NGO and/or the main executing agent wi l l be accountable and responsible for the efficient implementation o f the activities agreed in the sub-project, including the contracting o f small works, goods and services. I t wi l l also be expected to participate in the operation and maintenance o f these activities. Monitoring and Evaluation. M&E wi l l be carried out at two levels. First, the JPUF’s M&E Unit wil l carry out both process and impact monitoring and wi l l contract external evaluations to assess the programs’ impact at the community level. And second, through the facilitation process, the NGOs/DPOs along with community groups and beneficiaries wi l l be encouraged to establish processes of participatory M&E so as to monitor their own performance as a vehicle for institutional learning and enhancing performance.

The priority areas o f financing for funding wil l remain flexible, determined by the Board o f JPUF and based on the target set in the annual working plans. It could include:

Area-based performance contracting: Larger annual funding for NGOPartner Organizations to cover an agreed geographical area with an agreed service o f specific quality such as early detection and treatment o f children with disabilities and developmental delays, CBR or ski l ls training. Award o f initial contracts under this window would be subject to rigorous screening of NGO/DPOs against set eligibility criteria which emphasize good performance. Renewal o f contracts would be subject to the NGOs meeting pre-identified targets and standards as validated by third party reviews.

Training and support to partner organizations: Some NGODPOs, academic institutions, foundations or independent contractors may have specific expertise and sk i l l s in disability which are required but not widely available (for example, production or distribution o f assistive

35

devices or early detection). In such cases, the JPUF may opt to contract the expertise to train, support and monitor the other Partner Organizations. Likewise, smaller DPOs are frequently in need o f strengthening their capacity to manage and monitor the services they provide and raise funds from donors and government agencies. There will be a window for training and capacity building o f such DPOs.

+ Primary and specialized rehabilitation services: There i s growing emphasis on providing integrated package o f services to respond to the specific needs o f people with disabilities. JPUF will contract a professional agency to help coordinate a variety o f referral services and facilitate access f rom primary care to secondarykertiary level services as required. Primary rehabilitation services can be offered at the door step such as physiotherapy, occupational therapy, daily l iving skills, locally available assistive device support, and health care services. Specialized rehabilitation generally requires a referral to tertiary level services including advanced and expensive medical interventions.

+ Promotion of disability issues: Even though the existing policy framework i s supportive of disability issues, there i s a lack o f understanding o f these issues in government and society. The JPUF could contract professional agencies to promote the abilities and rights o f the disabled. Promotion could also include monitoring implementation o f existing laws and regulations, promoting universal design and accessibility, and a broad range o f means to eliminate barriers to full social and economic participation.

+ Innovation grants: Smaller one-off grants to introduce or pi lot new interventions, assistive technologies, specialized equipment, develop curricula or learning materials for people with disabilities, communication and awareness campaigns, etc. Award o f contracts under this window would be based on the innovativeness and likelihood o f sustainability o f the proposal. Special consideration would be given to Self-help Groups and DPOs.

COMPONENT 2: Strengthening and Expanding the Network of Services for Children-at-Risk (US$9.5 million):

The objective o f the component i s to improve access, quality and relevance o f services for children- at-risk in selected cities o f Bangladesh. To achieve the objective, the component would take a phased approach during which the legal and policy framework would be aligned with the UNCRC, the capacity o f the DSS would be strengthened to design and oversee programs for child protection (both supported under component 3), and pi lot interventions would be implemented to inform the child protection policy framework through (i) improving and expanding services for street children with a focus on strengthening a referral system, case management25 and their reintegration into their families/communities; (ii) developing and piloting alternative approaches to institutional care for orphans, and (iii) improving the capacity o f relevant service providers to ensure quality, efficiency and effectiveness o f services for children-at-risk.

The phased approach will include short- and medium-term actions, as well as actions that are overarching with no time bounds:

*’ The case management system being proposed here i s to make sure that every child who enters the system i s properly monitored and support i s provided consistent with their needs. Given the early stages o f these services - at a pilot stage - the basic approach wil l need to be refined and developed during the course o f the project based on experience gathered and consistent with UNCRC guidelines.

36

a. In the short term, over the f i rst 12-24 months, the project would emphasize the institutional strengthening and capacity building based on a plan developed by MOSW-DSS. This would also include the development o f standards o f care for services provided to street children under the project.

b. A medium-term agenda would include improving and expanding services for street children and children without parental care with focus on community-based care and rehabilitation services. The lessons from these programs will help align the existing legal and policy framework to the UNCRC and local realities.

c. Integration (mainstreaming / inclusion). This gigantic task goes beyond the time limits o f the project. It would require involvement o f al l stakeholders - government, NGOs, public and private sectors - in the development o f an integrated and comprehensive child protection system with the goal to integrate these children into their families, communities and country’s social and economic life.

The component would be managed by a Project Implementation Unit under the Department o f Social Services (DSS) that i s also implementing the UNICEF-financed “Protection o f Children-at- Risk (PCAR)” Project. The PIU would subcontract NGOs to deliver services to the children in accordance with standards o f care developed for these services:

+ Sub-component 2(a): Support for institutional and capacity building of DSS staff and service providers: In order to ensure adequate quality, effectiveness and efficiency o f service delivery under other sub-components, this sub-component would provide training and capacity building tailored to enhance the quality o f services for children-at-risk. It would: (i) develop and adopt minimum standards o f care for the relevant services for street children to be adhered to by al l partner implementing agencies; (ii) provide training in ‘standard compliance’ and monitoring; (iii) develop a “case management” tool for effective individual care and rehabilitation planning; (iv) provide training in case management and referral coordination; (v) enhance ski l ls in specialized areas (mentoring, volunteerism, social work, care, counseling, etc.) for developing and managing the rehabilitation and integration cycle; and (vi) provide training in program management, networking and coordination with other service providers, monitoring and reporting.

W Sub-component 2(b): Improving and expanding services for street children. This sub- component would support the expansion o f the UNICEF-sponsored project “Protection o f Children-at-Risk (PCAR)” from six to eleven locations.26 The PCAR project i s based on a four- step model to rehabilitate and integrate street children into mainstream society and includes: (i) outreach activitiedopen air schools, (ii) daytime drop-in centers, (iii) night shelters/homes, and (iv) training and social activities that promote reintegration with families and society as a whole.

Using PCAR’s existing model, the project would expand the services while strengthening the case management and referral system. I t wil l (i) expand the services in geographical terms through contracting o f NGOs while broadening the scope o f services for street children to strengthen the case management and referral system; and (ii) establish a project monitoring and evaluation system as an integral part o f the service delivery process, both at the management level and at the level o f

26 Six divisional cities-Dhaka, Chittagong, Rajshahi, Khulna, Barisal, Sylhef and adding district towns Narayangong, Mymemsingh, Comilla, Rangpur, Jessore.

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service providers to keep track o f overall progress as well as evaluate the outcomes and impact o f the services on street children.

The conceptual framework for strengthening the existing PCAR model would comprise:

Strengthening case assessment, planning and management services at the drop in center to develop an appropriate “development plan” for the child. A case manager will be assigned from the time the child contacts the drop-in center to the implementation o f the development plan. ‘The plan will focus on: (a) desired outcomes and timeframe for achieving them; and (b) nature and scope o f services and identity o f service providers. A case manager will coordinate the implementation and monitoring against goals/outcomes set for the child. The services wil l also include psycho-social care, health, and legal services, etc.

Coordinating referral services. Co-location o f variety o f services will be the key element o f one-stop shop service delivery that will enable the child to obtain al l needed services in the same locality, if not at a single location. The case manager will facilitate coordination o f services. These case managers will serve as a vital link between the child and the service points for the child. Staff from different programs and agencies will also share accountability and joint responsibility for the success o f the plan.

Developing a child-centered monitoring and beneficiary tracking system: The focus will be on developing an information system that would include data on street children, referral programs to help track the progress o f development plans o f respective street children through the system. This could include: (a) developing single information system that will connect with systems in the relevant referral services to interface with each other; (b) facilitating reporting o f all required beneficiary data while protecting confidentiality; and (c) developing performance and mediating indicators linked with the relevant programs that will directly relate to changes in the situation o f the family and/ the individual and non-performance o f the programs.

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MOSW INPUTS 1. Legal Charter 2. Regulatory

Framework 3. Financial Resources 4. Supervision 5. In-kind suumrt

recreational serv ices 3. Coordinating access to

4. Monitoring, recording and . . . . . . . . . . . . . . . . . . . . . . . . . tracking progress

PROJECT SUPPORT

1. Standards o f care 2. Operational tools and manuals for case

management, service delivery, program management and integration Training and capacity building in case management, referral coordination, standards compliance, monitoring and reporting

4. M I S Information system 5. Financing

3.

1. Schools 2. Job Placement

The guidelines to implement the above process will be elaborated in the operational manual, which will also include approval and selection criteria for NGOs, expected outputs-outcomes, grant limits, applicable financial management and procurement procedures, roles o f various national and local committees, monitoring and evaluation planning and reporting.

The eventual outcome would be the integration o f children into schools, job placement and/or families, strictly following the integration guidelines to ensure sustainable and effective mainstreaming to prevent further danger or risk to the child.

+ Sub-component 2(c): Support DSS to develop and pilot alternative approaches to institutional care for orphans in line with the WCRC. This sub-component would help the DSS design alternative models (e.g., foster care) for taking care o f children without parents, some o f whom are now in orphanages, and others who do not have a home at all. Based on the model developed, guidelines would be prepared for operationalizing and piloting initiatives to test and improve the model over time. NGOs would be contracted as service providers to pi lot the new interventions and service delivery models. Award o f contracts under this sub-component would be based on the “child-centeredness” and sustainability o f the proposals.

+ Sub-component 2(d): Project management: This sub-component would support day-to-day management and operational costs o f the project for effective project implementation, ensuring adherence to Bank fiduciary requirements, particularly with respect to procurement, and financial management.

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Component 3: INSTITUTIONAL STRENGTHENING OF MINISTRY OF SOCIAL WELFARE (MOSW) AND DEPARTMENT OF SOCIAL SERVICES (DSS) (us$3.5 MILLION):

The objective o f this component i s to support the M O S W and the DSS to gradually shift from a reactive to a proactive and preventive social service approach. To this end, technical assistance, training, and goods and equipment would be provided under the project to improve policies, help adjust the institutional structures to this approach, and make existing programs more efficient and effective. The MoSW in collaboration with DSS has laid out i t s strategic directions for the next 5 years in a Policy Letter (on files). Based on the Policy Letter, the M O S W and DSS have jointly developed an Institutional Development Plan and identified four selected key strategic areas to be support by the project. These are:

Strengthen MOSW’s capacity for policy formulation and revision of associated legal pamework: The project would support the MOSW in strengthening i t s policies and revise the respective legislations for persons with disabilities, child protection and other socially disadvantaged populations as needed. Building on international examples and experience, as well as the existing policies and legislations, the project would: (i) provide technical assistance in policy development and coordination including a wide range o f stakeholders and experts; and (ii) finance training for policy development and coordination.

Support the institutional development of DSS: This component would support DSS in streamlining the organizational structure and procedures for enhancing i t s outreach and impact o f i t s many programs. The project would provide technical assistance, training/workshops and exposure to international experience to DSS and relevant stakeholders for (i) developing more streamlined services and programs, (ii) adjusting the DSS organizational structure and procedures accordingly; and (iii) supporting the implementation o f the institutional changes.

Strengthen training and capacity building for proactive social work: The project would support DSS in enhancing the capacity o f i t s personnel and other service providers for providing proactive social services to i t s target beneficiaries. The project would: (i) provide technical assistance in strengthening the National Centre for Training and Research on Social Development (NCTRSD) and six NGO-run Division Training and Resource Centres (DRTCs); (ii) support in developing training and learning materials for proactive social work and related subjects; and (iii) finance training for specialized services.

Strengthen program planning, implementation, monitoring and evaluation: This component would support DSS in improving the overall monitoring o f i t s services and programs, as well as the implementation and evaluation o f selected programs establishing clear objectives, implementation mechanisms, and indictors for measuring their impact. I t would also support DSS in institutionalizing mechanism for effective planning and implementation o f i t s programs for quality service delivery by incorporating proactive and preventive measures in programs for reducing vulnerabilities.

The project would provide technical assistance and training for (i) improving the DSS systems for monitoring o f programs and services towards an integrated MIS including capacity building o f central and local DSS staff for stronger monitoring and evaluation o f services and programs; (ii) evaluating the operational effectiveness and outcomes o f selected programs, (iii) strengthening the implementation o f these programs through clear implementation guidelines, effective mechanisms

40

for monitoring and accountability, and further evaluation, and (iv) developing a website for DSS to provide timely and accurate information to the public on services and programs.

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Annex 5: Project Costs BANGLADESH: Disability and Children-at-Risk Project

Table 5.1: Total Costs Summary

Project Cost By Component andor Act iv i ty Local Foreign Total US$ mi l l ion U S $ mi l l ion U S $ mi l l ion

1. Expanding Disability Services 4,320.40 17,28 1.60 21,602.00 2. Children-at-Risk Services 1,827.72 7,3 10.88 9,138.60 3. Institutional Development and Capacity 549.60 2,198.40 2,748.00 Building Total Baseline Cost 6,697.72 26,790.88 33,488.60

Contingencies 302.28 1,209.12 1,5 11.40 Total Project Costs 7,000.00 28,000.00 35,000.00

Table 5.2: Component 1: Detailed Cost Table

Component 1: Expanding Disability Services 5 Year Project Costs

2008 - 2013

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Component 2: Children At-Risk Services


Component 3: Institutional Development and Capacity Building

. INVESTMENT COSTS

Institutional development workshops Group Study Tour (International) Group Study Tour (Asia) B. M&E and MIS C. Training & Capacity Building

'otal Investment Costs t. INCREMENTAL OPERATING COSTS

A. Project Implementation Team B. Goods and Equipment (1 vehicle and office equipment) C. Operation and Maintenance Costs

'otal Incremental Operating Costs ubtotal (Investment t Incremental Operating Costs) [I. CONTIGENCIES

'OTAL I

5-Year Project Costs

Total Cost

465,000 180,000 125,000 35,000 50,000 75,000

500,000 1,210,000 2,175,000

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Annex 6: Implementation Arrangements


The project will be implemented by Jatiyo Protibondhi Unnayan Foundation (JPUF) and MOSW- Department o f Social Services (DSS) under separate implementation arrangements for their respective components. JPUF will be responsible for Component I on Disability Services and MOSW-DSS will be responsible for Component 2 on Children-At-Risk and Component 3 on Institutional Development. Separate project implementation units, with separate special accounts will be established in MOSW-DSS and JPUF. Both PIUs will have appropriate financial management and procurement system, as well as project monitoring and evaluation system.

Implementation Arrangements by Component

ComDonent 1: Disabilitv Services

JPUF will be responsible for the implementation o f the disability component. JPUF has been reinstituted as an autonomous entity outside the regular government structure, governed by the Board o f Directors headed by the chairman o f JPUF and composed o f representatives from relevant line ministries, NGOs and community groups. The autonomy will enable JPUF to have the flexibility necessary to respond quickly and efficiently to requests from the disability community, providing funding and technical assistance for institutional strengthening o f communities, NGOs, and grassroots organizations serving people with disabilities, thereby promoting self-reliance among disability community as well as stimulating community organization and participation o f people with disabilities.

Project Management Structure

The Foundation will be headed by the Managing Director and comprise Directors for Program Management, Finance and Administration, and Monitoring and Evaluation, al l supported by technical specialists and other support staff. A Project Unit wil l be established for supporting the implementation o f the disability component activities and will be equipped with adequate staffing to cover financial management, procurement, administrative and monitoring functions. The Managing Director will serve as the Project Director to oversee day-to-day coordination and implementation o f the overall project activities. Three operational directors will report to the MD, while a special operations evaluation unit wil l report directly to the Board. JPUF will start with one central office but may decide to open branch offices as the operational needs will require.

Implementation Arrangements

JPUF wil l implement i t s activities through subprojects generated by the disability community relevant to their issues and needs. The subprojects will be selected based on the eligibility criteria including size and simplicity o f the proposed subproject, capacity o f the requesting entity to undertake the subproject, relevance o f the subproject to needs o f people with disabilities, and relative poverty o f the disability community. The subproject financing would be in grant form and could cover technical assistance, c iv i l works, goods and equipment and in some cases, consumables for the start-up activities.

The JPUF has prepared a very comprehensive operational manual to guide day-to-day operations o f the foundation and implementation o f the sub-projects. I t includes details on a l l aspects o f the operation including selection criteria for subprojects, selection criteria for implementing partners, role o f managing,

44

participating and implementing partners, role o f central and regional offices, financial and procurement processes and methods, contract management guidelines, and monitoring and evaluation.

In summary, for every subproject there will be a contract that will be signed with the parties who will be responsible for implementing the activities. The contract will include activity details, the contribution o f each entity, the time frame o f implementation, the budget o f the subproject, the disbursement schedule, and the milestones based on which payment tranches will be released. Before releasing any tranche, the JPUF will verify that the milestones in the contract have been achieved. Independent and trained consultants would be hired to conduct verification visits to ensure the accuracy o f the sub-project progress reports and implementation o f the activities in the contract agreement.

Component 2: Children-at-Risk Services

Project Management Structure

MOSW-DSS will be responsible for the implementation o f Component 2 through the PCAR office in the DSS, which will serve as the Project Implementation Unit (PIU). It will comprise a Project Coordinator, Financial Management and Procurement Specialist, Accountants, Monitoring and Evaluation Officers, Division Coordinators, Technical Specialists, administrative and support staff. MOSW-DSS will appoint the NPD on full time basis from the MOSW-DSS.

The PIU will be advised, guided and supervised by three committees as follows: The National Steering Committee (NSC) will serve as the advisory body; the Project Implementation Committee (PIC) will oversee the management and monitoring o f the project; and the Local Project Implementation Committee (LPIC) will be responsible for the effective implementation o f the planned program, coordination among the stakeholders and maintaining links with the PIC at the national level.

Implementation Arrangements

The PCAR unit will be responsible for the contracting, monitoring and supervision o f technical assistance, training, procurement o f goods and equipment as well as the contracting o f NGOs as service providers for children at risk. The NGOs will be selected through a competitive bidding process and approved by the NGO selection committee. The NGO selection committee will be formed with equal representation from the Government and UNICEF (parallelfinancier of PCAR project). The representation from other development and UN agencies in the NGO selection committee i s being considered to improve the quality and transparency o f the selection process.

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n

L

L

I

* * * * * * * * *

Services wil l be delivered through NGOs in 11 locations in 6 divisional cities. Fo r each divisional city, a contract will be prepared specifying: (i) l i s t o f activities (ii) targets and expected outputs; (iii) implementing entities and their roles and responsibilities; (iv) timeframe; (v) milestones for payment disbursement; and (v) costs. The activities, targets and outputs for each div is ion cities will be determined based on the annual work plans prepared at the beginning o f the project but they will be flexible to accommodate the evolv ing needs o f the children at risk. The local MOSW-DSS office wil l actively participate in the monitor ing and supervision o f contracts at the local level and provide technical and logistical support t o partner agencies, as needed.

The payment to the NGO (service provider) will be performance-based against the achievements o f the milestones as stipulated in the contract (service agreement). Independent and trained consultants would be hired to conduct operational audits o f service delivery on a sample basis. In addition, beneficiaries wou ld be interviewed regularly t o ensure the quality o f service delivery and achievement o f the agreed targets and milestones in the contract (service agreement).

ComDonent 3: Institutional Strenethening of MOSW and DSS

This component will be implemented under direct supervision o f the Director General - DSS, and wil l have a separate steering committee headed by the Secretary o f the Ministry. The DG will be responsible for giving guidance t o the implementation team and may appoint an Institutional Development Off icer at the Director level t o be in charge o f day to implementation. This officer may be supported by an Institutional Development Specialist financed under the project. The financial management and procurement processes for this component will be managed by the same PCAR project team managing Component 2.

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Annex 7: Financial Management and Disbursement Arrangements

Bangladesh: Disability and Children-at-Risk Project

A financial management assessment was carried out to identify the financial management environment and capacity o f the country and the entities that will implement the project. The objective was to assess the financial management risks underlying the project, the capacity o f the implementing entities, and the project financial management arrangements that would need to be in place to meet the fiduciary requirements o f the proposed project.

Country Issues: Over the last several years, GOB has been addressing key weaknesses in financial management identified in the Country Financial Accountability Assessment (CFAA), through a series o f reform programs supported by DFID, WB, and a few other development partners. However, due to the fragmented approach to Public Financial Management (PFM) reforms, there has been uneven improvement on the P F M system across the government agencies and institutions. A joint WB, DFID, and GOB review o f Institutional Arrangements for Public Expenditure, Financial Management, and Procurement completed in June 2005 revealed that Bangladesh’s public expenditure institutions need to be significantly strengthened. The review that was carried out under Public Expenditure and Financial Accountability (PEFA) Performance Measurement Framework also confirmed that links in the public financial accountability chain in Bangladesh continue to be weak. Internal and external controls remain weak as reflected in the lack o f accounting information in line ministries, delays in the publication o f audit reports, unsatisfactory quality o f the external audit function, and ineffective Parliamentary oversight o f the whole budget process.

Although GOB has taken several steps to improve i t s public financial management and procurement systems and the overall trajectory o f change has been positive, the pace o f progress has been slower than anticipated. The recently-approved GOB document on “PFM Vision & Medium Term Roll ing Action Plan” develops time-bound reform actions and remedial measures designed to improve financial management and accountability. Donors have recently agreed with the government to provide implementation support to the P F M reforms through a Multi Donor Trust Fund to be administered by the World Bank. Efforts are also underway to tailor and apply the P F M measurement framework at the sector level. Reform actions proposed include measures aimed at strengthening line ministry’s financial management function. The Ministry o f Social Welfare (MoSW) and i t s attached department the Department o f Social Services (DSS) would be beneficiaries o f such strengthening arrangements.

The Report on Observance o f Standards and Codes (ROSC) o f Accounting and Auditing in the corporate sector completed by the World Bank in 2004 highlighted significant weaknesses in the enforcement o f high quality financial reporting and auditing standards. The ROSC report outlined the strategy to improve the statutory framework, strengthening enforcement mechanisms, upgrading professional education and training, and enhancing capacity o f regulatory and professional bodies. The Government, aided by the World Bank, supported the Economic Management Technical Assistance Project which i s implementing several initiatives including: i) introducing a Financial Reporting Act, and ii) designing a Financial Reporting Council aimed at improving overall accounting and auditing practices in corporate sector. Upon full implementation o f these activities, the expected improvements will also strengthen accounting and auditing practices and the accountability environment o f not-for-profit social services organizations such as Jatiyo Protibondhi Unnayan Foundation (JPUF).

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Despite the weak overall country financial management environment, fiduciary risk in donor-funded projects has been greatly minimized due to the government policy o f stipulating additional implementation arrangements in those projects.

Implementing Agencies: The Project will be implemented by two entities: i) Jatiyo Protibondhi Unnayan Foundation (JPUF), and ii) the Department o f Social Services (DSS) under MoSW, under separate implementation arrangements for their respective parts o f the project.

Jatiyo Protibondhi Unnayan Foundation (JPUF)

JPUF was established under the Societies Act as an autonomous not-for-profit organization outside the conventional government structure and governed by the Board o f Directors which i s composed o f representatives from relevant line ministries, NGOs, and community groups. JPUF aims to provide funding and technical assistance for institutional strengthening o f NGOs, community groups, and the private sector serving people with disabilities. JPUF operations are financed by interest earned on a capital seed money fund from the government as well as grants and donations received. Currently, the JPUF’s executive functions are performed by key officials on deputation fi-om the government headed by a Joint Secretary o f MoSW working as the Acting Managing Director. The JPUF i s undergoing a modernization process following a restructuring plan and it will soon recruit a Managing Director and other executives from the market.

Prior to the Project Preparation Facility, JPUF did not have a financial management organization in place. The accountant that was assigned to look after the accounting functions did not perform adequately due to the lack o f expertise. Books and accounts were almost non-existent and records were very poorly maintained. Financial statements were never prepared and until recently; JPUF had never been audited. Recently, a Financial Management Consultant (FMC) has been recruited under the PPF and the FMC has started working on FM practices o f the Foundation in addition to the activities prescribed under the PPF. An independent auditor has been appointed by the Board for the first time to complete an audit o f financial transactions since i t s inception. Under the restructuring program, a Director, Finance will be recruited to perform the FM fimctions o f the foundations professionally with the help o f other FM staff to be recruited. It has been agreed that the F M C will remain on board until such time as the Director, Finance i s appointed and takes over the FM leadership o f both the foundation and the project.

Risk Analysis and Mitigation: Before mitigation, the overall FM risk for JPUF i s rated as “Substantial”. This i s mainly due to: non-existent FM capacity o f JPUF, no experience o f implementing a Bank-funded project, and no exposure to the Bank’s and the GOB’S financial management and disbursement procedures. Considering JPUF’s commitment at the Board and top executive level and upon the agreement reached on identified mitigating measures with a dated FM action Plan, the residual FM risk for JPUF i s assessed as “Modest”.

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an impact in short term.

process following a restructuring plan under which qualified F M staff wil l be in place against an already approved F M Organization.

Project Level Control Risk Budget

lack o f requisite professional skills and participatory and coordinated approach might not produce an adequate and realistic budget lengthy approving tiers- JPUF Project Team, JPUF Board, MOSW, Planning Commission, ERD with no service standards would lead to wastage o f project input on follow up and might impact on quality o f budget prepared hurriedly considering the lead time required in approval process.

Accounting Absence of a Computerized Accounting System (CAS) might affect producing projectjnancial information 's accuracy and timeliness.

M

S

S

The F M Consultant recruited under the PPF will be engaged on the project until the Director, Finance i s appointed in JPUF. Such qualified person wil l prepare the project budget in consultation with the other sections o f JPUF under a structured budget preparation process.

JPUF and MOSW wil l set service standards exploring ways o f improving timeliness in scrutinizing and approving process.

The provision for a CAS needs to be made in the DPP. The F M Consultant has the requisite ski l ls to assist early procurement and implementation o f a system and to operate it and also use an Excel-based system until a computerized system i s functional.

L

M

L To be included in the DPP and the initial Procurement Plan.

The TOR for the Director, Finance to include the requisite skills.

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Internal Control

Weakness in internal control and lack of or not following operational manual might not prevent improper use of funds in sub-grants and other categories.

Funds flow Implementation may suffer due to delay in obtaining MOF’s authorization to use Designated Account.

Financial Reporting

Reporting project expenditures by project components as part o f IUFRs may be constrained until an appropriately programmed computerized accounting system (CAS) i s functional.

Auditing The audit report may not capture accountability and corruption issues adequately.

Inadequate responses o f the JPUF management to the audit issues might reduce the audit impact.

Overall FM Risk Rating

H

M

S

S

S

An operational manual i s in finalization stage putting together operational guidelines for all project functions .Eligibility criteria for sub grants w i l l be strictly followed -a disbursement condition has been set to enforce it. The audit TOR w i l l require the auditor to include efficacy o f internal control arrangement in management letter.

F M staff o f JPUF takes due diligence in preparation and timely submission o f Authorization Requests, MOSW makes quick endorsement and follows up for MOF’s accelerated action.

Format and contents o f IUFRs and DPP heads o f reporting w i l l be harmonized. A CAS w i l l be procured, implemented, and made functional early on.

The audit TOR wi l l focus on testing controls, preventing corruption, and detecting transactions with potential corrupt practices.

JPUF board w i l l oversee quick resolution o f audit issues. Remedies wi l l be applied systematically.

S

L

M

M

M

B y Negotiations

To be monitored through initial procurement plan and supervisions o f implementation.

B y Negotiations

Department of Social Services (DSS)

This i s a department o f the MoSW headed by a Director General that i s mandated to implement the government’s policies and programs o n social services. DSS has been implementing several GOB -

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and donor-hnded projects. Like most o f the government departments DSS has no financial management organization. An Accounts Officer, assisted by a few staff, looks after limited financial management and the related coordination hnctions related to the directorate’s recurrent budget. The DSS has been providing financial management support to project implementation through project- specific FM staf f under the Project Implementation Units, by hiring staff under the project. The DSS has been implementing the UNICEF-funded Protection o f Children at Risk (PCAR) project through a dedicated unit. The PCAR unit, to be further strengthened with specialists including a full-time Project Coordinator, will implement this project under the overall guidance o f the Director General, D S S acting as the National Project Director. A Financial Management Specialist and an Accountant wil l also be recruited in the PCAR to discharge the FM functions o f this project.

Risk Analysis and Mitigation: Before mitigation, the overall FM risk o f M o S W DSS i s rated as “Substantial” for the entity implementing components 2 and 3 o f the project. This i s mainly due to: non-existent FM capacity o f DSS, no experience o f implementing a Bank-funded project, and no exposure to the Bank’s and the GOB’s financial management and disbursement procedures. Considering DSS’s commitment at the top level and upon the agreement reached on identified mitigating measures with a dated FM action Plan, the residual FM risk o f DSS i s assessed as “Modest”.

MoSW DSS Risk

Inherent Risk Country Level PFM institutions and system lack capacity for detecting financial irregularities in a timely manner, including taking corrective actions. Entity Level The entity does not have the FM organization or capacity to oversee or monitor the project FM performance.

Initial FM Risk

H

H

After

H Various reforms on country level PFM are ongoing and planned, but unlikely to have any impact in the short term ,

S The capacity would remain weak until L ine Ministr ies (and Departments) financial management organization, functions and reporting l ines are strengthened under the PFM reform program to be implemented through a Multi- Donor Trust Fund.

Condition

Not Applicable- The project does have the leverage to induce changes in GOB’s organizational structure.

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Control Risk- Proiect Level

Budget - lack of requisite professional ski l ls and participatory and coordinated approach might not produce an adequate and realistic budget lengthy approving tiers- PCAR, DSS, MOSW, Planning Commission, ERD with no service standards would lead to wastage o f project input on follow up and might impact on quality o f budget prepared hurriedly considering the lead time required in approval process.

Accounting Absence of a computerized accounting system (CAS) might affect producing project financial information 's accuracy and timeliness.

Internal Control

Weakness in internal control and lack of or not following operational manual might not prevent improper use of funds in sub-grants, foreign training and in other categories.

Funds flow

Implementation may suffer due to delay

S

S

H

M

An F M Specialist that has been provisioned in the DPP will be recruited by project effectiveness. Such qualified person wil l prepare the project budget in consultation with the other sections of PCAR under a structured budget preparation process.

DSS and MOSW wil l set service standards for their applicable unitdwings and wil l explore ways o f improving timeliness in scrutinizing and approving process within and beyond their entity boundaries.

The provision for a CAS needs to be made in the DPP. The F M Specialist's TOR will set the requisite ski l ls to assist early procurement and implementation o f a system and to operate i t and also use an MS Excel based system until a computerized system i s functional. An operational manual i s in finalization stage putting together operational guidelines for all project functions .Eligibility criteria for sub grants and the process for study tours wil l be strictly followed - disbursement conditions have been set to enforce it. The Statement of Audit Needs (SAN) wil l require the auditor to include efficacy o f internal control arrangement in management letter.

F M staff o f PCAR takes due

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M

L

S

L

Minutes of Negotiations

To be included in the DPP and the initial Procurement Plan.

The TOR for the F M Specialist agreed by Negotiations.

in obtaining MOFs authorization to use Designated Account.

Financial Reporting

Reporting project expenditures by project components as part of IUFRs may be constrained until an appropriately programmed computerized accounting system (CAS) i s functional.

Auditing The audit report may not capture accountability and corruption issues adequately.

Inadequate responses o f the DSHE and MOE to the audit issues might reduce the audit impact.

Overall F M Risk Rating S

diligence in preparation and timely submission o f Authorization Requests, MOSW makes quick endorsement and follows up for MOF’s accelerated action.

Format and contents o f IUFRs and DPP heads o f reporting wil l be harmonized. A CAS wil l be procured, Implemented, and made functional early on.

The Statement of Audit Needs wil l be agreed with the CAG to include focus on testing controls, preventing corruption, and detecting transactions with potential corrupt practices.

DSS and MOSW wil l oversee quick resolution o f audit issues. Remedies wil l be applied systematically. Consequences o f not responding to audit issues on time wil l be disseminated at Project Launch Workshop.

M

M

M

By Negotiations

To be monitored through initial procurement plan and supervision of implementation.

By Negotiations

Project Financial Management: The project financial management arrangements, as assessed and agreed, together with the implementation o f the actions in the action plan would be adequate to meet the project financial management needs complying the requirements o f Bank’s OPBP 10.02. Implementations o f the actions remaining incomplete prior to negotiations will be enforced through negotiations conditions. The status as assessed and agreed arrangements on various aspects o f financial managements are stated below.

Staffing: The borrower’s ability to successfully implement a project fulfilling the fiduciary requirements o f the various stakeholders i s largely affected by the adequacy and quality o f the financial management system used in the project implementation and continued assignment o f FM staff with adequate qualifications and appropriate experience.

JPUF: I t has been agreed that the Director, Finance will be appointed soon after the appointment o f the Managing Director. The Terms o f Reference for the Director, Finance and other FM staff have

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been shared with the Bank and were found to be adequate. A Financial Management Consultant (FMC) with requisite qualifications and adequate experience in financial management systems and the procedures o f the Bank and the GOB has recently been appointed by the JPUF to discharge the FM responsibilities including operation o f Designated Account (DA) for the PPF Advance approved for the preparation o f this project. The FMC will train the Accountant and assist in establishing its accounting system and maintaining the books and accounts o f the foundation. The FMC will continue to work throughout the duration o f the PPF and his services will be further extended until the Director, Finance o f the Foundation i s appointed and adequate FM capacity i s attained. The FMC will report to the MD who will work as the Project Director o f Part A o f the project.

DSS: The DSS will be responsible for the implementation o f Parts B and C o f the project, through the existing PCAR office in the DSS and will replicate the current implementation arrangements. The PCAR office will serve as the PIU headed by a full-time Project Coordinator under the overall guidance o f the Director General, D S S acting as the National Project Director. An FM Specialist (FMS) and an Accountant will be appointed from the market using the project fund. The TORS for the positions have been agreed with the Bank. I t has been agreed that the FMS will be on board by project effectiveness. The appointed staff will be trained on the Bank’s financial management and disbursement requirements.

Budgeting: Project budgets will be prepared by the two Project Directors with the assistance o f the project FM Staff on the basis o f the approved procurement plan and implementation plan. The JPUF and DSS will submit annual original and revised budgets to the planning wing o f the MoSW to obtain the Planning Commission’s approval under Annual Development Plan (ADP) and Revised ADP. The PDs will undertake due diligence in preparing realistic budgets so that neither the project implementation i s constrained by lack o f funds due to inadequate budgetary provisions, nor the project i s questioned for failure to achieve implementation progress commensurate to budgetary provisions. Actual expenditures for the project will be compared with the budgets each quarter; budget variances and their rationale will be discussed in the Interim Financial Reports (IFRs).

MOF will monitor the budget implementation through issuance o f authorizations to use the Designated Account and quarterly release o f GOB funds. Any required deviation from the budget will be met by obtaining approval through the Revised Annual Development Plan.

Funds Flow and Designated Account: IDA’s portion o f project funds will mainly flow through two Designated Accounts (DA) opened in commercial bank(s) for JPUF and DSS as Convertible Taka Accounts. Project funds will also flow through direct payments and issuance o f special commitments as and when required. The authorized limit for the DAs will be US$1,000,000 equivalent for JPUF and US$500,000 for DSS; minimum application size for direct payments will be 20% o f outstanding amounts o f DAs. N o government counterpart funds will be required as IDA will be financing 100 percent under a l l categories including taxes.

Disbursement: IDA’s share o f the project cost (I 00 percent o f a l l project costs including taxes) will be disbursed under transaction based on traditional WB disbursement procedures initially. IDA will require full documentation where contracts for (i) goods exceed US$200,000 equivalent, (ii) works exceed US$500,000, (iii) consulting firms exceed US$lOO,OOO, and (iv) individual consultants exceed US$50,000. Expenditures below the above threshold will be claimed through Statement o f Expenditures (SOEs). After the mid-term review, disbursements may be switched over on the basis o f Interim Un-audited Financial Reports (IFRs) if the borrower so prefers and IDA finds that project

55

financial management system i s working satisfactorily and i s generating timely and reliable full set of IFRs that are acceptable to IDA.

(1) Goods, consultants, services, training, studies and workshop

a. Part A (Disability)

b. Part B & C (Children Services & Institutional Dev)

(2) Sub grants for sub projects

The following table shows the share o f financing o f IDA including taxes for each disbursement category:

1,790,000

3,054,000 100%

Category


b. Part B & C (Children Services & Institutional Dev)

I I Percentage o f

18,000,000

7,250,000 100%

I Expenditures to be Financed I Amount (US%)


I I (inclusive sftaxes)

~ ~~ ~

1,342,000

TOTAL 35,000,000

(3) Incremental operating costs I I

b. Part B & C (Children Services & Institutional Dev) I 1,507,600 I

(4) Refund of Project Preparation Advance

(Amount payable pursuant to

Section 2.07 o f the General Conditions)

545,000

(5) Unallocated I 1,511,400 I

N o withdrawals would be allowed on sub grants under Part A and Part B o f the project unless such sub-grants met the eligibility criteria and evaluation procedures set in the respective operational manual. In addition, no withdrawals would be allowed for expenditures under foreign study tour, exchange, or training unless each such activity i s consistent with training plans prepared by JPUF and DSS and which shall have been approved by IDA.

Accounting and Reporting: The project wil l fol low GOB Project Accounting Manual in maintaining books o f accounts and in complying with monthly, quarterly and annual financial reporting requirements o f various government agencies as well as the Bank. Until a computerized Accounting System i s introduced, excel-based accounting tools will be used in the upcoming project, using GOB code o f accounts and project components. Manual Registers will be used to adequately record acquisition and use o f al l project fixed assets. Physical Inventory at the end o f each financial year wil l ensure the updated status on usable condition and safe custody o f the assets. IDA, through an IDF Grant, i s supporting the GOB to computerize i t s Project Accounting Manual with the objective to provide universal software to all the development projects. This project’s accounting system will promptly adopt such universal system when it i s ready. Both JPUF and DSS will provide

56

Interim Un-audited Financial Reports (IUFRs) on a quarterly basis, within 30 days o f each quarter, showing project progress on al l components on a user friendly format. Preliminary discussions on contents and format o f IUFRs took place during appraisal, and these will be finalized during negotiations.

Implementing Agency

JPUF

D S S

Internal Audit: In the absence o f in-house capacity for Internal Audit in JPUF and DSS, annual internal audits for this project will be outsourced and funded by project funds on the basis o f TORS to be agreed with the Bank.

Audit Type Auditor

Entity Financial Statement reflecting project receipt and use o f project funds

Audit o f Project’s Annual Financial Statements Directorate under

Private Auditor

Foreign Aided Project Audit

Comptroller & Auditor General

Deadline 1 December

December

Supervision Plan: The init ial supervision will focus on compliance with al l agreed actions, terms, and conditions including Project FM staff being assigned and on board, identifying any FM or disbursement issues in project implementation and agreeing on redressing measures. JPUF and DSS’s readiness for access to project funds, use o f appropriate accounting system for Project financial management, production o f first IFRs on time, and use o f internal controls on FM functions will be closely reviewed. In addition, supervision efforts will focus on sampling expenditures below prior-review thresholds, reviewing payment processes against the defined control framework, and monitoring the progress o f institutional preparedness and strengthening. The necessary actions are on track and are expected to be completed prior to negotiations.

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Agreed Financial Management Action Plan Action

Extend the term o f appointment o f the FMC appointed under the PPF to continue functioning in JPUF and on project financial management until a Director, Finance i s appointed and takes over the role Complete all required recruitment processes to identify an FM Specialist in the D S S (PCAR) with the TORS agreed by the Bank so as to have the FMS on board from the date o f effectiveness o f the project

Responsibility Completion Date Conditions JPUF Board B y Negotiations Incorporated in

minutes o f negotiations

DSS The candidate Incorporated in identified by minutes o f negotiations negotiations

58

Annex 8: Procurement Arrangements

Bangladesh: Disability and Children-at-Risk Project

Procurement Environment and Reform Actions: The Country Procurement Assessment Report (CPAR-2002) identified inadequate public procurement practices as a major impediment affecting project implementation in Bangladesh. Following the CPAR recommendations, the government: (i) implemented a Public Procurement Reform Project (PPAP), under which the government established a Central Procurement Technical Unit (CPTU) within the Implementation Monitoring and Evaluation Division (IMED) o f the Ministry o f Planning, with staffing funded from i t s own resources; (ii) issued Public Procurement Regulations 2003, Public Procurement Ac t 2006 (PPA), and Public Procurement Rules 2008 (PPR); (iii) developed a critical mass o f 25 national trainers and trained 1800 staff; and (iv) established a fully functional procurement website with a procurement management information system. The law and the rules contain most international good procurement practices.

The new rules are being implemented by all public sector entities with varying degrees o f success. Although the landscape o f procurement has been reshaped in the last several years due to the procurement reform with harmonized procedures, there are s t i l l a number o f potential challenges concerning implementation o f the acthules in cross-cutting governance, institutional, and implementation issues. These include: (i) inadequate enforcement o f rules, (ii) inadequate adherence to the provision o f streamlined procurement approval process, (iii) delays in contract award for high value contracts, (iv) ineffective contract administration, and (v) some allegations o f fraud and corruption, and polit ical interference. To sustain the reform effort and address these challenges, the government has, with technical assistance from the Bank, started a follow-on Public Procurement Reform Project I1 (effective September, 2007). It focuses on, among others, implementation and monitoring o f the PPAI PPR at key sectoral agencies, monitoring and management o f procurement reforms, introduction o f e-GP and behavioral change and social accountability.

General

The total value o f the project i s US$35.0 mill ion. This amount includes procurement o f goods o f about $0.45 mi l l ion and consulting services and non-consulting services o f about US$12.28 mill ion.

Procurement under the project would be carried out in accordance with ‘World Bank Guidelines: Procurement under IBRD Loans and IDA Credits o f May 2004, Revised October 2006 (Procurement Guidelines)’ and ‘Guidelines for Selection and Employment o f Consultants by Wor ld Bank Borrowers o f May 2004, Revised October 2006 (Consultant Guidelines).’ Within the overall context o f Bank guidelines, local procurement o f goods, works, and services (for which the shortlist i s entirely comprised o f national consultants) will fol low the Government’s Public Procurement Act, 2006 (goods: < US$200,000 per contract, works: < US$500,000 per contract, and consulting services- firms: <US$lOO,OOO per contract and individual consultant- < US$50,000 per contract), and in case o f any conflicts between the two procedures or ambiguous/confusing interpretation, Bank Guidelines will prevail.

All expected major procurement o f goods and consultants’ services, as applicable, will be announced in the General Procurement Notice (GPN), to be published in the dgMarket and United Nations Development Business (UNDB), and will be updated annually.

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Project Components and Responsibilities: The project has three components: (1) Disability Services ($22 million), (2) Children at Risk Services ($9.5 million), and ( 3 ) Institutional Development ($3.5 million). The responsible agencies for project implementation are for Component 1, the Jatiyo Protibondhi Unnayan Foundation; and for Components 2 and 3 , the Department o f Social Services under the Ministry o f Social Welfare (MOSW) assisted by the Protection o f Children-at-Risk project unit.

Procurement Capacity and Risk Assessment: A broad and general procurement capacity assessment with respect to the project has been carried out which reflects that, although the project has very small value procurement involving goods and services, the two IAs have no actual experience in implementing procurement in IDA-financed project^.^' Given the limited capacity o f the IAs, and as a risk mitigating measure, procurement consultants will be required to assist both the IAs in handling procurement activities under the project. The procurement consultants are expected to be on board well in advance o f the start o f procurement activities. I t i s mandatory that the procurement consultants will be members o f the Bid Evaluation Committees. In addition, each agency will designate one focal person for procurement, and there will be specific provision for training in PPA/ PPR and Bank's Guidelines upfront. Also, a procurement risk mitigation framework, as detailed in the following paragraphs, has been agreed with the IAs. Included in the framework are: (i) the disclosure o f information, (ii) mechanisms to address complaints, and (iii) regular post reviews. The IAs will ensure that the Operational Manuals include the salient provisions o f the procurement arrangement o f the project. All procurement activities will be subject to six- monthly reviews by the IAs as well as by IDA. I t i s expected that with the implementation o f the agreed risk mitigation framework, together with the above arrangements, the residual procurement risk will be 'moderate.'

Measures for Improving Governance in Procurement

The following key arrangements have been put in place to mitigate procurement associated risks:

a.

b.

c.

d.

e.

f.

g.

provision o f a procurement consultant in each IA;

designating one focal procurement person for each IA;

provision for making the procurement consultant mandatory members in the bid evaluation committees;

providing upfront procurement training before the start o f the project;

introducing a procurement risk mitigation framework with a set o f performance indicators to monitor procurement performance on a quarterly basis;

conducting regular post reviews (six monthly) on a sample basis (I 5% o f contract);

having a mechanism for addressing complaints following IDA Guidelines for ICB procurement, and PPA for NCB procurement.

Detailed measures to improve governance within the framework o f IDA procurement guidelines, the PPA 2006, and the PPR 2008, with a set o f monitoring indicators designed specifically for the project, have been agreed for implementation well ahead o f starting procurement activities. The IAs will prepare and share with the Bank, quarterly reports addressing, but not limited to, the following:

27 The DSS wi l l be assisted by the PCAR unit, which has some experience in procurement o f services using UN procurement methods. With the strengthening o f the team with a procurement specialist and training in IDAPPA procurement procedures, capacity wi l l be assessed as sufficient.

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Complaint Handling System: A credible system o f handling complaints shall be put in place in the IAs and the Ministry concerned, Reports will include information regarding details o f al l complaints and disclosures o f how they were redressed.

Disclosure of Information and Procurement Website: Information relating to bidding and procurement above specified thresholds, if any and as per the PPA, are to be published in the IAs website(s) and on that o f the CPTU.

Timeliness of Bid Evaluation and Contract Award: Information on bid evaluations and contract awards within init ial bid/offer validity.

Corrupt Practices by bidders: Information on corrupt practices undertaken by bidders, and actions taken by the IAs.

Corrupt Practices by I A staff and/or Specialists: Information on corrupt practices undertaken by IA staff and/or Specialists, and actions taken by the IAs.

Delayed Performance by Contracted Suppliers/Consultants: Information on milestones provided in the contracts, delay in performance by the contracted suppliers/consultants, and actions taken by the IAs.

In addition, the following additional steps, which have been agreed with the IAs and the MOSW, wil l be followed as a part o f procurement and implementation:

Alert JPUF and DSS and U s ' officialdstaff: The IAs, per provisions in the PPA and the legal agreement to be signed with IDA, will issue alert letter(s) notifying about possible consequences o f corrupt and similar behavior in procurement practices, as well as actions to be taken against officials/staff if engage in such practices. The JPUF and M O S W will inform officials and staf f that in cases o f non-compliance o f the Bank's procurement guidelines, the Bank may take remedial actions (Le., withdrawal o f funds, declaration o f misprocurement) against the concerned packages and slices.

Alert bidders: The IAs, through appropriate notification, will alert al l bidders on consequences o f corrupt practices (fraud and corruption, collusion, coercion, etc.). The alert message, among others, will assert that bidders found to have engaged in such practices would be debarred from subsequent bidding processes in conformity with the PPA and the Bank Guidelines, as appropriate. In addition, in the pre-bid meeting, bidders will be advised on correct preparation o f bids.

Multiple dropping: Multiple dropping o f bids (bids submitted in more than one location and opened in one location) will not be permissible for al l procurement under the Bank- financed project.

Bid opening committee (BOC) & Bid evaluation committee (BEC): A formal, structured BOC and BEC will be constituted for each contract package, as per the provisions o f the PPA. The BOC will include at least one member o f the BEC; the B E C will have at least five members with two members from outside the procuring entity, with proven track record o f experience in procurement; depending on the type o f procurement such members shall be either from public offices or from professional bodies/ universities/ beneficiaries.

61

Bid opening minutes: During the same day o f bid opening, photocopies o f the bid opening minutes (BOM), signed by bid opening officials and the bidders’ representatives (present at the bid opening), with read-out bid prices o f participating bidders will be shared with the bidders either by email, fax or special messenger. Also, for prior review packages, a copy o f such BOM will be sent to the Bank the same day o f bid opening.

Rebidding: In case o f rebidding, IAs will enquire into the matter, record and highlight the grounds for re-bidding (Le., corruption or similar, high bid prices, etc.) along with recommended actions to be taken. For prior review cases, al l such detailed reports will be sent to the Bank. The Bank may not finance contracts recommended for rebidding and take further remedial measures, if in the opinion o f the Bank, it i s determined that collusion, corruption or similar practices have been adopted in the bidding process.

Filing and record-keeping: The IAs will preserve records and al l documents regarding their public procurement, in accordance with provisions o f the PPA. These records will be made readily available on request for audit, investigation or review by the Bank.

Procurement plans on websites: The approved procurement plan o f the project will be published on the website o f CPTU for contract packages o f Tk. 10 million and more, as well as that o f the Bank (if applicable), and updated semi-annually.

Post procurement audit (review): As per the provision o f the PPA, I A s will carry out an annual post procurement audit (review) based on sample contracts o f at least 15 percent o f the number o f contracts covering 30 percent o f the aggregate value o f the contracts by hiring chartered accounting firm (with international affiliation), share the findings o f the report with the Bank, and initiate actionshteps for improving procurement practices, as appropriate. This i s in addition to the IDA’S Procurement Post Review that would cover a minimum o f 20 percent post review contracts consistent with the level o f risk.

NCB conditions to be added (a) Post bidding negotiations shall not be allowed with the lowest evaluated or any other bidder; (b) bids should be submitted and opened in public in one location immediately after the deadline for submission; and (c) rebidding shall not be carried out without IDA’S prior concurrence.

With the above arrangements, procurement under the project i s likely to be effective and transparent, resulting in a smooth implementation o f the project leading to achievement o f the project development objectives. However, procurement process and implementation o f the contracts would be reviewed every six months by IDA, and adjustments or corrections will be made, as appropriate.

Procurement Arrangements

Overall procurement arrangements with tentative amounts are given in Table A.

Procurement of Works: There i s no works procurement under the project; however, if any works procurement i s required in course o f implementation, the following methods will be applicable:

(i) International Competitive Bidding (ICB). Civil works contracts estimated to cost equivalent to or more than US$500,000 per contract may be procured using ICB.

(ii) National Competitive Bidding (NCB): Civil works contracts estimated to cost less than US$500,000 equivalent per contract may be procured using NCB.

Procurement of Goods: Goods to be procured under this project would include mainly IT equipment, office equipment, training and learning materials, etc. Since the volume o f individual

62

goods contracts are likely to be small in scale, standard bidding documents under the Borrower’s procurement act will be used. However, the methods are:

(i)

(ii)

(iii)

(iv)

ICB: Goods and equipment contracts estimated to cost US$200,000 equivalent or more per contract will be procured using ICB.

NCB: Goods and equipment contracts estimated to cost less than US$200,000 equivalent per contract may be procured using NCB.

Shopping (S): Goods o f very small contracts or individual purchases o f off-the-shelf items may be procured, through prudent shopping procedures.

Direct Contracting (DC): Goods’ contract costing less than US$2,000 equivalent each may be procured following D C with the prior approval o f the Association.

Consulting Services: Consulting services to be procured for the project include, but are not limited to, Child Protection Policy Development, Advocacy, Community Mobilization, Education and Training Development, Health, Law, MIS Development, Maintenance & Training, M & E System, Impact Evaluation, Developing Manuals and Guidelines for Alternative Care, Training in Policy Development, Assessment, Coordination, Capacity Building in Specialized Services, Institutional Development, etc., from both firms and individuals. NGOs may also be hired for certain specialized services. The methods are:

Quality- and Cost- Based Selection (QCBS/ Quality-Based Selection) : Consulting services through f i r m s estimated to cost US$lOO,OOO equivalent or more per contract will be procured following either QCBS or QBS, depending on the type o f assignment.

Fixed Budget Selection (FBS): Services through f i r m s estimated to cost less than US$lOO,OOO equivalent per contract may be procured fol lowing FBS in accordance with the Borrower’s PPA.

Consultants’ Qualification (CQ,: Services through f i r m s estimated to cost less than US$lOO,OOO equivalent per contract may be procured fol lowing CQ, depending on the type o f assignment, in accordance with the Borrower’s PPA.

Single-Source Selection (SSS) : Specific consultants’ services through f i r m s , satisfying Consultants’ Guidelines (paragraphs 3.9 to 3.13), with the Association’s prior agreement, may be procured following SSS.

Individual Consultants (IC): Services for assignments, estimated to cost US$50,000 or more, for which teams o f personnel are not required and the experience and qualifications o f the individual are the paramount requirement, will be procured through individuals in accordance with paragraph 5.4, Section V o f the Consultants Guidelines. All other individual consultants may be selected following Borrower’s PPA. Individuals will be selected on the basis o f their qualifications for the assignment.

Procurement of non-consulting services: Providing Services for Street Children without Parental Care. The nature o f the services under these contracts in several locations around the country envisages a combination o f provision o f goods (daily essentials) and running/managing the Service Centers. For these contracts, customized bidding documents including appropriate selection method, agreed by or acceptable to IDA would be used.

63

Disability Sub-Grants: The project also has about $18.0 mi l l ion under component 1 for Disability Sub-Grants to finance Disability Sub-projects to be administered by way o f executing Disability Sub- grant Agreements between JPUF and the respective Beneficiaries.

Category Goods, consultants, services, training, studies and

Sub grants for sub projects workshop

Incremental operating costs

Thresholds for Procurement Methods and Prior Review for this project are indicated in Table B.

ICB NCB Other* N.B.F. Total

2.8 2.7 5.5 7.2 18.0 25.2

4.3 4.3 -

Incremental Operating Costs: “Incremental Operating Costs” means: (i) expenditures incurred for the operation and maintenance o f facilities, equipment and vehicles used for project implementation, including, without limitation, office rental, vehicle rental, fuel, routine repair and maintenance o f equipment, vehicles and office premises, communication costs, use o f internet costs, stationeries and other office supplies, and costs o f translation, printing, photocopying and advertising; (ii) transportation costs and subsistence allowances for staff in travel status for project implementation; (iii) bank charges; and (iv) salaries and allowances o f incremental staff assigned for Project implementation but excluding salaries o f the Recipient’s c iv i l servants.

Procurement and Selection Plan: A procurement plan for the project has been prepared by the Borrower which i s expected to be finalized by the appraisal, following consultation between the Borrower and IDA (Attached in Tables -C1 and C2). The Procurement Plan will be updated and agreed with the project team annually or as required to reflect the actual project implementation needs and improvements in institutional capacity.

Table A: Procurement Arrangements (US$ Millions)”

I TOTAL I 10.0 I 2.7 I 22.3 I I 35.0 I I/ Figures in parenthesis are the amounts to be financed by the IDA Credit. 21 ‘Other’ column includes IDA amounts that remain after the amounts shown for goods and works under ICB and NCB

procurement methods, and for consultancies shown under QCBS and IC methods.

Use of Standard Bidding and Contract Documents: Notwithstanding the provisions in paragraph 16, for ICB procurement o f goods and works, the use o f IDA’S Standard Bidding Documents (SBD) i s mandatory. For N C B procurement, the IAs may use the Government’s Standard Bidding Documents in form acceptable to the Association. For selection o f international consulting f i rms , the WB’s Standard Request for Proposals (RFP), including standard contract form will be used; for local consultants, Government’s procedure laid out in the PPA will apply including its documentation. Depending on the type o f procurement, the WB’s or Government’s Standard BidProposal Evaluation Form wil l be followed for preparation and submission o f evaluation reports.

Prior Review Thresholds

Goods and Works: The fol lowing contracts will be subject to prior review by the Association: (i) first contract for goods by each implementing agency using any method, and thereafter contracts estimated to cost US$200,000 equivalent or more, irrespective o f the procedures; (ii) for works- f i rst package/contract using NCB, and thereafter all contracts estimated to cost US$500,000 equivalent or more, irrespective o f the procedures; and (iii) all contracts for goods and works using direct

64

contracting. After an agreed period, the above thresholds will be reviewed/defined/redefined in the revised procurement plan, if necessary.

Consultants Services: The Bank’s prior review will be required for consultants’ services contracts estimated to cost US$ lOO,OOO equivalent or more for f i rms and US$50,000 equivalent or more for individuals. All single-source contracts will be subject to prior agreement by the Bank. All TORS o f the consultants are subject to prior review.

Table B: Thresholds for Procurement Methods and Prior Review

Expenditure Category

Works

Goods

Services

Contract Value (Threshold)

>=US$500,000

<US$500,000

<us$2,000 >=100,000

<us$100,000 >=US$50,000 per contract Selective contracts and meeting the requirements o f 3.5 o f Consultant Guidelines

Selective contracts and meeting the requirements o f 3.9 to 3.13 o f the Consultant guidelines

Procurement Method

ICB

NCB

DC ICB

NCB

N S Direct Contracting (DC) QCBSIQBS

FBSICQ Individual Consultant

FB S

sss

Contracts Subject to Prior Review

All contracts

First contract regardless o f value in NCB, and thereafter all contracts valued US$500,000 or more

All contracts

All contracts

First contract by each implementing agency regardless o f value. Post Review All contracts All contracts.

Post review A l l contracts

Prior agreement

Prior agreement

Post Review: In addition to the Borrower’s post review, for compliance with the Bank’s procurement procedures, the Wor ld Bank will carry out sample post review o f contracts that are below the prior review threshold. Such review (ex-post and procurement audit) o f contracts below the threshold will constitute a sample o f about 20 percent o f the contracts in each agency.

Review o f Procurement Performance: The World Bank will monitor the compliance with the requirements o f Bank’s different procurement methods and performance standards on a continuous basis. As part o f the project’s planned annual review/mid-term review, a comprehensive assessment

65

o f procurement performance will also be carried out. Based on the review, in consultation with the government, the World Bank may revise the prior review threshold, including the procurement and selection methods.

Ref. No.

Table C-1: Initial Procurement Plan (Component -1): JPUF

Description o f Assignment Estimated Selection cost Method

(US$ '000)

1 SI

S2

2 3 4 Technical Specialist- Policy 300,000 IC

Technical Specialist - Disability 300,000 IC Development

S3 Measurement and Analysis Technical Specialist - Program 300,000 IC

S4

FB S

Development

Management Technical Specialist - Coordination and 300,000 IC

QCBS

u

Ss Procurement Consultant S6 Developing Integrated MIS (including

tools for M&E and Training S7 Impact Evaluation (Need Assessment

on Disability, Situation Analysis/Baseline Baseline Analysis, National Service mapping, Midterm Evaluation, etc.)

Workshop/Seminar, Policy/Program Development Management

S9 Awareness, Sensitization and Dissemination Material Total

SS Training/Study Tour,

Review by the Bank

(PriorPost

24,000 IC 100,000 QCBS

100,000 QCBS

90,000

150,000

1,664,000

5 Yes

Yes

Yes

Yes

No Yes

Yes

N o

Yes

Expected Proposal

Submission Date

6 Oct., '08

Oct., '08

Oct., '08

Oct., '08

Ami1 '08

Dec., '08

Jan., '09

Jan. '09

66

Ref. No.

GI

G2

G3

Number of

Contracts

Contract Estd. Description Cost

US$ ('000)

Equipment & 100,000 Software for Integrated MIS

(2 Jeeps)

Equipment Total 250,000

Vehicles 50,000

Office 100,000

1

N o 1 July, '08

1

Procurement Method

NCB

NCB

NCB

Domestic Preference

(Yes/No)

Yes (as f i rst

contract)

N o

N o

Table (2-2: Initial Procurement Plan (Components - 2 & 3): DSS

---r July, '08

Expected Proposal

Submission Date

h Jan '09

Jan '09 Jan '09 Jan '09 Jul'O8

Aug '08

May '08 Apr '08 Jul'O9

Jul'O9

Dec '08

Dec '08

Jan '09

Dec '09

67

S15

SI^

SI,

S18

Institutional Development Workshops 35,000 CQ N o Jul'O9 (1 0 Workshops) Evaluation o f Selected Programs 100,000 QCBS/ Yes Jul'12

TA for Specialized Services (Social 555,000 QCBS Yes Dec '09 Work, **** TA for Outreach & Awareness 555,000 QCBS Yes Jul'O9 Buildinn

QBS

Total I 10,646,000 I S19

S20

" Institutional Development Specialist 180,000 I C Yes Jan '09 Support Staf f 153,600 QCBS Yes May '08

Prior Review Thresholds (as agreed with IDA):

Ref. No.

GI

G2 G3

Goods: >=$200,000, the first contract regardless o f value by each implementing agency and al l D C contracts Works: >=$500,000, the first contract regardless o f value by each implementing agency and al l D C contracts Consultants' Services: >=$lOO,OOO, al l individual consultant's contracts >=$50,000 and al l SSS contracts

Contract Estd. Number Procurement Domestic Review by Expected Descriptio Cost of Method Preference

n US$ Contracts (Y es/No) (PriorPost) Date Bank Bid Opening

('000) Vehicles 75,000 1 NCB N o Yes (3 Jeeps) Furniture 50,000 1 NCB N o N o Equipment 75,000 1 NCB N o N o (Software & Hardware) Total 2 0 0,o 0 0

Total Procurement: US$12.76 mi l l ion Goods US$0.45 mi l l ion Works US$nil Consultants' Services: US$12.31 mi l l ion

1.

2.

Contract Package Number shall remain frozen, Le., not be changed during the project period. The Procurement Plan shall be updated annually o r as agreed with IDA.

SM: Staff Month PQ: Prequalification ICB: International Competitive Bidding NCB: National Competitive Bidding NSI I S : National/ International Shopping DC: Direct Contracting QCBS: Quality- and Cost- Based Selection

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QBS: Quality-Based Selection FBS: Fixed Budged Selection CQ: Consultants’ Qualification IC: Individual Consultant SSS: Single Source Selection

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Annex 9: Economic and Financial Analysis BANGLADESH: Disability and Children-at-Risk Project

Abstract

This note estimates the costs o f disability and children-at-risk in Bangladesh. We find that the cost o f disability in Bangladesh i s considerable. We estimate that US$l .2 billion, or 1.74 percent o f GDP, i s lost per annum. This loss i s the cumulative o f four cost categories. First, because some people with disabilities are not employed, it costs Bangladesh US$891 mi l l ion per annum. Second, some disabled children forego schooling because o f their disabilities and that costs the economy about U S 2 6 mi l l ion per annum because o f the lower stream o f lifetime earnings due to the lower educational attainment. Third, some people with disabilities need help from others to function. The cost o f adult helpers i s then US$234 mi l l ion per annum from foregone income among adult helpers (usually women). Finally, some children forego schooling because they are helpers o f disabled people, which costs Bangladesh US$28 mil l ion per annum because o f the lower stream o f lifetime earnings due to the lower educational attainment. Therefore, the cost o f disability in Bangladesh i s US$148 per annum per disabled person. If these disabledpeople l ive in households with five family members, that loss in household income corresponds to almost a third o f the poverty line. We estimate the annul loss in lifetime earnings due to street children forgoing schooling i s US$9 mil l ion in Bangladesh. This would be the result o f street children attending instead o f working (and therefore foregoing earnings) and earning the skilled wage rate after age 18. The benefits o f getting street children into school are diminished somewhat because o f the reduced earnings that could have been earned as child labor.

I. Introduction

Despite the substantial progress in reducing income poverty over the last two decades, poverty and vulnerability s t i l l affects a large segment o f the Bangladeshi population. According to the most recent HIES data (2005) 40 percent (upper poverty line) o f the population lives below the poverty line. That is, 56 mi l l ion people live in poverty and two thirds o f them live in extreme poverty. Although the government has established several programs to address the needs o f the poor and vulnerable some groups require further efforts. These groups include: (i) people with disabilities; and (ii) vulnerable children (street children, children working in hazardous occupations, orphans, children/adolescents in conflict with the law, etc.), especially in rapidly growing urban slums.

People with disabilities have suffered from a lack o f access to an adequate education services, health services, and safety nets. This lack o f access has led to exclusion f rom social and economic activities, and in some cases has led to family members o f people with disabilities also having to forgo schooling or paid employment to stay at home and provide assistance to the disabled. Global evidence suggests that these factors translate into forgone GDP o f about 5-7 percent2*. Gertler and Gruber (2002) estimate, using Indonesian data that individuals/families with illnesses which severely limit physical function are able to smooth less than 30 percent o f the income loss from such illnesses. For vulnerable children, empirical evidence from the recently completed MDG Report on Bangladesh suggests that the cost o f reversing their lack o f human development opportunities in later years i s far greater than the cost o f investing in their human development during childhood29.

World Bank: Disability and Development Website, Issues Brief on Disability 28

29 For example, school dropouts in Guyana forgo hundreds o f thousand o f dollars in net earnings over their lifetimes, costing the state thousands o f dollars in foregone income.

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This note assesses the economic costs o f disability and children-at-risk in Bangladesh. I t does so by assuming that all interventions aimed at helping disabled people translate to an increase in lifetime earning opportunities. However, there are other benefits such as increased socialization that simply cannot be quantified. With children-at-risk, we estimate the increase in lifetime earnings that result from increasing school attainment, but at the cost o f reduced chi ld labor income that would have been earned had the chi ld not attended school. The organization o f the note i s as follows. The next section outlines the disability situation in Bangladesh. Section I11 then details the economic costs o f disability. Section IV details the economic costs o f children-at-risk in Bangladesh and Section IV concludes.

11. Disability and Children-at-Risk Situation in Bangladesh

Disability As in most developing countries, internationally comparable estimates o f disability prevalence are rare in Bangladesh. This lack o f globally comparable statistics i s partly explained by variation in definitions o f disability, methodologies o f data collection, and quality o f study design (Mont, 2007). Even within Bangladesh, vastly divergent estimates o f disability rates are observed. The Bangladesh Bureau o f Statistics (BBS) estimates that 1.6 percent (in 1998) o f the population i s disabled. This i s widely believed to be a grossly underestimated figure. Action Aid Bangladesh estimated that 8.8 percent o f people (in 1996) require disability related services. More recently (in 2005), the National Forum o f Organizations Working with Disability (NFOWD) and Handicap International (HI) estimated that 5.6 percent o f the population suffered from a disability (NFOWD and HI 2005). This estimate has received broad acceptance in Bangladesh.

Unless otherwise specified, the disability data for this note are drawn from NFOWD and Handicap International (2005). The data sampled 12,000 people in about 2,400 households between October, 2004 and November, 2004. The urban and rural split in households sampled was 25 and 75 percent respectively. Although the sample size for the survey i s somewhat small by international standards, it remains the largest survey, both in terms o f the number o f sampled persons and geographic coverage, on disability in Bangladesh to date.

The 8 mi l l ion people with disabilities in Bangladesh suffer from a range o f disability types and severity (see Table 1). Almost 2.6 mi l l ion (32 percent) o f the population i s visually impaired, and around 5 percent o f them are blind in both eyes. Physical disability impacts 28 percent o f the population. Hearing impairment affects 19 percent, speech impairment affects 4 percent and multiple impairments affect 11 percent o f the population. Mental disabilities, one o f the most diff icult to estimate, are thought to affect more than hal f a mi l l ion people (7 percent).

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Table 1: Disability disaggregated by type

Percent Total Visually Impaired (severe) 13.28% 1,062,400 Visually Impaired (moderate) 18.72% 1,497,600 Physically Impaired (severe) 16.52% 1,32 1,600 Physically Impaired (moderate) 11.48% 918,400

Hearing Impaired (moderate) 17.50% 1,400,000 Speech Impaired (severe) 1.29% 103,200 Speech Impaired (moderate) 1.71% 136,800 Mentally Impaired (severe) 3.08% 246,400 Mentally Impaired (moderate) 3.92% 313,600 Multiple Impairment 11 .OO% 880,000 Total 100.00% 8,000,000 Source: NFOWD and HI (2005)

Hearing Impaired (severe) 1.50% 120,000

Disability i s primarily a rural phenomenon in Bangladesh. Six percent o f people living in rural areas are disabled, while four percent o f those living in urban areas are disabled. There are regional variations as well. Some types o f disability are more prevalent in certain regions (e.g., Khulna has a higher proportion o f physical disability but lower rate o f vision disability compared to other regions). Disability prevalence i s higher among males than among females. And, prevalence o f disability i s much higher among the poor than among the non-poor (14 percent against 3.4 percentPo.

There are various reasons for disability: genetics, birth complications, maternal malnutrition, child malnutrition, incidences o f particular diseases, lack o f awareness, lack o f early detection, lack o f access to proper treatment, and poverty. N F O W D and HI (2005) shows that about one third o f the persons with disability were not able to seek treatment because o f poverty. High incidence o f disability i s also correlated with illiteracy and unemployment. The same study also reports that about 60 percent o f the persons with disability can work without help from the others while about 25 percent cannot move without any help. It i s also reported that an insignificant proportion o f persons with disability (3 percent) received assistance from any organization, government or non- government.

Children-at-risk The Consortium o f Street Children estimates that there are 445,000 street children in Bangladesh. Since, more than three-fourths o f them are in Dhaka, it i s estimated that there are 334,000 street children in Dhaka.

111. Economic Costs o f Disability

Economic costs of disability Under prevailing conditions, some people with disabilities have limited access to the labor market and are excluded from schooling. When people with disabilities are excluded from the labor market, there i s the obvious impact on economic output. However, when disabilities are sufficiently severe,

30 Of course, this says nothing about the causality between poverty and disability. On one hand, poverty can cause disability through, among other things, increased malnutrition, access to poor health services and sanitation, and unsafe living and working conditions. On the other hand, disabled people face barriers in their access to, among other things, education, employment, and social activities.

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family members or other helpers may be needed to assist the disabled person. These costs are difficult to estimate, especially in a developing country setting where data are scarce. In this section we outline the estimation strategy to calculate the economic cost o f excluding disabled people and simulate the impact o f the project.

We find that the loss in income due to disability in Bangladesh i s about US$1.18 billion per annum, which i s about 1.74 percent o f GDP (Table 2). This loss i s the cumulative o f four cost categories. First, because some people with disabilities are not employed, it costs Bangladesh US$891 million per annum. This impact on GDP alone accounts for 76 percent o f the total cost o f disability on the Bangladeshi economy. Second, some disabled children forego schooling because o f their disabilities and that costs the economy about US$26 million per annum because o f the lower stream o f lifetime earnings due to the lower educational attainment. Third, some people with disabilities need help from others to function. This help can come from adults and from children in the family. The cost of adult helpers i s then US$234 million per annum from foregone income among adult helpers (usually women). Finally, because some children forego schooling, because they are helpers o f disabled people, it costs Bangladesh US$28 million per annum because o f the lower stream o f lifetime earnings due to the lower educational attainment.

Table 2: Estimated costs due to disability

Disabled Adults Number us $

PWD not in LM 1,900,966 Loss o f work days o f PWDs 479,043,348 Weighted average daily wage rate (US $) Income lost bv PWDs not in LM

1.86 891.476.636

Disabled Children Disabled children not in school Total years o f schooling lost by the disabled children Incremental loss o f income due to non attendance o f schools of the disabled children 26,152,062

Adult Helpers

463,434 2,952,077

PWDs need help from others (25% o f PWDs) Number o f adult family helpers

2,000,000 1,000,000

500,000 126,000,000

Number o f adult helpers need to forgo work Loss o f work days o f adult family helpers Income lost by the adult family helpers 234,479,941

Child Helpers Number of child family helpers 1,000,000

500,000 6.37

3,185,000

Number of child helpers need to forgo schooling Years o f schooling among 16-60 years old Total years o f schooling lost by the child helpers Incremental loss of income due to non attendance o f schools o f the child helpers 28,215,496

Summary Total income lose due to disability per annum 1,180,324,135 GDP in 2007-08 (US $, estimated) 67,700,000,000 Income loss as % of GDP 1.74% Income loss per PWD 148

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Cost due to lack of access to employment The lack o f access by people with disabilities to employment costs US$891 million per annum. The sequence o f computations to arrive at this estimate i s described below.

Of the 8 million disabled persons in Bangladesh, NFOWD and HI (2005) found that around 55.8 percent are between 16 and 60 years old, which i s considered the productive age group (Table 3). We assume that the age distribution remains the same for each category o f impairment. We further assume that 10 percent o f the severely impaired are in the labor force, half o f those with moderate impairment are in the labor force, and that none o f those with multiple impairments are in the labor force. The 2003 Labor Force Survey estimated that labor force participation in 57 percent for men and women together. Then, 769,000 disabled people are in the labor force, which i s 17 percent o f the disabled population. Assuming that the unemployment rate among the disabled i s the same as the unemployment rate for the population as a whole, namely 4.3 percent, then 736,000 disabled people are employed. Conversely, 1.9 million people who otherwise would have been employed are not employed due to their disability.

These unemployed people lose out on income from 252 working days a year, which amounts to 75 1 million days o f work. Here, we are assuming that the disabled and non-disabled work the same number o f days each year. The assumption that the number o f hours worked by disabled and non- disabled people i s the same was i s consistent with the findings o f the World Bank (2006), which found using a survey o f 30 villages in Uttar Pradesh and Tamil Nadu that the number o f hours per day and days per month were very similar between person with and without disability. If we assume that the wage rate in Bangladesh i s the weighted average daily wage rate o f skilled and unskilled workers, then the average wage rate i s US$1.86 per person per days3' Therefore, if 1.9 million people lose out on 252 days o f work a year, then the impact on Bangladesh i s a sizable US$891 million (1,900,000 x 252 x 1.86) a year.

Vision Impaired (moderate) Physically Impaired (severe) Physically Impaired (moderate) Hearing Impaired (severe) Hearing Impaired (moderate) Speech Impaired (severe) Speech Impaired (moderate) Mentally Impaired (severe) Mentally Impaired (moderate)

18.70% 16.50% 1 1 .SO%

1.50% 17.50%

1.30% 1.70% 3.10% 3.90%

Table 3: Estimated unemployed population by impairment Population 16 Population

Types of Disabilities Percent Population to 60 not employed Vision Impaired (severe) 13.30% 1,062,400 592,819 291,039

,497,600 835,661 227,922 ,321,600 737,453 362,046 9 18,400 5 12,467 139,773 120,000 66,960 32,873

,400,000 78 1,200 213,068 103,200 57,586 28,271 136,800 76,334 20,820 246,400 137,491 67,500 313,600 174,989 47,727

Multiple Impairment 1 1 .OO% 880,000 49 1,040 469,925 Total 100.00% 8,000,000 4,464,000 1,900,966 Source: Authors' calculations using NFOWD and HI (2005)

Cost due to disabled children losing out on school

3 ' The wage rates for skilled and unskilled labor are 145.70 and 123.53 Takelday respectively. We assume that those in the government sector (5 percent) and the NGO sector (17 percent) are skilled, while the remaining 78 percent are unskilled. The wage data are obtained from the Statistical Yearbook o f Bangladesh 2006. Those wages have been inflated assuming a 6 percent interest rate.

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Some children are out o f school because o f their disability and that causes Bangladesh to lose out on US$26.2 mi l l ion per annum.

NFOWD and HI (2005) found that almost 15 percent o f al l people with disabilities were between 6 and 15 years old (Table 4). Assuming that 15 percent o f each o f the impairments i s also between 6 and 15 years old, 1.17 mil l ion people with disabilities are between 6 and 15, We then assume that 70 percent o f those with a severe impairment are not in school, while 30 percent o f those with a moderate impairment are not in are out o f school, which i s similar to the ratio o f disabled children out o f school to the total disabled children using data from the PEDP-I1 Baseline Survey 2005. As a result, more than 463,000 people are out o f school due to disabilities.

Together, approximately 40 percent o f disabled children

Vision Impaired (moderate) Physically Impaired (severe) Physically Impaired (moderate) Hearing Impaired (severe) Hearing Impaired (moderate) Speech Impaired (severe) Speech Impaired (moderate) Mentally Impaired (severe) Mentally Impaired (moderate)

18.70% 16.50% 11.50%

1.50% 17.50% 1.30% 1.70% 3.10% 3.90%

Table 4: Estimated population not in school because of disability Population 6 Population

Types of Disabilities Percent Population to 15 not in school Vision Impaired (severe) 13.3 0% 1,062,400 155,110 76,004

,497,600 218,650 45,916 ,321,600 192,954 94,547 9 18,400 134,086 28,158 120,000 17,520 8,585

,400,000 204,400 42,924 103,200 15,067 7,383 136,800 19,973 4,194 246,400 35,974 17,627 313,600 45,786 9,6 15

Multiple Impairment 1 1 .OO% 880,000 128,480 128,480 Total 1 0 0.00% 8,000,000 1,168,000 463,434 Source: Authors’ calculations using NFOWD and HI (2005)

To calculate the income lost due to being out o f school we employ the coefficients o f the wage regression estimated in the Bangladesh Poverty Assessment (World Bank, 2002). According to the regression, the incremental loss o f wages due to each grade o f school not completed amounts to US $0.1 1 per person per day (Table 5).33

Table 5: Determinants of wages for men and women in Bangladesh Women M e n

(0.012) (0.004) Age 0.032 0.040

Age square -0.0004 -0.0004 (0.00004) (0.0001)

(0.006) (0.002) Grades completed 0.070 0.049

Note: Other variables included among the determinants are marital status, urban areas, daily wage, public sector, divisions. Source: AI-Samarrai (2006).

32 According to the PEDP-I1 Baseline Survey 2005, the net enrollment rate in primary school i s about 85 percent. 33 Although the coefficients o f the regression are estimated for men and women separately, our data does not allow for a gender disaggregation and hence, we take the average o f the coefficients as our estimate for the total impact o f grade o f schooling completed on wages.

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Assuming that these 463,000 disabled children would have attained the average number o f years o f schooling (6.37 years), 3 mi l l ion years o f schooling are percent, which i s the average rate experienced since 1998-99. Therefore, the present value o f the loss o f income due to not receiving the average school attainment o f 6.37 years i s US$26.2 mil l ion per annum in Bangladesh.

We then assume an inflation rate o f 6

Costs due to adults helping people with disabilities Some disabilities are so severe that the person needs assistance. The cost o f adult helpers to Bangladesh i s US$234 mi l l ion per annum.

NFOWD and HI (2005) found that a quarter o f the people with disabilities “cannot function without support.” O f these 2 mi l l ion Bangladeshis, we assume that ha l f o f them need full time assistance. We further assume that all assistance comes from within the family, with 500,000 adult helpers and 500,000 child helpers. The 500,000 adult helpers forgo 252 working days each. As a result, 126 mil l ion days o f work are lost by helpers and if those workers could have commanded the average daily wage rate o f US$1.86, then Bangladesh loses US$234 mi l l ion each year.

Cost due to children helping a family member with disabilities Some children are forced out o f school to assist family members with severe disabilities and that causes Bangladesh to lose out on US$28 mi l l ion each year.

O f the 1 mil l ion child helpers, it i s assumed that 500,000 children help a family member cope with their disability on a full time basis. In other words, these children cannot attend school due to their responsibilities assisting disabled family members. As a result, 3.2 mi l l ion years o f schooling are lost. Given the reduction in wages, and hence, lifetime incomes to these child helpers, the total cost to the Bangladeshi economy i s US$28.2 mi l l ion per annum.

Summary The four cost components described above together cost the Bangladeshi economy about U S $ l .18 bi l l ion per annum. Given that the estimated GDP in Bangladesh in 2007-08 i s US$67.7 billion, the impact o f disability o f Bangladesh i s 1.74 percent o f GDP. If households with a disabled member were able to increase their incomes by US$148 per annum (US$l.18 b i l l ion among 8 mil l ion disabled people), that would correspond to almost a third o f the poverty line, noting that the poverty line for households with disabled people i s different to the poverty line o f households without a disabled person

Comparability to other estimates The above estimate o f the loss in income due to disability i s broadly comparable to the Metts (2004) estimate. In that study, Met t s estimated GDP lost due to disability in high, medium and low income countries, and further globally. According to Metts, conservative estimates o f the costs o f disability from lost labor, i s 4.1 percent o f GDP for Japan, 9.3 percent for Brazil, and 6.9 percent for India. The author also estimated GDP lost per disabled person in those countries by dividing the lost GDP by the number o f disabled persons o f the country. Table 6 below presents the cost estimates o f disability in Bangladesh due to lost productivity in 2000 as estimated by Met ts (2004):

34 We estimated the school attainment using the HIES 2005 for all 16 to 60 year olds.

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Table 6: Economic cost of disability High Estimate Low Estimate

Total Population 143,800,000 143,800,000 Disabled Population 14,236,200 5,320,600 GDP (US$) 47,600,000,000 47,600,000,000 Unemployment Rate (YO) 3 3 % GDP Lost 2.97 2.28 $ GDP Lost 1,413,720,000 1,085,280,000 $ GDP Lost per Disabled Person 265 76 Source: Metts (2004)

IV. Economic Costs of Children-at-Risk

Street children are generally deprived o f schooling and hence a stream o f income that i s commensurate with skilled labor. However, if these children were to enter school, then they would have to do so by foregoing income that could have been earned as chi ld labor.

We estimate the annual loss in lifetime earnings due to street children forgoing schooling i s US $9 million. We assume that when these street children attend school and then enter the labor force at the age o f 18, they forego a l l income that could have been earned while they were under 18 years o f age and from 18 on, they earn the wage rate o f a skilled laborer with the average school attainment (6.4 years). Assuming the 57 percent labor force participation rate o f observed in Bangladesh as a whole, and assuming the impact o f higher educational attainment shown in Table 5, we find that the annual present value o f earnings i s US$44.7 mill ion. However, had these children not attended school, they would have been able to earn the child labor wage o f US$0.55 per day. We assume that they could have earned this wage from age 8 through 17. Once they reach 18 however, they are likely to earn the unskilled wage rate o f US$1.79 per day. Under these conditions the street children’s net present value o f earnings i s US$34 mill ion. Therefore, annul loss in lifetime earnings due to street children forgoing schooling i s US$9 mill ion.

Although the above estimate i s high in itself, it does not include al l the other benefits to the economy from reducing the number o f street children out o f school. These benefits can come in the form o f reduced crime or from children in school receiving the necessary immunizations and health care referrals. In other words, the above estimate underestimates the value o f getting street children into school considerably.

V. Conclusion

We find that the cost o f disability in Bangladesh i s considerable. We estimate that US$l. 18 billion, or 1.74 percent o f GDP, i s lost per annum because o f i) disabled people being left out o f the labor force; ii) disabled children being l e f t out o f school; iii) adult family members assisting severely disabled people and hence being l e f t out o f the labor force; and iv) chi ld helpers foregoing school to help out with disabled family members. Therefore, the cost o f disability in Bangladesh i s U S 1 4 8 per annum per disabled person. If these disabled people live in households with 5 family members, that loss in income corresponds to almost a third o f the poverty line, noting that the poverty l ine for households with disabled people i s different to the poverty line o f households without a disabled person.

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On a strict cost-benefit basis, disability services should be provided as long as the total cost (both administrative and assistive devices) are below US$148 per annum per disabled person. O f course, the allocation o f any budget targeted at disability issues across the disability types and disability severity, has implications on the total number o f potential beneficiaries o f the services. For example, to provide eye glasses to visually impaired people, it will cost less than US$25, including administrative, optical diagnosis, and the eye glasses t h e m ~ e l v e s . ~ ~ On the other hand, providing a basic hearing aid to a moderately hearing impaired person will cost around US$75 in

We estimate the annual loss in lifetime earnings due to street children forgoing schooling i s US$9 mil l ion in Bangladesh. This i s the result o f street children attending school instead o f working (and therefore foregoing earnings) and earning the skilled wage rate after age 18. The benefits o f getting street children into school are diminished somewhat because o f the reduced earnings that could have been earned as child labor. I t should be noted that the above estimate does not include al l the other benefits o f schooling that would be missed i s street children were not integrated into the schooling system.

This i s a guesstimate based on eye glasses costing about US$15 per pair. 36 There i s a wide range o f hearing aids depending on the severity o f the impairment. The costs vary between about US$50 and US$400.

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Annex 10: Safeguard Policy Issues BANGLADESH: Disability and Children-at-Risk Project

Environment: As the project i s expected to have minimal or no adverse environmental impacts, it i s classified as Category C requiring no further EA action. This classification i s the result o f the environmental screening based on consultations with the regional safeguards team (SAROQ).

Safeguards: N o safeguard policies are triggered by this Category C project.

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Annex 11: Project Preparation and Supervision


Planned Actual PCN review October 24, 2007 October 9,2007 Initial PID to PIC October 22,2007 October 23,2007 Initial ISDS to PIC October 24,2007 November 1,2007 Appraisal March 2, 2008 March 4, 2008 Negotiations Apri l 10, 2008 March 7, 2008 Board/RVP approval July 1,2008 Planned date o f effectiveness December 3 1,2008 Planned date o f mid-term review July 1, 201 1 Planned closing date December 31,2014

Key institutions responsible for preparation of the project: Ministry o f Social Welfare

0

Department o f Social Services National Foundation for the Development o f Disabled Persons

Bank staff and consultants who worked on the project included: Name Title Unit Qaiser Khan Lead Human Development SASHD

Andrea Vermehren Senior Social Protection SASHD

Susan Hirshberg Senior Education Specialist, SASHD

Shaikh Shamsuddin Ahmed Social Protection Economist SASHD

Ihsan Ajwad Economist SASHD Kishor Uprety Senior Counsel LEGES Peter Whiteford Consultant, Social Policy SASHD Pravesh Kumar Consultant, Institutional Issues Burhanuddin Ahmed Senior Financial Management SARFM

Mohammad A. Sadeque ET ConsultantRrocurement SARPS Gertrude Cooper Program Assistant SASHD Mahtab Alam Program Assistant SACBD Nasreen Begum ET Temporary SACBD

Specialist, Task Team Leader

Specialist

Regional Disability Coordinator

Iqbal Kaur Social Protection Specialist M N S H D

Specialist

Bank funds expended to date on project preparation: 1. Bank resources: US$379,56 1 2. Trust funds: US$27,000 3. Total: US$406,561

Estimated Approval and Supervision costs: 1. Remaining costs to approval: US$45,611 2. Estimated annual supervision cost: US$140,000

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Annex 12: Documents in the Project Fi le


A. Development Project Proposal (PIP). Ministry o f Social Welfare, Bangladesh. Development Project Proposal (PIP). Jatiyo Protibhondi Unnayan Foundation, Bangladesh.

B. Bank Staff Assessments

Aide Memoire. Identification Mission. May 2007. . Preparation Mission. September 2007. . Preparation Mission. October 2007. . Pre-Appraisal Mission. January 2008.

Project Concept Note. October 2007. Project Information Document. October 2007. Bangladesh Country Assistance Strategy. Apri l 2006

C. Other

Bangladesh Child Labor - Street Children, ARISE Evaluation and PCAR Project Document. 2007. UNDP and UNOPS. Department o f Social Welfare, Ministry o f Social Welfare. 2004.

Gertler, Paul J. and Jonathan Gruber (2002). “Insuring Consumption against Illness”. American

Institutional Capacity Building of MOSW: Draft Report. Memorandum & Articles of Association SDF - Letter to DG Social Welfare Directorate: Disability

Metts, R (2004): “Disability and Development”, Background paper prepared for the Disability and

Mont, D. (2007): “Measuring Health and Disability”, Lancet 2007,369: 1658-63. NFOWD (2002): “From Charity to Equity - Policy Dialogue on Disability and Development”,

Dhaka: National Forum o f Organizations Working with the Disabled (NFOWD). NFOWD and HI (2005): “Disability in Bangladesh: A Survey”, Dhaka: National Forum o f

Organizations Working with the Disabled (NFOWD) and Handicap International (HI). Project Preparation Facility (PPF) for Preparing Disability and Children-at-risk Project.

National Foundation for Development o f the Disabled Persons (JPUF). Ministry o f Social Welfare. 2007.

Sen, Binayak and David Hume (editors). “The State o f the Poorest 2005/2006, Chronic Poverty in Bangladesh: Tales o f Ascent, Descent, Marginality and Persistence,” Bangladesh Institute o f Development Studies and Chronic Poverty Research, 2006.

World Bank. (2002). Poverty in Bangladesh: Building on Progress. Washington, DC: World Bank.

Economic Review.

Measurement through Surveys and National Census.

Development Research Agenda Meeting, Washington, D.C.: The World Bank.

, (2006). People with Disabilities in India: From Commitments to Outcomes. South Asia

. (2007). To the MDGs and Beyond: Accountability and Institutional Innovation in

. (2007). Policy, Legal and Institutional Framework for Children at Risk in

Human Development Group, Washington, DC: World Bank.

Bangladesh . Dhaka, Bang lades h : World Bank.

Bangladesh.

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Annex 13: Statement of Loans and Credits BANGLADESH: Disability and Children-at-Risk Project

Difference between expected and actual

disbursements Original Amount in US$ Millions

ProjectID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev’d

PO98146 2008 P102305 2007 PO98273 2006 PO89382 2006 PO74841 2005 PO74966 2004

PO86791 2004 PO78707 2004 PO81969 2004 PO83890 2004

PO86661 2004 PO71435 2003 PO81849 2003

PO62916 2003 PO53578 2003 PO44876 2002 PO75016 2002 PO74731 2002 PO74040 2002 PO71794 2002 PO44810 2001 PO50752 2001 PO69933 2001 PO57833 2001 PO59143 2001 PO41887 1999

Public Procurement Reform Project Il Avian Flu Preparedness Local Governance Support Project Investment Promotion Finmcing Facility HNP Sector Program Primary Education Development Program I1 Reaching Out o f School Children Project Power Sector Development T A Enterprise Growth & Bank Modernization Economic Management T A Program (EMTAP) BD - Water Supply Program Project Rural Transport Improvement Project

BD: Telecommunications Technical Assist. Central Bank Strengthening Project Social Investment Program Project Female Secondary School Assis. I1 Public Procurement Reform Project Financial Services for the Poorest Renewable Energy Development Rural Elect Renewable Energy Dev. Legal & Judicial Capacity Building Post-Literacy & Continuing Education HIV/AIDS Prevention Air Quality Management Project Microfinance I1 Municipal Services

Total:

0.00 23.60 0.00 16.00 0.00 111.50 0.00 50.00 0.00 300.00 0.00 150.00

0.00 0.00 0.00 7.10 0.00 250.00 0.00 0.00

0.00 0.00 0.00 190.00 0.00 9.12

0.00 37.00 0.00 18.24 0.00 120.90 0.00 4.50 0.00 5.00 0.00 0.00

0.00 190.98 0.00 30.60 0.00 53.30 0.00 40.00 0.00 4.71 0.00 151.00 0.00 138.60

0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00

0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00

0.00

0.00 1,902.15 0.00

0.00

0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00

0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 8.20 0.00 0.00 0.00 0.00 0.00 0.00

0.00

8.20 -

0.00 23.58 0.00 15.97 0.00 112.63 0.00 48.51 0.00 325.07 0.00 95.53

0.00 38.62 0.00 13.80 0.00 142.90 0.00 19.37

0.00 40.32 0.00 112.61 0.00 6.78

0.00 37.09 0.00 12.61

31.06 22.20 0.00 0.22 0.00 1.58 0.00 1.65 0.00 73.86 0.04 14.80 0.00 23.92

21.98 0.71 0.91 1.48 0.00 15.16

0.68 23.11

0.00

0.00 1.66 0.83

-32.24 7.60

2.37 10.35 70.42 9.86

1.87 61.14 4.96

33.00 2.67

35.29 -0.47 0.83 7.04

31.99 10.32 15.65 18.30 1.85

-9.48

19.97

0.00

0.00 0.00

0.00 0.00 0.00

0.00 3.42

0.00 0.00

0.00 0.00

1.66

0.00 -1.96 -0.85 -0.47 0.00 0.00

-28.41 0.00

-7.35 -1.70 -0.84 0.00

19.32

54.67 1,224.08 305.78 - 17.18

82

BANGLADESH STATEMENT OF IFC’s

Held and Disbursed Portfolio In Millions o f US Dollars

Committed Disbursed

IFC I F C

FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic.

2001 BRAC Bank 0.00 1.63 0.00 0.00 0.00 1.60 0.00 0.00 1997 DBH 1.91 0.65 0.00 0.00 1.91 0.65 0.00 0.00 1991 Dynamic Textile 0.00 0.00 0.00 1.48 0.00 0.00 0.00 1.48

GTFP Dhaka Bank 5.00 0.00 0.00 0.00 5.00 0.00 0.00 0.00 GTFP Eastern Bnk 2.59 0.00 0.00 0.00 2.59 0.00 0.00 0.00

2004 GrameenPhone Ltd 24.00 0.00 0.00 0.00 24.00 0.00 0.00 0.00 2006 GrameenPhone Ltd 59.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1998 IPDC 3.13 0.00 0.00 0.00 3.13 0.00 0.00 0.00 1998 Khulna 10.40 0.00 0.00 11.99 10.40 0.00 0.00 11.99

1998 Lafarge/Surma 35.00 10.00 0.00 0.00 35.00 10.00 0.00 0.00 2000 Lafarge/Surma 0.00 0.00 0.00 15.00 0.00 0.00 0.00 15.00

2003 RAK Ceramics 7.20 0.00 0.00 0.00 7.20 0.00 0.00 0.00 2000 United Leasing 2.57 0.00 0.00 0.00 2.57 0.00 0.00 0.00

Total portfolio: 150.80 12.28 0.00 28.47 91.80 12.25 0.00 28.47

Approvals Pending Commitment

FY Approval Company Loan Equity Quasi Partic.

2000 USPCL 0.00 0.00 0.00 0.00 1998 Khulna 0.00 0.00 0.00 0.00

Total pending commitment: 0.00 0.00 0.00 0.00

83

Annex 14: Country at a Glance BANGLADESH: Disability and Children-at-Risk Project

POVERTY and SOCIAL Bangladesh

2006

GNIpercapita (Aflasmethod, US%) 480 GNI (Atlas method, US$ billions) 69.9

Average annual growth, 2000.06

Population (46) 19 Laborforce (O%J 2 2

Population, mid-year (miliions) 144.4

M o s t recent est imate ( l a tes t year aval lable, 2000.06)

Poverty (%of population belo wnationalpo vertyline) Urban PO pulatio n (%of total popuiatio n) Life ekpectancy at birth (pars) Infant mortality (per IOOOiive births)

50 25 63 56

Child malnutrition (%ofchildren under5) 48 Access to animprovedwdtersource (%ofpopulation) 74

Gross primary enrollment (%of school-age population) Literacy (%ofpopulafion age 41

0 9 Male m7 Female 111

KEY ECONOMIC RATIOS and LONG-TERM TRENDS

1986 1996

GDP (US% biiiions) 212 40.7 Gross capital formation1GDP 6.7 20.0 Exports of goods and servicesIGDP 5.4 11.1

Gross national savings1GDP 6.9 20.0 Gross domestic savingsiGDP 9.8 P.4

Current account balanceiGDP -5.1 -3.2 Interest paymentsiGDP 0.7 0.5 Total debtIGDP 38.1 37.7 Total debt servicelexports 28.4 114 Present valueof debt1GDP Present valueof debtlexports

1986-96 1996-06 2006

GDP 4.2 5.4 6.0 GDP percapita 18 3 4 4.0 Exports of goods and services 117 9.6 15.6

(average annuai gmvdh)

S o u t h Low- As ia Income

1470 684

1005

17 2.1

29 63 66 45 84 60 10 16 0 5

2006

60.0 24.5 6.6

20.0 25.8

-0.9 0.4

30.6 5.8

22.0 96.5

2 353 580

1364

19 2 3

31 59 80 39 75 62

ID 99

0 4

2006

62 0 25 0 -78

20 3 26 6

0 9

2006 2006.10

6.7 6.3 4.8 4.5 15.7 P.5

D eve i o pmen t d lamo nd'

Life ekpectancy -

GNi Gross

capita nrollment per primary

- Access to improved water source

-8 angladesh ~ Low-income group

E c o n o m i c rat ios '

Trade

Domestic Capital savings formation

1

Indebtedness

-Bangladesh ~ Low-income group

Bangladesh

PRICES and GOVERNMENT F I N A N C E

D o m e s t i c p r i ces (%change) Consumer prices Implicit GDP deflator

Government Finance (%of GDP, includes current grants) Current revenue Current budget balance Overaii surplusideficit

T R A D E

/US% miliions) Totalexports (fob)

Raw jute Leather and leather products Manufactures

Total imports (cif) Food Fuel and energy Capital goods

Export price index (2000=WO) Import price index (2000=WO) Terms of trade (200O=WO)

1986

8.0

9.5 4.1

-3.1

1986

819 P 4 61

486 2,364

356 342

1003

46 48 96

1996

6 7 4 2

9 0 2 2

-45

1996

3,884 91

241 3,205 6,947

570 274 196

85 79 0 8

2006

6.5 5.1

m.5 2.1

-3.8

2005

8.573 96

221 7,819 11870 1,607 1602 1794

IS t34 89

2006

7.0 5.2

m.7 2.2

-3.3

2006

x),422 17

269 9,506 13,301

1801 1,795 2,om

P 2 141 87

84

I In f la t i on (Oh) n r

I

1 I 01 02 03 04 05

-GDPdeflator -CPI

Expor t and Impor t l eve l s ( U S $ mlll.)

15,000 T

I 00 01 02 03 04 05 OB

.Exports OlmpDrtS

S T R U C T U R E o f the E C O N O M Y 1986 1996

(%ofGDP) Agriculture 319 25.7 industry 215 24.9

Services 46.5 49.5

Household final consumption expenditure 85.8 83.2

Manufacturing 14.0 15.4

General gov't final consumption egenditure 4.3 4.4 Imports of goods and sewices P.2 8.7

i

(average annualgrowth) Agnculture industry

Services ~anufacturing

1986-96 1996-06

2 3 3 6 6 5 7 0 6 7 6 3 3 8 5 5

Household final consumption expenditure 3.2 3.6 General gov't final consumption egenditure 4.0 8.3 Gross capital formation 6.7 8 6 imports of goods and sewices 7.5 5.8

2005

20 1 27 2 6 5

52 6

76 4 5 5

23 0

2005

2 2 8 3 8 2 6 4

5 1 7 8 'a7 8 1

2006

8 5 28 1 7 2

52 4

76 1 5 6

24 4

2006

4 5 9 6 134 6 5

6 0 7 9 8 0 141

Growth o f cap i ta l and G D P (%)

01 02 03 04 05 OB

Growth o f expor t s and i m p o r t s (Oh)

03 04 05 OB

-Exports -inports - Note'2006data arepreliminaryestimates Groupdataarefor2005. 'Thediamonds showfourkev indicators in thecountrv(in bold) cornparedwithits income-groupaverage.If data aremissing, thediamondwill

be incompiete

B A L A N C E o f P A Y M E N T S

(US$ millions) Exports of goods and sawices Imports of goods and sewices Resource balance

Net income Net current transfers

1986

1043 2,587 -1544

4 6 586

Current account balance -1084

Financing items (net) Changes in net reserves

129 -128

M e m o : Reserves including gold (US$ millions) Conversion rate (DEC, local/US$)

E X T E R N A L D E B T and R E S O U R C E FLOWS

(US$ millions) Totai debt outstanding and disbursed

29 9

1986

8,062 IBRD 61 IDA 2 450

Total debt Service iBRD IDA

448 5

28

Composition of net resource flows Official grants 553 Official creditors 843 Private creditors 55 Foreign direct investment (net inflows) 2 Portfolio equity(net inflows) 0

World Bank program Commitments Disbursements Principal repayments Net flows interest payments Net transfers

383 337

8 330 25

305

1996

4,437 7,604 -3,757

55 1821

-1291

274 107

1878 40.9

1996

15,341 46

5.70

672 8

92

596 548 -30

-1l7 14

8 8 279

54 225

45 8 0

2005

9,750 u , 9 7 -4.167

6 8 0 4,290

-557

624 -67

2,929 618

2004

20,129 0

8,895

671 8

208

822 557 -6

449 4

707 615 148

467 68

399

2006

117m 15,707 -3,989

-786 5,347

572

-207 -365

3,488 67.2

2005

8,935 0

8.688

791 0

223

671 339

-9 802

1

500 547 153

394 70

325

Current a c c o u n t ba lance t o G D P (Oh)

' T

I C o m p o s i t l o n o f 2005 debt ( U S $ mill.)

G:688 ~ F:528

C 308

A - IBRD E - Bilateral B . IDA D. Other mltiiateral F - Private C - I M F 0 - Short-term

Deveioment Economics

85

310107

Map section

R A J S H A H IR A J S H A H I

D H A K AD H A K A

S Y L H E TS Y L H E T

K H U L N AK H U L N A

B A R I S A LB A R I S A L

C H I T T A G O N GC H I T T A G O N G

PANCHAGARPANCHAGAR

THAKURGAONTHAKURGAONNILPHAMARINILPHAMARI

LALMONIRHAT

LALMONIRHAT

DINAJPURDINAJPUR

RANGPURRANGPURKURIGRAMKURIGRAM

GAIBANDHAGAIBANDHA

JOYPURHATJOYPURHAT

NAOGAONNAOGAON

NOWABGANJNOWABGANJ

RAJSHAHIRAJSHAHI

NATORENATORE

BOGRABOGRA

JAMALPURJAMALPUR

SERPURSERPUR

NETROKONANETROKONA

MYMENSINGHMYMENSINGH

TANGAILTANGAILSERAJGANJSERAJGANJ

PABNAPABNA

KUSHTIAKUSHTIA

MEHERPURMEHERPUR

CHUADANGACHUADANGA

JHENAIDAHJHENAIDAH MAGURAMAGURA

RAJBARIRAJBARI

FARIDPURFARIDPUR

MANIKGANJMANIKGANJ

DHAKADHAKA

GAZIPURGAZIPUR

KISHORGANJKISHORGANJHABIGANJHABIGANJ

SUNAMGANJSUNAMGANJ

SYLHETSYLHET

MOULVI BAZARMOULVI BAZAR

BRAHMANBRAHMANBARIABARIA

NARSINGDINARSINGDI

NARAYNGANJNARAYNGANJ

MUNSHIGANJMUNSHIGANJ

SARIATPURSARIATPUR CHANDPURCHANDPUR

COMILLACOMILLA

MADARIPURMADARIPURGOPALGANJGOPALGANJ

NARAILNARAILJESSOREJESSORE

SATKHIRASATKHIRA

KHULNAKHULNA

BAGERHATBAGERHAT

PEROJPURPEROJPUR

BARISALBARISAL

JHALUKATHIJHALUKATHI

PATUAKHALIPATUAKHALIBHOLABHOLA

BARGUNABARGUNA

LUXMIPURLUXMIPUR

NOAKHALINOAKHALI FENIFENI

KHA

GRA

CH

HA

RI

KHA

GRA

CH

HA

RI

RANGAMATIRANGAMATI

CHITTAGONGCHITTAGONG

BANDARBANBANDARBAN

COX’SCOX’SBAZARBAZAR

RangpurRangpur

GaibandhaGaibandha

DinajpurDinajpur

BograBogra

SerajganjSerajganjNatoreNatore

JoypurhatJoypurhat

NaogaonNaogaon

NowabganjNowabganj

JamalpurJamalpurSerpurSerpur

NetrokonaNetrokona

SunamganjSunamganj

PabnaPabna

KushtiaKushtia

RajbariRajbariMeherpurMeherpur

ChuadangaChuadanga

JhenaidahJhenaidahMaguraMagura

NarailNarail

SatkhiraSatkhira

BagerhatBagerhat

PerojpurPerojpur

JhalukathiJhalukathi

GopalganjGopalganj

MadaripurMadaripurSariatpurSariatpur

FaridpurFaridpur

JessoreJessore

NoakhaliNoakhali

KhagrachhariKhagrachhari

PatuakhaliPatuakhali

BholaBhola

BargunaBarguna

ComillaComilla

Moulvi BazarMoulvi Bazar

MymensinghMymensingh

TangailTangail

ManikanjManikanj

RangamatiRangamati

BandarbanBandarban

Cox's BazarCox's Bazar

ThakurgaonThakurgaon

NilphamariNilphamari LalmonirhatLalmonirhat

KurigramKurigram

PanchagarPanchagar

FeniFeni

GazipurGazipurNarsingdiNarsingdi

NaraynganjNaraynganj

MunshiganjMunshiganj

ChandpurChandpur

LuxmipurLuxmipur

BrahmanbariaBrahmanbaria

HabiganjHabiganj

KishorganjKishorganj

RajshahiRajshahi

KhulnaKhulna

SylhetSylhet

BarisalBarisal

ChittagongChittagong

DHAKADHAKA

JJaammuunnaa

GGaannggeess

GGaannggeess

MMeegg

hhnnaa

Kaptai KaptaiLakeLake

GG aa nn gg ee ss DD ee ll tt aa

SS uu nn dd aa rr bb aa nn ss

R A J S H A H I

D H A K A

S Y L H E T

K H U L N A

B A R I S A L

C H I T T A G O N G

PANCHAGAR

THAKURGAONNILPHAMARI

LALMONIRHAT

DINAJPUR

RANGPURKURIGRAM

GAIBANDHA

JOYPURHAT

NAOGAON

NOWABGANJ

RAJSHAHI

NATORE

BOGRA

JAMALPUR

SERPUR

NETROKONA

MYMENSINGH

TANGAILSERAJGANJ

PABNA

KUSHTIA

MEHERPUR

CHUADANGA

JHENAIDAH MAGURA

RAJBARI

FARIDPUR

MANIKGANJ

DHAKA

GAZIPUR

KISHORGANJHABIGANJ

SUNAMGANJ

SYLHET

MOULVI BAZAR

BRAHMANBARIA

NARSINGDI

NARAYNGANJ

MUNSHIGANJ

SARIATPUR CHANDPUR

COMILLA

MADARIPURGOPALGANJ

NARAILJESSORE

SATKHIRA

KHULNA

BAGERHAT

PEROJPUR

BARISAL

JHALUKATHI

PATUAKHALIBHOLA

BARGUNA

LUXMIPUR

NOAKHALI FENI

KHA

GRA

CH

HA

RI

RANGAMATI

CHITTAGONG

BANDARBAN

COX’SBAZAR

Rangpur

Gaibandha

Dinajpur

Bogra

SerajganjNatore

Joypurhat

Naogaon

Nowabganj

JamalpurSerpur

Netrokona

Sunamganj

Pabna

Kushtia

RajbariMeherpur

Chuadanga

JhenaidahMagura

Narail

Satkhira

Bagerhat

Perojpur

Jhalukathi

Gopalganj

MadaripurSariatpur

Faridpur

Jessore

Noakhali

Khagrachhari

Patuakhali

Bhola

Barguna

Comilla

Moulvi Bazar

Mymensingh

Tangail

Manikanj

Rangamati

Bandarban

Cox's Bazar

Thakurgaon

Nilphamari Lalmonirhat

Kurigram

Panchagar

Feni

GazipurNarsingdi

Naraynganj

Munshiganj

Chandpur

Luxmipur

Brahmanbaria

Habiganj

Kishorganj

Rajshahi

Khulna

Sylhet

Barisal

Chittagong

DHAKA

I N D I A

I N D I A

I N D I A

MYANMAR

BHUTAN

Jamuna

Ganges

Ganges

Meg

hna

KaptaiLake

B a y o f B e n g a l

M o u t h s o f t h e G a n g e s

To Dispur

To Dispur

To Dispur

To Silchar

To Goalpara

To Patna

To Katihar

To Katihar

To Gangtok

To Sittwe

To Calcutta

To Calcutta

G a n g e s D e l t a

S u n d a r b a n s Mt. Mowdok(957 m)

26ºN

25ºN

24ºN

23ºN

22ºN

21ºN

25ºN

24ºN

23ºN

22ºN

21ºN

88ºE 89ºE 90ºE 91ºE

89ºE 90ºE 91ºE 92ºE

92ºE

BANGLADESH

This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other informationshown on this map do not imply, on the part of The World BankGroup, any judgment on the legal status of any territory, or anyendorsement or acceptance of such boundaries.

0 10 20 30 40

0 10 20 30 40 50 Miles

50 Kilometers

IBRD 33368R

MARCH 2008

BANGLADESHDISTRICT CAPITALS

DIVISION CAPITALS

NATIONAL CAPITAL

RIVERS

MAIN ROADS

RAILROADS

DISTRICT BOUNDARIES

DIVISION BOUNDARIES

INTERNATIONAL BOUNDARIES