with Bangladesh Bank for People's Republic of Bangladesh€¦ · Bangladesh Bank (Central Bank of Bangladesh), the monetary authority and financial sector regulator of Bangladesh,

with Bangladesh Bank

for People's Republic of Bangladesh

14 June 2019 | Strategic Frameworks

Programme title: Up scaling regulatory landscape of Green Banking for Shariah Based Banks and Financial Institutionsin Bangladesh

Country: Bangladesh

National designated authority: Economic Relations Division (ERD), Ministry of Finance

Implementing Institution: Bangladesh Bank

Date of first submission: 30 September 2018

Date of current submission/ version number

8 November 2018 V.1

Readiness and Preparatory Support Page 2 of 16

How to complete this document?

- Please visit the Empowering Countriespage of the GCF website to download the Readiness Guidebook and learn how to access funding under the GCF Readiness and Preparatory Support Programme.

- This document should be completed by National Designated Authorities (NDA) or focal points with support from their Delivery Partners where relevant. Once completed, this document should be submitted to the GCF by the NDA or focal point to [email protected].

- Please be concise. If you need to include any additional information, please attach it to the proposal. - If the Delivery Partner implementing the Readiness support is not a GCF Accredited Entity for project

Funding Proposals, please complete the Financial Management Capacity Assessment (FMCA) questionnaire and submit it prior to or with this Readiness proposal. The FMCA is available for download at theLibrary page of the GCF website.

Where to get support?

- If you are not sure how to complete this document, or require support, please send an e-mail to [email protected].

- You can also complete as much of this document as you can and then send it to [email protected], copying both the Readiness Delivery Partner and the relevant GCF Country Dialogue Specialist and Regional Advisor. Please refer to the Country Profiles page of the GCF website to identify the relevant GCF Country Dialogue Specialist and Regional Advisor.

- We will get back to you within five (5) working days to acknowledge receipt of your submission and discuss the way forward.

Please submit the completed form to:

[email protected]

Please use the following naming convention for the file name: “GCF Readiness Proposal-[Bangladesh/BB]-[1809dd]”

Note: Environmental and Social Safeguards and Gender

Throughout this document, when answering questions and providing details, please make sure to pay special attention to environmental, social and gender issues, particularly to the situation of vulnerable populations, including women and men. Please be specific about proposed actions to address these issues. Consult Annex IV of the Readiness Guidebook for more information.

https://www.greenclimate.fund/how-we-work/empowering-countries

mailto:[email protected]

https://www.greenclimate.fund/library/-/docs/list/574044



https://www.greenclimate.fund/countries



1. SUMMARY

Country submitting the proposal

Country name: Bangladesh

Name of institution representing NDA or Focal Point:Economic Relations Division (ERD), Ministry of Finance

Name of contact person:Nur Ahmed

Contact person’s position:Deputy Secretary, UN-5 Branch, ERD, MoF

Telephone number:+88 02-9119453; +88 01711884169

Email:[email protected]; [email protected]

Full office address:Economic Relations Division (ERD), UN-5 Branch, Ministry of Finance, Sher-e- Bangla Nagar (Planning Commission Campus), Dhaka-1207

Additional email addresses that need to be copied on correspondences:[email protected]; [email protected]

Date of initial submission 30 September 2018

Last date of resubmission 30 September 2018 Version number V.02

Which institution will implement the Readiness and Preparatory Support project?

☐ National designated authority ☐ Accredited entity ☐ Delivery partner Please provide contact information if the implementing partner is not the NDA/focal point

Name of institution: Bangladesh Bank

Name of official:Manoj Kumar Biswas

Position: General Manager

Telephone number: +88029530320

Email: [email protected]; [email protected]

Full office address: Sustainable Finance Department (19th floor, 2nd Annex Building), Bangladesh Bank, Head Office, Motijheel, Dhaka-1000

Additional email addresses that need to be copied on correspondences: [email protected] ; [email protected] ; [email protected] ; [email protected];[email protected] ; [email protected]

Title of the Readiness support proposal

Up scaling regulatory landscape of Green Banking for Shariah Based Banks and Financial Institutions in Bangladesh

Type of Readiness support sought

Please select the relevant GCF Readiness activity area below (click on the box): ☐I. Country capacity for engagement with GCF ☐II. Country programming process ☐III. Direct access to climate finance ☐IV. Climate finance accessed ☐V. Formulation of national adaptation planning and/or other adaptation planning

processes








Brief summary of the request

Though the previous readiness programmes from GCF established and strengthened the NDA and supported the institutional coordination and climate change information in Bangladesh, it did not primarily focus on the regulatory framework of the financial system. However, regulatory intervention is a critical requirement for climate change response. Financial regulation helps to manage the potential risks and opportunities of climate change by engaging the industry and ensuring proper information disclosure. Without a strong regulatory capacity it is difficult to make a swift and significant response to integrate climate change in the industry, investment or credit policies.

The main aspect of this proposal is to make a paradigm shift in the policy horizon on green banking for Shariah Based Banks and FIs. The broad outcomes expected from this programme are policy component through drafting of evidence-based policy framework or a white paper on shariah based green financing and an updated environmental and social risk management framework for the central bank, commercial banks, and financial institutions. The institutional capacity component includes capacity building of regulators, bankers, and other stakeholders by participating and arranging trainings, workshops, seminars related to international climate finance. The programme will be implemented by Bangladesh Bank as delivery partner.

Total requested amount and currency USDUSD700,000 Anticipated duration 24 months

Has the country received or is expecting to receive other Readiness and Preparatory Support funding allocations (including adaptation planning) from GCF or other donors?

☐ Yes ☐ No Bangladesh has received 4 readiness supports from GCF in 2015, 2016 and 2018. The four approved readiness proposals from GCF helped to carry out the following activities: 1. Establishing and strengthening NDAs (Year: 2015, Delivery partner: GIZ) A. A dedicated website for the NDA Secretariat was developed to effectively

communicate and share information with the national and international stakeholders.

B. A strong knowledge base on international climate finance architecture with special focus on GCF and capacity for mobilizing fund for climate change activities have developed.

C. This support helped to implement policy level decisions, set-up processes and mechanisms as well as to coordinate effectively with key stakeholders.

2. Strategic frameworks for engagement with the Fund, including the preparation of country programmes (Year: 2015, Delivery partner: UNDP) A. Country coordination mechanism was strengthened for GCF related activities

particularly to implement Bangladesh’s programming priorities. B. A robust Monitoring and Evaluation (M&E) system was developed in order to

track progress, assess outcome/impact and to ensure accountability for use of resources.

3. Support for accreditation of direct access entities (Year: 2016, Delivery partner: PwC) A. It helped Local Government Engineering Department (LGED) to shift from ad-

hoc project based approach to a systematic integration of climate issues into its infrastructure planning, and implementation.

B. Moreover, it also helped LGED to enhance building resilient infrastructure which ultimately benefited vulnerable communities.

4. Formulation and Advancement of the National Adaptation Plan Process in Bangladesh (Year: 2018, Delivery partner: UNDP) A. This readiness proposal helped to strengthen the institutional coordination and

http://www.lged.gov.bd/


climate change information and knowledge management for medium- to long-term planning.

B. A decision making tools integrating climate risk was developed and piloted by planning and budget departments at national and sectoral levels.

C. Also, a nationally appropriate adaptation investments tracking mechanism was set up and financial plan for mid- and long-term CCA implementation was prepared.

Another readiness proposal will be submitted for strengthening of NDA and other executing ministries of Bangladesh.For this readiness proposal, GIZ will be delivery partner.

Though Bangladesh Bank set up its first line of refinance scheme for green initiatives/products in 2009, it has not received any other readiness funding allocations from other donors. Also, there are no existing partnerships/ongoing work with other development partners that could have synergies with this proposal.

2. BACKGROUND Bangladesh being one of the largest deltas in the world is extremely vulnerable to natural disasters as well as the adverse effects of climate change. Moreover, the high population density, poverty, illiteracy and an overall lack of institutional capacity to face the effects of climate change have made the economic potential of the country more susceptible to the risk of climate change. It can be fairly assumed that climate change will affect all segments of business and its effect will not be limited to infrastructure, product development, and investment or credit policies. Though financial sector itself does not adversely affect the environment compared with other sectors such as plastic or leather goods production, its role is highly critical considering the way it can put pressure on the polluters to make significant response to climate change. Banks and non-bank financial institutions (NBFIs), being the primary providers of fund for both corporate and consumer sectors, can influence extensively on encouraging these sectors to better prepare themselves for facing the risk and opportunities of climate change. Moreover, the development of broader economy relies considerably on the performance and stability of the financial system. Therefore, undoubtedly, a strong financial regulatory framework capable enough to face the risks of climate change is a prerequisite for sustainable economic growth. Bangladesh Bank (Central Bank of Bangladesh), the monetary authority and financial sector regulator of Bangladesh, is recognized as the pioneer among the central banks and financial sector regulators around the globe for establishing ‘Green Banking’ practices and actions in its jurisdiction. BB issued ‘Policy Guidelines for Green Banking’ for banks and financial institutions in 2011 and in 2013 respectively. Earlier in 2009, BB set up its first line of Refinance Scheme for Green Initiatives/Products. In 2014, a refinance window was opened to facilitate investments of Shariah Based Banks and Financial Institutions (Non-Bank). Based upon the experiences of implementing Green Banking Guidelines and operating refinance window for Shariah Based Banks and Financial Institutions (FIs), the necessity has been felt to have a separate framework on Green Banking for these categories of Banks and FIs. BB has been exploring the opportunities to source funding for preparing an evidence-based policy framework supplemented with capacity building activities. In 2017, Private Sector Facility of Green Climate Fund has approached Bangladesh Bank to collaborate on ‘Shariah Based Green Banking Policy Framework’. Following a long discussion between Bangladesh Bank and GCF PSF and ‘go-ahead’ from the NDA of Bangladesh, this readiness proposal has been prepared by Bangladesh Bank as the delivery partner. Bangladesh Bank has already submitted its Financial and Management Capacity Assessment application. Mentionable that, this initiative will be the first of its kind for developing dedicated framework on Green Banking for Shariah Based banks and financial institutions. One of the major problems faced by the Islamic banks and Islamic NBFIs in Bangladesh is absence of separate laws, regulations and guidelines for Islamic banking. Islamic banking sector, which accounts for more than one-fifth share of the entire banking system, has maintained a robust growth since their inception in 1983 and their economic potential is huge. However, lack of Islamic banking focused policies has made it difficult for the Islamic banking system to design and innovate products or services targeting green banking. In addition, though there are some government issued fund facilities (e.g., Islamic Investment Bond’s Fund) for the Islamic banks, the sources of Shariah compliant funds are still limited in Bangladesh. This scarcity of Islamic money market instruments has also made it difficult for the Islamic banking system to get liquidity support in times of crisis.

A strong institutional and policy framework for climate change with a view to identifying transformational


investment opportunities, which was one of the major activities of the Bangladesh GCF Country Programme, helped us to understand the requirements for a climate resilient development. However, there are still some major stakeholders in the financial system who need a more focused approach and support to face the risks and opportunities of the climate change. The GCF Country Programme identified opportunities to involve micro, small, and medium enterprises (MSMEs) and how to leverage their ability to implement Bangladesh’s programming priorities. Though it is possible for the public sector entities to engage the private sector entities to implement Bangladesh’s programming priorities with respect to GCF through enacting laws and regulations, public sector does not hold the capability to directly influence MSMEs or the corporate entities to take on climate change initiatives. Banking system, the major source of capital for the MSMEs and the corporations, are one of the main stakeholders who can directly persuade the business entities to prepare themselves to face the risks of climate change. This Shariah based green banking policy framework will accordingly complement the Bangladesh GCF Country Programme by helping the Islamic banks and NBFIs to act as a connection between the public sector regulatory framework and the private sector entities.

Bangladesh Bank is solely responsible for licensing, prudential regulation and supervision of all banks and NBFIs, including the Shariah based banks and NBFIs. To standardize the Islamic banking regulations and practices, Bangladesh Bank instructed all the Islamic banks to establish a Shariah Board consisting of all the Shariah Councils of the Islamic banks in 1997. Following this instruction, “Central Shariah Board for Islamic Banks of Bangladesh” was established in 2001. Though this board does not hold any regulatory authority, it acts as an advising body to guide the Islamic banks to control and run their operations following the Islamic Shariah.

Although Bangladesh Bank issued a Policy Guidelines for Green Banking in 2011, it was not comprehensive considering that it did not include any guidance for designing and introducing Shariah compliant products. Therefore, a framework outlining the Shariah compliant green banking and designing of green banking products is necessary for the Islamic banks and NBFIs of Bangladesh. Mentionable that, Shariah based financial institutions prefer to invest in environment friendly initiatives as Islamic Shariah has a direction to invest in sectors which are not harmful for society or environment. Thus, this proposed green banking framework will be indispensable for the Islamic financial industry.

The main aspect of this proposal is to make a paradigm shift in the policy horizon on green banking for Shariah Based Banks and FIs. This programme will conduct evidence based policy studies on Sustainable Finance (including climate finance, impact investment and socially responsible finance) Framework, Green Banking Guidelines and Green Sukuk Guidelines for Shariah based banks and FIs. One supervision manual and One Training manual will be prepared to have a sustainable framework in central bank for its supervision and capacity building activities. Three capacity building programmes will be conducted for central bank officials, officials of banks and FIs and borrowers. One Shariah based Green Banking Knowledge Hub will be established which will be a permanent set up for offering knowledge and capacity building services in this regard. One of the key objectives of this programme will be to disseminate the knowledge and best practices with other shariah based banking practicing nationswhich are also vulnerable to climate change, such as Maldives, Pakistan, Malaysia, and Indonesia.


3. LOGICAL FRAMEWORK AND IMPLEMENTATION SCHEDULE

Outcomes Baseline1 Targets Activities2

(brief description and deliverables)

Anticipated duration: 24 months24 months

Monthly implementation plan of activities3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Outcome 1: Shariah based green finance framework for the central banks and other financial institutions

Sub-Outcome 1.1: Develop a climate finance framework and green banking guidelines for Shariah based banks and financial institutions endorsed by the focus group consisting of renowned Shariah banking scholars.

0

2

1.1.1: Formation of Project Implementation Unit (PIU) in Bangladesh Bank and recruitment of consultant firm. Deliverable 1.1.1: Team formed and consultants recruited.

0

2

1.1.2: Develop a ClimateFinance (including sustainablefinance, impact investment , socially responsible finance and a financial inclusion strategy targeting women and indigenous people) Framework and prepare Green Banking Guidelinesfor Shariah based banks and financial institutions in Bangladesh. Deliverable 1.1.2: Policy Guidelines for Sustainable Finance (both for the regulator, banks and the FIs) and Green Banking are drafted.

X

0

2

1.1.3. Formation of a focus group comprising representatives of the Central Bank, representatives of civil society, a number of Islamic Banks, and the Central Shariah

X

1 For baselines rated at 1 or 2, please shortly elaborate on current baselines on which the proposed activities can be built on, processes that are in place that the current Readiness proposal can strengthen, or any gaps that the proposed activities would fill in. If more space is needed, please elaborate this in Section 2. 2 Please include tangible and specific deliverables for each activity proposed, and the timeframe (month number) in which it will be delivered to GCF. Please note that during implementation all deliverables should be included within the implementation reports for GCF consideration. 3If the duration of the proposal is longer than 24 months, please change the monthly columns to indicate 2 or 3 months each (e.g. change month “1” to month “1-2’ or “1-3”).


Board for Islamic Banks of Bangladesh 4. Adequate respresentation of women and indigenous people will also be considered. Deliverable 1.1.3: Focus group endorses the draft policies for Sustainable Finance, Green Banking and Green Sukuk.

Sub-Outcome 1.2: Assess the feasibility of Green Sukuk and develop a Green Sukuk Guideline for the Shariah based banks and FIs

0 2 1.2.1. Analyze the market and assess the feasibility of Green Sukukor Shariah compliant investments in renewable energy and other environmental friendly assetsin Bangladesh and develop a Green Sukuk Guidelines for Shariah based banks and FIs5. The experience of Malaysia and Indonesia, who are the pioneers in issuing green sukuk will be closely followed. Deliverable 1.2.1:Policy Guidelines for Green Sukuk for Shariah based banks and FIs

X

Sub-Outcome 1.3: Develop a supervision manual, arrange workshops for Shariah based banks and anda comprehensive training programmefortheCentral Bank on Shariah based Green banking and climate financing.

0 2 1.3.1. Supervision Manual for Bangladesh Bank on Shariah based Green Banking (including climate financing) Deliverable 1.3.1: Supervision Manual for Bangladesh Bank and round-table workshops for Shariah based banks and financial institutions familiarizing them with the new guideline.

X

4Central Shariah Board for Islamic Banks of Bangladesh (CSBIB) is a nonprofit research organization formed by the Islamic Banks of Bangladesh. Details can be found here: http://csbib.com/ 5Moghul, U. F., & Safar-Aly, S. H. (2014). Green Sukuk: The Introduction of Islam's Environmental Ethics to Contemporary Islamic Finance. Geo. Int'l Envtl. L. Rev., 27, 1.

http://csbib.com/


0 2 1.3.2. Develop a Training Manual and arrange a comprehensive training programme emphasizing on “Train the Trainers” for Bangladesh Bank officials on Shariah based Green Banking (including climate financing) Deliverable 1.3.2:Training Manual and comprehensive training programmefor Bangladesh Bank officials.

X

Outcome 2: Strengthened environmental and social risk management framework for the financial system

Sub-outcome 2.1: Develop a modern and updated environmental and social risk management framework for the Central Bank, banks and financial institutions

1 2 2.1.1: Identify new environmental and social risks and challenges and update the existing environmental and social risk management guideline of Bangladesh Bank incorporating the themes of ESS framework of GCF . Deliverable 2.1.1: Environmental and Social Risk Management Guidelines for Banks and FIs.

X

0 2 2.1.2: A comprehensive training programme incorporated with developing a training manual for banks and financial institutions to appraise the environmental and social risks and how to finance, and supervise the environment-friendly projects. Deliverable 2.1.2: Training manualand training programme for banks and financial institutions

X

0 1 2.1.3: Awareness campaign, workshops, seminars and trainings for relevant stakeholders including women, indigenous people, and business firms to improve the climate related financial disclosures and also to increase investment in environment friendly projects. Deliverable 2.1.3: Awareness

X


campaign, workshops, seminars, and trainings.

Outcome 3: Strengthened institutional capacity and knowledge management on climate financing

Sub-Outcome 3.1:Improve the institutional capacity of the central bank and build a strong knowledge base through participation in workshops, seminars and trainings

0 2 3.1.1: Arrange workshops and training programmes for central bank officials and participate in training, seminars, and workshops on Climate Finance (including sustainable finance, impact investment and socially responsible finance and a financial inclusion strategy targeting women and indigenous people) Deliverable 3.1.1: Sixty (60)reports on training, seminars and workshops attended

X

Sub-Outcome 3.2: Develop the capacity of banks and financial institutions through arranging workshops, seminars and training programmes

0 2 3.2.1: Arrange workshops, seminars and training programmes for banks and financial institutions on assessment, financing, supervision of environment friendly projects, and a financial inclusion strategy targeting women and indigenous people Deliverable 3.2.1: 2 workshops, 2 seminars and 4 training programmes.

X

Sub-Outcome 3.3: Develop a Shariah based Green Banking Knowledge Hubin order to share and exchange information with all interested groups

0 2 3.3.1: Set up a knowledge hub consisting of a dedicated web portal and social media presence. A physical set up of the knowledge hub will also be established in an educational institution. Partnerships will be built with international organizations specialized in Shariah based financing, such as International Centre for Education in Islamic Finance in Malaysia and Dubai Centre for Islamic Banking and Finance.

X


Deliverable 3.3.1: A multi-lingual (Bengali and English) web portal dedicated to Shariah based Green Bankinganda physical set up of the knowledge hub. A workshop on Shariah based banking for central banks from other nations.


4. ADDITIONAL INFORMATION (ONLY FOR ADAPTATION PLANNING SUPPORT)

NOT APPLICABLE


5. BUDGET, PROCUREMENT, IMPLEMENTATION, AND DISBURSEMENT

5.1 Budget plan Please complete the Budget Plan in Excel using the template available in the Library page of the GCF website. 5.2 Procurement plan Please complete the Procurement Plan in Excel using the template available in the Library page of the GCF website. For goods, services, and consultancies to be procured, please list the items, descriptions in relation to the activities in section 2, estimated cost, procurement method, relevant threshold, and the estimated dates. Please include the procurement plan for at least the first tranche of disbursement requested below and provide a full procurement plan for the entireduration of the implementation period if available at this stage. 5.3 Disbursement schedule Please specify the proposed schedule for requesting disbursements from the GCF. For periodicity, specify whether it’s quarterly, bi-annually or annually only.

☐Readiness Proposal that requires a bilateral Grant Agreement to be signed with the GCF The fund will be transferred to Bangladesh Bank in three tranches:

• The first disbursementamountingUSD260,000 will be transferred upon approval of the readiness request and effectiveness of the Grant Agreement;

• The second disbursementamountingUSD340,000 will be transferred upon submission of an interim progress report [and audited financial report]6, in form and substance acceptable to the Fund, [including an audited expenditure statement]; and

• The third disbursementamountingUSD 100,000 will be made upon submission of a completion report and financial report, in form and substance acceptable to the Fund, including an audited expenditure statement.

6For second disbursement, audited financial report and audited expenditure statement are only required for readiness and preparatory support proposals expected to last over 12 months.




6. IMPLEMENTATION ARRANGEMENTS AND OTHER INFORMATION 6.1 Implementation map Please describe how funds will be managed by the NDA and/or the Readiness Delivery Partner.

1. Project Implementation Unit (PIU) at Bangladesh Bank Adedicated Project Implementation Unit (PIU) for the implementation of GCF Readiness Project will be established in Sustainable Finance Department of Bangladesh Bank.The PIU will play the following roles:

• Act as the secretariat for Project Steering Committee (PSC) and Procurement Evaluation Committee (PEC);

• Prepare and provide all types of reports to NDA and GCF Secretariat; • Maintain coordination between the stakeholder organizations (NDA, GCF Secretariat, banks, financial

institutions, consulting firms, research organizations, other concerned departments of Bangladesh Bank, ministries and international stakeholders);

• Monitor and supervise the project activities of consulting firms, banks, financial institutions and other concerned agencies;

• Manage and disburse funds; • Arrange meeting, seminars, workshops, trainings and other necessary events; • Manage other operational activities of the project and guided tasks by PSC.

2. Tentative Structure of Project Implementation Unit (PIU) of GCF Project Implementation Unit (PIU) of GCF (Sustainable Finance Department of Bangladesh Bank) SL Designation Position in PIU Number of Position i. General Manager (GM) Project Director (PD) 1 ii. Deputy General Manager (DGM) Deputy Project Director (DPD) 1 iii. Joint Director (JD) Project Manager 1 iv. Deputy Director (DD) Deputy Project Manager 2 v. Assistant Director (AD) Assistant Project Manager 2 vi. Data Entry and Control Operator (DECO) Support Staff 1 vii. MLSS (Peon) Support Staff 1

Total 9

3. Procurement Evaluation Committee (PEC) A Procurement Evaluation Committee (PEC) will be formed. The final formation of the PEC will be approved by the Governor of Bangladesh Bank. The PEC will evaluate the quotations/proposals and overall technical aspects for the selection of procurement and provide final recommendations.

4. Project Governance The strategic leadership and governance oversight to the Readiness Project will be provided by the Project Steering Committee (PSC). The PSC will be responsible for the followings:

• Making policy decisions to steer the project and provide strategic guidance; • Ensuring effective project oversight through reviewing regular reports, commissioning and reviewing

the results of project evaluations; • Facilitating coordination/coherence with other relevant interventions on decision-making and

resources allocation for the project • Any other activity that is deemed necessary for good governance of the Readiness Project.

5. Tentative Structure of Project Steering Committee (PSC)

Project Steering Committee (PSC) SL Designation and Organization Position in the Committee i. Deputy Governor (DG) in charge of Sustainable Finance

Department (SFD) of Bangladesh Bank (BB) Chairman

ii. Executive Director (ED) in charge of SFD of BB Member


Project Steering Committee (PSC)

Bangladesh Bank

Project Implementation Unit (PIU)

GCF Secretariat NDA

(Economic Relations Division of Ministry of

Finance)

Consultants/ Consulting Agencies

Shariah Based Banks and Financial Institutions

iii. General Manager (GM), SFD of BB [Project Director (PD)] Member iv. General Manager (GM), Banking Regulation and Policy

Department (BRPD) of BB Member

v. General Manager (GM), Department of Financial Institutions and Markets (DFIM) of BB

Member

vi. General Manager (GM), Department of Banking Inspection-4 (DBI-4) of BB [Inspection for Shariah Based Banks]

Member

vii. NDA Focal Point, Economic Relations Division (ERD) of Ministry of Finance (MoF)

Member

viii. Deputy General Manager (DGM), SFD [Deputy Project Director (DPD)]

Member Secretary

6. Reporting of Project Activities The report will contain update status of fund disbursement, implementation of project activities, any other necessary remarks of the project implementation etc. Project Implementation Unit (PIU) of GCF Readiness Project will provide update status for the project implementation to the following stakeholder organizations: • Quarterly Report to GCF Secretariat • Quarterly Report to NDA • Review report to Project Steering Committee (PSC)

7. Diagram of Project Implementations Structure

6.2 Risks, monitoring and evaluation (M&E), and other relevant information

1. Potential Risks Associated with Project Implementation Potential risks have been categorized into the followings-

1.1. Risks with Project Management and Designing-

• Risks with project’s unfamiliar areas of the policy studies (Shariah Based Green Finance) would take more time than expected to design and implement.

• Risks in identifying and defining appropriate logical framework and tentative output. • Priorities may change on existing project program by Bangladesh Bank. • Internal transfer/posting of project management personnel. • Internal and external influence on decision making and resource allocation. • Potential conflict of interest in procurement. • Inadequate response from concerned stakeholders especially target banks and financial institutions.


1.2. Risks with Budget Implementation

• Mismatch in component wise budget allocation. • Potential change in the procurement cost and other resources. • Inappropriate disbursement schedule.

2. Risks Mitigation measures 2.1. Project Management and Designing-

• Ensure real time coordination and comprehensive understanding regarding objectives and timeline activities of Readiness Project and particularly Shariah Based Green Finance among banks, financial institutions, borrowers and other concerned stakeholders.

• All types of decisions regarding Readiness Proposal will be approved by the highest authority of Bangladesh Bank;

• Highly competent officials will be nominated for Procurement Evaluation Committee (PEC); • Concerned management tier of Bangladesh Bank will regularly be provided with real time updates

about project management personnel. 2.2. Budget Implementation-

• Procurement of consultants and other resources will be accomplished within the stipulated timeline; • Comprehensive disbursement schedule will be formulated compatible with component wise

implementation. 3. Audit of Project Activities

Internal and external audit will be conducted on project activities to assess compliance of implementations as of the followings- • Audit by Internal Audit Department of Bangladesh Bank • Audit by external audit firm (Commercial Audit) • Audit by Foreign Aided Project Audit Directorate (FAPAD) (Bangladesh)

4. Evaluation of Project Implementation Evaluation will be done by assessing project output and impacts. Quantifiable derivatives and indicators will be developed for evaluation. Overall evaluations will have the following sequences- • Bi-annual Evaluation by NDA • Each monitoring and measuring activity will be conducted according to project’s PAD (Project

Administration Manual)

5.1 Budget Plan

Please add rows for Outcomes, Outputs and Cost Categories as required. Additional budget categories may be added by manually typing them on the Budget Category sheet.

Consultant - Firm - Local Month 20 2,500.00 50,000.00 10,000.00 20,000.00 20,000.00

Workshop/Training - Local Per 5 600.00 3,000.00 1,200.00 600.00 1,200.00

Consultant - Firm - Local Month 16 2,500.00 40,000.00 - 10,000.00 20,000.00 10,000.00


Consultant - Firm - Local Month 16 5,000.00 80,000.00 20,000.00 20,000.00 20,000.00 20,000.00

Consultant - Firm - Local Month 16 2,500.00 40,000.00 10,000.00 10,000.00 10,000.00 10,000.00

Workshop/Training - Local Per 6 600.00 3,600.00 1,200.00 1,200.00 1,200.00

Consultant - Firm - Local Month 12 2,500.00 30,000.00 - 10,000.00 10,000.00 10,000.00




Workshop/Training - Local Per 40 200.00 8,000.00 2,000.00 3,000.00 3,000.00

Workshop/Training - International Per 20 2,000.00 40,000.00 10,000.00 20,000.00 10,000.00

Travel - Local Trip 40 100.00 4,000.00 1,000.00 2,000.00 1,000.00

Travel - International Trip 20 3,500.00 70,000.00 20,000.00 30,000.00 20,000.00


Workshop/Training - Local Per 8 5,000.00 40,000.00 10,000.00 20,000.00 10,000.00

Travel - Local Trip 100 100.00 10,000.00 3,000.00 4,000.00 3,000.00

Consultant - Firm - Local Month 20 2,500.00 50,000.00 10,000.00 20,000.00 20,000.00 -

Consultant - Firm - Local Lumpsum 1 2,500.00 6,000.00 3,000.00 1,000.00 2,000.00

Workshop/Training - Local Per 4 600.00 2,400.00 1,200.00 600.00 600.00

583,000.00 102,000.00 210,600.00 168,400.00 102,000.00 - -

Meeting and Others Per 10 800.00 8,000.00

IT Equipment Various 1 19,900.00 19,900.00

Financial Audit Per 2 5,000.00 10,000.00

Office Supplies Lumpsum 1 6,770.96 6,770.96

-

Total (per budget category)

-

-

-

-

- Project Management Cost (PMC) 7.4% requested

19,900.00 Contingency requested

6,770.96

70,000.00

14,000.00

396,000.00

40,000.00

63,000.00

8,000.00

10,000.00

-

627,670.96

270,400.00

1. Shariah Based Green

Finance Framework

1.3 Development of a Supervision Manual and

arrange workshopsCDM

2. Environment and Social Risk

Management Framework

2.1 Development of an updated environmental

and social risk management frameworkEFGN

123,600.00

93,000.00

3. Institutional Capacity and

Knowledge Management

Framework

1.1 Climate finance frameworkAK

1.2 Feasibility study and development of Green

Sukuk GuidelinesBL

219,600.00

93,000.00

43,000.00

58,400.00 3.3 Shariah based Green Banking Knowledge

HubHI

Percentage of

PMC requested:

7.4391%

Breakdown (per budget category)

Consultant - Firm - Local

Workshop/Training - International

Workshop/Training - Local

Consultant - Individual - International

Consultant - Individual - Local

Professional Services – Companies/Firm

IT Equipment

Office Supplies

Travel - International

Travel - Local

Project Management Cost (PMC)Up to 7.5% of Total Activity Budget

700,000.00$

645,160.96 Sub-Total (Total Outcome Budget + Contingency + PMC)

17,490.00

583,000.00

3.0%

Total Outcome Budget

44,670.96

Delivery Partner Fee (DP) - Up to 8.5% of the Sub-Total

Total Outcome Budget + PMC

Total Outcome Budget

Audio Visual & Printing

Outcomes

Disbursement Plan

Budget Categorieschoose from the drop-down list

Unit 6m 24m

Detailed Budget (in US$)

18mTotal Budget(per sub-outcome)

36mTotal Budget

(per budget category)Unit Cost 12m 30m# of Unit

Total Budget(per outcome)

Total Project Budget (Total Activity Budget + Contingency + PMC + DP)

Audit Fee

53,000.00

Meeting and others

Financial Audit

3.1 Institutional Capacity of Central bankJ 122,000.00

3.2 Capacity Building of banks and FIsG 90,000.00

FOR GREEN CLIMATE FUND SECRETARIAT'S USE ONLY

FOR GREEN CLIMATE FUND SECRETARIAT'S USE ONLY

54,838.68

44,670.96

5.2 Procurement Plan

Item Item Description Estimated Cost (US$) Procurement Method

Thresholds

(Min-Max monetary value for which indicated

procurement method must be used)

Estimated Start Date Projected Contracting Date

IT Equipment Photocopier 5,000.00 Limited Tender $2,500 - $18,750 March, 2019 January, 2019

IT Equipment 1 Color, 2 Black/White 1,600.00 Request for Quotation $ 188 - $ 2,500 March, 2019 January, 2019

IT Equipment Scanner 600.00 Request for Quotation $ 188 - $ 2,500 March, 2019 January, 2019

IT Equipment Projector 4,000.00 Request for Quotation $ 188 - $ 2,500 March, 2019 January, 2019

IT Equipment Projector Screen 400.00 Request for Quotation $ 188 - $ 2,500 March, 2019 January, 2019

IT Equipment Camera and Accessories 800.00 Request for Quotation $ 188 - $ 2,500 March, 2019 January, 2019

IT Equipment 3 Laptop 7,500.00 Limited Tender $2,500 - $18,750 March, 2019 January, 2019

Workshop/Training - International Registration cost (20 x $2,000) 40,000.00 Direct Not Applicable March, 2019 February, 2019

Workshop/Training - Local Registration cost (40 x $200) 8,000.00 Limited Tender $2,500 - $18,750 April, 2019 March, 2019

Workshop/Training - LocalVenue and Refreshments $5,000 x 8

programs40,000.00 Limited Tender $2,500 - $18,750 April, 2019 March, 2019

Workshop/Training - LocalVenue and Refreshments 12 pax x

$50 x 25 meetings15,000.00 Request for Quotation $ 188 - $ 2,500 April, 2019 March, 2019

Meeting and Others Venue and Refreshments (PMC) 8,000.00 Request for Quotation $ 188 - $ 2,500 April, 2019 March, 2019

Office Supplies Stationaries and Others 6,770.96 Request for Quotation $ 188 - $ 2,500 March, 2019 January, 2019

Travel - International Airfare x 20 + Accommodation 70,000.00 Direct Not Applicable March, 2019 February, 2019

Travel - International Airfare x 5 10,000.00 Direct Not Applicable March, 2019 February, 2019

Travel - Local Various x 140 14,000.00 Direct Not Applicable February, 2019 January, 2019

Sub-Total (US$) $ 231,670.96

Consultancy Services

Consultant - Firm - Local Sustainable Finance Guidelines 50,000.00 Open Tender $18,750+ March, 2019 January, 2019

Consultant - Firm - Local Green Sukuk Guidelines 40,000.00 Open Tender $18,750+ March, 2019 January, 2019

Consultant - Firm - Local Supervision Manual 80,000.00 Open Tender $18,750+ March, 2019 January, 2019

Consultant - Firm - Local Training Manual 40,000.00 Open Tender $18,750+ March, 2019 January, 2019

Consultant - Firm - LocalEnvironmental and Social Risk

Management (ESRM) Guidelines30,000.00 Open Tender $18,750+ March, 2019 January, 2019

Consultant - Firm - Local ESRM Training Manual 30,000.00 Open Tender $18,750+ March, 2019 January, 2019

Consultant - Firm - Local ESRM Workshops and Seminars 30,000.00 Open Tender $18,750+ March, 2019 January, 2019

Consultant - Firm - Local Capacity Building of Banks and Fis 40,000.00

Consultant - Firm - Local Set up knowledge hub 50,000.00 Open Tender $18,750+ June, 2019 February, 2019

Consultant - Firm - Local Physical set-up of Knowledge Hub 6,000.00 Open Tender $18,750+ June, 2019 February, 2019

Sub-Total (US$) $ 396,000.00

For goods, services, and consultancies to be procured, please list the items, descriptions in relation to the activities in Section 3, estimated cost, procurement method, relevant threshold, and the estimated dates. Please include the procurement plan for at least the first

tranche of disbursement requested below and provide a full procurement plan for the entire duration of the implementation period if available at this stage.

Goods and Non-Consulting Services

5.2 Procurement Plan

Item Item Description Estimated Cost (US$) Procurement Method

Thresholds

(Min-Max monetary value for which indicated

procurement method must be used)

Estimated Start Date Projected Contracting Date

IT Equipment Photocopier 5,000.00 Limited Tender $2,500 - $18,750 March, 2019 January, 2019

IT Equipment 1 Color, 2 Black/White 1,600.00 Request for Quotation $ 188 - $ 2,500 March, 2019 January, 2019

IT Equipment Scanner 600.00 Request for Quotation $ 188 - $ 2,500 March, 2019 January, 2019

IT Equipment Projector 4,000.00 Request for Quotation $ 188 - $ 2,500 March, 2019 January, 2019

IT Equipment Projector Screen 400.00 Request for Quotation $ 188 - $ 2,500 March, 2019 January, 2019

IT Equipment Camera and Accessories 800.00 Request for Quotation $ 188 - $ 2,500 March, 2019 January, 2019

IT Equipment 3 Laptop 7,500.00 Limited Tender $2,500 - $18,750 March, 2019 January, 2019

Workshop/Training - International Registration cost (20 x $2,000) 40,000.00 Direct Not Applicable March, 2019 February, 2019

Workshop/Training - Local Registration cost (40 x $200) 8,000.00 Limited Tender $2,500 - $18,750 April, 2019 March, 2019

Workshop/Training - LocalVenue and Refreshments $5,000 x 8

programs40,000.00 Limited Tender $2,500 - $18,750 April, 2019 March, 2019

Workshop/Training - LocalVenue and Refreshments 12 pax x

$50 x 25 meetings15,000.00 Request for Quotation $ 188 - $ 2,500 April, 2019 March, 2019

Meeting and Others Venue and Refreshments (PMC) 8,000.00 Request for Quotation $ 188 - $ 2,500 April, 2019 March, 2019

Office Supplies Stationaries and Others 6,770.96 Request for Quotation $ 188 - $ 2,500 March, 2019 January, 2019

Travel - International Airfare x 20 + Accommodation 70,000.00 Direct Not Applicable March, 2019 February, 2019

Travel - International Airfare x 5 10,000.00 Direct Not Applicable March, 2019 February, 2019

Travel - Local Various x 140 14,000.00 Direct Not Applicable February, 2019 January, 2019

Sub-Total (US$) $ 231,670.96

Consultancy Services

Consultant - Firm - Local Sustainable Finance Guidelines 50,000.00 Open Tender $18,750+ March, 2019 January, 2019

Consultant - Firm - Local Green Sukuk Guidelines 40,000.00 Open Tender $18,750+ March, 2019 January, 2019

Consultant - Firm - Local Supervision Manual 80,000.00 Open Tender $18,750+ March, 2019 January, 2019

Consultant - Firm - Local Training Manual 40,000.00 Open Tender $18,750+ March, 2019 January, 2019

Consultant - Firm - LocalEnvironmental and Social Risk

Management (ESRM) Guidelines30,000.00 Open Tender $18,750+ March, 2019 January, 2019

Consultant - Firm - Local ESRM Training Manual 30,000.00 Open Tender $18,750+ March, 2019 January, 2019

Consultant - Firm - Local ESRM Workshops and Seminars 30,000.00 Open Tender $18,750+ March, 2019 January, 2019

Consultant - Firm - Local Capacity Building of Banks and Fis 40,000.00

Consultant - Firm - Local Set up knowledge hub 50,000.00 Open Tender $18,750+ June, 2019 February, 2019

Consultant - Firm - Local Physical set-up of Knowledge Hub 6,000.00 Open Tender $18,750+ June, 2019 February, 2019

Sub-Total (US$) $ 396,000.00

For goods, services, and consultancies to be procured, please list the items, descriptions in relation to the activities in Section 3, estimated cost, procurement method, relevant threshold, and the estimated dates. Please include the procurement plan for at least the first

tranche of disbursement requested below and provide a full procurement plan for the entire duration of the implementation period if available at this stage.

Goods and Non-Consulting Services

with Bangladesh Bank for People's Republic of Bangladesh€¦ · Bangladesh Bank (Central Bank of Bangladesh), the monetary authority and financial sector regulator of Bangladesh,

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