Project Management in

Bangladesh
Welcome to Lecture No.9 &10
Project Management in Bangladesh
Introduction: There is close relationship
between national planning and
development projects of a country. Sector
wise planning is prepared in the light of
national planning and various projects are
taken in the light of sector wise planning.
Organizational Structure of National
Planning in Bangladesh
The sitting govt. is the highest authority of policy
formulation. The main function of this organ is to
take development planning and policy
formulation in this regard. At present, Jatio
Sansad is considered as the legal policy
formulation authority in the organizational
structure of national planning in Bangladesh.
The responsibility of planning formulation,
implementation and monitoring is delegated
upon the Ministry of Planning.
Organizational Structure of National
Planning in Bangladesh
Ministry of Planning is consisted of three departments.
They are: a) Planning Dept. b) Implementation,
monitoring and evaluation Dept. (IMED) and c)
Statistical Dept.
Planning Commission as central planning and policy
determining body works under the Planning Dept. of
Ministry of Planning. Planning commission performs its
function through 6 (six) dept. and 30 (thirty) wings.
IMED works as central authority for evaluating the
progress of ongoing development projects. Bangladesh
Statistics Bureau works under the Statistics Department.
 Project Classifications in
Bangladesh
In Bangladesh, projects are divided on the basis of
mainly 3 different criteria: a) Magnitude of
Investment b) Projects Benefits c) Project
Priority .
A) Magnitude of Investment :
Category-A: All projects costing up to Tk. 2 Crore-
Minister in-charge of the concerned Ministry on
the recommendation of Departmental Project
evaluation Committee.
 Project Classifications in
Bangladesh
Category-B: All projects costing over TK. 2 crore
and up to TK. 5 crore- Minister in-charge of
Planning on the recommendation of the Planning
Commission Project Evaluation Committee
(PEC).
Category-C:All projects costing more than those
included in ‘B’ category- Executive Committee of
the National Economic Council (ECNEC) on the
recommendation of the PC, PEC and the
Planning Minister.
 Project Classifications in
Bangladesh
B) Project Benefits: On the basis of obtained
benefits from projects, projects are divided into 3
classes. They are:
Type ‘x’: Self-sustaining projects i.e. projects which
earn revenue through sale of output (goods or
services). These may also be called directly
productive. Examples: Projects in Industry
Sector.
Type ‘Y’: Productive but non-revenue earning
projects i.e. projects which give rise to tangible
output not to themselves but to other parties.
 Project Classifications in
Bangladesh
Notable examples are Irrigation and Land
Development Projects in ‘Y’ Type Projects.

C) Type ‘Z’: Service sector projects i.e.

projects which do not give rise to tangible
output but provide service benefits to the
society e.g. educational institutions,
hospitals etc.
 Project Classifications in
Bangladesh
C) Priority Projects: In allocation of resources,
some projects are given a higher priority than
the others based upon their importance for the
country. On the basis of priority of resources
allocation in the annual development programs,
projects are divided into two categories i.e. Core
and Non-core projects.
Core Projects: The projects which are given
priority in resources allocation considering the
national importance are called core projects.
 Project Classifications in
Bangladesh
Core Projects: The following projects are included
as core projects:
# Only “approved” “revised unapproved” and “PEC
recommended” projects’
# Adequate availability of foreign and local funds
# Project nearing completion,
# ‘X’ type and infrastructural development projects,
# Shorter gestation period,
# Foreign aided projects. Excluding cores rest of
are called non-core projects.
Project Management in Bangladesh
Authorities involved in Management of
Development Projects in Bangladesh
1. Planning Commission (PC): The Bangladesh
Planning Commission inherited its identity from
the Planning Board of East Pakistan and later
the East Pakistan Planning Department. After
the independence the Planning Department was
upgraded to a full-fledged Planning Commission
in January, 1972 by a resolution of the
Government.
Project Management in Bangladesh
Structure of Planning commission: PC consisted of
the following members:
Chairman-1
Deputy Chairman-1
Members-6
Minister in-charge of Planning operates the
functions of PC as vice chairman. Head of the
Government is the chairman of PC. The
secretary of Planning Division works as the
secretary of PC. Six members of PC is being
appointed considering the educational
Project Management in Bangladesh
qualification, experience and technical efficiency
from different sectors of the country. There are
six divisions under PC. These six divisions are
divided into 30 wings.
Functions of Planning Commission:
a) Preparation and periodic review and evaluation
of national plans- annual, five years and
perspective for the economic and social
development of the country in accordance with
the socio-economic objectives of the Govt. of
Bangladesh.
Project Management in Bangladesh
b) Preparation of ADP within the frame-work of national
plan and formulation of policies for the implementation of
national plan.
c) Advice govt. on all economic policies including the
foreign aid relating policy and all kinds of resources
distribution.
d) Study of important economic issues and formulation of
economic policies and measures.
e) Undertaking and promoting economic research and
initiating surveys and investigations needed for effective
planning.
Project Management in Bangladesh
f) Tendering advice on programs and projects with
a view to determine to their consistency with the
national objectives.
g) Co-ordination of development activities of
various ministries and their agencies where such
activities are inter-related or inter-dependent.
i) Liaison with international organizations and
matters relating to treaties and agreements with
other countries and world bodies relating to
subject allotted to this Division etc.
Project Management in Bangladesh
2. National Economic Council (NEC):
NEC is the highest political authority for
development activities. It formulates the national
policy and objectives for long term plans.
The NEC consists of all members of the council of
ministers is chaired by the Head of the
Government. The Deputy Chairman of PC and
Governor of Bangladesh are special invitees to
its meeting. Members of PC and secretaries in-
charge of all Divisions are expected to be
attendance during the meeting.
Project Management in Bangladesh
Functions of NEC: The NEC fulfills the following
functions:
a. To provide overall guidance at the stage of the
formulation of Five Year Plans, Annual
Development Programs and Economic
policies.
b. To finalize and approve plans programs and
policies.
c. To review progress of implementation of
development programs.
Project Management in Bangladesh
d. To take such other decisions and actions as
may be considered necessary for socio-
economic development.
e. To appoint such committees as deemed fit to
assist the NEC in the due discharge of its
responsibilities.
3. Executive Committee of the National
Economic Council (ECNEC)
Organizational Structure: ECNEC is the executive
agency for implementation of the policies
Project Management in Bangladesh
decided by NEC (National Economic Council). It is
the highest level in the nation, which comes into
contact with the approval of an individual project
and is the ultimate approving authority. The
ECNEC is headed by the Prime Minister, who is
the convener of the meeting. Ministers of
Industries, Finance, Commerce, Works and
ministers of the concerned ministries, whose
subject is under consideration are all members
of ECNEC.
Project Management in Bangladesh
The following official are required to attend the
ECNEC meeting:
• Cabinet Secretary
• Member (Programs), Planning Com. (PC)
• Member (General Economic Division), PC
• Member, Concerned Division, PC
• Governor, Bangladesh Bank
• Secretary, External resources division
Project Management in Bangladesh
• Secretary, Finance Division
• Secretary, Planning Division
• Secretary, IME Division
• Secretary of the concerned ministry
• Chief of the General Staff
Secretarial services is provided by ECNEC.
Functions of ECNEC:
The following functions are provided by ECNEC:
Project Management in Bangladesh
• To consider and approve developments projects
costing above TK. 25 Crore on the basis of
report from PEC and PC;
• To review the progress and implementation of
development projects on the basis of reports
from IMED;
• To consider proposals for investment companies
as private or joint ventures or with foreign
participation;
• To monitor the economic situation and review
Project Management in Bangladesh
overall performance of the economy and related
policy issues;
• To consider performance of statutory
corporations and specially their financial results;
• To consider rates, fees and prices of public
utility services or products of public enterprises.
Project Management in Bangladesh
4.Implementation Monitoring and Evaluation
Division:
One of the four executive divisions of the Ministry
of Planning is Implementation Monitoring and
Evaluation Division known as IMED in short. It
has a very important association with the entire
project life cycle.
It was set up in January,1975. It is headed by a
Secretary or an additional Secretary.
Project Management in Bangladesh
The organization is the central monitoring unit for
the development project activity in the public
sector of the entire country.
Functions of IMED:
• Evaluation of the implementation of development
projects,
• Collection and compilation of the data for
preparing monthly, quarterly, annual and
periodical reports and statements for the
information of the Head of Government,
Project Management in Bangladesh
Ministers, advisors concerned and other agencies.
• Supervision and field inspection of projects and
such other co-ordination work, as may be
necessary for the removal of problems, if any, in
consultation with the Ministries/Agencies
concerned.
• To render such advisory or consultancy services
to the Ministries/Agencies concerned, as and
when necessary for the implementation of the
projects according to schedule.
Project Management in Bangladesh
• To submit inspection reports to the Head of
Government and Ministers/advisors concerned
after the inspection of the projects, highlighting
the problems and suggesting remedial measures
where necessary.
• Any functions as may be assigned to the IMED
by the Head of Government, Planning Minister,
ECNEC from time to time.
Project Management in Bangladesh
Methods of Operation Of IMED
IMED is a central institution of the country. It
provides information on progress of work to
ECNEC and top level decision makers of Govt.
during the implementation of project. IMED
pursues the following methods of operation:
1. Progress Reporting System: IMED developed
some charts for collecting progress report of on
going projects from project mgt authority/Dept.
or Ministry. The charts contain information on
progress of projects in number and quantity.
Project Management in Bangladesh
Description of the Chats:
a. IMED-01/76 quarterly/monthly progress report:
This report consists of two parts. Part-1 is a
monthly repot and descriptive in nature. Part-2
is a quarterly report and detailed & exclusive in
nature. It gives detailed report on physical
target and progress of projects.
b. IMED-02/76-annual progress report: This
report also consists of two parts.Part-1
presents annual report on different aspects.
Project Management in Bangladesh
Part-2 contains description on quarterly target plan
for upcoming year.
c. IMED-03/76-bar chart progress report: It
indicates the progress of project implementation.
It has two parts. Part- A presents physical and
financial target of projects of five years. Part-B
shows wing based physical and financial target
and monthly progress. Submission of this chart
is not compulsory.
Project Management in Bangladesh
d. IMED-04/76- Project completion report: It is a
brief report on overall aspects of implemented
projects. It presents information on estimated
cost, date of approval, date of commencement,
total cost of projects, sources foreign loan,
yearly cost, wing based physical and financial
progress, evaluation of cost-benefit of project
etc.
2. Field Inspection Method: IMED has own
inspection team. These team go for field
inspection to projects included in ADP
Project Management in Bangladesh
approved by planning ministry. They provide
frequent field inspection to projects taken on the
basis of national priority. The assigned inspector
is to submit progress report through filling up
specific charts after each inspection.
3. Review Meeting Method: The information
gathered from progress report and inspection
report is place before the review meeting where
information are verified and decision is taken.
Two types of review meeting is in vogue.
Project Management in Bangladesh
First one is monthly co-ordination meeting where
minister of respective ministry chairs the meeting
and practical idea on progress of projects and
problems, if any there, is given to him.
Second one is the quarterly meeting of ECNEC
where performance of ministry/agency is
discussed based on the report of IMED. Minister
of Finance chairs the meeting. IMED places
bottlenecks of existing policy formulation, if any
there, before this meeting.
Project Management in Bangladesh
Problems of and Solutions to Project
Management in Bangladesh
1. Crowding of Projects: Local demand fulfillment
and political commitment force towards
crowding of projects. Govt. fails to afford
enormous projects in a particular year. It
increases the project duration, cost and raise
inflation.
Project Management in Bangladesh
2. Over Dependence on Foreign Aid: Most of
development projects are taken based on
foreign aid commitment in Bangladesh. Donors
fails to disburse committed aid/fund in time. It
affects the progress of project even often leads
to shutdown project’s activities.
3. Lack of Objectivity: Experts find the absence of
specific objectives in long term, five years and
annual plans of Bangladesh. Weakness in
Identification of specific beneficiary groups and
suitable programs for them complicate projects.
Project Management in Bangladesh
4. Lack of co-ordination and co-operation: There is
lack of co-ordination and co-operation among
ministry, department and agency relating to
projects initiation, processing, approval and
implementation. Non-cooperation attitude and
lack of coordination of work lead to delayed
completion & escalation of projects.
Dissatisfaction/conflict is seen among ministries
and bureaucrats about the role of PC in
formulating economic policy and project
approval. It affects the proper implementation.
Project Management in Bangladesh
5. Delay in Approval of Projects: No specific
authority but ECNEC, PEC, SPEC are the
assign authority for project processing and
approval. A few projects see the light of final
approval within time limit. It makes delay the
commencement of projects, donors loss their
interest or fails to disburse committed fund.
Complication in project approval procedure and
lack of sincerity of concerned authorities are
mainly responsible for this situation.
Project Management in Bangladesh
6. Lack of Constant Monitoring: Most of the
development projects are prepared and
implemented by the executive agency of the
Ministry. Except a few selected large projects
IMED is not capable to monitor and evaluate all
projects which are implemented by individual
ministry.
7. Absence of Sound Plan and Political System:
Lack of consistence between estimated cost and
project duration exist in Bangladesh.
Project Management in Bangladesh
Moreover culture of political unrest is a common
phenomena in Bangladesh that force the Govt.
in power to quit leaving her initiated projects
incomplete. Newly elected government
indiscriminately cancels most of the projects
taken by the previous government that intensify
the situation.
8. Conflict and Co-ordination Problems at the
Local Level: Conflict between locally elected
people representatives and govt. bureaucrats
working in decentralized administration,
Project Management in Bangladesh
lack of local peoples’ participation in development
plan formulation, lack of professional efficiency
of decision makers and infrastructural facilities
prevents the project implementation in
Bangladesh.
9. Lack of Skilled Manpower and sound techniques
: Development experts opine that shortage of
skilled manpower and strategic shortcoming is
more responsible than unavailability of
resources for development plan implementation.
Project Management in Bangladesh

Thank You Very Much