Additional Annual Development Funds for Upazila Parishad

Additional Annual Development Funds for Upazila Parishad

jICAUpazila Governance and Development Project (UGDP) is an initiative to provide development funds to all eligible Upazila based on their governance performance with an ODA loan of the Government of Japan

The Japan International Cooperation Agency (JICA) and the Economic Relations Division (ERD), the Ministry of Finance signed a Loan Agreement worth approximately 965 croe Taka (JPY 14,725 million, about USD 123.74 million) on 13 December 2015 to implement the Upazila Governance and Development Project (UGDP). The project period is from December 2015 and February 2022.The Local Government Division (LGD) of the Ministry of Local Government, Rural Development and Cooperatives is the executing agency of the Project.

The proceed of the loan will be used to enhance the capacity of Upazila Parishad to deliver more effective and responsive public services to citizens through providing additional development fund for necessary infrastructure (education and medical facilities, water and sanitation, agriculture and livelihood development, rural roads etc.) reflecting the demands of citizens and series of capacity development opportunities to stakeholders. The Project, therefore, directly contributes to implementing the government policy, as stipulated in the Seventh Five Year Plan and the Local Government Act (Upazila Parishad), strengthening the function of Upazila Parishad, thereby improving the livelihood of the citizens living in rural Bangladesh.

The major component of the Project is the provision of development funds in the form of the Performance-based Allocation (PBA) aiming to cover all Upazilas (gradual expansion). PBA for Upazilas will be applied through prescreening and scoring with selected performance indicators. The average size of PBA is about 50 Lakh Taka per Upazila per year. The number of target Upazila will begin with 100 (Bangladesh financial year 2016/2017 onward) and increase by 200,300, 400 every year, covering all 489 Upazilasby the year of 2020. Selection of target Upazila will be based on governance performance indicators as described below,which will be conducted by external auditors deployed by the Project. The external auditors of the Project will come to all Upazila Parishad to conduct annual governance performance assessment. The first external audit will implement in December 2015 and January 2016. Cooperation for annual performance assessment from Upazila Parishad stakeholders including Upazila Chairmen, Vice-chairmen, members, UNOs and others will be highly appreciated.

Governance Performance Indicators of the Upazila Governance and Development Project

Minimum conditions (Upazilasthat fulfill all these conditions shall be eligible for ranking)

  1. Status of Upazila Parishad Meetings
  2. Status of Upazila Parishad Committees
  3. Existence of Budget and Development Plans
  4. Status of ADP Implementation and Reporting

Performance Indicators (Prescreened Upazilas shall be ranked according to their total scores derived from these indicators)

  1. Institutional Capacity
    • Upazila Parishad Committees are properly held and recorded
    • NBD officers attend respective Upazila Parishad Committees meetings
    • Project Selection Committee (PSC) is established and functioning
    • Development proposals are submitted from Union Parishad, UDCC (Union Development Coordination Committee), SCs and NBDs
  2. Financial Management Capacity
    • Annual Budget is prepared and approved as stated in Upazila Parishad Act
    • Asset register is properly maintained and updated
    • Annual Financial Statement is prepared
    • Gap between the initial budget and the actual expenditure is minimized
  3. Planning and Budgeting Capacity
    • Five-year Development Plan with priority project list is prepared
    • Development fund is used as per Upazila Parishad Development Fund Using Guidelines 2014
    • Development project sites are inspected by Upazila officers
    • Upazila Project Proposal (UPP) is prepared for each project and discussed at SCs or Upazila Parishad meeting
  4. Transparency and Accountability
    • Union Development Coordination Committees (UDCCs) are held in each Union Parishad
    • Annual Budget and Annual Development Plan are displayed for public scrutiny on notice boards and websites
    • Information Focal Point is assigned and such assignment is made public
    • Citizen Charter is published

The results of the governance performance assessment of each Upazila Parishad will be revealed in the Web-site of the Project. Also, the name of selected Upazila Parishad and the entitled amount of the additional development funds from the Project will be publicized. It is expected that the Project will facilitate the better performance of Upazila Parishad and the additional development funds will contribute to improving the living standard of local areas in Bangladesh.

For further information about the Project, please contact with the Union Parishad Helpline in NILG, telephone number is 16256. Regarding the governance performance assessment survey of the Project, please send an e-mail in a written form to:

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