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A. Project Components13. The project has four components that are summarized below. The detailed project description is provided in Annex 1. Component 1: Restructuring CPTU and Institutionalizing e-GP (US$9 million) Component 2: Enhancing Digitization of Public Procurement (US$28 million) Component 3: Professionalizing Procurement and Citizen Engagement (US$18 million) Component 4: Digitizing Project Implementation Monitoring (US$5 million) Component 1: Restructuring CPTU and Institutionalizing e-GP 14. This component aims to restructure the CPTU in order to enhance its regulatory power and institutionalize e-GP to function as a service provider with professional resources. Two major sub-components are envisaged. 15. Component 1.1: Restructuring CPTU and Furthering Policy Reform: Presently, CPTU, the procurement nodal agency of the government, is a unit of IMED created in 2002 under the Ministry of Planning (MOP), with appropriate reference in the Public Procurement Act (PPA). CPTU is fully funded from revenue budget of the Government. It has 25 officials and is headed by one Director General, supported by three Directors. Despite the challenging environment, CPTU, over the years, has demonstrated commendable commitment in reforming the public procurement environment by implementing two consecutive IDA credits with demonstrated outcomes. As per the Public Procurement Act 2006 (PPA), CPTU has the mandate to regulate and monitor public procurement for about 1300 organizations. Given such a gigantic mandate combined with the recent exponential growth in the usage of e-GP, CPTU is constrained with its capacity in terms of its current legal structure, limited staffing, and inadequate analytical and research capability. In this context, the ongoing PPRPII commissioned a detailed strategic framework study in 2016. Based on its recommendations, CPTU is expected to be transformed into an Authority (also referred to as Public Procurement Authority) as a regulator of public procurement by no later than 24 months after the effectiveness date of the project. Nevertheless, given the nature of its transformation, further analysis and review will be undertaken during the early stage of implementation of the project. The proposed Authority is likely to be an autonomous body, regulated by the decisions of a Board of Governors, within the Ministry of Planning. To manage its day to day functions, the Authority may have a management structure headed by an Executive Chairman. 16. Component 1.2: Institutionalizing e-GP: With the introduction of e-GP and subsequent roll-out, a large part of its task has taken a paradigm shift and has become more complex and multi-dimensional over time. CPTU is now performing various roles that are not compatible with each other, such as, regulating public procurement, generating revenues, and operating and maintaining the e-GP system. For efficient and sustainable functioning of e-GP, it requires appropriate institutionalization enabling it to act as a service provider. Under the existing structure, even for e-GP, CPTU has to follow the entire government procedures to create posts, fix salaries, recruit officials, and procure critical technology items. Such lengthy procedure impacts CPTU’s efficiency in responding to the service standard and need of a system like e-GP. This is not tuned with the nature and functions of the e-GP system that requires highly specialized IT-based infrastructure and technical staff. Therefore, CPTU needs to institutionalize and transform the e-GP operation self-sustainable by using a service provider model. There could be two options to develop this service provider model: (i) operate e-GP under a corporate structure; or (ii) outsource the e-GP operation to a third party. Under the first option, both the e-GP service provider and the proposed authority would be functioning under the operational control of the Ministry of Planning. With the outsourcing option, it would continue the operation and maintenance of the e-GP system as it is now. For this option, CPTU will need to substantially strengthen its own technical staffing with adequate capacity to monitor the outsourced vendor. These options will be further analyzed and reviewed during the early stage of the project. Component 2: Enhancing Digitization of Public Procurement 17. This component aims to enhance the scope of e-GP for all public sector organizations across the country covering system as well as technical requirements including updating of e-GP modules with robust contract management process, fully operationalizing two data centers, and business modeling. Two major sub-components are as follows: 18. Component 2.1: Expansion of e-GP system: The expansion of e-GP system will have two elements: physical expansion of the scope of e-GP and the enhancement of e-GP features. Under the first element, the existing system will be expanded to all potential ministries covering other procuring organizations, beyond the existing four PSPSOs where e-GP is already fully functional. Accordingly, the new data center with enhanced capacity covering the entire country’s need is in place. While all 1300 PSOs will use the e-GP system, the project will measure e-GP expansion (bid invitation to contract award) for about 900 procuring organizations, under the identified 28 NSPSOs, given their relatively high volume of procurement. The second element of enhancement of e-GP system will include new features and its integration with other systems over time. For example, modules for suppliers’ database and performance rating, international competitive bidding, framework agreement, electronic catalogue, reverse auction, and consulting services. Also, the e-contract management module including payments will be updated as described in the next section. To interface with other e-Government system, the users’ identifications profiles will be linked to the national personal identification system, including possible tax identification system. The interface with other government system will be explored gradually. The project will provide logistic, technical and implementation support for the management, operation, and maintenance of the e-GP system. 19. Component 2.2: Implementation of Contract Management: Currently, under the ongoing PPRPII, the e-GP system is in full use up to the contract award by the PSPSOs (RHD, LGED, BWDB, and BREB). The proposed project will make especial efforts to upgrade the features of the existing contract management module including geotagging, asset tracking, online payment, critical activity- path management, and open contracting data standard. Also, parameters of contract performance, including sustainable procurement KPI’s (economic, social and environmental) will be included. Taking advantage of the complete e-GP system which is an end-to-end solution (procurement planning up to the final payment), the PSPSOs will then focus to implement this updated e-contract management module. It is expected that within the project period, the PSPOs will fully implement e-contract management. Necessary training to develop technical skills will also be included. Subsequently, the PSPSOs will take lead in providing training to the other organizations (NSPSOs) in introducing the contract management module. A separate citizen web portal including open contracting data will be developed and managed by CPTU. The contract management module will have provision to integrate with the citizen web portal to provide real time contract data. Component 3: Professionalizing Procurement and Citizen Engagement 20. This component aims to improve procurement management capacity of the SPSOs, both in terms of public procurement practices and the use of e-GP. Also, the bidding community will be included as part of the capacity enhancement program. The sub-component will encourage creation of knowledge base, analytical tasks, and research and development. Concurrently, it will attempt to create a citizen monitoring mechanism of local level contracts with specific reference to rural roads, education, and health service deliveries. Five subcomponents are as follows: 21. Component 3.1: Improving Procurement Management of SPSOs, IMED and CPTU: This subcomponent would ensure that each SPSOs will have a minimum level of capacity to deal with procurement activities satisfactorily in accordance with the provisions of the Public Procurement Act and international good procurement practices. A core group of staff within the SPSOs will be developed and provided with rigorous training for skill enhancement to make them capable of handling complex procurement issues. The group is expected to form a sustainable core procurement unit within SPSOs to handle the procurement process in a more professional manner and play the role of knowledge bank for the respective SPSO. 22. Component 3.2: Capacity Building and Professionalization of Procurement: This subcomponent aims at professionalizing procurement with greater institutionalization. CPTU will have, among others, mandate to sustain the capacity development initiatives for public procurement, and will also possess the right to revoke/down grade the professional accreditation, if necessary. Necessary accreditation framework and empowerment will be articulated in the amendment of PPA and the proposed Authority law. Activities will include: (i) developing and implementing an accreditation program with different tiers of professional certification; and (ii) enhancing capacity of SPSOs and other sector agencies by designing and implementing a comprehensive capacity development program. To allow the participants to practice procurement as a profession, the tier of professionals will be as follows: Tier-1: Public Procurement Associate; Tier-2: Public Procurement Professional; Tier-3: Advanced Public Procurement Professional; and Tier-4: Fellow Public Procurement Professional. Besides, there will be a separate stream of specialization for procurement data analytics, named as, Procurement Data Specialist. The program will cover various long and short procurement training courses for targeted audience. It is envisaged that the main procurement training and professionalization will be materialized through a twinning arrangement between Engineering Staff College Bangladesh (ESCB) and internationally reputed training institution(s). The core competence course for international procurement accreditation program will continue. 23. Component 3.3: Disclosure of Public Procurement Information in Open Data Format: The expected outcome of this sub-component is improved transparency with better information to the citizens in an open and user-friendly formats. Popularly known as “Open Contracting”- this approach promotes collaborative and constructive engagement between governments, private sector, civil society, and development partners. It refers to norms and practices promoting improved disclosure of contracting data and information including planning, bidding, contract award, implementation of contract, performance and asset tracking. In Bangladesh’s context, as an integrated part of the e-GP system, the government would disclose relevant information concerning public contracting including grievances and remedial action taken by the government or the contractors. It is expected to be developed following the Open Contracting Data Standard (OCDS). In order to facilitate access to, and use of, the disclosed information, the system will feature a public-facing web portal for disclosure of contracting data and information. 24. Component 3.4: Citizen Engagement: This sub-component aims to promote transparency, accountability, and efficiency in public spending by enabling multi-stakeholder engagement. Building on the experience of PPRPII, Citizen Engagement (CE) at various levels – both local and national -- will be enhanced and institutionalized throughout the country. Specific attention would be provided in areas of gender sensitivity and mainstreaming of public dialogue and beneficiary feedback using traditional and innovative new ICT tools/techniques. With the support of a comprehensive strategic communication program, the CE goals will be attained through: (i) Public Private Stakeholder Committee (PPSC) dialogue, (ii) Government-Tenderers’ Forum (GTF), and (iii) Site-Specific Citizen Monitoring (SSCM) activities. A citizens’ portal for monitoring public spending will be explored to integrate innovative ICT tools in the form of a monitoring and feedback portal that would help promote dialogue to ensure transparency and accountability in public spending vis-à-vis better service delivery. 25. Component 3.5: Strategic Communication: This sub-component will strengthen the systems and functions of different forms of strategic and stakeholder engagement communication under the project by adopting a comprehensive Strategic Communication Program (SCP). The SCP will focus on a set of objectives primarily to promote behavior change, public awareness and knowledge sharing, advocacy, and key stakeholder engagement. These would include communication support for and around the CPTU or future Authority, expansion of e-GP, open contracting efforts and two-way communication among multi-stakeholders including procuring entities, line ministries, oversight agencies, businesses, media, academia, beneficiaries. Activities would include: social media campaign, engagement of beneficiary groups, public debates, education program, awareness campaign, e-GP orientation for different stakeholder groups including media and CSOs, media award and fellowship, collaboration with Information Commission. It will involve the establishment of feedback loop mechanisms to ensure that government and contractors act upon the feedback received from the different stakeholders to improve procurement performance. Component 4: Digitizing Project Implementation Monitoring 26. This component aims to strengthen implementation monitoring of development programs/projects at national level using digital technology. Two sub-components are as follows. 27. Component 4.1: Enhancing Project Management Information System: At the national level, program/project implementation monitoring and evaluation is the responsibility of IMED of the Ministry of Planning. Currently, this is done mostly in manual way with limited use of IT-based on-line framework, not consistent with the rapidly changing huge development programs’ need of the country. Also, the methodology to monitor and review implementation program is lagging real time benefits to the implementing ministries. Recognizing the deficiencies, the GoB envisages streamlining the process and making it on-line through a single platform connecting all public sector organization with the state-of-the art technology. The project management information system (PMIS) captures only financial progress. IMED wants to expand the capacity of PMIS to collect and monitor project implementation data as well as financial. The PMIS will be enhanced for connecting digitally all ministries and implementing agencies that will capture not only financial but also physical progress including the use of geo-tagging at field level. The PMIS will collect contract management data from the CPTU’s e-GP system. 28. Component 4.2: Reinforcing Monitoring Skills and Data Analytics: The project will be looking to improve the overall capacity for monitoring and evaluating projects through the digitization of IMED activities and the collection of information from the e-GP system, contract management system and other electronic sources and systems. It will enhance the capacity development of their resources to ensure they have the skills and tools to effectively monitor and evaluate projects including guidelines, data analytics, and reporting. Currently, IMED has over 1300 projects including the ten fast-track projects to monitor and evaluate with limited resources and tools available. 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