Public Sector Development Project

Preparation, Approval and Revision Process

Shish Haider Chowdhury

 What is a Project
A planned piece of work that has a specific goal,
purposes, objectives and output and that usually
requires certain inputs and specific time;

Logical Framework of a project:

• Goal
• Purpose/Objectives
• Output
• Input
 Types of projects
• Investment Projects
Investment Projects are three types
 Completely Government own funded project;

 Development Partner’s funded project (which may include or

not include GOB fund);

 Organization’s own funded project (Autonomous Organizations)

 Types of Project
Technical Assistance Project (TA Project)
TA projects are three types
 Development Partners/ GOB or both funded TA project
under public sector;

 Development Partner’s funded Regional TA project;

 Development Partner’s funded TA project under private

sector;
 Types of Project
In addition to the above types of investment and
technical assistance projects, we have another two
types of projects in our planning process :

 Survey/Feasibility Study Project under

development budget;
 Specific types programme under revenue budget:
 Types of Project

Investment Project
• Projects having mainly physical components, which we
termed as capital investment components such as
construction of power stations, Industries, buildings, roads,
highways, culverts and bridges etc which usually have
physical existence;

• Having or not having TA components;

• Includes in the ADP as main programme;

 Types of projects
Technical Assistance
Improvement of institutional capacity, transfer
of technology and development of human
resources, including;
• Consultancies,
• Local/ foreign training/ fellowship,
• Technological services of experts etc;
 DPP/TAPP/FSP Format

Investment Project
• Development Project Proposal (DPP)

Technical Assistance Project

• Technical Assistance Project Proposal (TAPP)

Survey / Feasibility Study Project

• Survey/ Feasibility Study Project Proposal (FSP)
 Project Formulation and
Approval Process
– Executive Agency/Division/ Ministry prepares the
DPP for investment project;

– Project Scrutiny/Examination Committee (PSC)

chaired by the Secretary of the respective
Division/Ministry reviews the project proposal;

– If the project is accepted by the PSC and the

project has the provision of manpower, than the
project proposal sends to the Manpower Review
Committee of Finance Division for approval of
project manpower;
 Project Formulation and
Approval Process
– Manpower Review Committee of Finance
Division must provide their recommendations
regarding manpower within 15 days after
receiving the proposal of project manpower;
– Implementing Agency revised /re-casted the DPP
as per recommendation of the manpower
committee and resubmit the DPP to the
respective ministry/ Division;

– If needed IRR and EIRR calculation sheet attached

with the DPP;
 Project Formulation and
Approval Process
– For all road transport sector project, Project Appraisal
Framework (PAF), Project Appraisal Report (PAR) and
Appraisal Summary Table (AST), Hydrological and
Morphological study report ( if the project is 100 m above
bridge project) must be attached with the DPP;

– Executing Ministry submit the re-casted DPP to the

Planning Commission within 10 days after receiving the
DPP from Implementing Agency;

– The concerned Wing/ Sector-Division of planning

Commission examines the DPP and prepares Working
Paper for Project Evaluation Committee (PEC) meeting;
 Investment Project
Approval Process

Major criteria for appraisal in the Planning

Commission
a. Relevancy of the project with the national priority
b. Overall sectoral allocation as well as MTBF and
existing projects of the agency;
c. Relevancy of the project with the line of 7th five
years Plan, Sectoral Plan and other National
Documents;
 Investment Project
Approval Process
Major criteria for appraisal in the
Planning Commission
d. Impact on revenue budget after completion of the project;
e. Examination of the project duration
f. Consideration of necessary fund mobilization etc
g. If the project is a next phase of an earlier project then the
Evaluation Report of previous phase prepared by IMED/any
other organizations is needed to be considered;
 Investment Project
Approval Process
• If the Planning Commission (PC) is not satisfied with
the proposal, PC may return it to the Ministry/
Division within 30 working days with specific
comments;
• Incorporating the recommendations of PC, DPP
must be submitted to the Planning Commission
within 25 working days
• Planning commission submits DPP to the project
evaluation Committee
• For PEC meeting notice needs to be issued at least
seven working days before the meeting
 Investment Project
Approval Process
• Minutes of the PEC meeting have to be issued
within 10 working days of the meeting

• If Recast is needed the Ministry will send the recast

DPP to PC by reflecting recommendations of the
PEC

• If PEC recommends cost rationalization by IMED,

IMED needs to do it within 15days and sends it the
ministry
 Investment Project
Approval Process
• Ministry sends DPP to the Agency for recast, Ministry
and Agency normally get 25 days for recasting the
DPP but for any specific cause get maximum 40 days.

• If recast DPP is not sent within 40 days then the

project will be automatically void.

• After receiving recast DPP/ since Issuing date of

minutes, Sector Division place the DPP to ECNEC or
Planning Minister for approval with in 10 days
 Investment Project
Approval Process
• If the total Project cost is within TK. 50 core,
approving authority is given to the Minister for
Planning;

• If the total project cost is more than TK. 50 core,

approving authority Executive Committee of the
National Economic Council (ECNEC);

• An approval order for each DPP has to be issued

within 3 days ;
 Summary of Approval Process and
Time line for Investment Project
Steps
Steps of DPP
Steps
Preparation
of DPP Preparation
and Approvaland Approval
Specific timeSpecific
limit given
time limit
in the
given
planning
in
No. Process the planning Process
DPP1 prepares
DPP by
prepares
IA and by IA and
submit to submit
the Ex. to the Ex.
Ministry /Div.
Ministry /Div.
2 Ex. Ministry/Div. scrutinizes the DPP No time limit for the Ministry/
Ex. Ministry/Div.
through Project Scrutiny Committee (PSC) Div.for
scrutinizes the DPP No time limit thereceiving
after Ministry/the
Div.DPP
after
through Project
of the Scrutiny Committee (PSC) receiving the
Ministry/Div. DPP
from IA.from IA.
of the Ministry/Div.
3 If project requires manpower, Executing 15 days after receiving the
Ministry manpower,
If project requires send s the DPP to the Manpower
Executing 15 days afterproposal
receiving the( Manpower
proposal
Review Committee of Finance Division committee
Ministry send s the DPP to the Manpower ( Manpower committee should should provide
provide
Review Committee of Finance Division their specific recommendation
their specific recommendation within the
within the specific time)
specific time)
4 IA revised/re-casted the DPP as per No time limit for IA
recommendation
IA revised/re-casted the DPPofastheperManpower No time limit for IA
Review Committee
recommendation of the Manpower
Review Committee
 Summary of Approval Process and
Time line for Investment Project
Step Steps of DPP Preparation and Approval Specific time limit given in
No. the planning Process
5 After receiving the updated DPP from IA, Ex. 10 days after receiving the
Ministry/Div. sends the DPP to the Planning DPP from IA
Commission
6 Planning Commission examine the DPP and if 30 days after receiving the
the project not accepted as per criteria of the DPP from Ministry/Div.
government , Planning Commission returns the
DPP to the Ex. Ministry/Div. with specific
comments;

7 Planning Commission may return the DPP to 30 days after receiving the
the Ex. Ministry/Div. for resubmission with DPP from Ministry/Div
specific comments .
8 Ex. Ministry/Div. resubmit the DPP by 25 days after receiving the
incorporating the suggestions/changes DPP from Planning
provided by the Planning Commission; Commission.
 Summary of Approval Process and
Time line for Investment Project
Step Steps of DPP Preparation and Approval Specific time limit given in
No. the planning Process
9 Planning Commission submit the 30 days after receiving the
updated/revised/re-casted DPP to the Project DPP from Ex. Ministry/Div.
Evaluation Committee (PEC) meeting for
recommendation for approval

10 If 30 days over after receiving the DPP from PEC committee notice with
the ex. Ministry, Planning Commission can not working paper should be
return the DPP to the Ex. Ministry. Planning issued before seven days
Commission should process the DPP for PEC of the meeting.
with specific comments

11 Planning Commission circulate the PEC 10 days after PEC Meeting.

committee Meeting Minutes ;
12 Ex. Ministry/Div. resubmit the DPP to the 25 days after receiving the
Planning Commission by incorporating the PEC meeting minutes from
suggestions/changes provided by the PEC; Planning Commission.
 Summary of Approval Process and
Time line for Investment Project
Step Steps of DPP Preparation and Approval Specific time limit given in
No. the planning Process
13 If any cost rationalization needed as per 15 days after receiving the
decision of the PEC, IMED/Planning minutes of the PEC .
Commission rationalized the project cost.

14 After receiving the rationalized cost from 25 days after receiving the
IMED, Ex. Ministry /Div. updated/revised/re- rationalized cost from
casted the DPP and submit to the Planning IMED.
Commission .

15 If Ex. Ministry/ Div. fails to submit the updated DPP to the Planning
Commission within 40 days after receiving the minutes of the PEC and
cost rationalization minute of IMED , the approval process of the project
must be considered automatically void, and this project will not be
considered further for approval.
 Summary of Approval Process and
Time line for Investment Project
Step Steps of DPP Preparation and Approval Specific time limit given in
No. the planning Process
16 After receiving the updated DPP as per 10 days after receiving the
decision of the PEC and IMED , Planning Updated DPP from Ex.
commission process the DPP for final approval Ministry.
from
• Planning Minister if the project cost within
50 crore;
• ECNEC if the project cost 50 crore and
above

Total Time required if we follow all the 185 Working Days ( 6

above steps of approval process month and 05 days)
 Technical Assistance (TA) Project

• Implementing Agency (IA)/Executive Agency prepares

Technical Assistant Project Proposal (TAPP) and
submits to the Ministry;

• The planning Wing/Branch of the Ministry preliminary

examines acceptability of the proposal;

• If the Project cost is within TK. 10 Crore, planning

Wing/ Branch of the Ministry submits TPP to the
Departmental Special Project Evaluation Committee
(DSPEC) for recommendation;
 Technical Assistance (TA) Project

• Minister of that Ministry approves TPP on

the basis of DSPEC recommendations

• This process shall be completed within 30

days by the Ministry from the receiving date.
 Technical Assistance (TA) Project

• If the Project cost is above TK. 10 Crore, Executing

Ministry sends TAPP to the Planning Commission;
• Respective Sector Division of PC submits the TAPP
to the SPEC meeting;
• Minister for Planning approves TAPP on the basis of
recommendation of SPEC;
• This process shall be completed within 45 days by
PC from the receiving date;
 Revision of projects

• Project should not be revised more than two times;

• Third time revision allowed in case of special need

but third time revision should be processed with the
prior approval of the Minister for Planning;
 Why revision

• If planned objectives are not achievable and have to

change;
• If cost is increased due to currency fluctuation
and/or CDVAT cost changed;
• If national pay scale and other allowances are
enhanced;
• If physical items’ cost is increased or decreased;
• If design needs to be changed;
 Why revision

• If have to include new items, change in personnel,

vehicle and mode of finance
• Two times revision allowed
• No post facto approval
• If need 3rd revision- Prior permission from Planning
Minister for processing
 First revision

• Prepare in RDPP format.

• Ministry approve Revised Project cost up to 10%
increase/decrease under certain conditions with the
recommendation of DPEC ( objectives, mode of finance,
source of fund, vehicle , manpower unchanged and inclusion
of new Item)
• If project cost increase / decrease upto 20%, approval
authority Planning Minister
• If project cost above 20% and total project cost within 50
crore, approval authority Planning Minister
• All other cases ECNEC approves
 Second revision

• If project cost up to 20%, approval authority Planning

Minister
• If project cost above 20% and total project cost within 50
crore, approval authority Planning Minister
• All other cases ECNEC approve
 Revision of TAPP

• If Revised Project cost increase/decrease up to 25%; Concern

Minister may approve with the recommendation of DSPEC
• If the project cost is increased more than 25%; approval is
done by the Planning Minister.
• Two times project revision is allowed
• No post facto approval
• If need 3rd revision- Prior permission from Planning Minister
for processing
 Second revision

• Planning Minister approve it

• within 45 days
• Any revision with time extension needed the
recommendation of ERD