International Development Association (IDA), the World Bank’s concessionary arm, will provide $34.5 million for additional financing of the ongoing Second Public Procurement Reform Project (PPRP-II).

Economic Relations Division Secretary Abul Kalam Azad WB Country Director Johannes Zutt signed a loan agreement on behalf of the Bangladesh government and the global lender respectively at the ERD on Monday.

With this additional financing, the WB is providing a total support of $58.6million for the PPRP-II.

The additional financing will help scale up electronic procurement (e-GP) and on-line procurement performance monitoring in key public agencies, said a WB press release.

Bangladesh has been steadily improving its procurement environment since 2002, with the support of two consecutive WB financed projects, it said.

PPRP-II has piloted electronic procurement in the four government agencies that account for more than half of the total government procurement.

These are: Roads and Highways Department, Local Government Engineering Department, Rural Electrification Board and Bangladesh Water Development Board.

Since PPRP-II piloted electronic procurement and online procurement performance monitoring systems, 65 percent small value contracts at decentralized levels were awarded within initial bid validity period in 2012, up from only 10 percent in 2007. 100% of bids invitations are now published in newspaper, up from 70% in 2005.

“The Government of Bangladesh has made progress in improving its procurement in recent years, and the World Bank continues actively to support the Government in this effort,” said Zutt, WB country director for Bangladesh and Nepal.

The additional financing will deepen electronic procurement at these four agencies and also scale up capacity development in 20 more agencies, covering health, education, power and public works. Further, expansion of procurement performance monitoring system (PROMIS) will enable improved efficiency of government bidding.

The credit from the IDA has 40 years to maturity, including a 10-year grace period; and carries a service charge of 0.75 percent.