MUNICIPAL GOVERNANCE AND SERVICES PROJECT IMPROVING SERVICE DELIVERY IN SMALL CITIES APPROVAL DATE: END DATE: TOTAL COMMITMENT: IMPLEMENTING AGENCY BASIC January 14 June 30 $410 million Local Government Engineering Department, INFORMATION 2014 2020 Bangladesh Municipal Development Fund OVERVIEW In South Asia, Bangladesh continues to witness one of the most rapid and unplanned urbanization. Yet, the cities, especially the district towns and municipalities offer inadequate infrastructure and low levels of urban services. They face severe challenges such as inadequate technical and financial capacities, insufficient administrative capacity, low accountability, and inadequate basic urban services that constrain them from developing into competitive and modern cities. The Municipal Governance and Services Project (MGSP) helps to make the participating municipalities and city corporations become strong, responsive and inclusive local government institutions providing better urban services and responding promptly and effectively to emergencies. The project is benefitting around 3.4 million people living in 26 Urban Local Bodies (ULBs), mostly located in main growth corridors along national highways. 86 CHALLENGE TOWARDS THE FUTURE Since urban areas contribute almost 60 percent of GDP of Bangladesh, managing urbanization effectively is The World Bank is assisting the Government, critical for achieving the country’s vision of becoming an upper-middle income country by 2031. through the LGED and the BMDF, with resources and capacity building in supporting the ULBs The ULBs had historically limited capacity to respond to urbanization challenges. The 335 ULBs (11 City meet their gaps and needs. In the coming years, Corporations and 324 Pourashavas) are responsible for providing basic urban services, such as roads, drains, as the country continues on its growth path streetlights, municipal markets, transport terminals etc. But most of the ULBs do not have or use standard -- with concomitant rising urbanization – there urban planning and management tools, such as strategic plans or master plans. They often lack the will be an increasing demand for improved required skills to respond to the evolving challenges of urban growth and hence cannot effectively provide urban infrastructure and services. The World quality services to their residents. Furthermore, many ULBs lack financial resources needed to develop Bank will continue its support for building up infrastructure. Generally, the residents are not involved in planning process and hence the municipalities’ an effective urban management system in ULBs investment programs do not always reflect the needs of the community. and improve the quality of life for the urban population. APPROACH In response to urban governance challenges, MGSP is helping develop an accountable and inclusive local governance system. MGSP provides operation and maintenance grants to the pre-selected 26 ULBs for routine maintenance of municipal assets. The project is supporting participating municipalities gain access to resources by providing block grants for further infrastructure investments. To qualify, ULBs are required to meet performance targets, such as municipal planning, social accountability, public financial management and revenue mobilization. The project also supports the national government agencies responsible for addressing the increasing challenges of rapid urbanization in Bangladesh. It has provided training to officials of 26 ULBs for e-GP, financial management, social and environmental monitoring, contract management, etc. Further, the project is supporting nationwide computerization of ULBs. Around 63 urban local bodies have received financing through a mix of grants and loans for improvement of basic urban services. RESULTS Benefiting 3.4 14,604 256 km 160 km 84 km 667 bridges/ 65 street million people meters of road of urban roads of drains of footpath culverts lights living in 26 Urban works/retaining wall improved improved constructed constructed constructed Local Bodies completed THE WORLD BANK IN BANGLADESH | 87