Local Government Engineering Department (LGED) is working simultaneously for rural and urban development of the country. Among various GOB departments, LGED is playing a pioneer role in urban sector development. It is efficiently and successfully implementing and managing Annual Development Program (ADP) as well as International/Foreign aided Projects and Project related Programs.
The Government of Bangladesh (GOB) received a credit from the International Development Association (IDA) to implement the Municipal Services Project (MSP) through Local Government Engineering Department (LGED). The Project was scheduled to be implemented over a 5-year period in two phases. The first phase (a 2-year duration) covered improvement /rehabilitation of existing infrastructure of two City Corporations (Khulna and Rajshahi) and seventeen Paurashavas viz. Naogaon, Joypurhat, Nilphamari, Saidpur,Dinajpur, Parbatipur, Kurigram, Chuadanga, Narail, Satkhira, Mongla, Perojpur, Patuakhali and Gopalganj under Rajshahi and Khulna Division and three Hill Tract Paurashavas viz. Bandarban, Khagrachhari and Rangamati. The second phase would cover another three years of the project under the then proposed Bangladesh Municipal Development Fund (BMDF). All City Corporations and Paurashavas would be eligible for BMDF funding after fulfillment of some criteria.
Apart from infrastructure and environmental improvement, the project had to address the issues relating to institutional capacity building of the Urban Local Government Bodes (ULGB) governments (Paurashava & City Corporation).).
In fact, the Urban Local Bodies (especially the Paurashavas) of Bangladesh depend much upon GOB allocation for discharging their functional responsibilities. Their own revenue base is limited. Collection of Taxes, Rates and Fees are not up to much. They receive capital transfer whether or not they have demonstrated capacity to maintain operating budget for a project. The lack of operation and maintenance budget poses a serious threat to the sustainability of the project.
On the other hand, an efficient ULB management requires rigorous strengthening of both institutional and financial capacity of the ULBs. And for this purpose, it is imperative to bring changes in inter-governmental administrative and fiscal relations, investment planning and financing, local resource mobilization, budget provision, financial management and accountability.
The Central Government wants to play a significant part in ULB capacity building through provision of technical support, performance monitoring and creating an enabling policy framework and in fact here lies the main objective of formation and development of Municipal Support Unit under MSP.