WB approves $250mn to strengthen governance and public sector efficiency in Bangladesh

The World Bank’s Board of Executive Directors has approved a $250 million financing package to help Bangladesh improve governance, transparency, and efficiency across key government agencies.

The funding will support the strengthening Institutions for Transparency and Accountability (SITA) Project, which aims to modernize essential public sector functions and enhance institutional capacity in line with the government's reform agenda.

The project will focus on five critical government bodies:

• Bangladesh Bureau of Statistics (BBS)
• National Board of Revenue (NBR)
• Planning Division
• Bangladesh Public Procurement Authority (BPPA)
• Office of the Comptroller and Auditor General (OCAG)

“This investment will leverage digital tools to streamline operations, improve service delivery, and reduce corruption, allowing Bangladesh to build public institutions capable of supporting a growing economy,” said Gayle Martin, World Bank Interim Country Director for Bangladesh. She emphasized that enhanced transparency and efficiency would improve the quality and accessibility of public services, strengthening public trust.

According to a World Bank statement, the SITA project will:

• Modernize tax administration to boost revenue mobilization and compliance
• Improve public investment management and financial oversight
• Advance digital public procurement by developing a second generation of e-GP
• Strengthen and digitize the public audit system
• Provide reliable data and statistics for informed policy-making

These reforms aim to ensure more efficient use of public resources and improve fiscal sustainability, with a focus on delivering better outcomes for citizens.

In parallel, the World Bank and the Government of Bangladesh are preparing a development policy credit, set for Board discussion later this month. This credit will further support reforms in revenue collection, banking sector oversight, data systems, procurement, auditing, and social program delivery.

“The SITA project and the upcoming policy credit together will offer both the institutional infrastructure and policy framework needed for comprehensive reform,” said Souleymane Coulibaly, the World Bank’s Lead Country Economist and Task Team Leader for the project. “By taking a holistic approach across five key institutions, this initiative will significantly improve government effectiveness—an essential driver of sustainable growth.”

Since Bangladesh’s independence, the World Bank has committed over $45 billion in grants and concessional credits, making the country one of its largest recipients of low-interest funding in recent years.