document of the world bank for official use...
TRANSCRIPT
Document of The World Bank
FOR OFFICIAL USE ONLY
Report No: 60607-BD
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED CREDIT
IN THE AMOUNT OF SDR 123 MILLION
(US$195 MILLION EQUIVALENT)
TO THE
PEOPLE’S REPUBLIC OF BANGLADESH
FOR THE
IDENTIFICATION SYSTEM FOR ENHANCING ACCESS TO SERVICES (IDEA) PROJECT
April 14, 2011
Poverty Reduction, Economic Management, Finance and Private Sector Development South Asia Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
ii
CURRENCY EQUIVALENTS Exchange rate effective March 31, 2011
Currency Unit = Bangladeshi Taka (Tk) Tk. 72.80 = US$1
US$1.5855 = SDR 1 GOVERNMENT FISCAL YEAR: July 1 – June 30
ABBREVIATIONS AND ACRONYMS
ACC Anti-Corruption Commission M&E Monitoring and Evaluation ASN Statement of Audit Needs NCB National Competitive Bidding BBS Bangladesh Bureau of Statistics NIDCC National ID Coordination Committee BEC Bangladesh Election Commission NIDS National identity system BNP Bangladesh National Party NIRD National Identity Registration
Department BRIS Birth Registration Information System NIRW National ID and Registration Wing BVRS Bangladesh Voter Registration System NSAPR National Strategy for Accelerated
Poverty Reduction C&AG Comptroller and Auditor General ORAF Operational Risk Assessment
Framework CAS Country Assistance Strategy PAC Project Audit Committee CPTU Central Procurement Technical Unit PCC Project Coordination Committee D-BD Digital Bangladesh PDO Project Development Objective DEVIS Decentralization of the Electronic Voter
Identification System PERP Preparation of Electoral Voter List
Project DPL Development Policy Lending PFP Procurement Focal Points DRS Disaster Recovery Site PMO Prime Minister’s Office ECA Environment Conservation Act PPA Public Procurement Act ECR Environmental Conservation Rules PPR Public Procurement Rules 2008 e-ID electronic Identity P-RAMS Procurement Risk Assessment
Management System FBS Fixed Budget Selection PRMP Procurement Risk Mitigation Plan FMS Financial Management Specialist QBS Quality-based selection GoB Government of the People’s Republic of
Bangladesh QCBS Quality and Cost Based Selection
GPN General Procurement Notice RFI Request for Information ICT Information and communication
technology RTI Right to Information
ISC Implementation Support Consultancy SSS Single Source Selection I SP Implementation Support Plan UNDB United Nations Development Business IUFR Interim unaudited financial reporting UNDP United Nations Development Program LCS Least Cost Selection VPN Virtual Private Network LGD Local Government Division
Regional Vice President: Isabel M. Guerrero Country Director: Ellen Goldstein Sector Director: Ernesto May Sector Manager: Joel Hellman Task Team Leader: Junghun Cho
iii
Bangladesh Identification System for Enhanced Access to Services (IDEA) Project
Table of Contents Data Sheet ...................................................................................................................................... vi I. Strategic Context ..................................................................................................................... 1
A. Country and Sector Context ................................................................................................ 1
B. Higher Level Objectives contributed by the Project ........................................................... 2
II. Project Development Objectives............................................................................................. 3
A. Project Beneficiaries ........................................................................................................... 3
B. PDO Level Result Indicators .............................................................................................. 4
III. Project Description .................................................................................................................. 4
A. Project Components ............................................................................................................ 4
B. Lending Instrument ............................................................................................................. 8
C. Project Cost and Financing ................................................................................................. 9
D. Lessons Learned and Reflected in the Project Design ........................................................ 9
IV. Implementation ..................................................................................................................... 11
A. Institutional and Implementation Arrangements .............................................................. 11
B. Results Monitoring and Evaluation .................................................................................. 12
C. Sustainability..................................................................................................................... 12
V. Key Risks and Mitigation Measures ..................................................................................... 13
VI. Appraisal Summary .............................................................................................................. 15
Annex 1: Results Framework and Monitoring ............................................................................. 20
Annex 2: Detailed Project Description ........................................................................................ 25
Annex 3: Implementation Arrangements ..................................................................................... 32
Annex 4: Operational Risk Assessment Framework (ORAF) ..................................................... 47
Annex 5: Implementation Support Plan (ISP) ............................................................................. 50
Annex 6: Team Composition ........................................................................................................ 52
Annex 7: Economic and Financial Analyses ................................................................................ 53
Annex 8: Terms of Reference for Project Management Support Consultancy ............................ 59
Annex 9: Terms of Reference for Communication Program Consultancy ................................... 68
iv
Bangladesh Identification System for Enhanced Access to Services (IDEA) Project
DATA SHEET
Date: August 10, 2010 Country Director: Ellen A. Goldstein Sector Director: Ernesto May Sector Manager: Joel Hellman Team Leader(s): Junghun Cho Project ID: P121528 Lending Instrument: Specific Investment Loan
Sector(s): Information technology (40%); General public administration sector (60%) Theme(s): Other public sector governance (70%); Technology diffusion (30%) EA Category: C
Project Financing Data: Proposed terms: [ ] Loan [ *] Credit [ ] Grant [ ] Guarantee [ ] Other:
Source Total Amount (US$M) Total Project Cost:
Co-financing: Borrower: Total Bank Financing:
IBRD IDA
New Recommitted
197.01 2.01 195.00 195.00 195.00 0.00
Borrower: Government of the People’s Republic of Bangladesh Responsible Agency: Bangladesh Election Commission Contact Person: Dr. Muhammed Sadique, Secretary in -charge Telephone: 880-2-8115631 Fax: 880-2-8111030 Email:[email protected] Estimated Disbursements (Bank FY/US$ m)
FY Y-1 Y-2 Y-3 Y-4 Y-5 Annual 19.17 17.57 54.60 51.87 51.80 Cumulative 19.17 36.73 91.33 143.20 195.00
Project Implementation Period: Start: July, 2011; End: June, 2016 Expected effectiveness date: July, 2011 Expected closing date: June 30, 2016 Does the project depart from the CAS in content or other significant respects? Yes No If yes, please explain: Not applicable
v
Does the project require any exceptions from Bank policies? Have these been approved/endorsed (as appropriate by Bank management)? Is approval for any policy exception sought from the Board?
Yes No Yes No Yes No
If yes, please explain: Not applicable
Does the project meet the Regional criteria for readiness for implementation? Yes No If no, please explain: Project Development Objective: To establish a secure, accurate and reliable national ID system in Bangladesh that serves as the basis for more efficient and transparent service delivery. Project description:
Component 1. Regulatory Framework for the National Identification System and Integration into Service Delivery (US$9.06ml): This component will support the legal and policy framework governing the issuance and updating of identification numbers for Bangladeshi citizens over age 18 and maintenance of the database of identification numbers and associated biographical data. It will also develop a legal framework and provide operational support for the utilization of this database for identity verification and other purposes by public and private service providers.
• Regulatory and Policy Framework for National Identification System • Integration of the National ID system into management of service delivery in selected agencies • Provision of Identity Verification Services to public and private entities.
Component 2. Operation and Management of the National Identification System (US$145.97ml): This component will provide technical capacity to operate the National Identification System, including support for maintenance and upgrading the system’s database, and issuance of secure ID cards. It will support the improvement of business process management of the National Identification Wing (NIDW) of the Bangladesh Election Commission, the entity charged with managing the National Identification System. The component will include the procurement of hardware, software, design consultancies and management support for all the IT facilities of the NIDW. • Datacenter & Disaster Recovery Site • Data communications network • Decentralized Technology infrastructure • Enhancement of Database Contents • NID Card Production and Delivery to Citizens
Component 3. Capacity Building, Communication, and Overall Project Management (US$39.96ml): This aims to develop the capacity of the NIDW to ensure sufficient human and financial resources for the operation and sustainability of the NID system. It also will provide comprehensive change management and a communication program for managing citizens’ expectations of the NID System to facilitate a smooth process for NID card replacement and use of the system by service providers.
• Comprehensive capacity building program for the newly established NIDW • Change management and communications
vi
Safeguard policies triggered? Environmental Assessment (OP/BP 4.01)
Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11)
Indigenous Peoples (OP/BP 4.10)
Involuntary Resettlement (OP/BP 4.12)
Safety of Dams (OP/BP 4.37) Projects on International Waters (OP/BP 7.50)
Projects in Disputed Areas (OP/BP 7.60)
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
vii
Conditions and Legal Covenants: (TO BE FINALIZED DURING APPRAISAL/NEGOTIATON)
Financing Agreement
Reference Description of
Condition/Covenant Date Due
Section IV B 1 of Schedule 2 Effectiveness of the rules and regulations for the implementation of the National Identity Registration Act, 2010
Withdrawal condition
1
Bangladesh Identification System for Enhanced Access to Services (IDEA) Project
I. STRATEGIC CONTEXT
A. Country and Sector Context
While it has achieved sustained economic growth and progress towards Millennium Development Goals, Bangladesh continues to face challenges in providing services to its large population. The quality and quantity of many services remains weak for many citizens, particularly the poor. One contributing factor to this weakness is the inability of service providers to identify reliably and consistently the users or beneficiaries of their services in order to process transactions efficiently and, in the case of public sector benefits, determine and target beneficiaries. Procedures for compiling lists of beneficiaries leave much to discretion of a number of agencies which do not coordinate among themselves. Systems for tracking the delivery of benefits to the intended persons are also weak, relying on statements of multiple tiers of officials against the various lists. Many citizens who qualify for benefits are excluded owing to these shortcomings.
The Government of Bangladesh has made improvement of service delivery, particularly through the expanded use of information and communication technologies (ICT). The Government has adopted a vision for a “Digital Bangladesh by 2021” which involves the transformation of the public sector through e-governance measures and more generally Bangladeshi society through improved connectivity. Digital Bangladesh envisages mainstreaming ICT as a pro-poor tool to reduce poverty, establish good governance, ensure social equity, and prepare the country for climate change. The gains through greater utilization of ICT, particularly among often inefficient public service sectors, are potentially substantial. When combined with other reforms to re-engineer business processes, ICT can lay a foundation for greater efficiency and transparency as well as reduce opportunities for corruption.
A key element of the Digital Bangladesh agenda is to promote effective and efficient e-services through development of a National ID (NID) system as a foundation. The NID system will improve the government’s capacity to identify citizens accurately which in turn will assist in compiling data to make better planning decisions and promote inclusion. The core information available through the system will help track a wide range of transactions undertaken by the public sector, from the collection of tax revenue to delivery of social benefits, as well as systematize a wide range of record-keeping, from land cadastres to utility connection.
The NID system also provides a means for citizens to claim benefits which are due to them and, when combined access to information as per the country’s Right to Information Act, monitor the delivery of services. In combination with potential reforms in the service sectors (which may be prompted in part by the potentially greater transparency and accountability resulting from use of NIDs), the NID system may transform the way in which citizens interact with the Government in the receipt of services. At the same time, the NID system should
2
facilitate private sector development through lowering costs in the management of data as well as simplifying procedures for individuals applying for services.
Bangladesh’s system for identification of individuals received a major boost as a result of a drive to improve the voter registry in preparation for the national elections in 2008. These preparatory efforts, and subsequent maintenance of data, brought about greater transparency and reliability in the identification of voters. With support from several donors in a project implemented by UNDP, a number of important building blocks for developing a NID system were put in place. These include: a database comprising 87 million voting-age citizens, experience with the issuance and updating of a simple voter ID card, construction of nearly 500 upazila-level offices, and associated management experience. The NID system were the key factor in ensuring the credibility of the elections which were subsequently lauded by many as by far the most fair and democratic in Bangladesh’s history.
The Government is keen to build on the widely trusted system for identification of citizens that resulted from the elections. It has continued to develop the database of citizens through additions and multiple checking against possible duplication. A National ID and Registration Act was adopted in early 2010 which provided the legal framework for the NIS including the designation of a National ID and Registration Wing (NIRW) within the Bangladesh Election Commission (BEC) with authority to administer the NID System.
A full-fledged NID system is expected to bring several benefits. The verification capacity
of a system could counter leakage in the provision of a wide range of government benefits if combined with other reforms to reduce discretion and integrate ICT for better business process. Unique identification of citizens will allow all public service entities to build and maintain much more reliable databases regarding recipients which in turn could provide better grounds for policy making, targeting of benefits, and record-keeping in general, such as land cadastres. Enhanced ID cards will be able to be utilized directly in delivery of benefits further guarding against leakage and improving targeting.
In addition, private sector service providers will have reduced transaction costs due to
greater reliability and efficiency in identifying clients, maintaining their own databases of customers, and fulfilling know-your-customer legal requirements. Finally, as evidenced by the success of the existing simple voter ID cards, the distribution of quality ID cards as a secure means of identity proof is a tangible measure of recognition of individuals by the government and contributes to increased confidence among citizens in the State.
B. Higher Level Objectives contributed by the Project The proposed project contributes to the Borrower’s higher-level objectives, envisaged in the National Strategy for Accelerated Poverty Reduction (NSAPR) II, the home-grown, comprehensive national development strategy for FY 09-11. In particular, the Project directly contributes to ‘introducing e-governance in government bodies to combat corruption and provide more efficient services’.
3
The World Bank Country Assistance Strategy (CAS) for FY 11-14 recognizes that weak governance in Bangladesh continues to pose challenges for the nation’s economic growth and social development. The CAS emphasizes the need to capitalize on opportunities for governance improvements through strong support of government-owned initiatives such as Digital Bangladesh and the implementation of a Right to Information regime. A project to establish a robust, authoritative National ID system to underpin increased efficiency, inclusiveness, and transparency of services corresponds to this approach to addressing governance challenges in Bangladesh. The National ID system can also contribute to enhanced effectiveness of other Bank projects to improve targeting of social services and facilitate private sector transactions.
There is a strong commitment in developing a more robust NID System among a broad
range of counterparts. The Prime Minister and senior officials from the Prime Minister’s Office have stressed the importance of developing the system and welcome the Bank’s financing. The Bangladesh Election Commission (BEC) has exercised strong stewardship of the existing system and has demonstrated serious intent to carry out the improvements envisaged in this project. Other public agencies involved with Digital Bangladesh and/or collection of biographic data have committed to work with the National ID System. An Inter-ministerial committee on e-governance and Information Sharing has been established and the Prime Minister’s Office has set up a task team to coordinate and facilitate the overall implementation of e-governance.
II. PROJECT DEVELOPMENT OBJECTIVES
The Project Development Objective (PDO) is to establish a secure, accurate and reliable national ID system in Bangladesh that serves as the basis for more efficient and transparent service delivery.
To achieve this objective, the Project will support the second phase of Bangladesh’s
effort to build a National ID scheme based on the existing voter lists. The Project will support the Government in issuing ID cards with robust security features, developing the capacity to provide identity verification services, and to begin to integrate the new ID system into a range of both public and private services.
A. Project Beneficiaries The main project beneficiaries will be the NIDW of the BEC, which will implement the NID System. Secondary beneficiaries will be entities with population databases that will be logically linked with the NID system: the Ministry of Local Government, Rural Development, and Cooperatives (LGD), which is building a database for registration of births and deaths, and the Bangladesh Bureau of Statistics (BBS), which is planning to compile a national population registry based on existing sets of databases. Additional beneficiaries will be at least four separate public and private service agencies which will develop capacity to use the NID System to facilitate greater efficiency and effectiveness in service provision.
4
B. PDO Level Result Indicators
The following are the proposed result indicators for the project:
Indicators Baseline(as of January 2011) Target (December 2015)
Number of citizens having access to secure, reliable means of identification to conduct private transactions and access public services (of which % of women)
National ID card is used as means of identification but does not have reliable verification system and low level of ID card security
At least 80 million citizens are issued secure NID cards and a reliable verification system is in place.
Number of public/private institutions using electronic identity verification for their service delivery.
No electronic identity verification services available in the country
At least 2 public and 2 private agencies use NID system to verify client/beneficiary identity
III. PROJECT DESCRIPTION
A. Project Components
Component 1: Regulatory Framework for the National Identification System and Integration into Service Delivery (US$9.06ml)
This component will support development of the regulatory framework for the entire
operation of the NID system, including the issuance of NID numbers and the gathering, updating, and usage of NID data. It will also assist selected agencies in adopting e-ID verification services into their business processes and support the long-term effort to link the NID, birth registration and National Population Register databases through the adoption of the NID number as common identifier. Finally, the component will finance the software development and maintenance costs necessary to provide electronic identity verification services to NIDW client agencies.
1.1 Regulatory Framework for National ID System
The National Identity Registration Act, 2010 provides a high-level legal framework for the BEC, through the establishment of an independent National ID Wing, to maintain a NID System. The operation of the NID system will also require more detailed regulations on issues of privacy, access to the information by different categories of potential users (including government agencies), responsibility for integrity and currency of data, and overall system security.
The Project will provide technical assistance to BEC and other relevant agencies to: (i)
draft rules and regulations to address all the above NID issues; (ii) reflect the approved rules and
5
regulations in an NID system operations manual; (iii) develop work flow management software to automate NIDW work processes in accordance with the operations manual; (iv) develop mechanisms to monitor NIDW’s compliance with the established rules and regulations; and (v) coordinate with other entities involved in e-governance and with the Inter-Ministerial Committee on Information Policy to achieve consistency between BEC’s rules and regulations, particularly with respect to security, privacy and right to information compliance, and legislation applicable to the entire Government.
1.2 Integration of the National ID system into management of service delivery in selected agencies
This subcomponent will provide technical assistance, capacity building and limited
equipment to agencies outside the BEC to adjust their business processes and supporting software systems to utilize e-ID verification services from the NID system. It also will assist in the development or upgrading of data and database systems of these agencies to adopt the NID number system for identification of their customers to improve the reliability, consistency, and comprehensiveness of their services. The subcomponent will ensure that the NIDW is proactive in explaining the NID system's functionality to other public agencies and promoting inter-agency cooperation to utilize the system more broadly in service delivery.
This component will also ensure linkage of the NID system with the digital birth and
death registration systems being operated by the Local Government Division and the national population registry in the Bangladesh Bureau of Statistics. The BEC and the Local Government Division are expected to develop protocols whereby data from birth and death registration system is shared with the National ID system. At the same time, the National ID system would assign a unique national ID number at the time of registration of birth which would be reflected in the birth registry and on certificates. Numbers will be generated automatically through the NID system and transmitted to local government registrars of births in the field. All three agencies have agreed on modalities for sharing of information and ensuring the sharing of data.
For the above purposes, the BEC will administer an NID Service Fund of approximately
$8.5 million to finance packages of assistance to each selected agency. The allocation of the proposed NID Service Fund will be determined by the Project Steering Committee and administered by the NIDW on the basis of formal MOUs and as per agreed-upon action plans. Types of assistance from the NID Service Fund includes technical assistance, training and limited investment to build awareness of the linkage between NID system and service delivery of relevant agencies and to develop the necessary information system in agency to link with NID system on a pilot basis. Annex 2: Detailed Project Description has more details.
1.3 Provision of Electronic Identity Verification Services (E-ID) to public and private entities.
The project will finance the software development and maintenance costs necessary to
provide electronic identity verification services to service agencies. This service is already in high demand from many service agencies due to the proliferation of fake identity use in Bangladesh and the lack of such verification system. Initial services will allow a service agency to verify whether identity a service beneficiary or customer presents is authentic or not. For
6
many agencies, only positive/negative response will be provided while authorized clients (such as the Bangladesh Board of Revenue and the Department of Immigration and Passport) may be able to verify identity and to populate their own data bases with the same data.
E-ID services will be provided by the NIDW in accordance with service agreements
reflecting all the regulatory requirements developed under Subcomponent 1.1 above, and spelling out all terms of service, including in particular security provisions. When service charges are to be paid, the service contract will include authorization for automatic electronic funds transfer between the client’s and NIDW accounts in the Bank of Bangladesh. Component 2: Operations and Management of the NID System (US$145.97ml)
This component will finance the design and deployment of technology infrastructure and facilities for the NID system, the enhancement of NID database content, and the production and delivery to citizens of 90 million NID cards.
2.1 Datacenter & Disaster Recovery Site
As an asset of national importance, the NID data base and software must be physically housed and operated in a data center and disaster recovery site with the highest reliability and security. For this reason, the NID database will be housed in the data center of the Bangladesh Computer Council which is the only Tier-3 data center in the country. The disaster recovery site will be located in the NIDW premises until such time as the construction of a stand-alone DRS is completed at an outside location. The data center and the disaster recovery site will be connected with high bandwidth, dedicated data links with each other, with the Card Production Center and with the NIDW headquarters where a control center will allow monitoring and control of processing at the two facilities.
2.2 Data communications network A reliable, secure, online data communications network linking the data center, the
disaster recovery site, the Card Production facility, the NIDW Headquarters, the upazila server stations and the government and private sector clients is also an indispensable infrastructure for successful operation of the NID system. The Project will support the preparation of a detailed network design based on the standard operating procedures of NID. The detailed network plan will determine how best to integrate dedicated data links, internet service, and the virtual private network which will be used for connecting the NID database with various points around the country. A Network Control Center will be co-located with the Data center at the Bangladesh Computer Council, and a control console will allow remote network management from NIDW headquarters. Parts of the network have already been financed under PERP1
and IDEA will provide the incremental financing needed.
1 Preparation of Electoral Voter List Project
7
2.3 Decentralized Technology infrastructure
All of BEC’s district, region and upazila offices need to be equipped with workstations, peripherals (different configurations), UPS2s and VPN3
routers. Most of this infrastructure has already been financed under PERP and the IDEA project needs to provide supplementary financing mostly related to the incremental workstations needed for the large volume of work expected during the project life. Each of these workstations needs a full complement of peripherals, including camera, fingerprint scanner, page scanner, signature pad, printer, and smart card reader. Regarding software, the workstations need Voter Registration Client software licenses, email, and standard complement of browser, utilities and office suite software which may be selected from open source products.
2.4 Enhancement of Database Contents
The maintenance of an accurate, comprehensive citizens’ identity database is the backbone of the NID system. The project will build upon the current electoral voter database of 87 million records which are currently going through a rigorous process to detect duplicate records and cleanse them. It will enhance the contents of this database with better quality photographs, birth registration numbers and possibly parents’ identification numbers in order to enable future linkages with the Birth Registration and National Population Register systems. During this process citizens will be given opportunity to correct any misspellings or errors in their data to ensure the highest possible quality of new NID cards.
2.5 NID Card Production and Delivery to Citizens
The Project will finance replacing the current laminated voter ID card with a card with more robust security features. This replacement is required in order to have a trusted system of national identification in the country. The current system based on plastic-laminated paper cards was not designed for high security but rather as a byproduct of the 2008 election process to provide a form of identification to citizens. Since the system has been highly successful, the cards must now be replaced so that they cannot be easily forged. With verification often occurring by simple physical examination of cards, the need for a more secure card is significant. The NID card design will affect many aspects of the project, including total costs and utility of the NID card in society. The project will follow the recommendations of the government-wide national ID Card Design Committee consisting of representatives of BEC, LGD, BBS officials and other local experts. Component 3: Capacity Building, Communication, and Overall Project Management (US$ 39.96ml)
This component will develop the capacity of the newly established National Identification Wing (NIDW) of the BEC to be a high-performing, service-oriented, self-financing public organization. The project will finance major inputs of technical assistance, training and technology to achieve these objectives. 2 Uninterruptible Power Supply 3 Virtual Private Network
8
3.1 Comprehensive capacity building program for the newly established NIDW
The Project will finance a comprehensive Implementation Support Consultancy (ISC) which will bring key experts on various aspects of the implementation of this project on a long-term advisory basis. They will be paired with newly appointed NIDW managers for intensive on-the-job knowledge transfer. Key experts to be included in the ISC are: a principal advisor to the General Director of NIDW, an operations advisor on ID card production and distribution, a technology advisor on IT management, and an administration/finance advisor. In addition, the project will finance hiring of a chief communication officer and a chief procurement officer for 6-12 months to assist in development and initial implementation of the communications and procurement plans.
At the upazila level, the Project will finance an average of three local project consultants
(two work station operators and one IT technician) to complement BEC officers during the database enhancement and card production and distribution phases. Recruitment of these staff will be delegated to the district election office to leverage their knowledge of the local market for skilled staff.
3.2 Communications
The Project will finance the services of professional communication firms to conduct a far-reaching communication program. An effective communication program is of critical importance in managing citizens’ expectations of the NID system and ensuring a smooth process for the enhancement of data base content and replacement of millions of ID cards. Citizens need to be well informed and convinced of the value of having new ID cards with their latest personal information and photographs. The NIDW will have a designated Communication Officer and Appellate authority with sufficient resources to carry out provisions of the Right to Information Act. The Communication Officer will be supported by a long-term advisor financed by the project to oversee the mass communication program. The Project's communications effort will also includes outreach efforts such as seminars and other fora to explain the NID system's functionality to other public agencies to encourage the latter to utilize the system in the organization of their own service delivery.
3.3 Business process management system
Under this subcomponent, all the NID operating procedures will be compiled into an operations manual and a business process management system will be developed to automate the flow and documentation of work in NIDW. Additionally, software will be deployed in support of each of the functional areas of the organization, initially using specific-purpose, even open-source software modules. Later, when institutional capacity has been established, an enterprise resource management package may be introduced.
B. Lending Instrument
The lending instrument is an investment loan as the project primarily requires specific investments in ICT infrastructure, production of ID cards and institutional capacity building. Development Policy Lending was considered but rejected because the project involves
9
implementation of already articulated policies. An Output-Based Disbursement loan was not considered because goods, works, and services will be combined into a small number of larger procurement packages for which International Competitive Bidding rules will apply. In addition, the Bangladesh Election Commission lacks experience as an implementing agency for World Bank-financed projects and hence will likely need support in meeting fiduciary requirements.
C. Project Cost and Financing
Project Components Project Cost IDA Financing
% Financing
Component 1: Regulatory Framework for the National Identification System and Integration into Service Delivery
8.89 8.89 100.0%
Component 2: Operations and Management of the NID System 143.77. 143.13 99.6%
Component 3: Capacity Building, Communication Program, and Overall Project Management 40.56 39.19 96.6%
Total Baseline Cost 193.22 191.20
Contingencies (2%) 3.80 3.80 100.0% Total project Cost* 197.01 195.00 99.0%
(*The difference between Project Cost and the IDA Financing is the contribution from the Government of Bangladesh in the amount of US$ 2.01 million.)
D. Lessons Learned and Reflected in the Project Design
The Project design reflects the experience with e-governance reforms in various countries and Bank support for e-governance reforms. The Project team in particular reviewed the on-going National ID system development in India and Pakistan as well as other countries in Southeast Asia. The Project identifies the following as major lessons to consider and reflect in the project design and implementation arrangements.
One key issue is to ensure that the institutional arrangements are detached to the extent practical from political imperatives and interference. Control over sensitive information contained in a National ID database is a source of power unto itself, and has far-reaching implications for the operations of much of the public sector as well as political competition and representation. As in any country, these dynamics are present in Bangladesh. However, among public institutions, the BEC is relatively insulated from political pressure thanks to its status as a constitutional body with relatively greater autonomy. The BEC’s recent track record, particularly in the holding of the 2008 national elections, has been competent and nonpartisan. This is in contrast to the politicization of many other public institutions in Bangladesh. The BEC’s compilation of the voter list and maintenance of the NID system has been independent and professional. These considerations underpin the confirmation of the BEC as an institutional home for developing the NID system.
10
Information-and-ICT initiatives are political and it is especially so for a national ID system. Control over sensitive information contained in the national ID database has always been a form or power and contention. A number of countries rejected government’s initiative to develop unique ID system for its citizens according to the argument of privacy and political manipulation. The Project, therefore, grounds its design and implementation arrangement in a good understanding of local political context. The BEC, often regarded as most apolitical and highly competent organization, is entrusted to host the primary implementing agency.
A national ID system could be highly useful if it can be integrated into new business processes for delivering services. The Project will facilitate integration of the use of the NID system into the operations of up to four service agencies to demonstrate the value of NID system in tracking delivery of services and verification of recipients of services. While initial utilization of the NID system will be simple verification of individuals, the project anticipates that other agencies will seek to harness the use of NIDs to improve the quality of delivery, such as through better coverage and targeting and/or reduced leakage. At the same time, the experience of Pakistan and other NID experiences suggest that other service providers must take ownership over how NIDs are to be utilized within their own systems. While use of NID can be mandated, integration to substantively improve service delivery requires that the agencies in question embrace the system to meet their own particular needs. The Project will promote such usage through its communications program and especially through its NID Service Fund which will provide technical and financial assistance on how to utilize the NID system efficiently to improve service delivery.
Lack of coordination can lead to duplication of efforts, incompatibility of technical solutions and compromise sustainability. Countries often develop National ID systems parallel to other databases such as passport and tax identification, severely limiting NID’s utility in providing an authentic verification service. While each service-provider will be responsible for data usage for their own services, the project will seek to ensure that these systems will be logically linked to the NID system with the intention of ensuring that one core ID number is utilized for identification. The key stakeholders responsible for the National ID, birth registration, and census and national population register have agreed to coordinate efforts and ensure logical linkage. In addition, the inter-ministerial Committee on Information Sharing will play an important coordination role during implementation.
At the same time, the project recognizes that having multiple implementing agencies in
an investment project has been one of the reasons of unsuccessful performance in Bangladesh. Given the highly decentralized implementation arrangements within NIDW itself, it is considered not desirable to include service agencies in the project. Rather the Project provides a NID Service Fund, which BEC can provide to a number of line ministries and agencies which demonstrate their commitment and interest for making use of NID service to their own service delivery mechanism. This approach is also grounded on the fact that this project is the second phase of the long-term Bangladesh vision of NID system, which implies that this project’s remit stays within pilot applications of NID service in service delivery.
Ensuring the maximum participation in, and utilization of, a NID System requires awareness building of its benefits. The NIDW of BEC is acutely aware of the needs for mass
11
communication for rolling out an NID system in the country. A comprehensive communication strategy has been developed by the BEC in close consultation with broad stakeholders. A professional communications firm or firms will be procured to support BEC in building awareness and in managing citizens’ and service agencies’ expectation during the project. IV. IMPLEMENTATION
A. Institutional and Implementation Arrangements
Building sustainable capacity to manage an NID system within the implementing agency and mitigating operational and fiduciary risks of complex ICT management are the guiding principles of the institutional and implementation arrangements of the Project. The Project will be implemented by the NIDW of the BEC, in close technical partnership with the Local Government Division, and the Bangladesh Bureau of Statistics of the Ministry of Planning.
A NID Steering Committee (NSC) will be the highest body to provide strategic policy
guidance and oversee the project implementation. The NSC will be chaired by the Chief Election Commissioner, and include representatives of BBS,LGD and other concerned agencies, with the NIDW serving as secretariat.
A Project Implementation Committee (PIC) will handle operational issues of project
implementation. The PIC will be chaired by Director General of NIDW, who is also project director of IDEA Project, and include directors of operation, technology, administration/finance branches of NIDW and head of the Implementation Support Consultancy. It would also include officials from the BBS, LGD and other concerned agencies for better collaboration among related systems. The PIC shall determine the number and the type of consultants to be hired under the project.
Project management at the agency level would not have any project implementation unit.
The head of NIDW (rank of Director General) will serve as a Project Director for the IDEA project as well as on-going PERP project. This ‘three in one’ arrangement is expected to ensure full integration of both projects into NIDW’s operation and reduce administrative burden significantly.
The NIDW will be supported by a comprehensive Implementation Support Consultancy
which will bring a number of international experts on various aspects of the NID System on a long-term residency basis. They would be paired with government officials who would be newly recruited into the NIDW. In addition to pairing advisors with these key personnel, the consultancy will provide overall management support and capacity building to the NIDW.
In addition, the NIDW would selectively carry-over about one hundred data processing
technicians and national ICT consultants from the PERP project staff whose contracts will expire by June 2011. Also, a number of project staff and national consultants will be hired by the project during the peak period of ID card production and distribution.
12
At the upazila level, the Project will finance local project consultants in each upazila office to complement BEC officers to handle ID data update, ID card replacement, and other routine NID tasks. Recruitment of project staff for each upazila will be delegated to the district election office as they are well positioned to understand the market for necessary skill sets and recruit and deploy project staff to upazila under its jurisdiction.
B. Results Monitoring and Evaluation The Monitoring and Evaluation (M&E) of the Project will be integrated in the various components of the project. The implementation of an efficient M&E framework is essential in ensuring that the activities undertaken under the project consistently contribute to achieving the Project Development Objectives. NIDW will bear primary responsibility for project monitoring and evaluation. Project performance monitoring will be based on key performance indicators and intermediate outcome indicators as included in Annex 1.
The NIDW will establish standard formats, guidelines for data collection as well as
preparation and submission of monitoring reports to the Project Coordination Committee. In addition, the Implementation Support Consultant will include advisory capacity on M&E to support NIDW’s efforts on results monitoring and evaluation. M&E training will be conducted by experts of the World Bank for the responsible agencies and project management consultants during the time of the project launch. The training will cover the basics of (i) monitoring and evaluation frameworks; (ii) different types of indicators, including impact and outcome indicators; (iii) collection efforts and; (iv) reporting requirements of the World Bank projects.
An internal review and monitoring committee led by PSC will meet semi-annually during
the implementation and report to NIDW management. The output and outcome indictors for each component will be collected at the project component level. Also, a mid-term review will be conducted within 30 months of the project effectiveness to assess implementation progress. This will provide an in depth assessment of progress towards project outcomes and will recommend measures to reorient the project if needed to ensure that it will achieve its objectives. At project closing NIDW will prepare a completion report documenting the projects achievements, results, its cost and the current and future benefits to be derived from it.
C. Sustainability
Sustainability of the NID system is affected by three challenges. The first is institutional: the Bangladesh Election Commission’s mandate is to conduct elections and may not be the ideal institutional home for an ID system in the long run. The BEC’s role emerged from the voter list revisions beginning in 2008 which were widely acknowledged as credible. But the heretofore strong performance does not guarantee long-term suitability in maintaining the NID system, given the Commission’s primary mandate. The second challenge lies in the capacity constraints of a public entity such as the BEC which must use civil service staffing rules and follow government procedures that are not well suited to the dynamic, technology-intensive, demand-driven tasks involved in provision of electronic ID verification services. The third challenge is to ensure full cost recovery in its operations and thereby enable long-term sustainability of its service mission.
13
The appropriateness of the NIDW as an institutional home is dictated by the legal framework for the NID system in the National Identity and Registration Act. The Act mandates the establishment of the NIDW which will operate separately from the other functional departments of the BEC with only oversight to senior management at the Commission. The NIDW will have full, dedicated staff solely to administer the NID system, including the maintenance of the NID database, the issuance of NID cards to all eligible citizens and the provision of electronic identity verification services to public and private institutions. Most important, the Act designates the NIDW to be the sole authority to maintain core biographical information. Operating regulations will be adopted under this project in order to clarify the rights and obligations which come with this role, but at a minimum they will require that other service providers collaborate with NIDW in utilization of NIDs.
The NIDW’s capacity constraints are addressed through the relatively greater role that
the BEC will have in recruiting staff by the Public Service Commission and the expected long-term attractiveness in working with the NIDW. The BEC expects to be able to appoint quality technical and managerial staff. The Project contains a robust capacity-building component to be implemented. The Project will initiate a review regarding the long term institutional status for the NIDW in order to sustain its functions with the corresponding human resource requirements, including remuneration. Sustainability of the institution will largely determine on having and institution able to provide the services necessary to obtain sufficient revenue streams.
Financial sustainability will be obtained by the service charge streams that the NIDW
will be able to generate through the provision of identification services, particularly to the private sector. Members of the banking and mobile communications sectors have expressed readiness to pay for each ID verification transaction for their own databases as well as to fulfill know-your-client requirements. Service charges would be administered through electronic records of the number of transactions and bulk payments for the service. The initial focus of the NID system is to ensure functionality of the ID verification systems, but fees will be built into services to private entities from the outset. In addition, while all citizens will receive their first secure new NID cards free of charge, replacements will involve fees to ensure cost recovery. Examples of other NID systems, such as in Pakistan, have demonstrated that considerable revenues can be generated from identification services; these revenues will be derived from service charges set to cover human and physical resource requirements to sustain the system.
V. KEY RISKS AND MITIGATION MEASURES
The potential risk of the proposed project is considered substantial (ORAF rating: medium- I) as identified during the project inception stage. Major risks and measures for mitigation have been elaborated in Annex 4 -- Operational Risk Assessment Framework.
One of the critical risk factors is the weak implementation capacity of the main beneficiary, the BEC and its unfamiliarity with the IDA operation. Given the large value and complicated IT contracts involved, BEC will require significant technical support to handle the procurements and manage the contracts during implementation. While service from a professional project management firm will significantly mitigate the risk of mis-procurement and delays, BEC’s NIDW will need to have capacity to manage the National ID system beyond the
14
project period. The Project will provide a management support consultancy during the implementation. Some of the consultants, especially national consultants, are expected to be retained within the NIDW with the financial resources that NIDW will generate.
A related institutional issue is the end of the terms of the current Commissioners in 2013, close to halfway through Project implementation4
. While the current leadership, appointed by the non-political Caretaker Government, has demonstrated professionalism and commitment, the scheduled change of BEC leadership might undermine the rationale of having BEC as an implementing agency. This risk is partially mitigated by the equipping and staffing of the NIDW, passage of detailed regulations governing the NID system, and completion of all major procurements in the early part of the project.
A key project design risk is addressing the need for sufficient security measures to protect the integrity of the data. In this regard, the decision to move the NID data into the BCC’s data center, which is the only tier-three level dater center in country, would ensure highest security available in Bangladesh in short term. In the long term, BEC plans to build a fully certified tier-three data center in the Election Center that the Government is currently constructing. Also, the BEC is collaborating with the Law Ministry to introduce regulations to ensure NID related information security and privacy.
Another risk is the current absence of detailed regulations for the maintenance and use of the NID system. Regulations will be developed in the first year of the project which will govern how the system can be accessed and utilized by a wide range of public and private sector service providers. Information security and ensuring privacy will be addressed through the regulations in addition to ongoing efforts by the Prime Minister’s Office Access to Information e-governance cell to introduce country-wide information privacy and security legislative framework would provide a comprehensive umbrella legal framework for NID operation.
In addition, the distribution of up to approximately 90 million ID cards in an orderly and timely manner within the project period is a complex task that requires strong project management capacity, including active communication campaigns. The uncertainty of how citizens will respond to the invitation for a new ID card poses significant challenge for distribution management. Also, the procedure for registration and ID card distribution might exclude certain sections of the population and thus further exclude the poorest and most marginalized from access to vital services provided through the NID. In recognition of this risk, the project includes several measures such as annual enumeration process that visits village by village to register new and any left-out citizens and the house-to-house delivery of ID cards. The project also provides a comprehensive communication program and resources quickly available to increase project staff at upazila level in case of overwhelming response from citizens.
Another significant challenge will be to ensure utilization of the NID system to improve services by other service agencies, especially in the public sector. The system can be a powerful tool to build better targeting as well as verification of delivery, but this requires systemic changes in how service providers operate. However it requires public service agencies’ strong will and commitment to revise business processes and service standards to use the NID to 4 The Bangladesh Constitution stipulates that Election Commissioners are appointed by the President for a fixed
term of five year and it is renewable.
15
reduce discretion and increase transparency. This risk is partially mitigated by the inclusion of an NID Service Fund to provide necessary technical and financial resources to facilitate this process. Furthermore, several public agencies and private companies have already stated their strong desire to use the NID system for identification verification with corresponding readiness to devote human and other resources.
VI. APPRAISAL SUMMARY A. Economic and Financial Analysis
Benefits of a comprehensive and robust NID system clearly go beyond economic and financial gains. The increased capacity of a country in formulating public policies based on better identification of current services and beneficiaries in addition to non-tangible benefits of national ownership amongst others are expected from IDEA. Annex 7 provides details.
• Enhanced Citizens’ Access to Services
Currently Bangladesh citizens hardly have a valid identity proof to avail services or apply for documents i.e. passport. Citizens are forced to go through the duress of collecting multiple identity proofs to validate their identity for various purposes. At the same time, many citizens are deprived of services/public goods they are entitled to owing to service agencies’ incapacity to identify eligible clients/beneficiaries, leading to exclusion, leakage or duplication of resources. For instance, citizens are deprived of access to information following poor mobile phone5 and internet penetration6
rates, partly owing to lack to identity means for service installation.
The introduction of a reliable NID system will allow accurate and efficient identification of beneficiaries (and clients of services) and make eligible citizens have easier access to services they are entitled to. At the same time, citizens shall have a single valid ID, eliminating the need for collecting multiple identity proof documents. On the other hand, higher access to information can be facilitated through increased penetration of mobile phone and internet services with valid identity proofs.
• Cost savings/risk mitigation Public and private service agencies have to bear considerable risks from unreliable identity proof and incur expenses to guard against it. Banks are using multiple, unreliable sources of identity proof for loans leading, still resulting in a considerable loan default rate 7
5 30%, Asian Tiger Capital, Investment Banking Telco Analysis for Bangladesh, 2010
. The Department of Immigration and Passports goes through rigorous verification efforts before issuance of passports, due to multiple unreliable sources of identity proof. The telecommunication (telco) industry faces very high churning rate with hardly any means of identifying churned users to direct appropriate communication. Churned customers value as
6 0.07%, The World Bank, 2010 7 The current default rate of loan is 8.47%; Bangladesh Bank, 2010
16
much as US$ 0.45 million8 every month. In addition, the telco industry faces the risk of losing US$ 150 million9
owing to potential barring of unregistered sim cards.
With a reliable NID service, banks will be better equipped to analyze clients before lending and this may reduce default rate. Passport issuance will be backed up by a valid identity proof, potentially reducing the lead time for delivery of passport to citizens. The telco industry will have better means of retaining clients through identification of churned users and appropriate communication directed to them for retrieval and retention of existing vulnerable users. Besides, once the telcos are better equipped with all sims registered using the new NID, risk of losing clients through involuntary deactivation of sims by law enforcers would be reduced.
• Higher revenue for public and private service agencies
Banks have administrative burdens of client verification through multiple documents to meet “know your client” requirements and focus on actual client service becomes diluted as a result. Lack of identity means also restricts mobile/electronic commerce. The telco industry loses out as much as US$ 17 million10 from new adults without a national ID and also others without a robust NID for verification during sim purchase. The National Board of Revenue is currently contributing only 9%11
to GDP out of tax receipts, lowest in the region, with about one million registered tax payers in a country of more than 160 million. Tax payer identification is recognized as a major deterrent to tapping the eligible taxpayers to boost tax revenue.
With a reliable NID service in place, banks’ time spent on administrative chores of client identity verification will be significantly reduced, leaving time for actual, revenue generating client service with higher responsiveness to client and reduced lead time. Through better identification means and reduced fear of lack of tracking mechanism for money laundering, both m/e-commerce are likely to grow, potentially adding to the revenues of commercial banks and telco industry. Finally, linking tax payer identification with NID system will significantly improve the capacity of revenue authorities to increase tax net.
• Improved crime tracking Currently law enforcing agencies hardly have a valid mechanism to verify identities of citizens in light of maintaining law and order. In addition, it gets difficult to track people when they use unregistered pre-paid sims for anti-social/criminal activities. Proper NID system will significantly increase capacities of law enforcing agencies for identification and tracking of criminal activities are likely to be enhanced. On the financial end, IDEA is expected to generate an NPV of US$ 69 million and has IRR of 13% and payback period of 6.67 years, based on BDT 20 or US$ 0.30 unit fee per transaction once service agencies begin using IDEA’s verification service. The analysis indicates the Telco industry to be the highest revenue generator.
8 World Bank calculations based on data from GrameenPhone and Airtel, Bangladesh 9 World Bank Calculations based on data from GrameenPhone and Airtel, Bangladesh 10 World Bank calculations based on data from GrameenPhone, the largest Telco of Bangladesh as of 2010 11 National Board of Revenue (NBR), Bangladesh, 2010
17
B. Technical
As the Project is the second phase of Bangladesh’s NID initiative following support from the PERP Project, the lessons from the first phase have been carefully reviewed and internalized. The successful creation of an 87-million voters list and distribution of plastic-laminated voter ID cards provide a strong foundation and reference point for the Project’s design and implementation arrangements.
In addition, the project design has greatly benefited from an approved Master Plan12
and the technical assistance provided by UNDP under the PERP project and from IDA’s own embedded technical assistance during project preparation. The NID Master Plan provides a robust technical and procedural basis for project design and implementation, including details of hardware, data center, decentralized server station arrangement, network requirements, ID card design and security features, staffing needs, and capacity building and training needs assessment.
The project design also benefited from lessons from regional ID projects, particularly in India, and Pakistan. The highly successful Pakistan experience has shown the importance of retaining competent staff, especially for IT functions. This has led to a pairing arrangement of newly appointed NIDW staff with an implementation support consultancy during the entire duration of project and a delegation of specialized functions such as data center management and ID card production to specialized agencies rather than in-house management. The India experience in establishing a universal identification system and diverse voices of supports and concerns from society has made the project include a strong communication program for more transparent and effective interaction with citizens for NID system.
C. Financial Management
A Financial Management Assessment was carried out in accordance with the Financial
Management Investment Operation issued by the Financial Management Sector Board on March 1, 2010. The objective of the assessment was to determine whether the implementing agency, NIDW of BEC, has acceptable financial management arrangements as evidenced by: (i) use of funds in an efficient and economical way, for the purpose intended; (ii) the preparation of accurate, reliable and timely periodic financial reports; and (iii) the safeguard of agency assets.
The assessment concluded that the financial management risk rating of the project is “Moderate”. To address the identified weaknesses and mitigate the risks, an action plan has been agreed with the implementing agency and an Implementation Support Consultant will be retained. The assessment concluded that with the implementation of these actions, the proposed financial management arrangements will satisfy the Bank’s minimum requirements under OP/BP 10.02.
There are no overdue audit reports and interim financial reports as the implementing agency, BEC, has no prior involvement with any Bank operation. “Guidelines on Preventing and Combating Fraud and Corruption in Projects financed by IBRD Loans and IDA Credits and Grants”, dated October 15, 2006 shall apply to the Project. Taking into account the risk 12 ‘Master Plan for the Decentralization of the Electronic Voter Identification System (DEVIS)’ UNDP, 2010
18
mitigation measures proposed, the overall financial management residual risk for this project is “Moderate”. Annex III provides additional information on financial management arrangement of the project.
D. Procurement
The Bank assessed the procurement capacity of the implementing agency, BEC, and suggested mitigation/improvement measures for efficient procurement management of the project. BEC has not been involved in any Bank financed project to date. The BEC’s experience with large volume ICT procurement during the UNDP project was passive as all key procurement actions were handled by the donor agency. The BEC needs to have dedicated procurement personnel within it to handle the Project’s procurement activities.
To enhance the procurement capacity, significant procurement assistance is required and agreed upon with the agencies. Different risk mitigation measures also have been agreed upon with the agencies including: (i) hiring of an implementation support consultancy firm to handle the entire cycle of contract management, including tendering and quality control of goods and services received by vendors; (ii) establishment of a credible procurement complaint handling system; and (iii) provision of semi-annual report based on an agreed procurement risk mitigation plan (PRMP) covering about 10 key features for better procurement management related to internal control, bid openings, coercive practices, record keeping, publication of award of contracts etc., described in more detail in Annex 3.
E. Social (including Safeguards)
The positive social impact of the Project is considered potentially significant and
expected to benefit both male and female population as well as minors.
The absence of an authoritative NID System has allowed frequent fraudulent use and counterfeiting of existing IDs which in turn has eroded trust in the existing Voter ID cards. At the same time, the need to identify individuals for transactions has led to the mandated use of these cards despite vulnerability to fraud. It is expected that with a successful establishment of an NID System, including a reliable database, ID cards with robust security features, and a network for verifying IDs at various service points, citizens, public and private sectors, and society in general will build up a culture of trust and transparency in managing daily affairs of life by displaying their true, unique identity. Any attempt to abuse the system through fake ID in a range of services, such as government social protection programs or mobile telephony and banking will be difficult, and it will in turn greatly reduce social transaction costs.
The Project does not present any significant social issues according to the World Bank Safeguard policies and procedures (OP 4.12, OP4.10, OP7.50 and OP7.60).
F. Environment (including Safeguards)
The Project is not expected to present any significant safeguard issues. The specific
consultant and goods contracts will include requirements of the Bank Safeguard policies and
19
procedures if necessary. Compliance will be closely monitored by the borrower and supervised by the Bank.
In accordance with the Bank Safeguard policies on environment (OP/BP/GP4.01 Environment Assessment) the Project has been assigned Category C, indicating that no environmental issues are anticipated. This assessment was based upon the project design, which does not include any physical construction activities, other than refurbishment of the existing project office.
20
Annex 1: Results Framework and Monitoring
BANGLADESH: IDENTIFICATION SYSTEM FOR ENHANCED ACCESS TO SERVICES (IDEA) PROJECT
Results Framework
Project Development Objectives
To establish a secure, accurate, and reliable national ID system in Bangladesh that serves as the basis for more efficient and transparent service delivery.
PDO Outcome Project Outcome Indicators Use of Project Outcome Information
• Citizens’ access to secure and
reliable ID system enhanced • The coverage of national ID
system for identity verification service improved
• Number of citizens having
access to secure, reliable means of identification (of which % of women*)
• Number of public/private
institutions regularly using electronic identity verification for their service delivery
• Assess whether the national
identity verification system is appropriate/ready to be used in public and private service delivery
• Evaluate whether citizens are
benefitting through improved public services due to use of NID system
Intermediate Outcomes
Intermediate Outcome Indicators
Use of Intermediate Outcome Monitoring
Legal & regulatory framework established for management of the NID system
• Regulatory and operational guidelines for NID department and verification service issued
Component 1 • Evaluate whether a sound and
comprehensive regulatory environment is being provided to ensure proper use of the new national identity verification system
IT infrastructure for ID system developed and made operational.
• Bangladesh Election Commission (BEC) data center and disaster recovery center established
Component 2 • Find out whether an infallible
system is in place to support use of digitized identity verification service
Reliable data communication network through virtual private network created
• Number of Upazilla server stations capable of NID registration and update
Component 2 • Verify whether all user agencies of
the identity verification system ( i. e. decentralized, regional and central offices) are linked to NID database
Cost recovery mechanism implemented for the NID system
• Necessary information systems in place to design and implement the cost recovery mechanism
Component 2 • Verify whether NIDW is sufficiently
equipped to handle large volume of service charge flow
• support the NID system Usage of NID card by social services for authentication improved
• Percent of social protection programs that utilize NID to improve targeting to beneficiaries
• Verify whether government social spending programs use the NID to improve targeting to beneficiaries
21
Technical and management capacity of the NIDW strengthened
• Staff trained in operation & management of NIDW
Component 3 • Measure human resource capacity
building to support the NID system in place through completion of training program and quality assessment by key advisors
Citizen awareness is generated through an effective communication program
• A comprehensive nationwide communication strategy is implemented
• User perception of quality of ID system targeted by the project
Component 3 • Evaluate whether citizens are aware
of the new ID system and are encouraged to use the system
• Measure the degree of user satisfaction with the overall transaction process of the NID system targeted by the project
Results Framework: The results framework is designed to represent the underlying logic to achieve the Project Development Objective (PDO). The framework outlines key indicators, data collection methods, a timetable for collection and responsible agencies. *: Key Sector Performance Indicators of the World Bank Data collection and reporting: An internal review and monitoring committee led by Project Coordination Committee (PCC) will meet semi-annually during the implementation and report to NIDW management. Quantitative and qualitative indicators were selected based on the discussion with PCC. Emphasis was given to creating clear, balanced, relevant and measurable indicators.
22
RESULTS CHAIN: BANGLADESH IDEA Long
term Outcomes
Secure,
Accurate & Reliable National ID System
Efficient and Transparent Service Delivery
Citizens access to
secure and reliable ID system enhanced
The coverage of national ID system for identity verification service improved
Res
ourc
es U
S$ 1
95 m
illio
n
Component 2 National ID Database, Datacenter
and Disaster Recovery Center established
Private ID card production vendor hired
VPN linked established with Datacenter
Component 3 Staff recruited and trained to
improve technical capacity
Necessary information system is built for the design and implementation of cost recovery mechanism
Component 2 IT infrastructure developed and
made operational Reliable data communication
network through virtual private network created
Cost recovery mechanism implemented for the NID system
Usage of NID card by social services for authentication i d
Component 1 NID regulation for operation and verification of the NID system drafted
Component 1 Legal & regulatory framework
established for management of the NID system
Component 3 Technical and management capacity
of the NIDW strengthened Citizen awareness is generated
through an effective communication mechanism
Activities Intermediate Outcomes Outcomes
23
Table A.3-2 Arrangements for Results Monitoring
Target Values Project Outcome Indicators
Unit of Measure
Baseline 2010
YR 1 YR2
YR3
YR4
YR 5
Frequency of data collection
Data Source/ Methodology
Responsibility for Data Collection
Comment
Citizens access to secure and reliable ID system enhanced Number of citizens having access to secure, reliable means of identification (of which % of women*)
Number (Million)
0 0 0 20 30 30
Annual NID Wing NID Wing of BEC
Improve the coverage of national ID system for identity verification service Number of public/private institutions regularly using electronic identity verification for their service delivery
Number 0 0 0 1 1 2 Annual NID Wing NID Wing of BEC
At least 2 public and 2 private
Intermediate Outcome Indicators Component 1 : National Identification System and Services Legal & regulatory framework established for management of the NID system
Regulatory and operational guidelines for NID department and verification service issued
Y/N None Yes Yes Yes Yes Yes Once after first year
Ministry of Law, Justice and Parliamentary Affairs, NID Wing
NID Wing of BEC
Draft regulation for NID use is already with CEC
Component 2: IT Operations and Management IT infrastructure for ID system developed and made operational Bangladesh Election Commission (BEC) data center and disaster recovery center established
Y/N None Yes Yes Yes Yes Yes Once after first year
NID Wing of BEC
NID Wing of BEC
Reliable data communication network through virtual private network created
24
Number of Upazilla server stations capable of NID registration and update
Number 0 100 30 100 0 0 Annual NID Wing of BEC
NID Wing of BEC
Cost recovery mechanism implemented for the NID system Necessary information systems in place to design and implement the cost recovery mechanism
Y/N None No No Yes Yes Yes Annual NID Wing of BEC
NID Wing of BEC
Usage of NID card by social services for authentication improved Percent of social protection program utilizes NID to verify the correct beneficiaries
percent 0 0 0 5 5 5 Annual Ministry of Social Welfare
NID Wing of BEC
Component 3: Capacity Building, Communication and Overall Project Management
Technical and management capacity of the NIDW strengthened
Staff trained in operation & management of NIDW
Number 0 1079 700 0 0 0 Annual NID Wing of BEC
NID Wing of BEC
Citizen awareness is generated through an effective communication mechanism
A comprehensive nationwide communication strategy implemented
Y/N EOI has been
published
Yes Yes Yes Yes Yes Annual NID Wing of BEC
NID Wing of BEC
Communiction consultant will be hired.
User perception of quality of public services targeted by the project* (IDA Core indicator)
percent 0 0 0 50 50 80 Mid Term NID Wing of BEC
NID Wing of BEC
Citizen perception survey will be conducted
*Please indicate whether the indicator is a Core Sector Indicator (see further http://coreindicators)
**Target values should be entered, for the year’s data will be available, not necessarily annually
25
Annex 2: Detailed Project Description
Component 1: Regulatory Framework for the National Identification System and Integration into Service Delivery (US$9.06ml)
This component will support development of the regulatory framework for the entire
operation of the NID system, including the issuance of NID numbers and the gathering, updating, and usage of NID data. It will also assist selected agencies in adopting e-ID verification services into their business processes and support the long-term effort to link the NID, Birth registration and National Population Register databases through the adoption of the NID number as common identifier. Finally, the component will finance the software development and maintenance costs necessary to provide electronic identity verification services to NIDW client agencies.
1.1 Regulatory Framework for National ID System
The 2010 National Identity and Registration Act provides a high-level legal framework for the BEC, through the establishment of an independent National ID Wing, to maintain a national identification (NID) system. While this provides a sound foundation, the operation of the NID system requires more detailed regulations on issues of privacy, access to the information by different categories of potential users (including government agencies), responsibility for integrity and currency of data, and overall system security.
The Project will provide technical assistance to BEC and other relevant agencies to: (i)
draft rules and regulations to address all the above NID issues; (ii) reflect the approved rules and regulations in an NID system operations manual; (iii) develop work flow management software to automate NIDW work processes in accordance with the operations manual, (iv) develop mechanisms to monitor NIDW’s compliance with the established rules and regulations; and (v) coordinate with other entities involved in e-governance and with the Inter-Ministerial Committee on Information Policy to achieve consistency between BEC’s rules and regulations, particularly with respect to security, privacy and right to information compliance, and legislation applicable to the entire Government.
1.2 Integration of the National ID system into management of service delivery in selected agencies
A key expected benefit of a National ID System is to assist service agencies in public and
private sectors to verify the identity of their customers in a streamlined and timely manner. Among the factors leading to poor efficiency and lack of transparency of various public sector programs has been the difficulty of properly identifying legitimate beneficiaries and ensuring the delivery of services to them. Private sector entities face high transaction costs in verifying identity for “Know-Your-Client” purposes. These attest to the high potential of a reliable NID system that effectively interfaces with other entities. It is generally considered that the reliable verification service largely depends on a few key aspects within an ID system:
26
• High degree of reliability of the ID card and the underlying ID database ensures public trust in the system;
• Ability to confirm efficiently that the holder of the ID card is the person identified on the ID card; and
• Proactive support to help other services make use of the reliable ID system for authentication of persons. This subcomponent will provide technical assistance, capacity building and limited
equipment to agencies outside the BEC to adjust their business processes and supporting software systems to utilize e-ID verification services from the NID system. It also will assist in the development or upgrading of data and database systems of these agencies to adopt the NID number system for identification of their customers to improve the reliability, consistency, and comprehensiveness of their services.
This component will also ensure linkage of the NID system with the digital birth and
death registration systems being operated by the Local Government Division and the national population registry in the Bangladesh Bureau of Statistics. The BEC and the Local Government Division are expected to develop protocols whereby data from birth and death registration system is shared with the National ID system. At the same time, the National ID system would assign a unique national ID number at the time of registration of birth which would be reflected in the birth registry and on certificates.. Numbers will be generated automatically through the NID system and transmitted to local government registrars of births in the field. All three agencies have agreed on modalities for sharing of information and ensuring the sharing of data.
For the above purposes the BEC will administer an ‘NID Service Fund’ of approximately
$8.5 million to finance packages of assistance to each selected agency. The allocation of the proposed NID Service Fund will be determined by the Project Steering Committee and administered by the NIDW on the basis of formal MOUs and as per agreed-upon action plans. Assistance will be limited to the development of systems and not to their on-going maintenance.
1.3 Provision of Identity Verification Services to public and private entities. The project will finance the software development and maintenance costs necessary to
provide electronic identity verification services to client agencies. Initial services will allow a client to provide an ID number and optionally some Core Personal Data13
, and obtain a Yes or No reply from the NID system depending on whether a match is found in the data base. Alternatively, authorized clients (such as the Bangladesh Board of Revenue and the Department of Immigration and Passport) may conduct online queries of Core Personal Data in the NID data base both to verify identity and to populate their own data bases with the same data.
E-ID services will be provided by the NIDW in accordance with service agreements reflecting all the regulatory requirements developed under Subcomponent 1.1 above, and spelling out all terms of service, including in particular security provisions. When service 13 CPD is initially defined to include (1) name; (2) date of birth; (3) sex; (4) place of birth and its geocode; (5)
father’s name and his NID number; (6) mother’s name and her NID number.
27
charges are to be paid the service contract will include authorization for automatic electronic funds transfer between the client’s and NIDW accounts in the Bank of Bangladesh. Component 2: Operations and Management of the NID System (US$145.97ml)
This component will finance the design and deployment of technology infrastructure and facilities for the NID system, the enhancement of NID database content, and the production and delivery to citizens of 90 million NID cards.
2.1 Datacenter & Disaster Recovery Site
As an asset of national importance, the NID data base and software must be physically housed and operated in a data center (DC) and disaster recovery site (DRS) with the highest reliability and security. For this reason the NID database will be housed in the data center of the Bangladesh Computer Council (BCC) which is the only Tier-3 data center in the country. The DRS will be located in the NIDW premises until such time as the construction of a stand-alone DRS is completed at an outside location. The DC and the DRS will be connected with high bandwidth, dedicated data links with each other, with the Card Production Center and with the NIDW headquarters where a control center will allow monitoring and control of processing at the two facilities.
Data Center
. A detailed service agreement will be prepared spelling out the responsibilities, service standards and liabilities of the BCC, as well as the obligations of the BEC, as necessary to ensure uninterrupted and highly secure operation of BEC’s computerized systems and data bases. Given the extremely high sensitivity of these systems and databases, the service agreement should address all the administrative, security and technical issues normally required by best IT service industry practices, including all provisions necessary for BEC to automatically switch its operations to its own disaster recovery site in the unlikely case of BCC service interruption.
Furthermore, the procedures, operation, safeguards, management, insurance, and O&M budget of BCC wil be assessed before signing the service agreement and, if found satisfactory, incorporated by reference in it. If they are not fully satisfactory (for example, if the Tier 3 or security certification have not been obtained) time-bound remedial actions should be spelled out in the service agreement.
Disaster Recovery Site
2.2 Data communications network
. The project will finance expansion of the current data center at the Islamic Foundation building to the same hosted BEC capacity at the BCC data center in order to serve both as a disaster recovery site and as a parallel processing center. Currently 50% of this expansion is financed under PERP and the IDEA project will finance the remaining 50%, as well as the ongoing O&M costs.
A reliable, secure, online data communications network linking the DC, the DRS, the
Card Production facility, the NIDW Headquarters, the upazila server stations and the government
28
and private sector clients is also an indispensable infrastructure for successful operation of the NID system. The Project will support the preparation of a detailed network design based on the standard operating procedures of NID. The detailed network plan will determine how best to integrate dedicated data links, internet service, and the virtual private network which will be used for connecting the NID database with various points around the country. A Network Control Center will be collocated with the DC at the BCC, and a control console will allow remote network management from NIDW headquarters. Parts of the network have already been financed under PERP and IDEA will provide the incremental financing needed.
2.3 Decentralized Technology infrastructure
All of BEC’s district, region and upazila offices need to be equipped with workstations, peripherals (different configurations), UPSs and VPN routers. Most of this infrastructure has already been financed under PERP and the IDEA project needs to provide supplementary financing mostly related to the incremental workstations needed for the large volume of work expected during the project life. Each of these workstations needs a full complement of peripherals, including camera, fingerprint scanner, page scanner, signature pad, printer, and smart card reader. Software wise, the workstations need Voter Registration Client software licenses, email, and standard complement of browser, utilities and office suite software which may be selected from open source products.
2.4 Enhancement of Database Contents
The maintenance of an accurate, comprehensive citizens’ identity database is the backbone of the NID system. The project will build upon the current electoral voter database of 87 million records as subsequently de-duplicated and cleansed under the PERP project. It will enhance the contents of this database with better quality photographs, birth registration numbers and possibly parents’ identification numbers in order to enable future linkages with the Birth Registration and National Population Register systems. During this process citizens will be given opportunity to correct any misspellings or errors in their data to ensure the highest possible quality of new NID cards.
The database content enhancement phase will be preceded by pilot tests to determine
the likely volume and type of transactions and to decide on best logistical arrangements and segmentation of work to maximize efficiency and minimize time and inconvenience for both citizens and the NIDW. Subject to the results of the pilot tests a communications campaign will be conducted to motivate citizens to come forward and enhance the data (photograph, signature, address, etc.) in their voter list records, and to inform them of the procedures and locations to do so. The annual door-to-door voter enumeration process will be leveraged to inquire on whether citizens need to update any information in their voter list records, to capture such information when possible, and to inform the citizen on what documents he/she must bring to the upazila office in more complex cases of change of name, date of birth, etc.
Actual capture of enhanced data for the NID database will occur at the upazila offices,
either by scanning signed forms processed by enumerators door-to-door (for new birth registration number, parents’ id numbers, or simple spelling changes) or through face to face interaction with the citizen, to take new photograph, new signature or supporting documents.
29
Complex cases will be decided at NIDW central service center on the basis of documents scanned by the upazila operator. Others, where the citizen does not have supporting documents, will need to be adjudicated by a committee decision, executive decision or even judicial decision, depending on the regulations. In all cases BEC wants to limit actual updating of the data base to central service center operators.
A scheduling facility based on SMS or Web access will be pilot tested to ensure that
citizens can complete their transactions when they come to the upazila office and to keep the flow of citizens in line with office capacity at each upazila.
The following principles will guide the design of processes for enhancement of data base
contents above as well as for NID card production and delivery to citizens, discussed below:
• Issue NID cards on the basis of the BVRS Data Base.
• Plan to replace all laminated cards during the 5-years of IDEA project and to phase out use of old cards as soon as possible thereafter.
• Reflect all changes to the Core Personal Information of citizens in the BVRS Data Base and ensure that no other government data base has different information.
• Use every interaction between NIDW and citizens to ensure quality of the BVRS data base and of the NID cards.
• Ensure efficient and courteous service when the citizen interacts with NIDW. Minimize inconvenience and expense for citizens as much as possible. In particular, ensure that citizens coming to NIDW offices with required documentation are given service the same day.
• Minimize the time between acceptance of data updates to the BVRS DB and the issuance of correspondingly updated NID cards.
• Define and publish citizen service performance standards by NIDW and disclose regularly the performance against those standards.
2.5 NID Card Production and Delivery to Citizens
The Project will finance replacing the current laminated voter ID card with a card with more robust security features. This replacement is required in order to have a trusted system of national identification in the country. The current system based on plastic-laminated paper cards was not designed for high security but rather as a byproduct of the 2008 election process to provide a form of identification to citizens. Since the system has been highly successful, the cards must now be replaced so that they cannot be easily forged With verification often occurring by simple physical examination of cards, the need for a more secure card is significant. The NID card design will affect many aspects of the project, including total costs and utility of national ID card in society. The project will follow the recommendations of the government-wide national ID Card Design Committee consisting of representatives of BEC, LGD, BBS officials and other local experts.
30
Card Personalization Site
. The Security Printing Press (SPP), which prints currency notes and other specialized materials such as tax stamps and banks’ checkbooks, has highly secure premises where BEC’s NID card production facility could be housed. While this option seems ideal in terms of security, facilities and location, it depends on a number of decisions regarding responsibility, management, independence of the commercial contractor, and risk sharing approach between the BEC, the SPP and the contractor. Necessary decisions are expected from the PCC.
Card Production, personalization and distribution to upazilas
. In view of the lack of direct experience in smart card production in the country and of the large number of cards to be produced, a turn-key contract may be the best alternative at the beginning of implementation. An international vendor would build the NID card personalization facility at the SPP premises, import all necessary raw materials (including blank cards) and equipment, bring experienced management and production staff, manage the production of 90 million NID cards according to the schedule agreed with BEC, train SPP staff and transfer to them the responsibility for continued operation of the facility at the end of the project.
Card delivery to citizens
. Actual delivery of new NID cards will be done door-to-door using the enumerator force. Door-to-door delivery must be scheduled to minimize enumerator trips, maximize card delivery rates, comply with minimum card production numbers, and permit discerning whether an existing old card should have been already replaced by a new one.
BEC will develop a “Detailed NIDW Methodology” similar to that developed for PERP, which will spell out roles and responsibilities of all participants, as well as steps, decisions, documents, computerized support requirements, quality standards, safeguards, and audit trail records necessary for NID card production, distribution to upazilas, updating of data and delivery of new cards to citizens. Component 3: Capacity Building, Communication Program, and Overall Project Management (US$39.96)
This component will develop the capacity of the newly established National Identification Wing (NIDW) of the BEC to be a high-performing, service-oriented, self-financing public organization.. The project will finance major inputs of technical assistance, training and technology to achieve these objectives. 3.1 Comprehensive capacity building program for the newly established NIDW
The Project will finance a comprehensive Implementation Support Consultancy (ISC) which will bring key domain experts on a long-term advisory capacity. They will be paired with newly appointed NIDW managers for intensive on-the-job knowledge transfer. Key experts in the ISC are a principal advisor to the General Director of NIDW, an operations advisor on ID card production and distribution, a technology advisor on IT management, and an administration/finance advisor. In addition, the project will finance hiring of a chief communication officer and a chief procurement officer for 6-12 months to assist in development
31
and initial implementation of the communications and procurement plans. The capacity building program will also include a training component for both the establishment and contract staff of the NIDW. Study tours will also be undertaken to countries with similar operations.
At the upazila level, the Project will finance an average of three local project consultants
(two work station operators and one IT technician) to complement BEC officers during the database enhancement and card production and distribution phases. Recruitment of these staff will be delegated to the district election office to leverage their knowledge of the local market for skilled staff.
3.2 Change management and communications
The Project will finance the services of professional communication firms to conduct a far-reaching communication program. An effective change management and communication program is of critical importance in managing citizens’ expectations of the NID system and ensuring a smooth process for the enhancement of data base content and replacement of millions of ID cards. Citizens need to be well informed and convinced of the value of having new ID cards with their latest personal information and photographs. The NIDW will have a designated Communication Officer and Appellate authority with sufficient resources to carry out provisions of the Right to Information Act. The Communication Officer will be supported by a long-term advisor financed by the project to oversee the mass communication program.
3.3 Business process management system
Under this subcomponent all the NID operating procedures will be compiled into an operations manual and a business process management system will be developed to automate the flow and documentation of work in NIDW. Additionally, software will be deployed in support of each of the functional areas of the organization, initially using specific-purpose, even open-source software modules. Later, when institutional capacity has been established, an enterprise resource management package may possibly be introduced.
The operating procedures will encompass all key functional areas of the organization – management, operations, administration, HR, finance, internal audit, communications, client relations and IT. It is expected that the majority of these procedures will be documented under the UNDP’s DEVIS Master Plan as part of the standard operating processed. In any case, the operations area will include procedures for:
• registering and updating data for the NID database • adjudicating all identity data modification requests • ordering and monitoring the production and personalization of NID card batches and their
distribution to Upazila offices • delivering NID cards to citizens • monitoring delivery of e-ID verification services • administering service fee revenues
32
Annex 3: Implementation Arrangements 1. Project institutional and Implementation Arrangements:
i. Project Administration Mechanisms
Building sustainable capacity to manage NID system within implementing agency and
mitigating operational and fiduciary risks of complex ICT management’ is the guiding principle of the institutional and implementation arrangement of the Project. The Project would be implemented by the National ID and Registration Wing of the BEC, with close technical partnership with the Local Government Division, and the Bangladesh Bureau of Statistics of the Planning Commission.
A NID Steering Committee (NSC) will be the highest body that will provide strategic
policy guidance and overseeing the project implementation. The PCC will be chaired by the Chief Election Commissioner, and include secretaries of BBS and LGD, with the NIDW serving as a secretariat. The committee shall meet at least twice a year to review progress of the overall project, according to the M&E framework included in the PAD and make necessary decision for successful implementation. The NSC will also include select public and private service agencies, expert group on NID system, and citizens’ representatives
Regional Server Station (Chief Election Officer) District Server Station
(Senior District Election Officer/ District Election Officer) Upazilla/Thana Server Station Upazilla/Thana Election Officer)
33
A Project Implementation Committee (PIC) will handle operational issues of project implementation. The PIC will be chaired by Director General of NIDW, who is also project director of IDEA Project, and include directors of operation, technology, administration/finance branches of NIDW and head of the Implementation Support Consultancy. It would also include officials from the BBS, LGD and other concerned agencies for better collaboration among related systems. The PIC shall determine the number and the type of consultants to be hired under the project.
Project management at the agency level would not have any project implementation unit. The head of NIDW (rank of Director General) will serve as a Project Director for the IDEA project as well as on-going PERP project. This ‘three in one’ arrangement is expected to ensure full integration of both projects into NIDW’s operation and reduce administrative burden significantly. Financial management, procurement, monitoring and evaluation, public campaign and other routine activities of the project office will be carried out by relevant sections in NIDW. The organogram of NIDW, which was recently approved by the Government, contains 71 senior officials and technical specialists. Half of positions are scheduled to be filled in by June, 2011 and fully filled by the end of 2011.
The NIDW will ensure that it has a designated officer as per Bangladesh's RTI Act. The
NIDW shall ensure adequate capacity to respond to applications for information and conduct proactive disclosure of appropriate information as per the Act. The designated officer will develop and implement a detailed plan of suo moto disclosure by the project. This will include disclosure of all relevant documentation and plans related to the procurement process with the goal of providing access to information to the wider community beyond interested bidders.
The NIDW will be supported by a comprehensive Implementation Support Consultancy
which will bring a number of international experts on various aspects of the NID System on a long-term residency basis. They would be paired with government officials who would be newly recruited into the NIDW on a long term basis. Key personnel to be included in the ISC are a principal advisor to the General Director of NIDW, a chief operation officer in charge of ID card production and distribution, a chief technology officer in charge of database and other IT issues, a chief administration/finance office, chief communication officer and chief procurement officer. In addition to pairing advisors with these key personnel, the consultancy will provide overall management support and capacity building to the NIDW.
In addition, the NIDW would selectively carry-over about one hundred data processing
technicians and national ICT consultants from the PERP project staff. BEC will follow the required World Bank procurement policy and procedure to ensure competitiveness and value for money of project resources. Finally, a number of project staff and national consultants will be hired by the project during the peak period of ID card production and distribution.
At the upazila level, the Project will finance local project consultants in each upazila
office to complement BEC officers to handle ID data update, ID card replacement, and other routine NID tasks. The project, on average, will finance three project staff (two work station operators and one IT manager) while a number of large size upazilas will have more project staff proportionally. Recruitment of project staff for each upazila will be delegated to the district
34
election office as they are well positioned to understand the market for necessary skill sets and recruit and deploy project staff to upazila under its jurisdiction.
35
IDEA Implementation Arrngement (Implementation Team)
Other functionsAdmin & Finance BranchTechnical BranchOperations Branch
Director General (DG)-NIDW & Project Director (PD) – IDEA*+
Operations Director*
Dp. Director
Dp. Director
Asst. Director
Corr,
Aut
h &
Card
Rep
l.Pr
int &
Di
strib
utio
nIn
form
atio
n Re
q.
N I D
N I D
Ser
vices
Asst. Director
Valid
atio
n &
Verif
icatio
n
Asst. Director
Asst. Director
Asst. Director (Print)
Asst. Director (Dist)
Asst. Director
Asst. Director
Moni
torin
g
Com
mun
icatio
n &
Moni
torin
g
Com
mun
iatio
n
Communication Officer
M&E Officer
IT System Manager
Admin & Finance Director*
Corporate Management Advisor (Con. Firm)
Op. Management Advisor (Con. Firm)
IT Management Advisor (Con. Firm)
Financial Management Advisor (Con. Firm)
Info
r. Sy
stem
Data
Man
agem
ent
ICT
Oper
atio
ns
Sys. Analyst (1)
Programmer (2)
Asst. Prog. (3)
Sys. Analyst (1)
Programmer (1)
Asst. Prog. (3)
Main. Eng (1)
Asst. Main. Eng (1)
IT & Software Consultant
Database Consultant
Hardware Consultant
Network Consultant
Budg
etTr
ansp
ort,
Stor
e, CS
Com
mon
Ser
vices
, Bud
get &
Acc
ount
ing
Acco
unts
Asst. Director
Asst. Director
Accounts Officer
Dp. Director
Asst. Director (Procurement)
Asst. Director Finance+
Dp. Director
Rese
arch
&
Dev
HR &
Tr
ainin
g
HR, R
esea
rch
& De
v.
Asst. Director
Asst. Director
Technical Expert (65) Technical Support (25) Admin Officer (14)Office Asst cum Comp Op (5)
OA Cum Comp Typ, Data Entry Op, Photographer, Driver, HPR, MLSS
System Analyst (180 pm)
HR Firm - (2/3 person/ upazilla)
Fin & Cost Recovery con. (60pm)
Communication Management Firm
Proc. Specialist – Nat (18pm), Int (6pm)
Legal Consultant – Int (30 days)
Legal Consultant – Nat (30 days)
M&E Consultant – Nat (2pm)
FM Specialist (60pm)
Other Consultancy – as per need
Staff to be recruited for execution of the project
Staff under NID wing of Bangladesh Election Commission
Consultant – individual & Firm to be recruited for Project
Note:* Additional Responsibility, + Deputed full time
Existing EC Staff: DEC, DEO,UEO/TEO
Asst. Programmer (2)
36
i. Financial Management, Disbursements and Procurement
Overall, the residual financial management risk for the project is assessed as Moderate. The need for sound financial management arrangement and capacity at various levels are critical for this highly decentralized operation throughout the country and using mainstream management of the National Identification and Registration Wing (NIDW) to manage the project. According to the assessment, risks may arise from implementing agency’s weak financial management capacity, and inadequate exposure of the main implementing agency to Bank’s operation and coordination challenge among six divisional BEC offices that will be working under NIDW for financial management. NIDW will need to develop financial management capacity to handle such country wide program which requires smooth flow of fund flow, agency wise consolidation from multiple PIUs, timely preparation of financial reports and audit. The development of the financial management capacity of NIDW also encompasses establishment of a system for tracking revenue collection, reconciliation and reporting. The above risk will be mitigated by adopting several measures such as recruitment of professional and experienced FM staffs and also arrangement with implementation support consultancy (ISC)for financial management advisory services during the entire implementation period of the project, establishment of fund flow and payment mechanism all over the cost centers of the project following government treasury system, development of system for collection and reconciliation of revenues and additional monitoring through an operational audit with TOR acceptable to the Bank. Based on the project design features and risk analysis as summarized above, the following arrangements are proposed for financial management and disbursement. Flow of funds: IDA funds will directly flow to NIDW for the components to be implemented by the agency through a designated account. For ensuring smooth flow of fund across the various cost centers of BEC, the following arrangements have been agreed: • IDA funds will be disbursed both through a Designated Account. Project expenditure will
be made from the designated account which will be replenished upon submission of Withdrawal Application. To meet project expenditure in various cost centers across the country, project fund will flow from the designated Account to six separate bank accounts of the project to be operated at the BEC divisional level by designated officials. Procedure to transfer fund from the Designated Account to the operating Accounts will be finalized within three months after effectiveness.
Staffing: Adequate number of competent financial management staff in the NIDW is critical for successful implementation of the project. Project financial management specialist should be in place from the beginning of the implementation. It is therefore recommended that NIDW will hire a Financial Management Specialist from the market with a TOR agreeable to the Bank. To perform project activities at various locations it has been recommended that Financial Management staffs would be identified and a list of project FM personnel will be sent within 30 days after the project becomes effective.
37
Internal control: Internal controls for IDEA project will follow the standard policy and procedures of the government as well as project specific controls to be outlined in an Operations Manual as acceptable to IDA. The manual will be prepared within 06 (six) month from the effectiveness with the help of ISC and FMS of the project. Accounting & reporting system, policies and procedures will be driven by the said manual which will also ensure the segregation of duties and compliance with the government’s financial management guidelines and regulations including the Bank. Accounting & Reporting: Computerized accounting software will be used by the project within one year of credit effectiveness. Until the accounting software in place, the books of accounts, bank and cash book and registers for the fixed assets will be maintained manually. Chart of Account will be developed following GoB code of accounts and project components. The ten divisional BEC offices(cost centers) will prepare interim unaudited financial reporting (IUFR) for each calendar quarter and submit within 25 days from the end of the quarter to NIDW for consolidation. Actual expenditures of the cost centers will be compared with the budget of each quarter, budget variances and their rationale will be disclosed in the IUFR. The IDEA Project will consolidate the IUFR of the divisional offices and submit it to the Bank with 45 days after the end of the quarter. The Bank and project will agree a format of the IUFR showing receipts, uses and balances of funds of IDA fund and other sources (if any) and status of the procurement activities including contract wise status of payment against the contract value. Operational Audit: In view of the involvement of multiple agencies in the implementation of the project and highly decentralized operation it is recommended that the project would undergo periodic review such as operational/performance audit twice during the life of the project. The audit coverage shall essentially include Financial Management, Procurement and Operational aspects of the project. One of the audits can be carried out before the mid-term review and the other one a year prior to the credit closing. The TOR and the selection process will be subject to Bank’s concurrence. . External Audit: The NIDW will prepare annual financial statements for the entire IDEA project showing appropriate break down by parts of the project implemented each cost center (divisional BEC offices) NIDW and make it available to the auditor by September 15, each year. Such financial statements would be audited by the Foreign Aided Project Audit Directorate of the Comptroller and Auditor General (C&AG). A Statement of Audit Needs (SAN) will be prepared by the NIDW and agreed with the C&AG. The NIDW will submit the consolidated audited financial statements for the entire project and audit opinion to the Bank within 6 months of end of each fiscal year or no later than December 31 each year. Such audited consolidated financial statements will also be submitted to the Chair, Steering Committee with copies to the Secretary of each implementing ministry with management letters addressed to head of each implementing agency. The SAN will include audit focus on testing efficacy of internal control arrangements at various agencies and transaction testing for detection of fraud and corruption. The following audit reports will be monitored in the Audit Report Compliance System:
38
Coordinating Agency
Audit Type Auditor Deadline
National Identification Wing (NIDW) of the BEC
Audit of Project’s Consolidated Annual Financial Statements
Foreign Aided Project Audit Directorate under Comptroller & Auditor General
December 31
Project Audit Committee: To ensure that the audit reports generated by the external and operational audits of the project have met the TORs, the reports are reviewed and audit recommendations are followed up, a Project Audit Committee (PAC) will be set up with the Project Director as the Chair. The Deputy Secretaries overseeing audit matters in the BEC would comprise the other members of the PAC. The PAC will work as an extended arm of the Project Steering Committee and it will meet at least twice a year. Disbursement Arrangements: The project would be a five (5) year IDA credit of US$ 195 million, including taxes with GOB contributing an additional US$ 2.01 million in cash and in-kinds to finance part of the operating costs. The IDA fund will be disbursed on the basis of project financial reports (IUFRs). One segregated designated account to be opened in BDT at a commercial bank acceptable to IDA, with a ceiling of advance to the designated account based on forecast of two (2) quarters’ project expenditures to be financed by funds from the DA. Applications for requesting direct payment and reimbursement shall be supported by records of such expenditure and evidence of all payments made by PCU. All documentation showing expenditure shall be retained by the NIDW and shall be made available to auditors for audit and to the Bank, if requested.
The following table shows the IDA financing under different categories:
Table: Allocation of IDA Credit Proceeds
Expenditure Categories Total Cost
IDA Financing GOB Contribution
Amount % Share Inclusive of taxes
Amount % Share
Goods, Works, Consulting Service, Non-consulting services, Training, workshop, seminars, study tours
168.93
168.93
100% -
0%
Operating cost 28.08
26.07
93% 2.01 7%
Total 197.01 195.00 2.01
39
Withdrawal of the IDA Credit Proceeds of the Project will be conditioned to the preparation of the rules and regulations to implement the National Identity Registration Act, 2011, satisfactory to the Association. The Project will also have a retroactive disbursement up to US$ 1,500,000.00 for both categories mentioned in the above Table. The cut-off date for the retroactive disbursement will be on or after January 1, 2011. Supervision Plan: Financial management supervision will be carried out by the World Bank Financial Management Specialist (FMS) once a year in line with the moderate risk rating. The Bank FMS will also review: (i) quarterly IUFRs; Audit Reports and Management Letters from; and Report of Operational Audit and follow-up material accountability issues by engaging with the TTL, Client, and/or Auditors.
ii. Procurement
Procurement for the proposed project would be carried out in accordance with the World Bank’s "Guidelines: Procurement Under IBRD Loans and IDA Credits" dated January 2011 (Procurement Guidelines); and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated January 2011 (Consultant Guidelines)) and the provisions stipulated in the Financing Agreement.
All expected major procurement of works and consultants’ services has already been
announced in the General Procurement Notice (GPN), published in the dgMarket and United Nations Development Business (UNDB).
Procurement Responsibility: The overall responsibility of project implementation would
be with the BEC. Particular Methods of Procurement of Goods and Works: Except as otherwise agreed in
the procurement plan, works and goods may be procured on the basis of International Competitive Bidding. Procurement of Goods and Works having estimated value less than the ceiling stipulated in the Procurement Plan may follow National Competitive Bidding (NCB) and Shopping. Direct Contracting (Goods/Works) and Single Source Selection (Consultants) may be allowed under special circumstances with prior approval of the Bank. NCB would be carried out under Bank Procurement Guidelines following procedures for Open Tendering Method (OTM) of the People’s Republic of Bangladesh (Public Procurement Act 2006 - PPA, 1st amendment to PPA (2009) and The Public Procurement Rules 2008, as amended in August 2009) using standard bidding documents satisfactory to the Bank. The “Request for Quotation” document based on PPA is acceptable to IDA for shopping. For the purpose of NCB the following shall apply:
- post bidding negotiations shall not be allowed with the lowest evaluated or any other bidder;
- bids should be submitted and opened in public in one location immediately after the deadline for submission;
- rebidding shall not be carried out, except with the Association’s prior agreement;
40
- lottery in award of contracts shall not be allowed; - bidders’ qualification / experience requirement shall be mandatory; - bids shall not be invited on the basis of percentage above or below the estimated cost and
contract award shall be based on the lowest evaluated bid price of compliant bid from eligible and qualified bidder; and
- single-stage two-envelope procurement system shall not be allowed. Procurement of non-consulting services: Except as otherwise agreed in the procurement plan, non-consulting services may be procured on the basis of International Competitive Bidding. Procurement of non-consulting services having estimated value less than the ceiling stipulated in the Procurement Plan may follow National Competitive Bidding (NCB). The agencies will carry out such procurement using Bank Guidelines.
Methods of Procurement of Consultants’ Services: Selection of Consultants will follow the Bank Consultant Guidelines. The following methods will apply for selection of consultants: Quality and Cost-based Selection (QCBS), Quality-based selection (QBS), Fixed Budget Selection (FBS), Consultants’ Qualification (CQ), Least Cost Selection (LCS), and Single Source Selection (SSS). Shortlist of consultants for services estimated to cost less than US$200,000 equivalent per contract may be composed entirely of national consultants. For the selection of these national consultants, the request for proposal prepared on the basis of PPA as acceptable to the Bank may be used. The Procurement Plan will specify the circumstances and threshold under which specific methods will be applicable. Operating Costs: These costs will include incremental operating costs for office utilities, office supplies and stationeries, operation and maintenance of equipment and vehicles, hiring of vehicles, fuel, office rent, souvenirs, events, bank charges, advertising costs, and salaries and contractual allowances of contracted staff, but excluding salaries of Government officials.
Assessment of the Agency’s Capacity to Implement Procurement
Bangladesh has a nodal procurement policy agency and a Public Procurement Act (PPA) 2006 with associated Public Procurement Rules 2008 (PPR) and bidding documents. It created a critical mass of about 25 procurement professionals and, as of now, provided training to over 3200 staff of about 300 organizations. To sustain the reform, with Bank’s assistance, the Government has been implementing a second procurement reform project since late 2007, focusing largely on the implementation and monitoring of PPA including introduction of e-government procurement at key sectoral agencies.
Notwithstanding the above progress over the past years, recently the new Government made a few amendments to the PPA part of which were found not consistent with the Bank’s Guidelines, and as such the Bank for its projects allowed for local procurement the use of PPA / PPR with those exceptions. The procurement capacity assessment was carried out in BEC with web-based Procurement Risk Assessment Management System (P-RAM S). The assessment covered legislative framework, procurement planning, procurement processing, organizational functions
41
and staffing, internal control and support system, record keeping, and contract administration. BEC has not been involved in any Bank financed project. The agency neither has any procurement unit nor any dedicated procurement personnel within it to handle the procurement activities. Thus the agency is assessed significantly lacking procurement capacity to handle such a project with such largely valued international contracts of goods and consultancy. In order to minimize procurement associated risks, the following measures have been agreed upon with the Government. Part f these measures are already in place, while the remaining shall be implemented as the project preparation moves and the project is implemented. Identify procurement focal points (PFP) in BEC: BEC has nominated a procurement focal point for this Project. The appointed focal point will take necessary training, both on PPR 2008 and Bank Procurement Guidelines. The focal persons will help the respective agencies in day-to-day procurement follow-up and preparation of periodic procurement reporting.
Hiring of an individual international procurement consultant with sound knowledge in international procurement by BEC: This international procurement consultant will assist BEC for procurement of National ID cards and other related procurements. This international consultant will be the member of the bid evaluation committee for large IT procurements. The service of this consultant will be a part time basis. Hiring of a national procurement consultant with sound knowledge in the Bank Procurement Guidelines and Borrower’s Public Procurement Act / Rules. The service of this consultant will be full time basis. Establish a functional webpage for BEC with procurement related information accessible to the public: All information pertaining to bidding and procurement above the specified thresholds, as per PPR, will be published in Central Procurement Technical Unit’s (CPTU’s) website. In addition, BEC will publish procurement information on its own website. This information will include: invitation to bid, bid documents and RFPs (wherever applicable); latest information on procurement plan/contracts; status of evaluations once completed; contract award information; and information covering the poor performance of contractors, suppliers and consultants, including a list of debarred firms. The website would be accessible to all bidders and interested persons equally and free of charge. Establish a system for handling complaints and a database for recording, monitoring and follow up on all the procurement activities under the project in the BEC; and, Introduce a procurement risk mitigation plan (PRMP) by BEC through reports submitted to IDA on a periodic (semi-annual) basis with a set of features as mentioned below. The Procurement Risk Mitigation plan (PRMP) will have following features:
Alert bidders in pre-bid meeting: BEC through a notification will alert bidders during pre-bid
meeting on consequences of corrupt practices (fraud and corruption, collusion, coercion, etc.). The alert message, among others, will include that if bidders are found to have adopted such practices, there may be remedial actions including debarment from bidding processes in
42
conformity with the Bank’s Guidelines. For national competitive bidding, national bidders debarred, if any, under the PPA will not be able to participate. In addition, in the pre-bid meeting, the bidders will be clarified for preparation of bids correctly.
Alert internal officers/staff:
BEC will issue alert letter(s) notifying on the fraud and corruption indicators and the possible consequences of corrupt and similar behavior in procurement practices and action to be taken against the official staff if they are involved in such practices. Moreover, BEC will highlight that, in case of noncompliance or material deviation from IDA’s Procurement Guidelines, IDA may take remedial actions (i.e., withdrawal of funds, declaration of mis-procurement) for concerned contracts.
Multiple dropping:
Multiple dropping of bids (bids submitted in more than one location and opened in one location) will not be permissible for any procurement under this project.
Bid opening committee (BOC) & Bid Evaluation Committee (BEC):
A formally structured BOC will be constituted for each contract package. The BEC will have at least five members with two experts from outside the procuring entity with proven track record of experience in procurement; depending on the type of procurement such experts shall be either from public offices and/or from professional bodies/individuals of known probity. Formation of such BEC shall be in conformity with the Bank’s Guidelines and be acceptable to the Bank. Individual consultants and/or representatives of the consulting firm may participate as members of the BEC.
Bid opening minutes. During the same day of bid opening, photocopies of the Bid Opening Minutes (BOM) with readout bid prices of participating bidders will be submitted by BEC for circulation to all concerned. For prior review packages, such BOM will be shared with IDA.
Low competition among bidders and high price of bids:
The case(s) of low competition (not solely based on number of bidders) in ICB and NCB cases, coupled with high-priced bids will be inquired into and further reviewed by BEC. The review and decision in this regard would be in the context of qualification criteria, the contract size (too small or too large), location and accessibility of the site, capacity of the contractors, etc.
Measures to reduce coercive practices
: Upon receiving allegations of coercive practices resulting in low competition, BEC will look into the matter and take appropriate measures. For prior review contracts, observations of BEC will be shared with IDA, along with the evaluation reports. BEC may seek assistance from law enforcing agencies to provide adequate security for bidders during bid submission. For ICB contracts, provision for bid submission through international/national courier services will be allowed and confirmation of the receipt of the bid will be informed to the bidders through e-mail.
Rebidding: In case of re-bidding, BEC will inquire into the matter, record and highlight the grounds of re-bidding (i.e. corruption or similar, high bid prices etc.) along with recommended actions to be taken. For prior review of cases, all such detailed reports will be sent to IDA.
43
Filing and record-keeping:
BEC will preserve all records and documents regarding their public procurement in accordance with provisions of the PPA. These records will be made readily available on request for audit/investigation/review by the Development Partners and the Government.
Publication of award of contract:
BEC will publish contract award information within two weeks of contract award on its website, dgMarket/UNDB online, and CPTU’s websites with the following information: identity of contract package, date of advertisement, number of bids sold, number of submitted bids along with names, bid prices as read out at bid opening, name and evaluated price of each bid, number of responsive bids along with name of bidder, name of bidders whose bids were rejected and brief reasons for rejection of bids, name of the winning bidder and the price it offered, proposed completion of date of contract, as well as a brief description of the contract awarded.
Procurement Plan
A draft procurement plan covering all major procurement packages in ICB has been prepared for the entire duration of the project. This plan will be finally agreed upon between the Borrower and the Project Team prior to negotiations. It will also be available in the Project’s database and in IDA’s external website for this project. The Procurement Plan will be updated in agreement with BEC, at least annually, to reflect the actual project implementation needs and adjustments thereof.
Review by IDA of Procurement Decisions:
The review by IDA of procurement decisions and selection of consultants will be governed by Appendix 1 of the Bank’s Guidelines. For each contract to be financed by the Credit, threshold for prior review requirements and post review contracts will be identified in the Procurement Plan. During the first 18 months of the project, IDA will carry out prior review of the following contracts. This prior review threshold will be updated annually based on the performance of BEC/LGD:
(i) For Goods. All the ICB Contracts and Direct Contracts irrespective of estimated cost. The NCB Contracts estimated cost equivalent or more than US$500,000. (ii) For Works. All the ICB contracts and Direct Contract irrespective of estimated cost. First NCB contract regardless of value and thereafter contracts estimated to cost equivalent US$5,000,000 or more. (iii) For Consultant’s Services. Prior review will be required for consultants’ services contracts estimated to cost US$ 200,000 equivalent or more for firms and US$ 50,000 equivalent or more for individuals. All single-source contracts will be subject to prior review by and in agreement with IDA. All Terms of References of the consultants are subject to the IDA’s prior review; and
Detailed Procurement Arrangements.
Goods
44
Ref No. Contract Description Estimated Cost
Selection Method
Review By Bank (Prior/ Post)
Expected Bid
Opening Date
(‘000 US$) G1 Maintenance of a data center 2,604 ICB Yes Oct-11 G2 Supply, installation and maintenance
of a disaster recovery center 6,249 ICB Yes Oct-11
G3 Virtual Private Network supply, installation and maintenance
6,517 ICB Yes Sep-11
G4 Production and distribution of ID cards
113,822 ICB Yes Dec-11
G5 Workstations, Softwares, and accessories
5,053 ICB Yes Jan-12
G6 Integrated Business Management process supply, installation & maintenance
4,005 ICB yes Jan-12
G7 Supply, installation of Call center 729 ICB Yes Feb-12 G8 Utility vehicles for project & regional
offices 851 ICB Yes Feb-12
G9 Microbus for project office 52 NCB No Oct-11 G10 Other goods - block allocation (under
a number of packages - may include computer & accessories, furniture, other office equipments as and when necessary)
556 NCB No Jan-12
Services
Ref No. Contract Description Estimated Cost
(Thousand US$)
Selection Method
Review By Bank (Prior/ Post)
Expected proposal Opening
Date S1 Project Management Consulting -
Firm 3,125 QCBS Yes Oct-11
S2 Communication campaign management firm
3,125 QCBS Yes Nov-11
S3 HR Firm - to deliver Staff for Upazillas (2/3 Persons/ Upazilla)
15,063 QCBS Yes Nov-11
S4 International Consultant - Legal 31 SIC No Aug-11 S5 National Consultant - Legal 6 SIC No Jul-11 S6 Technical Assistance- System Analyst
(several individuals) 937 SIC Yes Oct-11
S7 Cost Recovery Consultant - national 250 SIC Yes Jul-11 S8 Procurement Specialist - Local 75 SIC Yes Jun-11 S9 Procurement Specialist - International 206 SIC Yes Aug-11 S10 M&E Specialist 10 SIC no Jun-11 S11 FM Specialist 250 SIC Yes Jun-11
45
S12 IT Software Consultant 250 SIC Yes Jun-11 S13 Database Consultant 250 SIC Yes Jun-11 S14 Hardware Engineer 156 SIC Yes Jun-11 S15 Networking Expert 156 SIC Yes Jun-11 S16 Block Allocation for Consultancy 521 SIC no Dec-11
i. Environmental and Social (including safeguards)
The positive social impact of the Project is considered potentially significant and expected to benefit both male and female population as well as minors. The absence of authoritative NID System has allowed frequent fraudulent use and counterfeiting of existing IDs, bringing down the level of trust to an unacceptable level in Bangladesh. It is expected that with a successful establishment of NID System, including a reliable database, hard-to-fake ID cards, and network for verifying IDs at various service points, citizens, public and private sectors, and society in general will build up a culture of trust and transparency in managing daily affairs of life by displaying their true and only identity. Any attempt to abuse the system through fake ID in a range of services, such as government social protection programs or mobile telephony and banking will be made extremely difficult, and it will in turn greatly reduce social transactions costs. The Project does not present any significant social issues according to the World Bank Safeguard policies and procedures (OP 4.12, OP4.10, OP7.50 and OP7.60).
The Project is not expected to present any significant safeguard issues. The specific consultant and goods contracts will include requirements of the Bank Safeguard policies and procedures if necessary. Compliance will be closely monitored by the borrower and supervised by the Bank. In accordance with the Bank Safeguard policies on environment (OP/BP/GP4.01 Environment Assessment) the Project has been assigned Category C, indicating that no environmental issues are anticipated. This assessment was based upon the project design, which does not include any physical construction activities, other than refurbishment of the existing project office.
ii. Monitoring & Evaluation
The Monitoring and Evaluation (M&E) of the Project will be integrated in the various components of the project. The implementation of an efficient M&E framework is essential in ensuring that the activities undertaken under the project consistently contribute to achieving the Project Development Objectives. NIDW will bear primary responsibility for project monitoring and evaluation. Project performance monitoring will be based on key performance indicators and intermediate outcome indicators as included in Annex 1.
The NIDW will establish standard formats, guidelines for data collection as well as
preparation and submission of monitoring reports to the Project Coordination Committee. In addition, the Implementation Support Consultant will include advisory capacity on M&E to
46
support NIDW’s efforts on results monitoring and evaluation. M&E training will be conducted by experts of the World Bank for the responsible agencies and project management consultants during the time of the project launch. The training will cover the basics of (i) monitoring and evaluation frameworks; (ii) different types of indicators, including impact and outcome indicators; (iii) collection efforts and (iv) reporting requirements of the World Bank projects.
Output and outcome indictors for each component will be collected at the project component level. Indicators will capture outputs and intermediate outcomes to ensure that activities are completed and have yielded the expected results. The benchmarks for these indicators will be obtained from NIDW as well as the Bangladesh Bureau of Statistics, the Local Government Division, and other agencies that will use e-ID services. NIDW will monitor implementation of the project through quarterly financial management reports, annual audits and other reports on semi-annual basis.
An internal review and monitoring committee led by PSC will meet semi-annually during the implementation and report to NIDW management. The output and outcome indictors for each component will be collected at the project component level. Indicators would capture outputs and intermediate outcomes to ensure that activities are completed and have yielded the expected results. The benchmarks for these indicators will be obtained from NIDW, LGD, BBS and other agencies that will use e-ID services. NIDW will monitor implementation of the project through quarterly financial management reports, annual audits and other reports on semi-annual basis.
A mid-term review will be conducted within 30 months of the project effectiveness to
assess implementation progress. This will provide an in depth assessment of progress towards project outcomes and will recommend measures to reorient the project if needed to ensure that it will achieve its objectives. At project closing NIDW will prepare a completion report documenting the projects achievements, results, its cost and the current and future benefits to be derived from it. iii. Role of Partners The IDEA project is financed entirely from the IDA Credit. UNDP is expected to implement a technical assistance project for the main implementing agency, BEC, during the implementation period. It aims to develop its election management capacity, especially in the areas of IT management and communication. It is agreed that the IDEA project, which exclusively supports the NIDW of BEC, would coordinate under the overall ICT and communication capacity development program of UNDP.
47
Annex 4: Operational Risk Assessment Framework (ORAF)
BANGLADESH: Identification System for Enhanced Access to Services (IDEA) Project Project Development Objective(s)
Project Development objective is to establish a secure, accurate and reliable national ID system in Bangladesh that serves as the basis for more efficient, transparent service delivery.
PDO Level Results Indicators:
Number of citizens having access to accurate, secure, reliable means of identification.
Number of public/private institutions regularly using electronic identity verification for their service delivery.
Risk Category Risk Rating Risk Description Proposed Mitigation Measures 1. Project Stakeholder Risks
1.1 Stakeholder Risks
Medium- I
High Impact/ Low Likelihood
Borrower Relations: The IA (Bangladesh Election Commission) has been engaged with a similar donor-funded project and even a leadership change is not likely to affect Government’s desire to implement national ID system Donor Relations: The ongoing UNDP Project to build overall ICT and communication capacity of BEC and to construct election offices at upazila level will impact on the IDEA project implementation schedule. Public Perception/Political Risk: Updating of fields and utilization of the NID database for ID verification may reveal minor inaccuracies/inconsistencies (e.g. spelling errors).
Continuous dialogue with the IA is taking place, informing them of each step of project preparation and advance procurement. A National ID Master Plan by UNDP was prepared with participation of the Bank team and client’s input and technical specification of tendering documents have been agreed with the Bank The Project includes a sizeable contingency fund to address any potential shortfalls of UNDP projects Communications program notes updating fields for purposes of new NID system including new cards; ID verification service protocols have speedy means of addressing inconsistencies
48
2. Project Risks
2. 1 Design Risk
High High Impact/ High Likelihood
Technical complexity: The project has several components which will be highly complicated from a logistical and technical standpoint: updating information and adding new entries for millions of individuals to the ID database; entering into a large IT related contract to handle new card production; and ensuring distribution to approximately 90 million persons in all regions of Bangladesh. Legal and IT arrangements for utilization of data by other agencies will be complicated. Implementation/institutional arrangement complexity: there is one implementing agency, but support will be needed for other agencies to use the ID database, as well as ensure logical linkage of the birth registration system and the national population registry
The project will develop a detailed operations manual and will pilot test key implementation aspects such as mass distribution of new cards and providing e-ID services to agencies. An implementation support consultancy will assist the NIDW to carry out all functions and build capacity. A large communication strategy will be carried out to facilitate the data updating and distribution processes.
2. 2 Safeguards Risk N/A N/A
2.3 Program and Donor Risk
Low
The NIDW/BEC will have software, equipment and upazila offices provided earlier by the UNDP project. In the event of shortcomings in this infrastructure, the project would need to adjust implementation to overcome such problems.
The Project includes a sizeable contingency fund to address any potential shortcoming of UNDP projects BEC and the Bank agreed on the issues that are not captured in the Master Plan
2.4 Delivery Quality Risk
Medium-I High Impact/ Low Likelihood
Sustainability: The success and sustainability of the project critically depends on the human capacity of the IA (specifically National ID Department of BEC). The IT skills required to manage the tasks would require salaries matching market rate. If the initial skill set is supported by Bank finance, appropriate business model needs to be in place to ensure sustainability of the resources. Contract management: Given the large IT contracts involved, the IA would require significant support to handle the procurement and manage the contracts during implementation.
BEC would hire ICT officials to complement external consultants hired under the Project. Intensive on-the-job training will be provided during the project. The project management firm would help IA to manage all contracts throughout the implementation of the project
49
Overall Risk Rating at Preparation Overall Risk
Rating at Implementation
Comments
Medium-I Medium-I
Technical and implementation arrangements complexity and sustainability risk after the project completion are main risks associated with the Project. The mitigation measures proposed are considered effective and realistic. Overall, the project risk is rated low likelihood and high impact at both preparation and implementation stage.
50
Annex 5: Implementation Support Plan (ISP)
Strategy and Approach for the IS
1. Introducing a nation-wide ID system and linking it to various services in public and private sector is a multifaceted operation with substantial risks. Thus, it warrants a highly strategic and programmatic approach with strong technical, operational and fiduciary skill sets to support successful implementation. Also, country-based implementation support is considered necessary to handle various types of expected and often unexpected issues in a timely manner.
2. The implementing agency, BEC, has first-hand experience of building similar system of 87 million
voters’ list. Though simpler and smaller in technical complexity and population coverage, these experiences have produced core staff within agencies.
3. With this background, the ISP for the IDEA project largely consists of three subgroups; coordination and
policy support team, technical support team, and fiduciary team. The coordination and support team, including TTL and governance advisor, would focus on policy, legal and institutional aspects of operations. The technical team would work closely with the fiduciary team to make sure technical aspects such as database, network, ID card production are satisfactory to IDA. Finally, the fiduciary team, both procurement and financial management, would work closely with the implementing agency to manage several large volume goods procurement. Both coordination and policy support team and fiduciary team are based in the country, while the technical team, due to its rarity and cost implication, would be located in India and Washington, DC.
4. In addition, it is agreed that the Project would hire an international implementation support firm who
would be responsible for the entire cycle of contract management, including quality control of goods and services rendered and financial management of the proceeds from the Project. The unique nature of ID system and card production tendering and its one-time requirement for the implementing agency, BEC, justifies the outsourcing arrangement. This, in turn, would give the IDA a high level of fiduciary assurance.
5. The IS team would also work closely with the relevant Bank’s projects to ensure that e-ID service is fully
utilized to improve transparency and efficiency of public services. It is worthy of noting that of all potential services that the Project aims to provide, the e-ID services are ones with on-going and planned Bank operations. The IS team would actively engage those managing such operations to maximize leverage and synergy from various Bank operations.
6. During the implementation of IDEA project, it is expected that UNDP would provide a technical
assistance project to the BEC in developing its election management capacity. It is agreed with UNDP that a number of UNDP’s key activities such as IT and public relations capacity development would closely coordinate with similar activities under the IDEA project, which exclusively focuses on NID Registration Wing of BEC.
7. Recognizing the importance and value of managing the project by results, the IDEA project has built in an
activity for enhancing M&E capacity within the implementing agency. It would also be part of the responsibilities of the implementation support consultancy contract whereby an M&E expert would be recruited to pair with a BEC official(s). Finally, the implementation support team would include an M&E expert on a long-term basis for ensuring adequate monitoring and evaluation of data.
51
I. Main focus in terms of support to implementation during:
Time Focus Skills Needed Resource Estimate Partner Role First twelve months
Initial set-up of implementation arrangement Tender management for major contracts Transition management from previous project to the IDEA
Procurement Financial management/ disbursement
US$ 150,000/year
12-48 months Production/distribution of ID cards Digitization of birth registration data Provision of e-ID services
Expertise on datacenter, network, ID card production, and e-service delivery
US$ 120,000/year
Other Development and implementation of exit strategy to ensure sustainability Project closing
Institutional/capacity development Monitoring and evaluation
US$ 120,000/year
II. Skills Mix Required
Skills Needed Number of Staff Weeks
Number of Trips Comments
Overall coordination and client and donor management (TTL)
10 weeks/year Field-based
Operations support Technical expertise on large scale database, network, ID card production
5 weeks/year 2 trips/year
Monitoring and evaluation 3 weeks/year 2 trips/year Financial management 3 weeks/year Field-based Procurement 4 weeks/year Field-based
III. Partners
Name Institution/Country Role Najia Hashemee UNDP Project Manager of PERP Project
52
Annex 6: Team Composition
World Bank staff and consultants who worked on the project:
Name Title Unit
Junghun Cho Team Leader, Senior Public Sector Specialist SASGP
Charlie Undeland Senior Governance Specialist SASGP
Rejwana Farha Governance Analyst SASGP
Eduardo Talero Senior e-Governance Consultant SASGP
Nag Yeon Lee Senior ICT Consultant SASGP
Wyly Wade Senior ICT Consultant SASGP
Md. Faijul Islam Information Analyst SASBD
Alema E. Siddiky M&E Consultant SASGP Rubaba Anwar Research Assistant SASGP
Suraiya Zannath Senior Financial Management Specialist SARFM
Mohammad Mahbubur Rahman
Financial Management Specialist SARFM
Tanvir Hussain Procurement Specialist SARPR Mehar Akhter Khan Office Administrator SASEP
53
Annex 7: Economic and Financial Analyses
I. Introduction
The analysis considers possible economic, social and financial benefits of the IDEA project. It includes: (i) an economic and social benefits; (ii) financial analysis measuring the impact of the investment in the project and (iii) regional experience of national identification card.
The proposed project is expected to generate significant social and economic benefits in Bangladesh. The results from the financial analysis shows that the project is technically sound. Whilst the presence of a digitized national ID system is inherent for any country at least to provide a valid base of identity to its citizens, there are numerous added benefits streaming out of a digitized, reliable national identity system. Many of the benefits are difficult to quantify but have major impacts on the beneficiaries’ lives. The economic benefits can be classified into three categories: (i) citizens; (ii) country and (iii) service agencies (public & private). The following economic benefits are described below in order of types of impact.
II. Economic Analysis
a. Higher revenue for public and private service agencies
• Better identification means for more thorough tax collection and improved taxpayer information to banks: Tax collection remains below the mark in Bangladesh14. Currently, about 1 million out of 2.7 million TIN holders actually file tax. Though tax collection has improved in the first half of the current fiscal year with a growth rate of 27%15
since last year, the aim is to raise tax revenue to 14% of GDP by 2015. Digitized citizen database may aid in enhanced accuracy of identification of taxpayers, registering eligible tax payers under the tax bracket and ensure collection of tax from fugitive tax payers. At the same time banks will have more concrete information whilst approving loans to clients leading to reduced risk of default.
• Enhanced focus on client service of banks: Lower administrative burden of ID verification leaves more time for focus on client service, leading to higher customer satisfaction and customer loyalty.
• Improved m-Commerce leading to a new channel of revenue for telco and banks In Bangladesh, mobile banking remains restricted to utility bill payment only to retain Bangladesh Bank’s control over flow of money against money laundering. M-banking could be spread beyond this through IDEA when users can be specifically identified and be of significant economic benefit:
o In a country where only 5% of the population has access to formal banking channels whereas 30% of the population has access to mobile phones.
o Boost revenues for telco industry. 14 About 2% of the total population, amounting to less than 9 % of GDP 15 The Financial Express, January 2011
54
o Boost revenues for banks whilst reducing transaction costs. M-Remittance
in Bangladesh remains restricted to international transfers only following lack of identity means of remitters of money. This channel also could bring in significant revenues to the Telco industry.
• Proliferation of e-Commerce improving revenues of banks and internet companies Internet service providers number upto 106 in Bangladesh. IDEA, giving a valid means of identity is likely to facilitate access to internet connection (in line with government’s regulation) and raise user base to contribute to export growth, and access to information through use of various information resources, applications and e-banking. Currently, internet banking is restricted to first party transactions only, following lasck of information about third parties. This could easily be solved through use of NID numbers. • Market development and inclusion of new customers for telecommunications industry (Telco): As of late 2010, National ID was made a mandatory document as the only acceptable ID, by the government for telcos to sell sim cards. Without widespread distribution of a reliable ID, and unavailability of IDs to new adults, Telcos lose out on including new customers. Assuming that the number of voters has grown by 6% over the last two years, telcos are losing out on a revenue of as much as US$ 17.14 million (6% of 87 million at a rate of BDT 200/US$ 3 per sim) from such potential clients who have entered the telco target market but are not effective clients without national IDs.
b. Cost savings/risk mitigation for public and private service agencies
Increased stress on “know your customer” or KYC of banks entails detailed documentation from customers for national private and multinational banks. In many instances e-KYC versions are used. Multiple documentation requirements from various sources to prove identity increases administrative burden on banks and raises cost in terms of labor hours. If a centralized system of identification is used, administrative burden of verification may be reduced in two ways: (i) easier tracking of money laundering due to better adherence to regulation and (ii) increased chances of identifying loan defaulters16
.
Improved identity verification means for passport issuance: Since late 2010, machine readable passport (MRP) is being issued to citizens. A rigorous process of identity verification is embedded in passport issuance starting from identity proofs to the ultimate verification by Bangladesh Police through a visit to the applicant’s address according to submitted identity proof documents. Whilst the national ID system may not replace such a detailed verification process, it may certainly add further accuracy to the data held by the department. • Customer retention - Identify customers so that churning risk leading to non-recovery of sales cost is minimized: This is owing to BDT 800 tax burden on the Telco that raises customer acquisition cost to BDT 1,100 per user i.e. nearly US$ 16, against average one-time revenue of
16 Current default rate is 8.47 % (Bangladesh Bank, 2010)
55
only BDT 200 i.e. less than US$ 3 (subject to promotional offer that often brings it lower owing to cut throat competition). When the highest average revenue per user month (ARPU) stands at only US$ 3.47, with a monthly churn rate of 2% on average, for recovering a cost of US$ 16, the telco would need to retain the user at least 5 months to break even. IDEA would help identify churned customers and reduce losses of upto US$ 0.45 million per month (2% churn rate of 69 million subscribers growing at a rate of 30% per annum). Acquiring new customers to compensate for churned old customers may not be a preferred option for telcos in maturity phase. Thus, knowing existing clients is essential for them. • Minimize regulatory risk by being proactive and verifying customer identity so that any new regulatory requirement of identity verification does not come as a punitive surprise. A phase of “re-registering existing sims” enforced by regulation during 2006-2008, 1,000,00017 sims were deactivated by law enforcing agencies following lack of registration. Currently, BTRC data indicates that 56% of the prepaid sims18
that account for almost 90% of the mobile phone market have fake/no user information. Hence, a regulatory action such as that of 2006 at this point in time, as is expected in June 2011, would lead to a loss of US$ 150.7 million, assuming that 56% of 30% (average annual growth rate) of the total industry subscribers are not registered and all are in the first month of purchase which means US$ 3 (sim price) of US$ 16 cost has been recovered. Thus, a reliable national identity database would be of utmost benefit in identifying users proactively to minimize such losses.
c. Crime tracking
• Social responsibility and protection against terrorism- In 2006, regulation even enforced telcos to dismantle network infrastructure within 8 km of the Indian border area in order to minimize conducive environment for terrorist activity through communication devices. Having access to a centralized, reliable national database of people would help minimize such threats and act as a blanket to track miscreants during instances of crises. At the same time, tracking flow of money for cases of money laundering would also be enhanced.
d. Improved access to service delivery and enhanced access to information and credibility national issues
• Improved access Improved penetration of mobile phone and internet connection leads to better access to
public service, access to information and communication and an environment conducive to economic growth. A World Bank study (2009)indicated that 10% rise in penetration of mobile phone leads to 1.3% rise in economic growth, and according to a study by Clark and Wellsten in 2006, 1% rise in internet users leads to 4.3% rise in exports. A reliable national ID system can help determine and manage mobile phone and internet penetration for better effects on the ecconomy. • Proper beneficiary identification 17 GrameenPhone 18 Accounts for 90% of the mobile phone market have fake/no user information.
56
Current IDs are not reliable following the ease of being faked. Multiple documentation identity proof is often needed for access to service, raising citizens’ stress. However, with a digitized, reliable national ID, deserving person gets service with easier access to service delivery. • Improved national stance of government Through IDEA, a sense of national ownership shall be provided to citizens and the reliable ID cards linked to an accurate database will enhance credibility of national elections through identifiable voters.
Without IDEA With IDEA Net benefit Higher revenue
Taxes less than 9 % of GDP; 1 million out of 2.7 million TIN holders actually file tax.
Enhanced accuracy of identification of eligible and fugitive taxpayers.
Higher tax revenue to meet 14% tax: GDP ratio by 2015.
Administrative burden of verification as opposed to revenue generating activities.
Better focus on client service of banks.
Improved banking service to retain customers.
Restricted m/e-commerce Improved m/e-Commerce leading to a new channel of revenue for telco and banks
Improved revenues for banks and telco through m/e-commerce
Telco losing out on potential revenue of as much as US$ 17.14 million from new adults.
Market development and inclusion of new customers for telco.
Additional revenue of telco of as much as US$ 17 million.
Cost savings/ risk mitigation
Increased importance of KYC of banks without appropriate means of verification. 8.47% default rate.
o Easier tracking of money
o Reduced default risk with correct identification.
Better informed banks with enhanced money laundering and default safeguards.
Significant administrative burden accruing from multiple verification documents for passport issuance.
Valid identity proof eliminating multiple documents for biodata.
Strengthened and more efficient identity verification means for passport issuance
High churning and no means of identifying churned users to recover sales cost of as much as US$ 0.45 million/month.
Retention of customers through customized communication, reducing non-recovery risk.
Prevent losing up to US$ 0.45 million/ month to telco customer churning.
Telco risks losing US$ 150.7 million (approx.) barring of approximately 1million (2007) unregistered sims.
Regulatory risk of sim barring penalty minimized through proper means of registration.
Reduced risk of losing US$ 150 million to deactivation of unregistered sims.
Crime tracking
Wary crime tracking situation leading to regulatory measures on telco and banks.
Accurate identification system for law enforcers to track miscreants.
Improved crime tracking situation.
30% mobile phone penetration rate; minimal access to internet.
Access to information and communication hindered due to lack of identity proof shall be eased.
Improved mobile and internet penetration leading to economic growth.
57
III. Financial Analysis
IDEA is expected to generate revenue on the basis of its use to the service providing agencies, in exchange of a minimum charge to be affirmed by the government. For purpose of analysis, BDT 20 or US$ 0.30 has been used to calculate an NPV of US$ 69 million, assuming depreciation and operational costs but no reinvestment, IRR of 13% and payback period of 6.67 years. Assumptions also include a discount rate of 7% (based on trend historical inflation rates) and timeframe till 2020. Sensitivity analysis shows the minimum charge/verification yielding a positive NPV is BDT 15/ US$ 0.21. Based on the analysis, assuming that identities of existing clients/beneficiaries will also be verified, the telecommunication sector is the highest revenue generator, and National Board of Revenue, the lowest. Though quantifying in terms of how much economically benefitted each of the analyzed sectors will be is not rationally possible as multiplier effects and external influence are likely to have a major impact, and overall, the benefits accruing to the sectors will eventually reflect on the citizens and economy as a whole, following is a basic representation of the magnitude of benefits to each stakeholder considered.
IV. Impact of National ID Program: Regional Experience
National ID card is used by the government of several countries to track their citizens for the purpose of allocating government benefits, taxation, health care and other social services. Most of the developed and some developing countries have realized the importance of a national ID and have already implemented or are in the process of implementing the same.
In United States of America, Social Security Number (SSN) originally was issued to track the disbursement of social benefits, but now SSN is mandatory for services like opening bank accounts or obtaining drivers license amongst others. In Columbia, ID cards are required to enter public places such as subway stations, courtrooms and airports. In Belgium, ID card can be used as work permit or temporary residence permit.
Malaysia is regarded as the first country to introduce smart identity cards- a proof of success in large scale biometrics. The smart card has helped improve customer service by
Citizen issues
Misdirection of services of benefits
Proper beneficiary identification
Reduction of resource duplication.
Lack of a reliable ID system depriving citizens of a valid identity card to avail services.
Improved national stance of government through a valid national ID card.
Sense of national ownership
Total quantifiable benefits US$ 167.45 million Benefits not quantifiable due to unavailability of data
Economic growth, increased tax revenue, additional revenue from improved client focus, m/e commerce
Non-quantifiable benefits Improved public service, reduced default and money laundering risks, improved crime tracking, access to information and service
58
reducing the time spent to register customers as well as verifying accurate and genuine data. The establishment of the smart card has brought automation and improved service delivery requiring an average time to less than 40 seconds to access bank statements electronically as compared to queuing up. Some banks have used it for queue management in such that smart card speeds up service delivery and reduces turnaround time in conducting daily transactions. The smart card has improved relationship with the private sector and Government. The ID card is featured in such a way that it is flexible and can accommodate multiple retail transactions for businesses. The ID with its digital signature feature enables secure-ecommerce transactions and expedites the process of verification for overall service delivery.
59
Annex 8: Terms of Reference for Project Management Support Consultancy
Background The Bangladesh Election Commission (BEC) is responsible for registering all citizens eligible to vote and for conducting free, open and independent elections in the country according to the Constitution. In addition, the BEC has recently been made responsible by the Government of the People’s Republic of Bangladesh (GoB) for issuing a secure identity card to citizens and for administering all related activities, including the maintenance of a national citizen identification database and delivery of identity verification services to qualified public and private organizations. The BEC has established a National Identity Wing (NIDW) to administer this broad national identity system (NIDS). This system is expected to be a strategic national resource to facilitate delivery of public and private services to their intended beneficiaries. The GoB intends to apply for a credit in the approximate amount of US$ 200 million equivalent from the International Development Association (IDA) towards the cost of the proposed NIDS and the building of the institutional capacity of the NIDW, under a proposed Identification System for Enhanced Access to Services (IDEA) project. The proceeds from the credit will be used to procure eligible goods and services under this project. Part of the proceeds of this proposed project will be used to procure the services of a management consulting firm (the Consultant) to assist the NIDW (the Client) in establishing the new organization, managing its operations, implementing the IDEA project and helping to build the capacity of the NIDW by transferring knowledge to key managers and staff on managerial, operational, technical and administrative aspects of their mission.
1. Objectives and Scope of the Assignment 1.1 The Consultant’s overall objective in this assignment is to provide to NIDW management all support required to make NIDW a high-performing, service-oriented, self-financing public organization at par with the best in the world. This will be accomplished primarily but not exclusively through the following core activities:
• Developing a highly motivated and highly skilled management cadre and work force in the NIDW organization, fully in tune with core values of service to clients, market-based performance measurement, public service and accountability, financial self sufficiency and technology orientation.
• Introducing state-of-the art resource management, administration and operational control systems
• Leading the introduction of an integrated system of national identification in Bangladesh centered around a unique and life-long national identification number and corresponding identification card. The system will also integrate the use of the core personal information associated with each NID number across the various government agencies and primarily among the National Bureau of Statistics (for National Population Register System), the
60
Local Government Department (for Birth and Death Registration System) and the BEC’s National Identity Wing (NIDW, for NID System).
• Contracting from the best international sources and appropriately supervising the design, personalization, life-cycle management and distribution of highly secure citizen identification cards for all eligible persons in Bangladesh, in accordance with international process quality and security standards.
• Capturing new data or correcting existing data as necessary for the initial issuance and handout of approximately 85 million national identity (NID) cards and necessary card additions and corrections every year thereafter.
• Deploying and operating under international quality and security standards state-of-the-art technology facilities.
• Maintaining highly accurate data bases needed for the NIDS, linking these data bases as necessary to provide seamless identity verification (e-ID) services, and ensuring the integrity, security and privacy of the data at all times.
• Establishing and managing long-term service relationships with public and private sector client organizations for the delivery of e-ID services. Expanding the service offerings and the client base for maximum socio economic leverage of the NID data base.
• Supply chain management to support the overall implementation of the project
2. Scope of Services and Main Deliverables
2.1 As the Consultant will be directly supporting the management of NIDW, its role can range from providing advice to assuming effective supervisory responsibility for parts of the work program, at the discretion of management. For purposes of preparation of their proposal, prospective consultants should assume that the latter will be their prevailing role in this engagement. Thus in the following description of the responsibilities of each of the members of the Consultant’s team, the (delegated) executive role is being assumed, except when noted. 2.2 Except if third party sourcing is identified, when specific responsibilities listed below require specialized skills or additional staff, the prospective consultants are responsible for proposing the specific tasks, duration, skills, timing and costs of additional team members to carry out those responsibilities. In no case the Consultant will be eligible to provide the identified third party services or software. 2.3 Similarly, when any of the responsibilities listed below require third party consultancies, procurement of ICT or development of software, the Consultant should in its proposal describe the broad terms of reference, specifications, cost and time of these additional inputs. In its inception report, the selected Consultant will provide detailed account of the same topics. The cost of these additional inputs will not be evaluated as part of the Consultant’s proposal, but their coherence and consistency with these TOR will be evaluated as part of the proposal’s technical merit.
61
2.4 The Consultant will have a generalized responsibility to transfer knowledge to local management and staff on all the areas of engagement under this Project. 2.5 Manuals for entire process and procedure in Bengali and English.
Corporate Management Advisor 2.6 The overall responsibility of the corporate management advisor of the Consultant team
coincides with that of the IDEA project director and NIDW Director General19
. Its specific responsibilities include but are not limited to:
• Lead the PMC consultant team for overall attainment of the project objectives and results.
• Review, modify as necessary and formally adopt the NIDS Master plan being prepared under separate financing by the PERP project20
• Develop a comprehensive Project implementation plan in accordance with the objectives and priorities of BEC and NIDW management, with the Master Plan and with the results framework, resources and time under the IDEA project. The Consultant should strike a practical balance between planning and implementation of high priority activities, taking into account the recent establishment of the NIDW.
. Since this master plan will become the guiding document for the Consultant, a key responsibility is to point out in the Inception Report any gaps or deficiencies that may exist.
• Maintain at all times project implementation, procurement and resource utilization plans fully compatible with the NIDS Master Plan and with the IDA Credit Agreement21
• Coordinate the development of a feasible and sustainable business and organizational model for operation of the electronic identity (e-ID) verification services including data ownership, oversight, service delivery, financing, cost recovery, staffing, safeguarding of data, protection of privacy, performance monitoring and Right to Information (RTI) Act reporting.
. Develop a managerial dashboard for rapid summary information on the status of these plans, and a computerized tool that automatically reflects in all of them the effects of any change.
19 Who will most likely be the same person. 20 Preparation of Electoral Roll with Photographs, UNDP project No. BGD/07/002 in
partnership with Government of Bangladesh and the governments of Denmark, European Commission, Republic of Korea, The Netherlands, Norway, Sweden, Switzerland and United Kingdom.
21 Samples of these documents are available from Project Director upon request.
62
• Coordinate the development of terms of reference for and supervise third party system integration services to develop and deploy state-of-the- art resource management, administration and operational control systems for NIDW.
• Advise the NIDW Director General, the BEC Secretary and the Election Commissioners on the human, organizational and technical aspects involved in introducing a culture of data governance and data sharing among the various government agencies keeping identity data on individual citizens. This new culture should eventually allow Bangladesh to reach uniformity in numbering schemes, clear accountability for data sets and gradual reduction of identity tampering practices in society. For this purpose, develop and maintain close cooperation and provide support to the Prime Minister Office Access to Information Project, to the newly created Informatics and Statistics Division of the Bangladesh Bureau of Statistics and to the Ministry of Local Government.
• Represent the NIDW in committees that may be set up to discuss or oversee implementation of a strategy towards an integrated NID System as outlined in the attached Annex.
• Develop a quality management system for NIDW and put in place suitable implementation mechanisms with a view to obtaining ISO 9001 certification by the end of the Project.
• Develop and supervise implementation of a comprehensive capacity building and change management program for NIDW personnel responsible for all facets of the NIDS.
• Supervise implementation of a comprehensive communications program targeted to all NIDS stakeholders, to be designed and executed by a third party.
• Coordinate the fulfillment of all IDEA Project-related responsibilities, as specified below in this document.
IT Management Advisor 2.7 The overall responsibility of the IT Management Advisor is to design, procure, deploy, and manage the entire technology infrastructure necessary to implement the NIDS system, including hardware, software, and communications facilities. Since much of this infrastructure is being procured by the BEC under separate financing from UNDP22
, a key responsibility is to assume management of the related supply and service contracts and of the entire infrastructure, once in place.
A. Evaluating the ICT procurement contracts under the PERP project and deciding how they affect the procurement strategy under IDEA.
• Developing and adopting IT management plan and a data administration system for NIDS.
22 Including a high security data center; a disaster recovery site; central citizen registration and automated
fingerprint verification software; decentralized citizen enrollment and card issuing software to be operated online from Upazillah, district and regional offices throughout the country.
63
• Designing and managing a service contract for operation of a wide area data communications network between the central Data center, disaster recovery system, and 501+ Upazillah offices, 63 district offices, and 10 regional offices, as well as related training, technical and user support in accordance with a negotiated service level agreement. A network operation center (NOC) would be collocated with the NID Data Center and operated under similar security standards.
• Developing the specifications and supervising third party supply and installation of a local area network for the NIDW along with appropriate office software. Organize and supervise provision of user support services by NIDW staff.
• Developing enterprise architecture for NIDW, including data, systems and security architectures. Setting rules for, testing, accepting and registering web services, as part of governance for service-oriented architecture.
• Developing procedures and software for possible cross data base comparison and data cleansing between NID and each of the established client data bases (passport, TIN, social schemes, mobile subscribers, bank account holders) in advance of and (possibly) as a pre-requisite for e-ID verification services.
• Designing and implementing a security management system for NIDS in accordance with ISO 27001 standards, to ensure NIDW’s control and protection of the NID data bases while providing secure and widely accessible e-ID verification services.
• Designing and developing web services to provide e-ID services to client organizations through the government-wide Service Delivery Broker, if available, or directly otherwise.
• Developing the terms of reference for and supervising third party software development services to implement an NID card handout scheduling system accessible to citizens through user-friendly telephone and Web- based interfaces.
• In coordination with the NIDW general and IT management, coordinate the implementation of all computerized steps in the transition towards an integrated NID System.
• If consistent with the timing of the Consultant’s contract, overseeing construction, operational testing, commissioning and acceptance of a Tier 3 data center for the NIDS.
Operations Management Advisor 2.8 The general responsibility of the Operations Management advisor is to design and implement the necessary procedures, records, databases, safeguards, quality standards and public communications for production, issuance, replacement and disposal of national identification cards. She/he shall also be responsible for supply chain management. His/her specific responsibilities include but are not limited to:
• Review proposed regulatory framework for the National ID and Registration Act and
translate its provisions into an operations manual for the NID system, including all the operational procedures for amendment or capture of data, registration of new voters, and replacement of current voter ID cards with new NID cards.
64
• Review as early as possible the processes involved in any e-ID services being provided under the PERP project and develop a comprehensive, specific, and time-bound set of actions - legal, institutional, and technical – to institutionalize the same services under the NIDS according to the quality, security and technical standards being introduced under the Project.
• Review current BEC procedures for correction of citizen identification data and verify that those procedures are adequately documented in the NIDS Master Plan and computerized in the PERP-financed Voters Register Client Software. If not, modify the Master Plan and arrange for modification of the PERP software by its developers.
• Introduce a comprehensive workflow management system to support execution of and supervision of all NIDW operational procedures.
• Contract with ISO 9001 and CWA 14641-certified third party and supervise the design, procurement, personalization, life-cycle management and distribution of highly secure national identification cards for 90 million citizens in Bangladesh, plus approximately 2% per year increase of existing voters in the subsequent 4 years, in accordance with international process quality and security standards.
• Organize and supervise data capture, improvement and correction as necessary for the issuance and handout of the above NID cards throughout the country.
• Advise and coordinate with Ministry of Local Government on creation and operation of the Birth and Death Registration Data Base according to technical and security standards equivalent to those of the NID data base. Ensure that all possible internal data cleaning processes are completed for that data base before it is linked with the NID database for provision of seamless e-NID services.
• In coordination with NIDW Director General and IT management, implement all steps in the transition towards an integrated NID System.
Financial Management Advisor
• Oversee all accounting, budgeting, financial management, tax and audit functions of the organization.
• Report accurately and timely historical financial information of the organization in accordance with government accounting practices in Bangladesh and also in accordance with international accrual accounting standards.
• Formulate and direct financial strategy in close coordination with the DG, COO and CCO.
• Oversee the budget and fiscal reporting of the organization and develop a long term plan to operate under a corporate or similar legal structure
• Supervise investment and fund raising taking into consideration risk and liquidity.
• Study, analyze and report on trends, opportunities for expansion and projection of future company growth.
65
• Identify the impact of various pricing strategies on the organization’s overall financial performance and develop income and revenue projections accordingly.
• Analyze costs and efficiency of the various functions of the NIDW and propose improvements in design and performance of those functions to meet the overall financial strategy.
• Develop the terms of reference for and supervise third party software development services to implement a cost recovery mechanism for the NIDS. The mechanism must consider price demand elasticity for e-ID services and possibly subsidy schemes to the poor for the costs associated with issuance and replacement of national ID cards.
IDEA Project-related Responsibilities
2.9 The Consultant will have the following procurement and project management responsibilities related to IDEA project. They will be coordinated by the Consultant’s Project Management Advisor and discharged by the entire Consultant’s team, as necessary:
Procurement 2.10 The Project will hire a senior procurement advisor to take responsibility for management of all procurement actions, including particularly those under the IDEA project in accordance with IDA guidelines. Thus the Consultant will have mostly, but not exclusively, a support role with respect to procurement, particularly focused on the technical aspects. The responsibilities will be:
B. Upon designation by NIDW, assume effective management responsibility for
implementation of any contracts with third parties for the purposes of the Project.
C. Prepare technical requirements and performance specifications for goods and services to be procured under the Project;
D. Prepare terms of reference for consulting services to be procured under the Project;
E. Attend pre-bid/pre-proposal meetings and assist the Procurement advisor in responding to technical questions from prospective bidders/consultants
F. Assist tender evaluation committees and proposal evaluation committees in the evaluation of bids/ proposals
Project Management for IDEA 2.11 The senior procurement advisor together with the Financial Management Advisor will be responsible for developing corresponding procurement and financial management manuals and obtaining IDA clearance for them, as one of their first deliverables. 2.12 Other than this, the intention is to make management of NIDw coincide as much as possible with management of IDEA, both for reasons of efficiency and to ensure the smooth continuation of activities when IDEA closes. Nevertheless, the following special tasks will be necessary with respect to IDEA:
66
G. Make available to IDA in advance of every semi-annual Project implementation
support mission an internally consistent set of implementation, procurement and financial management (budget and disbursement) plans, and ensure that the appropriate tools are in place for analysis of those plans during the mission.
H. In the follow up to each of the above missions, incorporate into the three plans any agreed changes and report on implementation of the changes in the subsequent mission.
I. Prepare a mid-term Project progress report with the status of the Results Framework agreed for the project, as well as with the status of implementation schedule, financial performance and procurement for the Project.
J. If consistent with the timing of the Consultant’s Contract (see below Para 4.1), prepare a comprehensive Project completion report as required by IDA and provide all necessary assistance to IDA for preparation of its own Project Implementation Completion Report.
3. Reporting Requirements
3.1 The primary reporting requirements for this assignment are satisfied by development and maintenance of the Project management dashboard mentioned under Para 2.5 above and by the IDEA Project-related reports identified immediately above. . In addition, each of the Advisors will be responsible for production of managerial and operational reports typical of their functional area. Finally, in terms of the overall consultancy, the Consultant will produce:
K. An Inception Report within two months of start of the assignment with a detailed implementation and staffing plan for the consultancy, timetable for production of the main deliverables and if necessary terms of reference and cost estimates for required additional Consultant team specialists.
L. A Progress Report with the content, frequency and timing as determined by NIDW or BEC management.
4. Time Period 4.1 It is envisaged that the Consultant will start work from June 2011 and end December 2016 to coincide with IDEA Project completion. However, the assignments of the four principal advisors will be for a minimum of 2 years and at the discretion of the Client may be extended, changed or rotated in semi-annual increments to be agreed upon no less than 6 months in advance.
5. Staffing Schedules
5.1 The Consultant shall provide a detailed schedule of proposed staff and corresponding duration of assignment. The staffing proposal should clearly indicate the international or national origin of staff inputs.
67
5.2 Staffing changes may be proposed by either party and no change may be effected by the Consultant except with the prior approval of the Client. In case of substitutions proposed by the Consultant, the Consultant at its own cost will ensure reasonable overlap between departing and new staff as well as smooth continuity of work.
6. Qualifications
6.1 The estimated time, qualifications and experience of the Consultant’s team is as indicated in the table below. As observed earlier, the Consultant’s proposal may include additional specialist team members, for specific tasks and shorter time periods. 6.2 Given the nature of this assignment in direct and personal support of NIDW managers, Consultant team members should all have highly developed human relations and communications skills. Fluency with Bangla language and past experience in Bangladesh is highly desirable and will be considered in the evaluation.
68
Annex 9: Terms of Reference for Communication Program Consultancy
Background The Government of Bangladesh has recently charged the Bangladesh Election Commission to develop a nation-wide Identification system, building on the voter-list database, and to provide verification services to core public and private sector services. The National ID and Registration Act has been promulgated to provide a high-level legal framework and the National ID and Registration Department within the BEC has been established to administer the NID system. The absence of reliable means of NID System and the proliferation of fragmented database for various services have taken a heavy toll of inefficiency and corruption in the past years in this country. In this regard, the successful preparation of electoral voter list database of 85 million citizens for the 9th parliament election23 is considered laying a crucial foundation for building a national ID system. This comprehensive database24
for national ID system, not only created the immense demand of voter ID cards, an unintended by-product of electoral voter-list preparation, but also has made the authorities realize an acute need for proper ID scheme and robust ID card in country.
Having a comprehensive and reliable national ID system is a precondition for effective public policy formulation, and targeting and verification of various public and private service deliveries. The NID system provides vital information for policy makers to formulate well-targeted national government programs and provide a highly effective means to verify that such programs reach only intended beneficiaries. Such verification services by NID equally benefit private sector such as banks and mobile companies by making sure that only legitimate users are allowed to subscribe their services. Many countries also find NID system a must for national security and anti-terrorist drive. To date the BEC has initiated, among other interventions, upgrading the current data center and establishing robust communication network to provide reliable verification services through decentralized offices at the Upazila level; replacing current paper-laminated voter ID card, which have been frequently faked in the market, with more robust, hard-to-fake national ID card; and developing rather an autonomous and highly efficient department to administer NID system. The proposed IDA financed IDEA project will aid Government’s initiatives in making a reliable NID system. Once fully implemented, the NID system is expected to make a significant impact in the way which the government, private sectors and citizens interact. Beneficiary of public services should be verified against national ID, greatly reducing the scope of leakage; private sectors would ensure authenticity and legitimacy of their service users; and any
23 Held in December, 2008 and the election process has been widely recognized for its fairness. 24 However there is a need to clean up duplicate IDs and other inaccuracies in the current database
69
transactions using NID verification would be considered more reliable. This eventually would contribute to reduce social transactional costs and increase overall level of trust in Bangladesh. Specific Project Development Objective: The project aims to establish an secure, accurate and reliable national ID system in Bangladesh that serves as the basis for more efficient, transparent service delivery. The key results expected from the proposed Project are:
o Approximately 85 million national ID cards produced and distributed to eligible citizens within project period.
o The database is linked with at least two key pilot services where the data would be shared and used for improved service delivery
o Data center and disaster recovery facilities established for the new national ID database.
o Well functioning National ID Registration Department of BEC established
Communications Challenge The communication strategy for this project is critical for various reasons. First, citizens would need to understand the need for a more secure ID card and the benefits of using it. Second, the users of the ID card need to be made aware of the procedures of verifying information and obtaining the card in a systematic manner. The previous voter ID card distribution had the help of Bangladesh Army and huge temporary infrastructure was built for rapid distribution of the cards. The proposed project would largely depend on Government’s existing capacity and infrastructure that would be appended by the resources provided by the project. Hence, the methodology and pace of operation would be considerably different from those of BEC’s previous efforts and therefore, citizens’ expectations need to be matched with practical project output and timeline. Third, different strata of society would have varying level of incentives for replacing the ID card. The communication strategy would require careful targeting keeping in mind these shifting incentives among citizens. Fourth, in addition to citizens, there would be public and private service providers, who would make use of the identity verification service provided by BEC as envisioned by the project. In order to operationalize such system, design of linkages needs to take place much before the production of ID cards starts. An accurate and effective communication would be required among the agencies on the advantages of such linkage, process and modality of operations. More generally, the communication strategy would have to ensure active participation of citizens, awareness generation, behavioral change in terms of having trust in the NID operations and assist Government reach its objective of operationalize NID system within a reasonable time. Experience has shown that development projects, especially those requiring behavioral change need early and continuous communication to the stakeholders. In this way the benefits of the project are widely understood and both real and perceived concerns of stakeholders are taken
70
into account. Mainstreaming of communication and outreach activities early of the project lifecycle leads to better design and sequencing of the project, larger stakeholder support, and, ultimately, smoother implementation.
Communication Objectives Effective dissemination should engage stakeholders in a process of increased awareness, understanding and commitment to action. In order to ensure the most effective impact, communication should take multi-strand approach, with appropriate methods to meet the needs of the various stakeholders. The main objective of the communication strategy of IDEA project is twofold; result in a change in knowledge and understanding of the benefits of national ID cards and its uses and also increased engagement of citizens in the process of NID operations for effective implementation. The major communication objectives would be:
• To position NID system in Bangladesh using appropriate mix of instruments • To help create awareness and strengthen public understanding for the need of having
National ID system and its benefits • Create enabling environment and public demand for having a National ID system for
relevant sections of the society. • To support the National ID Registration Wing of BEC to publicly communicate the
activities, impacts and benefits of having a national ID card during the preparation and implementation phase of the Project.
• Plan and conduct national and local level campaign to facilitate operations (updating of information and replacing ID cards) of NID system. This is perhaps the most difficult part of the communication program. Informing citizens at each step of the process and help the project team with timely and effective public announcement is key to the success of the NID system. The communication program needs to play an important role in this regard.
• To manage expectations of citizens and stakeholders • Informing public and private service providers on the process of linking National ID
database with service delivery mechanisms and its benefits. • To ensure project communications are done in a transparent manner and documents
are shared in alignment with the government’s and development partners’ disclosure policy.
The consultants will need to prepare a Communications Strategy that helps BEC achieve the above objectives. The formulation of the Communications Strategy will be a two-phased exercise – the first will take the form of a diagnostic Communications Needs Assessment to map stakeholder perceptions and attitudes and to identify the institutional capacities within BEC needed for conducting public communications. The second phase will be the articulation of the actual Communications Strategy followed by implementation of the strategy.
71
Scope of work
Task One: Inception Report: • The consultant is expected to detail the scope, methodology and approach being
adopted for the subsequent tasks. • The consultant is expected to present the approach including key stakeholders
analysis, sample size, sample selection methodology and survey instruments most suitable to collect information (questionnaire, Focus Group Discussions, in-depth interviews, etc.) in the Inception Report.
Task Two: Communications Needs Assessment:
The aim of this exercise is to get a comprehensive understanding of the communication needs of the IDEA project. The consultants will need to:
• A comprehensive understanding of how the Project is perceived by various stakeholder groups;
• An identification of the communication gaps vis a vis each of these stakeholder groups;
• An identification of the major messages that need to be communicated; • Make a sophisticated assessment of the key messages, points of 'connect', and
medium of communication needed to influence stakeholders -- this will entail identifying their most credible sources of information.
• Conduct a detailed media-mapping at the national and local levels • Identify individuals/groups/institutions that can be potential partners in the interface
with each stakeholder group. • Identify key opportunities/platforms for the effective dissemination of key messages
over the course of project implementation • Identification of communication tools and mix for mass and targeted
communications • Develop the evaluation method for the success of the communication intervention • An assessment of the existing institutional capacity for communications
Methodology
The consultants will need to conduct detailed reviews of secondary information, but will
primarily depend upon field visits and direct consultations/interactions with stakeholders at the local and national levels.
Deliverables A report that includes: • Detailed mapping and analysis of stakeholder perceptions • Assessment of stakeholder-wise communication gaps in messaging as well suggested
messages
72
• Gap analysis of BEC’s institutional capacities to conduct communications and suggested institutional set-up needed to undertake communications
Task Three: Communications Strategy
Based on the findings from the communication based need analysis, the consultants will have to formulate, in discussion with internal stakeholders and key decision-makers, a communications strategy for the IDEA Project. Under this component, the consultants will be required to develop a phased action plan outlining target audience, key elements of the communication strategy for each strata of audience, along with an estimate of time and schedule, human and financial resources required for implementing each of those components. The communication strategy will incorporate the right mix of communication tools needed to reach target population. The communication mix will be designed to run national campaign as well as ensure reaching to targeted stakeholder groups. It is envisaged that the communications strategy for a Project of this scale and profile will require an effective mix of mass communications, advocacy (general and targeted), community-mobilization and social messaging. The tools will need to range from mass media, social advertising, direct interaction, media engagement, and advocacy. The strategy will also need to suggest appropriate institutional mechanisms/structures for implementing the suggested communications approach. The communication strategy should include development of key message that can later be elaborated at the implementation stage.
Deliverables • Draft Communication Strategy • Workshop to discuss draft with internal decision-makers • Final Communications Strategy including a phased action plan
Task Four: Implementation of Communications Strategy and Monitoring Results
The Consultant will be responsible for the implementation of specific communication activities that will be laid out in the Strategy/ Action Plan followed by completion of task three. The Implementation phase of the assignment should include a communication calendar reflecting the action plan prepared in the communication strategy. The consultant would undertake necessary activities to implement the strategy using the right mix of communication tools that is relevant to reach out to the target audience and fulfill the communication objectives. This may include, but not limited to, use of print and electronic media, production of short documentaries, billboards, communication materials, notice boards, loudspeaker announcements and many more.
The consultant will also develop an M&E system for continuous monitoring and final evaluation of the proposed communication program. This system will include, among others, opinion research tracking studies, media monitoring, focus groups, and evaluation of each of the major individual activities.
73
Deliverables • A detailed communication activity calendar for given time frame within ** months
after inception of task • M&E framework to monitor the communication outcomes • Quarterly review reports Quarterly reports on the activity undertaken during
respective quarters • Short briefs on each activity within 2 weeks after completion (less than 2 pages) • Report on evaluation of the impact of the campaign at the end of each year • Database of contacts created through the campaign activities
Qualifications and Skill Requirements
The consultants will need to have a highly-qualified team with a broad range of skill mixes that allows it to deliver the discrete tasks identified above. The consultants will need to show the followings:
(a) experience in conducting and designing, respectively, similar communication surveys
and strategies in terms of size and complexity; (b) experience in designing and managing communication strategy and social campaigns;
and (c) the ability to rope in experts with a good understanding of culture and social
programs in Bangladesh.
Accordingly, the criteria for selection of the consultants will include, inter alia,
(i) corporate experience in designing communication need assessment surveys and communications strategies; (ii) Commitment in terms of on-the-ground presence of consultant personnel with knowledge in key functional areas spanning communication needs research/analysis and communication strategy.