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Document of The World Bank Report No: ICR0000317 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-40520 MULT-56510) ON A CREDIT IN THE AMOUNT OF SDR196.1 MILLION (USD 300.0 MILLION EQUIVALENT) & GRANT IN THE AMOUNT OF USD 387.98 MILLION TO THE PEOPLE’S REPUBLIC OF BANGLADESH FOR A HEALTH, NUTRITION AND POPULATION SECTOR PROGRAM June 27, 2012 Human Development Sector Bangladesh Country Management Unit South Asia Region Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

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Document of

The World Bank

Report No: ICR0000317

IMPLEMENTATION COMPLETION AND RESULTS REPORT

(IDA-40520 MULT-56510)

ON A

CREDIT

IN THE AMOUNT OF SDR196.1 MILLION

(USD 300.0 MILLION EQUIVALENT)

&

GRANT

IN THE AMOUNT OF USD 387.98 MILLION

TO THE

PEOPLE’S REPUBLIC OF BANGLADESH

FOR A

HEALTH, NUTRITION AND POPULATION SECTOR PROGRAM

June 27, 2012

Human Development Sector

Bangladesh Country Management Unit

South Asia Region

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CURRENCY EQUIVALENTS

(Exchange Rate Effective)

December 31, 2011

Currency Unit =Bangladesh Taka (Tk)

Taka 84 = USD1

USD 0.0167 = Taka 1

FISCAL YEAR (July 1 – June 30)

ABBREVIATIONS AND ACRONYMS

AIDS

ANC

APIR

Acquired Immune Deficiency Syndrome

Antenatal Care

Annual Program Implementation Report

APR Annual Program Review

BDHS Bangladesh Demographic and Health Survey

BMMS

CES

CIDA

Bangladesh Maternal Mortality Survey

Coverage Evaluation Survey

Canadian International Development Agency

CPR Contraceptive Prevalence Rate

DCA

DFID

Development Credit Agreement

Department for International Development (United Kingdom)

DGFP Directorate General of Family Planning

DGHS Directorate General of Health Services

DP Development Partner

DSF Demand-side Financing

EC European Commission

EKN

ESD

Embassy of the Kingdom of the Netherlands

Essential Services Delivery

FM Financial Management

FMAU Financial Management and Audit Unit

FMR Financial Monitoring Reports

FY Fiscal Year

GDP Gross Domestic Product

GOB Government of Bangladesh

HEU Health Economics Unit

HIV Human Immuno-deficiency Virus

HNP Health, Nutrition and Population

HNPSP Health, Nutrition and Population Sector Program

HPSP Health and Population Sector Program

HSDP

HR

Health Sector Development Program

Human Resources

HCWM Health Care Waste Management

IDA International Development Association

IMED Implementation, Monitoring & Evaluation Division, Ministry of Planning

IO

IRR

ISR

Intermediate Outcome

Internal Rate of Return

Implementation Status and Results Report

JICA Japan International Cooperation Agency

KfW Kreditanstalt für Wiederaufbau (Germany)

LD Line Director

LLP Local Level Planning

M&E Monitoring and Evaluation

MDG

MDTF

Millennium Development Goal

Multi-Donor Trust Fund

MIS Management Information System

MMR Maternal Mortality Ratio

MOF Ministry of Finance

MOHFW Ministry of Health and Family Welfare

MOLGRDC Ministry of Local Government, Rural Development and Cooperatives

MSA

MTR

NCD

Management Support Agency

Mid Term Review

Non-Communicable Diseases

NGO

NNP

Non-Government Organization

National Nutrition Program

NPV Net Present Value

NTP National Tuberculosis Program

OP Operational Plan

PAD

PBF

PDO

PER

PFM

Project Appraisal Document

Performance Based Financing

Project Development Objective

Public Expenditure Review

Public Financial Management

PIP Program Implementation Plan

PMA

PSO

Performance Monitoring Agency

Program Support Office

RFW Results Framework

RVP

SBA

Regional Vice President

Skilled Birth Attendant

Sida Swedish International Development Cooperation Agency

SIP

SWAp

Strategic Investment Plan

Sector-wide Approach

TA Technical Assistance

TB Tuberculosis

THE Total Health Expenditure

TTL

UNFPA

UESD

WHO

Task Team Leader

United Nations Population Fund

Utilization of Essential Service Delivery

World Health Organization

Vice President: Isabel M. Guerrero

Country Director: Ellen A. Goldstein

Sector Manager: Julie McLaughlin

Project Team Leader: Bushra B. Alam

ICR Team Leader: Bushra B. Alam

ICR Primary Author: Finn Schleimann

 

BANGLADESH

HEALTH NUTRITION AND POPULATION SECTOR PROGRAM

CONTENTS

Data Sheet

A. Basic Information

B. Key Dates

C. Ratings Summary

D. Sector and Theme Codes

E. Bank Staff

F. Results Framework Analysis

G. Ratings of Project Performance in ISRs

H. Restructuring

I. Disbursement Graph

1. Project Context, Development Objectives and Design ............................................... 1

2. Key Factors Affecting Implementation and Outcomes .............................................. 6 3. Assessment of Outcomes .......................................................................................... 15 4. Assessment of Risk to Development Outcome ......................................................... 20

5. Assessment of Bank and Borrower Performance ..................................................... 20 6. Lessons Learned ....................................................................................................... 23

7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 24

Annex 1. Project Costs and Financing .......................................................................... 26 Annex 2. Outputs by Components ................................................................................ 27

Annex 3. Economic and Financial Analysis ................................................................. 30 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 37 Annex 5. Beneficiary Survey Results ........................................................................... 39

Annex 6. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 40 Annex 7. Comments of Co-financiers and Other Partners/Stakeholders ...................... 49

Annex 8. List of Supporting Documents ...................................................................... 52 Annex 9. Results Framework of HNPSP ...................................................................... 54

 

A. Basic Information

Country: Bangladesh Project Name:

Bangladesh - Health

Nutrition and Population

Sector Program

Project ID: P074841 L/C/TF Number(s): IDA-40520,TF-56510

ICR Date: 06/26/2012 ICR Type: Core ICR

Lending Instrument: SIM Borrower: GOVERNMENT OF

BANGLADESH

Original Total

Commitment:

USD 300.00M (IDA Credit);

USD 450.00M (MDTF) Disbursed Amount:

USD 293.40 M (IDA

Credit)

USD 387.80M (MDTF)

Revised Amount: USD 300.00M (IDA Credit)

USD 387.90M (MDTF)

Environmental Category: B

Implementing Agencies:

Ministry of Health and Family Welfare

Cofinanciers and Other External Partners: Canadian International Development Agency (CIDA) Embassy of the Kingdom of the Netherlands (EKN)

European Commission (EC)

Kreditanstalt für Wiederaufbau (KFW) Germany

Swedish International Development Agency (Sida)

UK Department for International Development (DFID)

United Nations Population Fund (UNFPA)

B. Key Dates

Process Date Process Original Date Revised / Actual

Date(s)

Concept Review: 02/11/2004 Effectiveness: 06/14/2005

Appraisal: 11/17/2004 Restructuring(s):

10/22/2009

07/30/2010

03/02/2011

Approval: 04/28/2005 Mid-term Review: 04/01/2008 02/15/2008

Closing: 12/31/2010 12/31/2011

C. Ratings Summary

C.1 Performance Rating by ICR

Outcomes: Satisfactory

Risk to Development Outcome: Moderate

Bank Performance: Satisfactory

Borrower Performance: Satisfactory

C.2 Detailed Ratings of Bank and Borrower Performance (by ICR)

Bank Ratings Borrower Ratings

Quality at Entry: Moderately Satisfactory Government: Moderately Satisfactory

Quality of Supervision: Satisfactory Implementing

Agency/Agencies: Satisfactory

Overall Bank

Performance: Satisfactory

Overall Borrower

Performance: Satisfactory

C.3 Quality at Entry and Implementation Performance Indicators

Implementation

Performance Indicators

QAG Assessments (if

any) Rating

Potential Problem Project

at any time (Yes/No): Yes Quality at Entry (QEA): Moderately Satisfactory

Problem Project at any

time (Yes/No): Yes

Quality of Supervision

(QSA): Moderately Satisfactory

DO rating before

Closing/Inactive status:

Moderately

Satisfactory

D. Sector and Theme Codes

Original Actual

Sector Code (as % of total Bank financing)

Central government administration 36 36

General education sector 4 4

General public administration sector 9 9

Health 40 40

Other social services 11 11

Theme Code (as % of total Bank financing)

Child health 13 13

Health system performance 24 24

Nutrition and food security 25 25

Other communicable diseases 13 13

Population and reproductive health 25 25

E. Bank Staff

Positions At ICR At Approval

Vice President: Isabel M. Guerrero Praful C. Patel

Country Director: Ellen A. Goldstein Christine I. Wallich

Sector Manager: Julie McLaughlin Anabela Abreu

Project Team Leader: Bushra Binte Alam Cornelis P. Kostermans

ICR Team Leader: Bushra Binte Alam

ICR Primary Author: Finn Schleimann

F. Results Framework Analysis

Project Development Objectives (from Project Appraisal Document [PAD]) The project assisted the Government of Bangladesh (GOB) in the implementation of its

Strategic Investment Plan (SIP), 2003-2010, for the Health, Nutrition & Population

Support Program (HNPSP) with support from a large group of Development Partners

(DPs) through a Sector-wide Approach (SWAp). The main purpose of the SIP was to

increase the availability and utilization of user-centered, effective, efficient, equitable,

affordable and accessible quality services be it the Essential Services Package, improved

hospital services, nutritional services or other selected services. To achieve these

objectives, the program focused on three major reform areas: (i) Strengthening Public

Health Sector Management and Stewardship Capacity, through development of pro-poor

targeting measures as well as strengthening sector-wide governance mechanisms; (ii)

Health Sector Diversification, through the development of new delivery channels for

publicly and non-publicly financed services; and (iii) Stimulating Demand for essential

services by poor households through health advocacy and demand-side financing options.

Revised Project Development Objectives (PDO)

The PDO as described in the PAD was not changed. During the Mid-Term Review

(MTR), the Results Framework (RFW) was changed and the change was approved as part

of a Regional Vice President level restructuring in October 2009.

(a) PDO Indicator(s)

Indicator Baseline Value

Original Target

Values (from

approval

documents)

Formally

Revised

Target

Values

Actual Value

Achieved at

Completion or

Target Years

Indicator 1 :

Proportion of total Ministry of Health and Family Welfare (MOHFW) expenditure

allocated to the 25% poorest districts (increasing to 40%) – dropped during MTR.

Revised to: percentage of MOHFW expenditures at the upazila level and below (on

07-Oct-2009)1

Value

quantitative or

Qualitative)

25% (original indicator ) ;

45% (for the revised

indicator)

40 %

50% revised

on 07-Oct-

2009

47%

Date achieved 06/30/2005 06/30/2010 06/30/2011 06/30/2011

Comments

(incl. %

achievement)

40% achieved; source: Public Expenditure Review 2008/09 (published in July

2011).

Indicator 2 :

Utilization rate of Essential Services Delivery (ESD) of the two lowest income

quintiles increased – divided into two parts (a and b) during MTR.

Revised to (on 07-Oct-2009): Utilization rate of ESD of the two lowest income

quintiles: (a) Delivery attended by skilled personnel2

1 Not the original PAD indicator, as it was changed at restructuring.

2 Modified from the original PAD indicator.

Value

quantitative or

Qualitative)

55% (as per PAD);

baseline revised to 4.10%

(for the revised indicator)

during MTR

65% 10% set on 07-

Oct-2009 11.8%

Date achieved 12/01/2004 06/30/2010 06/30/2011 06/30/2011

Comments

(incl. %

achievement)

131% achieved; source: Utilization of Essential Service Delivery Survey (UESD)

2010.

Indicator 3 : Utilization rate of ESD of the two lowest income quintiles: (b) Antenatal coverage

(by medically trained provider)3

Value

quantitative or

Qualitative)

55% (as per PAD);

baseline revised to 32.5%

(for the revised indicator)

during MTR

65%

40% revised

on 07-Oct-

2009

40.3%

Date achieved 12/01/2004 06/30/2010 06/30/2011 06/30/2011

Comments

(incl. %

achievement)

104% achieved; source: UESD 2010.

(b) Intermediate Outcome Indicator(s)

Indicator Baseline Value

Original Target

Values (from

approval

documents)

Formally

Revised

Target Values

Actual Value

Achieved at

Completion or

Target Years

Indicator 1 : Proportion of births attended by skilled personnel (from 12% to 40 % by 2010)

Value

(quantitative

or Qualitative)

25% (as per PAD);

baseline revised to 15.5%

during MTR

40%

28% revised

on 07-Oct-

20094

26.5%

Date achieved 06/30/2004 06/30/2010 06/30/2011 11/30/2011

Comments

(incl. %

achievement)

88% achieved; source: Bangladesh Maternal Mortality Survey (BMMS) 2010

Preliminary Report.

Indicator 2 : Tuberculosis (TB) case detection rate (from 41% to 70% by 2010)

Value

(quantitative

or Qualitative)

41% (as per PAD);

baseline revised to 46%

during MTR

70%

72% revised

on 07-Oct-

2009

74%

Date achieved 06/30/2003 06/30/2010 06/30/2011 06/30/2011

Comments

(incl. %

achievement)

108% achieved; source: National TB Program (NTP) 2010 (as reported in

Directorate General of Health Services [DGHS] Health Bulletin 2011).

Indicator 3 :

% of children 1-5 receiving Vitamin A supplements during the last 6 months

Revised (on 07-Oct-2009) to: % of children age 9-59 months receiving vitamin A

supplements during the last 6 months5

3 Modified from the original PAD indicator.

4 Reduced from PAD (was 40%), but baseline also lower than what was assumed in PAD (originally 25%).

Value

(quantitative

or Qualitative)

81.80% 90% 90% 92%

Date achieved 06/30/2004 06/30/2010 06/30/2011 06/30/2011

Comments

(incl. %

achievement)

124% achieved; source: Coverage Evaluation Survey (CES) 2011.

Indicator 4 : Non-communicable disease (NCD) strategy developed and implemented as per

details in results framework

Value

(quantitative

or Qualitative)

Strategy not yet

developed.

Strategy

implemented

Strategy

developed;

NCD risk

behavior

survey, NCD

piloting, and

Injury piloting

activities are

incorporated

into the

operational

plan (OP)

Strategy developed

and updated; NCD

risk behavior survey

conducted; NCD

piloting and Injury

piloting activities are

incorporated in the

NCD Operational

Plan

Date achieved 12/01/2004 06/30/2010 06/30/2011 06/30/2011

Comments

(incl. %

achievement)

Fully achieved; source: Annual Program Implementation Report (APIR) 2010.

Indicator 5 : Proportion of contracts awarded within initial bid validity period (95% from 2006

onwards)

Value

(quantitative

or Qualitative)

N.A. 95% or more 90% or more6 80%

Date achieved 06/10/2005 06/30/2010 06/30/2011 06/30/2011

Comments

(incl. %

achievement)

89% achieved; source: APIR 2010.

Indicator 6 :

Demand-side financing (DSF) pilots on schedule as per details in results

framework

Revised to: % of women targeted by voucher scheme who deliver by skilled birth

attendants (at facility or at home)7

Value

(quantitative

or Qualitative)

N.A. (as per PAD);

7% (for the revised

indicator)

Piloted by 2006,

evaluated in

2007 and scaled up

in 2008

60% revised

on 07-Oct-

2009

64%

Date achieved 06/01/2005 06/30/2010 06/30/2011 06/30/2011

5 Slightly modified from the original PAD indicator

6 Changed from 95% to 90% at MTR

7 Modified from original PAD indicator

Comments

(incl. %

achievement)

108% achieved; source: Economic Evaluation of DSF Program for Maternal

Health in Bangladesh 2010

Indicator 7 : % of districts with disease surveillance reports8

Value

(quantitative

or Qualitative)

52%

N/A (as this

indicator was

added during MTR

(on 07-Oct-2009)

95% 95%

Date achieved 12/01/2004 06/30/2011 06/30/2011

Comments

(incl. %

achievement)

100% achieved; source: APIR 2010.

Indicator 8 : % of children (under 1 year) fully immunized9

Value

(quantitative

or Qualitative)

68.4%

n/a (as this

indicator was

added during MTR

(on 07-Oct-2009)

85% 80%

Date achieved 12/01/2004 06/30/2011 06/30/2011

Comments

(incl. %

achievement)

70% achieved; source: CES 2011.

Indicator 9 : TB cure rate10

Value

(quantitative

or Qualitative)

85%

n/a (as this

indicator was

added during MTR

(on 07-Oct-2009)

85% 92%

Date achieved 12/01/2004 06/30/2011 06/30/2011

Comments

(incl. %

achievement)

108% achieved; source: NTP 2010 (as reported in DGHS Health Bulletin 2011).

G. Ratings of Project Performance in ISRs

No. Date ISR

Archived DO IP

Actual Disbursements

(USD millions)

1 06/16/2005 Satisfactory (S) Satisfactory 0.00

2 12/15/2005 Moderately Satisfactory

(MS) Moderately Satisfactory 0.00

3 05/10/2006 Moderately Satisfactory Moderately Satisfactory 43.07

4 10/27/2006 Moderately Satisfactory Moderately Satisfactory 54.57

5 04/25/2007 Moderately Satisfactory Moderately Satisfactory 131.05

6 05/25/2007 Moderately Moderately 131.05

8 Added to the original PAD indicators 9 Added to the original PAD indicators

10 Added to the original PAD indicators

Unsatisfactory Unsatisfactory

7 11/20/2007 Moderately

Unsatisfactory

Moderately

Unsatisfactory 124.71

8 01/19/2008 Moderately

Unsatisfactory

Moderately

Unsatisfactory 124.71

9 05/13/2008 Moderately Satisfactory Moderately Satisfactory 124.71

10 12/05/2008 Moderately Satisfactory Moderately Satisfactory 124.71

11 06/16/2009 Moderately Satisfactory Moderately Satisfactory 144.59

12 11/18/2009 Moderately Satisfactory Moderately Satisfactory 226.05

13 06/22/2010 Moderately Satisfactory Moderately Satisfactory 235.95

14 01/15/2011 Satisfactory Satisfactory 287.66

15 04/02/2011 Satisfactory Satisfactory 287.78

16 11/30/2011 Satisfactory Moderately Satisfactory 293.59

H. Restructuring (if any)

Restructuring

Date(s)

Board

Approved

PDO

Change

ISR Ratings at

Restructuring

Amount

Disbursed at

Restructuring

in USD

millions

Reason for Restructuring & Key

Changes Made DO IP

10/22/2009 MS MS 171.95

This was an RVP level restructuring

to: (i) modify two PDO indicators

and to refine the intermediate

outcome indicators to improve

relevance and accuracy in

measurement; (ii) reduce the

resource envelope for program

parts/activities that have not been

implemented and/or are progressing

slowly, and to reallocate funds to

pro-poor activities; and (iii) extend

the Closing Date of the program by 1

year to December 2011.

07/30/2010 MS MS 235.98

Approved by the World Bank’s

Country Director to document a

change in the amount of the grant to:

1) include agreed additional

contributions from CIDA and

KfW; and 2) reduce DfID’s original

commitment of co-financing.

03/02/2011 S S 287.66

Approved by the World Bank’s

Country Director. Restructuring to

show (i) a reallocation of available

funds between the disbursement

categories, and (ii) increasing the

amount of the grant from USD 335

million to USD 387.9 million.

I. Disbursement Profile

$0

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Original amount Revised amount Cumulative expenditure

1

1. Project Context, Development Objectives and Design

1.1 Context at Appraisal

In spite of being regularly affected by natural disasters and being one of the poorest and

most densely populated countries in the world, Bangladesh sustained high rates of

economic growth with considerable improvements in social indicators over the two

decades preceding this project. As such, the country was well on the way to achieving

many of the Health Nutrition and Population (HNP) related Millennium Development

Goals (MDGs).

Notwithstanding the achievements gained in the past years, Bangladesh faced an

unfinished agenda of systemic problems, originally identified in the Health and

Population Sector Strategy of 1997. In 1998, the strategy was translated into a five-year

program, the Health and Population Sector Program (HPSP), which had marked a shift

from multiple individual project approach to a single health Sector Wide Approach

(SWAp). While key health outcomes had improved under HPSP, albeit at a faltering rate,

the GOB‘s agenda of systemic reform could not be completed.

At the appraisal of HNPSP, key issues faced by the sector included:

Health Inequalities. Despite improvements in health indicators, the gap in health

conditions between the rich and the poor remained high. There remained wide

inequity, with children in the poorest households being more than twice as likely to

be moderately malnourished, and four times as likely to be severely malnourished as

children from the richest households. There was a pressing need to better address the

health rights of poor people by targeting consumption subsidies and restructuring

allocation mechanisms based on population and poverty indices.

The Dynamics of Public and Non Public Health Service Provision. In Bangladesh,

total annual per capita spending on health averaged US$12, of which only US$ 4

came from the public sector and the bulk (65%)11

was funded from household out-of-

pocket sources. Up to a third of the public budget on health was provided by DPs

during 1998-2003. Almost half of the households used the non-public sector for

treatment compared to only 10% who used the public sector. The remaining used

traditional sources of care.

Quality Health Care. Most services were provided by the non-public sector, more

specifically by local unregistered, traditional practitioners, largely in a poorly

regulated environment. Developing feasible and acceptable strategies for regulating

and enforcing regulation of quality and volume was critical for health services and

pharmaceuticals.

11 Bangladesh National Health Accounts, 1999-2001. Health Economics Unit, MOHFW, 2003

2

The sector was plagued by serious governance issues such as staff absenteeism,

pilferage, extracting illegal payments from patients, and so forth.

The Changing Epidemiology. In addition to the increasing incidence of injuries,

accidents (drowning were the leading cause of mortality for the 1-5 year olds) and a

growing risk of spread of Human Immuno-deficiency Virus/ Acquired Immune

Deficiency Syndrome (HIV/AIDS), Hepatitis B and C, amongst non-communicable

diseases (NCD), cancer and cardio-vascular diseases were the leading causes of

morbidity and mortality.

The HNP needs of Marginalized Groups: Gender, disability, age, type of disease and

cultural differences were the basis for discrimination, access and utilization of HNP

services in Bangladesh. Poor women and children, especially those from tribal

populations were being poorly served by the existing system, as were people with

disabilities, the elderly, adolescents and HIV/AIDS patients.

Maintaining the status quo was not the solution for Bangladesh, and the Government

stated its intention to reform the HNP system through its Strategic Investment Plan (SIP),

and proposed to significantly increase the level of spending on HNP. This intention

confirmed GOB’s commitment to pro-poor health service provision and to address the

need to reappraise the essential core functions of the public sector.

Under the SIP, new areas of focus were proposed which included a comprehensive

approach to nutrition programming, introduction of demand side financing pilots,

enhanced stewardship role of the government, developing incentives for health workers,

and performance-based financing mechanisms. The SIP also laid out four broad policy

directions that would have an impact on reducing health inequalities: (a) shifting

resource allocations to poorer districts (or districts with poor health outcomes; (b)

targeting and demand side subsidies to explore alternative ways of reaching to the poor;

(c) diversification of service provision to improve the quality and coverage of HNP

services through public-private partnerships; and (d) intersectoral collaboration to create

linkages between the Ministry of Health and Family Welfare (MOHFW) and other

ministries and programs which would have direct impact on the health status of the poor.

The Health, Nutrition and Population Sector Program (HNPSP) was designed to address

the above mentioned challenges and built upon the lessons learnt from the first health

sector SWAp (HPSP). Under the new HNPSP (2005-2011), seven DPs (DfID, CIDA,

EU, Sida, KfW, The Netherlands and UNFPA) contributed financing jointly with the

International Development Association (IDA), and participated in joint implementation

support activities, keeping in line with the signed Partnership Arrangement. The DPs set-

up a multi-donor trust fund (MDTF) with the Bank to support the Government’s SWAp

which was disbursed as co-financing with the Bank project. The total cost of HNPSP was

US$4.3 billion (the “Program”), of which US$3.1 billion was GOB funding and US$1.2

billion in DP funding. Of the DP funding, US$687.98 million was pooled funds (the

“Project” which comprised of the MDTF of US$387.98 million and IDA credit of

US$300 million) and the remaining US$512 million was parallel funding. During the

3

implementation of the program, the Bank administered the MDTF on behalf of the

pooling partners and ensured fiduciary oversight of the funds spent. The MDTF included

two portions – one executed by GOB, the other by the Bank for supervision of MDTF

and undertaking analytical and advisory activities.

Overview of the sectors financing, budgeting and monitoring

Partner Measured by Proportion

financing

Budget

channel

Budget

mechanism

MOHFW

MOHFW -

other

MIS, Survey

and

administrative

records

US$160.40

million

Revenue &

Development

Through

specific

parallel

projects

MOHFW -

HNPSP

Broad RFW &

MIS, Survey

and

administrative

records

US$2,945.82

million

Revenue &

Development

38 OPs

Pooled

Fund

IDA “Project” RFW

(12) , Survey

and

administrative

records

US$300.00

million

Development

MDTF Broad RFW

(30) , Survey

and

administrative

records

US$387.98

million

Non-pool partners Misc. project

monitoring

US$512.00

million

Miscellaneous

project

accounts

Miscellaneous

project

budgets

Total US$ 4306.20

million

1.2 Original Project Development Objectives (PDO) and Key Indicators

The project was intended to assist the GOB in the implementation of its Strategic

Investment Plan (SIP) 2003-2010, for the HNPSP in cooperation with a large group of

DPs through a SWAp mechanism.

The PDO of the project, as stated in the Project Appraisal Document (PAD) and in the

Implementation Status and Results Reports (ISRs), was to “Increase the availability and

utilization of user centered, effective, efficient, equitable, affordable and accessible

quality HNP services”. The project was monitored using this PDO and was measured by

the indicators outlined in the PAD and later revised during project restructuring in 2009.

(See the ICR datasheet for details).

It should be noted that the objective of the project, as stated in the Development Credit

Agreement (DCA), differed from the description of the PDO in the PAD. The DCA

4

states that “The objective of the Project, which is an integral part of the HNPSP is, inter

alia to: (i) reduce infant, under-five child and maternal mortality and the proportion of

malnourished children; (ii) eliminate the gender disparity in child malnutrition and

mortality; (iii) ensure increased access to reproductive health services; (iv) lower total

fertility with a view towards achieving replacement level by 2010; (v) reduce the burden

of tuberculosis (TB), HIV/AIDS, malaria and other priority diseases; (vi) initiate a system

to control newer health threats and protect health risks by improving emergency services;

and (vii) improve the prevention and control of NCDs. These goals are consistent with

the overall objectives of the HNPSP, as presented in the PAD, and were monitored by the

overall HNPSP indicators, as presented in Annex 9 of this ICR.

1.3 Revised PDO (as approved by original approving authority) and Key Indicators,

and reasons/justification

During the restructuring of the project in 2009 at the Regional Vice President level, one

PDO indicator (Proportion of total MOHFW expenditure allocated to the 25% poorest

districts) was replaced by “Proportion of MOHFW expenditure at the Upazila level and

below”. This change better reflected MOHFW’s regular monitoring and was a more

realistic way of measuring the pro-poor resource allocation. Another PDO indicator

(Utilization rate of Essential Service Delivery [ESD] of the two lowest income quintiles)

was modified to better reflect improvements in two specific essential health services

related to maternal health (i.e. skilled assistance during delivery and antenatal care

(ANC) by medically trained provider), as follows: “Utilization rate of ESD of the two

lowest income quintiles: (a) Delivery attended by skilled personnel, and (b) ANC

coverage by medically trained provider”. In addition, during restructuring, two

intermediate outcome (IO) indicators were deleted and three IO indicators were added to

ensure better monitoring and better alignment with the project components and to better

measure the PDO. Likewise, during restructuring, the GOB’s Results Framework was

also changed to reduce the number of indicators from the original 62 to 30 indicators. See

Section below on Monitoring and Evaluation (M&E) for a detailed outline of these

changes.

1.4 Main Beneficiaries

The entire population of Bangladesh was to benefit from this project, with a special focus

on the vulnerable population groups, e.g. the poor, women, children and the elderly.

1.5 Original Components

The project had three components, which were closely interlinked. While the first

component focused on objectives for service delivery in the classical primary health care

domain and achieving the HNP MDG, the second was to develop policies and strategies

to the changing disease burden due to urbanization and aging of the population. The third

component was to address major policy reforms and strategies in order to achieve better

equity and efficiency in the HNP sector. Disaggregated component costs were not

specified.

Component 1: Accelerating achievement of HNP-related MDG and Poverty Reduction

Strategy Paper (PRSP) goals. The component was intended to support the delivery of a

5

package of essential services. The ESD would focus on (a) reduction of maternal

mortality; (b) reduction of neonatal mortality; (c) reduction in childhood morbidity and

mortality; (d) improvement in the nutritional status particularly of adolescent girls,

pregnant and lactating women and children; (e) reducing fertility to replacement level;

and (f) reducing the burden of TB and malaria and preventing and controlling HIV/AIDS.

Component 2: Meeting emerging HNP sector challenges. This component was intended

to support the development of policies and strategies for emerging challenges, with a

focus on: (a) reduction of injuries and implementing improvements in emergency

services; (b) prevention and control of major NCDs; (c) urban health service

development; and (d) improvement of the HNP response to disasters.

Component 3: Advancing HNP sector modernization. This component was intended to

address the following health, nutrition and population (HNP) reforms:

Public health sector management and stewardship capacity: Improving sector

management would focus on improving institutional and personal skills for (i) better

planning and monitoring; (ii) improved budget management through a medium term

budgetary framework (MTBF) process; (iii) reform management; (iv) improved aid

management; (v) development of proper contract documents and management of

contracts with private and non-government organization (NGO) providers; (vi)

information management; and (vii) development of alternative financing mechanisms.

Major targets were established and agreed upon in order to implement a step-wise

delegation of responsibility to promote decentralization and local level planning (LLP).

Health sector diversification: In order to diversify service provision, MOHFW would

build capabilities to become active service purchasers in partnership with NGOs and

private providers. The pattern of service provision would be adjusted over time by the

increasing use of contracts and commissions for NGOs to provide primary and secondary

care in areas where they had a comparative advantage, and for private providers to offer

secondary and tertiary services for poor people where they could do so cost-effectively

and at high quality.

Stimulating demand for HNP services: This was to be achieved through: (i) improving

the sector’s image and greater attention to effective communication, education and

information strategies for key health problems; and (ii) expansion of demand-side

financing. MOHFW initiated a pilot with technical support provided from the World

Health Organization (WHO), of a voucher scheme to enable poor pregnant women to

purchase maternal health services initially in 21 Upazilas and which was further

expanded to 53 Upazilas during the life of HNPSP. Further piloting of other demand-side

financing schemes, such as health insurance, were planned with the aim of scaling up

following independent evaluation.

1.6 Revised Components

N/A

6

1.7 Other significant changes

The HNPSP was restructured three times, as follows:

October 2009 (Regional Vice President Level):

One PDO indicator was revised to improve measurement, implying a less specific but

more realistic way of measuring pro-poor resource allocation, and in line with regular

MOHFW monitoring. Another PDO indicator was made more specific for improved

measurement. Also, the intermediate results indicator (for Component 2) indicating

an increase from 5% to 10% in share of govt. expenditure allocated to MOHFW was

removed as it was outside the authority of MOHFW. Lastly, other IO indicators were

modified to enable better measurement of the PDO (see Section 1.3).

Reduction of the resource envelope for those program activities that were lagging in

implementation under component 3 of the Project, mainly under the aim of

“diversification12

” because of lack of progress by GOB to contract out services

despite the presence of a large non-government and private entities in the health

sector.

The Closing Date was extended by one year to 2011 to ensure the full utilization of

remaining resources.

Overall, the restructuring was timely and contributed to the success of the program.

2010 (Country Director Level):

To accommodate changes in the grant amounts from donors (DfID, KfW and CIDA).

2011 (Country Director Level):

To accommodate an increase in grant amount and reallocation of funds between

categories.

Supplementing the restructuring there was an agreement at the Annual Program Review

(APR) 2009, that funding would be reallocated towards pro-poor activities (e.g. essential

drugs).

2. Key Factors Affecting Implementation and Outcomes

2.1 Project Preparation, Design and Quality at Entry

Project preparation: The preparation of the HNPSP was informed by a thorough

background analysis and building on GOB’s HNP Strategic Investment Plan (SIP, 2003-

2010) and was linked to the Poverty Reduction Strategy Paper (PRSP), with PDO and

component objectives very relevant to the priorities of the country. The preparation

12 In the PAD, diversification is described as increasing use of contracts and commissions for NGOs to

provide primary and secondary care in areas where they had a comparative advantage, and for private

providers to offer secondary and tertiary services for poor people where they could do so cost-effectively

and at high quality

7

specifically incorporated lessons learned from the previous support, the Health &

Population Sector Program (HPSP) such as (a) clearly identifying the role of DPs and the

Government with the GOB leading the program; (b) aligning technical assistance (TA)

with policy documents; (c) carefully considering the political economy of reform; and (d)

having demand-side strategies complement supply-side interventions.

The preparation involved all major stakeholders, including the 16 members of the DP

Consortium, civil society organizations (CSOs) and Bangladesh Medical Association

(BMA). The risk assessment correctly identified most of the major risks, although the

risk of “commitment for the proposed sectoral reforms” may have been rated too low.

The problem of low GOB financing of the health sector was identified in the PAD, and

the HNPSP, therefore, included a target of doubling MOHFW’s share of the GOB budget

(from 5 to 10%). This was a very ambitious target and the identified risk of “GOB

financing does not meet required spending level” was, therefore, appropriately classified

as Substantial.

Project design: The choice of the lending instrument, the Sector Investment and

Maintenance Loan (SIM), and the choice of the Sector-wide Approach (SWAp) was very

appropriate given the nature, size and scope of the support envisioned and requested by

GOB. A number of factors influenced the SWAp design that was developed, and the

decisions as to how Bank and trust fund (pooled) financing would be disbursed, i.e. on a

specific set of activities rather than supporting a time slice of the MOHFW program13

.

Also, expanding the scope of the project to cover all of MOHFW budget items was not

considered feasible as it would have significantly increased the burden for the Bank in

terms of providing fiduciary oversight given the capacity constraints of MOHFW.

HNPSP, therefore, was a “hybrid between a project and a sector-wide program”14

. While

this approach was justified by the specific circumstances prevailing at the time of

appraisal, the choice of a broader SWAp (i.e. financing a time slice of the MOHFW

program rather than financing a specific set of activities) may have been a more ideal

foundation for more far-reaching sector dialogue, both with respect to sector reforms,

ongoing resource allocations and priorities within the sector.

2.2 Implementation

General. HNPSP implementation really gathered momentum after the Mid-Term

Review (MTR) in early-2008, following rather slow progress in the first two years. This

was reflected in the downgrading of project ratings to Moderately Unsatisfactory in the

ISR in mid-2007 after it became clear that there were real impediments to

implementation which needed to be resolved. The delay in project start-up was due to

unresolved audit observations from the previous program (HPSP). Also, the slow

13 The project did not finance “all” the activities as identified in the PIP for a specific time period, e.g. the

project did not pay for staff salaries of MOHFW.

14 As stated in a paper co-authored by the TTL responsible for the PAD (Kostermans & Geli, undated)

8

implementation progress was due to the fact that sector programs such as HNPSP rely on

adequate government leadership, which was not sufficiently strong (according to 2006

and 2007 APRs, and the Implementation, Monitoring & Evaluation Division [IMED]

Evaluation), particularly during the first two years. Further, a critical TA body e.g. the

Program Support Office (PSO) which was supposed to serve as the Program

Implementation Unit, was not in place until the MTR in 2008. Indeed, in 2007, some

DPs were contemplating whether to continue financing of the program which prompted

the GOB and the DPs to jointly agree on six critical actions to be prioritized by the

Ministry. This created new momentum, including increased government leadership,

facilitated by the active engagement of the World Bank Country Office and British High

Commission. Subsequently, implementation picked up momentum and four out of the six

actions were achieved within a period of six months. Limited progress was achieved in

the other two of the six action areas (putting Management Support Agency [MSA] in

place and setting up a procurement tracking system in the Directorate General of Family

Planning [DGFP]) as noted by the half-year stock take in November 2007. The program

was restructured following the MTR (although formally recorded only in 2009) and by

early-2008, the project rating was upgraded to Moderately Satisfactory in the ISR and

then to Satisfactory in 2011. The Quality Assurance Review (QAG) in 2008 also rated

the project as Moderately Satisfactory. At the end of project implementation in June

2011 (while the project formally closed in December 2011), most of the key targets were

achieved as described in Section 3 and in the ICR Datasheet. The GOB and DPs put in a

concerted effort to achieve the program targets despite the challenge of the program’s

size and scope.

The program was guided by a series of high quality independent Annual Program

Reviews. The APR had two parts – assessment by an independent team which submitted

a full APR report, and then based on the report, the GOB and DPs jointly agreed on

Action Plans which were recorded in the Aide Memoire. Not all the recommendations

provided by the independent team were implementable due to various constraints in the

government systems and, therefore, were not included in the Action Plan. This APR

mechanism functioned well. The IMED Evaluation15

notes that “the APRs became the

main source of dynamism in performance evaluation and establishing the future course of

action for the year”.

The following were some of the key issues which affected implementation either in a

positive or negative way as well as some elements of the program which require a brief

description to set project implementation within a broader context. While many of the

issues described below were indeed major challenges, the overall implementation of the

program turned out to be much more successful than indicated by the sum of these

challenges. This is important to note, particularly given the large size of the program and

the inherent and historically difficult environment of working in Bangladesh.

15 Implementation Monitoring & Evaluation Division (IMED), Ministry of Planning: “End-Line Evaluation

of Health, Nutrition and Population Sector Program (HNPSP)”, Final Report Sep 2011.

9

Political context. Bangladesh witnessed frequent (2006, 2008 and 2009) changes of

government during the implementation period, leading to changes in national priorities as

well as transfer of staff in key positions. One of the major effects of these changes was

that the diversification process (i.e. outsourcing NGOs and private providers, as described

in section 1.5) could not be implemented as originally planned. Consequently, when the

program was restructured, the overall budget was reduced by the unspent funds in this

area. Another example of this was that the original commitment to the PSO, MSA and

Performance Monitoring Agency (PMA) was no longer there (discussed in details in the

section on “other institutional issues”). Furthermore, the frequent shift of Line Directors

(LDs) (often only in position for less than a year), responsible for the operational plans16

(OP), also emerged as a factor causing systemic inefficiencies. The attempt in the latter

half of HNPSP to keep LDs for the major OPs in place for 2-3 years was only partly

successful, as many LDs either retired or got promoted.

Decentralization. Although a decentralization policy was approved in 2009, the health

system in Bangladesh remained very centralized. It is widely agreed (PAD, MTR, APRs)

that in order to improve service delivery at the primary level, delegation of authority over

planning and budget at the upazila level had to be increased. Consequently, in terms of

improving service delivery, the lack of progress on decentralization was problematic. In

order to circumvent the slow progress of overall decentralization reform and to move

towards functional integration of health and family welfare, an Upazila Health System

(UHS) was suggested by the APR 2009, and also endorsed in the 2009 Aide Memoire to

be piloted and subsequently implemented in the follow-on sector program.

Budgeting & planning. The division of the health sector in a health and a family

planning directorate, a division that extends from the center to the lowest institutional

level of the service delivery system, (except the Community Clinics), impeded integrated

budgeting and planning of health services at all levels. At the central level, integrated

budgeting and planning was impeded because the development and revenue budgets were

planned in different units, resulting in an “absence of synchronization between the

revenue and development budgets of MOHFW” (IMED Evaluation). In addition, the

structure of the two budgets was different: the revenue budget was allocated to

facilities/institutions, while the development budget was allocated to programs. This

problem was and remains pervasive in the GOB system and is not specific to the

MoHFW. The Program Implementation Plan (PIP) of HNPSP identified a large number

of OPs (38) for implementation of the program. The difficulties of integration between

the silo-like OPs were identified as an important problem (MTR 2008), and IMED 2012

documented the inefficiencies that this led to, one example being constructed facilities

not utilized to full capacity due to lack of coordination between the procurement of

equipments and allocation of manpower.

16 Operational plan is defined as the primary implementation structure of the MOHFW’s Health SWAp.

There were 38 OPs distributed across the Directorate General of Health Services, Directorate General of

Family Planning and the MOHFW and other agencies. Each OP reflected a priority area of the MOHFW’s

Health SWAp and was led by a Line Director with a functional administrative structure including staff,

budget and infrastructure.

10

New institutions & TA (PSO, MSA & PMA): As part of the HNPSP, some new

institutions were planned: the PSO and the MSA were created in 2007 and 2008

respectively. However, their effectiveness could be challenged, as there was “a huge

disconnect between these agencies and the Ministry whom they were supposed to

support” (as noted in the 2009 APR). The PMA was never established, but its function

was integrated into the existing structures by hiring consultants. At the program design

stage, there was ownership of these new structures at the top level management of

MOHFW. With the change of government, the level of ownership also changed,

exemplified by MOHFW not fulfilling the legal covenant of PSO/MSA for several years.

Instead of showing flexibility, DPs insisted on having PSO/MSA/PMA despite the

MOHFW’s reluctance. MOHFW took so long (nearly two years) to evaluate the bidders’

proposals for PSO/MSA that good quality firms withdrew their proposal, and/or

shortlisted firms were no longer in a position to field the staff indicated in their proposals.

These delays also meant that firms that were awarded the contracts for PSO/MSA could

not send experts as originally proposed and, therefore, the quality of the TA suffered and

the TA institutions could not deliver as per expectations. This led the GOB to discontinue

the contracts for PSO and MSA in 2010.

NGO contracting. The diversification, particularly in terms of contracting of NGOs, did

not progress as originally planned. This was mainly due to the shift in GOB’s political

preference as the new Government did not want to contract out essential public health

service delivery, like nutrition, to the private sector. NGOs were contracted out for

nutrition, TB and HIV services as a part of the diversification agenda. However, lack of

capacity and planning at the implementer’s level were two other issues that impeded the

greater involvement of the non-government sector in the service delivery. For example,

the National Nutrition Program (NNP) under HNPSP was plagued by regular

interruptions in service delivery due to the government’s delays in contracting the NGOs

as service providers. Furthermore, the performance of some NGOs was questionable as

documented in periodic performance reviews of NNP.

Goods and Civil Works. The HNPSP financed capital investments, i.e. equipment and

civil works, as well as procurement of goods such as essential drugs and vaccines,

funding areas of major importance to the delivery of quality services. Capital investments

and procurement of commodities ended up constituting 71% of the pooled funding

expenditures (out of which 3% for civil works). These were major contributions to

improving service delivery.

Performance Based Financing (PBF). Twenty five percent of pooled funding was

allocated for PBF based on fulfillment of agreed upon specific indicators. The indicators

were agreed on with the government every year and the funds were provided when the

indicator target were achieved. This modality was initially not very successful in terms of

achieving the targets set, and in the first years the amount set aside for PBF was not

disbursed. One reason could have been that the incentives provided by the PBF may not

have been adequate, as the funds received for achieving the PBF target were not directly

allocated to the level which was responsible for achieving the target. Nevertheless, due to

the reallocation of the budget (in 2009), the GOB did not eventually lose any funding as a

11

consequence of noncompliance with the targets for obtaining the PBF associated funding.

The MTR gave a quite harsh assessment of PBF, calling it “an example of old fashioned

conditionality”, and “inconsistent with Paris Declaration principles”. While there is a

certain truth to this, particularly as the first tranche was associated with establishing the

PSO and MSA, there are also clear benefits in enhancing the focus on results by financial

incentives. During the last two years, the PBF targets were met and the mechanism was

well understood and it turned out to be useful as it enabled the MOHFW to use funds on

priority activities, thereby serving as a valuable source of flexible funding. Eventually,

the PBF did deliver results, and important lessons were learned regarding this new

modality in development assistance.

HNPSP Coordination. The HNP Coordination Committee and HNP Forum led by

MOHFW, including DPs, assessed project progress and discussed implementation and

policy issues. The DPs were organized in a HNP Consortium with a Chair, who spoke on

behalf of the DPs as much as possible. MOHFW held Coordination Meetings (Secretary

and the Director Generals of DGHS and DGFP) reviewing mainly the OPs, in principle

monthly, but in practice less frequently. Monitoring was highly centralized leaving little

discretion to lower level management (e.g. Divisional and Upazila).

In addition Task Groups were established - following the recommendation of the first

APR - to assist MOHFW in monitoring implementation progress of priority areas. The

regularity and effectiveness of meetings varied; but it seems this modality was functional.

The IMED Evaluation of HNPSP concluded that “neither of the fora17

engaged in

systematic policy review because there was little demand/need for policy discussions

from either the Ministry or the DPs”. It should be noted that broader policy dialogue may

not have been part of their terms of reference. Overall, the coordination provided good

guidance on a number of implementation issues, but less so on higher level policy issues.

2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization

Design. The HNPSP was monitored using two sets of indicators – one for the full sector

program with 62 indicators (PAD Annex 3A, p.34-39), which was revised during the

MTR to a list of 30 indicators; and the other for the pooled fund, which was drawn from

the broader Results Framework and included 10 key project indicators. This subset of

indicators (PAD Annex 3A, p.33) was revised during the MTR and was used for

reporting in the Bank’s ISR.

The Development Credit Agreement (DCA) PDO was referred to in Annex 4 of the PAD

with a different set of 8 indicators (6 of which are of impact level indicators). Most but

not all of the DCA PDO indicators were also part of the broader sector Results

Framework (RF). An update of the status of indicators in the broader RF, including a

number of those listed in Annex 4 of the PAD, is provided in the ICR Annex 9.

17 i.e. HNP Coordination Committee and HNP Forum

12

As discussed earlier, one of the original PDO indicators “Proportion of total MOHFW

expenditure allocated to the 25% poorest districts” could not be monitored and, therefore

due to unavailability of data and up until the MTR the same level has been reported. This

indicator, therefore, was changed to “Percentage of MOHFW at the upazila level and

below” during the RVP level restructuring approved in October 2009. It was done in

consultation with MOHFW and DPs on the basis of available data reported in the Public

Expenditure Review (PER), conducted by the Health Economics Unit (HEU) of the

MOHFW with the support from Gesellschaft für Internationale Zusammenarbeit (GIZ).

However, the PER was not published as regularly as planned during 2009-2011, and data

relating to the revised PDO was available only up to fiscal year (FY) 2008/09 (the report

was published in 2011). Changes to other indicators have been discussed already in

Section 1.3 and 1.7 of the ICR. The ICR Datasheet reflects both original and revised

targets and includes comments for each indicator.

The HNPSP included establishing a Monitoring and Evaluation Unit (MEU) in MOHFW

and improving the overall Management Information System (MIS). Several means of

measuring output and outcome indicators (including inequality) were introduced. Most

important were the Bangladesh Demographic and Health Survey (BDHS) and the

Utilization of Essential Services Delivery (UESD) Survey. The sector program was to be

reviewed annually by an independent team of experts during APR.

Relying on periodic cross-sectional surveys like BDHS and UESD only enables to

monitor the RFW indicators with a lag of nearly two years, as the surveys use a 3 to 5

years’ recall period. For this reason, the indicator updates at the end of the program date

usually refer to a much earlier time than the completion date.

Implementation. The project indicators were regularly monitored as part of the APRs and

were reported in the aide memoires. The broader Results Framework indicators were

monitored (to the extent data were available) in the first three years. These were annexed

to the aide memoire, but following the revision of the list in 2008 during the MTR, they

were no longer part of the aide memoire, and evidence of their use for monitoring

HNPSP was not found. However, the Annual Program Implementation Report (APIR)

continued to update the revised RFW with 30 indicators.

There were a number of challenges with the use of the overall MIS for the sector,

including problems with coverage, data quality and fragmentation. Specifically, the

problems included bifurcation of routine data systems between the Directorate General of

Health Services (DGHS) and the DGFP; private sector providers, who provide a major

share of services not accounted for in the routine system; and heavy dependence on cross-

sectional surveys for regular monitoring of program activities. The Monitoring and

Evaluation Unit was established but not fully staffed and mainly run by Gesellschaft für

Internationale Zusammenarbeit (GIZ) staff and short-term consultants to deliver APIR,

and with unclear institutional home.

13

Utilization. The APRs pointed to a low level of use of data for decision making on all

levels. It was pointed out during the ICR review, however, that the APRs contributed

substantially to identifying and analyzing issues and improving sector dialogue.

2.4 Safeguard and Fiduciary Compliance

Safeguards. MOHFW complied with the Bank's safeguards requirements and policies. A

Health Care Waste Management (HCWM) Guideline was developed, and implementation

of the HCWM plan was rolled out involving a partnership with the Ministry of Local

Government as well as private organizations. The DGHS took the lead in implementing

the HCWM plan at the health facilities.

There were no adverse impacts of the project on the indigenous people who mostly reside

in Chittagong Hill Tracts. As part of the sector program, the United Nations Development

Program (UNDP) implemented a package of health services in the Chittagong Hill Tracts.

Limited progress, however, was made in implementation of the Tribal Health Plan. A

Tribal Health Plan Implementation Committee and a separate Task Force for

implementation of the Plan was set-up, but neither the Committee nor the Task Force met

regularly. A mapping exercise of service availability and an ethnographic study were

initiated but not completed.

At the design stage of HNPSP, it was not envisaged that the project would finance civil

works. Following the MTR, it was agreed that the project would finance some civil works

in pro-poor areas keeping in line with the Bank’s social safeguards and environmental

policies. An environment management plan (EMP) was prepared during appraisal of

HNPSP. The Bank worked with the Government to ensure that the civil works financed

out of the pooled funds met social safeguards and environmental policies of the Bank.

The final ISR rated overall safeguard compliance as Moderately Satisfactory.

Financial Management (FM). During program implementation, MOHFW made

considerable progress in Public Financial Management (PFM). The FM Assessment of

HNPSP indicated that the PFM system in MOHFW, like all other sectors in Bangladesh,

was not streamlined enough to manage public funds effectively.

A TA support provided by DFID to the Financial Management and Audit Unit (FMAU)

focused on regular and timely preparation of Financial Monitoring Reports (FMRs) and

did not include any component for FM systems strengthening which could have enabled

funds to be channeled through the GOB system.

The Medium Term Budgetary Framework (MTBF) was introduced in order to improve

the efficiency and effectiveness of public expenditure. MOHFW and the DPs reached an

agreement on single sector accounts and reporting (FMRs), auditing, M&E systems under

the Program. The quarterly FMRs were mostly submitted on time. MOHFW is the first

Ministry in Bangladesh that outsourced its internal audit function to ensure effective

periodic monitoring of financial and operational activities in the sector. Between fiscal

14

years (FY) 2006 and 2011, the World Bank identified 36 audit observations (worth USD

68.14 million) as material and substantive from the observations raised by the Foreign

Aided Projects Audit Directorate (FAPAD) auditors. Although MOHFW has resolved all

of them, the pace of resolving these issues was slow.

MOHFW organized regular Financial Management Task Group (FMTG) meetings that

gave an overview of progress on sectoral financial management, including performance

of preparation of FMRs, implementation of APR action plans, resolution of both internal

and external audit observations, capacity development and training of staff.

There were weaknesses during project implementation relating to the weak internal

control environment and high staff turnover. While, these challenges did not adversely

affect project implementation as necessary mitigation measures to improve the internal

control environment were planned at project preparation and some additional measures

were put in place during implementation which, however, did not aim at long term

capacity building. The mitigation measures included TA for preparing FMRs;

outsourcing internal audits; training of staff; developing action plan as well as arranging

tri-partite meetings to follow-up on audit observations.

The final ISR rating for FM was Moderately Satisfactory.

Procurement. Performance of three procuring entities Central Medical Stores Depot

(CMSD), DGFP, and Health Engineering Department (HED) was satisfactory even

though there were some delays in completing the procurement cycles. The other two

entities (NNP and National AIDS/STD Program (NASP) struggled with preparing quality

procurement documents and hence needed a lot of support. Modest progress was noted

in strengthening procurement capacity. On the positive side, computerized procurement

tracking systems were put in place in one procuring entity (under DGFP), and

procurement desk officers were provided with training throughout the project period.

However, challenges remained and these included high staff turn-over, lack of capacity in

dealing with complaints, and delays in conducting procurement audits.

Often, the Bank was accused of having very cumbersome and slow procedures. However,

the reasons for delays had a lot to do with issues of low quality documents prepared by

the procuring entities and weak capacity. Although some capacity building did take place,

no comprehensive support to improve MOHFW capacity in this area nor in the FM area

was included in HNPSP which is regrettable. Nevertheless, in spite of these limitations

and capacity constraints, MOHFW was able to ensure supplies of commodities as evident

from the fact that there were no stock outs of family planning commodities in the last two

years of HNPSP, for example. The final ISR rating for Procurement was Moderately

Satisfactory.

2.5 Post-completion Operation/Next Phase

With the one year extension of HNPSP (to end in 2011) and the reallocation of budget

included in the restructurings, a smooth transition to the next phase (Health Sector

15

Development Program – HSDP – approved by the Bank in May 2011) of support was

ensured. The HSDP comprises: Improving Health Programs (Component 1A) including

essential services (nutrition and NCDs); Improving Service Provision (Component 1B)

including the Upazila Health System, hospital management and urban health; and

Strengthening Health Systems (Component 2) including governance, planning &

management, human resources (HR), financing, Health Information System (HIS),

quality assurance (QA), drug administration & regulation, procurement and supply chain,

and construction & maintenance. Given this scope and focus of HSDP, no significant

transition issues are envisaged.

In terms of performance indicators to monitor the longer term impact, most if not all of

the 12 project indicators are regularly monitored in Bangladesh. In addition, the HSDP

contains a broader Results Framework that will also ensure continued monitoring of

relevant key sector indicators. The exception may be in the area of NCDs where

indicators for follow up are not described.

3. Assessment of Outcomes

3.1 Relevance of Objectives, Design and Implementation

Relevance of Objectives: The PDO as well as the underlying three component objectives

(Intermediate Results) were highly relevant in terms of health outcomes and systemic

issues identified at appraisal. The objectives and project design were also highly relevant

vis-à-vis the GOB’s strategies and the World Bank’s Country Assistance Strategy (CAS).

The objectives were very broad, which is expected given the size and scope of HNPSP.

The relevance of objectives is rated as High.

Relevance of Design: The design, in terms of a sector approach with GOB implementing

the HNPSP and TA largely integrated within MOHFW (e.g. no separate project

implementation unit), components, sub-components and implementation arrangements

were consistent with the stated objectives at outset. However, key actors in GOB outside

the MOHFW did not seem to be fully on board with a major assumption underpinning the

HNPSP, namely a doubling of the share of GOB budget going to MOHFW, and as a

consequence this specific indicator and target was eventually dropped, following the

MTR.

There were a number of constraints and relevant concerns that made a more limited

SWAp design (i.e. financing a specific set of activities rather than a time slice of the

MOHFW program) an appropriate solution. These are described in more detail under

Section 2.1.

The clear focus on service delivery was important and very appropriate. The underlying

systemic problems in the sector particularly relating to HR and decentralization issues

continued to impede the efficient delivery of services over the life of the project. While it

should be noted that many issues like HR, governance, public finance, decentralization,

urban health, etc. are beyond the health sector and can only be addressed by government

16

wide reforms, thereby falling outside the control of HNPSP, there is a question as to how

much this constraint should have been better anticipated in the project design stage.

The establishment of contracted out TA agencies/units, i.e., PSO, MSA and PMA,

created problems as described in section 2.2 and was abandoned during the later part of

HNPSP.

The use of a MDTF combined with IDA to form pooled fund for the sector was a very

efficient and practical way of aligning different DP funding for implementing the GOB’s

health SWAp.

In sum, the project design is deemed to be appropriate in the complex context of

Bangladesh, and hence the rating of design is Substantial.

Relevance of implementation: Implementation arrangements comprised several fora to

discuss issues, both between GOB and DPs as well as between DPs supported by an

efficient independent review mechanism. Changing circumstances were well reflected

both in a revised focus from year to year as well as in the restructurings. Also, the

changes made following the MTR reflected the revised priorities and ensured better

ability to track and evaluate the program. Other adjustments in budgets and allocations

were also very appropriate and timely. The relevance of implementation is rated

Substantial.

Overall rating of relevance is Substantial.

3.2 Achievement of Project Development Objectives

During the implementation of HNPSP, Bangladesh made impressive progress on most of

the health outcomes and the country is now on track to achieve MDGs 4 and 5. The

maternal mortality ratio (MMR) declined by 40% from 322 in 2001 to 194 maternal

deaths per 100,000 live births in 2010 and under five child mortality rates (U5MR)

declined by 26% from 88 per 1,000 live births in 2004 to 65 in 2010. Total fertility rate

(TFR) declined from 3.0 in 2004 to 2.5 children per woman in 2010 and the contraceptive

prevalence rate (CPR) for modern methods increased by 10% over 2004 and 2010 (from

47% to 54%).

Out of the three PDO indicators of the project RFW, one indicator “% of MOHFW

expenditure at the Upazila level and below” showed a positive trend although data is

available only up to FY 2008/09. The overall achievement of PDO and IO indicators is

satisfactory as reflected in the ICR Datasheet, particularly considering that some data for

results are referring to a point in time before the completion of HNPSP, and that many (7

of 12) indicators have exceeded the target (up to 131% achievement).

The main thrust of the PDO statement centered on availability, utilization and

accessibility of quality HNP services. Achievements relating to the availability and

utilization of services can be drawn from progress in the following indicators:

17

TB Case Detection Rate (97% of the target achieved)

% children (under 1yr) fully immunized (84% achieved)

% Children 1–5 receiving Vitamin A supplements in last 6 months (113% achieved)

Achievements relating to the accessibility of services can be drawn from progress in the

following indicators:

% of women targeted by voucher scheme delivered by skilled birth attendants (SBAs)

(at facility or home) (107% achieved)

MOHFW expenditure on medical and surgical requisites at districts and below (fully

achieved)

Utilization rate of ESD of the two lowest income quintiles in terms of

a) delivery attended by skilled personnel (130% achieved)

b) ANC coverage by medically trained provider (fully achieved)

The following table summarizes the achievements towards PDO and IO targets before

and after restructuring of HNPSP. Actual achievements in the overall program’s results

framework are provided in Annex 9.

Original PAD

indicators

(used to monitor

progress from

2005-2009)

Revised Project

Indicators18

(used to monitor

progress from

2009-2011)

Overall Program

Results

Framework19

PDO

(2) IO (8)

PDO

(3) IO (9) I/OI (7) OI (24)

Target surpassed (above

100%) – Highly Satisfactory 2 2 5 1 4

Target fully achieved (85%-

100%) – Satisfactory 3 4 10

Target substantially achieved

(70%-84%) – Moderately

Satisfactory

1 2 2

Target partially achieved

(50-69%) – Moderately

Unsatisfactory

2 2

Target not achieved (1-

49%)– Unsatisfactory 2

20 4 1 6

21

Overall achievement % 50% 65% 83% 94% 89% 78%

Note 1: PDO – Project Development Objective; IO – Intermediate outcome; I/OI – Impact/outcome

indicators; OI – Output indicators

Note 2: the Overall Achievement is calculated using a weighted average: a weight of 100 assigned to the

number of HSs, 90 to Ss, 80 to MSs, 60 to MUs, 50 to Us.

18 As per revisions made during October 2009 restructuring

19 As per revisions made in July 2008, see details in Annex 9

20 Update not available for both the indicators

21 Update not available for one indicator

18

It is important to note that the pooled funds contributed to a slice of the sector program

and, therefore, the success of the project relied on a number of factors, both within and

outside the pooled fund, including funding from other sources (e.g. GOB revenue and DP

earmarked funding). The specific causality in terms of achievement of targets is,

therefore, difficult to measure, due to the nature of such broad-based support. It must be

noted, however, that given the very large amount of the MOHFW’s revenue funding

allocated to salaries, with little flexibility in the short term, the contribution of the pooled

funding appears much more substantial in terms of the proportion of key inputs it

financed, e.g. drugs, and new initiatives. Therefore, it is fair to assume that the HNPSP

has contributed significantly to the very positive achievements in the sector. Furthermore,

it is more relevant to consider the HNPSP as a partnership between the GOB and the DPs

with HNPSP co-financing the Bangladesh HNP sector and to assess whether this

partnership achieved what it had set out to do in the sector as a whole. In other words,

rather than looking at the possible specific impact (attribution) of the pool funds (IDA

plus MDTF), consistent with the agreements made under International Health

Partnership22

and the Paris Declaration23

the issue is whether HNPSP supported an

overall successful program. On the basis of program achievements with respect to key

health sector indicators, as outlined above, it is clear that HNPSP was part of a largely

successful GOB effort albeit more could have been done in some key areas as discussed

earlier in the implementation section of the ICR.

In sum, on balance, the achievement of the Development Objectives is rated Satisfactory.

3.3 Efficiency

Revisiting the assumptions for the PAD’s cost efficiency analysis indicates that Net

Present Value (NPV) and Internal Rate of Return (IRR) presumably are quite good,

probably even better than expected (see Annex 3).

The primary health care interventions that have been the emphasis of the HNPSP are

generally considered very cost-effective, e.g. immunization, antenatal care, SBAs,

vitamin A supplementation, nutrition services, contraception and treatment of childhood

infections. The HNPSP’s poverty focus (see 3.5a) has also directed funding towards those

in most needs and with the highest disease burden.

One source of inefficiency was that there were 38 OPs, resulting in limited coordination,

overlaps and lack of synergy between the activities of the MoHFW, as has been well

documented by the IMED Evaluation as well as the Public Expenditure & Institutional

Review.

One issue pertaining to efficiency is the overall funding of the public sector. A public

sector funding level of US$ 4-5/capita/year (even with the addition of private and out-of-

pocket spending to total health expenditure of US$ 16/capita/year), is generally

considered grossly inadequate to deliver comprehensive basic services. Given the results

22 Details can be found at http://www.internationalhealthpartnership.net/en/

23 Details can be found at http://www.oecd.org/dataoecd/11/41/34428351.pdf

19

of the sector in terms of more vertical approaches, it seems that performance can be

increased even with such a low level of funding. Achieving what is generally accepted as

very good results in key areas such as maternal and child mortality with limited funding

can be considered effective24

. But the problem remains that it is likely that efficiency of

other more complex services, to which HNPSP can be assumed to contribute as well, is

quite low given the severe under-financing of the sector.

Achievement of efficiency is rated Substantial.

3.4 Justification of Overall Outcome Rating

Combining the ratings for project relevance of Objectives, Design and Implementation

(the combined rating is Substantial), the rating for achievement of Development

Objectives (Satisfactory), and the rating for Efficiency (Substantial), the Overall

Outcome Rating is: Satisfactory.

3.5 Overarching Themes, Other Outcomes and Impacts

(a) Poverty Impacts, Gender Aspects, and Social Development

HNPSP investments have been pro-poor as evident by the fact that the poor actually

increased their share of service utilization during HNPSP period (e.g. utilization of ANC

and SBAs increased for the lowest two quintiles). In addition, HNPSP focused on the

rural areas, nutrition services were expanded to poor Upazilas, and areas selected for civil

works were based on poverty and health indicators.

With a strong focus on maternal and child health (MCH) services, the female population

has benefitted (e.g. the MMR was reduced), contributing to better gender balance in

health service delivery.

(b) Institutional Change/Strengthening

Facilities to deliver basic and comprehensive emergency obstetric care (EmOC) services

including maternal and child welfare centers (MCWCs), were established under HNPSP.

Besides, some of the health facilities at the Upazila level that cater to the needs of poor

people were upgraded from 31 to 50 bed with the associated equipment, drugs and health

personnel. Progress is also noted in areas, such as the establishment of an M&E unit,

modest improvements in procurement and FM capacities, expanding hospital autonomy,

improved budget management, some improvements in HR management (was included in

PBF) but not substantial, and improved disaster preparedness. The HNPSP was more

focused on service delivery.

(c) Other Unintended Outcomes and Impacts (positive or negative)

None documented.

24 As also pointed out by the 2010 Bangladesh Public Expenditure & Institutional Review (Vol. II): “While

expenditures on health are low, high value is obtained from those expenditures compared to other countries

in the region”

20

3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops

No beneficiary survey was done as part of the ICR. However, the IMED evaluation

contained a survey of service recipients, which among other findings showed that

majority of the beneficiaries were satisfied with the health services provided at the

government health facilities and around 80% of the beneficiaries reported that the

government health services have improved during HNPSP compared to pre-HNPSP

period. Focus group discussions at Upazila level were also conducted revealing a quite

positive impression of HNPSP.

4. Assessment of Risk to Development Outcome

The lack of management and stewardship capacity constitutes a risk to further

development of the sector, but the risk may be less in terms of maintaining the current

level of achievement. This risk is further mitigated by the follow-on operation, HSDP,

which comprises a health systems strengthening component.

The general under-financing of the sector constitutes a barrier to progress much beyond

what has already been achieved. However, given Bangladesh’s sustained good

performance in some areas, particularly in relation to vertical and less complex

interventions, sustaining the current level of achievement is assessed to be fairly likely.

Risk to Development Outcome is rated Moderate.

5. Assessment of Bank and Borrower Performance

5.1 Bank Performance

(a) Bank Performance in Ensuring Quality at Entry

The Bank team did a thorough job during project preparation, as evidenced, for example,

by the Concept Note Review, the Quality Enhancement Review (QER) Report and the

PAD. Many relevant issues were raised that seem to have improved the quality of the

project design and the final documentation. Lessons from implementing the previous

SWAp (HPSP, 1998 to 2003) were incorporated while designing HNPSP and risks at

appraisal were adequately assessed. The Bank, jointly with the Government, led the task

of bringing together the DPs and harmonizing and aligning their support as much as

possible in line with the Government’s program and priorities, thereby providing

substantial flexible financing for the GOB’s HNP SIP. The design of the project was

rather complex with three components and five disbursement categories. The PDO that

was chosen for the pooled fund was the same as the overall objective of the SIP, even

while the description of the PDO in the PAD and the legal agreement were different. This,

however, did not lead to a substantive difference in terms of evaluation because they both

broadly reflected the goals of the SIP. However, it must be noted that the two PDO

Indicators that were chosen focused too narrowly on the equity (or poverty-related)

aspects of the PDO, which was only one of several dimensions of HNP services

incorporated in the PDO. The two PDO Indicators also proved to be difficult to measure

in practice, which is why these were changed during the 2009 restructuring. The Results

21

Framework is presented in two parts in the PAD, one for the pooled fund and the other

for the full sector program; but no explicit descriptions are provided which is likely to be

a source of confusion for those not involved with the program. The PAD also contains

some inconsistencies in terms of the DP financing figures presented in the datasheet and

the annex. On balance, while major effort was made by the Bank team, more could have

been done to improve the project indicators and documentation, as well as measures to

address fiduciary capacity issues. This was also a finding by the Quality at Entry Review

which was carried out by the Bank’s Quality Assurance Group (QAG) which gave an

overall rating of Moderately Satisfactory for project preparation.

Rating: Moderately Satisfactory

(b) Quality of Supervision

General supervision of HNPSP was comprehensive and thorough, and addressed the

relevant issues including development impact, as well as fiduciary and safeguards aspects.

Particularly, the independent APRs contributed very constructively to identifying major

problems and suggesting appropriate solutions. As indicated earlier, program

implementation and, therefore, disbursements were slow in the first two years. In 2007,

six critical actions were prioritized by the Ministry, facilitated by the Bank team and the

British High Commission. Implementation picked up within a period of six months. At

the mid-term in 2008/2009, the Bank team proactively restructured the project and

program implementation gained further momentum. The quality of supervision remained

satisfactory in the last three years of the program. In retrospect, the Bank team could

have downgraded the ratings of the project slightly earlier than in 2007, after two years of

implementation. Instead, the Bank team worked hard to address the issues hoping that

there would be improvements earlier on. Once it became clear that more substantial

changes were needed, the Bank team was proactive in pursuing restructuring.

Bank Task Team Leaders (TTLs) turn-over was high, with four TTLs during the

implementation of HNPSP. Given the Bank’s role as managing not only the IDA

contribution but also the MDTF in a very large operation, it would have been better to

have the TTL resident in Bangladesh (which was the case with a number of the TTLs) to

be able to stay involved in implementation monitoring on a daily basis. However, it

should be noted that locally based Bank staff were very closely involved in project

monitoring and had very collaborative relationship with the implementing agency and the

DPs, and in the final year of the program implementation a national staff served as a TTL

of HNPSP. The Bank team regularly provided updates to the pool funders on various

aspects of the project including financials and implementation progress. The Bank

managed a heavy workload relating to reviewing annually 38 OPs, procurement and

financial management documents/reports, ensuring due diligence as well as providing

procurement training to the Government counterparts. Generally, the Bank’s

administration of the MDTF was of good quality and the required fiduciary oversight was

provided by the Bank team. The Bank team also provided implementation support to the

Government on a daily basis. Regular visits were undertaken at field facilities and

program areas to oversee NGO-implemented activities (particularly nutrition and HIV)

and civil works sites (for ensuring social safeguards and environmental guidelines). The

22

Bank team also played a critical role in updating and revising the results framework as

well as agreeing on and monitoring the Performance Based Financing (PBF) indicators.

Considering the successful management of the complex and crucial pooled funding

arrangement, the rating for supervision is Satisfactory.

(c) Justification of Rating for Overall Bank Performance

Rating: Satisfactory

5.2 Borrower Performance

(a) Government Performance Government ownership and commitment should be ensured given that the HNPSP

supported the GOB HNP sector SIP. During implementation, there was considerable

progress in the service delivery aspects but limited progress in some of the reform areas

particularly in advancing HNP sector modernization.

The political economy played a major role in setting priorities and strategies. Democratic

elections resulted in changes in government which naturally also resulted in changes to

some policy priorities. This should, however, not be seen as lack of commitment.

Considering that health sector remained a priority area for the Government and there has

been sustained commitment in the sector, the rating is: Moderately Satisfactory

(b) Implementing Agency or Agencies Performance MOHFW was implementing its SIP for HNPSP under severe constraints in terms of

capacity, the systems in place, and within a very constrained overall financing envelope

(US$ 4 per capita, around 6% of total GOB budget). In addition, the influence of many

different political and other interest-groups created a very complex environment for

implementing the HNPSP. These issues were known and the difficulties in successfully

implementing all planned initiatives should be seen against this background. As

previously noted, MOHFW leadership was not very strong in the first two years of

program implementation but improved significantly in the later part (see also Annex 6:

IMED Evaluation). All legal covenants were eventually complied with and substantial

progress in program implementation was achieved despite the above mentioned

constraints. Overall, MOHFW achieved very good results, as described in previous

sections, overcoming difficulties, many of which were beyond its control. Consequently,

the rating is: Satisfactory

(c) Justification of Rating for Overall Borrower Performance Combining the rates for government and implementing agency performance, and

considering that HNPSP’s focus was more on improving service delivery (MOHFW

responsibility) than advancing sector reform (to a large extend GOB responsibility) gives

a rating of: Satisfactory

23

6. Lessons Learned

Sector-wide programs like HNPSP, which includes funding from various sources

necessitates an effective dialogue between government and DPs on the sectoral plan,

budgets and priorities as these DP support complement the GOB financing. Given the

circumstances during the design phase of HNPSP, a SWAp was the most feasible

approach for aligning with GOB systems and having a single set of sector priorities.

However, with the view to the next project it is essential to build in measures to

overcome the issues that had prevented a more full-fledged SWAp whereby all of the

parallel projects would have been under the SWAp umbrella. Under the new sector

program, HSDP, the parallel projects have been reflected in OPs (which was not the

case under HNPSP).

Ensuring commitment and maintaining policy dialogue with key ministries beyond

the health ministry, e.g. Ministry of Finance (MOF) and ministries responsible for

decentralization and civil service reform is very important for achieving

improvements in health. It necessitates a very good partnership and a sensitive

approach to fully understand the complexities of government commitment, including

ensuring the commitment and incentives for the lower levels of government.

Understanding the political economy, not least for complex countries like Bangladesh,

is important. More flexibility from DPs to adapt to changing national priorities will

help resolve any disagreements that may arise while implementing the project.

Performance based funding is challenging, both in terms of identifying appropriate

indicators and targets, and also in terms of understanding whether the incentives it

provides can be expected to yield the desired results. The overall incentive structure

of the system, and not least the specific incentives of the unit responsible for

achieving the target, need to be thoroughly analyzed.

Establishing new entities within a government system, with rules and regulations

different from those of government, is very difficult. Such initiatives should not only

be discussed and agreed upon at the highest level of the Government but also with the

actual implementers to ensure buy-in from all levels of the Government and that

proposed reforms are feasible.

For large sector programs like HNPSP, which rely on Government’s FM system,

specific systems strengthening component would have mitigated some of the issues

emanating from weak fiduciary capacity.

The results framework should include indicators that are directly linked to the project,

are within the purview of the implementing agency and are measurable. If there are

multiple sets of indicators, as in the case of HNPSP, it should be clearly stated in the

PAD which set is used for monitoring what.

24

In order to ensure proper M&E of the sector-wide programs like HNPSP,

restructuring of RFW indicators should be made as early as possible (if required) with

the aim to monitor a final set of indicators on regular basis during the program

duration.

For critical RFW indicators, relying on other DP-driven projects/initiatives to collect

data is not advisable.

For large SWAps, and particularly in circumstances such as in Bangladesh, it would

be advisable that Task Team Managers are locally based in order to provide

maximum support to Government and to ensure coordination with other partners.

7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners

(a) Borrower/implementing agencies

1. The draft ICR of HNPSP has well identified the successes and weaknesses of the

HNPSP. MOHFW is in agreement with the ICR rating as “Satisfactory”, and this is

in line with the End-line evaluation of HNPSP by IMED, Ministry of Planning.

2. For seven out of the twelve indicators, achievement was more than 100%, which

contributed to increase in availability and utilization of essential healthcare

services.

3. HNPSP implementation has brought in some efficiency gains, which have been

identified well in the ICR. These include on-time submission of FMRs,

outsourcing of internal audit functions (as the first Ministry in GOB), and pro-poor

investments. The MOHFW is aware of the weaknesses of HNPSP as identified in

the ICR, viz. weaknesses in fiduciary management capacity, under-spending of

allocated finds, etc., and the new health sector program has been designed to

address these issues.

4. Regarding ICR’s observations on delay in contracting a) PSO/MSA and b) NGOs

for nutrition services, there were valid reasons for the delay in contracting

PSO/MSA and questionable performance of a number of NGOs resulted in delay

in contracting NGOs to provide nutrition services.

(b) Cofinanciers

Comments made by KfW:

The report gives an interesting overview on the program implementation. We share the

same points of view in many respects. The report describes the project implementation

from the WB perspective. However, the donor arrangements and the cooperation between

all development partners (pooling and non-pooling funders) could have been analysed

more in detail. It seems that the revision of PDO indicators and outcome indicators in

2009 translates the lowering of the expectations concerning the program results. If this

had not been done, the assessment would have been not so good. Further details provided

in Annex 7.

25

Comments made by DfID:

The report provides a relatively balanced narration of the implementation environment,

strengths and constraints of the last SWAp. However, preparation of this report nearly a

year after the completion of HNPSP may limit its usefulness. Progress on indicators were

generated by the Government information systems. The lack of third party verification or

triangulation of data and results continues to be a concern deepened by the recognition of

overall ‘weak internal controls…’ and limited progress in M&E in the sector. The report

states that Bangladesh is on track to achieve MDGs 4 & 5 according to the BDHS and

BMMS results, but it remains unclear how much is attributable to the public sector

through the SWAP. This is in part because of the considerable private sector health

provision in Bangladesh, some of this by public providers themselves, goes largely

unmentioned.Further details provided in Annex 7.

Comments made by Sida:

Although there have been significant achievements in the health sector but the experience

of HNPSP shows that weakness remain. It is clear that coordination between DPs and the

Government, as well as among the DPs must be revitalized in order to increase alignment

and harmonization. Systemic problems include overly centralized health system, weak

governance structure and regulatory framework, inefficient allocation of public resources,

lack of regulation of the private sector, and a shortage of human resources for health.

Progress in the health sector reform is very low and need to be fully owned by GOB and

supported by adequate technical assistance. Further details provided in Annex 7.

Comments made by Embassy of the Kingdom of the Netherlands:

The ICR is fine and informative.

(c) Other partners and stakeholders

N/A

26

Annex 1. Project Costs and Financing25

(a) Project Costs by Category (in USD Million equivalent) for pooled funds

Category Appraisal Estimate

(USD millions)

Actual/Latest

Estimate (USD

millions)

Percentage of

Appraisal

Category 1 Goods ,works,

services and operating costs under

Part D of the project 187 58.48 31%

Category 2 Services of NGOs,

private sector and non public

provider 112 86.67 77%

Category 3 Goods other than

those included in Category 1 236 463.61 196%

Category 4 Works other than

those included in Category 1 127 23.56 19%

Category 5 (a) Services other than

those included in Category 1 37 7.1 19%

Category 5 (b) Training/Studies 60 43.62 73%

Total Financing Required 760 683.04 90%

(b) Financing plan (commitments by pooling partners and actual receipts)

Source of Funds Type of Co-

financing

Appraisal Estimate (USD millions)

Actual/Latest

Estimate (USD

millions)

Percentage

of

Appraisal

CANADA: Canadian International

Development Agency (CIDA) Pool 13 4.6 36%

UK: British Department for

International Development (DFID) Pool 189 110.46 59%

EC: European Commission Pool 130 105.53 81%

Germany: German Development

Cooperation through KfW Pool 0 48.83

International Development

Association (IDA) Pool 300.00 300 100%

NETHERLANDS: Min. of Foreign

Affairs / Min. of Dev. Coop. Pool 53 44.99 85%

SWEDEN: Swedish Intl. Dev.

Cooperation Agency (SIDA) Pool 75 67.63 91%

UN Fund for Population Activities Pool 1 1.00 100%

Total 760 683.04 90%

25 The appraisal estimates of costs, by category, have been taken from Annex 6 of PAD. The appraisal

estimates for the financing plan have been drawn from the designated section on Pool Funding as stipulated

in Annex 9 of PAD. Financing data, in the PAD datasheet, includes financing plan by the DPs for both

pool as well as other parallel financing and hence differ from the data presented above

27

Annex 2. Outputs by Components

1. Accelerating

achievement of

HNP-related MDG

and PRSP goals

Bangladesh has seen an accelerated reduction in infant and child

mortality rates (MDG4) as well as impressive decline in MMR

(MDG5) about 40% in 10 years. Accelerated progress is being

achieved with regards to MDGs 4, 5 and 6, owing to successful

public health interventions. However there has been limited

progress in MDG 1. This requires essential service delivery

targeted to the poor, particularly women in the areas of

reproductive health, ante and post natal care, delivery by SBAs,

nutrition counseling and micronutrient supplementation. Fertility

decline in Bangladesh has resumed after a decade-long plateau

and has reached 2.3. There has also been substantial progress in

increasing contraceptive prevalence which has increased from

47.3 percent in 2004 to 54.1 percent in 2010 for modern methods.

Between 2004 and 2010, impressive gains have been made in the

coverage of vertical programs: 82 percentage of children under 2

receive all basic vaccinations in 2010 up from 73.1 percent in

2004; 82.6 percentage of children 9-59 months given vitamin A

supplements in 2010; and, 82.7 percentage of children under 5

with symptoms of acute respiratory infection sought care from a

trained provider in 2010, up from 74.6 percentage in 2004. The

progress in vitamin A supplementation and full immunization

coverage have been equitable with less than 10% difference

between the poorest and the richest wealth quintiles.

The challenge is to increase utilization of essential health service

deliveries attended by skilled personnel. In 2010 it was 26

percentage compared to 15.7 in 2004; percentage of antenatal

coverage by medically trained provider was 56 percentage in 2010

compared to 50.5 percentage in 2004.

A number of public health interventions have shown good

progress, achieving or exceeding their targets. TB control, one of

the most successful public health partnership programs, has

already achieved 2010 targets of a 70% detection rate and an 85%

cure rate, the latter due to the 100% coverage of Directly

Observed Treatment-Short-course (DOTS) at the District level.

The National Malaria Control Program also achieved the 50%

reduction of malaria specific mortality target in 2008.

MOHFW has finalized a National Health Policy that sets out the

priorities of the Government and aligns it with the goals set out in

the Second National Strategy for Accelerated Poverty Reduction

(NSAPR II).

28

2. Meeting

emerging HNP

sector challenges

Over the last several years, Bangladesh has been witnessing

several natural calamities, new and emerging diseases and an

increasing incidence of NCDs. Among the many aspects covered

under this component, avian influenza and emergency

preparedness are areas that have clearly progressed well. The

country seems well prepared for emergencies relating to natural

disasters. There are standard operating procedures in place for

mass casualty management and disaster mitigation for field level

health personnel. The program has well-functioning teams to

respond during emergencies. Although these systems are in place,

the quality of any response may be hampered by the often fairly

low level of institutional capacity and service quality in the health

sector.

For prevention and control of major NCDs, some limited progress

has been made. Under reduction of injuries and implementing

improvements in emergency services, four one-stop crisis centers

to address violence against women, were established during the

project period in four divisional Medical College Hospitals.

Further, the manual that guides management of violence was

updated in 2007 and training initiated for health service personnel.

There are, however, limitations regarding appropriately trained

personnel which constrain the availability of some services.

Limited progress has been made in the area of urban health

services development. The Ministry of Local Government, Rural

Development and Cooperatives (MOLGRDC) has contracted out

NGOs to implement services in the urban areas while MOHFW

provides the required commodities such as contraceptives and TB

drugs. Besides, MOLGRDC in coordination with the MOHFW is

in the final stage of development of a strategy for Urban Health

Services.

MOHFW has made important strides in developing policies and

strategies for emerging challenges. These include development

and endorsement of: The National Health Policy; b) Strategic Plan

for Surveillance and Prevention of NCDs 2011-2016; and c)

National Cancer Control Strategy and Plan of Action 2009-2015.

3. Advancing

HNP sector

modernization

The demand-side financing (DSF) pilot, a maternal health voucher

scheme for pregnant women, in 33 upazilas under this component

has been successful in increasing skilled delivery and substantially

increasing safe motherhood practices in the pilot areas. Major

policy decisions/agreements on decentralization and hospital

autonomy were not reached due to the changing political situation.

Building on the concept of LLP, district-specific work plan were

prepared and implemented by making resources available to

29

increase permanent and long-term contraceptive use in lagging

divisions of Chittagong and Sylhet.

There has been limited progress in implementation of this

component. This may be due in part to the setting of over

ambitious expectations that did not sufficiently take into account

political economy considerations.

Health sector diversification aimed at harnessing national

capacity for provision of HNP services by setting up mechanisms

for greater involvement of non-public providers. Progress in this

component was aimed to the expansion of the NNP area based

community nutrition program to 63 new upazilas and transfer of

management of HIV/AIDS NGO contracting from UNICEF to

the Management Support Agency(MSA).

Some additional achievements:

A regulatory framework for pharmaceuticals was established

MOHFW have also initiated a process to develop National

Health Care Financing Strategy.

The proportion of districts with Disease Surveillance Reports

increased substantially.

30

Annex 3. Economic and Financial Analysis

Annex 3A: General sector considerations

Total health expenditure (THE): According to the third round of the Bangladesh

National Health Accounts 1997-2007 (BNHA 1997-2007) per capita THE was US$ 16 in

2007 (Purchasing Power Parity US$ 46). The public sector accounted for one fourth of

the per capita health spending that remained under 1% of Gross Domestic Product (GDP)

throughout the period.

The total health expenditure (THE) as a percentage of GDP was 3% in 2003 which rose

to 3.4 percent in 200726

, showing a slow but steady increase over time (Figure A3.1). Per

capita health expenditure increased at a higher rate than per capita GDP. Rising THE is

explained by rise in households out-of pocket payment at the time of service delivery.

Figure A3.1 Public health spending and Households spending on health as a share of

GDP

Source: Bangladesh National Health Accounts 1997-2007

Government health expenditure: The HNPSP RFW set a target to increase MOHFW

budget to 10% of total national/government budget by 2010. During the implementation

of the Project, the share of health budget has remained under 7% (Table A3.1) except in

2007/08. In case of revised MOHFW budget the share crossed 7% only in 2006-07.

However, a closer examination of the MOHFW budget and expenditure reveals that it is

not lack of commitment or under financing rather under spending is an issue which

leads to fluctuation in allocation to MOHFW (PER 2007/08 and 2008/09, HEU,

26 Latest NHA data available is from 2007

2.7% 2.7% 2.7% 2.8%

2.9% 3.0% 3.0%

3.1% 3.2%

3.3% 3.4%

1.5% 1.6% 1.6% 1.6%

1.7% 1.8% 1.8% 1.8%

2.0% 2.1%

2.2%

1.0% 0.9% 0.9% 0.9% 0.9% 0.9%

0.8% 0.9%

0.8% 0.9% 0.9%

0.0%

1.0%

2.0%

3.0%

4.0%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

THE HH spending Public health spending

31

MOHFW, 2011, Page 5). Under spending of budget is not unique to MOHFW, it is a

government wide problem (PER 2006/07, HEU, MOHFW, 2010, page 3).

Table A3.1. Share of MOHFW in national budget, revised budget and expenditure

Year Budget Revised

Budget

Actual

Expenditure

2003-04 5.8% 6.9% 6.3%

2004-05 6.7% 5.7% 5.3%

2005-06 6.7% 6.9% 5.1%

2006-07 6.9% 7.4% 6.9%

2007-08 7.0% 6.7% 6.5%

2008-09 6.4% 6.8% 6.7%

2009-10 6.3% 6.6% 5.7%

2010-11 6.6% 6.5% 5.7%

2011-12 6.0% NA NA

Source: Monthly Fiscal Reports of various years, MOF Website

Composition of expenditure: The composition of expenditure is analyzed in terms of

two broad categories: i) capital versus recurrent expenditures; and ii) salary versus non-

salary recurrent expenditure.

Capital expenditure remained around 20% during the project period but reached the peak

in 2005/06 (Table A3.2) As shown in the table, the share of MOHFW spending for

capital expenditure has been fluctuating.

Table A3.2. Capital and recurrent share of MOHFW spending (%)

Fiscal year Recurrent Capital

2003/04 80% 20%

2004/05 83% 17%

2005/06 77% 23%

2006/07 83% 17%

2007/08 80% 20%

2008/09 79% 21%

Source: PER 2003/04-2005/06 and PER 2007/08-2008/09, HEU, MOHFW

The share of non-pay recurrent expenditure to the total MOHFW expenditure has been

steadily declining since 2005/06 (Table A3.3).

Table A3.3 Share of non-salary recurrent expenditure in MOHFW spending (%)

Fiscal year Non-salary

recurrent

2003/04 44%

32

Fiscal year Non-salary

recurrent

2004/05 48%

2005/06 45%

2006/07 42%

2007/08 41%

2008/09 39%

Source: PER 2003/04-2005/06 and PER 2007/08-2008/09, HEU, MOHFW

It is to be noted that major share of total MOHFW spending is meant for salaries.

Therefore, it is important to examine how HNPSP money was spent. The following table

shows that 68% of HNPSP pooled fund was spent on goods and equipment which

includes contraceptives, drugs and medicines and medical equipment.

Table A3.4 Composition of HNPSP spending (IDA+ MDTF) (USD, %)

Category Amount in

USD

Percent

Performance Based Financing 58,486,671 9%

Services - NGO, Private 86,678,793 13%

Goods & Equipment 463,069,542 68%

Civil Works (Construction) 23,566,010 3%

Consultancy 7,123,649 1%

Training/Studies 43,628,288 6%

Total 682,552,953 100%

Source: FMRs and Bank System

Absorptive capacity. There is a chronic under spending of MOHFW development

budget. During 2003/04-2005/06 (covered by the Contingency Plan between HPSP and

HNPSP) unspent portion of the development budget halved from 28% to 14% (Table

A3.5). However, since 2005/06 it has been fluctuating. The Program aimed to resolve the

constraints that led to under-spending of the allocated budget. Several steps were taken to

expedite fund release.

Table A3.5 Unspent MOHFW revised development budget (%)

Fiscal year Unspent (%)

2003/04 27.6%

2004/05 17.2%

2005/06 13.6%

2006/07 25.2%

2007/08 17.1%

2008/09 26%

33

Source: PER 2007/08-2008/09, HEU, MOHFW

Annex 3B: HNPSP

HNPSP Expenditure by quarter

During the first two years of HNPSP, expenditure was low due to slow implementation of

program activities as discussed earlier while towards the end expenditure increased with

accelerated implementation of the program. Table (A3.6) shows disbursement pattern

throughout the program period by quarter. In almost every year, expenditure increased in

the last quarter while in the first two quarters, expenditures tended to be low. This may be

due to the fact that there were delays in release of funds to the cost centers.

Table A3.6: Share of Pooled fund expenditure by quarter

Year Q1 Q2 Q3 Q4

2005 - - - 100%

2006 11% 12% 0% 78%

2007 - 49% 7% 44%

2008 74% 8% 17% 0%

2009 40% 5% 0% 55%

2010 0% 19% 0% 81%

2011 0% 48% 49% 3%

Source: FMRs and Bank system

Economic rationale at Appraisal

A formal cost-benefit analysis was included in the PAD. Such analysis is known to be

difficult and is prone to methodological problems including uncertain assumptions.

Another way at looking at this issue is more qualitative as described below.

During the preparation of HNPSP, it was suggested that the program will allocate

increased resources to the poorest Upazilas. During implementation, this indicator was

revised to increase resource allocation to all Upazilas as there were difficulties in

measuring this indicator. The program also focused on reaching the poor and underserved

and investing in known cost effective interventions (e.g. immunization, behavior change

communication on nutrition and NCDs).

The HNPSP also set out to address governance issues that could have reduced wastage

and improved efficiency. Many of these identified at Appraisal had to do with financial

management, yet increasing GOB capacity in FM system strengthening was not included

in the HNPSP.

Furthermore, with a very high level of out of pocket (OOP) expenditure combined with

the market failures in the health sector, improving government stewardship of the sector,

34

as intended, was economically sound. The planned pilots on Demand Side Financing had

the potential of increasing utilization of cost-effective services, which was delivered on.

Implementation implication for efficiency

Most of the economic rationale was maintained throughout HNPSP. And overall the

HNPSP fared well in terms of achieving its goals, including increasing service uptake by

the poor, and sustaining a high proportion of funding spent at the Upazila level (>50%). It

also maintained a focus on poverty and equity, for example when it was decided to fund

civil works these were prioritized towards poor/underserved areas.

Other areas related to efficiency were less successful: diversification was achieved to a

minimal degree. Capacities in financial management and procurement were weak and

during the program implementation capacities were built on procurement and preparation

of timely FMRs. The structure of the HNPSP with its many silo like OPs where

investments often were not sufficiently coordinated caused a number of inefficiencies (as

e.g. documented by the IMED Evaluation).

Financial analysis

The overall HNPSP (pooled funding, i.e. IDA and MDTF) performed well with a much

larger disbursement from the MDTF than originally envisaged, see disbursement profile

below.

$0

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Original amount Revised amount Cumulative expenditure

35

Sustainability

Funding in the sector was US$ 4-5/capita/year to deliver comprehensive basic services.

Given the results of the sector in terms of more vertical approaches, the performance

could have been improved more with higher levels of funding. Given that the pooled fund

financed a fairly big share of MOHFW revised development budget (56%), sustainability

in the short term would have suffered, if a similar program had not followed HNPSP. In

the longer term GOB should easily be able to sustain a very basic primary health care

focused health system, given the economic growth of 6% and the fact that with the low

proportion of GOB funding going to the health sector, GOB could increase the proportion

it allocates for health if this was considered a political priority.

Cost-Benefit Analysis

The PAD calculated an NPV of US$ 610 million (5 year) and US$ 2,975 million (10

year) and an Internal Rate of Return (IRR) of 21% and 51% for 5 and 10 year horizons.

These calculations are based on the assumptions listed in the table below.

NPV/IRR Assumptions with present value.

Assumption Base/value Year Result Year Achievement

Malnutrition in children

under five years of age

reduced by 14% (MDG)

66% 1990 39% 2010

(FSNSP)27

More than

achieved

Malaria reduced by

30% (MDG)

0.0053

malaria

death rate

per 1000

2003 0.0034 2010 (Health

Bulletin )

Achieved

32% increase in number

of TB cases treated

84%

93%

2010

(NTP)28

HNPSP target

of 95% cure

rate probably

not quite

achieved (93%

in 2010, a year

before HNPSP

finish )

Proportion of people

seeking medical

treatment

89% 2000,

HIES

91% 2010 (HIES) Increased,

which would

only improve

cost-efficiency

Healthcare visits to

public facilities as % of

total

13% 2003,

CIET

Not

Available

Can be

assumed to be

unchanged or

increased

Average days of illness 2 days Not

available

Assumed

unchanged

27Food Security and Nutrition Surveillance Program, BRAC University

28 National Tuberculosis Program (NTP) Annual report

36

Assumption Base/value Year Result Year Achievement

For chronic

disease: 80

months

2000,

HIES

81.4 months 2010 ,(HIES)

Cost of an Essential

Service Package

US$ 34 200129,

WHO

Estimate

remains the

same

Proportion of people

receiving treatment in

public hospitals

6.6% 2000,

HIES

9.3% 2010 , HIES Increased,

which will

only improve

HNPSP cost-

efficiency

Proportion of service

users who attends

government hospitals

2% 2003,

CIET

Not

Available

No CIET

survey

available

after 2003

Given the

above

indicator, this

can be

assumed

unchanged or

increased

GDP per capita growth

rate

3.3% 1990-

2004

avrg.

6.7% 2011 BD

Economic

Review

Higher than

estimated,

which would

influence NPV

and IRR

positively

% of users who receive

inpatient treatment in

public hospitals and

who would be at risk if

they had not received

treatment

5% Not

Available

No reason to

change

assumption

Health sector spending 30would increase in line

with projected expenses

stated in the SIP 2005-

10

Estimated

at 10%

nominal

and 5% real

per year

SIP 14.2%

nominal and

7.6% real per

year

BNHA1997

-2007

Better than

expected,

would

influence cost-

efficiency of

HNPSP

positively

Discount rate 10% Unchanged

assumption

Most of the assumptions have been fulfilled, and furthermore the PAD Sensitivity

Analysis shows a respectable NPV and IRR of US$ 1,288 million and 27% respectively

at a 50% reduction in benefits, it can, therefore, be concluded that overall ,HNPSP has

been a very worthwhile investment.

29 Macroeconomics and Health: Investing in Health for Economic Development, WHO, 2001

30 This refers to Total Health Spending (THE)

37

Annex 4. Bank Lending and Implementation Support/Supervision Processes Task Team Members:

Supervision/ICR

Name Title Unit Responsibility/

Specialty

Md. Mahtab Alam Program Assistant SACBD Administrative

support

Anisuzzaman Chowdhury Consultant SASHD Operations

Shahadat Hossain Chowdhury Program Assistant SACBD Administrative

support

Rafael A. Cortez Sr. Economist (Health) LCSHH Health Economics

Agnes Couffinhal Economist SASHD Health Economics

Md. Raziq Hossain Operations Officer SASHD Operations

Farzana Ishrat Nutrition Specialist SASHD Nutrition

Preeti Kudesia Senior Public Health Specialist SASHD Public Health

Iffat Mahmud Operations Analyst SASHD Operations

Dinesh M. Nair Sr. Health Specialist SASHD Team Lead

Sandra Rosenhouse Sr. Population & Health Specialist. SASHD Public Health

Harvinder Singh Suri Consultant SARPS Procurement

Yolanda Tayler Lead Procurement Specialist SARPS Procurement

Bina Valaydon Health Specialist AFTH1 Public Health

Elfreda Vincent Program Assistant SASHD Administrative

support

Alejandro Welch Information Assistant SASHD Administrative

support

Suraiya Zannath Sr Financial Management Specialist SARFM Financial

Management

Kees Kostermans Lead Public Health Specialist SASHN Team Lead

Albertus Voetberg Lead Health Specialist SASHN Public Health

Sameh El-Saharty Senior Health Policy Specialist SASHN Team Lead

Bushra Binte Alam Senior Health Specialist SASHN Team Lead

Nkosinathi Mbuya Senior Nutrition Specialist SASHN Nutrition

Aparnaa Somanathan Senior Economist EASHH Health Economics

Ramesh Govindaraj Senior Health Specialist SASHN Pharmaceuticals

Tania Dmytraczenko Senior Economist LCSHH Health Economics

Michael Engelgau Senior Public Health Specialist SASHN Non-communicable

diseases

Ruma Tavorath Senior Environmental Specialist SASDI Environment

Teen Kari Barua Consultant SASHN Social safeguards

Marghoob bin Hussein Senior Procurement Specialist SARPS Procurement

Karar Zunaid Ahsan Research Analyst SASHN M&E

Hasib Ehsan Chowdhury Program Assistant SARFM Operations

Nasreen Begum Team Assistant SASHN Administrative

support

Mariam Claeson Program Coordinator SASHN HIV/AIDS

38

Tatyana Klimova Senior Resource Management

Officer SARRM Trust Funds

Maria Gracheva Senior Operations Officer SASHN Operations

Nilufar Ahmad Senior Gender Specialist SDN Social issues

Shirin Jahangir Consultant Social issues

Tahmina Begum Consultant Heath Economics

(b) Staff Time and Cost

Stage of Project Cycle Staff Time and Cost

No. of staff weeks USD Thousands

Lending

FY02 14.45 50.48

FY03 15.05 52.72

FY04 30.53 117.16

FY05 56.89 199.05

FY06 0 0.00

FY07 0 0.00

FY08 0 0.00

FY09 0 0.00

FY10 0 0.00

FY11 0 0.00

FY12 0 0.00

Total: 116.92 419.41

Supervision/ICR

FY02 0.00 0.00

FY03 0.00 0.00

FY04 0.00 0.00

FY05 0.00 0.00

FY06 17.6 48.12

FY07 149.4 359.43

FY08 198.68 645.36

FY09 237.38 834.33

FY10 254.05 774.58

FY11 173.87 216.15

FY12 139.39 324.03

Total: 1,170.37 3,202.00

39

Annex 5. Beneficiary Survey Results

No beneficiary survey was done as part of the ICR. However, the IMED evaluation

(IMED evaluation, pp. 139-145) contained a survey of service recipients at the facility

level and Focus Group Discussions (FGD) at upazila level, a summary of which is

provided below.

Main findings from the interviews with service recipients:

A total of 490 exit clients and beneficiaries of the catchment areas of District Hospitals,

Maternal and Child Welfare Centers (MCWC), Upazila Health Complexes (UHC) and

Union Health & Family Welfare Centers (UH&FWC) were randomly selected for

interview in order to assess the utilization of health and family planning services

provided by the respective health facilities. Among the patients interviewed, 87%

indicated that they have visited the health centers in the last six months, and the main

services sought in the health facilities were treatment for common disease, various

illnesses affecting children, emergency health care, complications during delivery and

side effects of family planning methods. 89% of the patients reported that they were

provided service by MBBS doctors at the facility and the rest by para-professionals or

Family Welfare Visitors (FWV).

The mean waiting time of the patients was 31 minutes and 49% of the patient reported

that privacy was maintained during examination. 90% of the patients reported the service

providers’ behavior as satisfactory/fairly satisfactory, while 3% reported service

providers’ behavior as very unsatisfactory. Majority of the patients suggested that in

order to improve the health services in the public facilities, it is important to ensure

supply of essential medicine, regular availability of the physicians at the facilities,

placement of MBBS doctors, and availability of equipments. Around 80% of the patients

indicated that the services provided from the government health facilities has improved

over time.

Main findings from focus group discussions (FGD) at upazila level:

Seven FGD meetings were conducted at the upazila level. The groups comprised of male

and female patients in selected health facility, Chairperson as well as members of the

Upazila Parishad (i.e. local government body), private physicians, teachers, community

youth leaders, and farmers. All the groups opined that HNPSP was implemented well,

which resulted in marked improvement in a) quality of health services through UHC, b)

availability of doctors, nurses and equipments, and c) supply of essential drugs to the

patients especially to the women, children and the poor.

The groups also identified that there should be more attempts to take the health services

to the door-steps of the poor people and the health workers should be equipped with all

required facilities. Adequate supervision should also be ensured.

40

Annex 6. Summary of Borrower's ICR and/or Comments on Draft ICR

As outlined in the Executive Summary & Chapter 5: “Strengths and Weaknesses of

HNPSP” from IMED Evaluation.

Summary of IMED Evaluation:

1. The Report presents the End-line Evaluation of HNPSP as per the terms of reference

(TOR) prepared by the Evaluation Sector of IMED. HNPSP is the second sector-wide

program of the MOHFW and continued from 2003 to 2011. The implementation of

the Program involved three separate governments: (1) from 2003 to end-2006, (2)

from 2007 to end-2008, and (3) from 2009 to June 2011. Implementation picked up

from 2007 after the APR diagnosed HNPSP as a patient needing intensive care under

the threat of becoming terminally sick. This prompted even the-then Chief Adviser's

Office (of the care-taker government) to establish monthly monitoring of the Program.

The MTR of HNPSP was done in 2008 followed by revision of the PIP and that of all

the 38 OPs for the remaining period. In view of the expenditure patterns, it was

decided to extend the HNPSP for an additional year i.e. upto June 2011, (sec. 1.1).

2. In line with its terms of reference, the End-line Evaluation attempts to assess how far

HNPSP has been able to achieve its declared goals and targets, to identify its

strength and weaknesses and to offer recommendations for 'more pragmatic and

effective implementation of the Program' (sec 1.4).

3. Both quantitative and qualitative data have been used in preparing the Report. Annual

Performance Review (APR) reports and a considerable number of periodic national

surveys and occasional reports provided the secondary material which has been

supplemented by the findings of a quantitative survey, focus group discussions (FGD)

and intensive qualitative interviews with the stakeholders. The findings of the field

survey and interviews are placed at Part III of the Report (sec. 1.5). These are in

broad agreement with, and supportive of, the findings of the national level surveys

and affirm quite high level of user's satisfaction with HNPSP services.

4. Part II of the Report contains studies on a number of OPs prepared by 4 Consultants

covering some of the major OPs dealing with (a) services delivery and with (b) the

services delivery support systems. The service delivery OPs include 3 from DGFP:

Clinical Contraception Service Delivery Program, Family Planning Field Services

Delivery Program and the OP on Maternal, Child and Reproductive Health Services

Delivery Program. 2 OPs from DGHS have been covered: OPs on Essential Services

Delivery and Improved Hospital Services Management. In addition 1 OP on Nutrition

has been included, so that 6 OPs related to service delivery have been covered.

The following OPs on Service Delivery Support System have been covered by the

Consultants: 3 OPs on human resource management along with the investments on

capacity development, spread over a large number of OPs and 3 OPs on PFM and 2

41

on Procurement (Chapter 9). These Reports are also accompanied by an Executive

Summary.

5. The Report presents an assessment of the major impact indicators (Ch.4 and Annex-

D) which shows considerable improvements in health outcomes both for the

achievement of MDG and PRS goals: reduction of maternal and child mortality,

reduction of malnutrition and total fertility rate (TFR), improvements in: CPR, Vit-A

supplementation, women receiving ANC & PNC, delivery at health facility,

assistance by medically trained provider during delivery and the nutritional status of

women and children etc. TB case detection and cure rate was higher than targeted,

while HIV/AIDS had remained low in coverage. The poor performed better thereby

reducing the gap with those in the highest quintile, though the remaining gap is still

very substantial.

6. It is however not possible to apportion these improvements to health sector

interventions or specifically to HNPSP alone. A number of socio-economic factors

seem to have influenced the outcome (sec 1.3). Moreover, the HNPSP represented

only a part of the resources being invested in the health sector: it did not include the

non-public sector; neither did it include all the resources of the MOHFW. In fact, it

did not even include all the development budget interventions of the Ministry: e.g. 11

development projects in Annual Development Program (ADP) (2010-2011) including

the project on Revitalization of the Community Clinics were outside its purview. In

view of its limited boundary, it will be unrealistic to assign the national health

outcomes to effects of HNPSP. However there is an international recognition that

Bangladesh must have been doing something right to achieve the improvements in

health status.

7. The Report has specifically focused on the structure of implementation and co-

ordination in HNPSP (sec. 3.1), with coverage of its monitoring mechanism (sec. 3.2).

The planning, processing and approval of OP, the role of the LD and the various

monitoring mechanisms like APR, APIR, Stakeholders Consultation, the monthly co-

ordination meetings etc. have been highlighted with notes on lessons learnt and

suggestions (section 3.2.4).

8. Strength and weaknesses of HNPSP-both structural and operational-have been

identified (Ch. 5) with recommendations linked to the weaknesses (Chapter 6). The

four Reports on the OPs at Part II also include analysis of weakness and strength with

recommendations for those OPs.

Strengths and Weaknesses of HNPSP (As in IMED Evaluation)

HNPSP is the second program of MOHFW using a SWAp, as mentioned in section 1.1 of

the introductory chapter of this Report. Some of its strengths and weaknesses can be

traced to its inheritance. These appear to fall into 2 broad categories: structural and

operational. Below are some of them, which are not exhaustive but may be representative.

42

1. Strength of HNPSP:

a) Structural- In spite of reservations about certain operational aspects of the

Program, the planners and policy formulators of MOHFW recognize the usefulness

of the SWAp, however limited and constrained it is in coverage of health services

delivery in the sector. They emphasize on the fact that the SWAp allowed them to

concentrate on specified objectives, develop programs to match those objectives, fix

targets for achieving improvements and marshal needed financial resources to

support the various activities for achieving the targets. Moreover, this helped

MOHFW to be in the driving seat while allowing the DPs a broader role in the total

process of planning and implementation of the Program. The SWAp had bestowed

upon MOHFW the responsibility of taking a holistic view of the health sector and

had raised expectations about the Ministry's stewardship role for both the public and

non-public sectors through setting service standards, accreditation and quality

control etc. This had led to increased awareness and ownership of the Program by

MOHFW.

b) Operational-

1. At the operational level, HNPSP provided flexibility to adjust to new

challenges, e.g. the Avian flu or the health risks posed by cyclone Aila etc. and to

develop fully funded program activities to meet those emergencies. Moreover,

Inter-OP fund adjustments could be made based on annual review / assessments to

improve utilization, even though it was felt that there was scope for improving

upon the flexibility in HNPSP operation.

2. HNPSP practiced a 'soft' SWAp which allowed it to mix sector and project

resources to overcome or side-step constraints of accessing 'pooled' funds as

needed. This was used as an option by MOHFW to avoid or to reduce shortfall in

procurement planning, or to address needs which the established processes were

failing to respond to, or to pilot new interventions / approaches.

3. Major health indicators like maternal mortality, child and infant mortality,

population growth rate, CPR (Table 4.1), immunization rate, TB case detection

and cure rate or even the sero-surveillance rate for HIV/AIDS etc. showed

remarkable performance during the program period. See Annex- D for the

achievement of benchmark indicators. Impressive improvements in health

outcomes have been consistently reported by variety of surveys, reports and

studies. It is however common knowledge that a host of conducive socio-

economic factors influenced the positive health outcomes (see section 1.3) and it

would be difficult to apportion the responsibility to only the health interventions.

Yet there is an increasing awareness in international circles that Bangladesh and

MOHFW must have been doing something right to take forward and sustain the

positive trends. There is no better evidence than these to affirm the success of the

policy and programs being followed by MOHFW.

4. During the long HNPSP period, the performance of service delivery- both

MNCH and public health- improved, after initial slow take-off. Utilization of

43

facilities at District and levels below increased without increase in financial

investment, indicating achievement of efficiency gains. Access of the poor to

utilization of public services also improved steadily, even though it remained

considerably lower than that of the highest quintile.

5. Fiduciary risk management consistently improved over time within the

constraints of MOHFW's financial management structure.

2. Weakness and Constraints of HNPSP

Some of the constraints and weaknesses of HNPSP followed from its structure-the way

in which the Program was designed or its activities were structured, while quite a

substantial number of the weaknesses appear to be of operational nature- the way in

which the program and the activities were implemented.

2.1 Structural weakness and constraints

1. The Program design of HNPSP was both complex and rigid. The 4 major

components described at section 2.2 indicate the vastness of its scope and ambition.

The beginning of a policy shift from MOHFW being a 'provider' of health services

to a 'purchaser' was skillfully built into the Program, with provision of institutional

support in the form of 3 private sector agencies assisting MOHFW to take the

necessary steps. The burden of these 'reforms' weighed heavily on the scarce

managerial resources of MOHFW, made more challenging by the political

transitions which took place in end-2006 and again in early 2009. The MTR in 2008

recognized this design-aspect as a major draw-back of HNPSP and suggested re-

designing the Program with emphasis on the service delivery system and a

strengthened support system (to include HR, procurement, M&E and financial

management etc.) The suggestion was not acted upon and the constraints posed by

the mentioned aspects of the Program's design remained to the end.

2. Procurement and funds release posed serious points of contention and

misunderstanding between MOHFW implementers and the fund manager, the

World Bank, throughout the HNPSP period. The dissatisfaction often reached the

planners and policy formulators in MOHFW and this became quite voluble when

the new government took charge in 2009. Delays in procurement processing and in

logistic supply as well as the fund's release conditionalities (involving 3 categories

of payments, the annual conditionalities around release of performance based

financing and the quarterly fund release system through reconciled FMRs etc.)

adversely affected the progress of implementation of the Program. Limited steps

could be taken by MOHFW and the World Bank to reduce the difficulties but both

were hobbled by their built-in institutional inadequacies.

The procedural rigidities connected with delays in procurement and funds release

could be traced mainly to the type of loan which Bangladesh (ERD) negotiated with

the World Bank- an investment loan which reflected perception of higher level of

44

fiduciary risk, as opposed to say, policy lending. PFM system of Bangladesh is the

responsibility of the MOF and the issues connected with perception of fiduciary

risks are beyond the scope of MOHFW. The fact, however, remains that HNPSP

was implemented within the rigidities imposed by the investment loan and suffered

procedural delays and considerable management challenges in smooth

implementation of the Program.

3. The structural divide between the Revenue and Development aspects of budget in

the governmental financial system had serious implications for planning and

implementation of HNPSP. For example, shortage of needed (health) human

resource due to difficulties in creation of posts or in filling up vacancies- both of

which are functions of Revenue budget created shortfall in service delivery as a

constant feature of HNPSP. Systems were not set up to trigger the creation of posts

or the filling of vacancies in the revenue set-up of the Ministry to tie-up with the

creation or upgrading of additional physical facilities (for hospital or medical

training etc.) through HNPSP OPs. This explains existence of newly built physical

facilities failing to provide the planned services due to acute shortage of needed

manpower e.g. doctors, nurses or technicians with specific skills. Development

expenditure through OPs was thus robbed of creating improved service impact due

to absence of synchronization between the Revenue and Development budgets of

MOHFW.

4. Additional structural rigidity was introduced by the way in which each of the 38 OP

was designed as separate units independent of each other. This led to misuse and

misallocation of resources as has been pointed out in sub-sections 3.1.1 and 3.1.2.

Thus, for example, investments through OP on physical facilities were made

without providing those with supply of equipments through OP on Improved

Hospital Management Services. This was made worse by the absence of

coordinated steps for supply of needed human resource on the Revenue side. MTR

2008 and APR 2009 drew attention to the constraints created by the structure of

stand-alone OPs and their 'tunnel' visions.

5. The uncompromising bifurcation of services between the two Directorates-of

Health and Family Planning-from the centre to the lowest service delivery points at

the field level - led to duplication and avoidable wastage of financial and human

resources. Both the MTR 2008 and APR 2009 commented on the negative effects

of the bifurcated services and urged upon improved co-ordination in the absence of

any realistic possibility of providing integrated services. Unfortunately, those who

were MOHFW policy formulators during the planning of HNPSP supported and

contributed to the bifurcation of the services. It is a negative legacy with which

subsequent health programs will also have to grapple with.

2.2 Operational Weakness and Constraints

The operational weakness and constraints could be traced mainly to the ways in which

OPs were planned, processed and implemented, the management’s performance: in

45

procurement, placement and retention of HR, supervision and monitoring of

implementation, MOHFW's stewardship role, quality of service, and governance etc.

1) OPs - planning, processing and implementation:

a. OP Planning: OPs were the main instruments for the content and

implementation of HNPSP. Unfortunately, these were centrally planned,

without any input from or interaction with the field-level implementers. The

top-down planning was accompanied by top-down implementation, without

being responsive to the needs or suggestions originating from the actual

implementers of the programme-activities. There was no scope for learning

from experience. This approach, for example, used a traditional facility-based

resource allocation formula which failed to take into account the specific area-

based needs or the needs of poverty stricken areas. Studies were made with

suggestion to develop more rational resource allocation formula, e.g. based on

population and poverty, but these remained as academic exercise only. Similar

was the fate of studies undertaken with HNPSP funds for the

operationalisation of district plans or LLP, which failed even to generate a

small-scale pilot.

b. OP Processing: The OPs were hastily prepared, processed and approved

(Sections 3.1.1-3.1.3), each OP as self-sufficient stand-alone unit unconnected

with each other. The ill-effects of such an approach have been pointed out in

Section 3.1 and commented upon especially in MTR 2008 and APR 2009.

2) LD - most important manager:

The LD was a key manager of HNPSP. He also provided the basic input for

planning and revising the OP. However, he didn’t have the training, exposure or

institutional support needed to effectively play his role as planner or manager of

implementation. Not even the dozen LDs, each of whom handled over 50 crore

taka worth of programmes under their OPs, had any specialised support for fund

management, disbursement, accounting or reporting. They were not given even a

preliminary orientation to the scope or contents of HNPSP or what constituted a

SWAp. To complicate matters, there were quick turn-over of LDs often: there

were stark examples of 5 LDs within a year for an OP! The choice of a LD was

not based on merit but on seniority, where only an officer of the level of a

Director in the Directorates was given the responsibility. As a result, quite often,

officers became LDs at the fag end of their career when learning new things or

being enterprising or imaginative would be very exceptional. The quality of

leadership from the most important manager of implementation of HNPSP, i.e.

LD, suffered due to deficiency in management support system as well as due to

poorly prepared individual leadership. The same holds true of the LDs in the

Ministry as well.

3) Management Performance:

46

The management's performance in procurement, placement and retention of HR,

monitoring and supervision of implementation in the field, ensuring quality of

service and good governance etc. left scope for considerable improvement.

a. Procurement: Deficiency in procurement planning, processing and tracking

was reasons for complaints and frustrations of most LDs and implementers,

especially against centralised procurement. More unfortunate and counter-

productive was the fact that there were many instances where procured

equipments or drugs were allocated to places or institutions which had no use

for them either because they did not need those or because the required

technical staff/resources for their operation were not made available. A survey

of procured equipments by the World Bank found considerable wastage of

HNPSP resources due to uncoordinated central procurement. (Bangladesh

Equipment Survey, 2008, WB)

b. Placement and Retention of HR: Given the fact that there is overall shortage

of health service providers in the public sector- doctors, nurses and

technicians, there is a pressing need to make judicious and equitable use of

this critical input for ensuring promised service delivery. In spite of the

widespread recognition of this need, the MOHFW management failed to

evolve a system for national placement and retention of service providers. The

rural and hard-to-reach areas continued to remain at the receiving end, while

the absence of appropriate skill-mix deprived the people of services for which

investments had been made e.g. emergency obstetric care services. MOHFW

made attempts from time to time to address the problem, but these were

neither consistent nor driven by legal or ideological compulsion.

c. Monitoring and Supervision of Implementation: Like planning, monitoring of

implementation in HNPSP was concentrated at the Centre, with little

opportunity or responsibility to the other tiers of MOHFW structure like the

Division, District or Upazila managers. MIS data originating from the ward

level (by the Health Assistant/ Family Welfare Assistant) travelled upward all

the way to the Directorate HQ (of DGHS and DGFP) where these got

aggregated, but the field implementers had little scope to utilise them in

programme monitoring. Neither were these used at the monthly co-ordination

and review meetings held at the level of Secretary MOHFW or of the DGs at

the 2 Directorates. At the field level, there were no systemic requirements for

regular and periodic supervision. As a result, no Supervision Manual or

guideline was developed. Monitoring was restricted to one-way reporting

from the field to higher levels, with little systematic feedback from those

levels or from the LD or the DGs. The Ministry's M&E Cell had little role to

play in analysing the MIS data, the field reports or the monthly IMED reports

sent by the Planning Wing of MOHFW. Neither did IMED prepare or discuss

Monitoring Report on HNPSP with MOHFW. Monitoring and Supervision

remained a neglected activity in HNPSP.

47

d. Quality of Service and Good Governance: Quality of service and good

governance suffered partly due to absence of an established regime of field-

level monitoring and supervision. It was also partly a result of absence of

quality-culture. The OP on quality assurance did develop Quality Manuals in

the form of Standard Operating Procedures for different health facilities and

conducted training workshops to orient and train the service providers at some

districts and upazilas. However, these were not implemented and put into

practice. While the top managers did not possibly feel it important and urgent

enough for introduction, there was no community pressure or demand from

the public representatives associated with the Management Committees of

those facilities. The community's voice had little institutional role in HNPSP

for improving service quality or poor governance e.g. absenteeism, informed

payments, non-receipt of available service or mistreatment, etc.

4) MOHFW's stewardship role:

MOHFW is not merely the public service provider but also the regulator for all

service providers: public, private, NGOs etc. The private sector's role has been

gradually expanding in providing medical education (for doctors, nurses,

technicians, etc.), hospital and clinical services and in drug production etc. So has

been the NGO's role in piloting new technology, new medicine, new service

delivery methods and targeting the disadvantaged people or hard-to-reach areas

etc. The quick expansion of the non-public sector has raised issues about

standards and quality and the need for the Government to ensure that the public

receives an assured and dependable service. MOHFW exercises its role as

regulator through enactment of laws and through institutions specifically created

to administer those laws e.g. BMDC, BNC and SMF for registration of doctors,

nurses and paramedics respectively. The expanding non-public sector is making

demands on the capacity and resources of the regulators, for which they are not

adequately equipped and resourced. Accreditation and standard-setting are crucial

for ensuring quality for the private and the public sector as well. MOHFW had

failed to take major steps during HNPSP period to convince that it took its

stewardship role of the health sector as seriously as needed.

5) Response to New Challenges:

Increasing and rapid urbanisation together with improving income are posing

serious health challenges in the form of the NCDs like hypertension, diabetes, etc.

while drawing attention to inadequate public service provisions for the expanding

number of urban dwellers. HNPSP identified both as important areas of concern

but failed to take adequate steps to address these. The OP on NCD was inadequate

in leadership, programmes and implementation while MOHFW failed to take

meaningful steps to establish an urban health strategy or engage the Ministry of

Local Government for joint initiatives in addressing the challenges of urban

health.

6) Absence of Strong Leadership of HNPSP:

48

The SWAp expects strong leadership from the Government while the DPs provide

support- both financial and technical for the successful implementation of the

sector programme. The Annual Programme Reviews lamented the absence of

ownership of HNPSP by the senior leaders of MOHFW particularly during the

APRs of 2006 and 2007. Things improved since then but no follow-up action was

taken by MOHFW on recommendations by the APRs for branding HNPSP or

developing a communication strategy for its recognition by the service providers

and recipients. Instead of the MOHFW leadership, the APRs became the main

source of dynamism in performance evaluation and establishing the future course

of action for the year. Similarly, the Task Groups for different functions (see sub-

section 3.2.3.3) failed to yield optimum service in the absence of adequately

prepared government leadership.

MOHFW felt diffident in taking up and resolving problems HNPSP was facing

regarding release of funds, procurement processing, sudden personnel changes,

uncertain reporting by parallel funders and similar other issues involving other

Ministries of the Government (like M/O Finance, M/O Establishment, etc.) and

those involving the World Bank or the DPs. The need of SWAP for different

dispensation separate from a project was not systematically made at inter-

ministerial levels by MOHFW.

49

Annex 7. Comments of Co-financiers and Other Partners/Stakeholders

KfW (reproduced verbatim):

General remarks:

The draft report gives an interesting overview on the program implementation.

We share the same points of view in many respects. However, we have a few

remarks on the draft.

The report concludes that most implementation activities focused on the delivery

of medical services and that there were not many activities in favour of health

systems reform or for health policy development. Apparently, there was a lack of

real policy dialogue among others also between donor and MoHFW. In the

“lessons learnt” the importance of political dialogue and system reforms are again

emphasized. However, in the document we miss an analysis on the hindering

factors and how they could be overcome.

There are a number of institutional reform areas in the health sector in Bangladesh.

Health services could gain a lot of efficiency if the institutional problems would

be overcome. In the draft report, you find some indications of some of them but

the report does not go very far when discussing those very critical issues of

institutional modernization.

The draft report describes the project implementation from the WB perspective.

However, the donor arrangements and the cooperation between all development

partners (pooling and non-pooling funders) could have been analysed more in

detail.

It seems that the revision of PDO indicators and outcome indicators in 2009

translates the lowering of the expectations concerning the program results. If one

had not done this, the assessment would have been not so good.

On page 9 of the draft, the revenue and development budgets are described.

However, the risks involved with that budget presentation is not clearly spelt out

including the untimely release of the revenue budget information. We consider the

timely presentation also of the revenue budget as an essential element of

transparency. If we want to assess the performance of MoHFW, we need to know

whether they have been able to mobilize their own resources in time. If those

budgets are structured in, different ways both are spent by the MoHFW.

As for the procurement issue (page 14), a few problems are pointed out

concerning the tender documents. We also want to know whether the procurement

entities have prepared needs assessments and whether those needs assessment

were checked.

Specific remarks:

The list of abbreviations is incomplete. I could not find the following

abbreviations: CSO, DO, MSA, MS, and SIM.

On page 8 they talk about six critical actions taken by the GOB and DPs. Those

actions are not disclosed in that text section. I suggest indicating them.

Annex 1, table b: Please write for Germany: “Germany: German Development

Cooperation through KfW”

50

DfID (reproduced verbatim):

The report provides a relatively balanced narration of the implementation

environment, strengths and constraints of the last SWAp. However as an internal

World Bank assessment of progress and received nearly a year after the

completion of the last sector programme in June 2011, this may have limited

practical usefulness.

What is striking in the report is that significant statistical progress seems to have

taken place in all of the key indicators during the last sector programme yet the

data comes largely from Government’s own systems. For example, progress on

indicators like “percentage of Districts with disease surveillance systems”, “TB

cure rates” are generated by the Government information systems while public

expenditure reviews are done by the Health Economics Unit of the MoHFW itself.

The lack of third party verification or triangulation of data and results

continues to be a concern deepened by the recognition of overall ‘weak internal

controls…’ and limited progress in M&E in the sector.

A second concern is that 71% of pooled funds were expended on capital

investment, yet there is no system for performance or operational audits (only

financial audits are conducted).

Although there were (and continue to be) Annual Performance Reviews that

include independent reviewers, the report states: “not all recommendations

provided by the independent team (APR) were implemented due to various

constraints in the Government system….”. However the constraints were not

explained.

Finally, the report states that Bangladesh is on track to achieve MDGs 4 & 5

according to the BDHS and BMMS results, but it remains unclear how much is

attributable to the public sector through the SWAP. This is in part because of the

considerable private sector health provision in Bangladesh, some of this by public

providers themselves, goes largely unmentioned.

Sida (reproduced verbatim):

Although there have been significant achievements in the health sector but the

experience of the second health sector programme, HNPSP, shows that

weaknesses remain.

The result framework shows many of the targets are not achieved or achieved

partially despite of changing initially set targets. Disparities between poor and

not-so-poor have increased at the sub-regional level, and inequity in access to

quality social services remains a challenge.

Gradual decline of health budget is another area of concern. MOHFW’s total

budget is a proxy for the total HNPSP budget and it reflects government’s priority

and political will. This budget is increasing in nominal terms, more than 10

percent per year since 2008/2009. But inflation is 10.5 percent that indicates real

increases are less impressive.

Systemic problems include overly centralized health system, weak governance

structure and regulatory framework, inefficient allocation of public resources,

lack of regulation of the private sector, and a shortage of human resources for

health. Progress in the health sector reform is very low and need to be fully owned

51

by GOB and supported by adequate technical assistance. Policy dialogue needs to

be more inclusive.

The funding modality of HNPSP took a cautious approach to fiduciary risks. It is

in principle similar to the financing mechanisms used in very difficult

environments and provides a relatively high degree of assurance that donor funds

will be properly and effectively used. However, the modality risks achieving less

significant improvements in Bangladesh’s PFM systems, imposing higher

transaction costs on GoB and reducing sustainability compared with a more

aligned support. Sweden and like-minded donors will encourage GoB system

improvement during the programme and if possible greater alignment.

The experience of the previous sector programme makes it clear that donor

government coordination and coordination among donors must be revitalized, in

particular to increase alignment and harmonization. A significant share of support

to the health sector is provided through parallel mechanisms, not necessarily

consistent with the sector programme, on budget, or even on plan. Sida considers

this an area of improvement. Global health and GAVI funds were outside the

sector policy dialogue, although they are on budget. Civil society is not truly

involved in sector coordination mechanisms.

Embassy of the Kingdom of the Netherlands ((reproduced verbatim) :

The ICR looks fine and informative

EKN is not mentioned in the list of Abbreviations and Acronyms

52

Annex 8. List of Supporting Documents

The following are the main documents used for the ICR:

Begum T & T Dmytraczenko: Public Expenditure and Institutional Review of HNP

Sector, March 2008.

Chowdhury ME et al: Determinants of reduction in maternal mortality in Matlab,

Bangladesh: a 30 year cohort study, The Lancet 2007

Scanteam: Options for Aid modalities for the Health sector pool fund mechanism, Final

Draft Report, Scanteam Feb. 2011

HLSP: “Performance Monitoring Frameworks in the Health Sector. Country Notes:

Bangladesh”. Undated, HLSP Institute.

HNPSP: Bangladesh Health, Nutrition and Population Sector Program, Annual Program

Review 2006, IRT April 2006

HNPSP Annual Program Review 2006: Aide Memoire, April 2006

HNPSP Annual Program Review 2007, Report by the Independent Review Team (IRT)

(vol. I & II), April 2007

HNPSP Annual Program Review 2007: Aide Memoire, April 2007

HNPSP: Bangladesh Health, Nutrition and Population Sector Program, Mid Year Stock-

take, November 5-18 2007

HNPSP Mid-term Review, Report by the Independent Review Team (vol. I & II), April

2008

HNPSP Mid-term Review 2008: Aide Memoire, April 2008

HNPSP Annual Program Review, Report by the Independent Review Team (vol. I & II),

May 2009

HNPSP Annual Program Review: Aide Memoire, May 2009

HNPSP: Aide Memoire: 2010 Light Touch Annual Program Review of HNPSP, July

2010

MoP: End-Line Evaluation of Health, Nutrition and Population Sector Programme

(HNPSP), by Implementation Monitoring & Evaluation Division (IMED), Ministry

of Planning, September 2011

53

Kostermans K & P Geli: The Sector Wide approach in Action: The Example of

Bangladesh Health, Nutrition & Population Sector; SASHD, World Bank - undated

MoHFW: Bangladesh National Health Accounts 1997-2007, Health Economics Unit,

Ministry of Health and Family Welfare, December 2010

MoF: Monthly Fiscal Reports of various years, Ministry of Finance Website

MoHFW: Public Expenditure Review of the health sector 2003/04-2005/06, Health

Economics Unit, Ministry of Health and Family Welfare, October 2007

MoHFW: “Annual Program Implementation Report (APIR) 2009; M&E Unit. MoHFW

April 2009

MoHFW: Public Expenditure Review of the health sector 2007/08-2008/09, Health

Economics Unit, Ministry of Health and Family Welfare, October 2011

MoHFW: Health Bulletin 2011, Directorate General of Health Services, Ministry of

Health and Family Welfare, March 2011

NIPORT: Utilization of Essential Services Delivery (UESD) Survey 2010, National

Institute of Population Research and Training, Ministry of Health and Family

Welfare, August 2011

NIPORT: Bangladesh Maternal Mortality Survey 2010 (preliminary report), NIPORT

and MEASURE Evaluation, February 2011

Vaillancourt D: Do Sector Wide Approaches Achieve Results? Emerging Evidence and

Lessons from Six Countries; World Bank IEG Working Paper 2009

World Bank: Project Appraisal Document for Health, Population and Nutrition Sector

Program (HNPSP), Report No: 31144-BD, March 2005

World Bank: HNPSP Implementation Status and Results (ISR), seq no. 16, November

2011

World Bank: Country Assistance Strategy, 2006-2009

World Bank: Country Assistance Strategy, 2011-2014

World Bank: Implementation Completion and Results Report: Guidelines; OPCS, World

Bank August 2006 – updated 10/05/2011.

World Bank: Bangladesh Public Expenditure & Institutional Review Vol I & II, June

2010

54

Annex 9. Results Framework of HNPSP (overall program indicators)

Results Framework of HNPSP (2003-2010), REVISED on July 2008

Indicators

Status Target Achievement

Using Benchmark as baseline.

Benchmark

with

reference

period

2004 2010 2010

COMPONENT I: ACCELERATING ACHIEVEMENT OF MDG/PRS OUTCOMES

a) Impact / Outcome Indicators

Infant Mortality Rate (IMR) 94 (1990)

65

BDHS 2004

45

BMMS 2010 37* 86%

Neonatal Mortality Rate (NMR)

52

BDHS 1993-

94

41

BDHS 2004

32

BMMS 2010 30* 91%

Under Five Mortality Rate (U5MR) 151 (1990)

88

BDHS 2004

56

BMMS 2010 52* 96%

Maternal Mortality Ratio (MMR) 574 (1990) 320

BMMS 2001

194

BMMS 2010 240* 113%

% U5 underweight (6-59 months) 67 (1990) 47.5

BDHS 2004

38.6

FSNSP 2010 34* 86%

% U5 stunted (24-59 months) 54.6

BDHS 1996 43.0

BDHS 2004

35.5

FSNSP 2010 30* 78%

Total Fertility Rate (TFR)

3.4

BDHS 1993-

94

3.0

BDHS 2004

2.5

BMMS 2010 2.2 75%

b) Output Indicators

TB Case Detection Rate 41.0

NTP 2003 46

NTP 2004

74.0

NTP 2010 75 97%

TB Cure Rate 83.7

NTP 2003

85

NTP 2004

92.0

NTP 2010 95 73%

% children (under 1yr) fully immunized 52.8

CES 1999/00

73

CES 2003

80.0

CES 2011 85 84%

Percentage of newborn protected at birth

against tetanus

83

CES 1995

86

CES 2003

91.3

UESD 2010 95% 69%

% Children 1–5 receiving Vita-A

supplements in last 6 months

73.3

BDHS

1999/00

81.8

BDHS 2004

92.2

CES 2011 >90% 114%

Utilization rate of ESD of the two Lowest

Income Quintiles

a) % of Births

attended by skilled

personnel (by wealth

quintiles)

Total 12.1

(1999/00)

13.4

BDHS 2004

26.5

BMMS 2011 50%

Lowest

Quintiles 3.5 (1999/00) 3.3

BDHS 2004

11.8

UESD 2010 10% 128%

b) % ANC by

medically trained

providers (by wealth

quintiles)

Total 33.3

(1999/00)

48.7

BDHS 2004

56.0

UESD 2010 75%

Lowest

Quintiles 19.4

(1999/00) 24.9

BDHS 2004

40.3

UESD 2010 40% 104%

Contraceptive Prevalence Rate – CPR

(modern methods)

43.4

(1999/00) 47.3

BDHS 2004

54.1

UESD 2010 72 (any)

60 (modern) 64% (modern)

% eligible couple/women on Long Lasting

Birth control methods 8.9 (1999/00)

7.2

BDHS 2004

7.4

UESD 2010 9.3 Negative (10% if compared to

2004)

55

Indicators

Status Target Achievement

Using Benchmark as baseline.

Benchmark

with

reference

period

2004 2010 2010

COMPONENT II: MEETING HNP SECTOR CHALLENGES

Tobacco usage among

men and women aged

15+ (%)

Smoking

tobacco NA

20.9 (2004)

WHO(SEAR

O) 2007

23.0

GATS 2009 15%

Not achieved

Smokeless

tobacco NA

19.7 (2004)

WHO(SEAR

O) 2007

27.2

GATS 2009 15%

NCD strategy developed and implemented

as per details in RFW Nil

Strategy not

developed

Strategy

developed and

updated; NCD

risk behavior

survey

conducted;

NCD piloting

and Injury

piloting

activities are

incorporated

into

Operational

Plan

Implemented

& indicators

identified

Achieved

Share of total government expenditure

allocated to MOHFW expenditure 6.5% (2004) 6.5%

6.7 (2007/8)

APIR 2009 10% 6%

COMPONENT III: HNP SECTOR MODERNIZATION

Budget management

Proportion of total MOHFW expenditure

allocated to the 25% poorest districts NA NA

15% (2006-

07)

APIR 2009

40% Not achieved

MOHFW expenditure on medical and

surgical requisites at districts and below NA 9%

67%

(FY06/07)

APIR 2009

- Achieved (although no target)

% of MOHFW expenditure at upazila and

below NA 51%

47%

PER 2008/09 >50%

40% (see section F under key

data sheet)

% serious audit objections (part a of audit

report) settled within the last 12 months NA NA

100%

FMAU (2011) 100% 100%

Diversifying service provisions

HNP services commissioned to non-public

providers by MOHFW NA NA NA - N/A

Decentralized planning

Pilot on management autonomy in 6

district hospitals and 14 UHCs Nil Nil

6 districts

(Strat Plan

2011)

6 district

hospitals & 14

UHC

100%

Pilot LLP at 6 districts and its Upazilas

and FY 2009 budget to reflect these pilots Nil Nil

Not done

(IMED 2011)

6 districts &

Upazila below 100%

Demand side financing

% of women targeted by voucher scheme

delivered by SBA (at facility or home) NA NA

64%

(DSF Eval.

2010)

60% 107% (no baseline)

56

Indicators

Status Target Achievement

Using Benchmark as baseline.

Benchmark

with

reference

period

2004 2010 2010

Aid management

# of DPs reporting their planned

expenditure on HNP sector (annually) NA NA NA 100% Achieved

# of DPs reporting their actual expenditure

on HNP sector (quarterly) NA NA NA 100% Achieved

Procurement

% of contracts awarded within initial bid

validity period:

For NCB b) For ICB

93%

(2005/06)

APIR 2009

93%

(2005/06)

APIR 2009

80%

APIR 2010 90% Not achieved (declined)

Monitoring and evaluation

MIS (Health &

FP) delivering

management

information to

agreed

specifications

Coverage of disease

profile by

upazila/district

facilities

NA NA 98%

APIR 2010 100% 95% (no baseline)

% Districts with

Disease Surveillance

Reports

NA 52% (2006) 95%

APIR 2010 100% 89% (using 2004 as baseline)

* Calculated in line with MDG 2015 targets