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The Planning Commission has returned a project proposal submitted by the ICT Division that aimed to provide reliable high-speed broadband connectivity to 39 million people and expand digital public services to boost annual ICT export capacity to $5.0 billion.
Citing excessive cost estimates, the commission recommended revising and resubmitting the "Digital Service Transformation for Access and Resilience (D-STAR)" project by dropping certain items, reducing allocations in specific heads, and providing detailed cost breakdowns where necessary.
The recommendations emerged from a Project Evaluation Committee (PEC) meeting held in late November to assess the D-STAR project, which was proposed at an estimated cost of Tk 31.72 billion, including Tk 31.06 billion in World Bank financing.
According to PEC meeting minutes, the project is expected to enable 78 million people to access digital public services through a secure, user-centric platform by 2031, potentially improving Bangladesh's global digital index ranking by 10 notches.
An official of the Economic Relations Division (ERD) said a Development Project Proposal (DPP) titled "TIGER" was initially submitted to the Planning Commission in 2023 and has now been re-proposed under the name D-STAR.
However, no formal communication has yet been received from the World Bank on the loan agreement, and negotiations have not begun. The PEC recommended attaching ERD's consent letter for foreign financing and a signed copy of the loan agreement with the revised DPP.
The committee suggested dropping nine items, including remuneration for non-employees, subsistence allowance, dearness allowance, tiffin allowance, and overtime payments, totalling Tk 36 million. It also recommended reducing allocations worth Tk 648.74 million across 11 components.
Specifically, the PEC proposed cutting the allocation for the BTRC's Training Management Firm for Local and International Training from Tk 609.1 million to Tk 100 million and requested a detailed justification and cost breakdown for this component in the revised DPP.
The meeting further asked for detailed justification and breakdown of total allocations worth Tk 15.16 billion for nine items, including transport hire, advance upskilling (including curriculum development and NSDA, international certification, training, seminars and conferences), publications, office rent, travel, and foreign training.
Officials said the Enhancing Digital Government and Economy (EDGE) Project, approved in 2022 with $295 million in World Bank support, aimed to save $300 million through efficiency improvements, create 100,000 jobs, and boost IT-firm revenues by $300 million.
However, irregularities and poor implementation slowed progress, prompting the World Bank to reduce the committed loan to $120 million, significantly affecting project targets. The ICT Division proposed D-STAR to achieve some of the goals under the EDGE project.
Planning Commission officials and ICT experts have sought justification for proposing the new project before fully assessing the failures of the previous initiative and establishing a proper strategy for effective implementation.
The D-STAR project aims to ensure affordable, quality broadband, enhance climate-resilient connectivity through private-sector participation and regulatory reforms, strengthen BTRC's capacity for spectrum management and digital regulation, and promote inclusive, gender-responsive access for women and underserved communities.
Shish Haider Chowdhury, ICT Division secretary, said the project aims for 100 per cent broadband coverage and the introduction of a one-stop government services platform, enabling citizens to access birth registration, NID, passport, and TIN information in one place.
"The project will also focus on skill development to boost IT product exports," he added.
The PEC decided the revised DPP must include justification for individual consultants and firms, detailed cost breakdowns, project duration, and scope of work, avoiding lump-sum allocations. A technical committee will reassess ICT equipment and software costs, while a market rate committee will review computers, accessories, and furniture. The revised costs, explanations, and committee reports must be included in the DPP.
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