The World Bank has approved $250 million in financing to enhance public sector performance in Bangladesh, with a focus on improving transparency, accountability and efficiency across key government institutions.

The funding, under the Strengthening Institutions for Transparency and Accountability (SITA) Project, aimed to support the government’s ongoing reform agenda to modernise core public sector functions, including data transparency, revenue mobilisation, public investment, procurement, and financial oversight.

The project will strengthen governance structures and capacities in five key government agencies, namely the Bangladesh Bureau of Statistics, the National Board of Revenue, the Planning Division, the Bangladesh Public Procurement Authority, and the Office of the Comptroller and Auditor General, the World Bank said in a press release on Saturday.

‘The investment will leverage digitisation of business processes to help improve transparency and reduce corruption, by supporting Bangladesh in modernizing public institutions capable of serving an emerging economy,’ said Gayle Martin, World Bank Interim Country Director for Bangladesh. ‘This project will help improve the quality and accessibility of public services and thus enhance public trust in government institutions.’

The project aims to streamline operations and enhance service delivery in key government agencies by improving access to reliable public statistics and strengthening decision-making.

It will modernise tax administration, boost revenue mobilisation, and improve the efficiency and accountability of public spending.

The initiative also includes the development of next-generation electronic government procurement (e-GP) and the digitisation of public audits.

Additionally, the government and the World Bank are preparing a development policy credit to further support reforms in revenue, banking, data, investment, procurement, audit, and social service delivery, with the SITA project playing a complementary role in building the institutional capacity needed for these reforms.

‘By taking a holistic approach covering five critical public institutions, the project will boost government effectiveness, which is a key ingredient for sustainable economic growth,’ said Souleymane Coulibaly, World Bank Lead Country Economist and Task Team Leader for the project. ‘This project and the proposed development policy credit would be complementary and provide the government both the necessary hardware and software for improving public financial management and public service delivery.’

The World Bank was one of the first development partners to support Bangladesh after its independence.

Since then, it has committed over $45 billion in grants, interest-free, and low-interest credits to the country.

In recent years, Bangladesh has become one of the largest recipients of the World Bank’s concessional financing through the International Development Association (IDA).