USAID/Dhaka, Dept. of State, Washington, D.C. 20521-6120

R -- BANGLADESH FINANCIAL SECTOR REFORM PROJECT - TECHNICAL ASSISTANCE Contact, Ms. Alvera Sweet, USAID/Dhaka, C/O, U.S. Embassy, Dhaka, Bangladesh, Phone No. 880-2-884700, Internet: ASweet@USAID.Gov or Fax No. 880-2-883-638 or Bill Johnson, AID/Washington, Phone No. 202-647-9631 or Fax No. 202-647-3519. The USAID Mission to Bangladesh seeks expressions of interest from qualified Technical Assistance contractors to implement a 12 month extension of the Financial Sector Reform Project (388-0078). This project seeks to improve the functioning of the Bangladesh Financial Sector in a way that will cause more efficient use of capital resources in economic development. Interested parties may identify their interest and capability to respond to this requirement or submit proposals. This notice of intent is not a request for competitive proposals. See Note 22. The project is working to improve investment efficiency by strengthening the Bangladesh Bank's (BB) ability to implement a broad program of monetary and banking reforms, improve bank supervision and restructure four Nationalized Commercial Banks (NCBs) with the goal of their eventual privatization. The contractor will provide international and national consultants, limited commodities and training to achieve the objectives of 1) strengthening macro financial policy, 2) improving bank supervision, 3) increasing the operational efficiency of the NCBs and 4) upgrading the skills of Bangladesh Bank and commercial bank personnel. The project was authorized on June 06, 1990. USAID/Bangladesh signed a 52-month Technical Assistance (TA) contract with the Joint Venture of Nathan Associates, Inc. and Booz Allen and Hamilton, Inc (JV) on June 20, 1991. The original scope of work envisaged all activities under the project to end on October 19, 1995. Most of the Technical Assistance activities under the Joint Venture contract are scheduled to end on June 30, 1995. Essentially the original goals of the project have been achieved. However, continued development of the financial system requires additional inputs of technical skills to support reaching the next stage of financial reforms. Accordingly, the Government of Bangladesh (BDG) recently revised its project documentation which included a proposal to extend several key and critical project personnel for an additional 12 months. The mission expects a formal request from the BDG to extend the activities soon. The purpose of this extension is to deepen the implementation of the reforms without losing continuity or momentum to institutionalize the financial systems and reforms. The proposed 12-month extension is for services for which the USAID Mission to Bangladesh intends to negotiate with only one source, the Joint Venture, under authority of FAR 6.302. The key areas needing continued efforts during the extension period are: (A) Macro-Financial: the capacity of the Central Bank to implement indirect monetary policy, manage interest rate policy, and investigate problems of the financial sector has grown rapidly over the past four years. Emphasis in the extension period will be on training and on specialized studies carried out with Bangladesh Bank staff. (B) Bank Supervision: both on-site and off-site bank supervision has improved and systems are being put in place. However, substantial training efforts both formal and ''on-the-job'' are needed. The computerization carried out under the current JV Contract has made major progress; however, there is a continuing need to enhance the utilization of the computers. Futhermore, additional computers will be needed to expand the computerization effort started at the involved banks. (C) NCBs: the operational efficiency of the four NCBs has been significantly improved and the management has been provided with tools and methods enabling them to discharge their responsibilities more efficiently and effectively. There is a continuing need to expand on the systems introduced to achieve further progress. (D) Training: the project identified and developed a program for further training and human resource development that has been approved by the government. The implementation of this strategy is now one of the highest priority elements of the BDG's reform program. In order to achieve the above deliverables during the extension period a total of 135 person months of consultant resources consisting of 48 person months of international and 84 person months of national consultants and 3 person months of Home Office support will be required. In order to maintain continuity implementation of the activities is planned to begin by July, 1995 for a period of 12 months. See Note 22. (0082)

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