Municipal Governance and Services Project (MGSP) (MGSP)



 Component 1 - Municipal Governance and Basic Urban Services Improvement (LGED)

This component will provide financial support to 26 pre-selected ULBs with high economic growth and job creation potential, located along the major growth corridors and three district towns in the South.  These ULBs were selected based on analytical evidence on urbanization and growth in Bangladesh.


Sub-component 1(a): Provision of Financia lSupport to pre-selected ULBs comprising: (i) Base Allocation to pre -selected ULBs, on an annual basis, basedon population and classification of respective ULBs; and (ii) Performance-based Allocation  to ULBs that demonstrate performance improvements in municipal planning, social accountability, public financial management and revenue mobilization, evaluated against ten performance indicators

Sub-component1(b): Provision of financial support for operations and maintenance (O&M): financial support for O&M, on a declining basis,over the project period to the 26 pre-selected ULBs for structured routine preventive maintenance of roads, drains, street lights, markets, public toilets, street cleaning and solid waste collection, with ULBs increasing their annual O&M budget allocations proportional to the declining IDA financial support. 


Component 2: Demand-based Financing for Urban Services (BMDF)


This component includes:(i) financing to BMDF, to provide demand-based financing through grants and loans to ULBs in for improvement of basic urban services; and (ii) measures to diversify capital sources, improve asset quality and earnings, and improve the sustainability of BMDF operations.


Component 3: Capacity Building and Implementation Support (LGED, BMDF, and LGD)


Sub-component3(a) (LGED): will support a nationwide capacity building program for ULBs to be undertaken by the Municipal Support Unit (MSU) of LGED. The sub-component will also include implementation support, like Design, Supervision, and Management Consultant, tailor made trainings, and part of incremental operating cost. It will also support for development of a National Municipal Performance Evaluation System and a GIS-based Urban Property and Asset Management System.

Sub-component 3(b)(BMDF): will support institutional strengthening of BMDF, andits management and supervision activities. The sub-component will also support design and sub-project preparation activities.

Sub-component3(c)(LGD): support for third party monitoring for the Governance and Accountability Action Plan (GAAP) to be managed by LGD.


Component 4. Contingent Emergency Response

This component will support, at GoB request, response and reconstruction activities following an adverse natural or man-made event that causes a major disaster, byre-allocating the IDA credit to this component.
At a Glance
Short Title: MGSP
Ministry: LGRD
Executing Agency: LGED
Approval Ref:
Project Code: 5113
Sector: Urban
Status: Ongoing Investment Project
Funded By: IDA, WB.
Budget: 247094
Start Date: Jan-2014
Completion Date: Jun-2021
Name of PD: Shaikh Muzakka Zaher