Bangladesh’s SDGs Needs Investment and Financing StrategyA.T. M. Siddiqur Rahman

Joint Secretary

Finance Division, M/O Finance

Salient features, gap financing, overlapping, challenges

❑ SDGs Needs Assessment and Financing Strategy- Bangladesh Perspective provides a well defined framework that outlines the goal and target wise additional estimated cost.

❑ Development approach of the country aims to effectively drive SDGs implementation by whole of society approach which incorporates the private sector, CSOs, NGOs, development partners, media etc.

❑Bangladesh has already aligned SDGs in its 7th Five Year plan, the development blueprint of the country

❑The goals and targets under SDGs are interconnected . Therefore, if cost of implementation for each goal is estimated separately, total cost will overestimate the actual cost of implementation.

❑Overlapping issues have been addressed using a process of synchronization among overlapping goals and targets

Salient features, gap financing, overlapping, challenges Contd.

❑The government formed SDGs Implementation and Monitoring Committee under the leadership of principal Coordinator at Prime Minister’s Office assigned to expedite the implementation of SDGs and monitor the progress.

❑The lead Ministries & Divisions are finalizing their own action plan to implement the SDGs in a coordinated manner.

❑GED has done an exercise on mapping of Ministries/Divisions to identify responsible Ministries/Divisions for each corresponding indicator

❑GED, planning commission conducted a study to assess the additional cost of implementation of SDGs.

❑A data Gap Analysis for SDGs has also been conducted to review indicators for which data are available, for which are not, and which indicators require modification of existing data system.

Salient features, gap financing, overlapping, challenges contd.

❑The country has already integrated SDGs into national planning framework.

❑The major challenge for the costing exercise was that many of the proposed indicators are newly introduced and data for these indicators are unavailable.

❑According to the data gap analysis of GED, data for 70 indicators are readily available; data for 63 indicators are not available and data for 108 indicators are partially available.

❑Interdependencies among the goals and targets constitute another major challenge.

❑Goal 8 is the center of synchronization. Achieving most of the goals will

depend on SDG 8 which aims to achieve decent job and sustainable and

inclusive growth of the economy.

Salient features, gap financing, overlapping, challenges contd.

❑An additional amount over the current provision of cost related to SDGs by public sector, private

sectors and external sources would be USD 928.48 billion at 2015-16 constant prices required for

SDGs in the period FY 2017-FY 2030 under 7th FYP extended scenario.

❑The annual average cost of SDGs will be USD 66.32 billion (at constant prices).

❑Five potential sources of gap financing includes (i) Public Financing. (ii) Private sector financing,

(iii) Public-Private partnership (PPP). (iv) External Sources including Foreign Direct investment

(FDI) and Foreign Aid and Grants, and lastly, (v) Non-Government organization (NGOs).

❑ During the periods of FY 2017-FY 2030 on average, public sector, private sector, PPP, external

source and NGOs would account for 34%, 42%, 6%, 15% and 4% percent of the financing

requirement respectively.

Progress Update for SDGs Implementation

❑ Bangladesh’s performance in achieving various goals and indicators of MDGs has been remarkable

❑ 82 % of SDGs has been incorporated in the 7th Five Year Plan which is currently being implemented.

❑ SDGs Action Plans for ministries and divisions was formulated under which ministries and divisions are adopting projects/programs.

❑ The ‘Sustainable Development Goals: Bangladesh Progress Report 2018’ has been prepared covering all the goals and targets.

❑ About 40 priority indicators have been approved for implementation at thedistrict and upazila levels.

❑ Reducing the rate of poverty below 10 percent and extreme poverty below 3percent by 2030 have been included.

❑ Bangladesh will need a huge amount of financial resources till 2030 to implement SDGs.

232 indicators

169 targets

17 goals

SDGs

GED: Making growth work for the Poor 6

Progress Update for SDGs Implementation Contd.

❑ Government is emphasizing implementation of PPP project as an alternative source of financing.

❑ “SDG Implementation and Monitoring Committee” formed with 20 Secretaries from ministries/

divisions.

❑ Principal Coordinator for SDGs Affairs in PMO to coordinate overall implementation and

monitoring

❑ SDGs are aligned with the 7th FYP. 14 goals (82%) thematically fully aligned, 3 goals partially

(18%)

❑ Mapping of Ministries by Targets in the Implementation of SDGs aligning with 7th FYP

❑ SDG Data Gap Analysis has been finalized and published in 2017

❑ Bangladesh submitted Voluntary National Review (VNR) to UN on 17 July, 2017

7

Progress Update for SDGs Implementation Contd.

❑National Monitoring and Evaluation (M&E) Framework for SDGs published in 2018.

❑SDG Action Plan of 43 lead ministries prepared and published in 2018

❑An on-line SDGs Data Repository system are in the process of preparation.

❑Assimilation of SDGs in the APA of all Ministries/Divisions/Agencies.

❑SDG Implementation Review (SIR) in July, 2018

❑SDG Progress Report, 2018 launched in Feb, 2019

❑Bangladesh has set 39 SDG priority targets in 2019

Mapping of Ministries/Divisions by SDG Targets

❑Responsibilities of Ministry/ Division as Lead, Co-Lead and Associate against each target

❑50 ministry mapped as lead and/or co-lead according to allocation of business and 7th FYP

❑It also contains list of policy instruments and actions within 7th FYP and beyond

❑ To fix the role of each ministries for SDG implementation

❑Finance Division is lead against 9 targets and 11 indicators and co-lead against 2 targets. FD is associate against 35 targets and 40 indicators.

Data Gap Analysis for SDGs Monitoring

• To know about the requirement of data and finalize responsibilities of the ministries/divisions.

• Out of 232 indicators, data for 64 indicators readily available, 58 partially available and 110 are not available in country

• Huge data gap

• Finance Division will continue to provide data for 18indicators. Already past 5 year data has been provided to PMO for the ‘SDG Tracker’.

• Present status of data help us prepare the roadmap to achieve 2030 agenda.

National Monitoring & Evaluation Framework for SDGs

▪ On the basis of the findings of SDG Data GapAnalysis the SDG Monitoring and EvaluationFramework is prepared.

▪ This framework delineates baseline scenario andprobable targets in 2020, 2025 and 2030.

▪ This is prepared to monitor and evaluate the progressof SDG implementation.

▪ Means of implementation will need to be clearlyformulated and gaps identified.

▪ Private Sector’s roles and partnership needs to be

delineated/ figured out.

SDG Progress Report, Dec, 2018 (Launched Feb, 19)

Targets/ Indicator Base year Current status Milestone by

2020

Remarks

1.1.1Population below

international ($1.90 a day)

poverty line

18.5 (WB

2010)

13.8 (WB, 2016) 9.30 On track

1.2.1Population below national

poverty(upper) line

24.3 (HIES

2016)

23.1 (BBS 2017) 18.6 Need

attention1.a.2 Proportion of total

government spending on

essential services

Health

Education

Social Protection

4.8

12.8

12.7 ( 14-15)

6.5

14.4

15.3 (16-17)

5

15

15

Target met

Need

attention

Target met2.2.1 Prevalance of Stunting

(%)

41 (BDHS

2011)

36 (BDHS 2014) 25 On track

3.1.1Maternal Mortality ratio

per 100,000 live births

181(SVRS,

2015)

172 (SRVS 2017) 105 Need

attention

• Assessment of Progress during the first two years (2016-17)• Shed light where on track and lagging behind for each target• Reveal the data gap that must be filled• Rethink policies, strategies, actions to help achieve target

Bangladesh’s 39 Priority Targets

❑Adapt SDGs to country conditions- one size does not fit all

❑Cabinet approved 39 (+1) priority targets based on indicators

❑Projects for achieving these targets

❑Resource allocation for these targets

❑District, Upazila and other local level SDG implementation and monitoring will be possible

SDGs Needs Assessment and Financing Strategy

Estimation with two growth scenarios

1, BAU growth scenario (7%) 2. SFYP extended growth scenario (7+and 9% in 2030)

• Estimation With Synchronization and without

ItemExtended Growth

Synchronized

Additional cost 2017-30 (Billion US$)Constant 15-16 prices

928.48

Average additional cost(Billion US$) 66.32

Additional cost 2017-30 (Billion Taka)Constant 15-16 prices

94711.65

Additional cost 2017-30 (Billion Taka) Current 158036.65

SDGs Needs Assessment and Financing Strategy Contd.

❑Year-wise additional synchronized cost will increase over time. 2128.75 billion TK in FY17 and 13630.4 in FY30.

❑Cost of Goal 8 is the highest.

❑Additional cost will be 24.1 percent of GDP by 2030 starting from 10.2 percent in FY16.

Public Sector Financing : Enhancing the SDG orientation of the budget: in FY 2016, 78% expense. related to SDGEnhancing tax effort: improve 9 percentage point over next 13 yearsBond, Deregulation of energy prices, Debt financing, Savings from efficiency gain

Private Sector Financing: 7th FYP period 77.3% of the total outlays. 37-46% of total additional SDGs cost during FY 2017- FY2030

Public-Private PartnershipExternal Financing : FDI . From 2 billion per year to 6.91 billion per year, Green Climate FundNon-Government Organization

During 2017-30, on average public sector 34% of financing requirement and private sector will have 42% share.Public expenditure must add multiple private investment.Billion taka from government should generate trillion taka investment in private sector

Role of Private Sector for SDG Implementation • In GDP contribution of private consumption and investment is 68.7% & 23.1% respectively; • Goal 8, 9 and 12 reckons involvement of private sector

• SDGs 8: Promote Sustain, Inclusive and Sustainable Eco Growth, Full & productive Employment and Decent Work for all

• SDG 9: Build resilient infrastructure, promote inclusive & sustainable industrialization & foster Innovation

• SDG 12: Sustainable consumption and production

• Manufacturing sector generates only 12.8% of total employment; private sector can play a vital role

through expansion of manufacturing sector and employment generation (7FYP target is 12-16%

growth);

• Private provision of infrastructure through PPP

• Bangladesh climate vulnerable country. Private sector’s responsibility

✓Responsible way of production and consumption;✓Efficient use of natural resources;✓Reduce food waste & losses;✓Environmentally sound management of chemicals & wastes✓Reducing waste through recycling & reuse✓Companies should integrate sustainability information into their reporting cycle

SDGs, 39 Priority Indicators and budget preparation process (MTBF)

Ministry Budget Framework sec. 2: Strategic objectives and activities-

Mid-term strategic objectives (5-8 in number)-

Aligning some objectives with SDGs

Sec: 4.1: Priority spending areas/ programs (4-6 in number)-

Action plan for SDG Implementation should be consulted

Key performance indicators (KPIs)

Priority Indicators to be considered in project preparation, resource allocation

Tripartite Budget Meeting Working Papers

Tripartite Budget Meetings and Discussions

Tripartite Budget Meeting : Working PaperExample : 2018-19 Budget Tripartite Working paper of LG Division

Section 3.2:Review of Budget Aligned with SDGs Implementation

Brief discussion about Lead, Co-lead, Associate

Goal Targets Mapping Financing

(bn tk)1 End poverty in all its form

everywhere

1.1, 1.2, 1.3, 1.4,

1.5

Associate 156.6

6 Ensure availability and sustainable

management of water and

sanitation for all

6.1, 6.2, 6.3, 6.4,

6a,6b

Lead/ Co lead 401.10

11 Make cities and human

settlements inclusive, safe

resilient, sustainable

11.1, 11.2, 11.3,

11.6, 11.7, 11a,

11b

Lead, Co-lead -

15 Protect, restore and promote

sustainable use of terrestrial eco

system

15.2, 15.3, 15.4,

15.9, 15c

Associate -

THANK YOU ALL