World Bank conducts DIR of five bank-funded health sector projects in India
	16:43 IST

The World Bank conducted a Detailed Implementation Review (DIR) in 2006-07 of five Bank-funded Health Sector projects in India, of which four were central-sector projects and one state-sector project. The Review pertained to the implementation of these projects during the period 1997-2006. The review was agreed upon and facilitated by Government of India. World Bank has shared the findings of the Review with Government of India.             The Review is in the nature of a fact-finding report and does not extend to detailed investigation. It is an exercise to identify indicators of systemic weaknesses and areas for follow-up intervention. The DIR has found indications of systemic deficiencies and probable fraud and corruption in procurement and implementation and insufficient oversight in the projects reviewed. It has recommended improvements in project design, supervision and evaluation as well as in procurement processes.             Government of India values its relationship with the World Bank and is fully committed to continuous systemic improvement in the implementation of all health sector projects, including those funded by the Bank and other development partners. It welcomes reviews, evaluations, inputs and suggestions from all quarters to better inform and assist the efforts at progressive improvement. Systemic deficiencies that plague all development programmes are to be addressed and loopholes plugged.             Government of India is sensitive to the issues raised in the DIR and has taken the findings of the review seriously. It has been decided that the lessons flowing out of the DIR would be reflected through additional measures in the procurement and implementation arrangements of the ongoing as well as pipeline health sector projects. The action plan for health sector projects, finalized with the Bank in 2006, would be revised in the light of the lessons emanating from the DIR and in consultation with the Bank. The revised action plan would be in place and would apply both to on-going as well as future health sector projects.             In addition to the above, based on the inputs of the DIR and other information that may be furnished by the Bank, necessary action under the relevant laws, rules and regulations would be taken against those suspected of wrong-doing and, if found guilty, they will be visited with exemplary punishment.             Some of the measures, inter alia, that the Government of India intends to undertake, are as follows:     i.            To increase transparency in procurement process, Ministry of Health and Family Welfare has commenced the implementation of a MIS-based Procurement and Logistics Management System. In the first phase, it is being implemented in the procurement activities of the Ministry and three States, viz. Orissa, M.P and Maharashtra. With the experience of the first phase, it would be rolled out in the entire country.   ii.            100% e-procurement in a two-year timeframe to enhance transparency and accountability. A pilot project in this regard would be launched this year (FY 08-09). Further, 100% procurement audits to be conducted annually.  iii.            Real-time supervision of inventory management, procurement, logistics and supplies would be introduced at all levels.  iv.            Above a threshold level, decentralized procurement would be subject to internal prior review for ensuring fiduciary checks.    v.            For post-delivery inspection and verification of completion/installation, independent agencies would be engaged.  vi.            Pre-bid conference with prospective bidders shall become an integral part of the tender process to enhance transparency and bid responsiveness. vii.            Sanctity of the bid evaluation committee reports shall be maintained.             In 2005, the World Bank had shared a report with the Government on its enquiry into the implementation of the Reproductive and Child Health (RCH-I) project. In the light of the findings of the said report, an action plan was finalized in consultation with the Bank in 2006. Several remedial measures, in terms of the action plan and otherwise, have already been undertaken since 2006. Some of these are:    i.            Ministry of Health and Family Welfare has entered into an agreement with an independent, internationally recognized UN agency, namely United Nations Office for Project Services (UNOPS) for all ICB procurement for externally assisted projects.  ii.            An Empowered Procurement Wing (EPW) has been established in the Ministry of Health and Family Welfare and a consultancy firm, M/s Crown Agent, has been engaged with the support of DFID to assist EPW in streamlining the entire procurement process. iii.            A comprehensive “Procurement Manual” encompassing the international best practices on procurement has been compiled in collaboration with DFID and has been shared with the States. This Manual will help them bring their procurement processes up to global standards. iv.            Bid documents have already been standardized to further streamline procurement processes.   v.            A specific project, viz. States’ Capacity Building Project, is being implemented to build capacity and empower the states in the procurement and logistics management as per the global standards and practice. vi.            In order to ensure Quality Assurance as per Good Manufacturing Practices (GMP), cent per cent certification/validation of the firms is being done prior to the award of the contracts and disclosure of full results on Government websites. vii.            The firms reportedly involved in malpractices were debarred and disciplinary proceedings have been initiated against individuals concerned. viii.            In order to eliminate collusion and bid rigging, a fraud detection software is being developed and its use shall be made mandatory. ix.            Strengthen transparency and accountability through Right to Information Act and placing all procurement information in public domain.  x.            Implementation Oversight by beneficiaries, citizens and civil society is being built into all health sector projects.  Details of the Projects Projects Amount   Period National AIDS Control Project – II US$ 193.7 million Sep 1999 – March 2006 Malaria Control Project US$ 114 million Oct 1997 – Dec 2005 Tuberculosis Control Project US$ 124.8 million May 1997 – March 2006 Food and Drug Capacity Building Project US$ 54 million Oct 2003 – June 2008 Orissa Health System Development Project US$ 82.1 million Sep 1998 – March 2006 BSC/RP/GN/07/08