Governance Dynamics in Development Project Appraisal: Evidence from Bangladesh’s DPP and PEC Practices

Abstract

This study examines how development project appraisal is conducted in practice within Bangladesh’s public investment management system. It focuses on the Development Project Proposal (DPP) process and the role of the Project Evaluation Committee (PEC). Using a qualitative case study approach, the paper draws on process tracing of appraisal procedures and a review of official guidelines to examine how project proposals are prepared, reviewed, and refined within institutional settings. The analysis identifies recurring operational challenges, including optimistic cost estimates, variable quality of feasibility studies, project overlap, and institutional capacity constraints, particularly under the time pressures of the Annual Development Programme (ADP) cycle. At the same time, PEC deliberations function as a practical problem-solving platform, facilitating inter-agency coordination and enabling iterative improvements in project design and readiness. The study argues that meaningful reform requires attention to five interconnected priorities: strengthening how projects are prepared before they reach appraisal, making PEC deliberations more effective through digital support and systematic follow-up, applying appraisal standards consistently across agencies, building dedicated technical capacity within line ministries, and aligning appraisal timelines with budget cycles to allow for more thorough review. Distinct from broader landscape studies of Bangladesh’s infrastructure governance, this paper contributes a process-focused, practice-oriented analysis of appraisal mechanics, offering lessons for strengthening public investment management in developing-country contexts.