The Local Government Division has undertaken a project worth nearly Tk300 crore aimed at increasing the revenue earnings of municipalities, boosting the local economy, and generating employment opportunities.
The project, titled “PRABRIDDHI: Local Economic Development (LED) project”, is scheduled to be presented for approval at a meeting of the Executive Committee of the National Economic Council (ECNEC) on Sunday, 25 October.
According to sources at the Planning Ministry, the total cost of implementing the project will be Tk299.99 crore, with Tk254.99 crore coming from government funds and Tk45 crore provided as a grant by the Swiss Agency for Development and Cooperation (SDC).
The project is scheduled for implementation from October 2026 to March 2030 across 70 selected Class ‘A’, Class ‘B’, and Class ‘C’ municipalities in all eight divisions of the country.
In its project proposal, the Local Government Division said that the “Bangla LED Model” was initially introduced in seven municipalities during the first phase of the “PRABRIDDHI” project to enhance municipal capacity for planning, own revenue collection, and business-friendly service delivery amidst rapid urbanisation.
This model contributed to local economic development through the integrated participation of municipalities, the private sector, and other stakeholders.
During that initial phase, around 38,000 entrepreneurs and 50,000 service recipients directly benefited, while approximately 49,111 new person-days of work were created.
Furthermore, the income of local entrepreneurs rose by nearly Tk12 crore, and participating municipalities collected an additional revenue of approximately Tk8 crore.
To institutionalise local economic development initiatives, Local Economic Development Committees were established comprising municipal representatives, private sector stakeholders, and relevant parties, which are now set for further expansion.
Under the new project, grants will be allocated to 70 municipalities to execute local economic development frameworks.
The project includes training for municipal officials and employees to enhance their skills, alongside research to identify local economic potential and market demand.
To streamline services, “Digital One-Stop Service Centres” and e-payment systems will be introduced.
In addition, a grant has been proposed for the National Institute of Local Government (NILG) to strengthen the capacity of local government institutions.
The initiative will also provide support to small and medium enterprises (SMEs) and local traders, establish an LED Fund, and create new investment and employment opportunities through public-private partnerships (PPP).
Recommending the project for ECNEC approval, Planning Commission’s Physical Infrastructure Division Member (Senior Secretary) Neyamat Ullah Bhuiyan noted that its implementation will institutionalise the local economic development framework across municipalities.
He said that it will expand digital services, increase municipalities’ own revenue and service delivery capacity, and support SMEs and local entrepreneurs.
He added that investments and job creation through the LED Fund and PPP will boost the economic participation of women, youth, and marginalised communities, while a successful outcome could allow the model to be expanded to other municipalities in the future.
