International Development Agency (IDA) of the World Bank released only US$ 2.62 million as on June 30, 2005 out of the total financing commitment to the project worth US$ 37.0 million by the year 2007, World Bank sources said. The rest of the project cost would be financed by Bangladesh Bank.

"Due to the delay in procuring the IT systems, the largest component of the project, as well as change of both BB governor and project director (PD), a large gap was created between estimated and actual disbursement under the project," said a World Bank release yesterday.

However, it observed that the project was revamped recently, and got momentum for the initiative of the new BB governor and support from the government.

The objective of the Central Bank Strengthening Project (CBSP), effective from September 28, 2003, is to achieve a strong and effective regulatory and supervisory system for the country's banking sector.

It is intended to assist BB in strengthening its legal framework, reorganise and modernise the central bank by focusing on functional reorganisation, automation and human-resource development, and capacity building of research department, strengthening prudential regulations and bank supervision, and strengthening accounting and auditing.