The World Bank (WB) and its partner donors will suspend part of their joint support for the health and population sector programme (HPSP).

However, they will continue financing the purchase of essential commodities like contraceptives, drugs and vaccines, says a press release.

The WB yesterday announced the suspension following the government's failure to present a plan to complete agreed reforms, or an alternative reform agenda and plan of action.

The government's commitment to a plan was due by April 30 and the suspension will be lifted as soon as it is made.

In a letter dated March 30, 2003, the donor financiers urged the government to take immediate remedial measures to avoid the suspension of nearly US$65 million intended to improve health services.

As such action was not taken on schedule, disbursements for the WB's International Development Association Credit for the HPSP and the co-financing trust funds have been suspended, except essential commodities and payments for contracts on special commercial bank commitments signed prior to the suspension.

The government adopted the five-year HPSP in 1998 with support from over 14 donors including the WB, the European Commission, the government of the Netherlands, the Swedish International Development Corporation Agency and the UK Department for International Development.

Designed on extensive consultations between the government, the civil society and development partners, the HPSP has succeeded in increasing the annual health budget to essential services and has enabled the health ministry to assume direct responsibility for management of health budget.

However, the programme also envisaged unification of the health and family planning wings of the health and family welfare ministry, decentralisation of management to district and upazila levels, hospital autonomy, adoption of a propoor health agenda, development of a national essential drugs strategy and development of health insurance, among others.

Only limited progress has been made on the reforms agreed upon, and unification has now been reversed, says the press release.

Without an alternative, Bangladesh will not achieve sustained improvement in family planning and population control, nor will it ensure any significant improvement in the health of women and the poor.