Bangladeshi government and UNDP signed Monday an agreement on granting 18 million U.S. dollars to establish effective local governance system in Bangladesh, UNB news agency reported.

The fund is for implementing the Learning and Innovation Component Program of Local Governance Support Project in the country, to strengthen Union Parishad system, primary tier of local government for local development.

Under the agreement, the United Nations Development Program (UNDP), the United Nations Children's Fund (UNICEF), the European Commission and Danish International Development Agency (DANIDA) will jointly provide the assistance to the government.

In addition to the aid, the government will spend 858.7 million taka (about 12.3 million U.S. dollars) for implementing the program.

Local Government Department of the country will implement the program in 388 union parish ads of six districts of northwestern Sirajganj, northeastern Habiganj, southwestern Satkhira, southeastern Feni, southern Barguna and eastern Narsingdi.

Under the program, the existing capacity of the union parish ads will be raised in providing basic services with a view to eradicating poverty, achieving millennium development goals, improving expenditure management of local government, institutionalizing accountability at local levels, developing organizational structure of union parish ads for human resource development and training, policy formulation and coordination.