Projects

Project Information

The Chittagong Hill Tracts Rural Development Project

Borrower

People's Republic of Bangladesh

Project Description

The Chittagong Hill Tracts (CHT) is a unique geographical and cultural section of Bangladesh, with a mix of tribal peoples from 13 distinct groupings, and Bengalis, most of who have recently settled from the adjoining plains' districts. The area has been devoid of significant externally financed development interventions for the last two decades due to a 20-year insurgency, which resulted in a general deterioration in the quality of life of the CHT population. Basic socioeconomic indicators for the CHT reveal a region suffering from both low income and poverty, especially among the rural population. The Project has been designed to contribute to a reduction in the incidence of absolute poverty in the CHT and to provide a confidence-building environment to underpin the 1997 peace accord in which local communities will be empowered to decide on their own development priorities and actively participate in the subsequent investments. The Project will increase employment and income generating opportunities for the population, and result in a general improvement in the quality of life of the target population.

Cost Estimates

The total cost of the Project is estimated at $60.3 million, inclusive of physical and price contingencies, taxes, and duties. The total foreign exchange cost is $11.0 million and the local currency cost is $49.3 million equivalent.

Executing Agency

The Ministry of Chittagong Hill Tracts Affairs

Procurement

Civil works contracts for rural roads and ancillary infrastructure improvement and community development will be awarded on the basis of local competitive bidding procedures among prequalified local contractors in accordance with ADB's Guidelines for Procurement and other government procedures acceptable to ADB. Organized community groups' representatives will participate through the community development committees in selecting contractors and procurement of materials. Vehicles and equipment will be procured through direct purchase for packages not exceeding $100,000 and the rest will be procured through international shopping.

Consulting Services and Technical Support

ADB has approved advance action for the recruitment of consultants and the procurement of equipment and vehicles to facilitate the timely implementation of the Project. The Government has been informed that the approval of advance action does not commit ADB to approve or finance the Project, and does not include retroactive financing. The Government has requested, and ADB agreed, that ADB will assist the Government to carry out the advance action for the recruitment of consultants. A total of 112 person-months of international and 232 person-months of domestic consulting inputs will be required under the Project to support project implementation. NGOs will be contracted for community mobilization, skills training, and capacity building, and to provide microfinance services to village savings and credit organizations. NGOs will be engaged by the PMU on a direct contractual basis.

Estimated Date of Completion

31 December 2008