Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date
PDS Updated as of 21 Apr 2013

Project Name Urban Governance and Infrastructure Improvement II
Country Bangladesh
Project/Program Number 40559-013
Status Proposed
Geographical Location Approximately 45 pourashavas
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector and/or Subsector Classification Multisector
/ Multisector
Thematic Classification Capacity development
Gender equity
Governance
Gender Mainstreaming Categories Gender equity as a theme

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan2462Asian Development Fund87,000
Counterpart 700
TOTAL US$ 87,700

Safeguard Categories

For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

Environment B
Involuntary Resettlement B
Indigenous Peoples B

Summary of Environmental and Social Issues

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

During Project Design
During Project Implementation

Description

The Second Urban Governance and Infrastructure Improvement (Sector) Project (the Project) supports the improvement of urban governance and of infrastructure and service delivery in pourashavas (secondary towns). The Project adopts the performance-based allocation of investment funds as an incentive mechanism for governance reform. Performance criteria are defined in six key areas of urban governance: (i) citizen awareness and participation, (ii) urban planning, (iii) womens participation, (iv) integration of the urban poor, (v) financial accountability and sustainability, and (vi) administrative transparency. Investment funds will be utilized to improve municipal transport, drainage, solid waste management, water supply, sanitation, municipal facilities, and basic services in slums. The project design is based on the lessons from the ongoing Urban Governance and Infrastructure Improvement (Sector) Project (UGIIP-1).

Project Rationale and Linkage to Country/Regional Strategy

Unplanned and rapid urbanization creates large unmet demand for urban infrastructure and services. Pourashavas have not managed to meet this challenge because of weak governance, limited financial and human resources, and a lack of proper planning. The Asian Development Bank (ADB) has supported urban development with a series of projects. The most important lesson, in particular from the ongoing UGIIP-1, is that the improvement of urban infrastructure and service delivery can be achieved more effectively by linking it with governance reforms and creating a proper incentive mechanism. The performancebased allocation of investment funds creates a strong incentive for pourashavas to reform their governance, and the improved governance ensures the effectiveness and sustainability of the capital investments.

Development Impact

Project Impact: The Project is expected to enhance sustainable human development, economic growth and poverty reduction by enhancing municipal governance and strengthening capacity to deliver municipal services and improving phsycial infrastructure and urban services in 35 secondary towns in Bangladesh.

Project Outcome

Description of Outcome
The expected outcomes will be (i) enhanced capacity of Pourashavas to implement, operate, manage and maintain basic urban services; (ii) increased accountability of Pourashavas towards their citizens; and (iii) improved physcial infrastructure and urban services.
Progress Towards Outcome

Outputs and Implementation Progress

Description of Project Outputs
Component A: Urban Infrastructure and Service Delivery- Developed infrastructure and improved service delivery Component B: Governance Improvement and Capacity Development Enhanced citizen awareness and participation Improved urban planning Enhanced womens participation Enhanced participation of the urban poor Improved accountability and sustainability of pourashava finance Improved administrative transparency and efficiency Component C: Project Management and Implementation Support Effective and operational project management system
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2011 Feb 28
Consulting Services
Consulting services are being provided to support project implementation and strengthen the institutional capacity of the pourashavas and LGED. Major packages are package 1: governance improvement and capacity development, and package 2: management, design, and supervision. Consultants have been selected and engaged in accordance with ADBs Guidelines on the Use of Consultants (2007, as amended from time to time), and the Governments Public Procurement Rules (2008). The firms has been selected using the quality- and cost-based selection method.
Procurement
Procurement of goods and services under the Project are being carried out in accordance with the ADBs Procurement Guidelines (2007, as amended from time to time), and the Governments Public Procurement Rules (2008). National competitive bidding procedures are being followed for works contracted for less than $2.0 million and will be the major mode for civil works contracts, as the subprojects are small. International Competitive Bidding procedures are being followed for procurement of equipment and materials when the estimated cost is more than $500,000 equivalent.
Procurement and Consulting Notices
http://www.adb.org/projects/40559-013/business-opportunities

Timetable

Concept Clearance 08 Mar 2007
Fact-finding 09 Mar 2007 to 21 Mar 2007
Management Review Meeting 19 Aug 2007
Approval 08 Dec 2009
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
Cumulative Disbursements

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 2462 Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory

Contacts and Update Details

Responsible ADB Officer Masayuki Tachiiri (mtachiiri@adb.org)
Responsible ADB Department South Asia Department
Responsible ADB Divisions Bangladesh Resident Mission
Executing Agencies Local Government Engineering Department

Links

Project Website http://www.adb.org/projects/40559-013/main
List of Project Documents http://www.adb.org/projects/40559-013/documents