Project Name Coastal Towns Environmental Infrastructure Project
Project Number 44212-013
Country Bangladesh
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0394-BAN: Coastal Towns Infrastructure Improvement
Strategic Climate Fund US$ 10.40 million
Grant 0395-BAN: Coastal Towns Infrastructure Improvement
Bill and Melinda Gates Foundation US$ 1.60 million
Loan 3133-BAN: Coastal Towns Environmental Infrastructure Project
Asian Development Fund US$ 52.00 million
Loan 8284-BAN: Coastal Towns Infrastructure Improvement
Strategic Climate Fund US$ 30.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Sector / Subsector

Transport - Urban roads and traffic management

Water and other urban infrastructure and services - Other urban services - Urban flood protection - Urban policy, institutional and capacity development - Urban sanitation - Urban solid waste management - Urban water supply

Gender Equity and Mainstreaming Gender equity
Description The project will strengthen climate resilience and disaster preparedness in eight vulnerable coastal pourashavas (secondary towns) of Bangladesh. The project takes a holistic and integrated approach to urban development and will (i) provide climate-resilient municipal infrastructure; and (ii) strengthen institutional capacity, local governance, and public awareness for improved urban planning and service delivery considering climate change and disaster risks. Key infrastructure investments include (i) drainage; (ii) water supply; (iii) sanitation; (iv) cyclone shelters; and (v) other municipal infrastructure including emergency access roads and bridges, solid waste management, bus terminals, slum improvements, boat landings, and markets. Investments will benefit the poor and women.
Project Rationale and Linkage to Country/Regional Strategy

The project is prioritized in the government's Strategic Program for Climate Resilience (2010) under the Pilot Program for Climate Resilience, and will demonstrate new approaches for integrating climate resilience into urban development in coastal pourashavas (with a population of 15,000 to 60,000). The government's Sixth Five-Year Plan, 2011 2015 targets assistance to vulnerable coastal populations requiring investments in climate-resilient infrastructure and urban planning. The project is consistent with the Bangladesh country partnership strategy, which targets assistance to vulnerable coastal areas in adapting to the risks of climate change, and is consistent with the ADB Urban Operational Plan to promote climate-change-resilient cities.

Climate change is a critical development issue for Bangladesh. The country's low-lying coastal zone (consisting of 19 districts with an estimated population of 38.1 million, of which 8.6 million is urban) is highly vulnerable to cyclones, storm surges, sea level rise, and salinity intrusion. A 1.5 C increase in temperature and 4% increase in precipitation (the median projections for Bangladesh from general circulation models) would potentially result in sea levels in the Bay of Bengal rising by 27 centimeters or more by 2050. Warmer temperatures would result in more frequent and intense cyclones and storm surges, damaging roads and bridges and rendering existing drainage, water supply, and sanitation systems ineffective, as well as threatening public health and safety. The central and southwestern regions of the country are particularly vulnerable. Cyclone Sidr in 2007 (a Category 5 storm with wind speed of 260 kilometers per hour) resulted in economic losses of $1.7 billion (2.6% of gross domestic product). The poor and women are disproportionately affected and have the lowest capacity to cope with losses. There is a high demand for climate-resilient infrastructure and disaster preparedness to improve the wellbeing of residents and reduce migration to larger cities.

Coastal towns suffer from large infrastructure deficits and natural resource constraints that exacerbate sensitivity to climate change. A shortage of drains and severe siltation and solid waste build up result in severe flooding and extended water logging (lasting up to 7 days during monsoon rains). Water supply suffers from (i) low access to piped water, (ii) salinity contamination of shallow and middle aquifers, and (iii) unsustainable groundwater extraction. Feasibility study surveys found that residents without piped water supplies who rely on community pond sand filter systems pay as much as 2 4 times more for water of inferior quality compared to similar towns with piped supplies. There is a high willingness to pay (up to 50%more) for improved services. While there is generally high coverage of household sanitation (up to 94% of households have toilets), there is no septage management or treatment systems, resulting in polluted waterways and a high incidence of waterborne diseases, with large outbreaks occurring after disasters. Emergency access roads are in poor condition, and most cyclone shelters are structurally unsafe as a result of extensive exposure to cyclones and poor maintenance. There is an acute need for new, higher-capacity multi-use cyclone shelters located in core urban areas accessible to poorer populations. It is critical that new investments are designed that consider climate change to manage the long-term costs of natural disasters and ensure investments deliver intended benefits.

The high vulnerability of coastal towns is also linked to poor governance and low adaptive capacity. Urban planning is in its infancy and development controls are only now emerging. Many pourashavas lack established mechanisms for public participation, particularly in the allocation of municipal budgets. Low tax collection efficiency (on average 57% in coastal towns) reflects outdated financial management practices, including limited computerization of accounts and billing systems, and irregular tax assessments. There is an urgent need to strengthen institutional capacity, public awareness, and knowledge management to complement physical investments as part of an integrated approach for building climate change resilience.

Impact Improved well-being in coastal towns.

Project Outcome

Description of Outcome Increased climate and disaster resiliency in coastal towns benefiting the poor and women.
Progress Toward Outcome It was made effective in September 2014. Planning and procurement process are on-going.
Implementation Progress
Description of Project Outputs

1. Improved climate-resilient municipal infrastructure

2. Strengthened institutional capacity, governance, and awareness

3. Project management and administration supported

Status of Implementation Progress (Outputs, Activities, and Issues)

Procurement process is in progress

Procurement process is in progress

Bidding started for Amtali Pourashava Water supply system. For other Pourashavas bidding documents are being prepared.

Subprojects have been finalized. Procurement will start in 2016

Subprojects have been finalized. Procurement will start in 2016

Procurement process is in progress

Institutional support consultants are working with project towns towards meeting the performance criteria for receiving the stage 2 funding related to economic infrastructure. Subject to fulfillment of performance criteria subprojects for batch 1 towns will be identified by 2015 and for batch 2 towns by 2016.

Institutional Capacity and Community Development Consultants (ICCDC) have been mobilized and work has started.

Institutional Capacity and Community Development Consultants (ICCDC) have been mobilized and work has started

Institutional Capacity and Community Development Consultants (ICCDC) have been mobilized and work has started

Institutional Capacity and Community Development Consultants (ICCDC) have been mobilized and work has started

Institutional Capacity and Community Development Consultants (ICCDC) have been mobilized and work has started

GAP for the project has been finalized. GAP and PRAP for towns will be developed after the mobilization og Gender Consultants under ICCDC component

Institutional Capacity and Community Development Consultants (ICCDC) have been mobilized and work has started

Institutional Capacity and Community Development Consultants (ICCDC) have been mobilized and work has started

QPR are submitted on time

Ongoing. Will be assessed during mid term and final assessment

Geographical Location

Safeguard Categories

Environment B
Involuntary Resettlement B
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects No significant environmental impacts. IEEs and EARF prepared. EA is providing update in the quarterly progress reports and due to submit semi-annual reports starting from June 2015. For all works packages, IEEs and EMPs are prepared as part of the bidding document.
Involuntary Resettlement No significant environmental impacts. RPs and RF prepared. EA is provising update in the quarterly progress reports and due to submit semi-annual reports starting from June 2015. For all works packages, resettlement plans (RPs) or Due diligence reports as appropriate are prepared as part of the bidding document.
Indigenous Peoples No impacts anticipated.
Stakeholder Communication, Participation, and Consultation
During Project Design A consultation and participation plan prepared.
During Project Implementation A consultation and participation plan prepared.

Business Opportunities

Consulting Services All consultants will be recruited according to ADB's Guidelines on the Use of Consultants (March 2013 as amended from time to time). An estimated 1,413 person-months (110 international and 1,303 national) of consulting services are required. There are two major packages: (i) project management and supervision consultancies, and (ii) institutional capacity and community development consultant will be recruited following the quality- and cost-based selection (QCBS) or quality-based selection (QBS) with a 90:10 ratio.
Procurement All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (March 2013, as amended from time to time). Since this project involves both ADB-administered cofinancing resources and ADF resources, universal procurement will apply.

Responsible Staff

Responsible ADB Officer Elma Morsheda
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Ministry of Local Government, Rural Development, and Co-operatives
Rural Development and Cooperatives
Room 632, Bldg 7
Block-B, Dhaka-1207, Bangladesh
Local Government Engineering Department
SSWRDSP@LGED.ORG
LGED Bhaban (Level 6), Agargaon
Sher-e-Bangla Nagar,
Dhaka 1207, Bangladesh
Department of Public Health Engineering
DPHE Bhaban, 14 Shaheed Captain Mansur
Ali Sarani, Kakrail
Dhaka, Bangladesh

Timetable

Concept Clearance 31 Jul 2012
Fact Finding 01 Sep 2013 to 16 Sep 2013
MRM 28 Oct 2013
Approval 27 Jun 2014
Last Review Mission -
Last PDS Update 30 Mar 2016

Grant 0394-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Jun 2014 29 Jun 2014 19 Sep 2014 31 Dec 2020 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 33.50 Cumulative Contract Awards
ADB 0.00 27 Jun 2014 0.00 2.71 26%
Counterpart 23.10 Cumulative Disbursements
Cofinancing 10.40 27 Jun 2014 0.00 0.89 9%

Grant 0395-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Jun 2014 29 Jun 2014 19 Sep 2014 31 Dec 2020 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1.60 Cumulative Contract Awards
ADB 0.00 27 Jun 2014 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 1.60 27 Jun 2014 0.00 0.00 0%

Loan 3133-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Jun 2014 29 Jun 2014 19 Sep 2014 31 Dec 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 52.00 Cumulative Contract Awards
ADB 52.00 27 Jun 2014 15.90 0.00 33%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 27 Jun 2014 5.94 0.00 12%

Loan 8284-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Jun 2014 29 Jun 2014 19 Sep 2014 31 Dec 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 30.00 Cumulative Contract Awards
ADB 0.00 27 Jun 2014 0.00 8.03 27%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 30.00 27 Jun 2014 0.00 2.61 9%

 
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