Bangladesh: Padma Multipurpose Bridge Design Project (Supplementary Loan)

Sovereign Project | 35049-033

Summary

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Project Name Padma Multipurpose Bridge Design Project (Supplementary Loan)
Project Number 35049-033
Country Bangladesh
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2593-BAN: Padma Multipurpose Bridge Design Project (Supplementary Loan)
Asian Development Fund US$ 10.00 million
Loan: Padma Multipurpose Bridge Design Project (Supplementary Loan)
World Bank US$ 1.50 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming
Description tbd
Project Rationale and Linkage to Country/Regional Strategy

The ongoing Padma Multipurpose Bridge Design Project is to develop the detailed design for the Padma bridge, which is one of the Bangladesh Government's top priority projects. The original TA loan for the Project was approved in Dec 2007 for Special Drawing Rights 11,179,000 ($17.6m equivalent). Apart from the initial delay to engage the design consultants, project implementation has been smooth with strong support from the Government and other development partners.

The ensuing investment project to construct the Padma bridge is included in the 2009-2011 country operations business plan for Bangladesh as a firm loan. Four major potential cofinanciers (ADB, IsDB, JICA, and WB) are involved in reviewing the Project's progress and developing the ensuing project.

The Project's cost overrun is mainly due to underestimation of the cost of the design consultant's inputs, including remuneration and cost of field surveys and studies.

The initial cost of the design consultant, arrived at by strictly following ADB's quality-based selection, was $2.3m higher than the estimate.

Since its mobilization in Feb 2009, the design consultant has carried out, as part of its terms of reference, a fresh assessment of the requirements for field surveys and studies to develop the detailed design. The original budget allocation under the design consultant's contract for these cost items is now considered to be grossly insufficient with a fund shortage of about $6.4m. Though the cost increase is significant, these surveys and studies are essential for preparing an engineering design with due consideration to economy, effectiveness, constructability, functionality, ease in operation and maintenance, and sustainability of the ensuing project.

The cost overrun, under the design consultant's contract, has been ongoing since January 2009. The Government requests that ADB continue to finance the cost overrun for the following reasons: (i) switching funding sources of an ongoing contract would disrupt the design consultant's activities, and may result in significant delay in completion of the detailed design; (ii) the Government does not have readily available funding to accommodate the identified cost increase; and (iii) without external financiers' involvement, lack of proper guidance in the appointment of specialized subconsultants to carry out the surveys and studies and the use of funds by the subconsultants could compromise the quality of these surveys and studies.

Impact Project preparation for an investment loan to construct the Padma bridge facilitated
Project Outcome
Description of Outcome Detailed design of the Padma bridge and other auxiliary works agreed by the Government and ADB
Progress Toward Outcome Project fully disbursed and financially closed on 6 November 2012.
Implementation Progress
Description of Project Outputs

Scheme designs

Technical studies

Detailed design

Tender action

Environmental impact assessment

Resettlement plan

Land acquisition plan

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

Detailed design of all the Padma Bridge components have been completed.

Project fully disbursed and financially closed on 6 November 2012.

Geographical Location The Padma Bridge separates the southwest zone of Bangladesh from other parts of the country, especially from the north central zone, where Dhaka is located.
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design tbd
During Project Implementation tbd
Business Opportunities
Consulting Services

Three sets of consulting services were to be engaged under the original TA loan.

(i) Design consultants. ADB conducted recruitment of the design consultants using quality-based selection up to the stage of technical ranking. The request for proposal was issued in March 2008, 6 months later than in the original plan. This was mostly due to additional time required to fine-tune the terms of reference (TOR). In July 2008, ADB provided BBA with the technical ranking. Contract negotiations began in September 2008 and concluded in January 2009. The design consultants were mobilized in February 2009, and have been producing deliverables in a timely manner.

(ii) Checking engineers. The design consultants have developed outline TOR for the checking engineers, and BBA is starting the consultant recruitment processes. The engineers are expected to be appointed by January 2010.

(iii) POE. Due to the higher costs for the design consultants, not enough loan financing remained to fund the POE when recruitment was to take place. The POE was to be appointed immediately after mobilizing the design consultants to guide BBA on various technical matters arising from the design consultants' study. The World Bank is currently financing the POE under a $3 million project preparatory facility. This change in funding sources has been processed separately as a change in implementation arrangements. The POE has been meeting monthly since early July 2009 to review and comment on deliverables by the design consultants.

Procurement None for civil works or equipment.
Responsible ADB Officer Witoon Tawisook
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Bangladesh Bridge AuthorityMd. Rafiqul IslamSetu Bhaban, New Airport Road, Banani, Dhaka 1212, Bangladesh
Timetable
Concept Clearance 17 Aug 2009
Fact Finding 09 Mar 2009 to 22 Mar 2009
MRM 31 Aug 2009
Approval 02 Dec 2009
Last Review Mission -
PDS Creation Date 24 Nov 2009
Last PDS Update 24 Jan 2013

Loan 2593-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Dec 2009 07 Dec 2009 23 Jun 2010 31 Aug 2011 31 Aug 2012 06 Nov 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 12.70 Cumulative Contract Awards
ADB 10.00 02 Dec 2009 9.78 0.00 100%
Counterpart 1.20 Cumulative Disbursements
Cofinancing 1.50 02 Dec 2009 9.78 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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