Bangladesh: Sustainable Rural Infrastructure Improvement

Sovereign Project | 40515-012

Summary

The focus of the TA will be on preparing a detailed feasibility study of the proposed Sustainable Rural Infrastructure Improvement Project which will include sector analysis, design and monitoring framework, economic and financial analysis, financial management assessment, cost estimates and financing plan. procurement plan, term of reference for consulting services, plan for improving economic opportunities for women and disadvantaged groups, social and environmental safeguards, resettlement framework, selection criteria for subprojects, plan for providing low cost water supply and renewable energy to remote areas, a capacity-building plan for local government institution and LGED, and implementation arrangement

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Project Name Sustainable Rural Infrastructure Improvement
Project Number 40515-012
Country Bangladesh
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7371-BAN: Sustainable Rural Infrastructure Improvement
Japan Special Fund US$ 500,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Agriculture, natural resources and rural development - Agricultural policy, institutional and capacity development
Gender Equity and Mainstreaming Gender equity
Description The focus of the TA will be on preparing a detailed feasibility study of the proposed Sustainable Rural Infrastructure Improvement Project which will include sector analysis, design and monitoring framework, economic and financial analysis, financial management assessment, cost estimates and financing plan. procurement plan, term of reference for consulting services, plan for improving economic opportunities for women and disadvantaged groups, social and environmental safeguards, resettlement framework, selection criteria for subprojects, plan for providing low cost water supply and renewable energy to remote areas, a capacity-building plan for local government institution and LGED, and implementation arrangement
Project Rationale and Linkage to Country/Regional Strategy

Rural infrastructure is needed to realize the full growth potentials of rural Bangladesh, where 75% of the total population and around 85% of the poor live. If planned and implemented properly, with the full participation of the target population, rural infrastructure development can make a significant contribution to poverty reduction in the country. Such rural infrastructure, which includes rural roads, bridges and culverts, growth center markets, and energy, are critical in addressing low rural productivity and low non-farm employment, which are the main factors causing rural poverty in Bangladesh. Based on recent experiences, increased productivity and higher employment lead to more rapid economic growth in the country, resulting in increased supply of goods and favorable prices that benefit the poor. As a result of the improved rural infrastructure, the mobility of the rural poor increases and a healthier and literate rural population gains access to a wide range of off-farm employment opportunities. Rural infrastructure development contributes to rural poverty reduction through a number of ways including (i) the migration of underemployed farm labor to alternative employment opportunities; (ii) the cost-effective transport of produce helps farm producers realize higher farm gate prices; (iii) improved roads enable easy access to rural areas for service providers including healthcare and education; (iv) the additional traffic volume gives rise to transport-related small businesses, such as, service stations, repair shops, food stalls, and guesthouses; (v) construction of project facilities and after construction maintenance generate direct employment for poor; and (vi) poor women have access to new jobs.

ADB has supported the government efforts to develop rural infrastructure through five projects in Bangladesh. The proposed Project will reduce poverty and raise incomes in selected rural districts in northwest of Bangladesh through fostering economic growth, governance and gender equity. The focus will be on widening access to markets and economic opportunities, improving local governance and promoting gender equity in economic opportunities. The design of the Project will be based on the lessons learned and the experience gained from earlier and ongoing support to the rural infrastructure development by various development partners including ADB. The lessons learned from previous projects stress the need for selecting project areas with high connectivity and poverty concentration, greater emphasis on stakeholders' participation in project design and implementation, strengthening local government capacity to manage and maintain rural infrastructure, fostering economic opportunities for poor and disadvantaged women and strengthening Local Government Engineering Department (LGED) in the areas of participatory development, contract management, and financial management. The project components will be assessed and finalized during PPTA implementation and project processing, but it is envisaged (in the Government's draft feasibility report) that these may include improving upazila and union roads, constructing bridges and culverts, improving rural markets, constructing boat landing stage, and institutional strengthening and capacity building of LGED and local government bodies. The feasibility of providing low cost rural water supply and renewable energy to remote rural markets will also be assessed. Based on the experience of the previous and ongoing projects, the sustainability of rural infrastructure has been an issue in respect to financing maintenance. The proposed Project will address sustainable road maintenance including preparing a maintenance plan covering alternative maintenance arrangement involving the private sector and local governments.

Impact The impact (outcome of the ensuing project) will be widened access to markets and economic opportunities. Key performance targets include reduced cost and time for project households to access markets, better access to economic opportunities and social services of poor including disadvantaged women and improved local governance.
Project Outcome
Description of Outcome The outcome of the PPTA will be a project design and feasibility study that the Government and ADB will have agreed upon for a project to be financed by ADB.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs The PPTA will refine and elaborate the draft feasibility study prepared by LGED which will include sector analysis, design and monitoring framework, economic and financial analysis, financial management assessment, cost estimates and financing plan, procurement plan, terms of reference for consulting services, plan for improving economic opportunities for women and disadvantaged groups, social and environmental safeguards, resettlement framework, selection criteria for subprojects, plan for providing low cost rural water supply and renewable energy to remote areas, an appropriate capacity-building plan for local government institutions and LGED, implementation arrangements, and implementation schedule.
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The PPTA will be formulated through a participatory process involving extensive consultations with stakeholders.
During Project Implementation LGED prepared a draft feasibility report which helped in conceptualizing the assistance. Further consultation with Government/beneficiary was conducted during TA fact-finding. These include the Ministries of Finance, Planning, and Local Government, Rural development and Cooperatives of Government of Bangladesh. At the local level, consultations were held with the local administration, union councils, market management committees, transport owners and operators, market users, non-governmental organizations and general people of the project area.
Business Opportunities
Consulting Services

TA will require the following:

1) One international consultant for 5 pm (Rural Infrastructure Economist/Team Leader); and

2) 11 local consultants for 37 pm, all with substantial experience relevant to rural infrastructure development in Bangladesh

a) Rural Infrastructure Engineer/Deputy Team Leader

b) Local Governance Specialist

c) Participatory Development Specialist

d) Resettlement Specialist

e) Poverty Reduction Specialist

f) Gender and Development Specialist

g) Institutional Development Specialist

h) Financial Management Specialist

i) Environment Specialist

j) Rural Water Supply Specialist

k) Renewable Energy Specialist

Responsible ADB Officer Rezaul K. Khan
Responsible ADB Department South Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies
Local Government Engineering DepartmentMr. Md. Wahidur Rahmanwahid113@yahoo.comLGED Bhaban (Level 6), Agargaon
Sher-e-Bangla Nagar,
Dhaka 1207, Bangladesh
Timetable
Concept Clearance 13 May 2009
Fact Finding 21 May 2009 to 28 May 2009
MRM -
Approval 05 Nov 2009
Last Review Mission -
PDS Creation Date 11 Nov 2009
Last PDS Update 14 Mar 2011

TA 7371-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Nov 2009 20 Dec 2009 20 Dec 2009 30 Jun 2010 31 Dec 2010 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 05 Nov 2009 269,156.90
Title Document Type Document Date
Sustainable Rural Infrastructure Improvement Project Initial Poverty and Social Analysis Oct 2010
Sustainable Rural Infrastructure Improvement: Final Report Consultants' Reports Aug 2010

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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