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.

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

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.

Implementation Progress

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

Safeguard Categories

Environment: B
Involuntary Resettlement: B
Indigenous Peoples: B

Status of Covenants

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.

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