Bangladesh: Second Urban Governance and Infrastructure Improvement (Sector) Project

Sovereign Project | 40559-013 Status: Approved

Summary

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).

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Project Name Second Urban Governance and Infrastructure Improvement (Sector) Project
Project Number 40559-013
Country Bangladesh
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Loan 2462-BAN: Second Urban Governance and Infrastructure Improvement (Sector) Project
Asian Development Fund US$ 87.00 million
Grant: Second Urban Governance and Infrastructure Improvement (Sector) Project
Germany (w/ LoA) US$ 4.70 million
Grant: Second Urban Governance and Infrastructure Improvement (Sector) Project
KfW Grant US$ 36.10 million
Strategic Agendas Environmentally sustainable growth
Drivers of Change Governance and capacity development
Sector / Subsector

Water and other urban infrastructure and services - Other urban services - Urban flood protection

Gender Equity and Mainstreaming Gender equity
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
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 Toward Outcome Project implementation is on schedule and outcomes are being achieved. Loan has been physically closed in 30 June 2015, and financial closing is in progress. It started with 35 Pourashavas (PS) and ended up with 47 PSs in three phases. The PSs gained enhance capacity through implementation of Urban Governance Improvement Action Program
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)

The umbrella of Component A mainly entailed Urban Infrastructure and Service Delivery. More precisely, it involved effecting Developed Infrastructure and Improved Service Delivery in all participating PSs by 2015.

Further detailing of component A, in terms of physical Infrastructure elements included the following: a)Urban Transport, b) Drainage, c) Solid Waste Management (SWM), d) Water Supply (WS) , e) Sanitation, f) Municipal facilities, and g) Basic Services in slums. A total of 500 packages have been implemented. The sector-wise packages were: Urban Transport - 327 (Ph2 -202 & Ph3 -125), Drain- 57 ( Ph2-51 & Ph3- 6); WS - 9 (Ph-2), Sanitation - 18 (Ph2); Municipal Facilities - 42 (Ph2-32 & Ph3-10), SWM - 18 (Ph2) and Slum Improvement -29 (Ph2-21 & Ph3-8). In phase 2, 1,746 schemes (351 pckgs) were implemented in 35 PSs, while in Phase 3, 1,121 schemes (149 pckgs) were completed in 47 PSs.

Component B, GICD is one of the three principal components of UGIIP-2, had basically been the software part of the project, mainly focusing capacity raising of the project PSs and concurrently putting in place good governance elements at the heart of these service-providing entities. GICD's efforts were to improve on governance fronts and as well, develop capacity of the PSs through preparing Pourashava Development Plan (PDP) in Phase-I and in totality, carry out a series of reform activities in six key areas defined in the stipulations of Urban Governance Improvement Action Programme (UGIAP). The stated stipulations in Phase-II & III of UGIIP-2 were of more expanded nature and requirements. The six key areas had been: 1. Citizen Awareness and Participation, 2. Urban Planning, 3. Women s Participation, 4. Integration of the Urban Poor, 5. Financial Accountability and Sustainability; and 6. Administrative Transparency. For this 7 (seven) broad set of activities have been performed. They comprised formulating/introducing: a) TLCC (Town Level Coordination Committee); b) WLCC (Ward Level Coordination Committee); c) CBO (Community Based Organization); d) GC (Gender Committee) [chaired by WWC]; e) EstablishingTPU (Town Planning Unit); f) Formulating PDP (Pourashava Development Plan); and g) Continuing mid term holding tax collection .

The initial impression is that the impacts have been overall very positive, but possibly to all targets have been fully achieved. The feed-back received from the local population was extremely positive, not only for the investment measures, but also for the improved governance, and in particular the GAP.

Cumulative Progress up to 30 June, 2015: Physical 99.18 %, Financial 99.18%.

Geographical Location Approximately 45 pourashavas
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects No adverse environmental impact was reported so far. Ongoing drainage, solid watse management activities, improvement of dilapated raods, slum improvement, etc. have made positive contribution to improved environment. Necessary measures are being taken for any adverse impact through properly locating, planning, and design proposed subprojects; controlling construction activity; properly maintaining systems following commissioning; and other mitigation measures. The principal cumulative, regional, and long-term environmental impacts are expected to be beneficial. To ensure compliance with the Governments and ADBs environmental guidelines and requirements, an environmental assessment review procedure and subproject environmental selection guidelines to guide the implementation is being followed. The Project strengthens citizens participation through the formation of Town-Level Coordination Committees (TLCCs) and Ward-Level Coordination Committees (WLCCs) with broad representation, including the poor and women. All subprojects to be funded under the Project are being selected in a participatory manner to ensure that benefits are shared by a broad range of socioeconomic groups.
Involuntary Resettlement No major involuntary resettlement was required except some minor temporary dislocation of road side shops. These dislocations were mainly done in agreement with the owners and they are either compensated or voluntarily agreed for the time being during construction.
Indigenous Peoples There was no incidence of affecting indigenous peoples or communities of ethnic minorities reported under the project. An indigenous peoples development framework is in place that includes the project (a) background, (b) objectives, (c) strategy to ensure the participation of indigenous peoples, (d) strategy to ensure project benefits for indigenous peoples and mitigation measures for adverse impacts, (e) institutional arrangements, (f) budget for formulating and implementing an indigenous peoples development framework, and (g) programs for monitoring and evaluation.
Stakeholder Communication, Participation, and Consultation
During Project Design The Project applies a participatory approach with parallel activities: stakeholder consultations, socioeconomic surveys, and initiation of PDPs by means of open, facilitated sessions for ward and pourashava visioning or planning. A wide range of stakeholders had the opportunity to make substantive ontributions concerning existing conditions and preferences. Within a given community, about 1,200 people have been exposed to the concept of the Project by their direct involvement and through citizens groups and ward committees. Public consultations on social safeguards were held in each of the pourashavas for phase 1 of the Project.4 A project brief was prepared for each pourashava that provided an overview of potential resettlement impacts and explained roposed entitlement for affected people. Participants came from the communities directly affected by the projects, members of ward committees, representatives of local NGOs, and representatives of local government agencies. No significant issues were raised during public consultations that have not been addressed in the resettlement plans, nor were there issues that pose a significant constraint on the implementation of proposed subprojects. A ramework for consultations and community participation has been described in the resettlement framework for continuing the process during implementation. All resettlement plans and other relevant documents are made available at public locations in the towns and are disclosed to a wider audience via the ADB website.
During Project Implementation Grievances of affected people are being addressed by establishing a regulary instaitutional structure at each pourashava. Grievance Redress Cells (GRCs) are established and in most of the pourashavas a one-point service desk is also created to help the citizens particulalrly the poor people. GRCs are comprise representatives from the PIU, implementing NGO, office of the chairman of the pourashava, affected people, and a female elected member of the Pourashava council. Complaints are registered and resolved regulalrly. The GRC procedure includes an appeals procedure for the affected person, who can, if not satisfied with the GRC decision, attend the next meeting for reconsideration. Grievances not redressed by the GRC will be addressed by the project steering committee or, for grievances related to land acquisition, by the Office of the District Commissioner. Further grievances will be referred by affected people to the appropriate courts of law. Records will be kept of all grievances received, including the contact details of complainant, date that the complaint was received, nature of grievance, agreed corrective actions, date these were effected, and final outcome.
Business Opportunities
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.

Responsible ADB Officer Md. Shahidul Alam
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Local Government Engineering Department
Md. Nurullah
pd.ugiip2@yahoo.com
LGED Bhaban, Level 12, Agargaon, Dhaka-1207
Timetable
Concept Clearance 08 Mar 2007
Fact Finding 09 Mar 2007 to 21 Mar 2007
MRM 19 Aug 2007
Approval 28 Oct 2008
Last Review Mission -
PDS Creation Date 04 Apr 2008
Last PDS Update 16 Sep 2015

Loan 2462-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Oct 2008 04 Nov 2008 19 Nov 2008 30 Jun 2015 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 87.70 Cumulative Contract Awards
ADB 87.00 28 Oct 2008 82.05 0.00 98%
Counterpart 0.70 Cumulative Disbursements
Cofinancing 0.00 28 Oct 2008 82.39 0.00 98%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Safeguard Documents

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Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents

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Related Publications

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