Project Name Urban Governance and Infrastructure Improvement (Sector)
Project Number 29041-013
Country Bangladesh
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 1947-BAN: Urban Governance and Infrastructure Improvement (Sector)
Concessional ordinary capital resources / Asian Development Fund US$ 60.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Water and other urban infrastructure and services - Urban policy, institutional and capacity development

Gender Equity and Mainstreaming Gender equity

The Project will assist the selected Pourashavas to (i) enhance accountability in municipal management and strengthen capabilities in the provision of municipal services, and (ii) develop and expand physical infrastructure and urban services to increase economic opportunities, and to reduce vulnerability to environmental degradation, poverty, and natural hazards. The Project will also promote the active participation of women citizens in municipal management and services as well as upgrade the conditions of the poorest and most needy groups in the slum area.

The Project comprises three parts: Part A , Urban Infrastructure Improvement, covers the improvement/expansion of (i) roads and bridges, (ii) storm water drainage, (iii) low-cost sanitation, (iv) solid waste management, (v) municipalities (e.g. bus and truck terminals, kitchen markets, and slaughterhouses), and (vi) slum improvement. Under specific circumstances inclusion of water supply rehabilitation schemes will also be considered. Part B, Urban Governance Improvement, includes implementation of an action program in five key result areas: (i) citizen awareness and participation; (ii) women's participation; (iii) integration of the urban poor; (iv) financial accountability and sustainability; and (v) administrative transparency. Pourashavas will need to achieve well-defined performance targets that will be closely monitored and evaluated during project implementation. Part C, Building and Implementation Assistance, covers (i) project management, detailed engineering design, construction supervision, nongovernment organization support to community-based activities, and facilitation of community mobilization; and (ii) institutional capacity-building programs for Pourashavas to successfully implement the UGIAP, including (a) an orientation program for Pourashava chairpersons and ward commissioners, (b) a tailored program for female ward commissioners, (c) training programs for municipal secretaries to implement the community-based activities under the UGIAP, (d) computerization of tax records and billing, (e) computerization of accounting management, (f) infrastructure inventory assessment and mapping, and (g) training for decentralized township planning.

Project Rationale and Linkage to Country/Regional Strategy

The condition of urban infrastructure is in a very poor state of repair, and services are inadequate or nonexistent, all of which is seriously detracting from the communities' quality of life, and restricting their human capital development. In secondary towns, people without access to sanitary facilities range between 30 to 70 percent of the community. Solid waste collection efficiency varies between 6 and 65 percent, with the majority being well below 50 percent. Most urban areas have poor drainage systems, and suffer from localized flooding problems. The living environs are contaminated by uncontrolled organic waste from roadside markets and rudimentary slaughtering areas, and very high air pollution loads from the traffic congestion.

Provide assistance to the urban sector for rehabilitation and expansion of urban development and services in Pourashavas throughout the country, and to further assist in decentralization and strengthening of urban governance.

Impact To promote human development and good urban governance in secondary towns of Bangladesh and support them to lead a sound and balanced urban development.

Project Outcome

Description of Outcome

1. Develop and improve urban infrastructure facilities to increase economic opportunities and to reduce vulnerability to environmental degradation, poverty, and natural hazards.

2. Enhance accountability in municipal management and strengthen the capabilities of urban local municipal service delivery.

Progress Toward Outcome

Infrastructure facilities improvements are progressing well; extensive capacity building and beneficiaries participation across municipalities are improving management of municipal service delivery; and the various key performance targets (citizens and women's participation, integration of the poor, financial accountability/sustainability, and administrative transparency) have been met by most of the 22 selected municipalities in Phase 1 completed in June 2006, and the Phase 2 started in July 2006 for total 30 municipalities (19 qualified from Phase 1, and 11 new including replacement of 3 disqualified).

The Project's overall progress has accelerated. All civil works (roads, drains) of Phase 1 comprising total 102 packages have been completed.

Implementation Progress
Description of Project Outputs

PART A: Urban Infrastructure Improvement

Part B: Urban Governance Improvement

Part C: Capacity Building and Implementation Assistance

Status of Implementation Progress (Outputs, Activities, and Issues) The Project's overall implementation has progressed substantially, including achievements of various performance targets of the UGIAP in key result areas: (i) Citizen Awareness and Participation, (ii) Women?s Participation, (iii) Integration of the Urban Poor, (iv) Financial Accountability and Sustainability, and (v) Administrative Transparency. The midterm review mission (MTR) in August 2006 coincided with successful completion of the Phase 1 activity, and the selection of the 19 Pourashavas qualified from Phase 1 and 11 new Pourashavas (including replacement of the 3 disqualified Phase 1 Pourashavas) for participation in Phase 2 program that started immediately thereafter. The phase 2 activity is progressing satisfactorily, including contract awards for various infrastructure improvements, the UGIAP, and poverty programs by NGOs in slum areas.
Geographical Location Selected secondary towns nationwide

Safeguard Categories

Environment B
Involuntary Resettlement
Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental Aspects

The Project has positive environmental impacts in reducing incidences of various diseases,improving environmental conditions in urban areas, and reducing flooding. The negative impacts will mostly relate to construction activities, which will be temporary, during construction only.

Other potential negative impacts, such as groundwater contamination from sanitary landfills and disposal of sludge from latrines, can be addressed by applying proper environmental andsanitary engineering technologies during the design, construction, and operation stages.

Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholders (affected persons and EAs) consultations were carried out during assessment.
During Project Implementation

Business Opportunities

Consulting Services Consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB. A total of 4,006 person-months of consulting services (59 international and 3,947 domestic) will be required. Five packages of consulting services will be provided under the Project: two for the national UMSU (governance program development, and performance evaluation and monitoring) and three for the PMO (management, design and supervision, monitoring and evaluation, and facilitation of UGIAP activities). The consultants will support the UMSU and PMO/PIUs and will transfer project management and technical skills to the government staff.
Procurement Goods and services will be procured in accordance with ADB's Guidelines for Procurement. Since the contracts for civil works will be small and widely dispersed, international competitive bidding (ICB) is not considered appropriate. Consequently, all the civil works contracts will be procured on the basis of local competitive bidding among prequalified contractors in accordance with the Government's procurement procedures acceptable to ADB. Each supply contract for equipment or materials estimated to cost $500,000 or more will be awarded on the basis of ICB, and those costing less than the equivalent of $500,000 (other than minor items) but more than $100,000 will be awarded on the basis of international shopping. Direct purchase procedures will be used for small or off-the-shelf items valued at less than $100,000.

Responsible Staff

Responsible ADB Officer Islam, Mohammad Nazrul
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Local Government Engineering Department
S.K. Amzad Hossain
LGED, Agargaon, Sher-e-Bangla Nagar, Dhaka-1207


Concept Clearance 06 Jun 2000
Fact Finding 27 Mar 2002 to 29 Mar 2002
MRM 16 Jul 2002
Approval 28 Nov 2002
Last Review Mission -
PDS Creation Date 19 Dec 2006
Last PDS Update 10 Mar 2011

LoanĀ 1947-BAN

Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Nov 2002 03 Feb 2003 25 Aug 2003 31 Dec 2009 31 Dec 2010 08 Dec 2010
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 60.00 Cumulative Contract Awards
ADB 60.00 28 Nov 2002 63.16 0.00 97%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 28 Nov 2002 65.10 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

This page was generated from on 22 February 2017