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

Transport - Urban roads and traffic management

Water and other urban infrastructure and services - Other urban services - Urban flood protection - Urban policy, institutional and capacity development - Urban sanitation - Urban slum development - Urban solid waste management - Urban water supply

The project will strengthen urban governance and improve urban infrastructure and service delivery in 30 pourashavas (municipalities) in Bangladesh. Building upon the successful

implementation of earlier phases, the project will provide investment funds to pourashavas based on their governance performance. The project will develop towns with high growth

potential in an integrated and holistic way both in terms of governance and infrastructure with an aim at making them model towns of the country. In addition to the focused interventions to these towns, the project will roll out application of governance performance criteria linked with fund allocation to all class-A pourashavas in the country.

Urbanization. Rapid urbanization is widening the deficit in infrastructure and services. Although the urban poverty was reduced to 21.3% in 2010, many of the urban poor live in substandard housing conditions and poor infrastructure often in disaster-prone areas.

Urban governance. Pourashavas were characterized by inadequate governance and lack of community participation in the planning, implementation, and management of projects

and programs. There were limited incentives to improve governance in such areas as accountability and transparency, promotion of gender equity, poverty reduction, and financial

management and sustainability. However, with the introduction of a performance-based fund allocation strategy through the urban governance improvement action program (UGIAP) in the Urban Governance and Infrastructure Improvement (Sector) Project (UGIIP) funded by ADB, pourashavas supported under the UGIIP significantly improved their governance.

Urban infrastructure. Pourashavas are struggling to provide their citizens with key services including drinking water supply and sanitation, roads, solid waste management,

drainage systems, and other municipal services such as kitchen markets, street lights, and bus terminals. Although improvements are being made through earlier projects, including the UGIIP, most pourashavas still need significant investment support to improve their service delivery.

Model towns development. The government thus prioritizes (i) improving city governance, (ii) promoting balanced development of urban centers, and (iii) urban resource mobilization in its Sixth Five Year Plan (2011-2015). In line with this policy direction, the project will support 30 pourashavas selected on the basis of (i) population, (ii) population growth between 2001 and 2011, (iii) municipal own-source revenue target, and (iv) population density, with a priority on district headquarter towns (DHTs).

The project is fully consistent with ADB's urban operational plan and Bangladesh country partnership strategy (CPS). The project will address inclusiveness, environmental sustainability, and competitiveness, the three pillars of the urban operational plan. Urban sector is one of the six priority sectors in the CPS, and the project will also address key thematic drivers of the CPS including good governance and capacity development, and gender equity.

1. Municipal infrastructure improved and made gender and climate responsive

2. Improved capacity of pourashavas in urban service delivery, planning, and financial management

3. Project management and administration system in place