40540-016: South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 | Asian Development Bank

Bangladesh: South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2

Sovereign (Public) Project | 40540-016 Status: Active

The project will improve the road connectivity and efficiency of Dhaka-Northwest international trade corridor. To ensure the sustainability of the outcome, an associated technical assistance is proposed to assist the government in updating its master plan for roads and improving its planning capacity.

 
Project Name South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2
Project Number 40540-016
Country Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
MFF Facility Concept 0103-BAN: South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2
Ordinary capital resources US$ 1,150.00 million
concessional ordinary capital resources lending / Asian Development Fund US$ 50.00 million
MFF Facility Concept: South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2
Japan International Cooperation Agency US$ 242.52 million
TA 9408-BAN: Updating the Road Master Plan
Technical Assistance Special Fund US$ 2.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will improve the road connectivity and efficiency of Dhaka-Northwest international trade corridor. To ensure the sustainability of the outcome, an associated technical assistance is proposed to assist the government in updating its master plan for roads and improving its planning capacity.
Project Rationale and Linkage to Country/Regional Strategy

Bangladesh reached lower middle-income status in July 2015. With its young and rapidly growing population, Bangladesh has the potential to become a major exporter of labor-intensive products. Its location between South and Southeast Asia provides the country good prospects of becoming a regional trading hub. But the country's transport infrastructure is inadequate, which raises costs, reduces competitiveness, and impedes intra-regional trade. As such, Bangladesh's successive 5-year development plans embed regional cooperation and integration, which the Asian Development Bank (ADB) supports through its projects in Bangladesh.

Transport infrastructure is the centerpiece of the ADB-supported South Asia Subregional Economic Cooperation (SASEC) program, which promotes regional prosperity. Since 2001, SASEC member countries have invested over $9.17 billion in projects with a regional dimension, including 31 transport projects worth $7.30 billion. SASEC transport investments in Bangladesh and neighboring member countries focus on developing South Asian Association of Regional Cooperation highway corridors. The SASEC Operational Plan, 2016-2025 identified 128 priority regional cooperation and integration transport projects worth about $63 billion - of which 35 are in Bangladesh.

Among the subregional corridors, the government considers the Dhaka-Northwest international trade corridor on South Asian Association of Regional Cooperation highways 4 and 8 as top priorities. The corridor is the second busiest artery in Bangladesh after the Dhaka-Chittagong road. At the northwestern end of the corridor is the Burimari Land Port, which is managed by the Bangladesh Land Port Authority and provides a gateway to Bhutan through India. Improving the transport infrastructure is expected to significantly increase trade in the land port. ADB has been a partner of the government in improving the Dhaka-Northwest international trade corridor since 1994.

In 2012, ADB approved a $198 million loan for the SASEC Road Connectivity Project, which is considered phase 1 of the proposed project, since there is strong correlation between the phase 1 and phase 2 segments of the Dhaka-Northwest international trade corridor. Phase 1 (i) increased road capacity on 70 kilometers (km) of the Joydeypur -Elenga section of the international trade corridor, (ii) improved operational efficiency of the Benapole and Burimari land ports, and (iii) enhanced the institutional capacity of the RHD.

In 2017, the government plans to start phase 2, which is to improve the 190 km section from Elenga through Hatikumrul to Rangpur. The proposed project will continue ADB support to the corridor. To manage the issues faced during phase 1, RHD has (i) set up a project implementation committee to review engineering designs; (ii) obtained government approval for the project proposal in advance to set up project implementation units (PIUs), prepare procurement documents, and initiate safeguard actions; and (iii) requested ADB support to update its Road Master Plan.

Impact

An efficient and modern road transport system in Bangladesh achieved.

Subregional connectivity and trade improved.

Project Outcome
Description of Outcome Road connectivity of the Dhaka-Northwest international trade corridor improved.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Phase 2 of the Dhaka-Northwest international trade corridor (Elenga-Hatikumrul-Rangpur section) upgraded

RHD's institutional capacity in road operation and management enhanced

stronger road safety and gender-responsive features, and cost overrun for phase 1 of the Dhaka-Northwest international trade corridor (Joydeypur-Chandra-Tangail-Elenga) financed and completed.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Chandra, Elenga, Hatikumrul, Jaydebpur, Rangpur, Tangail Sadar
Summary of Environmental and Social Aspects
Environmental Aspects The project is categorized as B as per ADB's Safeguards Policy Statement (SPS) 2009. An initial environmental examination (IEE) report, including an environmental management plan (EMP) for the Elenga- Hatikumrul- Rangpur Road, has been prepared. The other two components of the investment project (i) enhancement of the institutional capacity of the Roads and Highways Department in road operation and management, and (ii) financing of the cost overrun of the project (Phase 1: Joydevpur-Chandra-Tangail-Elenga) did not require the preparation of environmental assessment reports as there are no physical works involved in the first component. For the second component, an IEE report was already prepared during the processing of the Phase 1 project (Loan 2949).
Involuntary Resettlement Given the significant resettlement impacts, the project is categorized as A for involuntary resettlement. The same categorization is expected for the subsequent tranches given that this is an MFF with a time-slice approach and all activities have been appraised upfront.
Indigenous Peoples The project is categorized as C as per ADB''s Safeguard Policy Statement (2009). The alignment does not affect tribal lands, and the survey confirms that no indigenous person is affected. The same categorization is expected for the subsequent tranches given that this is an MFF with a time-slice approach and all activities have been appraised upfront.
Stakeholder Communication, Participation, and Consultation
During Project Design These included 30 public consultation meetings, 15 focus groups discussions, and special consultations in sensitive areas. Moreover, close to 7,000 households were individually surveyed and informed about project impacts. The participatory process helped inform directly affected people and the residents at large about the project, its benefits, and impacts; also allowed for extensive feedback; and ensured that concerns were taken into account in the final design. Overall, people in the project area demonstrated a high level of support for the project.
During Project Implementation TBD
Business Opportunities
Consulting Services A project implementation consultant will be engaged for construction supervision and capacity development.
Procurement The Mission and RHD discussed the procurement plan for the project. RHD proposed to follow the approach of SASEC Road Connectivity Project. A total of 8 to 10 packages of civil works will be procured.
Responsible ADB Officer Lee, Dong Kyu
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Roads and Highways Department
Sarak Bhaban
Tejgaon, Dhaka-1208
Bangladesh
Timetable
Concept Clearance 30 Mar 2017
Fact Finding 16 Apr 2017 to 27 Apr 2017
MRM 30 May 2017
Approval 24 Oct 2017
Last Review Mission -
Last PDS Update 24 Oct 2017

MFF Facility Concept 0103-BAN

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1,915.12 Cumulative Contract Awards
ADB 1,200.00 - 0.00 0.00 %
Counterpart 472.60 Cumulative Disbursements
Cofinancing 242.52 - 0.00 0.00 %

TA 9408-BAN

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
2,000,000.00 0.00 0.00 0.00 0.00 0.00 2,000,000.00 - 0.00

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.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Safeguard Documents See also: Safeguards

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.

Title Document Type Document Date
SASEC Dhaka Northwest Corridor Road Project, Phase 2: Improvement of Elenga-Hatikamrul-Rangpur Road Social Monitoring Report (October 2017–March 2018) Social Monitoring Reports Jun 2018
SASEC Dhaka-Northwest Corridor Road Project, Phase 2: Resettlement Due Diligence Report Safeguards Due Diligence Reports May 2017
SASEC Dhaka-Northwest Corridor Road Project, Phase 2: Elenga-Hatikamrul Road Expansion Initial Environmental Examination Initial Environmental Examination May 2017
ASEC Dhaka-Northwest Corridor Road Project, Phase 2: Hatikamrul Interchange Resettlement Plan Resettlement Plans May 2017
SASEC Dhaka-Northwest Corridor Road Project, Phase 2: Hatikamrul-Rangpur Road Expansion Initial Environmental Examination Initial Environmental Examination May 2017
SASEC Dhaka-Northwest Corridor Road Project, Phase 2: Hatikamrul-Rangpur Road Expansion Resettlement Plan Resettlement Plans May 2017
SASEC Dhaka-Northwest Corridor Road Project, Phase 2: Indigenous Peoples Planning Framework Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks May 2017
SASEC Dhaka-Northwest Corridor Road Project, Phase 2: Resettlement Framework Resettlement Frameworks May 2017
SASEC Dhaka-Northwest Corridor Road Project, Phase 2: Environmental Due Diligence Report Safeguards Due Diligence Reports May 2017
SASEC Dhaka-Northwest Corridor Road Project, Phase 2: Environmental Assessment and Review Framework Environmental Assessment and Review Framework May 2017
SASEC Dhaka-Northwest Corridor Road Project, Phase 2: Elenga-Hatikamrul Road Expansion Resettlement Plan Resettlement Plans May 2017

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
40540-016- South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 Advance Notice Active 06 Mar 2017

Contracts Awarded

No contracts awarded for this project were found