Bangladesh: South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1

Transport / Road transport (non-urban)

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.

An efficient and modern road transport system in Bangladesh achieved

Subregional connectivity and trade improved

Cost overrun of the contracts awarded under LN2949 have been booked under LN3592:

1) COST OVERRUN OF PCSS#0003 OF LN2949-BAN IMPROVEMENT OF JOYDEVPUR-CHANDRA-TANGAIL-ELENGA RD.2) COST OVERRUN OF PCSS#0004 UNDER LN2949-BAN IMPROVEMENT OF JOYDEVPUR-CHANDRA-TANGAIL-ELENGA RD

3) COST OVERRUN OF PCSS#0005 UNDER LN 2949-BAN IMPROVEMENT OF JOYDEVPUR-CHANDRA-TANGAIL-ELENGA RD.

Progress of the works was about 94% as of 31 August 2021.

Improvements are ongoing for 176.8 KM of existing road under seven work packages .The Achieved Progress of SASEC-2 (awarded contracts) up to August 2021 was 35%

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.

1. At present, Improvements are ongoing for 176.8 KM of existing road under seven work packages. Seven contracts (WP-06 to WP-12) have been awarded and contractors have already mobilized. As of 31 August 2021, the total Physical progress of these seven packages were 38.7%, 27.8%, 23.50%,25.80%, 35.5%,34.20%, 33.50%.

The Achieved Progress of SASEC-2 (awarded contracts) up to August 2021 was 35% which is far behind compared with Targeted Progress 66.87%.

This delayed progress has been occurred due to less intension of the Contractors, small scaled construction, less procurement of the materials, LA issues, delayed shifting of U/G Utilities, un-demolished obstacles and COVID-19 etc.

Bidding for remaining 2 packages under Tranche 2 (L3883) for road improvement is Completed .Recently, WP-05: Elenga Intersection to East Roundabout of Bangabandhu Bridge (13.6 km) and WP-13: Construction of Hatikamrul Interchange have been awarded and both contracts were signed on 22 August 2021.

2. Under Loan 3883: Contract-WP-14 Package: Construction of road research and training center under Loan 3883, tranche-2. has been awarded and signed on 9 September 2021. WP-15:Construction of Road Operation Units (ROU) including related infrastructures, three axle load control stations and Intelligent Transport System (ITS) procurement is ongoing and it is expected to be awarded by December 2021.

- The TA consultant has been engaged under the associated TRTA since September 2019. Progress of the consulting services has been delayed due to COVID-19 outbreak in Bangladesh. The contract completion was extended to 31 December 2021.

3. Progress of the works ( Joydeypur-Chandra-Tangail-Elenga) was about 94% as of 31 August 2021. As a Gender responsive roadway feature 30 lane km of footpath construction work is in progress in the urban locations of the project road and is likely to be completed within December 2021.