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

Project Name

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

Project Number

40540-017

Country / Economy

• Bangladesh

Project Status

Active

Project Type / Modality of Assistance

• Loan

Source of Funding / Amount

Loan 3592-BAN: South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1

Source	Amount
Ordinary capital resources	US$ 250.00 million

Loan 3593-BAN: South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1

Source	Amount
Concessional ordinary capital resources lending	US$ 50.00 million

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

Source	Amount
Japan International Cooperation Agency	US$ 242.52 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

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

The Achieved Progress of SASEC-2 (awarded contracts) up to March 2023 was 63%.

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)

- 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. TA will be closed on 31 Dec 2023.

Procurement for construction of road research and training center under WP-14 has been awarded on 9 Sep 2021 and road operation unit for road safety maintenance, etc. under WP-15 has been awarded on 7 April 2022 under Loan 3883, tranche-2.

Completed.

Seven contracts (WP-06 to WP-12) have been awarded and contractors have already mobilized. As of 30 September 2023, the Physical progress of these seven packages is : 79.56%,58.02%,72.77%,90.05%,95.10%.

The Achieved Progress of SASEC-2 (awarded contracts) up to September 2023 was 71.02%. 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.

Detailed Design included the safety elements. Will be achieved by the end of the project.

At present, Improvements are ongoing for 176.8 KM of existing road under seven work packages.

Geographical Location

Chandra, Elenga, Hatikumrul, Jaydebpur, Rangpur, Tangail

Safeguard Categories

Environment

B

Involuntary Resettlement

A

Indigenous Peoples

C

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, (ii) and financing of the cost overrun of the project (Phase 1: Joydeypur-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). The semi-annual environmental monitoring report for January - June 2021 reporting period has been prepared, submitted and disclosed. The contractors environmental management plan (CEMP) for all civil works contracts, WP-06 to WP-12, under the project were submitted, reviewed and finalized for implementation RHD has also appointed one Project Manager, as an environmental focal for the project. All the WPs' contractor ensures Environmental management officer (EMO) and Environment Health Safety officer (EHS). The contractors are complying with the regulations of Bangladesh National Building Code (BNBC) regarding safe scaffolding, ladders, working platforms, safe electrification works, gangway, stairwells and safe means of entry and egress; and have established firefighting and safety facilities in the camp. RHD informed that all the contractors have taken measures to reduce noise level and they are regularly monitoring the noise level and checking the source for generation of noise by construction activities, As well as contractors have taken measures to control air quality level and they are regularly monitoring the level, they are spraying water three times to maintain standard air quality and there are no complaints lodged by Department of Environment of the government and by local government authorities. Truck carrying construction materials are being covered as a control to dust. Tree plantations are ongoing at camp sites. Measuring device has been installed in the base camp of WP12 for time-to-time monitoring of the quality of air. The PIC confirmed that air and water quality parameters in all contract's sites are within prescribed limits. Three contracts of the project (WP-10,WP-11 and WP-12) have received the International Safety Awards by British Safety Council for demonstrating a strong commitment to good health and safety management during 2019. All the contractors are concern to maintain GoB and ADB environmental safeguard's rules and policy.

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 a time-slice approach and all activities have been appraised upfront. The Project is Category A for land acquisition and resettlement. The updating of the Resettlement Plan (RP) has been divided into three sections: (i) Elenga-Hatikamrul, (ii) Hatikamrul-Rangpur, and (iii) Hatikamrul Interchange, which has been further split into title-holder and non-title holder, hence the project will have a total of six updated RPs (two RPs, one for title holder and one for non-title holder, for each of the three sections). The RP updating process has been completed for all the three sections: (i) Elenga-Hatikamrul, (ii) Hatikamrul-Rangpur, and (iii) Hatikamrul Interchange, where contract had been awarded and they are now under compliance with ADB requirements. The satisfactory implementation of the RPs is a prerequisite of any civil works in the relevant road section. The project has been submitting monitoring reports on a regular basis.

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

Ongoing

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.

Contact

Responsible ADB Officer

Das, Amrita Kumar

Responsible ADB Department

Sectors Group

Responsible ADB Division

Transport Sector Office (SG-TRA)

Executing Agencies

Roads and Highways Department

Timetable

Concept Clearance

-

Fact Finding

-

MRM

30 May 2017

Approval

16 Nov 2017

Last Review Mission

-

Last PDS Update

30 Nov 2023

Funding

Loan 3592-BAN

Loan 3593-BAN