Bangladesh: South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1
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.
Rahman, Md. Saidur
South Asia Department
Request for information
|Project Name||South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|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.
An efficient and modern road transport system in Bangladesh achieved
Subregional connectivity and trade improved
|Description of Outcome||Road connectivity of the Dhaka-Northwest international trade corridor improved.|
|Progress Toward Outcome||The procurement for 7 (WP-06 to WP-12) out of 9 civil works packages for road improvement, and recruitment of supervision consultants have been completed under Tranche 1 (L3592/93) of Phase 2 project. The contracts have been awrded and contractors have mobilized. Bidding for remaining 2 packages under Tranche 2 (L3883) for road improvement is ongoing. The overall physical progress of these civil works contracts stood at 7.5%, which is substantially below the target of 18.9% at the end of August 2020. The project has set an ambitious cumulative target of 30% for physical progress by the end of 2020, which is required to overcome the delays and gaps in implementation.|
|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)||A. Seven contracts (WP-06 to WP-12) have been awarded and contractors have already mobilized. The physical progress of these seven contracts are 9.0%, 10.6%, 6.1%,7.1%, 6.1%, 4.9% and 4.6% as of 31 August 2020. Overall Physical progress is 7.5% as of 31 August 2020.The Achieved Progress of SASEC-2 (awarded contracts) up to August, 2020 was 7.5% which is quite low compared to Targeted Progress 18.09%.This minor progress was due to small scale construction, maintenance and protection of traffic, procurement of the materials and COVID-19.Detailed Design included the safety elements. Will be achieved by the end of the project.WP-05: Bid submission deadline extended and closed on 27 Aug 2020; 13 bids received WP-13: Bid submission deadline extended to 7 Sep 2020. 14 bids received. WP-14: Bid submission deadline extended to 24 Sep 2020. 7 bids received. WP-15: Draft bidding doc yet to submit to ADB.|
|Geographical Location||Chandra, Elenga, Hatikumrul, Jaydebpur, Rangpur, Tangail|
|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 2020 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. The contractors are complying with the regulations of Bangladesh National Building Code (BNBC) regarding safe scaffolding, ladders, working platforms, 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, and there is 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 contracts' 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.|
|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 havea 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 two out of three sections: (i) Elenga-Hatikamrul, and (ii) Hatikamrul-Rangpur, where contract had been awarded and they are now under compliance with ADB requirements. The third section is Hatikamrul Interchange, where contract has not been awarded and updating the RPs is under process. .RHD shall not award the works contract for the interchange until the final RP is cleared by ADB. 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|
|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||Rahman, Md. Saidur|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Bangladesh Resident Mission|
Roads and Highways Department
Mr. Md. Fazlul Haque
|MRM||30 May 2017|
|Approval||16 Nov 2017|
|Last Review Mission||-|
|Last PDS Update||29 Sep 2020|
|Approval||Signing Date||Effectivity Date||Closing|
|16 Nov 2017||22 Nov 2017||03 Jan 2018||30 Jun 2021||30 Jun 2022||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||663.92||Cumulative Contract Awards|
|ADB||250.00||07 Sep 2021||234.33||0.00||94%|
|Cofinancing||242.52||07 Sep 2021||217.67||0.00||87%|
|Approval||Signing Date||Effectivity Date||Closing|
|16 Nov 2017||22 Nov 2017||03 Jan 2018||30 Jun 2024||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||50.00||Cumulative Contract Awards|
|ADB||50.00||07 Sep 2021||45.66||0.00||91%|
|Cofinancing||0.00||07 Sep 2021||15.95||0.00||32%|
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|Tender Title||Type||Status||Posting Date||Deadline|
|L3592/3593-BAN: South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1 [MP-3]||Invitation for Bids||Closed||30 Jan 2018||28 Mar 2018|
|Loan No. 40540-BAN: South Asia Subregional Economic Cooperation (SASEC) Dhaka-Northwest Corridor Road Project, Phase 2 [SASEC-II/ICB/MP-2/WP 07/08/09]||Invitation for Bids||Closed||30 Oct 2017||28 Dec 2017|
|Loan No. 40540-BAN: South Asia Subregional Economic Cooperation (SASEC) Dhaka-Northwest Corridor Road Project, Phase 2 [SASEC-II /ICB/MP-1 /WP 05 (LOT 1) and SASEC-II /ICB/MP-1 /WP 06 (LOT 2)]||Invitation for Bids||Closed||20 Jul 2017||18 Sep 2017|
|Contract Title||Approval Number||Contract Date||Contractor||Contractor Address||Executing Agency||Contract Description||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|POLASHBARI UZ HQ TO BORODARGA BUS STAND (27.2 KM)||Loan 3592||24 Apr 2019||CHINA CONST. SEVENTH ENG DIV CORP||108, CHENGDONG ROAD ZHENZHOU CITY CHINA,PEOPLE'SREP.OF||Roads and Highways Department||CONSTRUCTION||63914162.01||7773352.38|
|BORODARGA BUS STAND TO RANGPUR PARKERMORE (23.8 KM)||Loan 3592||24 Apr 2019||CHINA CONST. SEVENTH ENG DIV CORP||108, CHENGDONG ROAD, ZHENGZHOU CITY CHINA,PEOPLE'SREP.OF||Roads and Highways Department||CONSTRUCTION||58793574.33||7165027.26|
|ALA TO POLASHBARI UZ HQ (29.9 KM)||Loan 3592||24 Apr 2019||M/S CHINA CONSTRUCTION SEVENTH ENGINEERING DI||108, CHENGDONG ROAD, ZHENGZHOU CITY CHINA CHINA,PEOPLE'SREP.OF||Roads and Highways Department||CONSTRUCTION||91548638.73||11237619.92|
|WEST ROUNDABLOUT OF BANGABANDHU BRIDGE TO HATIKAMR UL (19.6 KM)||Loan 3592||07 Mar 2019||HEGO-MIR AKHTER JV||91, ZHONGYAN ROAD,ZHENGHOU CITY CHINA,PEOPLE'SREP.OF||Roads and Highways Department||CONSTRUCTION||80363541.89||10296733.72|
|BANANI ROUNDABOUT TO MAKAMTALA (25.3 KM)||Loan 3592||10 Feb 2019||KMC-MONICO JOINT VENTURE||ADABAR DHAKA BANGLADESH||Roads and Highways Department||CONSTRUCTION||88994418.63||10474503.75|
|MIRZAPUR BAZAAR TO BANANI ROUNDABOUT (22.5 KM)||Loan 3592||10 Feb 2019||CPC-TANTIA JV||LALMATIA DHAKA BANGLADESH||Roads and Highways Department||CONSTRUCTION||66667071.63||8161213.44|
|WP-07 HATIKAMRUL TO MIRZAPUR BAZAR (28.3 KM)||Loan 3592||07 Feb 2019||ABDUL MONEM LTD.||MONEM BUSINESS DISTRICT 111BIRUTTAM CR D ATTA ROAD DHAKA 1205 BANGLADESH||Roads and Highways Department||CONSTRUCTION||96011022.26||11838100.40|
|PROJECT IMPLEMENTATION CONSULTANT||Loan 3593||28 Nov 2018||KOREA CONSULTANTS INTERNATIONAL CO. LTD||KOREA KOREA, REPUBLIC OF||Roads and Highways Department||Consulting Services||45965805||45965805|
|PROCUREMENT OF GOODS-SUPPLY OF NEW VEHICLES (11 JE EPS)||Loan 3592||14 Jun 2018||PRAGOTI INDUSTRIES LIMITED||TEJGAON DHAKA BANGLADESH BANGLADESH||Roads and Highways Department||SUPPLY OF GOODS||1189813||1189813|
|COST OVERRUN OF PCSS#0004 UNDER LN2949-BAN IMPROVEMENT OF JOYDEVPUR-CHANDRA-TANGAIL-ELENGA RD (N4)-SASEC-RP/ICB/W-01 (LOT NO. WP-02)||Loan 3592||07 May 2018||AML-HCM JOINT VENTURE||DHAKA BANGLADESH||Roads and Highways Department||CONSTRUCTION||80202946||26767355|
|COST OVERRUN OF PCSS#0003 OF LN2949-BAN IMPROVEMENT OF JOYDEVPUR-CHANDRA-TANGAIL-ELENGA RD (N4)TO A 4LANE HIGHWAY-SASEC-RP/ICB/W-01(LOTWP01)||Loan 3592||07 May 2018||KERYONG-SPECTRA JOINT VENTURE||DHAKA BANGLADESH||Roads and Highways Department||CONSTRUCTION||85608672||26285468|
|COST OVERRUN OF PCSS#0005 UNDER LN 2949-BAN IMPROVEMENT OF JOYDEVPUR-CHANDRA-TANGAIL-ELENGA RD (N4) TO 4LANE HIGHWAY-SASEC-RP/ICB/W-01 (LOT WP03)||Loan 3592||07 May 2018||SAMWHAN-MIR AKHTER JOINT VENTURE||DHAKA BANGLADESH||Roads and Highways Department||CONSTRUCTION||81835826||23321260|
|Title||Document Type||Document Date|
|South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 – Tranche 1: Loans 3592/3593 Procurement Plan||Procurement Plans||Apr 2020|
|South Asia Subregional Economic Cooperation Dhaka–Northwest Corridor Road Project, Phase 2 (Tranche 2): Procurement Plan||Procurement Plans||Jun 2019|