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

Sovereign (Public) Project | 40540-017

Project Name South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1
Project Number 40540-017
Country 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
Ordinary capital resources US$ 250.00 million
Loan 3593-BAN: South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1
concessional ordinary capital resources lending / Asian Development Fund US$ 50.00 million
Loan: South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1
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 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 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.
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) 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
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 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
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 Rahman, Md. Saidur
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Roads and Highways Department
Mr. Md. Fazlul Haque
Sarak Bhaban
Tejgaon, Dhaka-1208
Bangladesh
Timetable
Concept Clearance -
Fact Finding -
MRM 30 May 2017
Approval 16 Nov 2017
Last Review Mission -
Last PDS Update 29 Sep 2020

Loan 3592-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
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%
Counterpart 171.40 Cumulative Disbursements
Cofinancing 242.52 07 Sep 2021 217.67 0.00 87%

Loan 3593-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
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%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 07 Sep 2021 15.95 0.00 32%

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 Access to Information Policy (AIP) 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.

Title Document Type Document Date
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Audited Project Financial Statements (July 2019-June 2020) Audited Project Financial Statements Dec 2020
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 1: Audited Project Financial Statements (July 2017-June 2018) Audited Project Financial Statements Dec 2019
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 – Tranche 1: Audited Project Financial Statements (July 2018-June 2019) Audited Project Financial Statements Dec 2019
South Asia Subregional Economic Cooperation Dhaka–Northwest Corridor Road Project, Phase 2 (Tranche 2): Facility Administration Manual Facility Administration Manual Nov 2019
South Asia Subregional Economic Cooperation Dhaka–Northwest Corridor Road Project, Phase 2 (Tranche 2): Procurement Plan Procurement Plans Jun 2019
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Project Data Sheet (Bangla translation) Translated PDS Mar 2018
Loan Agreement (Ordinary Operations [Concessional]) for Loan 3593-BAN: SASEC Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1 Agreements Nov 2017
Loan Agreement for Loan 3592-BAN: SASEC Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1 Agreements Nov 2017

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
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Environmental Monitoring Report (January-June 2021) Environmental Monitoring Reports Jul 2021
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Improvement of Elenga-Hatikamrul-Rangpur Road Social Monitoring Report (January-June 2021) Social Monitoring Reports Jul 2021
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Improvement of Elenga-Hatikamrul-Rangpur Road External Social Monitoring Report (July-December 2020) Social Monitoring Reports Feb 2021
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Improvement of Elenga-Hatikamrul-Rangpur Road Social Monitoring Report (July-December 2020) Social Monitoring Reports Dec 2020
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Environmental Monitoring Report (July-December 2020) Environmental Monitoring Reports Dec 2020
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Improvement of Elenga-Hatikamrul-Rangpur Road Social Monitoring Report (January-June 2020) Social Monitoring Reports Jun 2020
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Environmental Monitoring Report (January-June 2020) Environmental Monitoring Reports Jun 2020
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Improvement of Elenga-Hatikamrul-Rangpur Road Social Monitoring Report (May-December 2019) Social Monitoring Reports Feb 2020
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Titled Project Affected Households of Hatikumrul to Rangpur Resettlement Plan Resettlement Plans Feb 2020
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Dec 2019
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Improvement of Elenga-Hatikamrul-Rangpur Road Social Monitoring Report (July-December 2019) Social Monitoring Reports Dec 2019
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Non-Titled Affected Persons Packages 1-2 Resettlement Plan Resettlement Plans Sep 2019
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Hatikumrul to Rangpur Resettlement Plan Resettlement Plans Sep 2019
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Improvement of Elenga-Hatikamrul-Rangpur Road Social Monitoring Report (January-June 2019) Social Monitoring Reports Jun 2019
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Environmental Monitoring Report (January-June 2019) Environmental Monitoring Reports Jun 2019
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 – Tranche 1: Improvement of Elenga-Hatikamrul-Rangpur Road Social Monitoring Report (July-December 2018) Social Monitoring Reports Dec 2018
South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 1: Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Dec 2018
South Asia Subregional Economic Cooperation Dhaka Northwest Corridor Road Project Phase 2: Improvement of Elenga-Hatikamrul-Rangpur Road Social Monitoring Report (January-June 2018) Social Monitoring Reports Jun 2018

Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) 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.


Contracts Awarded

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