fbpx 40540-018: South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2-Tranche 2 | Asian Development Bank

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

Sovereign (Public) Project | 40540-018 Status: Active

The project will improve the road connectivity of the Dhaka-Northwest international trade corridor. This is a time-slice multitranche financing facility with the project outputs to be achieved when all of the phased tranches have been completed. Tranche 2 will finance the following works and services of outputs (i) and (ii).

(i) Under output 1, Tranche 2 will finance the second slice of the expenditures related to works for upgrading of the Elenga-Hatikamrul-Rangpur Road (190 km) of the Dhaka-Northwest international trade corridor from two-lane carriageways to four-lane carriageways and two slow-moving vehicular traffic lanes, and finance the first slice of the expenditures in relation to works for construction of Hatikamrul Interchange.

 
Project Name South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2-Tranche 2
Project Number 40540-018
Country Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3883-BAN: South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2-Tranche 2
Ordinary capital resources US$ 398.38 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 of the Dhaka-Northwest international trade corridor. This is a time-slice multitranche financing facility with the project outputs to be achieved when all of the phased tranches have been completed. Tranche 2 will finance the following works and services of outputs (i) and (ii).

(i) Under output 1, Tranche 2 will finance the second slice of the expenditures related to works for upgrading of the Elenga-Hatikamrul-Rangpur Road (190 km) of the Dhaka-Northwest international trade corridor from two-lane carriageways to four-lane carriageways and two slow-moving vehicular traffic lanes, and finance the first slice of the expenditures in relation to works for construction of Hatikamrul Interchange.

(ii) Under output 2, Tranche 2 will finance the first slice of the expenditures related to works for (a) construction of road research and training center (RRTC) to enhance institutional capacity of RHD, and (b) establishment of road operation units (ROU) for road operation and management, and finance consulting services for traffic data collection and transport model development to update the Road Master Plan in connection with the attached technical assistance.

Project Rationale and Linkage to Country/Regional Strategy

The government has three main policy documents for the road subsector: (i) the Seventh Five Year Plan, FY2016-FY2020, (ii) the Road Master Plan, and (iii) the National Integrated Multimodal Transport Policy. Guided by these policies, the government is gradually upgrading the main corridors to facilitate international trade with and between Bhutan, India, Myanmar, and Nepal. However, the human, technical, and financial resource limitations of road agencies have hindered progress in eliminating the issues caused by limited road capacity, deteriorated conditions, and the mixture of slow- and fast-moving traffic. The Seventh Five Year Plan aims for a well-maintained, cost-effective, durable, and safe road network. Among the SASEC corridors, the government considers the Dhaka-Northwest international trade corridor as a priority. At the northwestern end of the corridor is the Burimari Land Port that provides a gateway to Bhutan through India. The trade volume at the land port was between 0.25 million and 1.0 million tons per year from FY2013 to FY 2016, 4.5 million tons in FY2017, and 7.4 million tons in FY2018. Improving the transport infrastructure of the corridor is required to support significantly increasing trade at the land port.

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 Asia 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 supports through its projects in Bangladesh.

Impact (i) An efficient and modern road transport system in Bangladesh achieved, and (ii) 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

Elenga-Hatikumrul-Rangpur Road of the Dhaka-Northwest international trade corridor upgraded

RHD's institutional capacity in road operation and management enhanced.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide, Dhaka, Dhaka
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services An estimated 129 person months (54 international, 75 national) of consulting services are required for traffic data collection and transport model development to update the Road Master Plan. An international consulting firm is engaged using the quality- and cost-based selection method with a quality cost ratio of 90:10, following ADB's Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). A higher quality ratio is adopted because the task involves a higher level of innovativeness to develop computer-based transport models with RHD Bangladesh Road Research Laboratory.
Procurement All procurement of goods and works is undertaken in accordance with ADB's Procurement Guidelines (2015). Contracts for civil works for Tranche 2 comprise 3 packages including (i) Construction of Hatikamrul Interchange, (ii) Construction of RRTC, and (iii) establishment of ROU.
Responsible ADB Officer Rahman, Md. Saidur
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Roads and Highways Department
Sarak Bhaban
Tejgaon, Dhaka-1208
Bangladesh
Timetable
Concept Clearance -
Fact Finding -
MRM 19 Sep 2019
Approval 06 Dec 2019
Last Review Mission -
Last PDS Update 06 Dec 2019

Loan 3883-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Dec 2019 15 Mar 2020 08 Jun 2020 31 Dec 2023 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 497.97 Cumulative Contract Awards
ADB 398.38 06 Dec 2019 275.67 0.00 65%
Counterpart 99.59 Cumulative Disbursements
Cofinancing 0.00 06 Dec 2019 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - -

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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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