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

Sovereign Project | 40540-018

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 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

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) 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. 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 and14 bids received. WP-14: Bid submission deadline extended to 24 Sep 2020. And 7 bids received. WP-15: Draft bidding doc yet to submit to ADB.
Geographical Location Nation-wide, Dhaka, Dhaka
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is categorized '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 '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 '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 A total of 176 focused group discussions (FGDs) and 138 public consultations meetings were facilitated in Tangail, Sirajgonj, Bogura, Gaibandha and Rangpur districts under ongoing works contracts. The consultations were opportunities to explain to the participants that the processing of compensation has been initiated particularly for the ones covered under the non-title RP. The project has been communicating and collaborating with the relevant local government stakeholders for conducting community awareness raising programs which is expected to start by September 2020. Till August total 475 civil workers of whom 90 (19.0%) were women received the training on the prevention of STD, HIV/AIDs human trafficking, hand wash, use of mask and corona virus
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
Mr. Md. Fazlul Haque
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 30 Sep 2020

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 29 Sep 2021 405.23 0.00 96%
Counterpart 99.59 Cumulative Disbursements
Cofinancing 0.00 29 Sep 2021 38.12 0.00 9%
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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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.


Evaluation Documents See also: Independent Evaluation

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Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Improvement of Hatikamrul Intersection by a Modified Cloverleaf Interchange along with Slow Moving Vehicular Traffic (SMVT) Lane, Highway Service Area & Pertinent Structures Loan 3883 26 Aug 2021 China Railway Construction Bridge Engineering Bureau Group Co. Ltd. | No. 32, West Zhonghuan Road, Pilot Free Trade Zone (Airport Economic Area), Tianjin. Bangladesh Office: House No.7/A, Road No. 49, Gulshan-2, Dhaka Roads and Highways Department 87,419,820.66 60,070,296.40
Improvement of Road from Elenga to Bangabandhu Bridge (East Side) (13.60km) to a 4-Lane Highway along with Slow Moving Vehicular Traffic (SMVT) Lane & Structure Loan 3883 24 Aug 2021 Abdul Monem Ltd. | Monem Business District, 111, Bir Uttam C.R. Datta Road (Sonargaon Road), Dhaka-1205 Roads and Highways Department 70,668,304.80 49,924,952.48