Bangladesh : South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 (Tranche 3)

Sovereign Project | 40540-019

On 24 October 2017, the Asian Development Bank (ADB) Board of Directors approved a multitranche financing facility (MFF) of $1,200 million to the People's Republic of Bangladesh for the South Asia Subregional Economic Cooperation (SASEC) Dhaka-Northwest Corridor Road Project, Phase 2. The executing agency is the Roads and Highways Department (RHD) of the Ministry of Road Transport and Bridges. The project improves the road connectivity of the Dhaka-Northwest international trade corridor. Three outputs will be delivered: (i) Elenga-Hatikamrul-Rangpur Road of the Dhaka-Northwest international trade corridor upgraded; (ii) RHD's institutional capacity in road operation and management enhanced; and (iii) road safety and gender-responsive features strengthened, and the cost overrun financed for the Joydeypur-Chandra-Tangail-Elenga Road of the Dhaka-Northwest international trade corridor under the SASEC Road Connectivity Project. The availability period of the MFF is up to 31 August 2027.

Project Name South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 (Tranche 3)
Project Number 40540-019
Country / Economy Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4389-BAN: South Asia Subregional Economic Cooperation Dhaka-Northwest Corridor Road Project, Phase 2 - Tranche 3
Ordinary capital resources US$ 300.00 million
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP5: Promoting rural development and food security
OP6: Strengthening governance and institutional capacity
OP7: Fostering regional cooperation and integration
Sector / Subsector

Transport / Road transport (non-urban)

Gender Effective gender mainstreaming
Description

On 24 October 2017, the Asian Development Bank (ADB) Board of Directors approved a multitranche financing facility (MFF) of $1,200 million to the People's Republic of Bangladesh for the South Asia Subregional Economic Cooperation (SASEC) Dhaka-Northwest Corridor Road Project, Phase 2. The executing agency is the Roads and Highways Department (RHD) of the Ministry of Road Transport and Bridges. The project improves the road connectivity of the Dhaka-Northwest international trade corridor. Three outputs will be delivered: (i) Elenga-Hatikamrul-Rangpur Road of the Dhaka-Northwest international trade corridor upgraded; (ii) RHD's institutional capacity in road operation and management enhanced; and (iii) road safety and gender-responsive features strengthened, and the cost overrun financed for the Joydeypur-Chandra-Tangail-Elenga Road of the Dhaka-Northwest international trade corridor under the SASEC Road Connectivity Project. The availability period of the MFF is up to 31 August 2027.

The MFF comprises four tranches, finances slices of long-term contract packages. Each tranche finances slices of a group of contracts per the indicative tranche schedule, and the amount for each tranche is requested based on disbursement progress and projection. Preconstruction activities such as land acquisition, resettlement, and procurement were implemented in the first 3 years of the project. Tranche 1, comprising a regular ordinary capital resources (OCR) loan of $250 million and a concessional OCR loan of $50 million, financed the first slice of the project and was closed in Jan 2023. Tranche 2 comprising a regular ordinary capital resources (OCR) loan of $398.38 million was approved in Dec 2019 and is ongoing; finances the second slice of the project. The government requested $300 million loan for tranche 3, same as the original amount requested during project inception.

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, fiscal year (FY) 2016-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 road 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 FY2016, 4.5 million tons in FY2017, and 7.4 million tons in FY2018. Improving the transport infrastructure of the corridor is required to support the significantly increasing trade at the land port.
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
Implementation Progress
Description of Project Outputs

Elenga-Hatikamrul-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 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 Consulting contracts are being financed under Tranche 1.
Procurement Contracts already awarded under Tranche 1.
Responsible ADB Officer Das, Amrita Kumar
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission (BRM)
Executing Agencies
Ministry of Road Transport and Bridges
Roads and Highways Department
Timetable
Concept Clearance -
Fact Finding -
MRM 03 Aug 2023
Approval 20 Nov 2023
Last Review Mission -
Last PDS Update 02 Dec 2023

Loan 4389-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Nov 2023 28 Nov 2023 10 Dec 2023 30 Jun 2026 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 461.50 Cumulative Contract Awards
ADB 300.00 05 Feb 2024 278.85 0.00 93%
Counterpart 161.50 Cumulative Disbursements
Cofinancing 0.00 05 Feb 2024 24.92 0.00 8%

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

None currently available.


Related Publications

None currently available.


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Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
WP-07: HATIKAMRUL TO MIRZAPUR BAZAR (28.3 KM) Loan 4389 13 Dec 2023 ABDUL MONEM LTD. | MONEM BUSINESS DISTRICT, 111, BIR UTTAM C.R. DATTA ROAD, (SONARGAON ROAD), DHAKA Roads and Highways Department 52,195,806.93 52,195,806.93
WP-12: BORODARGA BUS STAND TO RANGPUR PARKEMORE (23.8 KM) Loan 4389 13 Dec 2023 CHINA CONSTRUCTION SEVENTH ENGINEERING DIVISION CORP. LTD. | 108, CHENGDONG ROAD, ZHENGZHOU CITY Roads and Highways Department 15,987,075.26 15,987,075.26
WP-11: POLASHBARI UZ HQ TO BORODARG BUS STAND (27.2 KM) Loan 4389 13 Dec 2023 CHINA CONSTRUCTION SEVENTH ENGINEERING DIVISION CORP. LTD. | 108, CHENGDONG ROAD, ZHENGZHOU CITY Roads and Highways Department 19,806,267.33 19,806,267.33
WP-09: BANANI ROUNDABOUT TO MAKAMTALA (25.3 KM) Loan 4389 13 Dec 2023 KMC-MONICO JV | ADABAR, DHAKA Roads and Highways Department 33,167,458.41 33,167,458.41
WP-08: MIRZAPUR BAZAAR TO BANANI ROUNDABOUT (22.5 KM) Loan 4389 13 Dec 2023 CPC-TANTIA JV | LALMATIA, DHAKA Roads and Highways Department 35,300,166.51 35,300,166.51
WP-13: CONSTRUCTION OF HATIKAMRUL INTERCHANGE Loan 4389 13 Dec 2023 CHINA RAILWAY CONSTRUCTION BRIDGE ENGINEERING BUREAU GROUP CO. LTD. | NO. 32, WEST ZHONGHUAN ROAD, PILOT FREE TRADE ZONE (AIRPORT ECONOMIC AREA), TIANJIN Roads and Highways Department 36,036,084.30 36,036,084.30
WP-06: WEST ROUNDABOUT OF BANGABANDHU BRIDGE TO HATIKAMRUL (19.8 KM) Loan 4389 13 Dec 2023 HEGO-MIR AKHTER JV | 91, ZHONGYAN ROAD, ZHENGHOU CITY Roads and Highways Department 38,985,276.44 38,985,276.44
WP-10: MOKAMTALA TO POLASHBARI UZ HQ (29.9 KM) Loan 4389 13 Dec 2023 CHINA CONSTRUCTION SEVENTH ENGINEERING DIVISION CORP. LTD. | 108, CHENGDONG ROAD, ZHENGZHOU CITY Roads and Highways Department 40,513,527.48 40,513,527.48
WP-15: ESTABLISHMENT OF ROAD OPERATIONS UNITS Loan 4389 14 Dec 2023 NDE-FHTTCL JOINT VENTURE | HOUSE NO. 22, ROAD NO. 04, BLOCK C, BANANI, DHAKA 1213, BANGLADESH Roads and Highways Department 7,009,383.21 7,009,383.21