Bangladesh: Dhaka Environmentally Sustainable Water Supply Project – Additional Financing

Sovereign Project | 42173-016

The proposed additional financing will finance cost overruns experienced in the ongoing project and additional scope (tertiary distribution network) to further ensure achievement of project outcome.

Project Name Dhaka Environmentally Sustainable Water Supply Project – Additional Financing
Project Number 42173-016
Country Bangladesh
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0805-BAN: Dhaka Environmentally Sustainable Water Supply Project Additional Financing
Asian Development Fund US$ 5.00 million
Loan 4124-BAN: Dhaka Environmentally Sustainable Water Supply Project - Additional Financing
Concessional ordinary capital resources lending US$ 50.00 million
Loan 4126-BAN: Dhaka Environmentally Sustainable Water Supply Project - Additional Financing
Ordinary capital resources US$ 85.00 million
Loan 8405-BAN: Dhaka Environmentally Sustainable Water Supply Project - Additional Financing
Agence Francaise de Developpement US$ 141.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban sanitation - Urban water supply

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The proposed additional financing will finance cost overruns experienced in the ongoing project and additional scope (tertiary distribution network) to further ensure achievement of project outcome.

The proposed additional financing will cover the remaining works of Package 1, and most of the works of Packages 2 and 3.1 which are scheduled to be awarded by the end of 2020. For Package 2, the contract price (ADB fund) is likely to be around $58.8 million, an increase by around 6% from the cost estimate at the appraisal of the ongoing project, which is within a generally acceptable range. For Package 3.1, the technical bid evaluation report is currently under ADB's review. Large cost increase is not anticipated in this package because the bids were based on detailed design and the nature of works are relatively simple. Government has proposed an additional scope, Package 3.2, with estimated cost of $39.3 million. Issuance of invitation for bid of Package 3.2 is targeted in late September 2020, with contract award targeted in June 2021. Again, large cost increase is not anticipated for this package due to the same reasons as mentioned earlier for Package 3.1. The impact, outcomes, and outputs of the overall project will remain the same as the ongoing project, except for (i) additional indicator for Output 1 for Package 3.2, and (iii) additional Output 4 for the ADF grant.

Project Rationale and Linkage to Country/Regional Strategy The population in Dhaka was around 19.6 million in 2018. It is expected to increase to 28.1 million in 2030, leading to increasing demand for water supply service. Also, average annual ground water depletion in Dhaka in the next 10-12 years is projected to be around 5 meters due to rapid ground water extraction. To address the high dependency on ground water resources, DWASA strategically aims to increase the ratio of surface water resource from current 22% to 70% by end 2021. The overall project is a pivotal investment in DWASA's strategic direction by developing a new surface water supply scheme with Meghna River as water source, which has good water quality and ample quantity even during the dry season. The overall project will also help mitigate the effects of COVID-19 pandemic or other epidemic/pandemic in the future through securing reliable water supply service.
Impact Improved access to and quality of sustainable water supply services in Dhaka
Project Outcome
Description of Outcome More reliable and improved security of water supply and sanitation in Dhaka achieved
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

New surface water supply system developed

Existing distribution network in zone 6 strengthened

DWASA's management and administration capacity improved

Empowerment of women and vulnerable groups in LICs supported

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Dhaka
Safeguard Categories
Environment B
Involuntary Resettlement B
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 All consultant recruitment under the project will adhere to the ADB Procurement Policy (2017, as amended from time to time) and the Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Procurement All procurement of goods and works under the project will adhere to the ADB Procurement Policy (2017, as amended from time to time) and the Procurement Regulations for ADB Borrowers (2017, as amended from time to time).'
Responsible ADB Officer Tada, Momoko
Responsible ADB Department South Asia Department
Responsible ADB Division Urban Development and Water Division, SARD
Executing Agencies
Dhaka Water Supply and Sewerage Authority
98 Kazi Nazrul Islam Avenue,
Kawran Bazar,
Dhaka
Timetable
Concept Clearance 13 Nov 2020
Fact Finding 23 Nov 2020 to 01 Dec 2020
MRM 29 Mar 2021
Approval 11 Oct 2021
Last Review Mission -
Last PDS Update 11 Oct 2021

Grant 0805-BAN

Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.00 Cumulative Contract Awards
ADB 5.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Loan 4124-BAN

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 198.50 Cumulative Contract Awards
ADB 50.00 - 0.00 0.00 %
Counterpart 148.50 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Loan 4126-BAN

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 85.00 Cumulative Contract Awards
ADB 85.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Loan 8405-BAN

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 141.50 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 141.50 - 0.00 0.00 %

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.


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
Dhaka Environmentally Sustainable Water Supply Project - Additional Financing: Community-Based Sanitation Infrastructures in Low-Income Communities of Dhaka Environmental Assessment Review Framework Environmental Assessment and Review Framework Sep 2021
Dhaka Environmentally Sustainable Water Supply Project - Additional Financing: Initial Environmental Examination Initial Environmental Examination Sep 2021
Dhaka Environmentally Sustainable Water Supply Project - Additional Financing: Community-Based Sanitation Infrastructures in Low-Income Communities of Dhaka Resettlement Framework Resettlement Frameworks Sep 2021
Dhaka Environmentally Sustainable Water Supply Project - Additional Financing: Secondary Distribution Pipelines (Package 3.2) Resettlement Plan Resettlement Plans Sep 2021
Dhaka Environmentally Sustainable Water Supply Project - Additional Financing: Environmental Assessment and Review Framework Environmental Assessment and Review Framework Mar 2021
Dhaka Environmentally Sustainable Water Supply Project - Additional Financing: Feeder Pipelines (Package 3.2) Resettlement Plan Resettlement Plans Mar 2021
Dhaka Environmentally Sustainable Water Supply Project - Additional Financing: Community-Based Sanitation Infrastructures in Low-Income Communities of Dhaka Resettlement Framework Resettlement Frameworks Mar 2021
Dhaka Environmentally Sustainable Water Supply Project - Additional Financing: Initial Environmental Examination Initial Environmental Examination Mar 2021

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.