Bangladesh : Subregional Transport Project Preparatory Facility

Transport / Rail transport (non-urban) - Road transport (non-urban)

Bangladesh has the potential to become a transport and transshipment center for the subregion. It borders India and Myanmar and is geographically close to Bhutan, Nepal, and Kunming--the key transportation hub in southwest People's Republic of China (PRC). With the opening of the Bhangabandhu Bridge over the Jamuna River (the Jamuna Multipurpose Bridge) and the proposed development of the Padma Bridge, the Dhaka-Chittagong transport corridor and other strategic transport corridors can facilitate trade between Bangladesh and the northeastern states of India, the Indian state of West Bengal, Bhutan, and Nepal, thereby attracting more foreign and domestic investment to the country.

While overall trade in Bangladesh has increased since economic liberalization in 1980's and its acceleration in 1990's, exports to East Asia (6.8%) and South Asia (1.6%) continue to account for a small share of overall trade. A 2008 Asian Development Bank (ADB) study identified weak trade-related infrastructure and poor connectivity are one of the more serious impediments to expansion of trade and investment among countries, in addition to a narrow export base and few complementarities with other countries in the region. Another study--the BIMSTEC Transport Infrastructure and Logistics Study--determined that improved transport infrastructure and improved access to modern transport systems are the keys to enhancing RCI in Bangladesh.

Because of its location, Bangladesh plays a key role in RCI. The SAARC Regional Multimodal Transport Study identified priority corridors among SAARC countries. Six out of 10 priority road corridors and two out of five priority rail corridors go through Bangladesh. Bangladesh also has two of the priority ports (Chittagong and Mongla) providing international gateways for international trade. Bangladesh requires massive investment to improve infrastructure along these priority corridors. Such investment would not only contribute to the development of Bangladesh's own economy, but would also contribute heavily to increasing subregional trade.

Increased subregional connectivity and trade

Improved efficiency in implementing RCI transport projects and facilitating cross-border traffic in Bangladesh

Road Component: Out of the 13 road projects prepared under L2688-BAN, (i) 3 projects with a total length of 327 km, including ADB-funded Loan 2949-BAN: SASEC Road Connectivity Project and Loans 3592/3593-BAN: SASEC Dhaka Northwest Corridor Road Project, Phase 2 are under implementation, (ii) 7 projects with total length of 873 km were also prepared with identified financing resources, (iii) RHD is seeking financing resources for 3 projects. A total of 9 road projects are prepared under L3295-BAN. The final feasibility reports and detailed designs for 4 projects with total length of 472 km were completed. The detailed designs for the remaining five projects (with a total length of 402 km) were also completed. Four of the 9 projects have identified financing resources.

Railway Component: Out of 7 railway projects prepared under L2688-BAN, (i) 4 projects, including Loans 3169/3170-BAN: SASEC Railway Connectivity: Akhaura-Laksam Double Track Project and Loans 343/3439-BAN: SASEC Chittagong Cox's Bazar Railway Project with a total length of 455 km are under implementation, (ii) 2 projects with a total length of 195 km, have also been prepared with identified financing resources, and (iii) BR is seeking financing resources for 1 project. All of the 8 railway subprojects under Loan 3295-BAN have completed its final feasibility studies. Four subprojects completed its draft detailed designs in Q4 2021 and its final detailed design by Q2 2022.

Feasibility studies and detailed design of regional cooperation and integration (RCI) transport projects

Implementation support to RCI transport projects to facilitate government approvals, safeguard implementation and procurement

All consultants will be recruited according to ADB's Guidelines on the Use of Consultants. Consulting firms will be engaged using the quality- and cost-based selection (QCBS) method with a standard quality:cost ratio of 90:10.

For feasibility study and detailed design:

(i) Road ( 2 packages) - 68 person-months of international inputs and 412 person-months of national inputs

(ii) Railways (1 package) - 260 person-months of international and 882 of national inputs

For safeguards implementation (2 packages): 10 national experts/ 240 person-months

For capacity development for RHD (1 package): 5 international consultants for 19 months and 6 national consultants for 39 months