Bangladesh: Subregional Transport Project Preparatory Facility

Sovereign Project | 44142-013

ADB is helping Bangladesh prepare prepare railway and road projects that are earmarked for financing under the South Asia Subregional Economic Cooperation Program. The project will fund feasibility studies, detailed design preparation, procurement assistance, and safeguard implementation. It will focus on priority transport corridors that will help enhance regional cooperation and integration.

Project Details

  • Project Officer
    Tanaka, Yasushi
    South Asia Department
    Request for information
  • Country
    Bangladesh
  • Modality
    • Loan
  • Sector
    • Transport
Project Name Subregional Transport Project Preparatory Facility
Project Number 44142-013
Country Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2688-BAN: Subregional Transport Project Preparatory Facility
Asian Development Fund US$ 23.00 million
Loan 3295-BAN: Subregional Transport Project Preparatory Facility - Additional Financing
Asian Development Fund US$ 30.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Sector / Subsector

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

Gender Equity and Mainstreaming Some gender elements
Description The proposed technical assistance loan will provide the facility to prepare a series of regional cooperation and integration (RCI) transport projects in roads and railways. The loan will ensure the projects are ready for implementation by providing funding for feasibility studies, detailed design preparation, procurement assistance, and safeguard implementation. The focus will be on priority transport corridors identified in the South Asian Association for Regional Cooperation (SAARC) Regional Multimodal Transport Study. Transport corridors linking with the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) countries--such as the Asian Highway Network and the Trans-Asia Rail Network--will also be targeted. While the facility will cover 8% of Bangladesh's major roads and 12% of its railways, development of these corridors would complete the subregional land transport network, which will stimulate both subregional trade and the Bangladesh economy.
Project Rationale and Linkage to Country/Regional Strategy

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.

Impact Increased subregional connectivity and trade
Project Outcome
Description of Outcome Improved efficiency in implementing RCI transport projects and facilitating cross-border traffic in Bangladesh
Progress Toward Outcome 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 are under preparation with identified financing resources, (iii) RHD is seeking financing resources for 3 projects. A total of 9 road projects are being 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) will be completed by 2021. 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 2 with a total length of 195 km, are under preparation 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 will complete its draft detailed designs by Q4 2021 and its final detailed design by Q2 2022.
Implementation Progress
Description of Project Outputs

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

Status of Implementation Progress (Outputs, Activities, and Issues)

Loan 2688: Feasibility studies and detailed designs including support for safeguards implementation of 7 railway projects completed.

Loan 3295: Feasibility studies and detailed designs of 8 railway projects are being prepared.

Loan 2688: Detailed design and feasibility study of 8 projects completed.

Loan 3295: Feasibility studies and detailed designs of 9 road projects with a total route length of 875 km are being prepared.

Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects As the facility supports project preparation, it is not expected to have any adverse environmental consequences. However, the proposed facility will ensure development of environmentally viable investment loans.
Involuntary Resettlement As the facility supports project preparation, it is not expected to have any adverse effect on social issues and is not expected to have any impact on involuntary resettlement; resettlement plans will be prepared for the sub-projects prepared under the proposed facility.
Indigenous Peoples As the facility supports project preparation, it is not expected to have any adverse effect on indigenous people; if required, indigenous people plans will be prepared for sub-projects under the facility.
Stakeholder Communication, Participation, and Consultation
During Project Design TA consultants will have direct consultations/interactions with stakeholders using participatory approaches at the local and line Ministry levels. A communication strategy will be formulated for the Facility which will include gaps identified from the communication needs assessment.
During Project Implementation Communication strategy formulated by TA consultants during project preparation.
Business Opportunities
Consulting Services

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

Procurement All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines.
Responsible ADB Officer Tanaka, Yasushi
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Bangladesh Railway
Mr. A. H. M. Roushanuzzaman
16 Abdul Gani Road
Bangladesh Railway, Rail Bhaban,
Dhaka, Bangladesh
Roads and Highways Department
Mr. Md. Fazlul Haque
Sarak Bhaban
Tejgaon, Dhaka-1208
Bangladesh
Timetable
Concept Clearance 01 May 2010
Fact Finding 17 May 2010 to 28 May 2010
MRM 19 Aug 2010
Approval 03 Nov 2010
Last Review Mission -
PDS Creation Date 03 Jun 2010
Last PDS Update 26 Nov 2021

Loan 2688-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Nov 2010 23 Jun 2011 21 Jul 2011 31 Dec 2013 30 Jun 2016 24 Jan 2017
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 23.00 Cumulative Contract Awards
ADB 23.00 08 Dec 2021 22.09 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 08 Dec 2021 22.09 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Unsatisfactory - Unsatisfactory

Loan 3295-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Sep 2015 26 Oct 2015 08 Dec 2015 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 40.59 Cumulative Contract Awards
ADB 30.00 08 Dec 2021 25.58 0.00 85%
Counterpart 10.59 Cumulative Disbursements
Cofinancing 0.00 08 Dec 2021 22.29 0.00 74%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Unsatisfactory - Unsatisfactory

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.

Title Document Type Document Date
Subregional Transport Project Preparatory Facility - Additional Financing: Ministry of Railways Audited Project Financial Statements (July 2019-June 2020) Audited Project Financial Statements May 2021
Subregional Transport Project Preparatory Facility - Additional Financing: Audited Project Financial Statements (July 2019-June 2020) Audited Project Financial Statements May 2021
Subregional Transport Project Preparatory Facility - Additional Financing: Ministry of Road Transport and Bridges Audited Project Financial Statements (July 2019-June 2020) Audited Project Financial Statements Jan 2021
Subregional Transport Project Preparatory Facility - Additional Financing: Ministry of Road Transport and Bridges Audited Project Financial Statements (30 June 2018-30 June 2019) Audited Project Financial Statements Mar 2020
Subregional Transport Project Preparatory Facility - Additional Financing: Ministry of Railways Audited Project Financial Statements (30 June 2018-30 June 2019) Audited Project Financial Statements Mar 2020
Subregional Transport Project Preparatory Facility: Ministry of Railways (LN2688) Audited Project Financial Statements (July 2016-June 2017) Audited Project Financial Statements Aug 2019
Subregional Transport Project Preparatory Facility – Additional Financing: Ministry of Railways (LN3295) Audited Project Financial Statements (July 2016-June 2017) Audited Project Financial Statements Aug 2019
Subregional Transport Project Preparatory Facility – Additional Financing: Ministry of Road Transport and Bridges (LN3295) Audited Project Financial Statements (July 2016-June 2017) Audited Project Financial Statements Aug 2019
Subregional Transport Project Preparatory Facility - Additional Financing: Ministry of Road Transport and Bridges Audited Project Financial Statements (30 June 2017-30 June 2018) Audited Project Financial Statements Jun 2019
Subregional Transport Project Preparatory Facility - Additional Financing: Audited Project Financial Statements (30 June 2017-30 June 2018) Audited Project Financial Statements Jun 2019
Technical Assistance Loan Agreement (Special Operations) for Loan 3295-BAN: Subregional Transport Project Preparatory Facility - Additional Financing Loan Agreement (Special Operations) Oct 2015
Subregional Transport Project Preparatory Facility - Additional Financing: Project Administration Manual Project/Program Administration Manual Sep 2015
Subregional Transport Project Preparatory Facility - Additional Financing: Report and Recommendation of the President Reports and Recommendations of the President Sep 2015
উপ-আঞ্চলিক পরিবহন প্রকল্প প্রস্তুতিমূলক কার্যক্রম-অতিরিক্ত অর্থায়ন : প্রকল্প তথ্যপত্র Translated PDS Sep 2015
Subregional Transport Project Preparatory Facility - Additional Financing: Procurement Plan Procurement Plans Jun 2015
Subregional Transport Project Preparatory Facility Procurement Plans Mar 2014
Technical Assistance Loan Agreement for Subregional Transport Project Preparatory Facility between the People's Republic of Bangladesh and Asian Development Bank dated 23 June 2011 Loan Agreement (Special Operations) Jun 2011
Subregional Transport Project Preparatory Facility Reports and Recommendations of the President Oct 2010
Subregional Transport Project Preparatory Facility Summary Poverty Reduction and Social Strategies Oct 2010
Subregional Transport Project Preparatory Facility Project/Program Administration Manual Sep 2010
Subregional Transport Project Preparatory Facility Initial Poverty and Social Analysis Mar 2010

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.

None currently available.


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.

Tenders

No tenders for this project were found.


Contracts Awarded

No contracts awarded for this project were found