47243-004: Rural Connectivity Improvement Project | Asian Development Bank

Bangladesh: Rural Connectivity Improvement Project

Sovereign (Public) Project | 47243-004 Status: Approved

The proposed RCIP will focus on improving rural road rehabilitation and maintenance in Bangladesh. RCIP has been prepared under the project design advance.

The proposed RCIP will improve the road network connecting the rural population to agriculture value chain development zones. Investments will be made to (i) upgrade about 1,700 kilometers (km) of rural roads to all-weather standards in 34 districts located in five divisions; (ii) improve the capacity of the rural infrastructure agency to address institutional constraints relating to rural road development; and (iii) finance enhancements to the country's rural road master plan to enable the selection of priority rural roads for improvement using a geographic information system covering the entire country.

Project Details

Project Officer
Tai, Lee Ming South Asia Department Request for information
Country
  • Bangladesh
Modality
  • Loan
  • Technical Assistance
Sector
  • Agriculture, natural resources and rural development
 
Project Name Rural Connectivity Improvement Project
Project Number 47243-004
Country Bangladesh
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3731-BAN: Rural Connectivity Improvement Project
Ordinary capital resources US$ 100.00 million
Loan 3732-BAN: Rural Connectivity Improvement Project
concessional ordinary capital resources lending / Asian Development Fund US$ 100.00 million
TA 9632-BAN: Institutional Strengthening of the Bangladesh Rural Road Sector for Sustainable Development
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Rural market infrastructure

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The proposed RCIP will focus on improving rural road rehabilitation and maintenance in Bangladesh. RCIP has been prepared under the project design advance.

The proposed RCIP will improve the road network connecting the rural population to agriculture value chain development zones. Investments will be made to (i) upgrade about 1,700 kilometers (km) of rural roads to all-weather standards in 34 districts located in five divisions; (ii) improve the capacity of the rural infrastructure agency to address institutional constraints relating to rural road development; and (iii) finance enhancements to the country's rural road master plan to enable the selection of priority rural roads for improvement using a geographic information system covering the entire country.

Project Rationale and Linkage to Country/Regional Strategy

Bangladesh, with a population of about 163 million in 2016, and a land area of 147,570 square kilometers, is among the most densely-populated countries in the world, and also one of the most vulnerable countries to climate risks. Two-thirds of the country is less than 5 meters above mean sea level and located in the world's largest tropical river deltas of the Ganges, Brahmaputra, and Meghna. Bangladesh has made steady economic progress over the past six years, with annual gross domestic product (GDP) growth exceeding 6% on average. In a major leap forward, United Nations declared that Bangladesh has become eligible to graduate to a developing country from a least developed country by 2024. The government's Seventh Five Year Plan, FY2016 FY2020 is crafted towards this end. The plan aims to achieve a growth rate of at least 7% on average over the plan period. It is on track to meet this target, having achieved an annual GDP growth rate of 7.1% in 2016, and 7.3% in 2017. Moving forward, the Asian Development Outlook report on global economic prospects forecasts that Bangladesh will grow at an average of 7.1% over fiscal years 2018 2019 with strong domestic demand and strengthening exports. The report projects that investments will benefit from low interest rates and improved infrastructure.

About 80% of the country's population live in rural areas and depend on agriculture for their livelihood. The rural economy, through farm and non-farm sector, substantially contributes to the national economy. Agriculture constituted about 15.5% of the GDP in 2015, which is in the same range as that of South Asia as a whole. Although share of agriculture in GDP has been declining gradually over the years, about 50% of the work force are still directly or indirectly employed in the agriculture sector and remain a major contributor to poverty reduction due to rising wages. Growth in agriculture was between 3% to 3.5% over the period 2000 to 2015. The country has achieved near self-sufficiency in cereal production with strong emphasis on rice production, which is growing above the population growth rate. Agriculture development is necessary to further reduce the reliance on imported food and other agricultural products, which absorb 29% of export earnings. The plan focuses on increasing rural incomes and agriculture's contribution to economic development by (i) maintaining self-sufficiency in cereal production, (ii) diversifying and improving the quality of crops, (iii) increasing productivity, and (iv) promoting agribusiness. Bangladesh's major agricultural challenges include (i) lack of modern production technologies, (ii) inadequate food quality, (iii) weak value chains, and (iv) food insecurity. Insufficient rural transport, inadequate market infrastructure, and the impacts of intensifying floods and cyclones related to climate change are major constraints to agriculture development. Accordingly, the plan has put forward specific strategies to overcome these challenges and constraints.

Rural connectivity underpins rural development in Bangladesh, and road transportation is the dominant mode of transportation, utilized by over 70% of passengers and 60% of freight traffic. Rural roads contribute significantly to generating increased agricultural incomes and employment opportunities while benefiting the entire rural population through access to economic and social services. Many of these rural roads were constructed during 1990 2010 on earthen embankments and are owned by Union Parishads (rural councils) or Zila Parishads (district councils). Since 1995, the government, with the support from the international development community, has continued to expand and improve the rural road network. However, rural connectivity in Bangladesh remains unfinished, impeding the physical and economic access. Only about 40% of the rural population has access to all-weather roads, and these roads make up only 28% of the total length of rural roads in the country.

Under the plan, the government has now embarked on a sustained effort to improve the country's rural road network, using its own resources and with the assistance from its international development partners. The government has proposed to increase the percentage of rural roads classified as _good_ from 43% in 2016 to 80% in 2020. The project is well-aligned with the government's development plan and will improve about 1,700 km of rural roads to all-weather standards, serving the agriculture sector and 51.5 million rural people living in 34 districts in five divisions. These roads are critical in supporting the country's agriculture value-chain development zones.

The project is consistent with the strategic objective set out in the government's Seventh Five Year Plan, 2016 2020 to expand the rural road capacity to increase connectivity, provide greater access to social services and markets, and promote the agriculture sector. The project will also support the government's agricultural strategy of increasing agricultural productivity, encouraging commercial agriculture and agribusiness development, increasing employment opportunities for rural poor people, and reducing the poverty level.

Impact Connectivity between rural communities, productive agricultural areas, and socio-economic centers in Bangladesh improved
Project Outcome
Description of Outcome Transport efficiency and related employment generated in target areas increased
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Rural road conditions between selected rural communities, productive agricultural areas, and socio-economic centers improved.

Capacity of rural infrastructure agency and road users in project areas enhanced.

Rural road master planning enhanced

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide, B-baria City, Bogra, Chandpur, Chapai Nawabganj, Chittagong, Chuadanga, Comilla, Cox's Bazar, Dinajpur, Faridpur, Feni, Gaibandha, Gopalganj, Jessore, Jhenaidah Sardar UZ, Joypurhat, Kurigram, Kushtia, Laksmipur, Lalmanirhat, Madaripur, Magura, Meherpur, Naogaon, Narail, Natore, Nilphamari, Noakhali, Panchagarh, Rajbari, Rajshahi, Rangpur, Shariatpur, Thakurgaon
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The project beneficiaries include the government, LGED, road users, transport owners and operators, traders, road construction companies and the impact zone people. The project will not have any negative effect on people. The beneficiaries will participate in consultation session during the design of the activities under investment component.
During Project Implementation The primary stakeholders such as the Ministry of Finance and LGED are already involved in the design of the program and due attention is being paid to inclusiveness of poor, vulnerable and excluded groups. The poor and excluded will be involved in rural roads rehabilitation and maintenance, and employment during road upgrading, and information dissemination.
Business Opportunities
Consulting Services All consultants will be recruited according to Procurement Regulations for ADB Borrowers: Goods, Works, Nonconsulting and Consulting Services (2017, as amended from time to time). The project will engage (i) project implementation support consultant; (ii) capacity development consultant for GIS-based development of rural road masterplan; and (iii) consultant for project-associated transaction technical assistance.
Procurement All procurement of goods and works will be undertaken in accordance with Procurement Regulations for ADB Borrowers: Goods, Works, Nonconsulting and Consulting Services (2017, as amended from time to time). The procurement plan calls for 37 civil works to upgrade around 1,700 kilometers of rural roads in 34 districts; three vehicle contracts; and four equipment contracts using open competitive bidding.
Responsible ADB Officer Tai, Lee Ming
Responsible ADB Department South Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies
Local Government Engineering Department
LGED Bhaban (Level 6), Agargaon
Sher-e-Bangla Nagar,
Dhaka 1207, Bangladesh
Local Govt Div,Min of Local Govt Rural Devt & Coop
Bangladesh Secretariat
Dhaka
Timetable
Concept Clearance 27 Jul 2015
Fact Finding 01 Apr 2018 to 12 Apr 2018
MRM 05 Jul 2018
Approval 05 Nov 2018
Last Review Mission -
Last PDS Update 07 Nov 2018

Loan 3731-BAN

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 100.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Loan 3732-BAN

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 185.31 Cumulative Contract Awards
ADB 100.00 - 0.00 0.00 %
Counterpart 85.31 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

TA 9632-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Nov 2018 - - 30 Jun 2020 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 05 Nov 2018 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.

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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

Tender Title Type Status Posting Date Deadline
Project Implementation Support Consultant (PISC) Firm - Consulting Closed 17 May 2018 20 Jun 2018
BAN: Rural Connectivity Improvement Project Advance Notice Active 24 Apr 2018

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan