fbpx 50293-002: South Asia Subregional Economic Cooperation Chittagong Port Enhancement Project, Phase 1 | Asian Development Bank

Bangladesh: South Asia Subregional Economic Cooperation Chittagong Port Enhancement Project, Phase 1

Sovereign (Public) Project | 50293-002 Status: Proposed

The Project will support the government of Bangladesh to expand the capacity of Chittagong Port to meet the growing transport demand and also support preparation of subsequent port development projects. The Project will increase export and import activities in the country and contribute to the economic growth of Bangladesh. The Project will also integrate projects related to the SASEC corridors, and Chittagong Port will serve as a _regional gateway port_ providing sea access to the SASEC landlocked countries as well as to the proximate region.

Project Details

Project Officer
Kaoru Kasahara South Asia Department Request for information
Country
  • Bangladesh
Modality
  • Loan
Sector
  • Transport
 
Project Name South Asia Subregional Economic Cooperation Chittagong Port Enhancement Project, Phase 1
Project Number 50293-002
Country Bangladesh
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: South Asia Subregional Economic Cooperation Chittagong Port Enhancement Project, Phase 1
Ordinary capital resources US$ 73.00 million
concessional ordinary capital resources lending / Asian Development Fund US$ 3.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Knowledge solutions
Partnerships
Sector / Subsector

Transport / Water transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description The Project will support the government of Bangladesh to expand the capacity of Chittagong Port to meet the growing transport demand and also support preparation of subsequent port development projects. The Project will increase export and import activities in the country and contribute to the economic growth of Bangladesh. The Project will also integrate projects related to the SASEC corridors, and Chittagong Port will serve as a _regional gateway port_ providing sea access to the SASEC landlocked countries as well as to the proximate region.
Project Rationale and Linkage to Country/Regional Strategy Labor-intensive industries have evolved in Bangladesh due to its comparative advantage in labor cost. The garment sector is particularly successful as it accounts for 85% of the country's exports. Bangladesh is the second largest exporter of garment in value in the world. Reliable and low-cost logistics network is a fundamental infrastructure to maintain the competitiveness of Bangladesh products in the global market. Chittagong Port is the national gateway port handling 95% of the country's international cargo. The port is the busiest container port in the Bay of Bengal, with handled container volume about 2.3 million twenty-foot equivalent units (TEU) in 2016. The port is already operating beyond its nominal capacity of container cargo handling at 1.7 million TEU per year, and it is forecast that total container cargo volume of the country will reach 6.1 million TEU in 2030. Chittagong Port has distinct geographic and economic advantages, and will remain as a major gateway port, regardless of any other potential developments in the region. Thus, strengthening of port capacity is imperative. Unless such expansion and efficiency improvement are carried out, the port is likely to become a bottleneck to the international trade and economic growth of Bangladesh.
Impact Regional connectivity and trade improved
Outcome Efficiency of the container yard operation improved
Outputs

Vehicle-type equipment for cargo handling and IT system installed

Operation and management capacity of the Chittagong Port strengthened

Detailed design and other preparatory works for the Bay Terminal development prepared

Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Project will only involve the procurement of vehicle type equipment for cargo handling; information technology (IT) system; and consulting services, which includes preparation of detailed design of Bay Terminal and detailed hydrologic and hydraulic studies along Karnaphuli river. These activities will not have any direct or induced impacts on the environment and hence, the Project has been categorized as C for environmental safeguards in accordance with ADB Safeguard Policy Statement (SPS). No environmental assessment is required for the Project.
Involuntary Resettlement The Project is classified as category C for both involuntary resettlement and indigenous peoples in accordance with ADB's Safeguard Policy Statement. Project outputs involve procurement of cargo handling equipment, strengthening of CPA operations and management capacity, and design of future port components. The project outputs will not result in physical and economic displacement. There are no indigenous peoples residing around the port. The PIU under the Project Director will be responsible for ensuring compliance of the Project with the ADB SPS and relevant government regulations.
Indigenous Peoples (Combined with Involuntary Resettlement)
Stakeholder Communication, Participation, and Consultation
During Project Design (to be detailed later)
During Project Implementation (to be detailed later)
Business Opportunities
Consulting Services A consulting firm will be recruited for the implementation of TRTA.
Procurement Procurement of goods and works will be finalized during due diligence, in accordance with ADB's policies and regulations. To expedite project implementation, advance contracting and retroactive financing are proposed.
Responsible ADB Officer Kaoru Kasahara
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Chittagong Port Authority
Chittagong
Bangladesh
Ministry of Shipping
Bldg #6, Bangladesh Secretariat
Dhaka 1000, Bangladesh
Timetable
Concept Clearance 10 Apr 2017
Fact Finding 14 May 2017 to 25 May 2017
MRM 28 Feb 2018
Approval -
Last Review Mission -
Last PDS Update 24 Sep 2018

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.

None currently available.

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
Selection of International Consultancy Firm for Detailed Hydrologic and Hydraulic Study in Karnaphuli River Firm - Consulting Closed 25 Jul 2018 17 Sep 2018

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.