Bangladesh: South Asia Subregional Economic Cooperation Dhaka–Sylhet Corridor Road Investment Project

Sovereign Project | 53382-001

The investment project will finance improvement of the Dhaka-Sylhet section of National Highway No. 2, with design features to address the needs of the elderly, women, children, and the differently abled, and disaster and climate risks. The project road connects to the border with India via the Sylhet-Tamabil section, and will improve the efficiency, connectivity, and safety of the Dhaka-Sylhet trade corridor. The investment project will also assist the Roads and Highways Department (RHD) in strengthening its capacity for road safety and asset maintenance, in part through the attached transaction technical assistance.

Project Details

  • Project Officer
    Sakaguchi, Satomi
    South Asia Department
    Request for information
  • Approval Date
    27 August 2021
  • Country
    Bangladesh
  • Sector
    • Transport
Project Name South Asia Subregional Economic Cooperation Dhaka–Sylhet Corridor Road Investment Project
Project Number 53382-001
Country Bangladesh
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
MFF Facility Concept 0112-BAN: South Asia Subregional Economic Cooperation Dhaka Sylhet Corridor Road Investment Project
Ordinary capital resources US$ 1,780.00 million
TA 6764-BAN: Institutional Strengthening of Roads and Highways Department on Road Safety and Maintenance
Technical Assistance Special Fund US$ 1.00 million
Japan Fund for Poverty Reduction US$ 2.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The investment project will finance improvement of the Dhaka-Sylhet section of National Highway No. 2, with design features to address the needs of the elderly, women, children, and the differently abled, and disaster and climate risks. The project road connects to the border with India via the Sylhet-Tamabil section, and will improve the efficiency, connectivity, and safety of the Dhaka-Sylhet trade corridor. The investment project will also assist the Roads and Highways Department (RHD) in strengthening its capacity for road safety and asset maintenance, in part through the attached transaction technical assistance.
Project Rationale and Linkage to Country/Regional Strategy

Upgrading Bangladesh's major roads, especially the subregional trade corridors, to internationally comparable standards will contribute to facilitating international trade. This will, in turn, support the country's economic growth and reduce poverty, as well as ensure inclusiveness of road transport. The government's Eighth Five Year Plan (2020-2025) therefore aims to construct 550 km of new multi-lane roads, add 150 km of new lanes, improve or rehabilitate 1,800 km of the National Highways, as well as achieve 10% reduction in road traffic accidents by 2025. For achieving these targets, the Plan prioritizes core transformational road projects requiring large investments and emphasizes stronger implementation capacity of the RHD for completing these projects timely. The investment project will contribute to achieving these targets of the Plan.

Transport infrastructure is also the centerpiece of the ADB-supported SASEC program, which promotes regional prosperity. The SASEC Operational Plan, 2016-2025 identified 112 priority regional cooperation and integration transport projects worth about $58.9 billion. It includes the widening of the NH2 of which the proposed SASEC Dhaka-Sylhet Corridor Road Investment Project is a major part.

Impact An efficient, sustainable, safe and regionally balanced transport system developed.
Project Outcome
Description of Outcome Mobility, safety, and regional trade along the Dhaka-Sylhet corridor road improved.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

The Dhaka-Sylhet corridor road upgraded with enhanced road safety, elderly, women, children, and differently abled- responsive, and climate- and disaster-resilient features

Institutional capacity of the Roads and Highways Department enhanced

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Dhaka, Sylhet
Summary of Environmental and Social Aspects
Environmental Aspects The investment project is categorized as B as per ADB''s Safeguard Policy Statement (SPS) 2009. The initial environmental examination (IEE), prepared for the entire project road in compliance with ADB''s SPS and satisfying the Government's Environmental Conservation Rules 1997, concluded that most of the potential significant impacts such as large volumes of construction materials, transportation, storage and handling, increase in air pollutants, noise and vibration levels, management of construction and demolition waste, siltation of waterways, and traffic obstruction near active construction sites are reversible, largely limited to construction period, mostly localized, and short-term in nature. The entire alignment is not passing through or located proximate to any protected/eco-sensitive area. Diversion of forest land is minimal and limited to a single location. Cutting of trees and loss of agricultural land and physical assets will be compensated in accordance with ADB's SPS and the national requirements. Additional plantations are proposed on top of regulatory requirement to enhance the micro-climate and serve as carbon sink.
Involuntary Resettlement The investment project is categorized as A as per ADB''s SPS. A draft resettlement plan is prepared for the entire Dhaka-Tamabil section excluding the 11.5 km section to be funded by the Exim Bank of India based on draft design of the alignment. The resettlement plan is based on the preliminary design. A total of 582.51 hectares of private land will need to be acquired. A total of 9,286 households/unit/entities (55,454 affected persons) will be affected due to the project implementation, which are disaggregated into 8,905 households, 302 common property resources, 56 government offices, 21 RHD-owned structures and 2 NGO/Association structures. The total 7,355 households/unit/entities will require physical displacement, of which 4,679 are titleholders, 2,060 are non-title holders, and 276 are common property resources and other government and non-government offices. A total 10 stakeholder consultation meetings and 61 focus groups discussion were conducted between October 2019 and February 2020. Stakeholder engagement will continue throughout the land acquisition process.
Indigenous Peoples The investment project is categorized as C as per ADB''s SPS. It does not affect tribal lands, and the survey confirmed that no indigenous communities, as defined under the ADB SPS, is affected.
Stakeholder Communication, Participation, and Consultation
During Project Design A total of 10 stakeholder consultation meetings and 61 focus groups discussion were conducted between October 2019 and February 2020.
During Project Implementation Stakeholder engagement will continue throughout the land acquisition process.
Business Opportunities
Consulting Services For consultancies financed by ADB, all consultants will be recruited according to ADB Procurement Policy (2017, as amended from time to time) and ADB Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Procurement For procurement of goods, works and consulting services to be financed by ADB, Procurement Regulations for ADB Borrowers (2017, amended from time to time) shall apply. ADB's standards bidding documents with pre- or post-qualification will be adopted with appropriate modifications.
Responsible ADB Officer Sakaguchi, Satomi
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Timetable
Concept Clearance 26 Feb 2020
Fact Finding 08 Feb 2021 to 04 Mar 2021
MRM 01 Jun 2021
Approval 27 Aug 2021
Last Review Mission -
Last PDS Update 27 Aug 2021

MFF Facility Concept 0112-BAN

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2,691.00 Cumulative Contract Awards
ADB 1,780.00 - 0.00 0.00 %
Counterpart 911.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

TA 6764-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Aug 2021 - - 30 Sep 2024 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 2,000,000.00 0.00 0.00 0.00 0.00 3,000,000.00 29 Sep 2021 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

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Tenders

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Contracts Awarded

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