Bangladesh Early Warning Update
Asian Development Bank Business Opportunities: Volume 2, January 2008
Tuesday, January 29, 2008
This Bulletin is a periodic electronic update from the Bank Information Center (BIC) South Asia office to inform civil society about Asian Development Bank (ADB) projects before they are approved by the Board of Directors of the ADB.
This Update covers project information, organized by sectors, covering Bangladesh only. The information is compiled directly from ADB’s Business Opportunities.
For feedback on the Early Warning Update or to subscribe, please contact:
Bank Information Center, South Asia Office (New Delhi)
Phone: +91-11-2602-0143; Email: southasia@bicusa.org; Web: www.bicusa.org
For more information on specific projects, please contact the following at the ADB:
The Project Officer (contact details listed against each project). When emailing, also copy to: disclosure@adb.org. You may also contact the ADB Public Information and Disclosure Unit (See: http://www.adb.org/Disclosure/contact.asp).
About Business Opportunities (BOp)
Business Opportunities (BOp) identifies potential projects that are under consideration for ADB financing. The BOp listings do not guarantee that financing will be approved for particular projects. However, BOp listings serve as important tools for monitoring and follow up of proposed projects. These, along with your country’s Country Partnership Strategy (CPS), work as early warnings on the projects that your government and the Bank are considering for funding. Advocacy and campaigning experience around the world on Bank projects indicates that the earlier civil society gets involved on proposed projects, the greater the likelihood for impacting them. Proposed projects are listed until the point of ADB Board approval; the remaining are dropped from the list. BOp listings are prepared after CPS approval and during the early phases of Project Preparation. For better understanding of this process, the Bank’s Project Cycle is summarized below.
Project Cycle (ADB website for complete project cycle)
ADB’s Project Cycle Project Identification/Preparation: ADB often provides grants called project/program preparatory technical assistance (PPTA) to help the government identify and prepare feasible projects. The summary is made available in the form of a project profile or project information document (PID).
During the early stage of the PPTA, an initial poverty and social assessment is conducted to identify people who may be beneficially or adversely affected. A technical assistance report is prepared as a recommendation for ADB to finance a technical assistance project.
If the project requires resettlement of people or might adversely impact the environment, or indigenous peoples, certain safeguard assessments are prepared during this stage. The results of these assessments are to be made available to affected people. For more information on community rights under ADB safeguards and international best practices, see comparative matrices of MDB safeguard policies on BIC's website.
Project Examination: ADB examines project feasibility, first through a fact-finding mission and then through an appraisal mission. The fact-finding mission examines the project's technical, financial, economic, environmental, marketing, and management aspects and potential social impact. Detailed project risks and sensitivity analyses are carried out to assess viability of the proposed project and loan terms are discussed.
Following this, the Appraisal Mission conducts further field study, analyses and consultation, as required. The mission then prepares a loan proposal report and draws up a draft loan agreement for negotiation. After appraisal, the draft loan agreement and draft project proposal is submitted for review. Government is then called for negotiation with ADB. After negotiations with the government, the loan proposal is submitted to Board of Directors for Approval, through its Report and Recommendation of the President (RRP).
After Board approval, the document is sent to the borrowing country's Government for cabinet authorization following which the loan agreement is signed. The loan takes effect once certain conditions are met. The requirements and deadline for loan effectiveness are stipulated in the loan agreement.
ADB-assisted projects are implemented by the executing agency according to the agreed schedule and procedures as detailed out in the project administration memorandum. Implementation time generally ranges from two to five years but depends on the type and nature of the project. ADB's review missions assess the progress of project implementation by visiting it at least twice a year throughout the implementation period.
If a project has significant environmental or social issues, ADB will often require the borrower to submit regular monitoring reports, in addition to progress reports. Information on the project's implementation progress and status of development objectives and loan covenants is added to the project information document during this implementation phase.
For more information, refer to: Unpacking the ADB: A Guide to Understanding the Asian Development Bank
Commonly Used BOp Acronyms
TA: Technical Assistance
AOTA: Advisory and Operational Technical Assistance Loans
PPTA: Project Preparatory Technical Assistance
RETA: Regional Technical Assistance
EIA: Environmental Impact Assessment
IEE: Initial Environmental Examination
N: New Project
R: Revised (italic text indicates change from previous month)
ADB Environmental Categorization
Category “A” Projects: Projects having severe environmental impacts are categorized as “A”. An EIA is required.
Category “B” Projects: Projects having some adverse environmental impacts are categorized as “B”. An IEE is required in order to determine whether an EIA also needs to be done. If not, then the IEE is the final environment document.
Category “C” Projects: Projects havening no environmental impacts are categorized as “C”. No IEE or EIA is required but environmental considerations are still reviewed.
Category “F1” Projects: Projects involving a financial intermediary or equity investment are classified as “F1”. The financial intermediary will apply an environmental management system if environmental impacts are expected.
Current Business Opportunities for Bangladesh
Agriculture and Natural Resources/Water Resources Management
|
|
Project Name |
(R) Participatory Small-scale Water Resources Development |
|
Project Type and ID |
PPTA/ BAN 39432-01 |
|
Executing Agency |
Local Government Engineering Department |
|
TA Amount (US$ '000) |
600.00 |
|
Date of First Listing |
5 September 2007 |
|
Objectives and Scope |
The project will prepare a sector investment package to develop small-scale water resources management systems across the country on the basis of lessons learned from ongoing projects and further improving implementation arrangements, taking into account the emerging policy environment toward decentralization. |
|
Environmental Assessment |
To Be Determined |
|
Project Processing Stage |
Approved by the Bank : 18 December 2007 |
|
Project Officer |
Yasmin Sadia Siddiqi (632-6744); Agriculture, Natural Resources and Social Services Div, SARD; ysiddiqi@adb.org |
|
Health, Nutrition, and Population/Health Systems
|
|
Project Name |
(R) Urban Primary Health Care Sector Development Program |
|
Project Type and ID |
PPTA: BAN 39305-01 |
|
Executing Agency |
Local Government Division, Ministry of Local Government, Rural Development and Cooperation |
|
TA Amount (US$ '000) |
650.00 |
|
Date of First Listing |
29 June 2007 |
|
Objectives and Scope |
The objectives of the proposed TA, among others, is to prepare required technical, financial, economic, social and environmental assessment reports for the proposed Bangladesh Urban Primary Health Care Sector Program. The program will include (i) policy agenda; (ii) priority investments; and (iii) institutional strengthening component for local government division, city corporations, municipalities and partner agencies. The TA will lay the groundwork and necessary preparation for ensuing urban primary health care sector development program, whose outcomes would be to improve the health status of the poor in urban areas, and assist Bangladesh accelerate progress toward child, maternal health and communicable diseases related MDGs. To achieve this impact, the TA will assist in designing a program that will increase access to urban primary health care; improve municipal public health governance, including improved coordination between local governments and the health ministry and develop the institutional and financial capacities of local government bodies to sustain efficient and effective primary health care services; and strengthen urban local bodies’ capacity to implement their mandates relating to food safety, hospital and solid waste management in partnership with private sector. |
|
Environmental Assessment |
Required |
|
Project Processing Stage |
Approved by the Bank : 8 November 2007 |
|
Project Officer |
Sekhar Bonu (632-6572), Urban Development Division, SARD; sbonu@adb.org |
Transport & Communications /Roads & Highways
|
|
Project Name |
(R) Padma Multipurpose Bridge Design Project ( formerly Padma Multipurpose Bridge Engineering TA Loan) |
|
Project Type and ID |
LOAN: BAN 35049-02 |
|
Executing Agency |
Jamuna Multipurpose Bridge Authority |
|
TA Amount (US$ million) |
17.60 |
|
Date of First Listing |
2 November 2007 |
|
Objectives and Scope |
The southwest zone of Bangladesh is separated from other parts of the country, especially from the north central zone where the national capital of Dhaka is located, by the Padma river. Although there have been improvements and developments of the road network of the southwest zone, links with the rest of the country across the Padma river are still via ferries. Transport capacity of ferry services is very limited, and waiting time at ferry ghats is about one hour for buses/light vehicles and two hours for trucks. In addition, riverbanks of the Padma river are very unstable and the river width changes frequently, which results in approach ghats being temporarily depending on the seasons. Therefore, expansion of existing ferry terminals is difficult due to these unstable river conditions. Moreover, there is an urgent need to replace existing dangerous ferry/launch operations between Dhaka and the southwest region by more safety and reliable surface transport system. Overloaded vessels frequently sink in this waterway route passing through near the risky-prone zone of turbulent confluence of the Padma and Meghna rivers. The social, economic and industrial underdevelopment of the southwest zone, which encompasses Bangladesh's second major port, Mongla, its third main city, Khulna, and the inland port at Benapole, is in part due to difficult access across the Padma river to the rest of the country. If a bridge to cross the Padma River is constructed, it will certainly strengthen the linkage between the southwest and north central zones. A highway bridge, in particular, will improve and enhance the freight and passenger transportation between Dhaka and major points in the southwest zone and contribute substantially to the regional development of the southwest zone as well as to national economic growth. The TA Loan will assist the Government in preparing the detailed engineering documents and procurement of the Padma Bridge construction. |
|
Environmental Assessment |
Category C |
|
Project Processing Stage |
Approved by the Bank : 5 December 2007 |
|
Project Officer |
Dong-Soo Pyo (632-6817); Transport and Communications Division, SARD; dspyo@adb.org |
|
Water Supply, Sanitation & Waste Management /Water Supply & Sanitation
|
|
Project Name |
Management Support for Dhaka WASA (Piggybacked to Loan 39405-01) |
|
Project Type and ID |
AOTA: BAN 40454-01 |
|
Executing Agency |
Local Government Division, Ministry of Local Government, Rural Development and Cooperation |
|
TA Amount (US$ '000) |
2,500.00 |
|
Date of First Listing |
3 October 2007 |
|
Objectives and Scope |
The objective of the TA is to foster and strengthen autonomy of the urban water supply and sanitation service providers, and develop appropriate institutional and regulatory frameworks to enable successful implementation of the urban water supply and sanitation sector reforms being proposed under the Program, and assist DWASA in optimizing the existing supply sources and ensuring smooth start up of and preparedness for the Project implementation. The TA outcomes will include the following: (i) increased autonomy and strengthened governance, regulatory and managerial structures within the WASAs; (ii) development of sectoral strategy and plan for the urban water supply and sanitation sector; (iii) improved financial sustainability of DWASA and recommend ways to improve PWSS financial management capacity; (iv) detailed analyses of and recommendations on organizational and tariff reforms required by the Program; (v) piloting and assessing the merits of the trench-less technology in rehabilitation works versus the open trench technology; (vi) preparing the management contract and request for proposals for one of the Project zones as outlined under Subcomponent B1 of the Project; (vii) introduction of optimization measures in the existing supply sources; (viii) preparing the regulatory framework and legal documents for preparation of the independent regulatory entity for the urban water sector; and (ix) conducting feasibility study of the long-term water supply source augmentation option for the Dhaka city from the Meghna River. |
|
Project Processing Stage |
DROPPED |
|
Project Officer |
Masayuki Tachiiri (632-6849), Urban Development Division, SARD; mtachiiri@adb.org |
|
Water Supply, Sanitation & Waste Management /Water Supply & Sanitation
|
|
Project Name |
Management Support for Dhaka Water Supply and Sewerage Authority (SEE PREVIOUS PROJECT) |
|
Project Type and ID |
AOTA: BAN 40454-01 |
|
Executing Agency |
Local Government Division, Ministry of Local Government, Rural Development and Cooperation |
|
TA Amount (US$ '000) |
2,500.00 |
|
Date of First Listing |
3 October 2007 |
|
Objectives and Scope |
The objective of the TA is to foster and strengthen autonomy of the urban water supply and sanitation service providers, and develop appropriate institutional and regulatory frameworks to enable successful implementation of the urban water supply and sanitation sector reforms being proposed under the Program, and assist DWASA in optimizing the existing supply sources and ensuring smooth start up of and preparedness for the Project implementation. The TA outcomes will include the following: (i) increased autonomy and strengthened governance, regulatory and managerial structures within the WASAs; (ii) development of sectoral strategy and plan for the urban water supply and sanitation sector; (iii) improved financial sustainability of DWASA and recommend ways to improve PWSS financial management capacity; (iv) detailed analyses of and recommendations on organizational and tariff reforms required by the Program; (v) piloting and assessing the merits of the trench-less technology in rehabilitation works versus the open trench technology; (vi) preparing the management contract and request for proposals for one of the Project zones as outlined under Subcomponent B1 of the Project; (vii) introduction of optimization measures in the existing supply sources; (viii) preparing the regulatory framework and legal documents for preparation of the independent regulatory entity for the urban water sector; and (ix) conducting feasibility study of the long-term water supply source augmentation option for the Dhaka city from the Meghna River. |
|
Project Processing Stage |
Approved by the Bank : 10 December 2007 |
|
Project Officer |
Masayuki Tachiiri (632-6849), Urban Development Division, SARD; mtachiiri@adb.org |
|
Water Supply, Sanitation & Waste Management /Water Supply & Sanitation
|
|
Project Name |
(R) Dhaka Water Supply Sector Development Program (DWSSDP) |
|
Project Type and ID |
LOAN: BAN 39405-01 |
|
Executing Agency |
Ministry of Finance, Ministry of Local Government, Rural Development, and Cooperatives |
|
TA Amount (US$ million) |
150.00 |
|
Date of First Listing |
3 October 2007 |
|
Objectives and Scope |
The overall expected impact of the Dhaka Water Supply Sector Development Program (DWSSDP) is to contribute to sustained economic growth and public health improvement, in urban water supply sector, particularly in Dhaka Metropolitan Area, through the improvement of living standard in the basic human needs by improving the water supply. The supply of clean water will impact on reduction in child mortality and improvement of general health, conversion to economic activity by saving time to fetch and to store water, and conservation of precious natural resources—the surface and ground water. The program and project loans are designed to complement each other in achieving progress in these key sector objectives. |
|
Project Processing Stage |
Category B |
|
Project Officer |
Approved by the Bank: 10 December 2007 |
|
|
Masayuki Tachiiri (632-6849), Urban Development Division, SARD, mtachiiri@adb.org |
|
Multisector
|
|
Project Name |
Public-Private Infrastructure Development Facility - PPIDF (linked to NSP 41928-01) [former Infrastructure Financing Devt Facility] |
|
Project Type and ID |
LOAN: BAN 40517-01 |
|
Executing Agency |
To be determined. |
|
TA Amount (US$ million) |
185.00 |
|
Date of First Listing |
12 July 2007 |
|
Objectives and Scope |
One of the key constraints to economic growth in Bangladesh is its infrastructure deficiencies brought about by stagnant public investments which is largely attributable to the very low level of government revenue collection. Furthermore, Bangladesh, from a regional cooperation point of view, is not fully utilizing its potential in becoming a transport and transshipment hub for the sub-region and the inadequate infrastructure in place limit the country's opportunities for economic integration with its neighbors. Domestic private investment in infrastructure has been limited due to the dearth of long term financing for such investment. Despite the GoB's continuous effort to attract private sector investments, sufficient private commercial financing is not yet available because of various factors, including low rating of debt, a general perception of high cost of doing business in the country, and the absence of creditworthy public sector entities. The proposed Facility will help address these constraints by providing scarce long-term debt financing for private sector sponsored infrastructure projects. As per the lending policy of IDCOL, the proposed Facility will provide loans covering up to 40% of the project cost while the project sponsor will be required to invest a minimum of 20% of the total project cost as equity thereby achieving a better risk sharing between the project sponsor and the government via IDCOL. The proposed facility will therefore play a catalytic role in attracting other commercial funding sources in filling up the financing gap as commercial banks and domestic capital markets are currently not able to provide enough long-term project financing. The project will facilitate and catalyze public-private partnership (PPP) projects, mobilize private sector capital and expertise for infrastructure development, and ease the burden of infrastructure investment on the public sector budget of the GoB. The project will facilitate and catalyze public-private partnership (PPP) projects, mobilize private sector capital and expertise for infrastructure development, and ease the burden of infrastructure investment on the public sector budget of the GoB. |
|
Environmental Assessment |
Category FI |
|
Project Processing Stage |
Fact-Finding Mission Completed : 26 October 2007 |
|
Project Officer |
Peter Marro (632-5193), Governance, Finance and Trade Division, SARD; pmarro@adb.org |
|
Multisector
|
|
Project Name |
(N) Emergency Disaster Damage Rehabilitation (Sector) Project. |
|
Project Type and ID |
LOAN: BAN 41657-01 |
|
Executing Agency |
Ministry of Finance, Bangladesh Water Development Board, Local Government Engineering Department, Roads and Highways Department |
|
TA Amount (US$ million) |
120.00 |
|
Date of First Listing |
26 November 2007 |
|
Objectives and Scope |
The objective of the Project is to contribute to sustainable economic growth by minimizing the devastating impact of the severe floods and cyclone, and reducing future risk from similar hazard events. The Project will focus on priority areas, identified through consultation with the Government, the private sector, nongovernmental organizations, and other civil society organizations; and involving community participation. The Project includes capacity building and training to strengthen the Government's disaster preparedness by adopting cost-effective flood-resistant infrastructure design standards and improved early warning systems through increased subregional cooperation. The Project comprises five parts. Part A: Quick-disbursing component, executed by the Finance Division, Ministry of Finance, will provide import financing for essential commodities and inputs particularly for agriculture needed to mitigate the adverse impact of the floods and cyclone and quick recovery particularly of the crop losses in affected areas. In accordance with ADB's Disaster and Emergency Assistance Policy, the quick-disbursing component will finance only essential imports identified for an effective flood recovery program. Part B: Rural infrastructure component, executed by the Local Government Engineering Department (LGED) will rehabilitate and restore rural infrastructure in 21 districts, including 2,300 km of rural roads and 7,000 m of bridges and culverts. Flood and cyclone shelters will be built or repaired and provided with sanitary facilities to help communities, especially the poor, during future floods. Part C: Municipal infrastructure component, executed by LGED will rehabilitate urban infrastructure, including roads, drains, bridge/culverts, and footpaths and drains located in 27 municipalities. The works includes approximately 540 km of roads, 50 km of drains, and 660 meters of bridge/culverts. Part D: Roads component, executed by the Roads and Highways Department (RHD) will rehabilitate part of the 1,420 km flood-damaged national, regional, and district roads and 115 bridges and culverts, within the country's seven road zones. Part E: Water resources component, executed by the Bangladesh Water Development Board (BWDB) will rehabilitate flood control, drainage, and irrigation facilities, repair embankment breaches, and repair or replace water control structures, protective works, and canals under 256 subprojects in eight zones. |
|
Environmental Assessment |
B |
|
Project Processing Stage |
MRM Completed : 22 November 2007 |
|
Project Officer |
Stefan Ekelund (632-5512), Bangladesh Resident Mission, sekelund@adb.org |
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