Completion Report

Project Number: 39298-013 Loan Number: 2695 Grant Number: 0323 December 2020

Bangladesh: City Region Development Project This document is being disclosed to the public in accordance with ADB’s Access to Information Policy.

Currency Equivalents

Currency unit – taka (Tk)

At Appraisal At Completion

(7 October 2010) (31 December 2018) Tk1.00 = $0.01419 $0.01196 $1.00 = Tk70.47 Tk83.64

ABBREVIATIONS

ADB – Asian Development Bank DMDP – Dhaka Metropolitan Development Plan DMF – design and monitoring framework DPHE Department of Public Health Engineering EIRR – economic internal rate of return FIRR – financial internal rate of return GAP – gender action plan km – kilometer LGED – Local Government Engineering Department MCD – municipal capacity development MDS – management, design, and supervision O&M – operation and maintenance mld – million liters per day PMCU – project management and coordination unit PIU – project implementation unit PMU – project management unit RAJUK Rajdhani Unnayan Kartripakkha (capital development authority) SIDA – Swedish International Development Cooperation Agency TA – technical assistance WACC – weighted average cost of capital

NOTES

(i) The fiscal year (FY) of the Government of Bangladesh ends on 30 June. “FY”

before a calendar year denotes the year in which the fiscal year ends, e.g., FY2020 ends on 30 June 2020.

(ii) In this report, “$” refers to United States dollars.

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.

Vice-President Shixin Chen, Operations 1 Director General Kenichi Yokoyama, South Asia Department (SARD) Director Manmohan Parkash, Bangladesh Resident Mission (BRM), SARD

Team leader Marjana Chowdhury, Senior Project Officer, BRM, SARD Team members Kazi Akhmila, Safeguard Officer (Resettlement), BRM, SARD

Urmee Bhattacharjee, Associate Project Analyst, BRM, SARD Farhat Jahan Chowdhury, Senior Project Officer (Environment), BRM, SARD Nargis Fatima, Senior Operations Assistant, BRM, SARD Minhajur Rahman Khan, Associate Safeguard Analyst, BRM, SARD Tika Limbu, Principal Portfolio Management Specialist, BRM, SARD Nasheeba Selim, Senior Social Development Officer (Gender), BRM, SARD

CONTENTS Page

BASIC DATA I PROJECT DESCRIPTION 1 DESIGN AND IMPLEMENTATION 1

A. Project Design and Formulation 1 B. Project Outputs 3 C. Project Costs and Financing 6 D. Disbursements 6 E. Project Schedule 7 F. Implementation Arrangements 7 G. Technical Assistance 8 H. Consultant Recruitment and Procurement 8 I. Gender Equity 9 J. Safeguards 9 K. Monitoring and Reporting 10

EVALUATION OF PERFORMANCE 10 A. Relevance 10 B. Effectiveness 11 C. Efficiency 12 D. Sustainability 12 E. Development Impact 13 F. Performance of the Borrower and the Executing Agency 14 G. Performance of Cofinanciers 14 H. Performance of the Asian Development Bank 14 I. Overall Assessment 14

ISSUES, LESSONS, AND RECOMMENDATIONS 15 A. Issues and Lessons 15 B. Recommendations 15

APPENDIXES 1. Updated Design and Monitoring Framework 16 2. Project Cost at Appraisal and Actual 23 3. Project Cost by Financier 24 4. Disbursement of ADB Loan Proceeds 26 5. Contract Awards of ADB Loan Proceeds 27 6. Project Implementation Schedule 28 7. Chronology of Major Project Events 29 8. Project Implementation Structure 31 9. Technical Assistance Completion Report 33 10. Utilization of Consulting Services 44 11. Procurement of Works 45 12. List of Goods Procured 46 13. Implementation of Gender Action Plan and Achievements 47 14. Updated Social Safeguards and Resettlement Status 57 15. Environmental Safeguards and Management 58 16. Status of Compliance with Loan Covenants 60 17. Technology Transfer/Training/Seminars 72 18. Economic and Financial Analysis 74 19. ADB Financed List of Subprojects 88

BASIC DATA A. Loan Identification 1. Country People’s Republic of Bangladesh

2. Loan number and financing source

2695-BAN (Concessional Ordinary Capital Resources)

3. Project title City Region Development Project 4. Borrower People’s Republic of Bangladesh 5. Executing agency Local Government Engineering Department 6. Amount of loan $120 million (SDR76,894,000) 7. Financing modality Sector lending

B. Loan Data 1. Appraisal

– Date started – Date completed

20 June 2010 6 July 2010

2. Loan negotiations – Date started – Date completed

10 October 2010 10 October 2010

3. Date of Board approval 10 November 2010 4. Date of loan agreement 10 August 2011 5. Date of loan effectiveness

– In loan agreement – Actual – Number of extensions

90 days from 10 August 2011 23 September 2011 0

6. Project completion date – Appraisal – Actual

31 December 2016 30 June 2018

7. Loan closing date – In loan agreement – Actual – Number of extensions

30 June 2017 31 December 2018 2

8. Financial closing date – Actual

29 May 2019

9. Terms of loan – Interest rate – Maturity (number of years) – Grace period (number of years

1.0% during grace period and 1.5% thereafter 32 8

10. Disbursements a. Dates

Initial Disbursement 3 April 2012

Final Disbursement 05 February 2019

Time Interval 82 months

Effective Date 23 September 2011

Actual Closing Date 29 May 2019

Time Interval 92 months

Source: Asian Development Bank record.

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b. Amount (USD ‘000)

Category Original

Allocation (1)

Increased during

Implementation (2)

Canceled during

Implementation (3)

Last Revised

Allocation (4=1+2–3)

Amount Disbursed

(5)

Undisbursed Balance (6 = 4–5)

Works 69,180 9,100 - 78,280 78,280 0 Equipment and vehicles (net of tax)

20,260 9,670 10,590 10,590 0

Consulting services (net of tax)

14,210 4,800 9,410 9,410 0

Office O&M (net of tax)

2,260 - 80 2,180 2,180 0

Interest charges 3,030 202 10 3,020 3,020 0 Unallocated 11,060 - 11,060 -

Advance account - - Total 120,000 9,100 25,620 103,478 103.478 0

ADB = Asian Development Bank, O&M = Operation & Maintenance. Source: ADB Loan Financial Information System.

C. Project Data 1. Project cost ($ million)

Cost Appraisal Estimate Actual

Foreign exchange cost 120.00 124.45 Local currency cost 50.00 40.62

Total 170.00 165.07

2. Financing plan ($ million)

Cost Appraisal Estimate

Cofinancing Actual

A. Implementation cost

Borrower financed 50.00 40.62 ADB financed (Loan 2695) KfW financed (Grant) SIDA financed (Grant 0323)

116.97 14.86 13.00

100.46 11.35

9.62

Total implementation cost 166.97 30.59 162.05

B. Interest during construction costs

Borrower financed 0.00 0.00 ADB financed 3.03 3.02 Total interest during construction cost 3.03 3.02

Total Implementation Cost and IDC (A+B) 170.00 165.07

ADB = Asian Development Bank, IDC = Interest during construction, PCR = Project Completion Report, SIDA = Swedish International Development Cooperation Agency. Source: ADB loan financial information system and government Project Completion Report.

3. Cost breakdown by project component ($ million) Component Appraisal Estimate Actual

A. Base cost 1. Civil works 93.49 131.44 2. Equipment and vehicles 28.97 12.07 3. Consultants 16.34 14.34 4. Land acquisition and resettlement 5.64 0.14

5. Recurrent costs (salary and allowances) 2.91 1.89 6. Office operation and maintenance 2.60 2.18

Subtotal A 149.95 162.05

B. Contingencies 17.03 0.00 C. Interest during implementation 3.03 3.02

Total project cost (A+B+C) 170.00 165.07

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Source: ADB loan financial information system, technical assistance information system, and government project completion report. 4. Project schedule

Item Appraisal Estimate Actual

Date of contract with consultants August 2011 June 2012 Completion of engineering designs December 2011 September 2012 Civil works contract Date of award September 2012 May 2013 Completion of work August 2016 October 2018 Equipment and supplies Contract dates First procurement September 2012 September 2012 Last procurement August 2016 April 2018 Completion of equipment installation May 2017 December 2018 Start of operations Completion of tests and commissioning May 2017 December 2018 Beginning of start-up June 2017 March 2019 Other milestones

5. Project performance report ratings

Implementation Period Single Project Rating

From Q2 2011 to Q4 2011 From Q1 2012 to Q1 2013 From Q2 2013 to Q2 2013 From Q3 2013 to Q4 2017 From Q1 2018 to Q1 2018 From Q2 2018 to Q4 2018 From Q1 2019 to Q1 2019 From Q2 2019 to Q3 2019

On track On track

Potential problem On track

Potential problem On track

Potential problem On track

D. Data on Asian Development Bank Missions

Name of Mission Date No. of

Persons

No. of Person-

Days

Specialization of Members

Inception mission 14–21Sep 2011 2 14 b, i Loan review mission 17–20 Apr 2011 2 6 b, i Loan review mission 3–8 Sep 2012 2 10 b, i Loan review mission 27 Feb–04 Mar 2013 2 10 b, i Loan review mission 3–9 July 2013 2 12 b, i Loan review mission 8–18 Sep 2013 2 20 b, i Loan review mission 20–27 May 2014 5 35 a,g,h,I,j Loan review mission 13–19 Nov 2014 5 30 a,g,h,I,j Loan review mission 20–27 May 2014 8 56 a,b,g,h,I,j Midterm review mission 15–23 Apr 2015 8 64 a,g,h,I,j,k,l Loan review mission 10–18 Nov 2015 7 56 a,g,h,I,j,k,l Loan review mission 19–25 Sep 2016 5 30 a,g,I,j,h

Loan review mission 1–9 Nov 2017 8 64 a,c,g,h,i,j,k,l Loan review mission 1–10 Apr 2018 6 54 a,d,g,I,k,l Loan review mission 2–9 Dec 2018 6 54 a,d,g,I,k,l Project completion review 23–31 Aug 2020 5 5 a,b,c,m

a = analyst, b = social sector specialist, c = consultant or specialist, d = control officer, e = programs officer, f = procurement officer, g = gender officer or consultant, h = Swiss Agency for Development and Cooperation staff, i = project officer, j = KfW staff, k = environment officer or specialist, l = social and/or resettlement officer or specialist, m = project assistant.

PROJECT DESCRIPTION 1. Bangladesh is urbanizing rapidly. Large cities and surrounding secondary towns have been agglomerating with close economic and social links, forming city regions. Industrial clusters are emerging in agglomerated cities, which have been a driving force of the national economic growth. At current rates of growth, the country’s urban population is estimated to double by 2035 to 74 million. 1 However, the development has taken place in an unplanned way, especially since the 1990s. In the absence of a comprehensive framework for integrated planning and coordination among the municipalities, the city regions have been unable to realize their full development potential. Based on coherent urban regional planning, the City Region Development Project (CRDP) was designed to improve the urban environment and increase the growth potential and environmental sustainability of two city regions, Dhaka and Khulna.2 With coherent regional urban planning, the CRDP sought to close the development gap in eight districts with through sustained improvements in the urban environment impacting the quality of life in 49 pourashavas (municipalities) and five city corporations with potential for economic growth and tourism.3 2. On 10 November 2010, the Asian Development Bank (ADB) approved the City Region Development Project, which comprised a loan of $120 million from ADB’s concessional ordinary capital resources, and two technical assistance (TA) projects—Strengthening Regional Planning and Governance, and Energy Efficiency Improvement.4 The loan agreement was signed on 10 August 2011 and declared effective on 23 September 2011. Both the TA agreements were signed on 28 December 2010 and declared effective on the same day. The Local Government Engineering Department (LGED) under the Ministry of Local Government, Rural Development and Cooperatives was the executing agency of the project. Project implementation was physically completed on 30 June 2018 and financially closed on 29 May 2019. 3. The expected impact of the project was the enhanced growth potential and environmental sustainability of the two city regions, and the expected outcome was improved urban environment and infrastructure services based on effective regional and urban planning. The outputs were enhanced capacity of crucial urban infrastructure, improved urban planning, and strengthened municipal management and capacity.

DESIGN AND IMPLEMENTATION A. Project Design and Formulation 4. The project is one of the priority projects of the government as it is directly consistent with the strategic blocks and supporting strategies, special urban development goals, and relevant policy matrices of Bangladesh’s Revised Poverty Reduction Strategy Paper – II.5 The revised strategy paper emphasized development of infrastructure as a prime need for boosting commercial, economic, and social development activities in urban areas. The project remains

1 Government of People’s Republic of Bangladesh. Bangladesh Bureau of Statistics. 2005. Population and Housing

census. Dhaka 2 ADB. 2010. Report and Recommendation of the President to the Board of Directors. Proposed Loan and Technical

Assistance Grant to the People’s Republic of Bangladesh for the City Region Development Project. Manila. 3 List of project implementation units is in Appendix 9. 4 The Technical Assistance for Strengthening Regional Planning and Governance was financed from ADB's

Technical Assistance Special Fund IV for $0.675 million, and the Technical Assistance for Energy Efficiency Improvement was financed from the Asian Clean Energy Forum (ACEF) for $1.5 million.

5 Government of People’s Republic of Bangladesh. 2012, Bangladesh’s second Poverty Reduction Strategy Paper – “Step Towards Change: National Strategy for Accelerated Poverty Reduction II (NSAPR II). https://www.imf.org/external/pubs/ft/scr/2012/cr12293.pdf

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relevant at completion as a result of its second phase (the Second City Region Development Project is under implementation).6 The project remains aligned with the objectives and priorities of the urban sector strategy defined in the government’s 7th Five-Year Plan (2016–2020);7 the Local Government (Pourashava) Act, 2009; and the Coastal Development Strategy, 2006. The project continues to be consistent with ADB’s country partnership strategy, 2016–2020 for Bangladesh, and is aligned with ADB’s Strategy 2030 operational priorities.8 The project is also aligned with Sustainable Development Goals 6,11, and 13.9 5. The original project design was consistent with ADB’s country strategy and program, 2006–2010 for Bangladesh.10 Urban development was a focus area of the strategy and program, and the project was designed to directly contribute to the key outcomes of social development and sustainable economic growth. Since the long-term investment requirements of the city regions are huge, the project was designed to (i) directly fund crucial infrastructure and (ii) complement ongoing and planned future projects.11 Its design also reflected lessons learned from the previous interventions and takes into account recommendations of the sector program assistance evaluation.12 The city region approach of agglomerating large metropolitan cities, secondary towns, and peri-urban areas has been quite effectively managed and implemented under the project. Many municipalities covered under the project have achieved remarkable improvements in infrastructure and municipal governance. The project was designed to invest in multiple municipalities within the two city regions, engaging them constructively in the establishment of a coherent regional development plan. The Dhaka Metropolitan Development Plan (DMDP)13 update undertaken by the project was strategically critical to the preparation of feasibility studies for a clear plan and to supporting long-term engagement with a specific focus to the need for future projects. 6. The project used the sector lending approach in identifying subprojects and conducted feasibility studies based on the sample subprojects assessed at appraisal. All subprojects were selected as per the subproject selection criteria and feasibility studies of each subproject included technical, economic, financial, environmental, and social assessment. Series of stakeholders’ consultation and discussions were conducted with relevant departments while selecting the subproject. The sector lending approach for the project was appropriate as it reflected the government’s capacity to address large-scale development challenges effectively in the urban sector, besides offering flexibility in subproject selection and timelines for implementation. At the implementation stage, the management, design, and supervision (MDS) consultants conducted the detailed assessment to finalize the remaining subprojects following subproject selection criteria and as demanded by project implementation units (PIUs). Based on the demand of

6 ADB. 2019. Report and Recommendation of the President to the Board of Directors: Second City Region

Development Project. Manila. 7 Government of People’s Republic of Bangladesh, Planning Commission. 2015. 7th Five-Year Plan, FY2016–

FY2020: Accelerating Growth, Empowering Citizens. Dhaka. 8 ADB. 2016. Country Partnership Strategy: Bangladesh, 2016–2020. Manila. 9 United Nations Sustainable Development Goals: Goal 6: Ensure access to water and sanitation for all; goal 11:

sustainable cities and Communities;' and goal 13: climate action. https://www.un.org/sustainabledevelopment/ water-and-sanitation.

10 ADB. 2005. Country Strategy and Program: Bangladesh, 2006–2010. Manila. 11 For example, water supply in Dhaka is supported by ADB. 2007. Report and Recommendation of the President to

the Board of Directors: Proposed Loan to the People’s Republic of Bangladesh for the Dhaka Water Supply Sector Development Program. Manila; the Dhaka Water Supply Project II (planned in 2012); the water supply in Khulna in the Khulna Water Supply Project (planned in 2011); transport in Dhaka by the Greater Dhaka Sustainable Urban Transport Corridor Project (planned in 2012); and solid-waste management in Dhaka and Khulna by ADB. 2009.

12 Sector Assessment Summary: Multisector http://www.adb.org/Documents/RRPs/?id=39298-01-3. 13 Dhaka Metropolitan Development Plan (1995–2015): structure plan, master plan, and detailed area plan for Dhaka

City. Dhaka 1997. http://www.rajuk.gov.bd/site/page/68c8d4af-f493-43de-a54c-b0dc83d56bff/-

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subprojects, a minor change in project scope was required, which was approved by ADB in June 2017.14 Accordingly, the output targets in the design and monitoring framework (DMF) were revised with specific indicators to better reflect the achievement of project outputs and outcomes. During the project implementation, because of higher demand, the drainage and roads components were increased, and other subprojects such as energy efficiency and household sanitation components were reduced. B. Project Outputs 7. The original DMF of the project had three outputs with 26 indicators, while the revised DMF had the same number of outputs but 21 indicators. The DMF was revised through an approved memorandum to better reflect the achievement of project outputs and outcomes (para. 6). The output targets achieved are summarized in paras. 8–17 and detailed in Appendix 1.

1. Output 1: Enhanced Capacity of Urban Infrastructure

8. Water supply. The following interventions or outputs described in the revised DMF of

the project were mostly achieved in the planned Pourashavas and municipalities: (i) The original target of 108 million liters per day (mld) of additional water production

capacity was revised to 40 mld with the revision of the DMF. At completion, 38.50 mld (96.3% of the revised target) were achieved.

(ii) For establishing new pipelines, the original target was 300 kilometers (km), which was revised to 127 km.15 At competition, 135.07 km (106% of revised target) of new pipeline network were laid.

(iii) 3.5 km (100% of revised target) of existing pipeline network was rehabilitated as per the revised DMF target of 3.5 km, while the original target was 158.0 km.

(iv) Women's participation in water and sanitation committees was 40% (133.0%, against the target of 30%). The targets were reduced to the extent required to meet the demand of the respective PIUs and to be achievable within the remaining project period.

9. Sanitation. The original target was to provide sanitation facilities to 107,000 households, of which at least 30% were to be headed by women; and community-based organizations established for primary collection were to have at least 30% female representation. At implementation, a detailed assessment was conducted to finalize the subproject considering the requirements provided by the city corporations and Pourashavas and urban centers. Based on that assessment, the target was not pursued as it was found not feasible.16 Instead, the target was revised to construct seven new public toilets and rehabilitate eight public toilets with fecal sludge management systems. The revised target has been fully met.17

10. Solid-waste management. The original target was to collect and dispose of 300 tons of solid waste per year. During DMF revision, the indicator was revised to build one solid-waste management facility, which was constructed in Jashore Pourashava. The newly built plant was a

14 Memorandum for approval of minor change in scope, reallocation of loan proceeds, and extension of loan closing

date. 11 June 2017. Dhaka. 15 The target set during appraisal was an indicative target following sector lending approached. Target was revised

during implementation as per the need of the PIUs 16 Community based sanitation at vital public places were more needed and found feasible in City Corporations rather

than household sanitation. 17 Seven new public toilets were built as follows: three in GCC, one in NCC, two in KCC, and one in Bagerhat

pourashava; eight public toilets facilities in Gazipur City Corporation were renovated.

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bigger scale, covering 5.65 hectare with capacity to handle waste from neighboring Pourashavas and/or unions. The plant was designed to transform a crude uncontrolled dump site into a controlled landfill site with resource recovery. It is fully equipped with solid-waste management infrastructure with 90 secondary stations and is handling 35–42 tons of waste per day. This has improved the efficiency of waste collection per day by 60% and reduced the number of days for uncollected waste by 71%. The plant consists of landfill cells, a waste sorting facility, a compost plant, a pretreatment plant, a fecal sludge management facility, a wastewater treatment facility, a biogas plant, and other necessary equipment and infrastructure. It also has a separate unit to treat medical waste. The plant is currently producing 2 tons of compost per day and generating 192 kilowatt-hours of electricity from biogas. The plant is energy neutral and has the capacity to generate surplus energy in future. The plant can cover all the waste of Jashore Pourashava and adjacent union parishads ({lowest administrative tier of the government}), covering around 60,000 households. The project supported the running of a program which involved seven Community based organizations in awareness raising through courtyard meetings, door-to-door visits, and consultations for efficient waste management (Appendix 13). 11. Urban transport. The output targets were fully achieved as planned. A total of 258.77 km of roads (101.5% of revised targets) were improved in four city corporations, 12 Pourashavas, and 34 urban centers (details in Appendix 1) against the revised target of 255.00 km (while the original target was 76.00 km). The project also improved traffic management in Banani area of the Dhaka North City Corporation. The target was increased per demand of the PIUs and it improved civic facilities of the city dwellers. 12. Drainage. The original target was to construct 54 km of new drainage network and rehabilitate 78 km of existing drainage network. With the revision of the DMF, the target was revised to improve 210 km of drainage and re-excavate 19 km of canals. At completion, 213.67 km of drainage (101.7%) outfall was rehabilitated, and 18.81 km of the canal was re-excavated (details in Appendix 1). The re-excavation of canals was added during the implementation to reduce waterlogging in coastal project areas. 13. Energy efficiency program. The original target to install 80 energy efficient pumps and 14,000 solar powered lights over 480 km of streets was revised to six energy efficient pumps and 3,063 solar powered lights with the revision of the DMF. At completion, the revised targets were fully achieved.18 During the project design phase, one subproject for solar streetlighting under the energy efficiency program was designed as a pilot which was to be replicated in other PIUs. However, during implementation, no such energy efficiency program was requested by the PIUs. Instead, more urban transport and drainage subprojects were demanded. The assessment undertaken by the attached Technical Assistance for Energy Efficient Improvement concluded that an energy efficiency subproject was not feasible considering the high costs compared to the lower benefit. A small pilot program for streetlighting and to revitalize an inner-city area at Shakhari Bazar could not be undertaken as the inhabitants of the subproject area under the Dhaka South City Corporation did not agree. Instead, beautification of a park, open spaces, and footpaths in the Pourashavas and city corporations was undertaken, and that helped small businesses, increased economic activity, and generated employment.

2. Output 2: Improved Urban Planning

18 Six energy efficient pumps were installed in Gazipur City Corporation; 3,063 solar-powered lights were installed in

Tongi area of Gazipur City Corporation.

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14. The project supported update of urban development plans and formulated a framework of coherent regional development. The current DMDP (1995–2015) was updated for 2016–2035 to reflect the continued socioeconomic development of the Dhaka city region. This study dealt primarily as envisaged in the terms of reference with the capital development authority (RAJUK) and the Dhaka metropolitan area. The plan preparation included extensive consultation with all community groups, local institutions, and elected representatives. The review put particular emphasis on protecting the urban environment, considering the impacts of urbanization and industrial activities on water bodies. 15. Of the following four performance indicators, two have been fully achieved and two were partly achieved:

(i) The DMDP was reviewed and updated as per the Dhaka Structural Plan (2015–2035) which is under implementation. Fully achieved.19

(ii) Consultation meetings for the DMDP were held with 12% female participation against the target of 30%. The low participation of women was a result of there being few female staff members in RAJUK. Partially achieved.

(iii) Against the target of eight urban planners to be posted in category A Pourashavas, only six were recruited and posted in the designated Pourashavas.20 Kaliakoir and Mongla port Pourashavas could not recruit urban planners. Partially achieved.

(iv) Training for urban planners imparted. Five urban planners recruited were trained in two workshops. Municipal capacity development (MCD) consultants prepared the urban planning manual on updating the master plan and land use plan for urban planners and facilitators. Fully achieved.

3. Output 3: Strengthened Municipal Management and Capacity

16. The project supported municipal capacity building in the areas of property tax collection, public participation, and urban planning. Public participation was ensured through citizens’ committees with broad representation, including women and the poor. The project performance monitoring and support targeted capacity building programs focusing on urban planning, financial management, and resource mobilization. The capacity development programs were aligned with the activities to meet the performance criteria. 17. Out of the following four performance indicators, all have been fully achieved or exceeded:

(i) Per target, two workshops were held consisting of participants from all municipalities with 25% female participants against the target of 30%.

(ii) The target of 5% improvement of annual property tax was achieved. Complete annual tax information for fiscal year (FY)2015–FY2019 was available for eight pourashavas and one city corporation. Total property and holding taxes for these nine PIUs increased by 9% annually. The range of increases were from –7% in FY2016 to 73% in FY2017 in Mongla port pourashava. Kaliakoir Pourashava experienced a 16% decrease in FY2018 that recovered in the succeeding year to a 24% increase. Property tax collection increased because of enhanced economic activities and infrastructure development within the pourashavas. People were more willing to pay taxes because of the improved infrastructure in the project areas.

19 RAJUK. 2016, The Dhaka Structure Plan (2015–2035). Dhaka. http://www.rajuk.gov.bd/site/page/68c8d4af-f493-

43de-a54c-b0dc83d56bff/-# 20 Six urban planners were posted: in Jashore, Manikganj, Narshingdi, Noapara, Tarabo, and Savar.

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(iii) The target of holding regular citizen meetings with at least 30% female participants was achieved. Regular citizen committee meetings through town coordination committees and ward coordination committees were held.21 Through the meetings the voices of women were raised, and their concerns were discussed at an appropriate level. All major decisions in Pourashava administration and development required endorsement by the town coordination committees (Appendix 13).

(iv) A total of 36 urban centers were selected for peri-urban management enhancement activities. Concept plans for these urban centers were developed. Of the 36 urban centers, work could not be done in Keraniganj and Morrelganj, as feasible subprojects could not be identified, and five were financed by the Swedish International Development Cooperation Agency (SIDA). In coordination with the LGED, the growth centers within the periphery of selected Pourashavas were selected for urban centers during project implementation as they were not identified during the project design.

C. Project Costs and Financing 18. The project was implemented within the estimated cost of $170 million, including taxes, duties, and interest charges on the loan during implementation. ADB’s share of financing was estimated at $120.0 million, or 70.6% of total costs at appraisal, including $3.3 million for interest charges during construction. Government financing was estimated at $50.0 million, or 29.4% of total cost, comprising $40.8 million for investment (civil works, equipment and vehicles, consultants, land acquisition, and taxes and duties), $3.2 million for recurrent costs, and $6.0 million for contingencies. After the loan effectiveness, SIDA and KfW entered cofinancing agreements with grants of $13.00 million (SIDA) and $14.86 million (KfW). The actual project cost at completion was $165.07 million (97% of the estimate at appraisal). Comparison of costs at appraisal and at completion is given in Appendix 2. Overall, the project was completed within the allocated funds. There was a cost overrun of 41% in civil works, for inclusion of urban transport and drainage in all selected PIUs; a cost underrun of 58.3% for procuring equipment and vehicles because of competitive bidding; and a 97.5% saving in allocated costs for acquisition and resettlement as no land acquisition was required, and resettlement costs during project implementation were less than envisaged. 19. With SIDA and KfW finance, the financing levels of ADB and the government were reduced. Of the total cost of $165.07 million at completion, the financing levels were as follow: (i) ADB $103.48 million (62.7%) for civil works, equipment and vehicles, consultants, office operation and maintenance, and interest charges during construction; (ii) SIDA $9.62 million (5.8%) for civil works; (iii) KfW $11.35 million (6.9%) for civil works and consultants; and (iv) the government $40.62 million (24.6%) for civil works, duties and value-added taxes, other taxes, land acquisition and resettlement, and salaries of project staff. Details of the cost at appraisal and at completion by financiers is given in Appendix 3.

D. Disbursements 20. ADB disbursed the loan proceeds following its Loan Disbursement Handbook (2007, as amended from time to time). The appraisal disbursement schedule was generally realistic, picking

21 A total of 157 town coordination committee meetings were attended by 6,470 members, of whom 2,161 were

women (33%), and 1,295 ward coordination committee meetings were held with 12,825 members, of whom 5,430 were women (42%).

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up slowly and ending with higher disbursement by the original project completion date. About 60% of the loan proceeds were disbursed during 2014–2016. Actual disbursements took longer as the loan closing date was extended to December 2018. The first disbursement took place 17 months after the loan approval because of the delay in loan signing. Loan account closing took more time for liquidation of advances and settlement of all claims by the executing agency. Appendixes 4 and 5 provide the annual and cumulative disbursements and contract awards of ADB loan proceeds. All disbursements were made for the intended purpose of the loan and were verified and confirmed by the audit reports for each financial year. The loan account was closed on 29 May 2019. E. Project Schedule 21. The project was expected to be physically completed by 31 December 2016, but it was extended twice by 1 year to 31 December 2018. The loan extensions were necessary to bridge the gap for implementation of the upcoming City Region Economic Development Investment Program22 to facilitate smooth transition from the City Region Development Project. At the start there was a delay in approving the government development project proposal for KfW financing and the government approval process, hence recruitment of a consultant was delayed, and the first work contract was also delayed by 9 months. However, the project later covered the start-up delay substantially and most of the works were completed within the original loan period, except a solid-waste management subproject, the contract award for which was delayed by 19 months because of a shift in the original location (Narayanganj City Corporation). Because of the unavailability of land in Narayanganj, the subproject was shifted to Jashore Pourashava and the works were completed by the revised closing date of 31 December 2018. This triggered a project extension, and the loan was financially closed on 29 May 2019. The project implementation schedule, comparing appraisal estimates with actual occurrences, is in Appendix 6, and the chronology of the project’s major events is in Appendix 7. F. Implementation Arrangements

22. The project implementation arrangement was challenging, with a single executing agency coordinating several implementing agencies under multiple departments and city corporations. Under the coordination of the LGED as the executing agency of the project, the key implementing agencies—the Dhaka North, Gazipur, Khulna, and Narayanganj city corporations; the Department of Public Health Engineering (DPHE); Pourashavas; and RAJUK—implemented the project. The LGED played a pivotal role in the interagency coordination for decision making for liaising with ADB and other development partners. As envisaged, the project management and coordination unit (PMCU) under the LGED was approved by the project oversight body (an interministerial steering committee) and (i) undertook due diligence, procurement, and evaluation; (ii) supervised the detailed designs and construction; (iii) oversaw project accounting and auditing; (iv) monitored implementation of the institutional strengthening and capacity development action plan; (v) implemented hygiene and sanitation activities; (vi) monitored and guided safeguards compliance; and (vii) prepared the progress reports. The PMCU coordinated 29 project implementation units (PIUs)—four in city corporations, 12 in pourashavas, six in LGED offices, six in DPHE offices including one in DPHE headquarters, and one in RAJUK. The project implementation structure and the list of PIUs are in Appendix 8.

22 The City Region Economic Development Investment Program was later named the Second City Region

Development Project.

8

G. Technical Assistance

23. Project preparatory TA for preparing the City Region Development Project supported assessment of the technical, environmental, financial, economic, social, and institutional feasibility of the project. The TA was detailed and identified the specific infrastructure subproject needs in the project areas. The project design needed a high level of stakeholder and beneficiary participation and ownership. The DMF was developed with specific and measurable performance indicators, sources of information, and associated risks and assumptions. However, the DMF was revised during implementation for coherent regional development based on the PIUs' demand (paras. 6–7). 24. There were two TA projects attached to the loan project: (i) Strengthening Regional Planning and Governance, funded by ADB; and (ii) Energy Efficiency Improvement, funded by the Asian Clean Energy Forum. 25. The TA for Strengthening Regional Planning and Governance reviewed two acts and one rule of the government and recommended a wide range of proposals to address urban governance issues through strengthened urban planning and a metropolitan governance system. The TA was rated relevant in implementing and achieving the outcome and outputs designed in the DMF of the City Region Development Project. It was rated effective in delivering the outcome and outputs of the related loan project through the results from the TA in terms of draft bills for a proposed Town Improvement (Amendment) Act and Town Improvement (Amendment) Act 2012. The TA was rated efficient, although the TA implementation period was 7 months longer than envisaged. The final TA report was completed in December 2012, ahead of the planned 30 April 2013. Financial management of the TA was also effective, with 95% of the allocation utilized. Government in-kind contribution was adequate and timely. Overall, the TA was rated successful. 26. The TA for Energy Efficiency Improvement implemented the pilot demonstration subproject by replacing old fluorescent tube lights with new solar powered and energy efficient light emitting diode bulbs in Tongi Pourashava. The TA was rated relevant as it focused appropriately on energy savings in streetlights and water pumps covering about 98% of demand of a municipality. The TA was rated less than effective as the results of the TA were not pursued during implementation of the City Region Development Project, except for streetlighting at Tongi pourashava and replacement of six water pumps in Gazipur City Corporation. The TA was rated less than efficient and utilized only 65% of the allocated resources while delivering the reduced output. The TA needed an extension of 5 months. However, the final TA report was prepared within the revised TA closing date of 31 December 2013. The LGED’s in-kind contribution was adequate and timely. Overall, the TA was found to be less than successful. H. Consultant Recruitment and Procurement

27. Consultants were recruited following the quality- and cost-based selection procedure and ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time). Three consulting firms and nine individual consultants were recruited under the project. The executing agency recruited an international consulting firm as the MDS consultant. MCD consultants were recruited for capacity development of the municipalities, and a regional development planning consultant supported the update of the Dhaka Structure Plan. The performance of the MDS, MCD, and regional development planning consultants was satisfactory. Initially, the selection of the MDS consultant took 19 months because of the lengthy recruitment process, which caused start-up delays in the project. Close monitoring of the MDS consultant and the removal of a few nonperforming MDS personnel by the PIU led to the optimal utilization of MDS consultant services

9

and improved the delivery of outputs. Details of consultants’ contracts and utilization are in Appendix 10. 28. Procurement of civil works, goods, and related services followed ADB’s Procurement Guidelines (2010, as amended from time to time). Standard bid documents for the procurement of civil works and goods were used, leading to standardization and quality control. The procurement of the first civil works contract was delayed by 5 months from that planned at appraisal because of the delayed recruitment of consultants as detailed design works from the consultants were required for the procurement process to commence. The first award of contract was delayed by 4 months and it took more than 2 years to complete the construction of about 2.5 km of drain. The delay was mainly because of the delay in obtaining road-cutting permission from concerned pourashavas. The list of major civil works contracts is in Appendix 11. 29. Procurement of goods comprised two contracts. The first package was for procurement of three service vehicles, 10 pick-up trucks, and two microbuses. It took 8 months from preparation of the bidding document to contract signing and 1 month for contract completion. The second package was for the procurement of solid-waste management equipment in Jasshore. The procurement process started late; the Invitation for bid was published on 21 September 2017, the contract was signed on 4 April 2018 (6.5 months), and the contract was completed on 28 November 2018. The suppliers delivered equipment according to design and technical specifications. The list of contract packages for procurement of goods is in Appendix 12. I. Gender Equity 30. The project was categorized effective gender mainstreaming and had a gender action plan (GAP). The progress on the GAP is presented in Appendix 13. It had two activities and 13 quantitative targets. The implementation of the GAP was successful as 100% of activities were completed and 85% of quantitative targets were achieved. These achievements resulted in practical and strategic gender benefits for poor women beneficiaries, such as increased food quantity and quality for families, safer and more convenient mobility for women in public places with the provision of sex-segregated toilets in public places, and better management of households' solid waste. The project activities enhanced the economic condition of women and their participation in project activities enabled gender equality in decision making, human development, and leadership. J. Safeguards 31. The project was categorized B for involuntary resettlement and C for impacts on indigenous peoples according to ADB's Safeguard Policy Statement (2009). Initially, five subproject resettlement plans were prepared and disclosed on the ADB website. Among them, involuntary resettlement impacts for Ashulia and Gazipur were avoided through design alternatives, and two other subprojects were dropped. Involuntary resettlement was triggered only in one section for the Banani subproject in Dhaka. All expenses related to resettlement were funded by the government. The implementation of RP has been satisfactory. A grievance committee was established, and no unresolved grievances remained at the end of the project. The project regularly submitted semiannual monitoring reports. The updated status is attached in tabular form in Appendix 14. 32. The project was categorized B for environment during appraisal and implementation as the adverse impacts of the subprojects were short term and site specific, and mitigation measures were readily available. In accordance with ADB’s Safeguard Policy Statement, an environmental

10

assessment and review framework was prepared to guide subproject selection, design, and assessment during implementation. During appraisal and implementation, seven initial environmental examinations including environmental management plans were prepared and disclosed. Over the project tenure, eight environmental monitoring reports were prepared and disclosed on ADB’s website. Three subprojects required environmental impact assessments in accordance with Government Act and Rules.23 Details of environmental safeguards and the management plan are in Appendix 15. K. Monitoring and Reporting 33. All four covenants in Section IV of the loan agreement were complied with. Covenants for the imprest account and statement of expenditures (Schedule 3, para. 6) were complied with. Out of 13 assurances (Schedule 5) of the loan agreement, 12 were complied with. One assurance for developing a project website was partly complied with. The project website that was developed was integrated with the LGED’s website.24 The audit report of FY2019 identified four audit observations. The LGED, through the line ministry Local Government Division (LGD), submitted the broadsheet replies on audit observations to the foreign-aided audit directorate for resolving the observations. Appendix 16 provides the status of compliance with loan covenants. 34. Monitoring and reporting arrangements, including completion of quarterly progress reports, semiannual safeguard reports, and project completion report, were complied with. The financial management arrangements of the borrower and the executing agency were robust. The counterpart funds were adequately provided. All audited project financial statements were submitted within the specified time, except for delays of 3.4 months in 2012 and 3.1 months in 2013. There are four unresolved audit observations which the borrower needs to close soon.

EVALUATION OF PERFORMANCE

A. Relevance 35. The project is rated relevant. It was relevant to the government’s development objectives and ADB’s country and sector strategies both at appraisal and completion (paras. 4–6). The project was relevant to ADB’s Strategy 202025 at appraisal and it remains relevant to ADB’s Strategy 2030 26 at completion, with its focus on building livable cities and providing safe and effective water and sanitation services. At completion, the project remains relevant to ADB’s policy focus on Bangladesh on areas of inclusive growth, resilient infrastructure, and environmental sustainability. It is aligned with the government’s 7th Five-Year Plan (2016–2020), Local Government (Pourashava) Act 2009, and the Coastal Development Strategy 2006. The project was in the government’s priority sector for urban policy, development, and the revised PRSP-II. It helped to mitigate some major challenges for cities such as waterlogging, river pollution, waste disposal, and environmental degradation, and contributed towards the achievement of Sustainable Development Goals 6,11, and 13.

23 Government of People’s Republic of Bangladesh. The Bangladesh Environment Conservation Act, 1995 and The

Environment Conservation Rules, 1997 24 Procurement details, such as a list of participating bidders, the names of winning bidders, basic details of bidding

procedures, the amount of contracts awarded, and list of goods and/or services procured, were not disclosed on the website.

25 ADB. 2008. Strategy 2020. The Long-Term Strategic Framework of the Asian Development Bank 2008–2020. Manila.

26 ADB Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific; July 2018.

11

36. Processing the project as a sector loan was appropriate given government capacity, subproject coverage and flexibility in subprojects selection (para. 6). The project design was responsive to the country’s agenda of sustainable infrastructure in city regions. Despite some design weaknesses in determining indicators (para. 6), the project results chain was sound—sample subprojects were indicative of project interventions and were appropriate to achieve the intended outcomes. The results chain continued to form the basis for identifying and assessing subsequent subprojects, resulting in realistic numbers of interventions at appropriate locations. Minor changes in the scope of the project and the DMF (para. 7, footnote 10) were timely and appropriate in response to emerging project realities, which optimized the use of loan proceeds and kept the project relevant. The project introduced an innovative solid-waste management subproject in Jashore Pourashava that turned into a successful model of the Pourashava itself showing a transformative effect (in making Jashore cleaner). KfW financing complemented the urban transport component in the Khulna City Corporation, which enhanced accessibility for the poor communities, increased the mobility of the residents, and improved the living conditions of the overall community. B. Effectiveness 37. The project is rated effective in achieving its intended target outcome and outputs (Appendix 1). It was effective, as eight of the nine outcome indicators were fully achieved, and one was not achieved. Similarly, three of the 21 output indicators exceeded the targets, 14 were fully achieved, two were substantially achieved, and two were partially achieved. The water supply component resulted in (i) asset creation; (ii) production, pumping, and distribution improvements and system loss reduction, thereby providing 10,320 households in four project areas with regular and reliable service; and (iii) additional water quantity through 138.5 km of piped network. The original target of reaching 202,000 households with access to water supply was revised to 6,550 during revision of the DMF, and at completion 10,320 households were covered (157.5% of the revised target). The sanitation component supported the improvement of 15 public toilets across four project locations. The integrated waste management facility in Jasshore Pourashava resulted in asset creation and systemic improvements and developed safe disposal systems for sewerage and has reduced 71% of uncollected solid-waste deposits within the entire municipality region. (para. 10) Besides the construction of new roadside drains, the urban drainage component rehabilitated drainage outfalls, reducing the incidence of waterlogging by 61% through 213.68 km of improved drains and 18.81 km of canal reexcavation in 13 project locations. Because of the infrastructure development in the Pourashavas, property and holding taxes for nine PIUs were found to be increasing by 9% annually. Energy efficiency cost savings were 7% in Mongla Pourashava and 100% in Savar Pourashava through installation of 3,063 solar-based streetlights. The urban transport component improved mobility, including access to economic opportunities for the poor, by eliminating vehicle idling time and traffic congestion. The travel time in the urban-center-based roads fell by 50.7%, but rose by 4.5% in city and adjacent areas. This increase is mainly because the number of vehicles on the city roads have increased since the road improvement, contributing to traffic congestion, which is a reality not to be ignored. Under the urban planning component, the Dhaka Structure Plan 2016–2035 was prepared by RAJUK. This plan reviewed the existing DMDP (1995–2015) and prepared a revised and updated strategic plan for the Dhaka Metropolitan Region for 2016–2035 considering the shift of underlying philosophies of spatial planning, the current situation, and future vision for the metropolitan region. 38. The project led to on-the-job learning for PIU staff, consultants, and contractors. Financial management systems were improved with double-entry accounting systems, municipal asset register management, and structured budgets that are disclosed to the public, improving transparency, accountability, and governance. The implementation of the GAP was also

12

successful as 100% of activities were completed (para. 30). The training programs effectively reoriented the staff of Pourashavas toward the professionalization of municipal services and better urban governance. Safeguard compliance reporting, monitoring, and management were rated effective (para. 31). C. Efficiency 39. The project is rated efficient. The economic internal rates of return (EIRRs) of the subprojects identified at appraisal were reevaluated following the ADB Guideline for the Economic Analysis of Projects27 and similar methodology as applied during the appraisal. During implementation, 21 subprojects have been selected, 13 of which were reevaluated at completion, including four infrastructure improvement subprojects (the same as at appraisal), and nine subproject Project Implementation Units (PIU) or Pourashavas. The reevaluated EIRR for the four infrastructure improvement subprojects are as follows: (i) water supply and sanitation in Gazipur 29.10% (appraisal 20.02%), (ii) solid-waste management in Jasshore 24.64% (appraisal 24.35%), (iii) urban services in Ashulia 38.04% (appraisal 35.22%), and (iv) integrated traffic management in Banani road 49.40% (appraisal 52.92%). The EIRRs of the nine subproject PIUs ranged from 13.08% to 37.45%, all above the 12% threshold. The EIRR for the overall project is at 15.96%. The EIRRs remain robust when tested against a 10% increase in operating and maintenance costs, and a 10% reduction in benefits. The delays in contract award (para. 27) for a few packages and marginal cost overruns in a few civil contracts (para. 17) did not affect the EIRR as they were counterbalanced by efficient implementation and increased service area coverage. The project implementation period was extended by 2 years, which has been incorporated in the EIRR evaluation. The project contributed to other benefits including environmental improvement, business expansion and employment generation, increased working hours, facilitation of from and to the market places, increased commodity price at growers’ level – however, these are difficult to quantify and are thus not evaluated. The economic reevaluation is in Appendix 18. D. Sustainability 40. The project is rated likely sustainable. Financial analysis has been conducted following ADB’s guidance note on financial analysis and evaluation for the revenue-generating subproject water supply and sanitation subprojects in Gazipur. The analysis entails the financial internal rate of return (FIRR) calculated based on the incremental costs and revenues from projects over time, which far outweigh the weighted average cost of capital (WACC). The financial reevaluation is presented in Appendix 18. The base-case FIRR of the water supply and sanitation subproject in Gazipur was recalculated to 11.94% (at appraisal 5.42%). The FIRR of the Water supply and sanitation subprojects exceeded the overall WACC of 3.9%, suggesting that the project was financially viable. 41. With the project intervention, the executing agency and implementing agencies have gained sufficient operational and technical capacity. The Pourashavas and city corporations were strengthened as part of the project implementation. Systemic improvements in the administrative capacities of the Pourashavas and line agencies have strengthened their internal processes, such as accounting systems and grievance redress mechanisms, transparency, and accountability of governance. The DPHE has adequate human resources and institutional capacities for the operation and maintenance of water supply assets that were installed in different Pourashavas, and the water supply interventions have improved the system efficiency and minimized losses,

27 ADB. 2017. Guidelines for the Economic Analysis of Projects. https://www.adb.org/documents/guidelines-economic

analysis-projects

13

enabling the DPHE to manage a more sustainable system focused on service delivery, benchmarking, and water conservancy. The solid-waste management infrastructure subproject at Jashore Pourashava is functional and an operation and maintenance plan has been developed and human resources dedicated. The plant is already generating Tk200,000 per month from selling the compost produced in the plant. All the Pourashavas have benefitted significantly from the project finance and urban governance system and are continuing with their human resources and institutional capacity augmentation initiatives for better municipal asset management and governance. The project has increased the land values from land pooling, slope stabilization, and water quality improvement, thus contributing to the higher financial revenue of implementing agencies. The project is assessed to be environmentally sustainable as it contributes to water and fuel resource conservation, the control of vector borne diseases, and water and noise pollution abatement, improving the quality of life and the urban environment. The project is also assessed to be socially sustainable, as the infrastructure interventions ensure continuous access to project benefits and economic opportunities. 42. The project design advance loan of $5 million helped prepare the Second City Region Development Project through greater readiness and reduced start-up delay. The advance loan also helped develop capacity in the sector. Timely continuation of the Second City Region Development Project helped in sector development intervention and will further contribute to improving sustainability in the sector. E. Development Impact 43. The project has had significant positive spillover effects, including contributing positively to improving the environment and living conditions of the targeted areas, improving civic facilities, and creating employment opportunities (short term and long term) for urban poor; improving drainage, sanitation, solid-waste management, roads, and traffic management, which has had a positive effect on areas covered under the project; improving communication facilities and speeding up trade and economic activities; and contributing positively including in easing waterlogging problems, reducing environmental degradation, and improving energy efficiency and public health. At project completion, local authorities recorded no residual environmental impact and people living along the project sites had neither submitted nor voiced complaints. The project enhanced the social and gender benefits for schoolchildren, women, and local communities through public awareness and hygiene promotion activities. The project introduced the women’s representation quota as per project design. 44. The development impact is rated satisfactory as the project contributed to the impact indicator of increased economic growth and sustained improvement in the urban environment and quality of life in the project areas. The provision of basic infrastructure and services in the project areas contributed significantly to increased access to economic opportunities, inclusive economic growth, social inclusion of the marginalized, and improved overall quality of life indices of its residents. For example, the improved infrastructure has contributed to income-generation activities that have increased from a 21%–40% trend before the project to a 41%–60% trend after project implementation.28 The project addressed the basic needs of the poor, particularly women, by reducing water fetching time and providing energy that attributed to economic and income-generating activities. The urban transport interventions have improved the riding quality and pedestrian safety, e.g., the time spent traveling has fallen by 50% in urban centers to approach the main roads (258.78 km of roads improved). The interventions have reduced waterlogging and

28 Local Government Engineering Department. 2017. Evaluation Survey Report for City Region Development Project.

Dhaka.

14

installed energy efficient pumps and streetlights; contributed to urban planning for update of the DMDP, which is a milestone for the government; reduced environmental degradation; and maintained gender equity. These factors are contributing to improved health and urban environment quality and are thereby helping to achieve the strategic objectives of the project. The project also contributed to the ADB results frameworks.29 F. Performance of the Borrower and the Executing Agency 45. The overall performance of the borrower, the Economic Relations Division, and the executing agency, the LGED, were satisfactory. Necessary counterpart funds and establishment of the PMCU headed by a project director were made available on time, and the entities responded positively to specific implementation issues and ADB recommendations from time to time. A permanent project director was assigned within 6 months of the project approval, and the director remained unchanged and led the project implementation throughout. The LGED coordinated well with all PIUs (DPHE, RAJUK, and pourashavas). The project complied with all loan covenants and reported the semiannual safeguards as per requirements. G. Performance of Cofinanciers 46. KfW and SIDA joined the project as cofinanciers, with their funds used for civil works. The performance of the cofinanciers was satisfactory. Fund flows from the cofinanciers were on time and as such the project did not face any funding problem. The cofinanciers were responsive to implementation challenges and active in resolving implementation issues. They participated in project review missions and provided their inputs in the aide-mémoire as needed. H. Performance of the Asian Development Bank 47. The overall performance of ADB is rated satisfactory. ADB conducted 12 review missions, including the inception mission in September 2011, the midterm review mission in April 2015, and the project completion review mission in August 2020. ADB’s oversight of procurement of goods, works, and consultants was adequate, and no-objection notices were provided in a timely manner. ADB’s capacity assessment of the executing agency and implementation agencies was adequate, which resulted in achievement of performance indicators in the project DMF. ADB responded in a timely manner and approved the government’s request for loan extension, minor changes in the scope, and reallocation of loan proceeds. I. Overall Assessment 48. Overall, the project is rated successful based on the ratings of relevance, effectiveness, efficiency, and sustainability. The project was relevant as it was consistent with government and ADB policies. It was effective as eight of the nine outcome indicators were fully achieved and one was not met; and three of the 21 output indicators exceeded the target, 14 were fully achieved, two were substantially achieved, and two were partially achieved. It was efficient as the reevaluated EIRR is higher than at appraisal, despite the implementation delay of 18 months. The project is likely to be sustainable as the reevaluated FIRR of 11.94% is higher than the WACC 3.9%. The overall ratings are summarized in the table.

29 OP 4.1: 51,600 people with new or improved water supply, and OP 4.1.2: 138.5 km of water supply pipes installed

or upgraded, and 258.76 km of urban roads rehabilitated

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Overall Ratings Criteria Rating

Relevance Relevant Effectiveness Effective Efficiency Efficient Sustainability Likely sustainable Overall assessment Successful Development impact Satisfactory Performance of borrower and executing agency Performance of cofinanciers

Satisfactory Satisfactory

Performance of the Asian Development Bank Satisfactory Source: Asian Development Bank.

ISSUES, LESSONS, AND RECOMMENDATIONS

A. Issues and Lessons 49. The city region approach has proven effective in improving the municipal governance and infrastructure. The key lesson learned from this approach is that municipalities need capacity development and close performance monitoring. Institutional capacity and community awareness will strengthen the municipal governance and sustainable delivery of services (para. 5). 50. Robust technical due diligence and a realistic feasibility study at appraisal could have avoided the scope change, reallocation, and loan extension (para. 6). Moreover, the DMF was not streamlined and nine indicators at the outcome level were excessive and some were not entirely attributable to the project outcome. 51. During project implementation, the PMCU at the LGED coordinated with 29 PIUs—four in city corporations, twelve in Pourashavas, six in LGED offices, six in DPHE offices including one in DPHE headquarters, and one in RAJUK. Such complex implementation arrangements should be avoided (para. 22). 52. The integrated solid-waste management facility at Jasshore may have a transformative effect in solid-waste management at the community level. Such facilities can be replicated in other municipalities for efficient waste management (para. 10). B. Recommendations 53. Future city region development projects should place more emphasis on capacity building and awareness programs for Pourashavas and consider infrastructure improvement in smaller municipalities to reduce the remaining infrastructure gap. 54. Future monitoring. Four audit observations remained unresolved, though no financial impact was noted, and the loan was closed on 29 May 2019 (para. 34). Follow-up for resolution of these observations is needed. 55. Further action or follow-up. The Dhaka Structure Plan, 2016–2035 is still in the draft stage and not gazetted or published by the government. Follow-up by RAJUK is needed to get approval from the relevant ministry. 56. Timing of the project performance evaluation report. As of November 2020, the facilities had not been utilized to their full capacity. The project evaluation may begin after 2021.

16 Appendix 1

UPDATED DESIGN AND MONITORING FRAMEWORK

Design Summary

Performance Targets / Indicators

Status of Achievements at Project Completion

1 2 3

Impact Enhanced growth potential and environmental sustainability

Improved investment and expansion of local business

Improved urban environment

Achieved. The survey1 in Khulna subproject recorded good improvement in business, resulting increased employment generation). 78% to 93% respondents agreed that their living standard has been scaled up due to CRDP interventions. Improved infrastructure is contributing to income generation activities that has been increased to the extent from 21%-40% to 41%-60% level. Reduced water logging from maximum 90% to maximum 13% saved time and loss in business due to reduced hours of working and loss of assets.

Achieved. Significant positive impact has been recorded in the “Evaluation Survey Report for CRDP (May 2017)” in terms of improved water supply and sanitation, solid waste management, urban transport management, drainage, and energy efficiency. The impacts are increased setting up of business and industrial enterprises, generating employment opportunities, reduction in water logging and incidence of water-borne diseases, and improvement of socio-economic conditions of people.

In terms of comparison between before and after CRDP intervention (improved drainage system, canal re-excavation, road improvement, solid waste management), helped in reducing water logging, specially, in the ward level, contributing better environment. Due to better solid waste management uncollected waste reduced and functioning of 15 public toilets also contributing to better environment. Source: Evaluation Survey Report for City Region Development Project, BISR Consultants Ltd, May 2017

Outcome Improved urban environment and infrastructure services based on effective regional and urban planning

WATER SUPPLY 1. Number of households with improved water supply (6,550)

Exceeded. Total 10,320 households covered with 138.57 km pipeline. A. Households covered (nos.):

1. Gazipur City Corporation : 6,000 2. Ashulia (Dhaka DPHE) : 1,520 3. Mirjapur (Gazipur DPHE) : 600 4. Jasshore (Jasshore DPHE) : 2,200

Total 10,320 5.

B. Improved Pipelines (kilometer): 6. Gazipur City Corporation : 50.00 7. Ashulia (Dhaka DPHE) : 32.00 8. Mirjapur (Gazipur DPHE) : 14.04 9. Jasshore (Jasshore DPHE) : 39.03

Total 135.07

1 Local Government Engineering Department. 2017. Evaluation Survey Report for City Region Development Project.

Dhaka

Appendix 1 17

Design Summary

Performance Targets / Indicators

Status of Achievements at Project Completion

1 2 3

SANITATION 2. Improved access to sanitation through public toilets (15 nos.)

SOLID WASTE MANAGEMENT 3. Reduced uncollected solid waste in Jessore (15% reduction)

URBAN TRANSPORT 4. Reduced travel time (30% reduction)

Source: LGED LGED: (A) List of households,

Achieved. Total 15 public toilets established and improved (7 newly constructed and 8 repaired/renovated). Newly Constructed (3 in Dhaka and 4 in Khulna region):

1. Dhisaram Bazar, Laxmipura, Gazipur City Corporation

2. Kanaiya Bazar, Gazipur City Corporation 3. Mirjapur, Gazipur 4. Uchitpur Upazila Complex, Narayanganj 5. Gilabari Upazila Complex, Khulna 6. Kotakhali Upazila Complex, Khulna 7. Rayenda Upazila Complex, Bagerhat

Repaired/Renovated (all under Gazipur City Corporation):

1. Mukta Mancha 2. Maddha Bazar 3. Joydebpur Bazar Over Head Tank side 4. Jpydebpur Fish Market 5. Rajbari Court 6. Harinal Bazar 7. Shimul Tali Bus Stand 8. BIDC Bazar.

Source: LGED (List of contracts)

Achieved. A fully equipped solid waste management infrastructure plant with 90 secondary stations was established at Jashore Pourashava. The Plant was handed over to the Pourashava in December 2018 and commenced operation in March 2019. The plant is fully operational through Pourashava’s approved O&M Plan. Waste collection per day: March 2020 : 40 tons March 2019 : 25 tons Efficiency improved: 60% Uncollected solid waste (day): March 2020 : 7 days maximum March 2019 : 2 days maximum Reduce : 71% Source: SWM Jashore Pourashava

Achieved with delay. Comparing the baseline and end line survey (May 2017), travel time was reduced by 11%-46% in Khulna City Corporation (41%) and four pourashavas; and increased by 33%-80% in five pourashavas with median average of

18 Appendix 1

Design Summary

Performance Targets / Indicators

Status of Achievements at Project Completion

1 2 3

5. Reduced traffic accidents (20% reduction)

DRAINAGE 6. Reduced water logging (30% reduction)

ENERGY EFFICIENCY 7. Saved energy costs (30% reduction)

increase of 11%. In total travel time count in above one city corporation and nine pourashavas: Base line survey: 112 minutes End line survey: 117 minutes Average increase: 4.5% Source: Evaluation Survey Report for CRDP (Table 3.28). LGED conducted a survey in September 2020 to assess reduction of travel time in the roads improved by CRDP from and to urban centers (UCs). The survey found that in average travel time has been reduced by 50.7%. Out of 36 urban centers under the project, three UCs were surveyed for seven improved roads (Ashulia, Dhaka; Bakra, Jhikorgacha; and Uchitpur, Narayanganj). Baseline time was taken for before completion of works in 2015. Not Achieved. Comparing before and after CRDP intervention, the traffic accident reduction was less than the target. Incidence of high traffic accident per week (5 times and above) was reduced by 0% to 67% among 11 project areas and increased by 10%-20% in two areas with an average reduction of 16%. Incidence of Moderate traffic accidents (3-4 times per week) reduced by 0%-54% in four areas and increased by 3%-44% in nine areas with an average of 11% increase. Incidence of Low traffic accidents (1-2 times per week) reduced by 0% to 34% in eight areas and increased by 3%-67% in five areas with average increase of 6%. Source: Evaluation Survey Report for CRDP (May 2017) (Table 3.26) Achieved. Water logging reduced by 22%-100% in thirteen project areas (12 Pourashava, and one city corporation) with average water logging was reduced by 61%.

Source: Evaluation Survey Report for CRDP (May 2017) (Table 3.24) Achieved. Whole project area was not covered under energy saving solar street line network. The areas where energy saving solar lights were installed are saving energy. It varies from 7% in Mongla Port Pourashava and 100% in Savar Pourashava. Source: Evaluation Survey Report for CRDP (May 2017) (Table 3.29)

Appendix 1 19

Design Summary

Performance Targets / Indicators

Status of Achievements at Project Completion

1 2 3

URBAN PLANNING 8. Updated Dhaka Metropolitan Development Plan (DMDP) implemented from 2015.

MUNICIPAL MANAGEMENT 9. Number of Pourashavas in compliance with key UGIAP activities (all Pourashavas)

Achieved.

RAJUK prepared the Draft Dhaka Structure Plan 2016-2035 (the Plan), earlier referred to as the DMDP considering the opinions obtained from public hearing and national seminar, and recommendations of line agencies and implementation in place.

Achieved. All selected Pourashavas are complying with key UGIAP activities since June 2013. The includes urban infrastructure improvement, enhancing governance system in administration and capacity building of officials.

Output 1. Enhanced capacity of urban infrastructure

WATER SUPPLY 1. Additional production capacity (40 MLD) 2. Length of new pipe network built (127 km)

3. Length of existing pipe network rehabilitated (3.50km)

4. Women’s representation in WATSAN committees (30%)

SANITATION 5. Number of new public toilet facilities with fecal sludge management facilities (7)

6. Number of renovated public toilets with fecal sludge management facilities (8)

10. Substantially Achieved. 11. 12. Additional Production Capacity (Machine capacity MLD): 13. Gazipur City Corporation : 28.50 14. Ashulia (Dhaka DPHE) : 5.00 15. Mirjapur (Gazipur DPHE) : 1.00 16. Jashore (Jashore DPHE) : 4.00

Total 38.50

17. Achieved. 18. 19. Pipe network built (kilometer) new: 20. Gazipur City Corporation : 50.00 21. Ashulia (Dhaka DPHE) : 32.00 22. Mirjapur (Gazipur DPHE) : 14.04 23. Jashore (Jashore DPHE) : 39.03

Total 135.07 Source: LGED

24. Achieved 25. Pipe network (kilometer) rehabilitated

Gazipur City Corporation : 3.50 km Source: LGED

Exceeded. WATSAN committees are consists of five members of which two are women representing 40%. Source: PCR Gender Team

Achieved. Total seven public toilet constructed in 4 districts (3 in Gazipur, 1 in Narayanganj, 2 in Khulna, and 1 in Bagerhat)

Achieved. Total eight public toilet rehabilitated in Gazipur.

20 Appendix 1

Design Summary

Performance Targets / Indicators

Status of Achievements at Project Completion

1 2 3

SOLID WASTE MANAGEMENT 7. 1 No. solid waste management facility established

URBAN TRANSPORT 8. Length of roads upgraded (255 km)

9. Number of towns or areas with improved traffic management (1)

DRAINAGE 10. Length of drains improvement (210 km)

Achieved. Fully equipped solid waste management facility established in Jashore Pourashava and is fully operational.

Exceeded. Total 258.76 kilometer of roads upgraded: Dhaka Region including Banani : 34.67 Gazipur City Corporation : 7.55 Jashore Pourashava : 10.10 Jhenidah Pourashava : 7.50 Khulna City Corporation : 13.89 Kaliakoir Pourashava : 9.23 Kanchan Pourashava : 9.18 Mongla Port Pourashava : 19.92 Manikganj Pourashava : 31.18 Narsingdi Pourashava : 7.01 Narayanganj City Corporation : 2.03 Nawapara Pourashava : 8.03 Savar Pourashava : 18.91 Singair Pourashava : 25.80 Sonargaon Pourashava : 12.01 Tarabo Pourashava : 4.92 LGED Urban Centers : 36.46 Total : 258.77 Source: LGED Achieved. Traffic management improved in Banani under Dhaka North City Corporation. This was the only area traffic management system were funded by the Project.

Exceeded. Total 213.67 km of drain improved: Dhaka Region including Banani : 22.20 Gazipur City Corporation : 25.91 Jashore Pourashava : 19.86 Jhenidah Pourashava : 9.93 Khulna City Corporation : 25.27 Kaliakoir Pourashava : 5.20 Kanchan Pourashava : 7.55 Mongla Port Pourashava : 14.21 Manikganj Pourashava : 0.00 Narsingdi Pourashava : 7.47 Narayanganj City Corporation : 11.33 Nawapara Pourashava : 7.20 Savar Pourashava : 13.39 Singair Pourashava : 1.13 Sonargaon Pourashava : 4.51 Tarabo Pourashava : 7.33 LGED Urban Centers : 29.92 Total : 213.68

Appendix 1 21

Design Summary

Performance Targets / Indicators

Status of Achievements at Project Completion

1 2 3

11. Length of re-excavation of river/khal/canal (19 km)

ENERGY EFFICIENCY PROGRAM 12. Energy-efficient pumps installed (6 pumps)

13. Energy-efficient and/or solar-powered lights installed (3063 lights)

Source: LGED Substantially Achieved. Total 18.81 km of canal re-excavated, of which 2.0 km in Mongla Port Pourashava and remain 16.81 km in Khulna City Corporation Achieved. Total six energy-efficient pumps procured and installed at Tongi under Gazipur City Corporation in two contracts. Source: LGED Achieved. Supplied and installed 3,063 Solar Based LED Type Street Lights (Energy-efficient and/or solar-powered lights) and solar based Mini-Grid Power Plant at Tongi Area under Gazipur City Corporation. Source: LGED.

2. Improved urban planning

1. DMDP reviewed and updated by 2015

2. Consultation meetings for DMDP with at least 30% participation by women 3. Number of urban planners posted in Category A Project Pourashava by 2018 (8)

4. Urban planners trained from the project by 2014

Achieved. RAJUK submitted Draft Dhaka Structure Plan 2016-2035 (the Plan) was prepared under RAJUK component. The Plan considered the opinions obtained from public hearing and national seminar, and recommendations of line agencies.

Partly Achieved. Total 230 participants from RAJUK and concerned government agencies attended in the consultation meetings, of them 28 (12%) were women. Low rate of women participation was due to low rate of female staff of attending government agencies. Source: Updated Gender Action Plan

Partly Achieved (75%) Urban Planners posted in six out of eight ‘Category A’ Pourashavas:

Pourashava Date of Joining

(i) Jashore 29 Sep 2011 (ii) Manikganj 30 Sep 2013 (iii) Narshingdi 29 Sep 2011 (iv) Noapara 22 Sep 2011 (v) Tarabo 4 July 2013 (vi) Savar 23 May 2011

Source: Quarterly Project Progress Report - QPR 6 (Oct – Dec 2013)

Achieved. Five Urban Planners recruited up to September 2012 were

22 Appendix 1

Design Summary

Performance Targets / Indicators

Status of Achievements at Project Completion

1 2 3

trained in two workshops (Khulna on 1 October and Dhaka on 3 October 2012. MCD consultants prepared urban planning training manual on updating master plan and land use plan for urban planners and facilitators. Total 61 facilitators were recruited of which 19 were for urban planning. Quarterly urban planning meetings were held in all 12 pourashavas with 4-6 participants in each pourashavas.

3. Strengthened municipal management and capacity

a. 1. Capacity development programs carried out in all municipalities with 30% of women trainees

b. 2. All municipalities achieving annual 5% of improvement of property tax collection

c. 3. All municipalities achieving regular citizen committee meetings with at least 30% participation by women

4. Capacity of peri-urban management enhanced.

Achieved. Two workshops (one in Dhaka and the other in Khulna) were held for capacity development of the officials and staff of the CRDP Pourashavas. Besides, regular on job training programs are held at the field levels. Total 380 participants attended the workshops and trainings of which 96 were women (25% - 83% of target).

Source: Updated Gender Action Plan and QPR 2

Achieved. Complete annual tax information for FY2015 - FY2019 were available for 9 PIUs (8 pourashavas and 1 city corporation). Total property and holding tax for these 9 PIUs found to be in increasing trend of 9% annually. The analysis shows increasing trend comparing to previous years. The range of increases were from -7% in FY2016 to 73% in FY2017 (Mongla Port Pourashava). Kaliakoir Pourashava experienced 16% decrease in in FY2018 that was recovered in succeeding year to 24% increase.

Achieved. Regular citizen committee meetings through TLCC and WLCC. Total of 157 TLCC meetings were attended by 6,470 members, of whom 2,161 were women (33%). 1,295 WLCC meetings were held with 12,825 members of whom 5,430 were women (42%). Source: PCR Gender Team Achieved. Concept plans of urban centers are in place. Total 36 urban centers were taken under CRDP following concept plan. The adjacent Upazila/Union to the Pourashava/city corporation was considered.

Note: CRDP = City Region Development Project , DPHE = Department of Public Health Engineering , PCR = Project Completion Report , LED = Light Emitting Diode, LGED = Local Government Engineering Department, MCD = Municipal capacity development , PIU= Project Implementation Unit, QPR = Quaterly Progress Report, TLCC = Town Level Coordination Committee, WLCC = Ward Level Coordination Committee, RAJUK = Rajdhani Unnayan Kartipakkha; WATSAN = Water supply and Sanitation.

Appendix 2 23

PROJECT COST AT APPRAISAL AND ACTUAL Table 2.1: Project Cost at Appraisal and Actual

($ million)

Item

Appraisal Estimate Actual

Foreign Exchange

Local Currency Total Cost

Foreign Exchange

Local Currency Total Cost

A. Investment Costs

1. Civil Works 69.18 24.31 93.49 97.64 33.80 131.44 2. Equipment and Vehicles 20.26 8.71 28.97 10.59 1.48 12.07 3. Consultants 14.21 2.13 16.34 11.02 3.32 14.34 4. Land Acquisition and Resettlement 0.00 5.64 5.64 0.00 0.14 0.14

Subtotal (A) 103.65 40.79 144.44 119.25 38.74 157.99

B. Recurrent Costs

1. Salaries 0.00 2.91 2.91 0.00 1.88 1.88 2. Office Operation and Maintenance 2.26 0.34 2.60 2.18 0.00 2.18

Subtotal (B) 2.26 3.25 5.51 2.18 1.88 4.06

Total Base Cost 105.91 44.04 149.95 121.43 40.62 162.05

C. Contingencies 11.06 5.96 17.03 0.00 0.00 0.00

D. Interest Charges During Implementation 3.03 0.00 3.03 3.02 0.00 3.02

Total Cost (A+B+C+D) 120.00 50.00 170.00 124.45 40.62 165.07

% of Total Project Cost 70.6% 29.4% 100% 75.39% 24.61% 100%

Note: Appraisal estimate did not disaggregate costs in to foreign and local currency. Project Completion Report (PCR) Mission considered external financings (ADB Loan and TA, AECF TA SIDA and KfW grants. Source: Asian Development Bank (ADB) estimates, ADB’s Loan Financial Information System, and Government Project Completion Report.

24 Appendix 3

PROJECT COST BY FINANCIER Table 3.1: Project Cost at Appraisal by Financier

($ million)

Item

ADB GOB Taxes & Duties Non-Taxes and Duties Total-GOB

Amount % of Cost Category

Amount % of Cost Category

Amount % of Cost Category

Amount % of Cost Category

Total Cost

A. Investment Costs

1 Civil Works 69.18 74.0% 4.03 4.3% 20.28 21.7% 24.31 26.0% 93.49 2 Equipment and Vehicles 20.26 69.9% 8.71 30.1% - 0.0% 8.71 30.1% 28.97 3 Consultants 14.21 87.0% 2.13 13.0% - 0.0% 2.13 13.0% 16.34 4 Land Acquisition and

Resettlement - 0.0% - 0.0% 5.64 100.0% 5.64 100.0% 5.64

Subtotal (A) 103.65 71.8% 14.87 10.3% 25.92 17.9% 40.79 28.2% 144.44

B. Recurrent Costs 1 Salaries - 0.0% - 0.0% 2.91 100.0% 2.91 100.0% 2.91

2 Office Operation and Maintenance

2.26 87.0% 0.34 13.0% - 0.0% 0.34 13.0% 2.60

Subtotal (B) 2.26 41.0% 0.34 6.2% 2.91 52.8% 3.25 59.0% 5.51

Total Base Cost (A+B) 105.91 70.6% 15.21 10.1% 28.83 19.2% 44.04 29.4% 149.95

C. Contingencies 11.06 67.8% - 0.0% 5.96 35.0% 5.96 35.0% 17.03

D. Interest Charges During Implementation

3.03 100.0% - 0.0% - 0.0% - 0.0% 3.03

Total Project Cost (A+B+C+D) 120.00 15.21 34.79 50.00 170.00

% of Total Project Cost 70.6% 8.9% 20.5% 29.4% 100.0%

Note: Numbers may not sum precisely because of rounding. Source: Asian Development Bank’s Project Administration Memorandum.

Appendix 3 25

Table 3.2: Project Cost at Completion by Financier ($ million)

Item

ADB SIDA KfW GOB Total Costa

Amount % of Cost Category

Amount % of Cost Category

Amount % of Cost Category

Amount % of Cost Category

Amount Taxes and Duties

A. Base Cost

1. Civil Works – ADB 78.28 74.0% 27.50 26.0% 105.78 9.87

Civil Works – SIDA 9.62 77% 2.88 23.0% 12.50 1.16 Civil Works – KfW 9.74 74% 3.42 26.0% 13.16 1.22

2. Equipment and Vehicles * 10.59 100.0% 1.48 12.3% 12.07 1.48 3. Consultants * 9.41 85.4% 1.61 14.6% 3.32 14.34 3.32 4. Land Acquisition and Resettlement - 0.0% 0.14 0.14 -

5. Salaries - 0.0% 1.88 100.0% 1.88 - 6. Office Operation and Maintenance * 2.18 100% 2.18 -

Subtotal (A) 100.46 9.62 11.35 40.62 162.05 17.05

B. Contingencies

C. Interest Charges During Implementation 3.02 100% 3.02 -

Total Project Cost (A+B+C) 103.48 9.62 11.35 40.62 165.07 17.05

Note: 1. Numbers may not sum precisely because of rounding. * Excluding Taxes and Duties. Source{s}: Asian Development Bank (ADB) estimates, ADB’s Loan Financial Information System, and Government Project Completion Report.

26 Appendix 4

DISBURSEMENT OF ADB LOAN PROCEEDS

Table 4.1: Annual and Cumulative Disbursement of ADB Loan Proceedsa ($ million)

Annual Disbursement Cumulative Disbursement

Year Amount

% of Total Amount % of Total

($ million) ($ million)

2012 7.43 7.18% 7.43 7.18% 2013 5.81 5.61% 13.24 12.79% 2014 15.66 15.13% 28.90 27.93% 2015 26.11 25.23% 55.01 53.16% 2016 29.76 28.76% 84.77 81.92% 2017 11.21 10.83% 95.98 92.75% 2018 5.28 5.10% 101.26 97.86% 2019 2.22 2.15% 103.48 100.00%

Total 103.48 100.00%

ADB = Asian Development Bank. Source: Asian Development Bank.

Figure 4.1: Projection and Cumulative Disbursement of ADB Loan Proceeds

($ million)

0

20

40

60

80

100

120

140

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

$ M

illio

n

Year

Projection and Actual Cumulative Disbursements

Projected Actual

Appendix 5 27

CONTRACT AWARDS OF ADB LOAN PROCEEDS

Table 5.1: Annual and Cumulative Contract Awards of ADB Loan Proceeds ($ million)

Annual Contract Awards Cumulative Contract Awards

Year Amount

% of Total Amount % of Total

($ million) ($ million)

2012 10.06 10.02% 10.06 10.02% 2013 22.32 22.22% 32.38 32.24% 2014 29.57 29.43% 61.95 61.67% 2015 17.47 17.39% 79.42 79.06% 2016 13.52 13.45% 92.94 92.51% 2017 0.25 0.25% 93.19 92.77% 2018 7.27 7.23% 100.46 100.00%

Total 100.46 100%

ADB = Asian Development Bank. Source: Asian Development Bank.

Figure 5.1: Projection and Cumulative Contract Awards of ADB Loan Proceeds

($ million)

-

20.00

40.00

60.00

80.00

100.00

120.00

140.00

2011 2012 2013 2014 2015 2016 2017 2018 2019

$ m

illio

n

Year

Projection and Actual Contract Awards

Projected Actual

28 Appendix 6

PROJECT IMPLEMENTATION SCHEDULE

Appendix 7 29

CHRONOLOGY OF MAJOR PROJECT EVENTS

Dates Activity

A. General

2010

25 January Reconnaissance Mission

18 June Concept Paper

20 June ADB Fact Finding Mission

15 August ADB Management Review Meeting

10 September ADB Staff Review Meeting

13 September ADB 2nd Management Review Meeting optional

10 October Loan Negotiation

20 October Board Circulation

20 October Loan Approval

2011

17 April Loan Review Mission

02 August Umbrella Project DPP approved by ECNEC

14 September Loan Inception Mission

23 September Loan declared effective

2012

22 March Loan Agreement signed between GOB and KfW

26 June Consultancy contract signed with Management, Design and Supervision (MDS) consultants

9 September TA /Loan Review Mission

1 December Loan Agreement signed between ADB and SIDA to support the Project

2013

27 February Loan review mission

4 March TA review mission

7 July Loan review mission

14 September Loan review mission

27 November Agreement signed between LGED and SIDA

2014

20 May Loan review mission

13 November Loan review mission

2015

15-23 April Mid Term Review Mission

14 July Contract signed between Jessore Municipality and waste concern consultant

10 November Loan review mission

30 November Jessore Waste to Energy Inception report submitted by consultant

2016

29 May Minor Change in Implementation Arrangement: (i) Removal of 10% Ceiling of Imprest Advance and (ii) Removal of the Ceiling of the Statement of Expenditure (SOE) Procedure

6 June Amendment of Loan Agreement special operations

19 September Loan review mission

2017

11 June Minor Change in scope, Reallocation of Loan proceeds, Extension of Loan closing date

1 November Loan review mission

2018

1 April Loan review mission

30 June Second Extension of Loan and Grant closing date

2 December Loan review mission

2019

29 May Loan Account Closed

B. Procurement of Consulting Services

LGED/S-02: Management, Design and Supervision (MDS) Consultants (QCBS)

20 Nov 2010 Date of publication

26 Dec 2010 Deadline for submission of expression of interest

27 January, 2011 Consultant selection committee short-listing meeting held

31 May, 2011 Request for proposal issued

31 July, 2011 Opening of technical proposals

30 Appendix 7

Dates Activity

27 October, 2011 Evaluation of technical proposals

23 November, 2011 Opening of financial proposal

23 November, 2011 Evaluation of financial proposal

29 November, 2011 Combined evaluation of technical and financial proposal

16 January, 2012 Contract negotiation held

05 March, 2012 ADB received draft negotiated contract with the first ranking firm

15 March, 2012 ADB approved draft negotiated contract

26 June, 2012 Consulting contract signed

27 June, 2012 ADB received the signed consulting contract

31 December 2016 Contract completed

C. Procurement of Works

{Contract Title of first contract and Contract Number} GCC/W-01/Lot DW-01: a} Construction of RCC drain start from Shibbari to Fishery Bhaban (Ch. 0 - 800m) b) Construction of RCC drain start from Shibbari to Laxmipura (Rest Portion) (Ch. 0 - 1690m)

18 October, 2012 ADB received the IFB and bidding documents

29 October, 2012 ADB provided comprehensive comments on the draft IFB and bidding documents

10 December, 2012 ADB received the revised bidding documents

09 January, 2013 ADB approved the revised IFB and bidding documents

30 April, 2013 IFB

05 May, 2013 IFB and bidding document published

21 May, 2013 Bid opening held

27 June, 2013 ADB received the BER

15 July, 2013 ADB approved the BER

07 August, 2013 Contract signed

31 December 2015 Contract completed

Savar/W-04: Improvement of Road and Construction of Drains

17 Sept., 2017 ADB received the bidding documents

17 Sept., 2017 ADB approved the IFB and bidding documents

19 September,2017 IFB and bidding document published

25 October,2017 Bid opening held

07 January,2018 ADB received the BER

17 January, 2018 ADB approved the BER

27 February, 2018 Contract signed

31December 2018 Contract completed

D. Procurement of Goods

CRDP/LGED/ICB/G-01. (a) Procurement of 3 (three) Service Vehicles; (b) Procurement of 10 (Ten) Pick-up Trucks; and (c) Procurement of 2 (Two) Microbuses

15 January, 2012 ADB received the IFB and bidding documents

21 February, 2012 ADB provided comprehensive comments on the draft IFB and bidding documents

24 February, 2012 ADB received the revised bidding documents

15 March, 2012 ADB approved the revised IFB and bidding documents

26 March, 2012 IFB and bidding document published

30 May, 2012 Bid opening held

31 July, 2012 ADB received the BER

10 August, 2012 ADB approved the BER

11 September 2012 Contract signed

18 Dec 2013 Contract Completed

LGED/G-12: Procurement of Waste Collection Equipment

23 August 2017 ADB received the IFB and bidding documents

11 September 2017 ADB approved the revised IFB and bidding documents

21 September,2017 IFB and bidding document published

15 November, 2017 Bid opening held

14 February, 2018 ADB received the BER

14 March, 2018 ADB approved the BER

04 April, 2018 Contract signed

28 November 2018 Contract completed

Source: LGED and Asian Development Bank.

Appendix 8 31

PROJECT IMPLEMENTATION STRUCTURE

32 Appendix 8

LIST OF PROJECT IMPLEMENTATION UNITS

Local Government Engineering Department 1. Dhaka North 2. Narayanganj, 3. Gazipur 4. Jashore 5. Khulna 6. Bagerhat

Department of Public Health Engineering

7. Dhaka 8. Gazipur 9. Ashulia 10. Jashore 11. Khulna 12. Bagerhat

Rajdhani Unnayan Karthipakkha

13. Dhaka City Corporations

14. Dhaka 15. Narayanganj 16. Gazipur 17. Khulna

Pourashavas

18. Jashore 19. Jhikargacha 20. Kaliakoir 21. Kanchan 22. Mongla Port 23. Manikganj 24. Narshingdi 25. Noapara 26. Savar 27. Singair 28. Sonargaon 29. Tarabo

Appendix 9 33

Completion Report

TECHNICAL ASSISTANCE COMPLETION REPORT

Project Number: 39298-013 Technical Assistance Number: 7641 November 2020

Bangladesh: Strengthening Regional Planning and Governance

This document is being disclosed to the public in accordance with ADB’s Access to Information Policy.

34 Appendix 9

TECHNICAL ASSISTANCE COMPLETION REPORT

TA Number, Country, and Name: TA 7641-BAN: Strengthening Regional Planning and Governance

Amount Approved: $675,000

Revised Amount: Not applicable

Executing Agency{ies}: Rajdhani Unnayan Kartripakkha (RAJUK)

Source of Funding: TASF IV

Amount Undisbursed: $35,548

Amount Used: $639,452

TA Approval Date: 10 November 2010

TA Signing Date: 28 December 2010

TA Completion Date

Original Date: 30 September 2012

Latest Revised Date: 30 April 2013

Financial Closing Date: 26 July 2013

Number of Extensions: 1

TA Type: Capacity development TA

TA Arrangement: Not Applicable

Description

The Strengthening Regional Planning and Governance (SRPG) TA supported the Government of Bangladesh to effectively address the problems encountered by the regional development agencies in the execution of effective regional development planning and investment. The TA particularly focused on reviewing the legal and institutional urban planning system in the city regions such as the Town Improvement Act (1953). Although the review focused on Dhaka, many of the proposals and legislation reviewed remains applicable to other urban centers in Bangladesh. The TA supported the strengthening and streamlining of existing regional development agencies in particular RAJUK, and at the same time clarifying the role of local government in the urban planning process. The TA was aligned with the government’s Poverty Reduction Strategy Framework of NSAPR II, and ADB’s Country Strategy and Program, 2006–2010. The TA supported the urban planning objective of Loan 2695-BAN: City Region Development Project (CRDP).

Expected Impact, Outcome, and Outputs

The expected impact of the TA was a better integrated, more efficient, and more accountable city region development in Dhaka, and to establish a national urban policy context that supports such development in other city regions. The outcome of the TA was the review and update of urban development plans and formulation of a framework for coherent regional development. The TA had two output components (i) current legal and institutional frameworks of regional planning and governance reviewed (ii) proposed measures to streamline and strengthen the framework by revisiting the mandate and functions of RAJUK, and rationalize the system by allocating planning and control responsibilities to the proper levels. The TA had no separate DMF from the project loan.

Implementation Arrangements

ADB administered the TA. As executing agency, RAJUK provided counterpart staff and office spaces representing 10% ($75,000) of total financing. The TA activities were supported by an international consulting firm, Halcrow Group

Limited (recruited in accordance with ADB’s Guidelines on the Use of Consultants) in coordination with RAJUK. As agreed, RAJUK nominated its staff to participate in the activities. A total of 47 person-months of consultancy services were recruited, including 17 person-months of international consultant services and 30 person-months of national consultant services. The TA was extended from 30 September 2012 to 30 April 2013 due to the delay in recruiting consultants, discussions needed by the consultants with RAJUK and incorporating comments of RAJUK in the final report. ADB disbursed 95% ($639,452) of the grant amount. The undisbursed amount of $35,548 was cancelled during closing of TA account. Disbursements were made in accordance with the Technical Assistance Disbursement Handbook (2010, as amended from time to time). ADB conducted regular periodical review missions along with the related loan, CRDP, to discuss TA progress and provide guidance to implementation.

Conduct of Activities

The TA had two outputs. Output 1 was concerned with a review of the current legal and institutional frameworks of regional planning and governance which included the Town Improvement Act 1953 and other legislation. Output 2 included proposed measures on streamlining and strengthening of the regional planning and governance framework. Both outputs were to be reviewed and developed through a consultative process at the national level, with RAJUK, relevant local government, and other stakeholders.

Appendix 9 35

Output 1: The output was achieved. The TA reviewed two Acts and one rules of the government: (i) The Town Improvement Act (TIA), 1953 and Subsequent Amendments, (ii) Proposed Urban and Regional Planning Act, 2012 (URPA), (iii) Dhaka Metropolitan Building (Construction, Development, Conservation and Removal) Rules T2008. Upon review, the TA proposed (i) Draft Bill for a proposed Town Improvement Act (Amendment), and (ii) Town Improvement (Amendment) Act 2012. The outputs were used in the preparation of the Dhaka Structure Plan (2016–2020). Both acts covered (a) preliminary, (b) Kartipakkha (constitution of RAJUK), (c) planning process, (d) Management and Development, (e) Land Readjustment, (f) improved and upgrading of informal settlements, (g) special committees, (h) compliance, (i) compensation, (j) appeals, (k) supplementary (call for information, rules, repeals, and transitional provisions). Output B: The output was achieved. This output proposed measures that could strengthen and enhance the institutional framework of regional planning for Rajuk. Dhaka faces the most extreme combination of urban problems of any mega-city – acute shortage of developable land, very high densities, high flooding risks, rapidly decreasing groundwater levels, chaotic transportation, low levels of infrastructure and open space. The TA recommended a wide range of proposals to address these problems through strengthened urban planning and metropolitan governance based around six key objectives: (i) creating a planning system fit for a 21st century developing country mega-city; (ii) strengthening RAJUK so that it can better fulfil its mandate; (iii) increasing the accountability, transparency and oversight of RAJUK’s operations; (iv) increasing the finance available for infrastructure; (v) enhancing inter-agency co-ordination and co-operation; and (vi) upgrading the technical and managerial capacities of RAJUK and sector agencies.

Technical Assistance Assessment Ratings

Criterion Assessment Rating

Relevance The TA is relevant as it was fully aligned with the government’s Renewable Energy Policy, 2008, Bangladesh Climate Change Strategy and Action Plan (BCCSAP), 2009 and ADB’s Country Strategy and Program (2006–2010), and 2011–2015. The TA supported the implementation of the related loan through capacity building and small-scale demonstration pilots on energy efficiency. The TA remained relevant at completion. The TA also recommended a wide range of proposals to address the current challenges of a mega-city through strengthened urban planning and metropolitan governance. The TA conducted energy audits, surveys, capacity building and awareness raising programs to enhance technical capacities and awareness of the municipalities. In terms of TA design, the TA outputs were elemental and supported the completion of activities/outputs of the project loan. The scope of the components was appropriate and adequate in view of the expected outcome

Relevant

Effectiveness The TA is rated effective as it delivered both outcome and outputs. The TA reviewed the current legal and institutional frameworks of regional planning and governance which contributed to the preparation of the Dhaka Structure Plan (2016–2020). The plan is in place and under process of gazette notification. Investments under another ADB loan, the Second City Region Development Project31 were selected from the Dhaka Structure Plan. The TA also proposed measures to strengthen and enhance the institutional framework of regional planning for Rajuk.

Effective

Efficiency The TA is rated efficient as it delivered all outputs utilizing 95% of the planned budget. The extension period of 7 months was necessary to review of draft final report by RAJUK, incorporating comments of RAJUK as appropriate, and finalization of the report by the consultants. Government in-kind contribution was adequate and provided in a timely manner. There were no major implementation issues. Final TA report was in place in December 2012, ahead of the date the loan was closed on 30 April 2013. The TA had indirect socioeconomic benefits as the outputs contributed to the preparation of the Dhaka Structural Plan (2016–2020) providing a framework for resource allocation in the sector.

Efficient

Overall Assessment

The TA is rated successful based on the ratings of relevant, effective, and efficient. The TA was in line with the urban planning objective of the project

Successful

31 ADB. 2019. Report and Recommendation of the President to the Board of Directors: Second City Region

Development Project. Manila.

36 Appendix 9

Criterion Assessment Rating

and contributed to the formulation of a framework for coherent regional development. Targets were achieved within budget and funds were used as expected. Stakeholders consultation with experts from different sectors helped Rakuk to get a wider perspective on the developmental issues and challenges of Dhaka City which were included in The Dhaka Structure Plan, 2016–2035.

Sustainability The TA is assessed as likely sustainable. The Dhaka Structure Plan, 2016–2035 drafted under the loan has a capacity building component which will be able to build upon the TA’s recommendation. RAJUK has committed to strengthen its management and technical capabilities towards implementation of the TA’s proposals for achieving a sustainable growth trajectory for Dhaka. Under the second city region development project investment (footnote 28) for the Dhaka city region, subprojects are being selected for the first time based on the Dhaka Structure Plan to improve connectivity and linkage of peri-urban areas within the city region.

Likely sustainable

Lessons Learned and Recommendations

Design and/or planning A design well anchored on country context is important to ensure effectiveness. The TA’s design was appropriate to the needs of RAJUK and reinforced its current efforts to increase effectiveness of operations. The TA was responsive to the loan’s urban planning outcome and improved urban services output.

Implementation and/or delivery Performance of ADB and the firm in delivering the intended output of the TA was satisfactory with satisfaction of the government. ADB’s continuous review and monitoring of consultant’s activities contributed to performing TA activities in a timely and efficient manner. The consulting firm also delivered the works according to the assigned terms of reference. Close coordination and regular follow help in implementation of the TA in the stipulated time.

Management of staff and consultants

Proper selection and adequate supervision of consultants are necessary in the delivery of outputs and addressing bottlenecks in TA implementation Strong supervision by ABB and the executing agency is necessary to ensure issues are resolved adequately and timely. ADB’s periodical TA administration review mission along with RAJUK supervised and provided necessary guidance to the consultants to resolve issues raised from time to time. The consulting firm was recruited successfully and delivered the assigned terms of reference satisfactorily.

Knowledge building Effective knowledge building requires effective collaboration with key sectoral agencies in the identification, planning, funding and implementation of priority infrastructure. The TA is an institutional, and not a plan- or policy-making study. It has shown that successful urban development does not result from good planning alone. It should be anchored on effective collaboration with key stakeholders at every stage.

Stakeholder participation Systematic and broad engagement of stakeholders help ensure wider range of perspectives are considered in the implementation. It also ensures stronger collaboration among different agencies working in the city regions and helps to develop accountability and ownership for sustainable development.

Replication and/or scaling up The TA’s recommendation has already been addressed in The Dhaka Structure Plan. Investments for Dhaka city under the second city region development project were selected from the said plan.

Follow-up Actions

No follow-up actions is required as the TA was completed successfully and the related loan has been closed.

Prepared by: Marjana Chowdhury

Designation and Division: Senior Project Officer; SARD

Appendix 9 37

Technical Assistance Cost

Table 9.1: Technical Assistance Cost of ADB by Activity ($’000)

Item Originala Actual

1. Consultants 542.50 622.73

2. Equipment 6.50 4.23

3. Training and seminars 38.00 12.49

4. Studies 0.00 0.00

5. Miscellaneous TA administration 18.20 0.00

6. Contingency 69.80 0.00

Total 675.00 639.45

Note: Undisbursed amount of $72,495 was cancelled during closing of TA account. Source: Asian Development Bank estimates

Table 9.2: Technical Assistance Cost by Financier

($’000) ADB Total Cost

1. Original 675.00 675.00

2. Actual 639.45 639.45

3. Unused 35.55 35.55

ADB = Asian Development Bank, GOB = Government of Bangladesh. Source: Asian Development Bank estimate.

38 Appendix 9

Completion Report

Project Number: 39298-013 Technical Assistance Number: 7642 November 2020

Bangladesh: Energy Efficiency Improvement This document is being disclosed to the public in accordance with ADB’s Access to Information Policy.

Appendix 9 39

TECHNICAL ASSISTANCE COMPLETION REPORT TA Number, Country, and Name: TA 7642-BAN: Energy Efficiency Improvement

Amount Approved: $1,500,000

Revised Amount: Not applicable

Executing Agency: Local Government Engineering Department (LGED)

Source of Funding: Asian Clean Energy Forum (ACEF)

Amount Undisbursed: $973,757

Amount Used: $973,757

TA Approval Date: 10 November 2010

TA Signing Date: 28 December 2010

TA Completion Date

Original Date: 31 July 2013

Latest Revised Date: 31 December 2013

Financial Closing Date: 17 March 2014

Number of Extensions: 1

TA Type: Capacity development TA

TA Arrangement: Not Applicable

Description

The Energy Efficiency Improvement Technical Assistance was approved to support a comprehensive energy efficiency program and was associated with Loan 2695-BAN: City Region Development Project. The TA was designed to promote energy efficiency and renewable energy programs among municipalities, carry out detailed energy audits and implement demonstration programs to introduce energy-efficient water pumps and solar-powered streetlights. The TA was aligned with the National Energy Policy (NEP), 1996, Bangladesh Climate Change Strategy and Action Plan (BCCSAP) and ADB’s Country Strategy and Program, 2006–2010. The TA supported the implementation of the energy efficiency output of the City Region Development Project.

Expected Impact, Outcome, and Outputs

The expected impact of the TA was improved energy efficiency of the municipalities and reduced expenditure on electricity in addition to improving these services. The TA outcome was capacity building and best practices through small-scale demonstration pilots on energy efficiency established. The TA had the following outputs: (i) demonstration pilot project to replace old fluorescent tubes with new solar-powered and energy efficient LED bulbs in Tongi Pourashava (solar powered and energy efficient street lighting installed), (ii) pilot project to replace old water pumps with new energy efficient pumps in Tongi Pourashava energy (efficient water pumps installed). (iii) energy audits and surveys in various municipalities undertaken throughout the project area to help identify areas for energy efficiency improvement and develop projects to scale up the pilot project (energy audits and surveys conducted), and (iv) capacity development and awareness raising. The TA had no separate DMF from the project loan. The demonstration projects comprised of (i) solar-powered street lighting; and (ii) energy-efficient water pumps

Implementation Arrangements

ADB administered the TA. LGED as the executing agency for the TA provided counterpart staff and office space representing13.3% ($200,000) of total financing. The Project Management and Coordination Unit (PMCU) established at LGED for the City Region Development Project provided overall direction and guidance in the implementation of the TA activities. A total of 77 person-months of consultancy services were recruited, including 21 person-months of international consultant services and 56 person-months of national consultant services. The TA activities were supported by a consulting firm, Econoler International (recruited in accordance with ADB’s Guidelines on the Use of Consultants (2013), as amended from time to time), in coordination with LGED. As agreed, LGED nominated its staff to participate in the activities. ADB disbursed 65% ($973,757) of the TA amount. The undisbursed amount of $526.24 was cancelled during closing of TA account. Disbursements were made in accordance with the Technical Assistance Disbursement Handbook (2010, as amended from time to time). ADB conducted regular periodical review missions along with the related loan, CRDP, to discuss TA progress and provide guidance to implementation. Other development partners, including SIDA, KfW also participated in the review mission. The TA was extended from 31 July to 31 December due to the delayed installation of equipment of the pilot project as all staff of Tongi pourashava is busy in the election process of the newly formed Gazipur City Corporation. Furthermore, frequent electricity failures caused delays on the pilot project.

40 Appendix 9

Conduct of Activities

The TA achieved 3 out of 4 outputs. Based on energy audits in Tongi and 8 other municipalities, the Project Design Document was prepared. The installation of a solar-powered LED street lighting system, proposed in the TA, had to be dropped due to long payback periods resulting from the high capital costs and high system O&M costs for panel cleaning and battery replacement. Output 1: Solar-Powered and Energy-Efficient Street Lighting. The TA implemented a pilot demonstration subproject which replaced old fluorescent tubes with new solar powered and energy-efficient LED bulbs in Tongi Pourashava. The design was thoroughly assessed in the local context of Bangladesh, including operation and maintenance, financial viability (capital expenditure and operating expenditure), energy efficiency and cost saving as well as overall technical soundness. The TA conducted a detailed study to design the facilities. The energy efficiency measures in the street lighting systems in Tongi consisted of the use of voltage controls, photo electric timer switches and the replacement of 40W Energy-Efficient Fluorescent Tube Light (EFTL) with 25W Light Emitting Diode (LEDs), 23W Compact Fluorescent Lamps (CFLs) with 17W LEDs, 40W EFTLs with 28W T5s, 23W CFLs with 14W T5s, and 65W CFLs with 28W T5s. Energy savings was 0.18 million kwh per annum valued to BDT1.81 million per annum investing BDT8.42 million against the respective estimates of 0.21 million kwh per annum, BDT2.14 million per annum, and BDT9.53 million. However, the pilot subproject was not pursued during the implementation of the related loan. After a detailed analysis, the solar power options were not recommended for implementation in the pilot project and led to the conclusion that these options were unviable given the meager savings in energy and labor costs versus the high investment costs for LEDs and solar systems. Output 2: Energy-Efficient Water Pumps. The water pumping pilot project envisaged the replacement of old water pumps with new energy-efficient pumps in Tongi Pourashava. The design was thoroughly assessed in the local context of Bangladesh, including operation and maintenance, financial viability (capital expenditure and operating expenditure), energy efficiency and cost saving as well as overall technical soundness. The consultant was required to conduct a detailed study to design the facilities, prepare specifications and bidding documents, procure equipment and contractors for installation, supervise the work, and record and evaluate the demonstration project. A total of 12 pumps were replaced with energy-efficient pumps within the allocated budget along with new capacitor banks, installation of timer controls, booster tanks (in certain cases) and an electrical protection panel with appropriate switchgear including a properly rated three-phase ammeter, a voltmeter, power factor meter and adequate earthing. Contractor collected the old pumps from sites, few were repaired for further use and few were disposed off. Energy savings was .64 million kwh per annum valued at BDT3.72 million per annum investing BDT18.03 million against the respective estimates of 0.70 million kwh per annum, BDT4.57 million per annum, and BDT18.81 million. Output 3: Energy Audits and Surveys. In addition to assessments on the pilot projects, a number of energy audits and surveys were conducted in various municipalities throughout the project area to help identify the areas with energy efficiency improvement potential and develop projects to scale up the pilot project. The survey was used to gauge the overall energy efficiency in the urban sectors of Bangladesh and estimate the potential total energy and energy cost savings. Output 4: Capacity Development and Awareness Raising. Technical Guidebooks were prepared for the training programs on energy efficiency in street lighting and water pumping systems and were used for capacity building and awareness raising activities for the municipalities throughout the country. The consultant collaborated with the CRDP consultants towards the replication and scaling-up of the energy efficiency programs based on the results of the pilot projects. A workshop on energy efficiency in the urban sector was organized on 21 May 21 2013 at the LGED in furtherance of these objectives. The capacity building activities as per the terms of reference envisaged a number of training sessions, seminars, workshops, conferences and other educational programs to enhance technical capacity and awareness. The training materials developed were to include curricula, manuals, pamphlets, guidelines, etc. The training programs were to include 1) current clean energy techniques and equipment used for street lighting and water pumping; 2) installation, operation and maintenance training for such equipment; 3) clean energy policy and regulatory programs and implications at the local level; 4) financial benefits for municipalities and 5) other benefits such as improvement of street safety due to additional lights.

Appendix 9 41

Technical Assistance Assessment Ratings

Criterion Assessment Rating

Relevance The TA is relevant as it was fully aligned with the government’s Renewable Energy Policy, 2008, Bangladesh Climate Change Strategy and Action Plan (BCCSAP), 2009 and ADB’s Country Strategy and Program (2006–2010), and 2011–2015. The TA supported the implementation of the related loan through capacity building and small-scale demonstration pilots on energy efficiency. The TA remained relevant at completion. The scope of the components was appropriate and adequate in view of the expected outcome. The TA conducted energy audits, surveys, capacity building and awareness raising programs to enhance technical capacities and awareness of the municipalities. In terms of TA design, the TA outputs were elemental and supported the completion of activities/outputs of the project loan.

Relevant

Effectiveness The TA is rated less than effective. The outcome was partially achieved since the TA delivered only 3 out of 4 outputs. For output 1, after a detailed assessment on the pilot project at Tongi, the solar powered streetlight options were not recommended for implementation and led to the conclusion that these options were unviable given the limited amount of savings in energy and labor costs versus the high investment costs for LEDs and solar systems and subsequently the best practice manual were also not developed. Instead the TA recommended to proceed with implementing more water pump subprojects (output 2). Technical feasibility study for the streetlight options were not conducted at the loan design stage which led to failure in achieving the street output during implementation of the TA. Notwithstanding the partial achievement, LGED performed satisfactorily.

Less than effective

Efficiency The TA is rated less than efficient. Not all intended outputs were delivered. Resources were underutilized (i.e., 65% of the total budget). The implementation period took 5 months longer than envisaged due to the delayed installation of equipment of the pilot project. The delayed installation was due to the formation process of Gazipur City Corporation, election process of the newly formed Gazipur City Corporation, and delayed compilation of energy audit by consultants. Government in-kind contribution (estimated at $200,000 or 12% of total financing) was adequate and provided in a timely manner. The final TA report was submitted on time.

Less than efficient

Overall Assessment

Overall, the TA has been rated as less that successful with relevant, less than effective and less than efficient ratings. The TA’s contribution to the loan was evident through capacity building activities and small-scale demonstration pilots on energy efficiency. The partial achievement of the outcome however led to an underutilization of resources.

Less than successful

Sustainability The TA is assessed as Likely sustainable as the government is committed to make continuous efforts to increase the energy efficiency in the entire country.32 Findings from the energy audits in 8 different municipalities can be utilized in designing any future investments project in those municipalities. The technical guidebooks developed for energy efficiency

32 As per the Renewable Energy Policy, 2008, the Sustainable Energy Development Agency (SEDA) pursues the

sustainable energy development and promotion in the country comprising of renewable energy and energy efficiency.

42 Appendix 9

Criterion Assessment Rating

in street lighting and water pumping can also be used by the municipalities for capacity building programs to enhance technical capacity and awareness

Lessons Learned and Recommendations

Design and/or planning A feasibility study at the design stage for the energy efficiency component of the loan could have averted underachievement of outputs and unutilized resources.

Implementation and/or delivery Timely recruitment of consultant is important to avoid significant implementation delays. The implementation period was extended for five months. Timely recruitment of consultants in keeping with loan implementation could have avoided the TA extension.

Management of staff and consultants

Assigning counterpart staff is critical to satisfactory project performance at implementation. LGED assigned full time staff for the loan and TA administration. Consultants’ work was efficiently managed.

Knowledge building Findings from energy audits and the guidelines can be used in the design of similar energy efficiency projects in the future. The TA conducted energy audits and developed manuals and guidelines and conducted capacity building programs and awareness raising activities for the municipalities throughout the country. A workshop on energy efficiency in the urban sector was organized by LGED to disseminate the learnings from the energy audit for future replication of similar technologies in other development projects.

Stakeholder participation The TA trained 332 engineers and operators from 178 Pourashavas. Conducted workshops for over 100 engineers from LGED and Pourashavas and facilitated interaction with Electrical Engineering equipment vendors. The key lesson learned from stakeholder participation reflected that the participation and involvement of Pourashavas mayors in decision making and in implementation is the key to the success of implementing an energy efficiency program

Partnership {and co-financing} The TA was financed by the ACEF and the government contributed by assigning staffs to oversee the TA. The investment from ACEF was appropriate as the findings from the TA laid a baseline on the energy consumption and utilization at Gazipur City Corporation and 8 other municipalities which will support the municipalities in future project planning and implementation.

Replication and/or scaling up Findings from the energy audits as well as the technical guidebooks developed for energy efficiency in street lighting and water pumping can be utilized in designing similar investments in the future.

Follow-up Actions

To ensure success in similar energy efficiency program, design and preparatory work should be completed before the main loan project is approved. The needs analysis of physical infrastructure, logistics and power should be carefully examined in the design phase for a successful energy efficiency TA project.

Prepared by: Marjana Chowdhury

Designation and Division: Senior Project Officer, BRM

Appendix 9 43

Technical Assistance Cost

Table 9.3: Technical Assistance Cost by Activity

($’000) Item Original Actual

1. Consultants 739.200 617.230

2. Equipment 434.000 329.500

3. Training and seminars 110.000 27.020

4. Studies 80.000 00.000

5. Miscellaneous TA administration 20.000 00.000

6. Contingency 116.800 00.000

Total 1,500.000 973.760

Note: Undisbursed amount of $$526,240 was cancelled during closing of TA account. Source: Asian Development Bank estimates.

Table 9.4: Technical Assistance Cost by Financier

($’000)

ACEF* Total Cost

1. Original 1,500.000 1,500.000

2. Actual 973.760 973.760

3. Unused 526.240 526.240

ACEF = Asia Clean Energy Forum, ADB = Asian Development Bank, Source: Asian Development Bank estimates.

44 Appendix 10

UTILIZATION OF CONSULTING SERVICES

Package No.

Consultancy Services Category

Contracted (person-months) Utilized (person-months) Contract Milestone Dates

Total Foreign Local Total Foreign Local Bids

Invited Contract signed

Closing per

Contract

Actually Closed

1 2 3 4 5 6 7

LGED/S- 01

MCD Consultant Firm 102 10.5 91.5 85.9 6.8 79.1 11/20/2010 6/26/2012 12/31/2015 12/31/2015

Facilitators 1250 1250 1250 1250

LGED/S- 02

MDS Consultant Firm 1051 142 909 930.8 139.3 791.5 11/20/2010 6/26/2012 12/31/2016 12/31/2016

RAJUK/S-03

RDP Consultant Firm 276 72 204 277 72.9 204.1 3/15/2011 11/21/2012 3/31/2013 3/31/2013

LGED/S-03/a-c

Individual Consultants- Category - I (Resettlement Safeguards: 1 Foreign and 2 Local consultants)

90 18 72 42.6 18 24.6 8/1/2011 12/6/2012 12/31/2016 12/31/2016

LGED/S-04/a-b

Individual Consultants- Category -II (Environmental Safeguards: 1 Foreign and 1 Local consultants)

60 12 48 24 6 18 8/1/2011 12/6/2012 12/31/2016 12/31/2016

LGED/S-05/a-c

Individual Consultants- Category -III, (Procurement, M&E, Finance Specialists: 3 Local consultants);

112 112 114 114 8/1/2011 12/5/2012 12/31/2016 12/31/2016

LGED/S-06/a-e

Individual Consultants- Category -IV; (Need Based Specialists: 1 Local Social and Gender Specialist); (* 5 nos. of contracts)

298 298 89.9 89.9 4/30/2013 8/30/2013 12/31/2016 12/31/2016

Total Except Facilitators under MCD Consultants

1,991.0 254.5 1,734.5 1,564.2 243.0 1,324.2

MCD = Municipal Capacity Development, MDS = Management, Design and Supervision, RDP = Regional Development Planning.

Appendix 11 45

PROCUREMENT OF WORKS

Name of City Corporation and Pourashavas unit Contract Quantity

Road Drain

Gazipur City Corporation (GCC) (Batch-I) 6 packages km 7.55 25.91

Dhaka City Region Ashulia, Savar (Batch I) 2 packages km 26.672 7.06

Jashore Pourasava (Batch 2A) 5 packages km 10.096 19.868

Jhikorgacha Pourashava (Batch 2A) 2 packages km 7.507 9.93

Khulna City Corporation (Batch I) 11 packages km 13.89 25.27

Kaliakoir Pourashava (Batch 2A) 2 packages km 9.23 5.20

Kanchan Pourashava (Batch 2A) 2 packages km 9.18 7.55

Mongla Port Pourashava (Batch 2A) 3 packages km 19.92 14.21

Manikganj Pourashava (Batch 2A) 2 packages km 31.18 0.00

Total Narshingdi Pourashava (Batch 2A) 2 packages km 7.01 7.47

Narayanganj City Corporation (Batch 2A) 2 packages km 2.03 11.33

Nawapara Porashava (Batch 2A) 2 packages km 8.3 7.2

Savar Pourashava (Batch 2A) 4 packages km 18.91 13.39

Shingair Pourashava (Batch 2A) 2 packages km 25.795 1.130

Sonargaoun Pourashava (Batch 2A) 2 packages km 12.01 5.78

Tarabo Pourashava (Batch 2A) 2 packages km 4.92 7.33

LGED Urban Centre Jashore (Batch 2B) 1 package km 4.14 4.15

LGED Urban Centre Khulna (Batch 2B) 2 packages km 3.88 3.36

LGED Urban Centre Bagerhat (Batch 2B) 2 packages km 11.09 9.17

LGED Urban Centre Gazipur (Batch 2B) 2 packages km 8.89 5.78

LGED Urban Centre Dhaka District (Batch 2B) 1 package km 1.24 1.47

LGED Urban Centre Narayanganj (Batch 2B) packages km 7.22 5.99

DNCC Integrated Traffic Management, Banani (Batch) packages km 8.10 15.14

Total 258.76 213.77

46 Appendix 12

LIST OF GOODS PROCURED

Package Description of procurement

(goods/works/consultancy) as per bid document

Tender/Bid/Proposal Cost (in crore Taka)

Tender/Bid/Proposal

PP Value Contract

Value

Contract including CDVAT

Invitation Date

Contract signing/

LC opening date

PMCU/LGED

LGED/G-01 Service Vehicles - 3 nos 1.80 0.95 4.81 20-Mar-12 11-Sep-12

LGED/G-02 Pickup Trucks - 19 nos 1.50 1.81 4.15 20-Mar-12 16-Sep-12

LGED/G-03 Microbus 2 nos 0.70 0.47 0.72 20-Mar-12 16-Sep-12

LGED/G-04 Desktop Computers and Printers 0.60 0.34 0.36 20-Mar-12 4-Jun-12

LGED/G-05 Photocopiers 1.25 0.48 0.48 1-Jun-12 24-Jun-12

LGED/G-06 Multimedia Facilities including Laptops 0.10 0.10 0.10 25-Apr-12 22-May-12

LGED/G-06A Motor Bike 0.38 0.38 0.38 7-May-12 3-Jun-12

LGED/G-07 Excavator (Wheel Type), Capacity: Minimum 15000kg - 18 nos

31.92 15.57 15.75 17/Sep/17 30-May-18

LGED/G-08 Bulldozer: Chain Type - Capacity Minimum 15000 kg - 18 nos

31.92 13.90 14.05 17/Sep/17 30-May-18

LGED/G-09 Truck Mounted Suction Machine (Vacuum Cleaner) - Capacity Minimum 2000 Liter: 18 nos.

6.40 3.04 4.03 21/Sep/17 4-Apr-18

LGED/G-10 Mini Excavator (Backhoe Loader) - 15 nos. 6.00 4.34 4.39 21/Sep/17 8-Apr-18

LGED/G-11 Waste Collection Trucks - Capacity: Minimum 2.50 cum - 20 nos.

7.00 3.68 5.68 21/Sep/17 4-Apr-18

LGED/G-12 Waste Collection Trucks - Capacity: Minimum 1.50 cum - 20 nos.

5.00 3.51 5.41 21/Sep/17 4-Apr-18

Quotation Supply of Office Furnitures (Chair, Table, File Cabinet etc.)

1.00 1.00 1.00 24/Apr/12 22-May-12

GCC

GCC/G-01 Supply and Installation of Solar Based LED Type Street Lights and Solar Based Mini-Grid Power Plant at Tongi Area under GCC

38.42 46.42 46.42 5-Jun-13 31-Dec-13

GCC/G-02: Lot No. 1

Supply and installation of energy efficient Water Pumps - 6 nos.

0.68 0.69 0.69 7-Aug-13 21-Nov-13

GCC/G-02: Lot No. 2

Supply and installation of energy efficient Water Pumps - 6 nos.

0.14 0.14 0.14 7-Aug-13 21-Nov-13

GCC/G-03 Supply and installation of submersible water pump, domestic water meter in house connections, chlorination system including other accessories - 15 pumps, 6000 meters

6.44 5.74 5.74 20-Jul-15 15-Dec-15

Appendix 13 47

IMPLEMENTATION OF GENDER ACTION PLAN AND ACHIEVEMENTS A. Introduction 1. Project objective. The City Region Development Project (CRDP) aimed to promote environmental sustainability of Dhaka and Khulna regions by enhancing the capacity of urban infrastructure (e.g., road, urban centers, and public toilets),improving urban planning, and strengthening municipal management and capacity. It covered 5City Corporations, 12Pourashavas (municipal corporations), and 36 Upazilas (sub-district).

2. Gender issues. During the project design phase, it was assessed that poor women, especially female heads of households, in urban areas were most vulnerable due to their lack of income earning activities and household’s lack of access to drinking water and sanitation and transport facilities and being traditionally responsible for managing water and waste in the households. Most of these poor women were engaged in informal waste-picking and recycling activities for livelihood. Despite this problem on access to drinking water, huge amount of water was misused and wasted due to lack of awareness of the people. Other issues included women’s less and ineffective involvement in the decision making at different committees including coordination committees in towns and wards and water and sanitation committees.33They were

rarely consulted during needs assessment in urban areas.

B. Project Gender Features

3. The project was categorized effective gender mainstreaming (EGM) and had a gender action plan (GAP) to support the achievement of gender-related objectives. The project’s design and monitoring framework (DMF) targeted women’s representation and participation in different committees, consultation meetings, and capacity development programs. All four gender-related targets of the outputs of the DMF were reflected in the GAP. During the project review mission in November 2017,the Local Government Engineering Department (LGED)requested the ADB to enhance the quality of the GAP by making it more specific, measurable, achievable, relevant and time-bound (SMART) and aligned with the revised DMF.34This resulted in the decrease in number of activities and increase in the number of targets (Table 1).The key features of the GAP were (i) 30% women representation in community consultations on project design; (ii) implementation and monitoring process; (iii) inclusion of relevant clauses of core labor standards in all bid documents; (iv) orientation of all PMU and PIU staff and contractors on core labor standards;(v) 30% women’s participation in construction as unskilled and semi-skilled laborers; (vi) 50% public toilet facilities to have women friendly provisions;(vii) 30% women representation in water and sanitation committees and community based organizations; (viii) 19 urban planners including all women urban planners receive training on gender mainstreaming; and (ix) 33% women’s representation in town-level and 40% in ward-level coordination committees.

C. Gender Action Plan Implementation Arrangements 4. The Local Government Engineering Department (LGED) designated one gender focal point in the Project Management Unit (PMU) of CRDP to spearhead the implementation of the GAP. The project also engaged a gender and social development specialist (GSD) for 27 person

33 ADB. 2010. Report and Recommendation of the President to the Board of Directors: Proposed Loan and Technical Assistance

Grants People’s Republic of Bangladesh: City Region Development Project. Summary of Poverty Reduction and Social Strategy (accessible from the list of documents in Appendix 9). Manila.

34 Final Aide-Memoire of loan review mission dated 16 November 2017. The number of activities is further reduced in this assessment (Table 1 of this Appendix) because an activity and target that have the same contents and just stated differently or target merely states percentage of participants of the activity are merged and counted only as a target.

48 Appendix 13

months (recruited by ADB) and a social safeguard and gender specialist in Management, Design and Supervision Consultant firm (recruited by the Project) for 19 person-months, who played a key role in the gender sensitization of staff of the PMU, Project Implementation Unit (PIU), ward councilors of Pourashavas and City Corporations and other concerned government entities, as well as in motivating and tracking the participation of women in the development of project in urban areas. D. Gender Action Plan Achievements 5. As presentedinTable1, the implementation of the GAP was successful: 100% of activities were completed and 85% of quantitative targets were achieved. Below is a summary of women’s practical and strategic gender benefits from the project. Practical Gender Benefits 6. Increased food quantity and quality. Women respondents (project-affected women vendors, construction laborers, and petty job holders) of focus group discussions (held for this assessment of project gender-related outcomes) shared that their family’s food intake increased in terms of quantity and quality. With their increased income (from work in project’s infrastructure development or received small business resettlement compensation, which was used to expand small business in other areas), they can now afford to buy more food for their children and have three meals a day which was previously 2 times.

7. Safer and convenient mobility of women in public places with the provision of sex-segregated toilets in public places. Of the 15 toilet blocks constructed or renovated, 13 have separate toilets for females and males. Separate toilets with water facilities in the public places such as markets and boat landing ghats (station) facilitated the timely and easy movement of women and girls to workplaces and other destinations. 8. Environment friendly homes. Home managers (women), who received orientation on household solid waste management from community-based committee members (mostly women) in one Pourashava (Jashore), learned how to effectively dispose waste in secondary disposal sites. This practice helped improve family health and comfortable living.

9. Healthy living. As part of the upgrading of roads, the project constructed walkways and sitting places, with separate provisions for women and men, in public parks. These facilities enable women, adolescent girls, college students both boys and girls to walk and spend time in green open spaces and public parks. Strategic Gender Benefits 10. Women’s economic empowerment. The following project initiatives improved women’s economic conditions:

• Total of 1.322 million (13.22 lakh) labor days (30%) of total 4.406 million (44.06 lakh) of the project’s infrastructure development works (road construction, market improvement, and public toilets construction or renovation) were given to poor women. This improved their skills and made them more qualified for similar work. After they completed their work

• under the project, they were referred to road construction work of other development projects.

Appendix 13 49

• Lump sum compensation for interruption of their income generating activities in project sites was used by project-affected women for putting up better businesses in other places (Box3).

• The upgrading of roads included the improvement of internal roads and clean spaces inside the market. Though this DMF target did not have explicit gender-related target outcome, the benefits for women were evident. These project-constructed infrastructures eased the movement (in all seasons) and improved the conditions of women market vendors. Before the project, women had to sit on muddy floors of the market with their produce and suffered from rain, heat and dirt.

• Using KFW fund, the project also constructed transport structures (e.g., bus terminals and boat landing stations), which contributed to the quick and safe movement of women and enabled women to engage in work at distant places.35

11. Gender equality in decision-making and leadership. Women’s increased contribution to family income and better access to information led to their recognition in the family and community.

• In their families, they started to be involved in decision-making on family concerns, such as daughter’s or son’s higher education, and purchasing land, livestock, household furniture or other assets and gained the support of in-laws for household activities, such as taking care of children and elderly in the family.

• At the community level, a woman shared that she started to be invited with her husband and other male family members to social gatherings (Box 3). Women have also gained seats in governance structures. Each of the 12 water and sanitation (WATSAN) committees formed in 12 Pourashavas has five members, two of whom are women.

• With their active participation in the project (e.g., identification of project-affected population, especially women; and motivating local women to participate in construction work), women members of the town level coordination committees (TLCC) and ward level coordination committees (WLCC) developed self-confidence and better awareness of the socio-economic conditions of their communities.

12. Gender equality in human development. The project ensured the participation of women in project activities:

• In consultations on infrastructure planning, implementation, and monitoring, 31% of the participants were women.

• All women urban planners, who comprised 26% of senior and mid-level officials of the Rajdhani Unnayan Kartripakkha (RAJUK) attended the four-day orientation on the importance of addressing women’s and children’s needs in urban planning.

• In the municipality capacity development programs, 25% of the participants were women.

• In the training on gender, GAP and safeguards policy and plan of municipal councilors, field officials of the PIU, officials of City Corporation and Pourashava, and members of TLCC and WLCC, 26% of the participants were women. In all these training events, the importance of ensuring women’s participation and benefits from the project was discussed. As a result, Pourashava councilors (both women and men) and ward level committee members who were oriented on gender sensitive urban development planning have become involved in ensuring that design and monitoring of urban structures—like hat bazars (market), bridges, culverts, foot over bridge, alignment of market roads, and water and sanitation points and public spaces—integrate gender sensitive elements. The orientations also enabled women in the communities to raise their needs and demands

35This activity was not included in the GAP since it was not mentioned in the DMF. However, women worked as unskilled laborers.

50 Appendix 13

(e.g., sex-segregated toilet facilities in the public places, proper lighting for safety in the important places at night, improved market for women sellers, and seats in public parks) to their respective councilors in meeting and consultations.

• In addition to completing all activities in the GAP, the project also provided orientation to 124 women as slum development committee (SDC) members. The committee was formed in 2016 under another ADB financed project-Third Urban Governance and Infrastructure Improvement Project. These women received quality orientations on health, hygiene, WATSAN, household level solid waste management, social safety net programs and development initiatives. In particular, SDCs raised and talked about life-centered issues in the monthly meetings at the groups, thus being perceived as efficient development catalysts.

Appendix 13 51

Table. Gender Action Plan Achievements Matrix Activities Achievements Assessment

Output 1: Enhanced capacity of Urban Infrastructure

Target 1. Households headed by women will receive equal compensation as per resettlement framework.

• 100% affected women will receive equal compensation according to resettlement framework.

• Under the Resettlement Plan implementation of the Banani sub-project, 241 project affected establishments were identified which comprised of 237 business units and 4 Government establishments. The 237 business units operated different types of small business (tea-stall, hotel, restaurant, shops of betel-leaf and cigarette, fruits and vegetables, cloths) along the footpaths and the 4 government establishments used the space for traffic police resting area (police boxes). Out of 237 business unit operators, only 146 (including 9 women heads of households) were paid resettlement compensation in accordance with the land acquisition and resettlement framework. The other affected 95 business unit operators did not receive the resettlement compensation because they had transferred and could not be located at the time of finalization and distribution of compensation.

Target 1 achieved

Target 2. Consultations will be held with the community to ensure their effective participation in planning, implementation and monitoring processes.

• 30% women representation.

• Consultations on infrastructure planning, implementation and monitoring were held with community people at the village level, union parishad building, marketplaces, Town Level Coordination Committee (TLCC), Market Management Committee (MMC), local elites and surrounding population. Project Management and Coordination Unit (PMCU) and Project Implementation Unit (PIU) staff held consultations with community women while visiting several City Corporations, Pourashava (municipality) and urban centers located at Gazipur, Khulna, Savar, Jashore, Kaliakhoir, Araihazar where members of TLCC, MMC, local elites and surrounding population both women and men participated.

• The total number of attendees was 6,308, of whom 1,928 (31%) were women.

Target 2 achieved

Activity 1. Relevant clauses will be included in all bid documents on core labor standards and equal wage for work of equal value.

• Relevant clauses were “the contractor shall base the employment relationship upon equal opportunity and fair treatment and shall not discriminate with respect to aspects of the employment relationship, including recruitment and hiring, compensation (including wages and benefits) working, conditions and terms of employment of retirement, and discipline. The contractor shall provide equal wages and benefits to men and women for work or equal value or type. The contractor shall not employ any child to perform any work, including work that is economically exploitative, or is likely to be hazardous to, or to interfere with, the child’s education, or to be harmful to the child’s health of physical, mental, spiritual, moral, or social development.”

• These clauses were included in 100% (113) signed bid documents.

Activity completed

52 Appendix 13

Target 3. All PMCU and PIU staff and contractors will be oriented on core labor standards (safe drinking water and public sanitation, equal wages, occupational health and safety).

• 100% PMCU and PIU staff and contractors.

• 16 planned orientation sessions on the core labor standards were organized for all the 259 (male-235, female-24) PMCU and PIU field staff.

• 74 male contractors (100%) and their representatives in all City Corporation, Pourashava and urban centers of City Region Development Project (CRDP) received orientation on the gender aspects of core labor standard and gender related issues.

• During monitoring of field activities, CRDP senior officials discussed core labor standards including its gender dimensions with the PMCU and PIU staff and contractors.

Target 3 achieved

Target 4. Ensure women’s participation in construction (unskilled and semi-skilled).

• 30% women’s participation.

• 1.322 million (13.22 lakh) labor days (30%) out of total 4.406 million (44.06 lakh) in the infrastructure development works of CRDP were generated for poor women and were paid an amount of Tk 46,260,000 (30%) of the total Tk 154,200,000 as per consultant monthly report.

Target 4 achieved

Activity 2. Gender action plan (GAP) will be monitored and reported in the quarterly progress report.

• All quarterly reports.

• All project quarterly progress reports included ‘Quarterly GAP Progress Status’ as a separate section (Chapter 5).

Activity completed

Water Supply and Sanitation

Target 5. New and renovated public toilets will be women-friendly and built at safe locations.

• 50% public toilet facilities ensure women friendly provisions.36

• Construction of 7 new public toilet blocks and renovation of 8 old toilet blocks were completed. Out of these 15 toilet blocks, 13 (87%) have separate women friendly provisions.

Target 5 achieved

Target 6. Women will be represented in water and sanitation (WATSAN) Committees.

• 30% women representation.

• 12 WATSAN Committees were formed in 12 Pourashavas. Each WATSAN committee consists of 5 members including 2 women (40%).

• The roles and responsibilities of the committees are to (i) raise the awareness of the people about the sanitation programs and initiate the implementation of these programs; (ii) create mass awareness about the necessity of hygienic toilets, taking

Aligned with Design and Monitoring Framework (DMF) Output1.4. Women’s representation in WATSAN committee (30%).

• appropriate actions for collection and removal of wastes from all houses, public toilets, drainage, buildings and open fields by consultation with the people and different service providers; and (iii) arrange dustbin or disposal place for wastes and provisions for separate toilets for men and women users in the municipality area with proper operations and maintenance to keep the toilets clean.

Target 6 achieved

Solid Waste Management

Target 7. Community Based Organization, if formed for primary collection, will ensure female members participation.

• Solid waste management component was applicable only to one Pourashava- Jashore where one nongovernment organization (NGO) worked for slum improvement committees under the conservancy section of Pourashava. Instead of forming community-based organizations (CBOs) for solid waste management, the project supported the running of a

Target 7 achieved

36 The GAP was revised in 2017 to include a 50% target for Target 5 (Footnote 2).

Appendix13 53

• 30% women representation. program which involved 7 community-based committees--composed of 84 members (men: 3 and women: 81 [96%])--in awareness raising through court yard meeting, door-to-door visit and consultations.

• The duties and responsibilities of NGOs and the community-based committees were mainly to (i) collect wastes from different generation sources (e.g., houses, markets, restaurants, and hotels)using non-motorized rickshaw vans; (ii) dispose the collected wastes to the nearest secondary disposal sites; and (iii) raise public awareness, motivation, and commitment to store the wastes in a bin or basket or bag and dispose it inroadside dustbins or give to waste collectors.

Output 2: Improved Urban planning

Urban Planning

Target 8. Ensure women’s participation in Dhaka Metropolitan Development Plan (DMDP) consultation meetings. 30% women representation.

• A total of 230 officials from Rajdhani Unnayan Kartripakkha (RAJUK) and other government organizations attended consultation meetings on the process of institutionalizing the participation of major stakeholders in the planning process. The consultations also aimed at creating a sense of ownership of the DMDP among them. Women participants expressed their views on the necessity of women’s participation in every stage of planning and implementation. They said that this process should be started from ward level so that local people can take part in the decision making of the infrastructure related planning and interventions.

• Of the total participants, 202 were men and 28 (12

Target 8 not achieved Aligned with DMF Output 1.2: Consultation meetings for DMDP with at least 30% participation by women.

Target 9. Urban planners will receive training on mainstreaming gender in urban planning. 19 urban planners (including all

women urban planners) receive

training.

• A total of 27 senior and mid-level officials of RAJUK (assistant engineers, sub-assistant engineers, town planners, urban planners, city planners, and assistant directors of land use) under the Ministry of Land received a 4-day orientation on the importance of addressing women’s and children’s needs in urban planning. Out of 27 officials, 7 (26%) were women (town planners and assistant directors) representing all women urban planners of RAJUK.

• Discussed were the need to increase understanding of gender concerns and needs in urban planning, develop capacity to address gender issues in selected human settlement areas, integrate gender perspectives into policies, projects and programs, and support gender sensitive interventions.

Target 9 achieved

Output 3: Strengthened Municipal Management and Capacity

Capacity building at the municipal level

Target 10. Ensure women participation in municipality capacity development programs. 30% women trainees.

• The municipality capacity development programs had 380 participants, of whom 96 (25%) were women. The participants included the project city corporations and municipal officials (assistant engineers, executive engineers, sub-assistant engineers, urban planners, accountant, tax-collector, tax assessor, Secretary and slum development officer).

• The capacity development programs enhanced their understanding of the project’s interventions, necessity of women’s participation, planning of women friendly infrastructures, importance of operation and maintenance of the infrastructures and services which was evident in their ability to effectively integrate gender-related concerns in the preparation, implementation, monitoring, and evaluation of on-going Urban Governance Improvement Action Program (UGIAP).

Target 10 not achieved

Aligned with DMF Output 3.1: Capacity development programs carried out in all municipalities with 30% of women trainees.

54 Appendix 13

Target 11. Gender training targeting municipal councilors, PIU and contractors. One gender training per municipality with 30% women trained.

• Total 14 trainings were conducted in 12 municipalities where at least 1 training conducted in each of 12 municipalities.

• A total of 615 participants with 191 women (31%) including municipal councilors (women and men), PIU field officials, City Corporation and Pourashava officials, contractors of all 12 Pourashavas, members of TLCC, WLCC, and Gazipur, Khulna and Narayanganj City Corporation were trained on safeguards policy and plan, gender and GAP. These include informal discussions during visits by senior officials from PMCU.

• After the gender sensitization trainings, the women councilors became aware of the importance of women’s inclusion in gatherings and meetings and the need to listen to their demands and present these demands in TLCC meeting. The number of women WLCC and TLCC members in the regular meetings increased and their voice were heard in the big forum. Previously women’s participation in meetings ranged from 15-20%.

Target 11 achieved

Target 12. Women represented in TLCC and WLCC. • 33% women representation in TLCC and 40% in WLCC.

• TLCC and WLCC meetings were held on a regular basis. Total of 157 TLCC meetings were attended by 6,470 members, of whom 2,161 were women (33%).

• Through this process, the voices of the women were raised, and their concerns were discussed at an appropriate level. All major decisions on Pourashava administration and development required endorsement at the TLCC. Lively participation and representation of all social classes made the administration of Pourashavas more accountable and transparent.

• 1,295 WLCC meetings were held with 12,825 members of whom 5,430 were women (42%).

• A 2-day orientation program was organized for the 20 facilitators (12 men and 8 women) on UGIAP implementation guidelines/modality and monitoring system.

Target 12 achieved

Aligned with DMF Output 3.3 All municipalities achieved regular citizen committee meetings with at least 30% participation by women.

Capacity building of PMCU and PIU

Target 13. PMCU and PIU staff will

receive gender awareness training and orientation on GAP.

• 100% PMCU and PIU staff

All 259 PMCU and PIU staff (male-235, female-24) were trained in safeguards policies and plans, quality control, and gender sensitivity at the City Corporation, Pourashava, and Local Government Engineering Department Headquarter (LGED HQ). The training program included a session on GAP implementation.

Target 13 achieved

Overall GAP Assessment: Successful 37

CRDP = City Region Development Project; DMF = design and monitoring framework; LGED HQ = Local Government Engineering Department head quarter; MMC = market management committee; NGO = nongovernment organization; PIU = project implementation unit; PMCU = project management and coordination unit; RAJUK = Rajdhani Unnayan Kartripakkha; TLCC =Town Level Coordination Committee; UGIAP = Urban Governance Improvement Action Program; WATSAN = Water and Sanitation.

37 Of 2 activities, 2 (100%) were completed; of 13 quantitative targets, 11 (85%) were achieved.

Appendix 13 55

E. Testimonials of women beneficiaries of the project

13. Testimonials on women’s benefits from project’s intervention were collected through focus group discussions (FGD) and interviews with 27 women in Jashore, Khulna and Dhaka. Benefits shared were short- and long-term impacts of the project, such as income earned from construction works; entrepreneurship; participation in decision making in the family, community, and municipality; and increased mobility due to improved infrastructure.

Box1. From street beggar to small trader

My husband and I with our two children (one daughter and one son) migrated to Dhaka from Noakhali in 2012 in quest of livelihood. Finding no other way, we started begging in the streets. With savings from our begged money, I started selling pictorial books for school children sitting on foot path in Banani. But the income was not at all enough for food and clothing. It was difficult to have three meals in a day. One day in 2016, the Government people came and took our telephone number, address and photograph and advised us to vacate the place as there would be improvement work of those roads and drains under City Region Development Project. I just felt utterly frustrated. I again started begging. Fortunately, in 2016 I received Tk 25,000 from Government as compensation for my lost business. I invested that money for small-scale business, like vending towels in the streets. Now I can afford enough food for my family. My dream is to have my own shop. I have supported my daughter who is now earning by selling fresh flowers. Now that the locality is more environment and social friendly, we, women, feel safe to do our vending work. Though most of my earning is spent for basic needs including travel cost, I try to do some savings in the Bank Account in Bangladesh Rural Advancement Committee (BRAC) which I had to open to receive compensation for my livelihood. My husband, who is almost 60 years old, helps in household works as he cannot do hard work like I do.

Lucky Akhter, age 53

Box 2. Improved skills helped in getting work

I work as a cleaner or sorter and I receive salary per month which gives me a feeling of self-respect. I have a son and a daughter. I have two grandsons. My husband had lost his eyesight few years ago and now totally unemployed. The training that I received from a local NGO has helped me to get involved first in construction work and then as a sorter. The skills I learned have become my strength for my family survival. I spend my earning for my husband’s health and for our grandchildren.

Champa Begum, age 45 Note: Training mentioned was done under CRDP.

Box 3. Gained recognition of the family and the community

I have been working as a sorter for 6 months in a solid waste management plant that was constructed by the project. Before, I worked as a day laborer for the construction of the same plant. Other members of our family share in household work. My husband who works in an NGO named PRISOM as medical waste cleaner informed me about this work opportunity. We both together manage family expenditure. My earnings are mostly spent on basic needs – food, clothing, educational expenditure of our 2 sons (daughter has been married off) and health. It is difficult to save after meeting our daily family needs because our earnings are hardly enough. I enjoy better partnership in the family and get social respect as an earning person. I get invitation to social gathering.

Momtaz Begum, age47

F. Challenges encountered

14. The project implementing agency encountered barriers to the smooth implementation of the GAP and the achievement of gender equality results. Some of these challenges were beyond the control of the project. These include:

• It was difficult to immediately remove the local practice of paying women workers less than men workers due to ingrained gender bias and insensitivity of some contractors, site managers, supervision consultants and project staff. In response, the project conducted more trainings and workshops with the Project Management Consultants team, Project

56 Appendix 13

Implementing Units, Town Level Coordination Committees and Ward Level Coordination Committees and with the contractors and site managers.

• The lack of full-time (for whole duration of the project) gender and social development specialist was a challenge. This hampered the sustained supervision of GAP implementation and monitoring—including documentation—of progress and results up to the completion of the project. After completion of the total inputs of the specialist, the project gender focal point was assigned to monitor and report against the GAP.

• The country has limited number of women who are skilled in technical work, required by the project.

• The project could not meet the target of 30% women representation in Dhaka Metropolitan Development Plan (DMDP) because of few women officials (e.g., assistant engineers, sub-assistant engineers, town planners, urban planners, and city planners).

G. Lessons:

15. The following lessons can be of good use for gender-responsive planning, implementation and monitoring of future similar type projects: Strong collaboration and coordination of different implementing agencies in implementing the GAP and achieving gender equality results is an important success factor. Effective coordination and collaboration through monthly coordination meetings of implementing agencies—like the Department of Public Health Engineering (DPHE), Department of Environment (DOE), coordination cell of Deputy Commissioner Office and Union Parishad office plus contractors—on the gender aspects of the project facilitated the completion of GAP activities and achievement of targets. Experience of the project points to the importance of the concerned organizations’ awareness of the GAP, their responsibilities, and importance of compliance. GAP should be treated as everybody's responsibility, not only of the gender specialist. The gender-related activities of all involved should be consistent with the GAP and the gender-related targets of the DMF.

• The guidance of a gender specialist in all phases of GAP implementation up to completion is important. The engagement of a gender specialist should be up to the assessment of GAP achievements at project completion. This implies the need to ensure adequate number of workdays of a gender specialist to assist in all phases of project, including in the preparation of the GAP completion report, to be appended in the project completion report.

Appendix 14 57

UPDATED SOCIAL SAFEGUARDS AND RESETTLEMENT STATUS

The list of entitled persons in the Banani resettlement plan contained

1. The list of entitled persons in the Banani resettlement plan contained 241 project-affected people; 162 of these were confirmed in the revised list according to the final detailed design. The project's involuntary resettlement impact was not significant. Majority of the stakeholders have continued business as usual after temporary disruptions during the construction. Therefore, livelihoods have been restored to pre-project level. The local people have also acknowledged that the project has facilitated better business yields by providing better drainage and communication. It has been a learning from the project that avoiding involuntary resettlement impacts contributes positively to timely implementation of projects

Project Initial Scale of resettlement Final Scale of Resettlement

Banani Integrated Traffic Management Subproject

225 Mobile Hawkers and vendors who operate kiosks on the ROW will be affected

241 Project affected people and four government owned structures.

Ashulia Industrial and Residential Cluster subproject

A total of 11 households will be affected. A total of 5 households with 11 fruit bearing mango trees along with six hawkers will be affected

No resettlement impacts. Resettlement was avoided through design considerations, alternative site selection or land donation process. Due diligence report was prepared instead of updated resettlement plans

Narayanganj Solid Waste Management subproject

17 households will be affected by the project, and all of them are hawkers operating small shops on government land

Project Could not be undertaken due to land constraint.

Water supply and Sanitation in Gazipur subprojects

A total of 16 households was expected to be affected. Five will lose a very small piece of land for the construction of four proposed tube well, and a public toilet and 11 street hawkers will be temporarily economically displaced. Out of the 11, 2 street hawkers will be partially impacted, and nine will be fully impacted

No resettlement impacts. Resettlement was avoided through design considerations, alternative site selection or land donation process. Due diligence report was prepared instead of updated resettlement plans

Shakhari Bazar Urban Renewal Project

18 households will be temporarily displaced The project could not be undertaken due to feasibility issues.

58 Appendix 15

ENVIRONMENTAL SAFEGUARDS AND MANAGEMENT Environmental Categorization The project was categorized B in accordance with ADB SPS 2009 as the impacts were expected to be minor to moderate, short-term and mitigation measures are readily available. Seven IEEs were prepared on the representative subprojects to identify the nature of impacts and recommend mitigation measures. The potential environmental issues identified in the IEE and considered for mitigation include: (i) soil erosion; (ii) drainage blockage and water logging; (iii) surface and ground water contamination; (iv) vibration and noise impact; (v) air pollution and (vi) community health and safety. An Environmental Assessment and Review Framework (EARF) was developed that provided guidance on assessing and minimizing the impacts for selection and implementation of sub-projects. The two water supply subprojects in Ashulia and Gazipur and an integrated landfill subproject in Jessore were required Environmental Impact Assessments (EIAs) as the subprojects were categorized Red in accordance with Environmental Conservation Act 1995 (Amended in 2010) and Environmental Conservation Rules 1997. Environmental Clearance Certificates (ECC) were obtained from Department of Environment to meet the requirement. The total environmental monitoring, supervision, and mitigation cost considered for this project was $459,328 and semi-annual environmental monitoring report (EMR) was planned for tracking implementation performance of EMP. Environmental Management Plan None of the subprojects were located in proximity of any ecologically sensitive area (ECA), hence, did not have any negative impact on the ECA. Two subprojects (i) urban renewal in Shakhari bazar and solid waste management were not implemented due to non-availability of land. The subproject works involved earthworks and construction normally produce construction-related impacts/issues on the immediate physical and social environment. During the implementation stage, EMPs were prepared and included into the bidding documents of all the construction packages so that it can serve as a condition. The EMPs adequately covered the (i) orientation of contractor by the PMO, (ii) establishment of grievance redress mechanism, (iii) management of construction materials, spoils, and fuel at construction sites and at quarry and borrow sites, (iv) control of dust and noise; (v) protection of worker health and safety; (vi) management of traffic and access obstruction; and (vii) avoiding damage to community facilities. Green infrastructure, such as, solar streetlights, integrated landfill and resource recovery, streetscaping along the footpath and landscaping in the parks or open spaces were carefully designed and implemented in various Pourashavas. Construction of drains carefully considered environmental issues, such as finding an appropriate outlet for discharging wastewater and maintaining habitat of benthos. Of the 41,138.52 km drains constructed only 3484.27 km had concrete lining favoring the ecosystem of subsoil benthos. The successful implementation and operation of integrated landfill subproject in Jessore comprised of waste collection, segregation, composting, sewage sludge treatment, and biogas generation that together demonstrated an example of good solid waste management practice in Bangladesh Environmental Safeguards measures and Environmental Monitoring and Reporting. Implementation arrangement for the EMP and environmental monitoring and reporting was established to execute necessary mitigation measures and monitoring activities. Two categories of consultants were engaged under the project - a) management, design and supervision (mds) consultants and b) individual consultants (international and national). At the implementation, environmental specialist was appointed to support with preparation of IEEs

Appendix 15 59

including EMPs, environmental monitoring and reporting. A total of 8 semi-annual environmental monitoring reports were prepared and disclosed on the implementation performance of safeguard. Nine (9) events have been executed during the project period where five hundred seventy (570) trainees participated in the executed training programs including local government officials, contractors, engineers, safeguard specialists.

Summary of the conducted training programs Type of Training Participants Location/ Pourashava

1. Integrated traffic and environmental proposals for Banani area. 50 Dhaka

2. Training program for design of roads, drains, footways etc. 50 Dhaka North City Corporation

3. Safeguards and Quality Control 68 Gazipur

4. Quality Control during construction, safeguards and environmental impacts

80 Khulna City Corporation

5. Safeguards and Quality Control 62 Jessore

6. Safeguards and Quality Control 59 Manikganj

7. Safeguards and Quality Control 56 Tarabo

8. Quality Control during construction, safeguards and environmental impacts and female participation.

65 Narayanganj City Corporation

9. Quality Control during construction, safeguards and environmental impacts

80 Kaliakoir

60 Appendix 16

STATUS OF COMPLIANCE WITH LOAN COVENANTS

COVENANTS

Reference in the ADB Loan Agreement (LA)/SIDA Grant Agreement (GA)/ KfW Financing Agreement (FA)

Status of Compliance

Particular Covenants: In the carrying out of the Project and operation of the Project facilities, the Borrower/Recipient shall perform, or cause to be performed, all obligations set forth in Schedule 5 to this Loan Agreement/to the Special Operations Loan Agreement.

LA Section 4.01/GA Section 4.01 Complied with Schedule 5 has been analyzed. Complied with : 12 covenants Partially complied with : 01 Not complied with : 00 Total : 13

The Borrower/Recipient shall (i) maintain, or cause to be maintained, separate accounts for the Project; (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; (iii) furnish to ADB, as soon as available but in any event not later than 6 months after the end of each related fiscal year, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors’ opinion on the use of the Loan proceeds and compliance with the financial covenants of this Loan Agreement as well as on the use of the procedures for imprest account and statement of expenditures), all in the English language; and furnish to ADB such other information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request.

LA Section 4.02 (a)/ GA Section 4.02 (a)

Complied with. A separate account for the Project was opened and was operative. The annual project financial statements (APFS) were audited annually by an independent government auditor, Foreign Aided Projects Audit Directorate (FAPAD) that was acceptable to ADB. The draft annual reports submitted to ADB by 31 December each year, except for FY2012 that was received on 7 April 2013, and FY2013 that was received on 2 April 2014. The audit reports were consisted of financial statements, auditor’s report, and procedures of imprest account and SOE. Financial Statements for all the financial years were unqualified. The Management Letter for APFS FY2019 identified four audit observations: three under part A ( serious financial irregularities): (i) Excess payment amounting to Tk286,087.00 made to the participants of foreign visits, (ii) Project account mismatched with i-BASS++ report (DDO wise) by Tk5,489,923.00, (iii) Irregular advance amounting to Tk22,000,000.00 was paid to contractor before final payment; and one in Part B (non-serious financial irregularity) (iv) Unspent balance amounting to Tk17,701.00 was not deposited into government treasury

at the completion of the project period. LGED, through Local

Government Division (LGD) has submitted broad sheet reply to FAPAD for resolving the issues which is under review by FAPAD.

Appendix 16 61

The Borrower/Recipient shall enable ADB, upon ADB’s request, to discuss the Borrower’s financial statements for the Project and its financial affairs related to the Project from time to time with the auditors appointed by the Borrower pursuant to Section 4.02(a) here above, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB, provided that any such discussion shall be conducted only in the presence of an authorized officer of the Borrower unless the Borrower/Recipient shall otherwise agree.

LA Section 4.02 (b)/ GA Section 4.02 (b)

Complied with. ADB from time to time discussed with the EA and FAPAD the financial statements and auditors’ observations. ADB attended the tripartite meetings among the EA, FAPAD, and ADB. During PCR Mission it was reported that there are four unresolved audit observations.

The Borrower/Recipient shall enable ADB's representatives to inspect the Project, the Goods and Works, and any relevant records and documents.

LA Section 4.03 GA Section 4.03

Complied with. The EA was cooperative in providing any information requested during the Project period, especially during review missions and even after project closing during PCR.

Imprest Account and Statement of Expenditures: Except as ADB may otherwise agree, the Borrower shall establish immediately after the Effective Date, imprest account at the Bangladesh Bank. The imprest account shall be established, managed, replenished and liquidated in accordance with the Loan Disbursement Handbook, and detailed arrangements agreed upon between the Borrower and ADB. The currency of the imprest account shall be Dollar. Each IA shall open an SGIA at a commercial bank acceptable to ADB. The currency of the SGIA shall be Taka.

LA Schedule 3, Para. 6 (a)

Complied with. Imprest Account has been established at the Bangladesh Bank. Second Generation Imprest Account (SGIA) has been opened in 29 PIUs. The PIUs are in: City Corporations : 4 Pourashavas : 12 LGED Offices : 6 DPHE : 6 RAJUK : 1 Total : 29

The statement of expenditures procedure may be used for reimbursement of eligible expenditures and to liquidate advances provided into the imprest account, in accordance with the Loan Disbursement Handbook and detailed arrangements agreed upon between the Borrower and ADB.

LA Schedule 3, Section 6 (b)

Complied with. SOE procedures used in accordance with the Loan Disbursement Handbook and detailed arrangements agreed upon between the Borrower and ADB. Imprest advance has been fully liquidated.

62 Appendix 16

Implementation Arrangements: The Borrower, LGED, and the IAs shall ensure that the Project is implemented in accordance with the detailed arrangements set forth in the PAM. Any subsequent change to the PAM shall become effective only after approval of such change by the Borrower and ADB. In the event of discrepancy between the PAM and the Loan Agreement, the provisions of this Loan Agreement shall prevail.

LA Schedule 5, Para. 1/ FA Section 4.i

Complied with. The Project was implemented in accordance with the PAM and Government DPP approved on 2 Aug 2011. No change in implementation arrangements was required.

Counterpart Funding: The Borrower shall provide counterpart funds for Project implementation on time. LGED shall make timely submission of annual budgetary appropriation to MOF and MOF shall ensure prompt disbursement of appropriated funds during each year of Project implementation.

LA Schedule 5, Para. 2/ FA Section 4.ii

Complied with. Adequate counterpart funds were provided by MOF in a timely manner. The Project did not face any fund flow constraint during its implementation. Yearly ADP allocation were (BDT million): 2011-12 : 112.50 (0.9%) 2012-13 : 574.50 (5.6%) 2013-14 : 650.00 (6.0%) 2014-15 : 2,000.00 (19.4%) 2015-16 : 3,750.00 (36.2%) 2016-17 : 1,700.00 (17.9% 2017-18 : 600.00 (7.5%) 1018-19 : 746.80 (6.5%) Total : 9,953.80 (100%)

Coordination among Borrower’s Agencies: The Borrower is fully committed to the Project and shall ensure that all its ministries, agencies and divisions involved in the implementation of the Project, including the local government authorities, give their full cooperation to ensure smooth implementation of the Project.

LA Schedule 5, Para. 3

Complied with. Two inter-ministerial committee meetings held: PSC : 1 ISC 2 Ministry of Local Government, Rural Development and Co-operatives, relevant agencies and departments, including the local government authorities supported and cooperated fully in the implementation of the Project.

Appendix 16 63

Sub-project Selection Criteria: LGED shall ensure that all subprojects are selected and implemented in accordance with the subproject selection criteria prepared for the Project and agreed between ADB and the Borrower and set out in Appendix A to PAM.

LA Schedule 5, Para. 4/ FA Section 4.iii

Complied with. PPTA consultants identified seven specific subprojects for implementation: (i) integrated traffic management in Banani, Dhaka North City Corporation; (ii) water supply and sanitation in Gazipur City Corporation; (iii) solid waste management in Narayanganj City Corporation; (iv) urban services in Ashulial City Center, Dhaka region; (v) energy conservation in Tongi Pourashava; (vi) Khulna drainage improvement and flood protection; and (vii) economic revitalization urban renewal in Shakhari Bazar, Dhaka.

During project implementation, MDS consultants invited subproject

proposals from PIUs. Most of the PIUs proposed infrastructure improvement subprojects (roads, footpaths, public places). The MDS consultants thus selected 14 PIUs and treated as 14 subprojects following subproject selection criteria in PAM. The selected PIUs/Subprojects are: 12 Pourashavas – Tarabo, Sonargaon, Narsingdi, Kanchon, Kaliakoir, Singair, Savar, Manikganj, Jashore, Jhikargacha, Mongla Port, and Nowapara; and 2 city corporations – Narayanganj, and Gazipur.

Memorandum of Understanding for Subproject: Each IA shall enter into a memorandum of understanding (MOU) with LGED. Where necessary, other relevant government agencies may also be a party to the MOU. The MOU shall set out the scope of the subproject and the roles and responsibilities of each of the parties. The loan proceeds and the Borrower’s counterpart funds may be provided to the IAs as 100% grant or may be provided as a combination of loan and grant. For a revenue-generating subproject, the IA shall receive loan funds and shall enter into a subsidiary loan agreement with the MOF.

LA Schedule 5, Para 5

Complied with. MOUs were signed between LGED and IAs. SLA was signed between IAs and MOF for revenue generating subprojects.

64 Appendix 16

Project Website: Within 12 months after the Effective Date, LGED shall create a Project website to disclose information about various matters on the Project, including procurement. With regard to procurement, the website shall include information on the list of participating bidders, name of the winning bidder, basic details on bidding procedures adopted, amount of contract awarded, and the list of goods/services procured

LA Schedule 5, Para. 6

Partially Complied with. The Project website was developed and integrated with the LGED website. The procurements of consultants, works, and goods were not posted in the project website. The website consists of information with detail of Bid packages including the name of the winning contractor and amount contracted amongst other details. Link: http://oldweb.lged.gov.bd/ProjectHome.aspx?projectID=237

Grievance Redress Mechanism: Within 12 months after the Effective Date, LGED shall prepare a Grievance Redress Mechanism, acceptable to ADB, and establish a special committee to receive and resolve complaints/grievances or act upon reports from stakeholders on misuse of funds and other irregularities, including grievances due to resettlement. The special committee shall (i) make public of the existence of this Grievance Redress Mechanism, (ii) review and address grievances of stakeholders of the Project, in relation to either the Project, any of the service providers, or any person responsible for carrying out any aspect of the Project; and (iii) proactively and constructively responding to them.

LA Schedule 5, Para. 7/ FA Section 4.v

Complied with. LGED completed formation of a Grievance Redress Committee (GRC) under the Grievance Redress Mechanism (GRM) for the PIUs under the Project (CRDP) with necessary approval from the Local Government Division (LGD) under the Ministry of Local Government, Rural Development and Co-operatives. The GRM is now functioning at each PIU to resolve complaints/grievances of the stakeholders/ affected people.

Environment: The Borrower, LGED and the IAs shall ensure that:

LA Schedule 5, Para. 8 The project was categorized B in accordance with ADB Environment Policy (2002) and Safeguard Policy Statement 2009 and government’s Environment Conservation Act 1995. Seven IEEs were prepared on the representative subprojects to identify the nature of impacts and recommend mitigation measures.

a. the Subprojects are designed, constructed, operated, and maintained in accordance with Borrower’s environmental Conservation Rule 1997, ADB’s Safeguard Policy Statements (2009) and the EARF prepared for the Project and agreed between the Borrower and ADB;

LA Schedule 5, Para 8(a)/ FA Section 4.vi (a)

Complied with. The selected sub projects were designed, constructed and operated following the Borrower’s environment conservation rule and ADB’s safeguard policy statement. Both the Borrower and ADB agreed on the selection of subproject which was approved in the revised DPP.

Appendix 16 65

b. the EMP and the mitigation measures included therein, as specified in the IEEs, are properly implemented;

LA Schedule 5, Para. 8(b)/ FA Section 4.vi (b)

Complied with. EMP and mitigation measures included in the IEE were properly implemented.

c. the mitigation measures set out in the EMP are incorporated into the bidding documents and Works contracts, and are updated, if necessary, in course of Project implementation with prior clearance from ADB;

LA Schedule 5, Para. 8(c)/ FA Section 4.vi (c)

Complied with. Mitigation measures outlined in the EMP were incorporated into the bidding documents and Works contracts, and were updated, when necessary within the course of project implementation.

d. all environmental permits, licenses and clearances are obtained in a timely manner prior to commencement of Works in the relevant section of the Project roads;

LA Schedule 5, Para. 8(d)/ FA Section 4.vi (d)

Complied with. All environmental clearance certificate was obtained in a timely manner from the Department of Environment before the commencement of the relevant works.

e. any adverse impact on the environment that may arise from the Project implementation is promptly mitigated or minimized in accordance with the EMPs;

LASchedule 5, para. 8(e)/ FA Section 4.vi (e)

Complied with. The progress of EMP implementation in the different subproject jurisdictions was monitored by PMCU. The PMCU and PIU undertook site inspections at regular interval to verify compliance with the EMP and progress toward the final outcome and provided necessary guidance.

f. implementation of the EMPs, including any safety breaches, violation of environmental standards, and corrective measures taken in respect thereof are reported semi-annually to ADB; and

LA Schedule 5, Para. 8 (f) Complied with A total of 8 semi-annual environmental monitoring reports were prepared and disclosed on the implementation of safeguard. Nine (9) events have been executed during the project period where five hundred seventy (570) trainees participated in the executed training programmes including local government officials, contractors, engineers, safeguard specialists.

g. implementation of the EMPs, including any safety breaches, violation of environmental standards, and corrective measures taken in respect thereof are reported, in the Project Management and Coordination Unit’s (PMCU) quarterly report to ADB and KfW.

FA Section 4.vi (f)

66 Appendix 16

h. reports and information are provided to ADB on request to enable it to verify that the Goods, Works, and consulting services financed out of the proceeds of the Loan, have been produced in a responsible manner with a view to resource efficiency, waste minimization, and other environmental considerations.

LA Schedule 5, Para. 8(g)/ FA Section 4.vi (g)

Complied with. All relevant bid evaluation reports, progress reports of goods, services and consulting information were provided to ADB on regular basis as to ensure resource efficiency, waste minimization, and other environmental considerations.

Resettlement: The Borrower, LGED, and the IAs shall ensure that:

LA Schedule 5, Para. 9 Social safeguard issues including land acquisition and resettlements were verified by Resettlement Experts (Individual Consultants) for design completed or implementation ready subprojects to assess the need to prepare Resettlement Plans (RP) or Due Diligence Reports (DDR). However, during subprojects implementation, a detailed impact assessment was done by the Resettlement Specialists based on the final detailed design of the subprojects prepared by MDSC and accordingly Resettlement Specialists prepared new RPs or DDRs.

a. any subproject that involves involuntary resettlement shall be carried out in accordance with the Resettlement Framework (RF) agreed upon between the Borrower and ADB, the Borrower’s Acquisition and Requisition of Immovable Property Ordinance 1982 and subsequent amendments, ADB’s Safeguard Policy Statement (2009), and the RPs;

any subproject that involves involuntary resettlement shall be carried out in accordance with the Resettlement Framework (RF) agreed upon between the Borrower and ADB, the Borrower’s Acquisition and Requisition of Immovable Property Ordinance 1982 and subsequent amendments, ADB’s Safeguard Policy Statement (2009), and the RPs;

LA Schedule 5, Para. 9(a) Complied with After completion of design by the MDS Consultant for the schemes under the subprojects (Water Supply, Sanitation and Drainage in Gazipur City Corporation (GCC), Khulna Drainage Improvement and Flood Protection subproject under Khulna City Corporation, Urban Services Subproject in Ashulia and Banani Integrated Traffic Management under Dhaka North City Corporation), Social Safeguard Consultants thoroughly investigated the social safeguard issues conducting required survey and investigations visiting the sites of different schemes under the above sub-projects. With regard to Water supply component of Gazipur subproject, originally 4 PTW sites were selected on private land. However, finally GCC selected alternative sites on Government/GCC land to avoid private land involvement and a modified due diligence report covering all the components of the Gazipur subproject has been submitted to ADB. In Ashulia Urban center, out of 5 PTWs, 3 PTWs sites were selected to construct on private land through land donation and 2 on Government and Community land without involvement of new land acquisition. As a result, required due diligence activities were done following ADB SPS in connection to land donations by the private owners. Accordingly, a due diligence report covering all the components of the Ashulia Complied.

Appendix 16 67

b. the RP that has been prepared by borrower and ADB, for the sample subprojects, shall be updated and provided to ADB for review and clearance following detailed design and prior to civil works contract award.

LA Schedule 5, Para. 9(b)

Complied with. Subprojects were prepared and submitted to ADB. Khulna Drainage Improvement and Flood Protection subproject required no land acquisition and accordingly, a DDR for this subproject was submitted to ADB. Banani Integrated Traffic Management Subproject required no land acquisition but it required resettlement and rehabilitation of about 241 affected business operators. The RP was approved by ADB on 24 September 2014. The RP implementation activities started in mid May 2015 which included distribution of ID cards to the 241 Project Affected Peoples (PAP) identified so far and preparation of draft Entitled Persons (EP) files of the PAPs. The structure and job description of the Grievance Redressal Committee (GRC), and the Property Valuation Advisory Team (PVAT) were approved by LGD on 23 February 2014, and 18 June 2015 respectively. The GRC under the Banani SP is actively working for receiving/recording complaints from the PAPs and with mitigation of recorded complaints timely following the Project’s GRM procedure.

Up to October 2016, no complaints/grievances were received from the PAPs and all PAPs have received their compensation as per the approved RP. As no land acquisition and resettlement was required for any sub-projects of Batch 2A, Due Diligence Reports (DDRs) have been prepared for all the Batch 2A subprojects under 12 Pourashavas incorporating all design completed packages/schemes. These DDRs have been submitted to ADB.

68 Appendix 16

c. all affected persons are given adequate opportunity to participate in the resettlement planning and implementation;

LA Schedule 5, Para. 9(c) Complied with. Up to the reporting period, in case of the Banani Integrated Traffic Management Subproject only found some people to be affected due to implementation of the subproject. During survey and consultation for the subproject, affected and local people and beneficiaries were consulted ensuring adequate participation of APs during resettlement planning and during subproject implementation. Same procedures were followed where RPs were required to prepare /update for the remaining subprojects.

d. the RPs are disclosed to the affected persons, who are compensated and assisted prior to displacement from their houses, land and assets, before commencement of any Works;

LA Schedule 5, Para. 9(d) Complied with. Followed for the Banani sub-project as sample and replicated for the other subprojects, where applicable.

e. additional assistance is provided for vulnerable groups;

LA Schedule 5, Para. 9(e), Complied with. Provision was made for the vulnerable groups in the RP prepared for Banani subproject following the RF and sample and replicated to vulnerable groups for other subprojects during RP preparation and implementation, where applicable.

f. works contracts under the Project include requirements to comply with the RPs;

LA Schedule 5, para 9 (f) Complied with. Provision included in the bidding documents of the Works contracts.

g. implementation of the RPs is monitored internally by the PIUs and reported monthly to the PCU who shall report the results semiannually to ADB; and

LA Schedule 5, Para. 9(g) Complied with. The PIUs monitored the implementations of RPs and report submitted to PCU on a regular basis. The project regularly submitted semiannual monitoring reports.

h. affected person(s) have an opportunity to express grievance at appropriate levels, and that local officials are instructed to resolve disputes and implement measures promptly in accordance with the grievance redress process outlined in the resettlement plan.

LA Schedule 5, Para. 9(h) Complied with. The GRCs under the subprojects actively worked for receiving/recording complaints from the PAPs and mitigated the recorded complaints timely following the Project’s GRM procedure.

Appendix 16 69

Gender: To ensure that women benefit equally from the Project and interventions avoid gender bias, the Borrower, LGED and the IAs shall ensure that the Project shall be carried out in accordance with ADB’s Policy on Gender and Development (1998) and the Gender Action Plan that has been prepared for the Project and agreed between the Borrower and ADB.

Complied with. The Project was carried out in accordance with ADB’s Policy on Gender and Development (1998). A Gender Action Plan (GAP) was prepared for the Project and agreed between the Borrower and ADB. The gender aspect has been included in the bidding documents. Besides, the design of Batch-1 sub-projects and the feasibility studies of Batch-2A and Batch-2B sub-projects were responsive to the gender aspects. Under sub-project activity in Banani, 9 women were identified as PAPs and compensation was given to them as per the approved RP.

From January 2016, the Project’s Quarterly Progress Report on GAP has started reporting in sex-disaggregated information in relation to employment of women workers in CRDP generated infrastructure activities. On the quality of GAP progress, the Aide Memoire of the Mid Term Review Mission (15-23 April 2015) observed that the “implementation of GAP was satisfactory. Awareness was created among the management personnel on importance of integrating gender in all 3 project components and creating employment opportunities for women.

Labor: The Borrower, LGED and the IAs shall ensure that the works contractors, comply with all applicable labor, health, and safety laws and regulations of Bangladesh and, in particular, (a) do not employ child labor for construction and maintenance activities, and (b) provide appropriate facilities (latrines, etc.) for workers at construction sites. The Borrower shall require contractors not to differentiate wages between men and women for work of equal value. The Borrower, LGED and the IAs shall ensure that specific clauses shall be included in bidding documents to ensure adherence to these provisions, and that compliance shall be strictly monitored during project implementation.

LA Schedule 5, Para 11

Complied with. Compliance requirements were included in bidding documents. Moreover, proper monitoring was undertaken frequently to ensure compliance of labor issues along with awareness building among the staffs of PIU, Contractors, MDSC through conducting orientation/training in different Pourashavas.

70 Appendix 16

Anticorruption

a) The Borrower, LGED and the IAs shall ensure that:

It shall comply with ADB’s Anticorruption Policy (1998, as amended to date) and the Policy relating to Enhancing ADB’s Role in Combating Money Laundering and the Financing of Terrorism (2003). The Borrower, LGED and the IAs (i) acknowledges ADB’s right to investigate, directly or through its agents, any alleged corrupt, fraudulent, collusive or coercive practices relating to the Project;

LA Schedule 5, Para 12(a)

Complied with. No such allegation or complaint was received or recorded.

(ii) agrees to cooperate fully with and to cooperate fully with any such investigation and to extend all necessary assistance, including providing access to all relevant books and records, as may be necessary for the satisfactory completion of any such investigation; and (iii) agrees to refrain from engaging in money laundering activities or financing of terrorism and shall allow ADB to investigate any violation or potential violation of these undertakings.

b) The Borrower shall (a) ensure each of the IAs conduct periodic monitoring inspections on all contractors’ activities related to fund withdrawals and settlements and (b) ensures that all contracts financed by ADB in connection with the Project include provisions specifying the right of ADB to audit and examine the records and accounts of LGED, each of the IAs and all contractors, suppliers, consultants and other service providers as they relate to the Project.

LA Schedule 5, Para. 12(b) Complied with. IAs conducted periodic monitoring during contract implementation and during clearance of contractors bills. ADB inspected contract activities during project/loan review missions, and MTR.

Appendix 16 71

Project Performance Monitoring System: Within 6 months after the Effective Date, LGED and the IAs shall establish a project performance monitoring system using the targets, indicators, assumptions, and risks in the DMF. Within 12 months of loan effectiveness, the baseline data corresponding to indicators and targets set out in the DMF shall be gathered during the detailed design stage, disaggregated by income levels and sex as required. After the initial baseline survey, the PIUs with support of PMCU and consultants shall conduct annual survey and quarterly monitoring of indicators and submit quarterly report to PMCU throughout project implementation

LA Schedule 5, Para. 13 Complied with. A project performance monitoring system was developed and used in reporting the overall progress of the Project. The Baseline survey was conducted. Data obtained in the Baseline Survey was used in the Evaluation Survey of the Project to make comparisons on the outcome of the Project. Quarterly Progress Reports were submitted by PMCU on a regular basis.

72 Appendix 17

TECHNOLOGY TRANSFER/TRAINING/SEMINARS

Selected list of training and seminar events arranged by MDS

Type of Event Role of MDSC and Specialists

Dates Location Participants and numbers

Results

Consultation Meeting concerning draft traffic and environmental proposals for Banani area.

MDS Lead the event with support of DNCC and PMCU.

13-May-13

Hotel Serina, Banani, Dhaka

Approximately 50 people

Stakeholders aware of the issues and potential solutions.

Training program for design of roads, drains, footways etc.

MDS Team prepared and implemented design training event

26-May-13

Dhaka North City Council

Approximately 50 Participants included site Engineers, Contractors, Safeguard Specialists and Gender Specialists

Engineers and others became aware of design issues and opportunities

Safeguards and Quality Control

MDS Team prepared and implemented training event

18-June-14

Gazipur 68 including Resources from CRDP. Participants included site Engineers, Safeguard Specialists and Gender Specialists

Quality Control during construction, safeguards and environmental impacts and female participation.

MDS Team prepared and implemented quality control training event

24-June-14

Khulna City Corporation

Approximately 80 Participants included site Engineers, Contractors, Safeguard Specialists and Gender Specialists

Participants became aware of issues raised.

Safeguards and Quality Control

MDS Team prepared and implemented training event

21-Augt-14

Jashore 62 including Resources from CRDP. Participants included site Engineers, Contractors, Safeguard Specialists and Gender Specialists

Safeguards and Quality Control

MDS Team prepared and implemented training event

25-Sept-14

Manikganj 59 including Resources from CRDP. Participants included site Engineers, Contractors, Safeguard Specialists and Gender Specialists

Safeguards and Quality Control

MDS Team prepared and implemented training event

22-Dec--14

Tarabo 56 including Resources from CRDP. Participants Engineers, Contractors, Safeguard Specialists and Gender Specialists

Quality Control during construction, safeguards and environmental impacts and female participation.

MDS Team prepared and implemented quality control training event

14-Dec-15

Narayanganj City Corporation

Approximately 65 Participants included site Engineers, Contractors, Safeguard Specialists and Gender Specialists

Participants became aware of issues raised.

Quality Control during construction, safeguards and environmental

MDS Team prepared and implemented

18-May-16

Kaliakoir Approximately 80 Participants included site Engineers, Contractors, Safeguard

Participants became aware of issues raised.

Appendix 17 73

Type of Event Role of MDSC and Specialists

Dates Location Participants and numbers

Results

impacts and female participation.

quality control training event

Specialists and Gender Specialists

9 events May 13-May 16

9 locations Total 570 participants

74 Appendix 18

ECONOMIC AND FINANCIAL ANALYSIS A. Re-evaluation scope, methodology and data input

1. The economic internal rates of return (EIRR) to ascertain project efficiency for water supply, waste management, urban drainage and urban transport components for the four sample interventions of four of the project urban local bodies (ULBs) were assessed upon project completion, and compared with appraisal estimates: (i) Water Supply and Sanitation in Gazipur (WSS), (ii) Solid-Waste Management in Jessore (SWM), (iii) Urban Services in Ashulia Urban Center (USA), and (iv) Integrated Traffic Management in Banani Road under Dhaka North City Corporation (ITM). Economic reevaluation also includes sensitivity analysis, at a 10% reduction of future benefits. 2. During Project implementation, the MDS consultants selected 14 PIUs as subprojects, of which economic and financial evaluation was conducted for nine PIUs. The subprojects were approved by both ADB and the government. The sample covers analysis of 13 subprojects out of total 21 subprojects under the project representing 62% sample size. Overall project EIRR has been calculated based on four infrastructure subprojects and nine PIUs. 3. Financial analysis assessed the ability of the urban local bodies and line agencies to meet its operation and maintenance (O&M) costs out of its revenue streams and was undertaken for revenue -generating WSS in Gazipur where facility has been handed over to the ULB.

4. The economic and financial analysis was based on ADB’s Guidelines for the Economic Analysis of Projects (2017), Guidelines for the Economic Analysis of Water Supply Projects (1998) and Financial Management and Analysis of Projects (2005). Detailed assumptions for the analyses narrated separately. Data from DPHE, LGED, Jashore Pouroshavas, Gazipur City Corporation, project management and coordination unit (PMCU), project implementation units (PIUs) were used for analyses. Project costs were derived from the actual disbursement summary for each package by ADB and Government of Bangladesh (GOB).

5. By the end of the project, interventions in multiple sectors resulted in increased economic benefits from availability of regular water supply, waste treatment plants, improvement of roads and drainage network, installation of solar street lights and energy efficient pumps, improvement of traffic management systems benefitted the citizens and commuters. Jashore Pouroshava were given sewer cleaning equipment, which were utilized, and some had outlived their economic life at the end of the project.

6. The economic and financial analysis demonstrates that the sub-projects are financially and economically viable and sustainable in the long run. Based on the financial and economic results of sample sub-projects, the level of efficiency in implementing the Project is considered as satisfactory. The CRDP is therefore efficient in achieving its outputs and purposes in long run for public utility.

7. Due to COVID-19 pandemic, it was difficult to collect all the required documents from the respective PIUs covered under the study. However, to optimize the outcome of our study, the PCR relied on virtual mediums to communicate and cooperate with assigned personnel and collect the necessary information. Without physical presence and review, and face-to-face discussion, proper due-diligence and dig-down of all necessary information were challenging.

Appendix 18 75

8. The project costs (equivalent $165.07 million) include the disbursements made by ADB, SIDA, and KfW, and the local costs incurred by GOB until 30 Dec 2018. The costs were converted to US Dollars at the exchange value on the date of disbursement. B. Economic Evaluation

I. At Appraisal

9. The selection criteria for the subprojects required an EIRR exceeding economic opportunity cost of capital (EOCC) of 12% for investments under the Project. The economic net present value (ENPV) for select subprojects, assessed during loan appraisal in 2010, were positive, applying discount rates of 12%. Sensitivity analysis indicated that EIRR was most sensitive to decrease in benefit, though EIRR remained above 12% in all sensitivity analyses. Subprojects’ economic life depending on the nature of works ranges from 15 to 25 years. Economic prices of capital works and operation and maintenance expenditures are estimated by converting financial prices with a shadow exchange rate factor of 1.13, a shadow wage rate factor of 0.9 for skilled labor, and a shadow wage rate factor of 0.7 for unskilled labor.

10. At appraisal, the sample subprojects for the economic evaluation and the corresponding resultant EIRR were: (i) 20.02% for water supply and sanitation subproject in Gazipur City Corporation (GCC), (ii) 24.35% for solid waste management in Narayanganj, (iii) 35.22% for urban services in Ashulia, Dhaka Region, and (iv) 52.92% for integrated traffic management in Banani, Dhaka North City Corporation.

II. At Completion

11. The approach used during appraisal was applied for the recalculation of the EIRR and compared with EOCC of 12%. Economic life of the subproject was considered to be 25 years.

12. Water supply and Sanitation: EIRR evaluation for this subproject at GCC considered (i) the economic cost of interventions and (ii) Savings from Reduction of Water Logging and Increase of Crop Production. PCR mission discussed with the GCC regarding reduction of waterlogging on with and without project scenario. It was noted from the discussion that water logging has been reduced to 6,000 million liter per annum for improved drainage facilities under the Project. It will continue up to 20 years after project completion provided that the built facilities are well maintained. The situation would be deteriorated by 500 million liters of water logging per annum from year 21. Reduction of water logging is assumed to be contributed to increased agriculture production by 1,200 tons per annum comprising paddy and vegetables. Annual production is assumed to be increased by 1% per annum up to FY2030 and 3% thereafter for improved agricultural technology and mass awareness and demonstration practices of Department of Agricultural Extension and electronic media. Average unit price at kitchen market has been considered in determining economic benefits

13. Solid waste management: EIRR evaluation for this subproject at Jasshore considered (i) the economic cost of interventions, (ii) Environmental Protection and Health Cost Savings; and (iii) Sewerage Maintenance Cost Savings. The savings has been assessed based on with project – without project conditions. The costs and benefits are assumed from virtual discussion with concerned official of Jasshore Pourashava since no field visits could be undertaken due to COVID Pandemic. The EIRR has been assessed from economic benefits derived considering less diseases, reduced frequency of visiting physicians and thereby reducing medicine cost. During discussion on several occasion and team meetings it is estimated that a family of 5 members

76 Appendix 18

saves BDT 750 per year on health issues. The sewerage maintenance cost savings had been considered by saving an average number of hours for sewerage management at a rate of BDT 15 per hour.

14. Urban Services: Economic evaluation for this subproject at Ashulia urban center under Dhaka region considered (i) economic cost of intervention, (ii) Savings from Reduction of Water Logging and Increase of Crop Production; and (iii) Savings from the Improvement of Sanitation.

15. Integrated Traffic Management: Economic evaluation for the subproject as Banani under Dhaka North City Corporation considered (i) economic cost of intervention; (ii) savings from travel cost; (iii) savings from accidents reduction; and (iv) savings from improved traffic and safe environment. 16. Drainage and Road component of PIUs: Economic evaluation for the 9 subproject under 9 PIUs considered (i) economic cost of intervention; (ii) savings from travel cost; (iii) savings from accidents reduction; and (iv) Savings from reduction of water logging 17. During subproject selection in Project implementation stage, the Pourashavas submitted proposals for urban infrastructure improvement subprojects - roads and drainage improvement. Due to similar nature of subprojects proposed, subprojects were selected based on PIU proposal and feasibility studies. Each PIU was considered as a subproject. A total of 14 such PIUs were selected, of which, required data could be gathered from nine PIUs for calculating EIRR. Thus, overall project EIRR is based on four PPTA subprojects and nine subprojects/PIUs. The list of subprojects is in Appendix 19. The cost of project intervention for this 4 infrastructure sub projects and 9 PIUs are considered as the capital cost in calculating the EIRR. O&M cost for all the subprojects were considered differently for different sub project as appropriate that has been reflected in the EIRR. 18. Subprojects under PIUs mostly constituted of road construction and renovation, drainage network, canal re-excavation and land scaping in few Pourashavas. The urban drainage component rehabilitated drainage outfalls, reducing the incidence of waterlogging by 61% through 213.68 km of improved drains and 18.81 km of canal re-excavation. Because of the infrastructure development in the Pourashavas, property and holding taxes for nine PIUs were found to be increasing by 9% annually. The land and street scaping in Gazipur and Kanchon Pourashava improved the aesthetic beauty of the areas. The urban transport component improved mobility, including access to economic opportunities for the poor, by eliminating vehicle idling time and traffic congestion.

III. Analysis and reevaluation of Findings

19. EIRR calculated at completion is higher than the benchmark value of 12%, justifying project investments. Several indirect and direct benefits could not be quantified and hence have not been captured in the analysis, though qualitative assessments demonstrate their contribution in improving urban environment and quality of life. The summary of EIRR for the reevaluated subprojects at completion is in Table A9.1 and A9.2.

Appendix 18 77

Table A9.1. Summary EIRR at Completion – 4 Infrastructure Improvement Subprojects

Subproject ENPV (Base) (BDT million)

EIRR (Base) (%)

Water Supply and Sanitation at GCC 111.73 29.10 Solid Waste Management in Jashore 258.51 24.64 Urban Services in Ashulia 590.80 38.04 Integrated Traffic Management at Banani 1,138.59 49.40

EIRR = economic internal rate of return, ENPV = economic net present value, GCC = Gazipur City Corporation.

20. EIRR and economic net present value (ENPV) at completion at base case for all the PPTA subprojects are higher than appraisal estimates, except for EIRR for integrated traffic management subproject. Results of economic analysis of the four infrastructure improvement subprojects at project completion and at appraisal are compared in Table A9.2. Detailed cash flows for each are given in Tables A9.2.1 to A9.2.4. The subsequent Table A9.3 presents the economic analysis results for the nine selected Pourashavas and Table A9.4 presents the economic analysis of the overall project.

78 Appendix 18

Table A9.2: Comparison of Economic Results at Completion and At Appraisal – 4 Infrastructure Improvement Subprojects

Particulars

NPV (BDT million) EIRR (%)

At Completion

At Appraisal

At Completion

At Appraisal

Water Supply and Sanitation in Gazipur

Base Case 112 163.76 29.10% 20.02%

O&M Cost +10% 106 160.54 28.23% 19.87%

Benefits -10% 86 117.05 24.84% 17.88%

Solid-Waste Management in Jashore

Base Case 258 56.97 24.64% 24.35%

O&M Cost +10% 248 50.90 24.06% 23.02%

Benefits -10% 198 34.03 21.49% 19.37%

Urban Services in Ashulia Urban Center

Base Case 591 232.18 38.04 35.22

O&M Cost +10% 345 229.98 37.50 34.47

Benefits -10% 294 196.17 34.47 32.19

Integrated Traffic Management in Banani Road

Base Case 1,139 826.12 49.40% 52.92%

O&M Cost +10% 1,102 821.27 47.90% 52.77%

Benefits -10% 802.38 703.86 37.09% 47.69%

Appendix 18 79

Table A9.2.1: Economic Analysis for Water and Sanitation Subproject and Gazipur City Corporation

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2011-2017

2017-2018 213.00 108.01 11.46 0.00 8.19 19.66 57.32 213.00 19.66 57.32 -167.14 0.4523 -75.61

2018-2019 107.90 11.58 0.00 8.19 19.77 57.90 0.00 19.77 57.90 46.32 0.4039 18.71

2019-2020 113.20 11.69 0.00 8.19 19.89 58.47 0.00 19.89 58.47 46.78 0.3606 16.87

2020-2021 118.76 11.93 0.00 8.19 20.12 59.65 0.00 20.12 59.65 47.72 0.3220 15.36

2021-2022 124.60 12.05 0.00 8.19 20.24 60.25 0.00 20.24 60.25 48.20 0.2875 13.86

2022-2023 130.73 12.17 0.00 8.19 20.36 60.85 0.00 20.36 60.85 48.68 0.2567 12.49

2023-2024 137.16 12.29 0.00 8.19 20.48 61.46 0.00 20.48 61.46 49.17 0.2292 11.27

2024-2025 143.91 12.41 0.00 8.19 20.61 62.07 0.00 20.61 62.07 49.66 0.2046 10.16

2025-2026 150.99 12.54 0.00 8.19 20.73 62.69 0.00 20.73 62.69 50.15 0.1827 9.16

2026-2027 158.42 12.66 0.00 8.19 20.86 63.32 0.00 20.86 63.32 50.66 0.1631 8.26

2027-2028 166.23 12.79 0.00 8.19 20.98 63.95 0.00 20.98 63.95 51.16 0.1456 7.45

2028-2029 174.42 12.92 0.00 8.19 21.11 64.59 0.00 21.11 64.59 51.67 0.1300 6.72

2029-2030 183.01 13.05 0.00 8.19 21.24 65.24 0.00 21.24 65.24 52.19 0.1161 6.06

2030-2031 200.83 14.89 0.00 8.19 23.08 74.43 0.00 23.08 74.43 59.55 0.1037 6.17

2031-2032 220.25 15.33 0.00 8.19 23.53 76.66 0.00 23.53 76.66 61.33 0.0926 5.68

2032-2033 241.60 15.79 0.00 8.19 23.99 78.96 0.00 23.99 78.96 63.17 0.0826 5.22

2033-2034 265.06 16.27 0.00 8.19 24.46 81.33 0.00 24.46 81.33 65.07 0.0738 4.80

2034-2035 290.83 16.75 0.00 8.19 24.95 83.77 0.00 24.95 83.77 67.02 0.0659 4.42

2035-2036 319.16 17.26 0.00 8.19 25.45 86.29 0.00 25.45 86.29 69.03 0.0588 4.06

2036-2037 350.30 17.78 0.00 8.19 25.97 88.88 0.00 25.97 88.88 71.10 0.0525 3.73

2037-2038 384.52 18.31 0.00 8.19 26.50 91.54 0.00 26.50 91.54 73.23 0.0469 3.43

2038-2039 422.13 18.86 0.00 8.19 27.05 94.29 0.00 27.05 94.29 75.43 0.0419 3.16

2039-2040 463.47 19.42 0.00 8.19 27.62 97.12 0.00 27.62 97.12 77.69 0.0374 2.90

2040-2041 508.92 20.01 0.00 8.19 28.20 100.03 0.00 28.20 100.03 80.02 0.0334 2.67

2041-2042 558.87 20.61 0.00 8.19 28.80 103.03 0.00 28.80 103.03 82.42 0.0298 2.46

2042-2043 613.79 21.22 0.00 8.19 29.42 106.12 0.00 29.42 106.12 84.90 0.0266 2.26

Total: 1,960.22 213.00 411.50 1,960.22

Net Present Value (NPV) 111.73 Economic Internal Rate of Return (EIRR) 29.10%

80 Appendix 18

Table A9.2.2: Economic Analysis Solid Waste Management in Jashore

Fin

an

cia

l Y

ear

In

itia

l C

ash

Flo

w

In

cre

men

tal

Reven

ue

In

cre

men

tal O

&M

Co

st

Fin

an

cia

l C

os

t

Dep

recia

tio

n

Exp

en

se

Op

era

tin

g C

os

t

Eco

no

mic

Ben

efi

t

Base Case

Cap

ital C

os

t

In

cre

men

tal

Reven

ue

In

cre

men

tal

Op

era

tin

g

Co

st

In

cre

men

tal

Net

Inc

om

e

Eco

no

mic

Ben

efi

t

Net

Eco

no

mic

Cash

Flo

w

Dis

co

un

t F

acto

r (1

2%

)

Dis

co

un

ted

Eco

no

mic

Cash

Flo

w

2011-2018

2018-2019 240.00 18.31 9.41 0.00 0.00 9.41 31.35 240.00 18.31 9.41 8.90 31.35 -199.74 1.0000 -199.74

2019-2020 19.23 9.69 0.00 9.23 18.92 32.30 0.00 19.23 18.92 0.31 32.30 41.83 0.8929 37.35

2020-2021 20.19 9.98 0.00 9.23 19.21 33.27 0.00 20.19 19.21 0.97 33.27 43.48 0.7972 34.66

2021-2022 21.20 10.28 0.00 9.23 19.51 34.28 0.00 21.20 19.51 1.68 34.28 45.19 0.7118 32.17

2022-2023 22.26 10.59 0.00 9.23 19.82 35.31 0.00 22.26 19.82 2.43 35.31 46.98 0.6355 29.85

2023-2024 23.37 10.91 0.00 9.23 20.14 36.38 0.00 23.37 20.14 3.22 36.38 48.83 0.5674 27.71

2024-2025 24.54 11.24 0.00 9.23 20.47 37.48 0.00 24.54 20.47 4.06 37.48 50.77 0.5066 25.72

2025-2026 25.76 11.58 0.00 9.23 20.81 38.61 0.00 25.76 20.81 4.95 38.61 52.79 0.4523 23.88

2026-2027 27.05 11.93 0.00 9.23 21.16 39.77 0.00 27.05 21.16 5.89 39.77 54.89 0.4039 22.17

2027-2028 28.40 12.29 0.00 9.23 21.52 40.98 0.00 28.40 21.52 6.88 40.98 57.09 0.4039 23.06

2028-2029 29.83 12.66 0.00 9.23 21.89 42.21 0.00 29.83 21.89 7.93 42.21 59.37 0.3606 21.41

2029-2030 31.32 13.05 0.00 9.23 22.28 43.49 0.00 31.32 22.28 9.04 43.49 61.76 0.3220 19.88

2030-2031 32.88 13.44 0.00 9.23 22.67 44.80 0.00 32.88 22.67 10.21 44.80 64.24 0.2875 18.47

2031-2032 34.53 13.85 0.00 9.23 23.08 46.15 0.00 34.53 23.08 11.45 46.15 66.83 0.2567 17.15

2032-2033 36.25 14.26 0.00 9.23 23.49 47.55 0.00 36.25 23.49 12.76 47.55 69.54 0.2292 15.94

2033-2034 38.07 14.69 0.00 9.23 23.93 48.98 0.00 38.07 23.93 14.14 48.98 72.35 0.2046 14.80

2034-2035 39.97 15.14 0.00 9.23 24.37 50.46 0.00 39.97 24.37 15.60 50.46 75.29 0.1827 13.76

2035-2036 41.97 15.60 0.00 9.23 24.83 51.98 0.00 41.97 24.83 17.14 51.98 78.36 0.1631 12.78

2036-2037 44.07 16.07 0.00 9.23 25.30 53.55 0.00 44.07 25.30 18.77 53.55 81.55 0.1456 11.88

2037-2038 46.27 16.55 0.00 9.23 25.78 55.17 0.00 46.27 25.78 20.49 55.17 84.89 0.1300 11.04

2038-2039 48.58 17.05 0.00 9.23 26.28 56.84 0.00 48.58 26.28 22.30 56.84 88.37 0.1161 10.26

2039-2040 51.01 17.57 0.00 9.23 26.80 58.55 0.00 51.01 26.80 24.21 58.55 92.00 0.1037 9.54

2040-2041 53.56 18.10 0.00 9.23 27.33 60.32 0.00 53.56 27.33 26.23 60.32 95.79 0.0926 8.87

2041-2042 56.24 18.64 0.00 9.23 27.87 62.14 0.00 56.24 27.87 28.37 62.14 99.74 0.0826 8.24

2042-2043 59.05 19.21 0.00 9.23 28.44 64.02 0.00 59.05 28.44 30.62 64.02 103.86 0.0738 7.66

Total: 1,145.95 240.00 515.10 377.53 1,145.95

Net Present Value (NPV) 258.51 Economic Internal Rate of Return (EIRR) 24.64%

Appendix 18 81

Table A9.2.3: Economic Analysis for Urban Services in Ashulia

Fin

an

cia

l Y

ear

In

itia

l C

ash

Flo

w

In

cre

men

tal

Reven

ue

In

cre

men

tal O

&M

Co

st

Fin

an

cia

l C

os

t

Dep

recia

tio

n

Exp

en

se

Op

ert

ing

Co

st

Eco

no

mic

Ben

efi

t

Base Case

Cap

ital C

os

t

In

cre

men

tal

Reven

ue

In

cre

men

tal

Op

era

tin

g C

os

t

In

cre

men

tal N

et

Inc

om

e

Eco

no

mic

Ben

efi

t

Net

Eco

no

mic

Cash

Flo

w

Dis

co

un

tin

g

facto

r (1

2%

)

Dis

co

un

ted

E

co

no

mic

Cash

Flo

w

2011-2018

2018-2019 50.00 4.59 17.00 1.95 2.00 18.95 57.39 50.00 4.59 18.95 -14.36 57.39 -4.97 1.00 -4.97

2019-2020 4.82 19.00 0.00 2.00 19.00 60.46 0.00 4.82 19.00 -14.18 60.46 48.28 0.89 43.10

2020-2021 5.06 22.00 0.00 2.00 22.00 63.70 0.00 5.06 22.00 -16.94 63.70 48.76 0.80 38.87

2021-2022 5.31 23.00 0.00 2.00 23.00 67.13 0.00 5.31 23.00 -17.69 67.13 51.44 0.71 36.61

2022-2023 5.58 24.00 0.00 2.00 24.00 70.75 0.00 5.58 24.00 -18.42 70.75 54.33 0.64 34.52

2023-2024 5.86 26.00 0.00 2.00 26.00 74.57 0.00 5.86 26.00 -20.14 74.57 56.43 0.57 32.02

2024-2025 6.15 29.00 0.00 2.00 29.00 78.61 0.00 6.15 29.00 -22.85 78.61 57.76 0.51 29.26

2025-2026 6.46 12.00 0.00 2.00 12.00 82.88 0.00 6.46 12.00 -5.54 82.88 79.34 0.45 35.89

2026-2027 6.78 15.00 0.00 2.00 15.00 87.40 0.00 6.78 15.00 -8.22 87.40 81.18 0.40 32.79

2027-2028 7.12 18.43 0.00 2.00 18.43 92.17 0.00 7.12 18.43 -11.31 92.17 82.85 0.36 29.88

2028-2029 7.48 19.44 0.00 2.00 19.44 97.21 0.00 7.48 19.44 -11.97 97.21 87.24 0.32 28.09

2029-2030 7.85 20.51 0.00 2.00 20.51 102.54 0.00 7.85 20.51 -12.66 102.54 91.88 0.29 26.41

2030-2031 8.24 21.64 0.00 2.00 21.64 108.18 0.00 8.24 21.64 -13.39 108.18 96.78 0.26 24.84

2031-2032 8.66 22.83 0.00 2.00 22.83 114.14 0.00 8.66 22.83 -14.17 114.14 101.96 0.23 23.37

2032-2033 9.09 24.09 0.00 2.00 24.09 120.44 0.00 9.09 24.09 -15.00 120.44 107.44 0.20 21.98

2033-2034 9.54 25.42 0.00 2.00 25.42 127.10 0.00 9.54 25.42 -15.88 127.10 113.22 0.18 20.69

2034-2035 10.02 26.83 0.00 2.00 26.83 134.15 0.00 10.02 26.83 -16.81 134.15 119.34 0.16 19.47

2035-2036 10.52 28.32 0.00 2.00 28.32 141.60 0.00 10.52 28.32 -17.80 141.60 125.80 0.15 18.32

2036-2037 11.05 29.90 0.00 2.00 29.90 149.48 0.00 11.05 29.90 -18.85 149.48 132.63 0.13 17.25

2037-2038 11.60 31.56 0.00 2.00 31.56 157.82 0.00 11.60 31.56 -19.96 157.82 139.85 0.12 16.24

2038-2039 12.18 33.33 0.00 2.00 33.33 166.64 0.00 12.18 33.33 -21.15 166.64 147.49 0.10 15.29

2039-2040 12.79 35.19 0.00 2.00 35.19 175.97 0.00 12.79 35.19 -22.41 175.97 155.56 0.09 14.40

2040-2041 13.43 37.17 0.00 2.00 37.17 185.84 0.00 13.43 37.17 -23.74 185.84 164.10 0.08 13.56

2041-2042 14.10 39.26 0.00 2.00 39.26 196.28 0.00 14.10 39.26 -25.16 196.28 173.12 0.07 12.77

2042-2043 14.80 41.47 0.00 2.00 41.47 207.33 0.00 14.80 41.47 -26.66 207.33 182.67 0.07 12.03

Total: 2,919.75 50.00 129.13 396.45 2,919.75

Net Present Value (NPV) 590.8 Economic Internal Rate of Return (EIRR) 38.04%

82 Appendix 18

Table A9.2.4: Economic Analysis for Integrated Traffic Management at Banani under Dhaka North City Corporation

Fin

an

cia

l Y

ear

In

itia

l C

ash

Flo

w

In

cre

men

tal O

&M

Co

st

Fin

an

cia

l C

os

t

Dep

recia

tio

n

Exp

en

se

Op

era

tin

g C

os

t

Eco

no

mic

Ben

efi

t

Base Case

Cap

ital C

os

t

In

cre

men

tal

Op

era

tin

g C

os

t

In

cre

men

tal N

et

Ben

efi

t

Eco

no

mic

Ben

efi

t

Net

Eco

no

mic

Cash

Flo

w

Dis

co

un

t F

acto

r (1

2%

)

Dis

co

un

ted

E

co

no

mic

Cash

Flo

w

2011-2018

2017-2018 500.00 33.69 19.50 19.23 52.92 168.44 500.00 52.92 -52.92 168.44 -345.75 1.0000 -345.75

2018-2019 36.08 19.50 19.23 55.32 180.42 0.00 55.32 -55.32 180.42 163.84 0.8929 146.28

2019-2020 36.91 19.50 19.23 56.14 184.53 0.00 56.14 -56.14 184.53 167.12 0.7972 133.23

2020-2021 37.75 19.50 19.23 56.98 188.73 0.00 56.98 -56.98 188.73 170.48 0.7118 121.35

2021-2022 38.60 19.50 19.23 57.84 193.02 0.00 57.84 -57.84 193.02 173.92 0.6355 110.53

2022-2023 39.48 19.50 19.23 58.71 197.42 0.00 58.71 -58.71 197.42 177.44 0.5674 100.68

2023-2024 40.38 19.50 19.23 59.61 201.92 0.00 59.61 -59.61 201.92 181.03 0.5066 91.72

2024-2025 41.30 19.50 19.23 60.53 206.52 0.00 60.53 -60.53 206.52 184.71 0.4523 83.56

2025-2026 42.25 19.50 19.23 61.48 211.23 0.00 61.48 -61.48 211.23 188.48 0.4039 76.12

2026-2027 43.21 19.50 19.23 62.44 216.04 0.00 62.44 -62.44 216.04 192.33 0.3606 69.36

2027-2028 44.19 19.50 19.23 63.42 220.97 0.00 63.42 -63.42 220.97 196.27 0.3220 63.19

2028-2029 45.20 19.50 19.23 64.43 226.01 0.00 64.43 -64.43 226.01 200.31 0.2875 57.58

2029-2030 46.23 19.50 19.23 65.46 231.16 0.00 65.46 -65.46 231.16 204.43 0.2567 52.47

2030-2031 47.29 19.50 19.23 66.52 236.44 0.00 66.52 -66.52 236.44 208.65 0.2292 47.82

2031-2032 48.37 19.50 19.23 67.60 241.84 0.00 67.60 -67.60 241.84 212.97 0.2046 43.58

2032-2033 49.47 19.50 19.23 68.70 247.36 0.00 68.70 -68.70 247.36 217.39 0.1827 39.72

2033-2034 50.60 19.50 19.23 69.83 253.01 0.00 69.83 -69.83 253.01 221.91 0.1631 36.20

2034-2035 51.76 19.50 19.23 70.99 258.79 0.00 70.99 -70.99 258.79 226.53 0.1456 32.99

2035-2036 52.94 19.50 19.23 72.17 264.71 0.00 72.17 -72.17 264.71 231.26 0.1300 30.07

2036-2037 54.15 19.50 19.23 73.38 270.76 0.00 73.38 -73.38 270.76 236.10 0.1161 27.41

2037-2038 55.39 19.50 19.23 74.62 276.95 0.00 74.62 -74.62 276.95 241.06 0.1037 24.99

2038-2039 56.66 19.50 19.23 75.89 283.28 0.00 75.89 -75.89 283.28 246.13 0.0926 22.78

2039-2040 57.95 19.50 19.23 77.18 289.76 0.00 77.18 -77.18 289.76 251.31 0.0826 20.77

2040-2041 59.28 19.50 19.23 78.51 296.39 0.00 78.51 -78.51 296.39 256.61 0.0738 18.94

2041-2042 60.64 19.50 19.23 79.87 303.18 0.00 79.87 -79.87 303.18 262.04 0.0659 17.26

2042-2043 62.02 19.50 19.23 81.25 310.12 0.00 81.25 -81.25 310.12 267.60 0.0588 15.74

Total: 6,158.98 500.00 1,191.09 6,158.98

Net Present Value (NPV) 1138.5 Economic Internal Rate of Return (EIRR) 49.4%

Appendix 18 83

Table A9.3: Economic Analysis for 9 Project Implementation Units- PIUs (9 Sub projects)

Name of PIUs

NPV EIRR

Base Case

O&M Cost +10%

Revenue - 10%

Base Case O&M Cost

+10% Revenue

- 10% Savar Pourashava 48.52 39.37 32.17 18.76% 17.53% 16.61% Kanchan Pourashava 149.86 112.24 101.82 37.45% 31.30% 29.22% Tarabo Pourashava 30.12 22.89 14.7 14.94% 14.28% 13.5%

Sonargaon Pourashava

78.36 58.71 49.83 22.34% 19.75% 18.58%

Kaliakoir Pourashava 11.25 6.75 (1.40) 13.08% 12.62% 11.87% Nowapara Pourashava 127.40 91.22 83.92 31.27% 24.01% 23.51% Jessore Pourashava 289.12 269.30 201.74 15.05% 14.84% 14.21% Mongla Port Pourashava

150.27 88.99 74.18 17.89% 15.55% 15.05%

Zikorgacha Pourashava

88.06 85.50 53.09 13.79% 13.74% 13.12%

84 Appendix 18

Table A9.4: Overall Economic Analysis of the Project

Fin

an

cia

l Y

ear

In

itia

l C

ash

F

low

In

cre

men

tal

Reven

ue

In

cre

men

tal

O&

M C

os

t

Fin

an

cia

l C

os

t

Dep

recia

tio

n

Exp

en

se

Op

era

tin

g C

os

t

Eco

no

mic

Ben

efi

t

Base Case

Cap

ital C

os

t

In

cre

men

tal

Reven

ue

In

cre

men

tal

Op

era

tin

g

Co

st

In

cre

men

tal

Net

Inc

om

e

Eco

no

mic

Ben

efi

t

Net

Eco

no

mic

Cash

Flo

w

Dis

co

un

t

Fa

cto

r (1

2%

)

Dis

co

un

ted

Eco

no

mic

Cash

Flo

w

2011-2012 1,402.50 89.20 61.52 47.78 58.20 167.50 17.84 1,402.50 89.20 167.50 -78.30 17.84 -1,356.98 1.00 -1,356.98

2012-2013 0.00 138.54 98.09 47.63 45.96 191.68 27.71 0.00 138.54 191.68 -53.14 27.71 68.16 0.89 60.86

2013-2014 0.00 143.34 111.75 47.48 45.96 205.19 28.67 0.00 143.34 205.19 -61.85 28.67 60.26 0.80 48.04

2014-2015 0.00 130.21 97.02 47.33 45.96 190.31 26.04 0.00 130.21 190.31 -60.09 26.04 59.24 0.71 42.17

2015-2016 0.00 149.35 126.46 47.18 45.96 219.60 29.87 0.00 149.35 219.60 -70.26 29.87 52.75 0.64 33.53

2016-2017 0.00 196.64 130.29 47.03 45.96 223.28 39.33 0.00 196.64 223.28 -26.64 39.33 105.68 0.57 59.96

2017-2018 713.00 323.61 211.43 66.38 73.39 351.19 64.72 713.00 323.61 351.19 -27.58 64.72 -536.10 0.51 -271.60

2018-2019 290.00 398.51 355.60 68.18 75.39 499.16 79.70 290.00 398.51 499.16 -100.65 79.70 -167.39 0.45 -75.72

2019-2020 0.00 479.33 379.95 66.08 84.62 530.64 95.87 0.00 479.33 530.64 -51.31 95.87 195.25 0.40 78.86

2020-2021 0.00 673.63 399.45 65.93 84.62 549.99 134.73 0.00 673.63 549.99 123.64 134.73 408.91 0.36 147.46

2021-2022 0.00 744.30 417.62 65.78 84.62 568.01 148.86 0.00 744.30 568.01 176.29 148.86 475.55 0.32 153.11

2022-2023 0.00 793.69 436.61 65.63 84.62 586.85 158.74 0.00 793.69 586.85 206.84 158.74 515.82 0.29 148.29

2023-2024 0.00 846.77 457.47 65.48 84.62 607.56 169.35 0.00 846.77 607.56 239.21 169.35 558.66 0.26 143.39

2024-2025 0.00 903.85 480.23 65.33 84.62 630.17 180.77 0.00 903.85 630.17 273.68 180.77 604.39 0.23 138.51

2025-2026 0.00 985.39 484.59 65.18 84.62 634.38 197.08 0.00 985.39 634.38 351.01 197.08 697.88 0.20 142.80

2026-2027 0.00 1,074.66 510.04 65.03 84.62 659.68 214.93 0.00 1,074.66 659.68 414.97 214.93 779.55 0.18 142.42

2027-2028 0.00 1,172.39 537.08 64.88 84.62 686.57 234.48 0.00 1,172.39 686.57 485.82 234.48 869.79 0.16 141.88

2028-2029 0.00 1,279.42 562.92 64.73 84.62 712.26 255.88 0.00 1,279.42 712.26 567.16 255.88 972.39 0.15 141.62

2029-2030 0.00 1,396.65 590.09 64.58 84.62 739.29 279.33 0.00 1,396.65 739.29 657.36 279.33 1,085.88 0.13 141.21

2030-2031 0.00 1,566.29 621.43 64.43 84.62 770.48 313.26 0.00 1,566.29 770.48 795.81 313.26 1,258.11 0.12 146.07

2031-2032 0.00 1,757.48 653.14 64.27 84.62 802.03 351.50 0.00 1,757.48 802.03 955.45 351.50 1,455.84 0.10 150.92

2032-2033 0.00 1,973.26 686.74 64.12 84.62 835.49 394.65 0.00 1,973.26 835.49 1,137.77 394.65 1,681.17 0.09 155.61

2033-2034 0.00 2,216.92 722.40 63.97 84.62 871.00 443.38 0.00 2,216.92 871.00 1,345.92 443.38 1,937.90 0.08 160.15

2034-2035 0.00 2,492.19 760.28 63.82 84.62 908.72 498.44 0.00 2,492.19 908.72 1,583.47 498.44 2,230.36 0.07 164.57

2035-2036 0.00 2,803.36 800.55 63.67 84.62 948.84 560.67 0.00 2,803.36 948.84 1,854.52 560.67 2,563.48 0.07 168.89

Total: 4,945.79 2,405.50 24,728.97 14,089.87 4,945.79

Net Present Value (NPV) 1006.02 Economic Internal Rate of Return (EIRR) 15.96%

Appendix 18 85

C. Financial Evaluation

I. At Appraisal

21. Financial analysis during appraisal was undertaken in accordance with the guidelines of the Asian Development Bank (ADB), including ADB’s Financial Management and Analysis of Projects1 and Guidelines on the Financial Governance and Management of Investment Projects Financed by ADB (2002). For revenue-generating subprojects, financial internal rates of return (FIRRs) were computed by estimating the incremental costs and the revenues over the project’s life. Financial viability evaluation of the project was considered for the water and sanitation subproject at GCC, and energy efficiency program at Tongi Pourashava. The weighted average cost of capital (WACC) was considered at 0.9%.

22. The base financial internal rate of return (FIRR) was assessed to be (i) 5.42% for water supply and sanitation at GCC, and (ii) 7.92% for energy efficiency program at Tongi Pourashava with the respective net present values of (i) BDT249.83 million, and (ii) BDT83.00 million, respectively. 23. The analysis at appraisal concluded that O&M costs for water supply and sanitation, and energy efficiency program would be fully covered. FIRRs were above the estimated WACC, demonstrating financial viability of the subproject. The results are robust against downside risks, including cost increases and reducing revenue. The sensitivity analysis indicates that the result is most sensitive to a reduction in revenues.

II. At Completion

The financial analysis at project completion followed the same approach and methodology that were used at appraisal. The overall performance of water supply and sanitation subproject of GCC under the Project were considered to assess its financial capacity of GCC to manage such a subproject. The audited annual financial statements of the Project were prepared, and implementation of double-entry accounting system was used for undertaking the analysis. The energy efficiency subproject at Tongi Pourashava could not be assessed as Tongi Pourashava was amalgamated with GCC and no separate data for Tongi Pourashava was available.

III. Analysis and Re-evaluation Findings

24. The water supply and sanitation subproject interventions have been necessary to provide basic services to the citizens and to protect the environment by reducing (i) ground water depletion, (ii) discharge of untreated wastewater to water bodies, (iii) introduction of increased property (unified indirect taxes) at the national level, and (iv) increased water tariff. 25. Incremental benefits were calculated based on the Project’s actual revenue (collected from the subproject) and assessment, projected revenues data (forecasting after FY 2018-2019). Incremental costs are calculated in consideration of actual and projected capital cost, O&M cost and financial cost based on the GCC’s financial capacity and operational cost structure. The summary of the financial analysis is shown in Table A9.4. The base case financial NPV was recalculated to BDT205.30 million and FIRR at 11.94 million against appraisal estimate of NPV at BDT249.83 million and FIRR at 5.42%. 26. For sustainability of the non-revenue generating sub projects, the O&M cost are borne by the government. The budgetary allocation for the PIUs depend on the size and requisition placed

86 Appendix 18

by the Pourashavas. In addition, the Pouroshovas partially utilizes the collected property and holding tax that they earn. It is observed that the Government budgetary allocation and collection of property tax are in increasing trend. When the annual O&M cost is not sufficient to cover all the infrastructure of the PIUs, they select the most needed one on for maintenance on priority basis. 27. Overall, considering positive base-case NPV and greater FIRR than WACC in the Table A9.4, financial analysis shows that Water Supply and Sanitation in Gazipur is financially feasible. The WACC of the Project is 3.9% in consideration of 8.0% and 1.4% for grant and loan, respectively (Table A9.6). The WACC is used for the Project’s future cash flows in financial analysis

Table A9.5: Summary of Financial Analysis for PPTA Subprojects

PIUs

NPV (BDT million) IRR (%)

Base Case O&M Cost +10%

Revenue - 10%

Base Case O&M Cost +10%

Revenue - 10%

Water Supply and Sanitation in Gazipur

205.30 191.85 90.23 11.94% 11.39% 8.97%

Table A9.6: Weighted Average Cost of Capital of the Project

Sources Amount (US$ million) Weight Cost Weighted Cost

Grant Capital 63.20 37.92% 8.00% 3.034%

Loan Capital 103.48 62.08% 1.40% 0.86 %

Total 166.68 100.00% 3.90%

Appendix 18 87

Table A9.5.1: Financial Analysis for Water Supply and Sanitation Subproject at Gazipur City Corporation

Fin

an

cia

l Y

ear

In

itia

l C

ash

Flo

w

In

cre

men

tal

Reven

ue

In

cre

men

tal

O&

M C

os

t

Fin

an

cia

l C

os

t

Dep

recia

tio

n

Exp

en

se

Op

era

tin

g C

os

t

Base Case

Cap

ital C

os

t

In

cre

men

tal

Reven

ue

In

cre

men

tal

Op

era

tin

g

Co

st

In

cre

men

tal

Net

Inc

om

e

Net

Fin

an

ical

Cash

Flo

w

Dis

co

un

t

Fa

cto

r

(6.7

9%

)

Dis

co

un

ted

Fin

an

cia

l

Cash

Flo

w

2011-2017

2017-2018 213.00 108.01 100.00 12.78 8.19 120.97 213.00 108.01 120.97 -12.97 -217.77 0.6314 (137.50)

2018-2019 107.90 100.29 12.78 8.19 121.26 0.00 107.90 121.26 -13.37 -5.17 0.5912 (3.06)

2019-2020 113.20 103.80 12.78 8.19 124.78 0.00 113.20 124.78 -11.58 -3.39 0.5536 (1.88)

2020-2021 118.76 107.47 12.78 8.19 128.45 0.00 118.76 128.45 -9.69 -1.49 0.5184 (0.77)

2021-2022 124.60 111.29 12.78 8.19 132.26 0.00 124.60 132.26 -7.66 0.53 0.4855 0.26

2022-2023 130.73 115.26 12.78 8.19 136.23 0.00 130.73 136.23 -5.50 2.69 0.4546 1.22

2023-2024 137.16 119.39 12.78 8.19 140.36 0.00 137.16 140.36 -3.20 4.99 0.4257 2.12

2024-2025 143.91 123.68 12.78 8.19 144.65 0.00 143.91 144.65 -0.74 7.45 0.3986 2.97

2025-2026 150.99 128.14 12.78 8.19 149.11 0.00 150.99 149.11 1.88 10.07 0.3733 3.76

2026-2027 158.42 132.79 12.78 8.19 153.76 0.00 158.42 153.76 4.66 12.86 0.3496 4.49

2027-2028 166.23 137.62 12.78 8.19 158.59 0.00 166.23 158.59 7.63 15.83 0.3273 5.18

2028-2029 174.42 142.65 12.78 8.19 163.62 0.00 174.42 163.62 10.79 18.99 0.3065 5.82

2029-2030 183.01 147.88 12.78 8.19 168.86 0.00 183.01 168.86 14.15 22.35 0.2870 6.41

2030-2031 200.83 154.89 12.78 8.19 175.86 0.00 200.83 175.86 24.96 33.16 0.2688 8.91

2031-2032 220.25 162.23 12.78 8.19 183.20 0.00 220.25 183.20 37.05 45.24 0.2517 11.39

2032-2033 241.60 169.91 12.78 8.19 190.89 0.00 241.60 190.89 50.71 58.90 0.2357 13.88

2033-2034 265.06 177.97 12.78 8.19 198.94 0.00 265.06 198.94 66.12 74.31 0.2207 16.40

2034-2035 290.83 186.40 12.78 8.19 207.37 0.00 290.83 207.37 83.46 91.65 0.2067 18.94

2035-2036 319.16 195.24 12.78 8.19 216.21 0.00 319.16 216.21 102.95 111.15 0.1935 21.51

2036-2037 350.30 204.49 12.78 8.19 225.46 0.00 350.30 225.46 124.83 133.03 0.1812 24.11

2037-2038 384.52 214.19 12.78 8.19 235.16 0.00 384.52 235.16 149.36 157.55 0.1697 26.74

2038-2039 422.13 224.34 12.78 8.19 245.32 0.00 422.13 245.32 176.81 185.01 0.1589 29.40

2039-2040 463.47 234.98 12.78 8.19 255.95 0.00 463.47 255.95 207.52 215.71 0.1488 32.10

2040-2041 508.92 246.13 12.78 8.19 267.10 0.00 508.92 267.10 241.82 250.01 0.1393 34.84

2041-2042 558.87 257.80 12.78 8.19 278.77 0.00 558.87 278.77 280.10 288.29 0.1305 37.62

2042-2043 613.79 270.03 12.78 8.19 291.00 0.00 613.79 291.00 322.79 330.98 0.1222 40.44

Total: 213.00

6,657.04

4,814.15

Net Present Value (NPV) 205.30 Financial Internal Rate of Return (FIRR) 11.94%

88 Appendix 19

ADB FINANCED LIST OF SUBPROJECTS

Sl No Name of Subproject Major Component

Subprojects Identified during Project Design

1 Integrated Traffic Management at Banani, Dhaka

Construction and improvement of roads and drains in Banani for integrated Traffic Management

2 Water Supply, Sanitation and Drainage in Gazipur City Corporation

RCC drains, installation and refurbishment of production wells, site development for pump houses, replacement of old Pipelines, repairing of existing pump houses, house connection.

3 Solid Waste Management in Narayanganj City Corporation

Solid waste management plant including Fertilizer Compost, Waste separating, biogas production, land fill with necessary machinery and equipment.

4 Urban Services in Ashulia urban center, Dhaka Region

Construction and improvement of water supply and sanitation, roads and drains for Ashulia urban center

5 Energy Conservation & Sustainability in Tongi Pourashava

Streetlights, water pumps

6 Khulna Drainage Improvement and Flood Protection

Drainage and dredging, re-excavation of major outlet channels, RCC drains, construction of foot path cum roads

7 Economic Revitalization Urban Renewal in Shakhari Bazar, Dhaka

Not implemented due to protests from local inhabitants

Subprojects Identified during Project Implementation

8 Urban Transport and Drainage Improvement in Tarabo Pourashava

Construction and improvement of RCC drains, urban roads

9 Urban Revitalization of Sonargaon Pourashava

Construction of RCC deck girder bridge, urban roads, drains.

10 Urban Transport and Drainage Improvement in Narsingdi Pourashava

Construction and improvement of roads, drains, footpath

11 Urban Transport and Drainage Improvement in Kanchon Pourashava

Construction and improvement of roads, drains, footpath, landscaping at the bank or Shitalakkha river

12 Urban Transport and Drainage Improvement in Kaliakoir Pourashava

Construction and improvement roads, drains, streetscaping, improvement of bus terminals

13 Urban Transport and Drainage Improvement in Singair Pourashava

Construction and improvement of roads and drainage

14 Drainage Improvement in Nowapara Pourashava

Construction and improvement drainage and footpath

15 Urban Transport and Drainage Improvement in Savar Pourashava

Construction and improvement of drainage and footpath

16 Urban Transport and Drainage Improvement in Manikgonj Pourashava

Construction and improvement of drainage, roads and footpath

17 Urban Transport and Drainage Improvement in Jashore Pourashava

Construction and improvement of drainage, roads and footpath, integrated solid waste management plant

18 Urban Transport and Drainage Improvement in Jhikarghaca Pourashava

Construction and improvement of drainage, roads and footpath

19 Urban Transport and Drainage Improvement in Mongla Port Pourashava

Construction and repair of roads, drains, culverts. Construction of regulators, re-excavation of canals etc.

20 Urban Transport and Drainage Improvement in Gazipur City Corporation

Improvement of roads, drainage, riverbank protection, street scaping etc.

21 Drainage Improvement in Narayangonj City Corporation

Construction and improvement of roads, drains, streetscaping