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International Development Association Project Appraisal Document on a Proposed Credit from the Ida Scale-Up Facility

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International Development Association Project Appraisal Document on a Proposed Credit from the Ida Scale-Up Facility Public Disclosure Authorized FOR OFFICIAL USE ONLY Report No: PAD3635 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT FROM THE IDA SCALE-UP FACILITY IN THE AMOUNT OF EUR 459.8 MILLION (US$ 500 MILLION EQUIVALENT) Public Disclosure Authorized TO THE PEOPLE’S REPUBLIC OF BANGLADESH FOR A WESTERN ECONOMIC CORRIDOR AND REGIONAL ENHANCEMENT (WECARE) PROGRAM PHASE I PROJECT USING THE MULTIPHASE PROGRAMMATIC APPROACH (MPA) Public Disclosure Authorized WITH AN OVERALL FINANCING ENVELOPE OF US$1400 MILLION May 27, 2020 Transport Global Practice South Asia Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Exchange Rate Effective April 30, 2020 Currency Unit = 1 EUR = US$1.0876 1 USD = = 84.95 BDT FISCAL YEAR July 1 – June 30 Regional Vice President: Hartwig Schafer Country Director: Mercy Miyang Tembon Regional Director: Guangzhe Chen Practice Manager: Shomik Raj Mehndiratta Task Team Leader(s): Rajesh Rohatgi, Erik Nora, Muneeza Mehmood Alam ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank AIIB Asian Infrastructure Investment Bank BRRL Bangladesh Road Research Laboratory BEZA Bangladesh Economic Zone Authority BLPA Bangladesh Land Port Authority BTRC Bangladesh Telecommunication Regulatory Commission BBIN Bangladesh, Bhutan, India and Nepal CAG Comptroller and Auditor General of Bangladesh CCGP Cabinet Committee of Government purchase CE Citizen’s Engagement CPF Country Partnership Framework CMU Country Management Unit CoC Code of Conduct CIA Cumulative Impact Assessment CARE Climate Adaptation and Resilience for South Asia DFAT Department of Foreign Affairs and Trade (Australia) DPR Detailed Project Report DSS Decision Support Systems EIA Environmental Impact Assessment EROM Emergency Response Operations Manual ESA Environmental and Social Assessment ESCP Environmental and Social Commitment Plan ESF Environmental and Social Framework ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FACP Fiduciary Advisory Consultant Panel FAPAD Foreign Aided Project Audit Directorate GBV Gender-Based Violence IRAP International Road Assessment Program LOC India Line of Credit IMED Implementation Monitoring and Evaluation Division ITS Intelligent Transportation Systems ITU International Telecommunication Union GoB Government of Bangladesh LGED Local Government Engineering Department LGD Local Government Division LDCs Least Developed Countries M&E Monitoring & Evaluation MFD Maximizing Finance for Development MoLGRDC Ministry of Local Government, Rural Development and Cooperatives MoRTB Ministry of Road Transport and Bridges MPA Multiphase Programmatic Approach PPP Public–private partnership OFC Optical Fiber Cable O&M Operations & Maintenance OPRC Operations and Performance Maintenance Contract PC Planning Commission RMG Ready-Made Garment RHD Roads and Highways Department RTHD Ministry of Road Transport and Bridge PCC Program Coordination Committee PrDO Program Development Objective PSC Project Steering Committee RAI Rural Access Index ROW Right of Way SAARC South Asian Association for Regional Cooperation SASEC South Asia Sub-regional Economic Cooperation SESA Strategic Environmental and Social Assessment SEZ Special Economic Zones SUF Scale-Up Facility 7FYP Seventh Five Year Plan SCDP Safe Corridor Demonstration Project RTSICP Road Transport Sector Integration and Coordination Platform ToC Theory of Change Upazilas An administrative region in Bangladesh as sub-units of districts WEB Wider Economic Benefit WBG World Bank Group TABLE OF CONTENTS DATASHEET ................................................................................. Error! Bookmark not defined. I. STRATEGIC CONTEXT ...................................................................................................... 1 A. Country Context................................................................................................................................ 1 B. Sectoral and Institutional Context .................................................................................................... 2 C. Relevance to Higher Level Objectives ............................................................................................... 6 D. Multiphase Programmatic Approach ............................................................................................... 8 II. PROJECT DESCRIPTION .................................................................................................. 17 A. Project Development Objective ..................................................................................................... 17 B. Project (Phase1) Components ........................................................................................................ 18 D. Project Beneficiaries ....................................................................................................................... 19 E. Rationale for Bank Involvement and Role of Partners ................................................................... 20 F. Lessons Learned .............................................................................................................................. 20 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 21 A. Institutional and Implementation Arrangements .......................................................................... 21 B. Results Monitoring and Evaluation Arrangements......................................................................... 23 C. Sustainability ................................................................................................................................... 23 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 23 A. Technical, Economic and Financial Analysis ................................................................................... 23 B. Fiduciary .......................................................................................................................................... 28 C. Legal Operational Policies ............................................................................................................... 29 D. Environmental and Social ............................................................................................................... 29 V. GRIEVANCE REDRESS SERVICES ..................................................................................... 32 VI. KEY RISKS ..................................................................................................................... 32 VII. RESULTS FRAMEWORK AND MONITORING ................................................................... 35 ANNEX I: Implementation Arrangements and Support Plan ........................................................ 51 ANNEX II: Economic and Financial Analysis ................................................................................ 57 ANNEX III: Resiliency Assessment of the Program Corridor ......................................................... 63 ANNEX IV: Project Cost and Financing ....................................................................................... 66 ANNEX V: WeCARE Program MAP ............................................................................................. 67 . DATASHEET BASIC INFORMATION BASIC INFO TABLE Country(ies) Project Name Bangladesh Western Economic Corridor and Regional Enhancement Program Project ID Financing Instrument Environmental and Social Risk Classification Investment Project P169880 High Financing Financing & Implementation Modalities [✓] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Project Approval Expected Project Closing Expected Program Closing Date Date Date 23-Jun-2020 31-Dec-2026 31-Dec-2030 Bank/IFC Collaboration Joint Level Yes Complementary or Interdependent project requiring active coordination MPA Program Development Objective To provide efficient, safe, and resilient connectivity along a regional transport corridor in western Bangladesh; and promote local economic development in the hinterland of the corridor. MPA Financing Data (US$, Millions) Financing MPA Program Financing Envelope 1,958.20 I The World Bank Western Economic Corridor and Regional Enhancement Program (P169880) Proposed Project Development Objective(s) To provide efficient, safe, and resilient connectivity along a Section of a regional transport corridor in western Bangladesh and reduce post-harvest losses in the hinterland of the Section Components Component Name Cost (US$, millions) Upgrading National Highway Corridor and Enhancing Digital Connectivity 314.20 Upgrading Secondary and Tertiary Roads and Complementary Logistics Infrastructure 171.00 and Services Project Implementation Support and Sustainability 5.60 COVID-19 Relief and Recovery 9.20 Contingent Emergency Response Component
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