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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 16809 IMPLEMENTATION COMPLETION REPORT Public Disclosure Authorized BANGLADESH ROAD REHABILITATION AND MAINTENANCEPROJECT (CREDIT 1827-BD) Public Disclosure Authorized June 26, 1997 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 Currency Unit = Bangladesh Taka (Tk.) May 1986 US$ 1.0 = Tk. 30.90 May 1986 SDR 1.0 = US$ 1.306 June 1996 SDR 1.0 = US$ 1.447 August 1996 US$ 1.0 = Tk. 42.01 April 1997 US$ 1.0 = Tk. 43.65 WEIGHTS AND MEASIURES Metric US System 1 meter (m) = 3.2808 feet (ft) 1 square meter (m2) = 10.764 square feet (sq.ft.) 1 cubic meter (m3) = 35.315 cubic feet (cu.ft.) 1 kilometer (kIn) = 0.6214 mile (mi) 1 square kilometer (km2) = 0.3861 square mile (sq.mi) 1 metric ton = 2,204.6 pounds (lbs) FISCAL YEAR July 1 - June 30 ACRONYMS AND ABBREYIATIONS ADB = Asian Development Bank DCA = Development Credit Agreement ERR = Economic Rate of Return GOB = Government of Bangladesh IBRD = International Bank for Reconstruction and Development ICB = International Competitive Bidding ICR = Implementation Completion Report IDA = International Development Association LCB = Local Competitive Bidding MOC Ministry of Communication MVOC = Motor Vehicle Operating Cost NPV = Net Present Value ODA = Overseas Development Administration OPEC-Fund = OPEC Fund for International Development PCWD = Project Civil Works Director RHD = Roads and Highways Department RMP Road Master Plan RMSS = Road Materials and Standards Study SAR = Staff Appraisal Report TOR = Terms of Reference UNDP = United Nations Development Program Vice President Mieko Nishimizu Acting Director Fakhruddin Ahmed Division Chief Marie Robinson Staff Member(s) Mohiuzzaman Quazi/Stein Lundebye FOR OFFICIAL USE ONLY BANGLADESH ROAD REHABILITATION AND MAINTENANCE PROJECT (CREDIT 1827-BD) PREFACE IMPLEMENTATION COMPLETION REPORT TABLE OF CONTENTS EVALUATION SUMMARY ii PART I: PROJECT IMLEMENTATION ASSESSMENT A. Statement/Evaluation of Project Objectives 1 B. Achievement of Project Objectives 3 C. Major Factors Affecting the Project 6 D. Project Sustainability 7 E. Bank Performance 8 F. Borrower Performance 9 G. Assessment of Outcome 9 H. Future Operations 10 I. Key Lessons Learned 11 PART II: STATISTICAL INFORMATION Table 1: Summary of Assessments 14 Table 2: Related Bank Loans/Credits 15 Table 3: Project Time Table 16 Table 4: Loan/Credit Disbursements 16 Table 5: Key Indicators for Project Implementation 17 Table 6: Studies Included in Project 18 Table 7: Project Costs 18 Table 8: Project Financing 19 Table 9: Economic Costs and Benefits 19 Table 10: Status of Legal Covenants 20 Table 11: Compliance with Operational Manual Statements 22 Table 12: Bank Resources: Staff Inputs 22 Table 13: Bank Resources: Missions 23 APPENDIXES A: Borrower Contribution to the ICR B: Economic Re-evaluation C: ICR Mission's Aide-Memoire D: Map: IBRD No. 20236R 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. IMPLEMENTATION COMPLETION REPORT BANGLADESH ROAD REHABILITATIONAND MAINTENANCEPROJECT (CREDIT 1827-BD) PREFACE This is the ImplementationCompletion Report (ICR) for the Road Rehabilitationand MaintenanceProject in Bangladesh,for which Credit 1827-BD in the amount of SDR 78.10 million (US$102million equivalent)was approvedon September2, 1987 and made effectiveon February 25, 1988. The loan was closed on December 31, 1996, comparedwith the original closing date of June 30, 1996. Final disbursementtook place on May 7, 1997, at which time a balance of SDR 7.01 million (US$9.7 million equivalent) was canceled. Co-financing for the project was provided by OPEC-Fund (US$8.0 million), ODA (US$0.5 million) and UNDP (US$5.30 million). The ICR was prepared by MohiuzzamanQuazi, Transport Engineer/Task Manager (SAIBG), and SubhashSeth, ConsultantHighway Engineer (TWUTD), and reviewed by Arun Banerjee, Manager (Energy and Infrastructure Unit - SAIBG), Stein Lundebye, (Senior Transport Engineer - SAlIN), Jaswant Channe (Consultant, SAIIN), Mrs. Marie Robinson, (Chief- SA1IN) and Fakhruddin Ahmed, (Acting Director - SA1). The borrower's comments are includedas appendixto the ICR. Preparation of the ICR began during the Bank's Supervision Mission carried out in October 1996. It is based on material in the project files. The borrower contributed to preparation of the ICR by preparing their own evaluation of the project's execution, and commentingon the draft ICR. ii EVALUATIONSUMMARY Introduction 1. Bangladesh is one of the poorest countries in the world with a per capita income of about US$240. Its economy is affected by major transportation constraints caused by a combinationof geography, nature and climate. Most of the land area is flat, low-lying and criss-crossed by rivers which are major obstacles for on land transport in the country. In addition, Bangladeshis prone to natural disasters including abnormal flooding and cyclones. Transport demand in the country has grown at a much faster rate than GDP since the mid 1970s - more than 8% per annum for passengers and 6% per annum for freight traffic, compared to a GDP growth rate of about 4% per annum during the same period. The Road Rehabilitation and MaintenanceProject (RRMP-I), successfullycompleted on December 31, 1996, emphasizedan integratedprogram for the modernization,rehabilitation and maintenance of roads to support the Government's efforts to restore its road network to a maintainable level. Becauseof the extent of the needs and GOB's limited absorptive capacity at the start of project in 1987, the RRMP focused on the major trunk roads and bridges in the northwestern part of Bangladesh, which is a food surplus area. Project Objectivesand Description 2. The objectives of the project were to: (a) reduce transport costs of passengers and goods, in particular for food products, by restoring the most important major trunk roads in northwestern parts of Bangladesh to maintainable condition; (b) introduce institutional and technical improvementsin the programmingof works, the administrationand maintenance of the road system and in technical standardsand materials;and (c) upgrade the capabilitiesof the local contractingindustry to undertakelarger road works as an alternativeto inefficientand very small size contracts. 3. The projecthad the followingcomponents: (a) the civil works programincluded 305 km of road rehabilitationand 335 km of deferredmaintenance on importantmain and trunk roads and (b) an institutionaldevelopment program which included: (i) preparation of a Road Master Plan (RMP)for identifyingroad projectsand rankingthem in terms of priority;(ii) implementationof a Road MaintenanceAction Plan (RMAP)for improvedroad maintenance;(iii) carryingout a Road Materialsand Standard Study (RMSS)to establishtechnical standards;and (iv) preparationand implementationof an actionplan to strengthenthe domesticconstruction industry. 4. All the objectives were in line with GOB policies and IDA's strategy for sector development,which aimed at lowering overall transport costs and increasingefficiency of the transport sector. The project civil works componentsand institutionaldevelopment program were well linked to the project objectives. The first objectiverightly emphasizedlowering of transport costs on major trunk roads which is essential for the developmentof a competitive economy. The second objective,to introduceinstitutional and technical improvementswas very importantfor Roads and HighwayDepartment (RHD) because its organizationalcapacity to plan and prepare maintenanceprogram was very weak at the start of the project and the Government was embarking on a major effort to upgrade the country's road network. Similarly the third objectiveof upgradingcapabilities of the domesticconstruction industry was absolutelynecessary iii to implementroad works through large contractsas an alternativeto very small contracts, which RHD had previouslyused. InplementationExperience and Results 5. The project was successful in achieving its principal objectives. The objective of lowering transport costs was substantially achieved by completing all the agreed road rehabilitationworks in quantity and quality by their scheduledtarget dates. The objective of strengtheninginstitutional and technicalcapacity was only partiallyachieved due to a lack of full commitment and leadership on the part of RHD. The objective of upgrading domestic constructionindustry was substantiallyachieved. In general, the physical and private sector development objectives were substantially achieved; institutional objectives were partially achieved, and environmental and sector policy oriented objectives were achieved to a considerableextent even thoughthese objectiveswere not applicableas part of the project. The improved roads significantlyreduced the vehicleoperating cost, maintenancecost and passenger travel time, thus providingsubstantial benefit to the users and providersof road transport. 6. The physical work under the project was divided into two tranches. Under Tranche I contracts, 136 km of road rehabilitationwork was completed, although abnormal (100 year return) floods in 1987 and 1988 led to some cost overruns and implementationdelays. Under Tranche
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