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Technical Assistance Consultant's Report Bangladesh: Coastal Towns

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Technical Assistance Consultant's Report Bangladesh: Coastal Towns Technical Assistance Consultant’s Report Project Number: 44212 October 2013 Bangladesh: Coastal Towns Infrastructure Improvement Project (Financed by the Japan Fund for Poverty Reduction) Prepared by: GHK Consulting Limited This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. October 2013 TA-8128 BAN (PPTA): Preparing Coastal Towns Infrastructure Improvement Project FINAL REPORT VOLUME 1: MAIN REPORT In association with: This report consists of seven volumes: Volume 1 Main Report Volume 2 Appendices Volume 3 Annex: Climate Change Assessment and Adaptation Strategy Volume 4 Annex: Infrastructure, Water Resources Volume 5 Annex: Finance and Economics Volume 6 Annex: Environmental Safeguards Volume 7 Annex: Resettlement Safeguards TA-8128 BAN: Preparing Coastal Towns Infrastructure Improvement Project – FR Vol. 1: Main Report KNOWLEDGE SUMMARY The project: The proposed Coastal Towns Improvement Project is located in the coastal area of Bangladesh, and will strengthen climate resilience and disaster preparedness in eight vulnerable coastal towns. The project takes a holistic and integrated approach to urban development and will (i) provide climate-resilient municipal infrastructure, and (ii) strengthen institutional capacity, local governance, and public awareness, for improved urban planning and service delivery considering climate change and disaster risks. Rationale: The low-lying deltaic coastal area is very vulnerable to severe weather events such as tropical cyclones from the Bay of Bengal and storm/tidal surges, resulting in extensive flooding, backup of sewage, wind damage and, tragically, loss of human lives. Existing urban infrastructure such as roads, bridges, cyclone shelters boat docking stations, water supply systems and sanitation facilities is generally inadequate, and suffers a great deal of damage during such events. The backup of sewage and water logging due to inadequate drainage results in a deterioration of public health through the increased prevalence of waterborne diseases. Governance, and institutional, urban planning and O&M capacities of local governments in coastal towns are weak. The poor are disproportionately affected by cyclones and have the lowest capacity to cope with losses. The project is prioritized in the government’s Strategic Program for Climate Resilience (2010) as a pilot project under the Pilot Program for Climate Resilience. The government’s Sixth Five-Year Plan, FY2011–FY2015, targets assistance to vulnerable coastal populations. The project is consistent with ADB’s Bangladesh Country Partnership Strategy which targets assistance to vulnerable coastal areas in adapting to the risks of climate change, and with its Urban Operational Plan. Projected climate changes to 2040: Modeling studies indicate that cyclones will intensify in the future owing to increased sea surface temperatures in the Bay of Bengal. Sea level rise will exacerbate the vulnerabilities of coastal towns, and increase saline intrusion of water supply sources. Temperature and rainfall are projected to increase significantly. Project scope: (i) Improved climate-resilient municipal infrastructure (under a two-stage performance-based investment mechanism), (ii) Strengthened institutional capacity, governance, and awareness, and (iii) Project management and administration support. Project cost: The total investment cost for the project with climate resilience measures is $117.1 million, including taxes, duties, interest charges on the ADB loan, and physical and price contingencies. About 62% of the base cost is allocated for infrastructure development, 8.5% for consultant support, and 3.2% for incremental administration. Financing plan: ADB loan of $52 million, PPCR/SCF funding of $40.4 million ($30.0 million loan and $10.4 million grant), Bill and Melinda Gates Foundation grant of $1.6 million (for sanitation), and government counterpart funds of $23.1 million Project implementation: LGED will be the executing agency, and DPHE a co-executing agency. The participating coastal towns will be the implementing agencies. Financial and economic analyses: The proposed revenue-generating subprojects are all financially viable. Base case EIRRs for all proposed subprojects, with climate resilience measures, exceed the assumed 12% discount rate. Safeguards: Environmental and involuntary resettlement category B, and indigenous peoples category C. Project risk categorization: Low. TA-8128 BAN: Preparing Coastal Towns Infrastructure Improvement Project – FR Vol. 1: Main Report i PREPARING COASTAL TOWNS INFRASTRUCTURE IMPROVEMENT PROJECT PPTA - TA-8128 BAN FINAL REPORT VOLUME 1: MAIN REPORT List of Contents Page Glossary of Bangladeshi Terms xi Acronyms xi Location Map xvi EXECUTIVE SUMMARY I 1 INTRODUCTION ........................................................................................................ 1 1.1 Project Concept ................................................................................................. 1 1.2 Objectives of the Project Preparatory Technical Assistance ............................... 1 1.3 PPTA Organization and Management ................................................................ 2 1.4 PPTA Deliverables and Work Plan ..................................................................... 4 1.4.1 Deliverables and Workshops ...................................................................... 4 1.4.2 Work Plan ................................................................................................... 4 1.5 Selection of Pourashavas for Study under PPTA ............................................... 8 1.6 Capacity Building Mobile Support Teams ........................................................... 9 1.7 ADB Fact-Finding Mission .................................................................................. 9 1.8 Consultant Personnel ....................................................................................... 10 1.8.1 Consultant Firms’ Core Team ................................................................... 10 1.8.2 ADB-Recruited Consultants ...................................................................... 14 1.8.3 Gates Foundation Consultants.................................................................. 14 1.9 Purpose and Structure of the Final Report ....................................................... 14 2 OVERALL PROJECT PLANNING AND COMPONENTS ........................................ 16 2.1 Rationale for Project......................................................................................... 16 2.2 Project Planning ............................................................................................... 18 2.2.1 CDTA-7890............................................................................................... 18 2.2.2 Performance-Based Allocation Mechanism............................................... 20 2.2.3 Geographic Coverage ............................................................................... 21 2.3 Project Impact, Outcome and Outputs.............................................................. 22 2.3.1 Impact and Outcome ................................................................................ 22 2.3.2 Outputs ..................................................................................................... 23 2.4 Project Design Advance ................................................................................... 24 2.5 Lessons Learned from Other Projects .............................................................. 25 3 SOCIOECONOMIC AND WILLINGNESS-TO-PAY SURVEY .................................. 29 3.1 Introduction ...................................................................................................... 29 3.2 Summary of Key Survey Results ...................................................................... 29 TA-8128 BAN: Preparing Coastal Towns Infrastructure Improvement Project – FR Vol. 1: Main Report ii 4 EXISTING INFRASTRUCTURE SITUATION IN STUDY POURASHAVAS ............. 33 4.1 Responsibilities for Infrastructure ..................................................................... 33 4.2 Existing Roads, Bridges and Culverts Situation ................................................ 34 4.3 Existing Cyclone Shelter Situation .................................................................... 36 4.4 Existing Boat Landing Station Situation ............................................................ 37 4.5 Existing Solid Waste Management Situation .................................................... 39 4.6 Existing Slum Situation .................................................................................... 41 4.7 Existing Drainage and Flood Control Situation ................................................. 42 4.7.1 Existing Situation in PPTA Study Pourashavas ......................................... 42 4.7.2 Conclusions from Surveys and Analyses .................................................. 44 4.8 Existing Water Supply and Sanitation Situation ................................................ 49 5 CLIMATE CHANGE ADAPTATION AND RESILIENCE .......................................... 57 5.1 Climate Change Assessment and Adaptation Strategy .................................... 57 5.1.1 What is Mainstreaming Climate Change? ................................................. 57 5.1.2 Adaptation Strategy for CTIIP ..................................................................
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