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Rural Transport Improvement Project Document of The World Bank FOR OFFICIAL USE ONLY Report No: 65543-BD Public Disclosure Authorized PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 195 MILLION (US$302 MILLION EQUIVALENT) TO THE PEOPLE’S REPUBLIC OF BANGLADESH FOR A SECOND RURAL TRANSPORT IMPROVEMENT PROJECT Public Disclosure Authorized August 23, 2012 Sustainable Development Unit Bangladesh Country Management Unit South Asia Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective {10 March 2012}) Currency Unit = Taka 80 Taka = US$ 1 US$1.53 = SDR 1 FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS AAEC Awareness, Advocacy and Educational LGRD Local Government, Rural Development Campaign ACC Anti-Corruption Commission MIS Management Information System ARI Accident Research Institute MLGRD&C Ministry of Local Government, Rural Development and Cooperatives BUET Bangladesh University of Engineering ORA Operational Risk Assessment and Technology CRRSU Central Rural Road Safety Unit PBMC Performance-Based Maintenance Contract CSO Civil Society Organization PIU Project Implementation Unit DANIDA Danish International Development PPC Project Preparation Consultant Agency ECA Environment Conservation Act PRSP Poverty Reduction Strategy Paper ECR Environmental Conservation Rules PSC Project Steering Committee EIA Environmental Impact Assessment RMMS Road Maintenance Management Systems EIRR Economic Internal Rate of Return RP Resettlement Plan EMF Environmental Management RRMAIDP Rural Roads and Market Access Framework Infrastructure Development Project FGD Focus Group Discussions RRS Rural Road Safety GCM Growth Center Markets RTIP-I Rural Transport Improvement Project GoB Government of Bangladesh RTS Rural Transport Safety GRC Grievance Redress Committee SCC Suggestions and Complaints Committee ICT Information and Communication SCM Suggestions and Complaints Mechanism Technologies IDA International Development Association SIA Social Impact Assessment IDSS Integrated Decision Support System SIL Specific Investment Loan IPP Indigenous Peoples Plan SIMF Social Impact Management Framework ISP Implementation Support Plan TSA Transport Safety Assessment IWT Inland Water Transport UFMS Unified Financial Management System LCS Labor Contracting Societies UR Union Roads LGED Local Government Engineering UZR Upazila Roads Department LGI Local Government Institutions WMS Women Market Sections Regional Vice President: Isabel M. Guerrero Country Director: Ellen A. Goldstein Sector Director: John Henry Stein Acting Sector Manager: Binyam Reja Task Team Leader: Manzoor Rehman/ Reefat Sultana ii Bangladesh: Second Rural Transport Improvement Project Table of Contents Page I. STRATEGIC CONTEXT .................................................................................................... 1 A. Country Context.................................................................................................................... 1 B. Sectoral and Institutional Context ...................................................................................... 1 C. Higher Level Objectives to which the Project Contributes .............................................. 5 II. PROJECT DEVELOPMENT OBJECTIVE ...................................................................... 6 A. Project Development Objective (PDO) ............................................................................... 6 B. Project Beneficiaries ............................................................................................................. 6 C. PDO Level Results Indicators .............................................................................................. 6 III. PROJECT DESCRIPTION ............................................................................................. 6 A. Project Components.............................................................................................................. 6 B. Project Financing .................................................................................................................. 8 C. Program Objective and Phases (If Applicable): ................................................................ 9 D. Lessons Learned Under RTIP-I .......................................................................................... 9 I V. IMPLEMENTATION ..................................................................................................... 10 A. Institutional and Implementation Arrangements ............................................................ 10 B. Results Monitoring and Evaluation .................................................................................. 12 C. Sustainability ....................................................................................................................... 12 V. KEY RISKS AND MITIGATION MEASURES .............................................................. 13 A. Table 2: Risk Ratings Summary Table ............................................................................. 13 B. Overall Risk Rating Explanation ...................................................................................... 13 VI. APPRAISAL SUMMARY .............................................................................................. 14 A. Economic Analyses.............................................................................................................. 14 B. Technical .............................................................................................................................. 15 C. Financial Management ....................................................................................................... 17 D. Procurement ........................................................................................................................ 17 E. Social Safeguards ................................................................................................................ 18 F. Environment (including Safeguards) ................................................................................ 19 G. Other Safeguards Policies Triggered (not required) ....................................................... 20 Annex 1: Results and Monitoring Framework ........................................................................ 21 Annex 2: Detailed Project Description ...................................................................................... 24 Annex 3: Implementation and Institutional Arrangements .................................................... 32 Annex 4: Operational Risk Assessment Framework (ORAF) ................................................ 50 iii Annex 5: Implementation Support Plan ................................................................................... 56 Annex 6: Governance and Accountability Action Plan ........................................................... 62 Annex 7: The Selection Methodology for the Investments Component ................................. 70 Annex 8: Economic Analysis ...................................................................................................... 87 Annex 9: Design Summary of the Project Components ........................................................ 101 Annex 10: Performance-Based Maintenance Contracts (PBMC) ....................................... 105 Annex 11: Rural Transport Improvement Project – I: Lessons Learned ............................ 116 Annex 12: Rural Water Transport Improvement Sub-Component Risk Mitigation Matrix ..................................................................................................................................................... 120 Annex 13: Project Implementation Schedule ......................................................................... 121 Map IBRD39160........................................................................................................................ 123 iv . PAD DATA SHEET Bangladesh Second Rural Transport Improvement Project (P123828) PROJECT APPRAISAL DOCUMENT . SOUTH ASIA SASDT . Basic Information Date: 23-Aug-2012 Sectors: Rural and Inter-Urban Roads and Highways (97%), Agro-industry, marketing, and trade (2%), Ports, waterways and shipping (1%) Country Director: Ellen A. Goldstein Themes: Rural services and infrastructure (88%), Rural policies and institutions (10%), Rural markets (2%) Sector Manager/Director: Binyam Reja/John Henry Stein Project ID: P123828 EA Category: A - Full Assessment Lending Instrument: Specific Investment Loan Team Leader(s): Manzoor Ur Rehman Joint IFC: No . Borrower: Economic Relations Division, Ministry of Finance Responsible Agency: Local Government Engineering Department Contact: Md. Mostafa Kamal Title: Project Director Telephone No.: 9122-435 Email: [email protected] . Project Implementation Period: Start Date: 20-Dec-2012 End Date: 30- Apr- 2018 Expected Effectiveness Date: 20-Dec-2012 Expected Closing Date: 30-Apr-2018 . Project Financing Data(US$M) [ ] Loan [ ] Grant [ ] Other [ X ] Credit [ ] Guarantee For Loans/Credits/Others Total Project Cost (US$M): 417.00 Total Bank Financing (US$M): 302.00 . Financing Source Amount(US$M) BORROWER/RECIPIENT 115.00 International Development Association (IDA) 302.00 Total 417.00 . Expected Disbursements (in USD Million) Fiscal Year 2012 2013 2014
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