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ASIAN DEVELOPMENT BANK PCR: BAN 22321 PROJECT COMPLETION REPORT ON THE ROAD OVERLAY AND IMPROVEMENT PROJECT (Loan 1287-BAN[SF]) IN BANGLADESH July 2002 CURRENCY EQUIVALENTS (as of 31 October 1993) Currency Unit – taka (Tk) At Appraisal At Project Completion (June 1993) (August 2000) Tk1.00 = $0.02509 $0.0185 $1.00 = Tk39.85 Tk54.00 Calculations in the report have been made using a rate of $1.00=Tk39.80, the rate prevailing during Project appraisal. ABBREVIATIONS AADT - annual average daily traffic ADB - Asian Development Bank BRTA - Bangladesh Road Transport Authority CPI - consumer price index EA - Executing Agency EIRR - economic internal rate of return GDP - gross domestic product HDM - Highway Design and Maintenance Standards Model IDC - Institutional Development Component IRI - International Roughness Index MOC - Ministry of Communications NPV - net present value NR - national road OECF - Overseas Economic Cooperation Fund (Japan) PAM - Project Administration Memorandum PCR - Project Completion Report PD - Project Director RHD - Roads and Highways Department RMP - road master plan RRMP - road rehabilitation and maintenance program RRTD - Roads and Road Transport Division SDR - special drawing rights TA - technical assistance UNDP - United Nations Development Programme VIC - vehicle inspection center VOC - vehicle operating cost VPD - vehicles per day NOTES (i) The fiscal year (FY) of the Government ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends. (ii) In this report, “$” refers to US dollars. CONTENTS Page BASIC DATA ii MAP(S) viii I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Project Outputs 3 C. Project Costs 4 D. Disbursements 5 E. Project Schedule 5 F. Implementation Arrangements 6 G. Conditions and Covenants 6 H. Environmental and Social Impacts 7 I. Consultants Recruitment and Procurement 7 J. Performance of Consultants, Contractors, and Suppliers 8 K. Performance of the Borrower and the Executing Agency 9 L. Performance of ADB 10 III. EVALUATION OF PERFORAMNCE 10 A. Relevance 10 B. Efficacy in Achievement of Purpose 10 C. Efficiency in Achievements of Outputs and Purpose 11 D. Preliminary Assessment of Sustainability 11 E. Environmental, Socio-cultural and Other Impacts 12 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 12 A. Overall Assessment 12 B. Lessons Learned 13 C. Recommendations 14 APPENDIXES 1. Scope of Project at Appraisal and Completion 16 2. Project Implementation Schedule 18 3. Compliance with Loan Covenants 20 4. Traffic Volumes and Road Surface Conditions on Selected Project Roads 23 5. Economic Reevaluation of the Project 25 6. Assessment of Overall Project Performance 29 ii BASIC DATA A. Loan Identification 1. Country Bangladesh 2. Loan Number 1287-BAN(SF) 3. Project Title Road Overlay and Improvement Project 4. Borrower Government of Bangladesh 5. Executing Agency Roads and Highways Department Bangladesh Road Transport Authority 6. Amount of Loan SDR47,903,000 ($68,000,000 equivalent) 7. PCR Number PCR:BAN 701 B. Loan Data 1. Appraisal – Date Started 9 June 1993 – Date Completed 24 June 1993 2. Loan Negotiations – Date Started 27 October 1993 – Date Completed 29 October 1993 3. Date of Board Approval 9 December 1993 4. Date of Loan Agreement 17 December 1993 5. Date of Loan Effectiveness – In Loan Agreement 10 March 1994 – Actual 16 March 1994 – Number of Extensions 0 6. Closing Date – In Loan Agreement 30 September 1998 – Actual 29 August 2000 – Number of Extensions 3 7. Terms of Loan – Interest Rate 1% per annum – Maturity 40 years – Grace Period 10 years iii 8. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 13 February 1995 28 August 2000 66 months Effective Date Original Closing Date Time Interval 16 March 1994 30 September 1998 54 months b. Amount in $ Category Latest Net Original Revised Amount Amount Amount Undisbursed Allocation Allocation Cancelled Available Disbursed Balance Civil Works 20,749,348 23,346,260 0 23,346,260 23,346,260 0 (Overlay and Sealcoat) Civil Works 25,780,181 33,951,035 0 33,951,035 33,951,035 0 (Road Improvement) Civil Works 1,649,500 1,518,448 0 1,518,448 1,518,448 0 (Vehicle Inspection Center) Equipment 1,500,449 65,950 0 65,950 65,950 0 (Overlay and Seal Coat) Equipment 999,353 1,191,315 0 1,191,315 1,191,315 0 (Vehicle Inspection Center) Consulting Services 6,999,728 6,159,664 0 6,159,664 6,159,664 0 (Overlay and Sealcoat) Consulting Services 489,740 291,793 0 291,793 291,793 0 (Vehicle Inspection Center) Service Charges 1,599,816 1,559,618 0 1,559,618 1,559,618 0 During Construction Unallocated 8,231,885 0 0 0 0 0 Total 68,000,000 68,084,083a 0 68,084,083 68,084,083 0 a An amount of $84,083 increased under the loan proceeds for currency fluctuation. 9. Local Costs Financed by ADB - Amount $7,936,786 - Percent of Local Costs 19.80 - Percent of Total Cost 7.33 C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 56.50 60.15 Local Currency Cost 49.00 47.98 Total 105.50 108.13 iv 2. Financing Plan ($ million) Source Appraisal Estimate Actual Foreign Local Total Foreign Local Total Borrower-Financed 0 37.50 37.50 0 40.05 40.05a ADB-Financed 56.50 11.50 68.00 60.15 7.93 68.08 b Total 56.50 49.00 105.50 60.15 47.98 108.13 ADB = Asian Development Bank. a An amount of $2.63 million was incurred as cost overrun (2.49 percent of the total actual project cost) which was borne/shouldered by the Government of Bangladesh. Cost overrun includes an amount of Tk48,194,384.47 equivalent to approximately $1.0 million was incurred in civil works and the balance $1.63 million was incurred in taxes and duties and cost of land ($1.00 = Tk.42.15 to 48.00). b Of the total cost overrun, an amount of $0.08 million (about 3% of cost overrun) was met from the loan proceeds, i.e. appreciation of SDR against the dollar. 3. Cost Breakdown by Project Components ($ million) Component Appraisal Estimate Actual I. Overlay and Sealcoat Component A. Base Coat 1. Civil Works (Overlay) 36.00 44.15 2. Civil Works (Sealcoat) 5.50 2.54 3. Equipment 1.50 0.07 4. Consulting Services 4.75 4.08 5. Incremental Cost of Government Establishment 0.75 0 Subtotal (1. A) 48.50 50.84 B. Contingencies 1. Physical 4.85 0 2. Price 3.65 0 Subtotal (I.B) 8.50 0 Subtotal (1.A + 1.B) 57.00 50.84 II. Road Improvement Component A. Base Coat 1. Civil Works 33.10 45.67a 2. Consulting Services 2.14 2.09 3. Incremental Cost of Government Establishment 4. Land Acquisition, Taxes and Duties 0.70 0.33 Subtotal (II.A) 35.94 48.09 B. Contingencies 1. Physical 3.59 0 2. Price 2.87 0 Subtotal (II.B) 6.46 0 Subtotal (II.A + II.B) 42.40 48.09 a Includes an amount of $1 million met from the Government, which could not be accommodated from loan proceeds. v III. Road Transport Component A. Base Coat 1. Building Construction 2.30 2.17 2. Procurement and Installation of Equip. 1.00 1.19 3. Consulting Services and Training 0.46 0.29 4. Incremental Cost of Government Establishment 5. Land Acquisition, Taxes and Duties 0.10 3.99 Subtotal (III.A) 3.86 7.64 B. Contingencies 1. Physical 0.39 0 2. Price 0.26 0 Subtotal (III.B) 0.64 0 Subtotal (III.A + III.B) 4.50 7.64 IV. Service Charges During Construction 1.60 1.56 Total (I-IV) 105.50 108.13 4. Project Schedule a Appraisal Estimate Actual Date of Contract with Consultants (i) Overlay and Sealcoat Component - Date of Contract 1-4-1994 27-11-1994 - Completion of Work 30-6-1997 31-7-1997 (ii) Road Improvement Component - Date of Contract 1- 4-1994 24-1-1996 - Completion of Work 31-3-1998 30-9-1999 (iii) Vehicle Inspection Centers Component - Date of Contract 31-4-1994 2-10-1995 - Completion of Work 30-6-1996 30-11-1998 Completion of Engineering Designs 31-1-1988 31-3-1993 Civil Works Contract - Date of Award 30-4-94 to 23-11-94 to 31-5-95 21-5-95 - Completion of Work 30-6-96 to 30-6-2000 31-3-98 Equipment and Supplies Dates - First Procurement 30-9-1994 15-6-1998 - Last Procurement 31-12-1995 1-5-1998 - Completion of Equip. Installation 30-4-1996 31-3-1999 Start of Operations Completion of Tests and Commissioning 30-6-1996 15-11-2001 vi Beginning of Start-Up 1-8-1996 24-11-2001 a The Project was substantially completed before the introduction of project performance review ratings. D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person of Days Membersa Fact-Finding Mission 22 Nov–7 Dec 1992 5 75 a, b, c, d, h Appraisal Mission 9–24 Jun 1993 7 112 a, d, e, g, h Inception Mission 27Apr–2 May 1994 1 6 a Special Review Mission 15–16 Oct 1994 1 1 h Review Mission 7–8 Feb 1995 1 2 a Review Mission 14–30 May 1995 1 16 h Review Mission 7–14 Oct 1995 2 16 a, d Midterm Review Mission 22 Apr–3 Jun 1996 2 12 a, h Review Mission 3–30 Apr 1997 1 7 a Review Mission 7 Jun–9 Jul 1997 1 3 a Review Mission 10 Mar–22 Jun 1998 1 10 a Review Mission 9 Mar–9 May 1999 2 22 a, h Review Mission 8–9 May 1999 3 3 a, h Project Completion Review b 2-5- Dec 2001 3 12 a, e, h a a-engineer, b-financial analyst, c-counsel, d-economist, e-procurement or consultant specialist, f-control officer, g-programs officer, h-other categories.
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