Document of The World Bank Public Disclosure Authorized Report No: ICR0000358 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-29950) ON A Public Disclosure Authorized CREDIT IN THE AMOUNT OF US$ 235 MILLION (SDR 168.6 MILLION CREDIT) TO THE PEOPLES REPUBLIC OF BANGLADESH FOR A Public Disclosure Authorized PRIVATE SECTOR INFRASTRUCTURE DEVELOPMENT PROJECT (PSIDP) January 30, 2008 Sustainable Sector Development World Bank Office: Dhaka South Asia Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective) Currency Unit = Bangladesh Taka US$ 1.00 = Tk.68.82 Taka 1.0= US$ 0.0145306, at project closing (March 31, 2007) FISCAL YEAR Jlu1 to June 30 ABBREVIATIONS AND ACRONYMS GOB Government of Bangladesh IDCOL Infrastructure Development Company Limited IIFC Infrastructure Investment Facilitation Center IPP Independent Power Producer MPL Meghnaghat Project (MPL) PFRAP Post Flood Recovery Assistance Program PPP Public Private Partnership PSIDP Private Sector Infrastructure Development Project Vice President: Praful C. Patel Country Director: Mohamed Alhousseyni Toure Sector Manager: Salman Zaheer Project Team Leader: Md. Iqbal ICR Team Leader: Md. Iqbal Bangladesh Private Sector Infrastructure Development Project CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph B. Key Dates.................................................................................................................. iv C. Ratings Summary...................................................................................................... iv D. Sector and Theme Codes ........................................................................................... v E. Bank Staff................................................................................................................... v F. Results Framework Analysis..................................................................................... vi G. Ratings of Project Performance in ISRs .................................................................... x H. Restructuring (if any)................................................................................................. x I. Disbursement Profile................................................................................................. xi 1. Project Context, Development Objectives and Design............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 8 3. Assessment of Outcomes.......................................................................................... 20 4. Assessment of Risk to Development Outcome......................................................... 24 5. Assessment of Bank and Borrower Performance ..................................................... 24 6. Lessons Learned ....................................................................................................... 27 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 28 Annex 1. Project Costs and Financing.......................................................................... 30 Annex 2. Outputs by Component ................................................................................. 32 Annex 3. Economic and Financial Analysis................................................................. 34 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 37 Annex 5. Beneficiary Survey Results (if any) ............................................................. 39 Annex 6. Stakeholder Workshop Report and Results (if any)...................................... 40 Annex 7. Summary of Borrower's ICR and/or Comments on ICR .............................. 41 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders....................... 55 Annex 9. List of Supporting Documents ...................................................................... 56 Additional Annex 10: Post Flood Recovery Assistance Program. ............................... 58 Additional Annex 12. Summary of Borrower's ICR for Post Flood Recovery Assistance Program....................................................................................................... 71 MAP A. Basic Information Private Sector Country: Bangladesh Project Name: Infrastructure Development Project ID: P044789 L/C/TF Number(s): IDA-29950 ICR Date: 06/27/2007 ICR Type: Core ICR Lending Instrument: SIL Borrower: GOB Original Total XDR 168.6M Disbursed Amount: XDR 134.36 M Commitment: Environmental Category: A Implementing Agencies: Bangladesh Bank Ministry of Communication/Roads Highway Department Directorate of Secondary and Higher Education (MOE) Local Government Engineering Department Infrastructure Development Company Limited (IDCOL) Infrastructure Investment Facilitation Center (IIFC) Palli Karmo Sahayak Foundation (PKSF ) Directorate of Non-Formal Education Co-financiers and Other External Partners: CIDA and DfID B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 07/17/1995 Effectiveness: 04/29/1998 04/29/1998 Credit Appraisal: 06/28/1997 03/15/2005 Amendment: An MTR was not Approval: 10/28/1997 Mid-term Review: carried out. Closing: 12/31/2002 03/31/2007 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Unsatisfactory Risk to Development Outcome: Significant Bank Performance: Moderately Unsatisfactory Borrower Performance: Moderately Unsatisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Satisfactory Moderately Implementing Moderately Quality of Supervision: Unsatisfactory Agency/Agencies: Unsatisfactory Overall Bank Moderately Overall Borrower Moderately Performance: Unsatisfactory Performance: Unsatisfactory C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No Highly Satisfactory at any time (Yes/No): (QEA): Problem Project at any Quality of Yes None time (Yes/No): Supervision (QSA): DO rating before Moderately Closing/Inactive status: Unsatisfactory D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Central government administration 9 50. 5 Oil and gas 30 Power 31 49.5 Telecommunications 30 Theme Code (Primary/Secondary) Infrastructure services for private sector development Primary Primary Other financial services and private sector development Primary Primary Other urban development Primary Secondary Regulation and competition policy Primary Primary E. Bank Staff Positions At ICR At Approval Vice President: Praful C. Patel Meako Nishimizu Country Director: Mohamed Alhousseyni Toure Pierre Landell-Mills Sector Manager: Salman Zaheer Alastair McKechnie Project Team Leader: Md. Iqbal S.Vijay Iyer ICR Team Leader: Md. Iqbal ICR Primary Author: Kyran O'Sullivan and Reefat Sultana F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The PDO as contained in the DCA was to assist in the development of a modern and efficient infrastructure system in Bangladesh by promoting private sector participation, inter alia, in the investment, operation, ownership and maintenance of infrastructure facilities. This translated into the specific objectives: (i) enable flow of private investment in the form of commercial equity and debt financing for infrastructure project; and (ii) enhance GOB’s capacity to attract and realize private sector interest and investment in infrastructure projects Project Development Indicators (Values at start and target values for mid-term and completion are from the PAD). PSIDP Performance Monitoring Indicators At Actual on At Mid-Term At Completion Indicators Start completion (target) (target) (target) Energy 700-800 MW Generation capacity in 700 MW 450 MW 0 under private sector operating operating construction Gas pipelines in private 100 km under 100 km or more 0 0 sector construction operating Other Sectors Project identified and developed for private sector participation: (i) identified and/or 2 5 10 0 feasibility stage; (ii) under procurement 10 0 2 3 15 (with 8 (iii) under implementation 0 0 2 in operation) Other Outputs BOT/BOO framework General BOT/BOO 0 in place framework in place Completed Under operation PSIDP Performance Monitoring Indicators GOB approved standard security agreements for 0 Completed In use 3 projects in other sectors (non-energy) Promotion/road shows by IIFC for attracting 0 At least 2 At least 5 8 infrastructure investment At least US$ 350 realized and Over US$ 1 Non-GOB guaranteed debt At least US$ a further billion in finance in infrastructure 0 350 committed US$250 million pipeline projects equivalent projects committed At least $200 US$225 US$80 IDCOL financing 0 million disbursed million committed Revised Project Development Objectives (as approved by original approving authority) The objectives of the Post Flood Recovery Program (for which $154 million from PSIDP was allocated in March 2005) were: (i) rehabilitation of physical and social infrastructure damaged by September 2004 flood for speedy recovery of affected areas and population particularly the poor and vulnerable, while emphasizing on reduction on vulnerability over long term; and (ii) promotion of infrastructure