Subregional Transport Project Preparatory Facility (RRP BAN 44142) DEVELOPMENT COORDINATION A. Major Development Partners: Strategic Foci and Key Activities 1. Major development partners in the Bangladesh transport sector are the World Bank, the Department for International Development of the United Kingdom (DFID), the Japan International Cooperation Agency (JICA), the Organization of the Petroleum Exporting Countries (OPEC) Fund for International Development, the Islamic Development Bank, and the Kuwait Fund for Arab Economic Development. Several bilateral agencies have also assisted the rural infrastructure sector. The development partners are united in supporting Bangladesh's National Land Transport Policy to ensure sustainable maintenance of roads and ensure that other sector governance issues are addressed. In subsectors where other development partners play a leading role, such as in inland water transport and telecommunication, ADB has taken a supportive role. 2. In the roads subsector, ADB provides support for road maintenance and improvement, while JICA provides support for bridge rehabilitation and construction. The Padma Bridge project is under preparation, which is expected to be financed by the World Bank, ADB, JICA and other development partners. JICA provided the initial feasibility study, while ADB is supporting an update of the feasibility study and preparation of the detailed design. 3. In the railway subsector, ADB has provided a multitranche financing facility for the Railway Sector Investment Program 1 ($430 million facility) in Bangladesh, approved in October 2006. This investment program demonstrates most ideal coordination among key development partners in the country. The sector reform framework agreed in the investment program provides a platform for the World Bank and JICA to be based for their financing. This will result in additional potential loans worth $300 million–$400 million from the World Bank and JICA, enabling $924 million investment in the country’s railway sector. 4. In the ports subsector, ADB provided a loan for the Chittagong Port Trade Facilitation Project 2 ($30.6 million), approved in November 2004. While no major support has been provided by other development partners, ADB has provided technical assistance to enhance the operational efficiency of ports, including the Chittagong Port, and recently approved technical assistance for the Mongla Port and the Benapole Land Port. B. Institutional Arrangements and Processes for Development Coordination 5. At the country level, Bangladesh will prepare a country partnership strategy including the transport sector in close coordination with its development partners. At the sector level, ADB, DFID, the World Bank, and the Government of Japan established a joint strategic framework in 2006 for assisting Bangladesh, and also agreed to conduct joint evaluation of their assistance to the transport sector. Development partners have closely coordinated their activities through monthly meetings in Dhaka. Joint missions are often organized to coordinate the work and requirements of development partners. 1 ADB. 2006. Report and Recommendation of the President to the Board of Directors: Proposed Multitranche Financing Facility and Technical Grant to the People’s Republic of Bangladesh for the Railway Sector Investment Program . Manila. 2 ADB. 2005. Report and Recommendation of the President to the Board of Directors on A Proposed Loan And Technical Assistance Grant to the People’s Republic of Bangladesh for the Chittagong Port Trade Facilitation Project . Manila. 2 C. Achievements and Issues 6. ADB has a strong track record of coordination with development partners in the transport sector. JICA recently undertook an assessment of transport assistance provided to Bangladesh by the four partners in the joint country strategy. The JICA assessment 3 focused on the collaborative efforts of the four donors, with a focus on “Alignment and Harmonization.” The development partners showed strong collaboration in the following activities: preparing the Padma Bridge; reforming and investing in Bangladesh Railway; and establishing a sustained road maintenance funding mechanism. 4 The report is moderately positive in its assessment . 7. Enhancing sector efficiency is one area that will require better coordination and harmonization—especially in railways and roads. ADB's Country Assistance Program Evaluation suggested that ADB maintain its role as lead development partner in transport to facilitate the sector reform agenda. Close coordination among development partners should continue to ensure that sector reforms are pushed forward with consistent objectives. D. Summary and Recommendations 8. ADB's past and current intervention in the transport sector contributes to the Government of Bangladesh's development objective. ADB should remain a strategic long-term partner of Bangladesh and continue to implement road and railway projects. The scope and strategy of the proposed facility reflect ADB’s focus on regional cooperation and integration and enhancement of project readiness. Development partners may provide financing support to the government using the feasibility study and detailed design prepared under the project. Development coordination should continue during project implementation. The proposed facility will provide financing opportunities for development partners, and ADB should continue to coordinate transport sector reform activities with development partners. External Assistance to the Road Subsector (Loans approved during 2000-2010) Amount Approval Source Project ($M equivalent) Year ADB Cyclone Damaged Roads Reconstruction 28.8 1991 Road Overlay and Improvement Project 68.0 1993 Jamuna Multipurpose Bridge 200.0 1994 Jamuna Bridge Access Roads Project 74.3 1997 Flood Damage Rehabilitation Project 45.6 1998 Southwest Road Network Development Project 115.0 1999 Road Maintenance and Improvement 68.7 2000 Road Network Improvement and Maintenance 65.0 2002 Road Network Improvement and Maintenance II 126.0 2004 Emergency Flood Damage Rehabilitation Project 50.5 2005 Padma Multipurpose Bridge Design Project 17.6 2007 Emergency Disaster Damage Rehabilitation (Sector) 2008 Project 120.0 Padma Multipurpose Bridge Design (Supplementary) 10.0 2009 World Bank Second Road Rehabilitation and Maintenance 146.8 1994 Jamuna Multipurpose Bridge 200.0 1994 3 ADB. 2008. Evaluation of Four Donors’ Assistance in the Bangladesh Transport Sector, Draft Report . Manila. 4 DFID, which took the lead in conducting the analytical work for the road maintenance fund, has reportedly decided to pull out of the Bangladesh roads subsector. 3 Third Road Rehabilitation and Maintenance 271.0 1998 Kuwait Doarika–Shirkepur Bridge Project 21.6 1998 Sylhet–Tamabil Jaflong Road Project 22.0 1996 Third Karnaphuli Bridge 53.6 2005 Japan Construction of Meghna–Gumuti Bridge 74.0 1991 Jamuna Multipurpose Bridge 200.0 1994 Jamuna Bridge Access Road Project 50.4 1997 Construction of Small and Medium Bridges on Dhaka– Chittagong Highway 21.2 1998 Meghna Bridge Resettlement Project 1.7 1999 Paksey Bridge 116.9 1997 Rupsa Bridge 77.9 2001 Emergency Disaster Damage Rehabilitation Project JPY 1406 2008 Eastern Bangladesh Bridge Improvement Project JPY 7824 2009 Chittagong City Outer Ring Road Project JPY 9096 2010 Denmark Dhaka–Aricha Highway 30 1993 Important Road Rehabilitation in Patuakhali and Barguna 33.7 1999 PRC Mohananda Bridge 6.5 1991 Karatua Bridge 8.5 1996 Gabkhan Bridge 10.3 1998 United Kingdom Institutional Development Component 2 10.0 1994 Institutional Development Component 3 7.0 1999 Bridge Improvement and Maintenance Project 2 20.9 1995 Bhairab Bridge 37.9 1998 Reconstruction of Narrow Bridge and Culvert 11.0 1999 External Assistance to the Railway Subsector (Loans approved during 1990-2010) Amount ($M Approval Source Project equivalent) Year ADB Railway Recovery Program 80.0 1994 Jamuna Bridge Railway Link Project 110.0 1997 Emergency Flood Damage Rehabilitation (railway 20 2005 component) MFF Railway Sector Investment Program 430 2006 World Bank Railway Reform Programmatic Development Policy Credit 40 2006 Technical Assistance for Feasibility Study, Safeguard Policy Study, Detailed Engineering Design and Tendering 1.8 2009 Services for Projects under World Bank Funding for Bangladesh Railway. France Supply of 3 relief cranes 6.4 1991 Track equipment 1.4 1995 Jamuna Bridge Railway Link Project 8.0 1997 Germany Supply of locomotives 1995 Repair of passenger coaches Japan Dhaka–Chittagong Development Project JPY 129.16 2007 Korea Purchase of 10 Meter-gauge Locomotives. Under the 28 2008 Procurement of 47 Locomotives Project OPEC Jamuna Bridge Railway Link Project 15.0 1997 Saudi Arabia Construction of railway workshop (Saidpur) 1991 Spain Jamuna Bridge Railway Link Project 11.4 1997 MFF: multitranche financing facility, Source: Asian Development Bank .