ASIAN DEVELOPMENT BANK PCR: BAN 22237 PROJECT COMPLETION REPORT ON THE JAMUNA BRIDGE PROJECT (Loan 1298-BAN[SF]) IN BANGLADESH December 2000 CURRENCY EQUIVALENTS Currency Unit – Taka (Tk) At Appraisal (31 January 1994) Tk1.00 = $0.0249 $1.00 = Tk40.07 At Project Completion (30 June 2000) Tk1.00 = $0.0197 $1.00 = Tk50.85 ABBREVIATIONS AADT – annual average daily traffic ADB – Asian Development Bank EFAP – erosion and flood action plan EIRR – economic internal rate of return EMAP – environmental management action plan ICB – international competitive bidding IRP – independent review panel JMBA – Jamuna Multipurpose Bridge Authority NGO – nongovernment organization O&M – operation and maintenance OECF – Overseas Economic Cooperation Fund PAPs – project-affected persons PCRM – Project Completion Review Mission POE – panel of experts RRAP – revised resettlement action plan TA – technical assistance NOTES (i) The fiscal year (FY) of the Government ends on 30 June. (ii) In this report, “$” refers to US dollars. CONTENTS Page BASIC DATA ii MAP vi I. PROJECT DESCRIPTION 1 II. EVALUATION OF IMPLEMENTATION 2 A. Project Components 2 8. Implementation Arrangements 3 C. Project Costs and Financing Plan 3 D. Project Schedule 4 E. Engagement of Consultants and Procurement of Goods and ~ervlces 4 F. Performanceof Consultants,Contractors, and Suppliers 5 G. Conditionsand Covenants 5 H. Disbursements 5 I. Environmentaland Social Impacts 5 J. Performanceof the Borrowerand the Executing,A.gency 6 K. Performanceof the Asian DevelopmentBank 7 III. EVALUATION OF INITIAL PERFORMANCE AND BENEFITS 7 A. Financial Analysis 7 B. Economic Performance 7 C. Attainment of Benefits 8 IV. CONCLUSIONS AND RECOMMENDATIONS A. Conclusions 8 B. Lessons Learned 9 C. Recommendations 9 APPENDIXES 11 BASIC DATA A. Loan Identification 1. Country - Bangladesh 2. Loan Number - 1298 3. Project Title Jamuna Bridge Project 4. Borrower - People's Republic of Bangladesh 5. Execuitng Agency - The equivalent in various currencies of SDR145.607 million ($200.0 million equivalent) from the Asian Development Bank's (ADB's) Special Funds resources. 6. PCR Number - PCR: BAN 597 B. Loan Data 1. Appraisal - Date Started - 06 September 1993 - Date Completed - 20 September 1993 2. Loan Negotiations - Date Started - 12 January 1994 - Date Completed - 13 January 1994 3. Date of Board Approval - 08 March 1994 4. Date of Loan Agreement - 18 March 1994 5. Date of Loan Effectiveness - In Loan Agreement - 16 June 1994 - Actual Number of - 12 August 1994 Extensions 6. Closing Date - In Loan Agreement - 30 June 1999 - Actual - 30 June 2000 - Number of Extensions one 7. Terms of Loan - Maturity (no. of years) - 40 - Grace Period (no. of years) - 10 (service charge of one percent per annum) 8. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 05 October 1994 30 September 2000 (est.) 6 years and 1 month Effective Date Original Closing Date Time Interval 12 August 1994 30 June 1999 5 years and 9 months iii b. Amount ($) Original Latest Amount Undisbursed Component Category Allocation Allocation Disbur$ed Loa" Bala"ce Civil Works 0301 167,315,067 168,302,975 191,353,844 -23,050.869 Consulting 2101 9,193,703 10,367,758 10,366,021 -1,123,896 Services Service Charge 6901 5,272,543 0 5,272,543 0 Unallocated 9301 27,621,610 0 0 26,390,105 Totala 209,402,922 209,207,747 206,992,408 2,215,339 a Disbursements as of 22 November 2000. Local Costs (ADS-Financed) Amount ($ million) = 17.11 Percentage of Local Costs - 9.9 Percentage of Total Costs 2.3 c. Project Data ($ million 1. Project Cost Appraisal Civil Works 517.35 555.07 Consulting Services 27.00 29.70 Others 52.50 60.49 Contingencies 99.15 108.47 Total Cost 696.00 753.73 2. Financing Plan Appraisal Actual ADB 200.00 206.99 World Bank 200.00 199.11 OECF 200.00 200.00 The 96.00 147.63 ADS = Asian Development Bank, OECF = Overseas Economic Cooperation Fund. iv 3. Cost Breakdown by Project Component ($ million) Appraisal Estimate Actual FX LC Total FX LC Total ADB 1. Civil Works 159.52 25.83 185.35 175.43 15.92 191.35 2. Consulting Services 8.15 1.27 9.42 9.15 1.19 10.34 3. Service Charge 5.23 5.23 5.30 5.30 Subtotal (A) 172.90 27.10 200.00 189.88 17.11 206.99 World Bank 1. Civil Works 190.30 189.10 2. Consulting Services 9.70 10.01 Subtotal (B) 200.00 199.11 OECF 1. Civil Works 190.30 190.30 2. Consulting Services 9.70 9.70 Subtotal (C) 200.00 200.00 . FX = foreign currency, LC = local currency. 4. Project Schedule Appraisal Estimate Actual Civil Works Contracts - Date of Award Feb 1994 14 May 1994 - Completion of Work June 1998 20 June 1998 D. Data on Bank Missions No. of No. of Specialization Name of Mission Date Persons Persondays of Membersa Fact-Finding 14-26 June 1988 6 13 a,c,d,e Inception 23-25 August 1988 2 3 a,c Supplementary Study 21-25 October 1988 2 5 a,c .' Follow-up Fact-Finding 27-31 March 1989 3 5 a,c,e Review 9-16 November 1989 5 7 a,c,e Review 10-12 December 1989 4 3 a,c,e Review 14-17 May 1990 5 4 a,c,d,e Fact-Finding and Pre- 30 July-1"7August 1990 6 19 a,b,c,d,e Appraisal Consultation 6-10 September 1990 2 5 a,e Cofinanciers' Meeting 27-29 April 1992 1 3 a Cofinanciers' Meeting 5-7 August 1992 2 3 a,e ~ v Cofinanciers' Meeting 18-19 August 1992 1 2 a Appraisal 6-20 September 1993 7 14 a,b,c,d,f,h Loan Negotiations (WB) 29 November 1993 1 1 a Loan Negotiations (ADB) 12-13 January 1994 3 2 a,b,e Project Launch Workshop 16-19 April 1994 3 4 a,b,d First Milestone Meeting 24-26 January 1995 1 3 a Review 08-14 March 1995 1 7 a Cofinanciers' Meeting 11-14 March 1995 1 4 a Second Milestone Meeting 27-29 April 1995 1 3 a Third Milestone Meeting 20-22 June 1995 1 3 a Cofinanciers' Meeting 28 June 1995 2 1 a Cofinancers' Meeting 22 August 1995 2 1 a Fourth Milestone Meeting and Cofinanciers' Meeting 5-9 October 1995 1 5 a Fifth Milestone Meeting and Cofinancers' Meeting 24-25 March 1996 2 2 a, C Sixth Milestone Meeting 10-12 July 1996 3 3 a,c Seventh Milestone Meeting 8-10 December 1996 6 3 a,c,h Review 30 Nov - 5 Dec 1996 1 6 a Midterm Review 3-10 March 1997 3 7 a,c,h Eighth Milestone Meeting 7-9 October 1997 4 3 a,h Ninth Milestone Meeting 22-24 March 1998 1 3 a Inauguration 28 June 1998 2 1 a,c PCR Mission 3-11 May 2000 3 9 a,9 ADB = Asian Development Bank, PCR = Project Completion Report, WB = World Bank. a a = engineer, b = counsel, c = economist, d = procurement specialist/consultant, e = programs officer, f = control officer, 9 = project assistant, h = social development specialist. I. PROJECT DESCRIPTION 1. The Jamuna River, which is one of the world's largest rivers, physically divides Bangladesh into two halves, the east and the west. The eastern half of the country is more developed than the western half, partly because of its access to the capital Dhaka and to international markets through Chittagong port. The western half, which has fertile agricultural land with higher average yields for major crops than the rest of the country, is dependent on agriculture as the dominant sector of the economy. A higher proportion of poor people live in the western half; particularly in northwestern of Bangladesh, which has a population of about 30 million. 2. Until the project bridge was constructed,the Jamuna River was crossab/emainly by ferries and to a lesser extent by launchesand manuallyoperated boats. The ferries for road and railwaytransport were both grossly inadequatein terms of capacity and service levels. The use of outdated, costly, and unreliableferry serviceshad led to frequent and extensive delays at ferry crossings, resulting in high transport costs for passenger and freight movements.1These problems were compoundedby increased risk during the monsoon periodfrom May to October. Becauseof these limitationsand prevailingtransport constraints, the economic potential of the areas on both sides of the Jamuna River had not been fully utilized. The absence of a permanentJamuna River crossinghad constrainedeconomic and social development in Bangladesh,particularly on the western side, and had exacerbated regional disparities.Although the Governmenthad for sometimeaccorded a high priority to establishinga permanentcrossing, it had not built a bridge, mainly becauseof its high cost, related to the width of the river, its flow volume,depth, uncertaintyof its course, and other technical issues. 3. The main objective of the Project was to connect the eastern and western halves of the country, separated by the Jamuna River, and thus help stimulate economic growth by facilitating the transport of passengers and freight and the transmission of electricity, natural gas, and telecommunications across the Jamuna River more economically and efficiently. In addition, the Project was to establish a railway connection between the east and the west in a cost-effective manner. 4. Because of its expected major developmentimpact, the Project was accorded high priority by the Governmentof Bangladesh.The Project was also consistentwith the Asian DevelopmentBank's (ADB's) Country OperationalStrategy and transport sector strategy. It provided essential infrastructureand emphasizedthe strong links betweenpoverty reduction, good governance,and privatesector development.Due to the large size, complexity,and the large funding requirementsfor the Project, the Governmentsought assistance from ADB, OverseasEconomic Cooperation Fund (OECF)2,and World Bank.