Quarterly Progress Report - ADB

1. Introduction and Basic Data1Country :Bangladesh2ADB Loan no :Loan 2695-BAN3Project Title :City Region Development Project (CRDP)4Borrower:Government of the People‟s Republic of Bangladesh5Executing Agency:Local Government Engineering Department (LGED)6Implementing Agencies:Dhaka South City Corporation, Dhaka North City Corporation,Narayanganj City Corporation, Gazipur City Corporation, KhulnaCity Corporation, Rajdhani Unnayan Kartipakkha (RAJUK),LGED, DPHE and Pourashavas7Total estimated project cost (1Project ) :8Date of Loan Approval :10 November 20109Date of Signing Loan Agreement :10 August 201110Date of Loan Effectiveness :23 September 201111Date of Loan Closing:30 June 2018 (after 81 months)12Elapsed Loan Period:92% (Based on loan closing date)13Date of Last ADB/Joint Review Mission:3 September to 9 September 2012stRevisedTk. 139,597.75 Lakh (Revised DPP) ( ADB: SDR 76,894,000,US 120.00 Million, KfW 10.50 Euro, SIDA US 13.00 million andGOB US 50 million for the CRDP Investment Project; ADB US 0.675 million, ACEF US 1.50 Million and GOB in-kindcontribution Tk. 19.112 million (US 2.75 ) for the TA Components27 November to 3 December 201227 February to 4 March 20139 September to 18 September 201318 February to 23 February 201420 May to 27 May 201413 to 19 November 201415 April to 23 April 201510 November to 18 November 201519 September to 25 September 201601 November to 09 November 2017City Region Development ProjectPage 1

st14.Financing Plan (1 Revised Project):Mode of financing withsource (In MillionTaka)LoanTotal8,340.00GOBPA(FE)(RPA)-** 8,340.00ADB(7337.843)(US 120 million)GrantADB, ACEF, KfW,SIDA*** 2125.663Total:PA Source5619.775* 34,94.11213959.7753,494.112(1881.7020)(ADB- US 0.675million;ACEFUS 1.50 million andKfW-10.50millionEuro and SIDA US 13 million)10465.663(9219.5450)* This amount includes GOB Grant of 3,475.00 Million for CRDP Investment Project and GOB In kindcontribution of Tk. 5.212 Million for TA on Regional Planning and Governance Framework and GOB In kindcontribution of Tk. 13.90 Million for TA on Energy Efficiency Improvement.** This amount represents ADB Loan for the CRDP Investment Project.*** This amount includes ADB Grant of Tk. 46.913 Million for TA on Regional Planning and GovernanceFramework and ACEF Grant of Tk. 104.25 Million for TA on Energy Efficiency Improvement. This alsoincludes an amount of Tk. 1071.00 million as KfW grant and Tk. 903.50 million as SIDA grant for the CRDPinvestment Project.City Region Development ProjectPage 2

SourceApprovalActual Expenditure tillJune 30, 2018US (Million)% withrespecttoBDTUS (Million)(Million)Total% withrespecttoBDT(Million)TotalAsianDevelopmentBank ernmentofBangladesh .31489.67%12517.1766*This amount includes ADB Loan of US 120 Million (BDT 8340.00 Million) for the CRDP Investment Project,ADB Grant of US 0.675 million (BDT. 46.913 Million) for TA on Regional Planning and Governance Frameworkand ACEF Grant of US 1.50 million (BDT. 104.250 Million) for TA on Energy Efficiency Improvement.** This amount includes GOB Grant of US 50 Million (BDT 3,475.00 Million) for CRDP Investment Project andGOB In kind contribution of US 0.075 Million (Tk. 5.212 Million) for TA on Regional Planning and GovernanceFramework and GOB In kind contribution of US 0.20 Million (BDT 13.90 Million) for TA on Energy EfficiencyImprovement.City Region Development ProjectPage 3

2. Utilization of Funds (ADB Loan, Co-financing and CounterpartFunds)Total Disbursement target ofProject Aid for the CurrentYear(2018)(Inclusive of all developmentpartners)In Million US Total Disbursement of Project Aid(Inclusive of all development partners)During the quarter(In Million US )During the currentCalendar Year (2018)(In Million US )Cumulative up to thequarter(In Million US )(% of Yearly Target)12.2483.1342. Disbursements from ADB:Total LoanDisbursementAmountTarget for the(In Million USCurrent )Calendar Year(2018)(In Million US )109.097.8383. Disbursements from KfW:Total LoanDisbursementAmountTarget for the(In Million USCurrent )Calendar Year(2018)(In Million US )15.414. Disbursements from SIDA:Total LoanDisbursementAmountTarget for the(In Million USCurrent )Calendar Year(2018)(In Million US )13.004.413.205(26.17%)Disbursement during the quarter(In Million US )TargetAchievement(%)1.3781.238Disbursement during the quarter(In Million US )TargetAchievement(%)--Disbursement during the quarter(In Million US )TargetAchievement(%)2.911.896City Region Development Project117.076Achievement of theDisbursementTarget for thecurrent CalendarYear (2018) up tothe quarter(In Million US )(%)89.84%CumulativeDisbursement upto the quarter(In Million US )Achievement of theDisbursementTarget for thecurrent CalendarYear (2018) up tothe quarter(In Million US )(%)-CumulativeDisbursement upto the quarter(In Million US )Achievement of theDisbursementTarget for thecurrent CalendarYear (2018) up tothe quarter(In Million US )(%)65.154%CumulativeDisbursement upto the quarter(In Million US )97.63811.3488.09Page 4

3. Project PurposeProject Purpose1.Introduction:Bangladesh has been experiencing rapid urbanization for several decades. Through the rapid urbanization,large cities and surrounding secondary towns have been agglomerating with close economic and sociallinkages, forming a city region. A city region is defined as an organic agglomeration of a large metropolitancity (City Corporation), surrounding secondary towns (Pourashavas) and adjacent peri-urban areas (urbancenters). Lack of effective framework for integrated planning and coordination among municipalities andother public entities has been preventing city regions from making effective interventions to materialize theirfull development potential. The implementation of Dhaka Metropolitan Development Plan (DMDP) (19952015), development plan of Dhaka city region, has been very slow and the plan is becoming outdated due tounparalleled population growth and expansion of the urban area.City region development is warranted to maximize economic growth potential of city regions, to promoteintegrated development of communication and infrastructural facilities, enhanced competitiveness andexpansion of business and employment in selected city regions, and to avoid the bane of uncoordinatedcluster of urban growth. In this backdrop, the need for formulation of City Region Development Project(CRDP) is felt. PRSP II has supported planned development of city regions and has incorporated adoptionof an integrated approach for urbanization embracing cluster development of adjacent towns as one of thestrategies for urban development. A Project Preparatory Technical Assistance (PPTA) entitled “PPTA forPreparing City Region Development Project” was approved to prepare the CRDP with ADB assistance. .The Project is prepared through the Project Preparatory Technical Assistance. An ADB Loan Fact FindingMission visited Bangladesh during 20 June – 4 July 2010. Based on the findings of the PPTA, discussionsduring the Mission and outcome of field visits, the Mission prepared Aide Memoire for the City RegionDevelopment Project. The DPP for the Project is prepared on the basis of the Aide Memoire.The Asian Development Bank (ADB) approved the Loan 2695-BAN: City Region Development Project(CRDP) on 10 November 2010. The Government approved the Development Project Proposal (DPP) for theproject on 2nd August 2011. CRDP is co-financed by German Financial Cooperation through KfW with agrant of EUR 10.5 million (about 15.41 million) allocated for climate change adapted urban development inKhulna city. The MOU for this parallel co-financing was signed on 31 October 2011. The FinancingAgreement between Economic Relations Division of the Government and KfW was signed on March 22,2012. CRDP is also co-financed by the Swedish International Development Authority (SIDA) with a grant ofSEK 90.0 million (about 13 million ) administered by ADB for urban center infrastructure and governanceimprovement. The Administrative Agreement between ADB and SIDA was signed on 5 December 2012 whilethe Grant Agreement between ADB and the Government was effective on 30 January 2014.1.1.Objectives of the Project: The City Region Development Project aims at enhancing growth potential andimproving environmental sustainability of the target city regions through effective regional urban planning.The target city regions of the Project are centered at Dhaka city region and Khulna city region. The Projectwill support the development of key urban infrastructures, focusing on urban environment and local economicdevelopment. The Project will also support the Government to improve regional and urban planning, and tostrengthen municipal management and capacity for effective and sustainable urban development.1.2Scope of the Project:The impact of the Project will be enhanced growth potential and environmental sustainability of the target cityregions. The outcome of the Project will be improved urban environment and infrastructure services basedon effective regional urban planning.The Project consists of three components: Component 1: Development of urban infrastructures; Component2: Improvement of urban planning; and Component 3: Strengthening of municipal management and capacity.City Region Development ProjectPage 5

Component 1: Development of Urban InfrastructuresThe output of component 1 is enhanced capacity of urban infrastructures. The Project will enhance thecapacity of key urban infrastructures which contribute to coherent regional development. This output will beachieved through subprojects which will be screened and prioritized by the Steering Committee inaccordance with selection criteria. The intervention will focus on infrastructures that will improve urbanenvironment and promote local economic development. The Project takes a sector approach andsubprojects will be screened to ensure coherent regional development. Eligible subprojects include watersupply and sanitation, solid waste management, drainage, energy efficiency program, urban transport andurban renewal sectors. The subprojects will be mostly implemented by the Implementing Agencies throughProject Implementation Units (PIUs), with support of the Management, Design and Supervision (MDS)consultants.Component 2: Improvement of Urban Planning:The output of this component is improved urban planning. The Project will support review and update ofurban development plans, notably Dhaka Metropolitan Development Plan, and carry out a feasibility study ofa satellite city. Rajdhani Unnayan Kartripakkha (RAJUK) will lead these activities as the implementingagency, supported by the Regional Development Planning (RDP) consultants. Capacity building program willbe provided to urban planners in RAJUK and municipalities.Component 3: Strengthening of Municipal Management and Capacity:The Project will support targeted capacity building, built on the existing program under the UrbanGovernance and Infrastructure Improvement (Sector) Project (UGIIP). For Pourashavas which have beenalready covered under the UGIIP, the capacity development program will focus on sustaining theirachievements, and further strengthening capacity in particular areas. Pourashavas which were not coveredby the UGIIP will start with core training programs of the UGIIP, namely tax collection, citizen participation,and urban planning. City corporations and urban centers will start with certain areas of municipalmanagement, such as tax collection and urban planning on pilot basis. Project Management andCoordination Unit (PMCU) will provide training program to PIUs with support of Municipal CapacityDevelopment (MCD) consultants.1.3Location: Dhaka City Region and Khulna City Region. The Project Area includes the following:Dhaka city region:City Corporations : Dhaka South City Corporation, Dhaka North City Corporation, Narayanganj CityCorporation and Gazipur City Corporation (4 City Corporations)Pourashavas:Pourashavas)Savar, Narsingdi, Kanchon, Kaliakoir, Singair, Sonargaon, Tarabo and Manikganj (8Urban centers in the following Upazila: Dhamrai, Keraniganj, Savar, Gazipur Sadar, Kaliakoir, Kaliganj,Sreepur, Araihazar, Sonargaon, Bandar, Rupganj, Narayanganj Sadar (12 Upazilas)Khulna city region:Khulna City Corporation (1 City Corporation)Pourashavas: Nowapara, Mongla, Jhikargacha, and Jessore (4 Pourashavas)Urban centers in the following Upazila: Batiaghata, Dacope, Dighalia, Dumuria, Paikgacha, Phultala,Terokhada, Rupsa, Bagerhat, Fakirhat, Kachua, Morrelganj, Rampal, Mongla, Bagherpara, Jhikargacha,Monirampur, Keshapbur, Sarsha, Koyra, Chitalmari, Mollahat, Sharankhola and Chowgacha (24 Upazilas)1.4Implementation Period:i. Date of Commencement: July, 2011City Region Development ProjectPage 6

ii. Date of Completion: December, 20181.5Status of project scope/implementation arrangements compared with those in the Report andRecommendation of the President (RRP), whether major changes have occurred or need to be made:Project scope: The Project scope has remained the same with that of the Report and Recommendation ofthe President (RRP).Implementation arrangements: The implementation arrangements have remained the same with those ofthe Report and Recommendation of the President (RRP).1.6An assessment of the likelihood that the immediate development objectives (project purpose) will bemet in part or in full, and whether remedial measures are required based on the current scope andimplementation arrangements: It is too early to make an assessment of the likelihood that the immediatedevelopment objectives (project purpose) will be met in part or in full, and whether remedial measures arerequired based on the current scope and implementation arrangements.City Region Development ProjectPage 7

4. IMPLEMENTATION PROGRESSThe implementation of the City Region Development Project has started from July 2011. The Projectaims at enhancing growth potential and improving environmental sustainability of the target cityregions through effective regional urban planning. The target city regions of the Project are DhakaCity Region and Khulna City Region. The Project will support the development of key urbaninfrastructures, focusing on urban environment and local economic development. The Project will alsosupport the Government to improve regional and urban planning, and to strengthen municipalmanagement and capacity for effective and sustainable urban development. The GOB, the AsianDevelopment Bank, KfW and SIDA are financing the Project. The approved implementation period ofthe Project is from July 2011 to June 2018.This is the twenty third Quarterly Progress Report of the Project. The specific Quarter under reviewspans April 2018 to June 2018. This is the second quarterly report of the calendar year 2018.The Project consists of three components: Component 1: Development of Urban Infrastructures;Component 2: Improvement of Urban Planning and Component 3: Strengthening of MunicipalManagement and Capacity.The Local Government Engineering Department (LGED) is the executing agency of the Project underthe Ministry of Local Government, Rural Development and Cooperatives. LGED is the Lead Agency ofthe Project. Sub-projects are implemented by the Implementing Agencies (IAs). The Implementingagencies are: Dhaka South City Corporation, Dhaka North City Corporation, Narayanganj CityCorporation, Gazipur City Corporation, Khulna City Corporation, RAJUK, LGED, DPHE, and thePourashavas included under the Project. Project Management and Co-ordination Unit (PMCU), basedat the LGED Headquarters, is responsible for the overall management, co-ordination andimplementation of the Project.4.1Utilization of Consultancy ServicesThere are four categories of consultants mobilized under the Project. These are: (1) Management,Design and Supervision (MDS) Consultants, (2) Municipal Capacity Development (MCD) Consultants,(3) Regional Development Planning (RDP) Consultants and (4) Individual Consultants. The MDSConsultants provide necessary consultancy support to the designing, implementation and supervisionof the component entitled

Quarterly Progress Report Project Number: 39298-013 Quarterly Report July 2018 . 4.20 CRDP‟s Attempt to introduce some sort of Innovative Design in Infrastructure Work: 57 4.21 KfW‟s Technical comments made in Annex 1 on progress inspection and subproject