Bangladesh Early Warning Update
Asian Development Bank Business Opportunities: Volume 4, March 2008
Thursday, April 17, 2008
This Bulletin is a periodic electronic update from the Bank Information Center (BIC) South Asia office to inform civil society about Asian Development Bank (ADB) projects before they are approved by the Board of Directors of the ADB.
This Update covers project information, organized by sectors, covering Bangladesh only. The information is compiled directly from ADB’s Business Opportunities.
For feedback on the Early Warning Update or to subscribe, please contact:
Bank Information Center, South Asia Office (New Delhi)
Phone: +91-11-2602-0143; Email: southasia@bicusa.org; Web: www.bicusa.org
For more information on specific projects, please contact the following at the ADB:
The Project Officer (contact details listed against each project). When emailing, also copy to: disclosure@adb.org. You may also contact the ADB Public Information and Disclosure Unit (See: http://www.adb.org/Disclosure/contact.asp).
About Business Opportunities (BOp)
Business Opportunities (BOp) identifies potential projects that are under consideration for ADB financing. The BOp listings do not guarantee that financing will be approved for particular projects. However, BOp listings serve as important tools for monitoring and follow up of proposed projects. These, along with your country’s Country Partnership Strategy (CPS), work as early warnings on the projects that your government and the Bank are considering for funding. Advocacy and campaigning experience around the world on Bank projects indicates that the earlier civil society gets involved on proposed projects, the greater the likelihood for impacting them. Proposed projects are listed until the point of ADB Board approval; the remaining are dropped from the list. BOp listings are prepared after CPS approval and during the early phases of Project Preparation. For better understanding of this process, the Bank’s Project Cycle is summarized below.
Project Cycle (ADB website for complete project cycle)
ADB’s Project Cycle
Project Identification/Preparation: ADB often provides grants called project/program preparatory technical assistance (PPTA) to help the government identify and prepare feasible projects. The summary is made available in the form of a project profile or project information document (PID).
During the early stage of the PPTA, an initial poverty and social assessment is conducted to identify people who may be beneficially or adversely affected. A technical assistance report is prepared as a recommendation for ADB to finance a technical assistance project.
If the project requires resettlement of people or might adversely impact the environment, or indigenous peoples, certain safeguard assessments are prepared during this stage. The results of these assessments are to be made available to affected people. For more information on community rights under ADB safeguards and international best practices, see comparative matrices of MDB safeguard policies on BIC's website.
Project Examination: ADB examines project feasibility, first through a fact-finding mission and then through an appraisal mission. The fact-finding mission examines the project's technical, financial, economic, environmental, marketing, and management aspects and potential social impact. Detailed project risks and sensitivity analyses are carried out to assess viability of the proposed project and loan terms are discussed.
Following this, the Appraisal Mission conducts further field study, analyses and consultation, as required. The mission then prepares a loan proposal report and draws up a draft loan agreement for negotiation. After appraisal, the draft loan agreement and draft project proposal is submitted for review. Government is then called for negotiation with ADB. After negotiations with the government, the loan proposal is submitted to Board of Directors for Approval, through its Report and Recommendation of the President (RRP).
After Board approval, the document is sent to the borrowing country's Government for cabinet authorization following which the loan agreement is signed. The loan takes effect once certain conditions are met. The requirements and deadline for loan effectiveness are stipulated in the loan agreement.
ADB-assisted projects are implemented by the executing agency according to the agreed schedule and procedures as detailed out in the project administration memorandum. Implementation time generally ranges from two to five years but depends on the type and nature of the project. ADB's review missions assess the progress of project implementation by visiting it at least twice a year throughout the implementation period.
If a project has significant environmental or social issues, ADB will often require the borrower to submit regular monitoring reports, in addition to progress reports. Information on the project's implementation progress and status of development objectives and loan covenants is added to the project information document during this implementation phase.
For more information, refer to: Unpacking the ADB: A Guide to Understanding the Asian Development Bank
Commonly Used BOp Acronyms
TA: Technical Assistance
AOTA: Advisory and Operational Technical Assistance Loans
PPTA: Project Preparatory Technical Assistance
RETA: Regional Technical Assistance
EIA: Environmental Impact Assessment
IEE: Initial Environmental Examination
N: New Project
R: Revised (italic text indicates change from previous month)
ADB Environmental Categorization
Category “A” Projects: Projects having severe environmental impacts are categorized as “A”. An EIA is required.
Category “B” Projects: Projects having some adverse environmental impacts are categorized as “B”. An IEE is required in order to determine whether an EIA also needs to be done. If not, then the IEE is the final environment document.
Category “C” Projects: Projects havening no environmental impacts are categorized as “C”. No IEE or EIA is required but environmental considerations are still reviewed.
Category “F1” Projects: Projects involving a financial intermediary or equity investment are classified as “F1”. The financial intermediary will apply an environmental management system if environmental impacts are expected.
Current Business Opportunities for Bangladesh
Education /Technical, Vocational Training, & Skills Development
|
|
Project Name |
(N) Skills Development |
|
Project Type and ID |
LOAN: \BAN 39408-01 |
|
Executing Agency |
Ministry of Education |
|
Loan Amount (US$ million) |
50.00 |
|
Date of First Listing |
31 January 2008 |
|
Objectives and Scope |
Outcome: Strengthened capacity of the TVET system to provide market-responsive, short-term relevant skills training to more Bangladeshis, including those who have not completed Class VIII.
Output: Enhanced relevance and access of TVET programs, improved capacity for good quality TVET delivery, and increased delivery of relevant skill training, including to the poor, women and disadvantaged groups.
Impact: The Project's impact will be the increased engagement in wage- and self-employment of skills training graduates. The Project supports the Government's NPRS to reduce poverty and promote economic growth by providing market-relevant skills training to more Bangladeshis, including the poor and the disadvantaged. |
|
Environmental Assessment |
Category C |
|
Project Processing Stage |
SRC Completed : 30 January 2008 |
|
Project Officer |
Leah C. Gutierrez (632-4113), Operations Evaluation Division 1; lcgutierrez@adb.org |
Multisector
|
|
Project Name |
(N) Financial Management and Monitoring |
|
Project Type and ID |
AOTA: BAN 41657-01 |
|
Executing Agency |
Implementation Monitoring and Evaluation Division |
|
TA Amount (US$ ‘000) |
200.00 |
|
Date of First Listing |
23 January 2008 |
|
Objectives and Scope |
Impact: Contribute to quick restoration of economic activities in 51 districts for about 25 million people seriously affected by the floods and cyclone.
Outcome: Restore economic and social activities in flood and cyclone affected areas for about 25 million people, and reduce damage from subsequent floods and cyclones.
Output Part A: Quick-Disbursing Component. High unexpected expenditures by the Government for flood- and cyclone-related recovery and rehabilitation efforts are partially financed Part B: Rural Infrastructure. Rural infrastructure rehabilitated. Part C: Municipal Infrastructure. Rehabilitated municipal roads, drains, bridges, and culverts. Rehabilitated municipal footpaths, and drains in slums. Part D: Roads. Rehabilitated national, regional, and district roads and bridges. Part E: Water Resources. Rehabilitated flood control, drainage, and irrigation facilities. |
|
Environmental Assessment |
|
|
Project Processing Stage |
Approved by the Bank : 31 January 2008 |
|
Project Officer |
Stefan Ekelund (632-5512), Bangladesh Resident Mission; sekelund@adb.org |
Multisector
|
|
Project Name |
Public-Private Infrastructure Development Facility - PPIDF (linked to NSP 41928-01) [former Infrastructure Financing Devt Facility] |
|
Project Type and ID |
LOAN: BAN 40517-01 |
|
Executing Agency |
To be determined. |
|
Loan Amount (US$ million) |
185.00 |
|
Date of First Listing |
12 July 2007 |
|
Objectives and Scope |
One of the key constraints to economic growth in Bangladesh is its infrastructure deficiencies brought about by stagnant public investments which is largely attributable to the very low level of government revenue collection. Furthermore, Bangladesh, from a regional cooperation point of view, is not fully utilizing its potential in becoming a transport and transshipment hub for the sub-region and the inadequate infrastructure in place limit the country's opportunities for economic integration with its neighbors. Domestic private investment in infrastructure has been limited due to the dearth of long term financing for such investment. Despite the GoB's continuous effort to attract private sector investments, sufficient private commercial financing is not yet available because of various factors, including low rating of debt, a general perception of high cost of doing business in the country, and the absence of creditworthy public sector entities. The proposed Facility will help address these constraints by providing scarce long-term debt financing for private sector sponsored infrastructure projects. As per the lending policy of IDCOL, the proposed Facility will provide loans covering up to 40% of the project cost while the project sponsor will be required to invest a minimum of 20% of the total project cost as equity thereby achieving a better risk sharing between the project sponsor and the government via IDCOL. The proposed facility will therefore play a catalytic role in attracting other commercial funding sources in filling up the financing gap as commercial banks and domestic capital markets are currently not able to provide enough long-term project financing. The project will facilitate and catalyze public-private partnership (PPP) projects, mobilize private sector capital and expertise for infrastructure development, and ease the burden of infrastructure investment on the public sector budget of the GoB. The project will facilitate and catalyze public-private partnership (PPP) projects, mobilize private sector capital and expertise for infrastructure development, and ease the burden of infrastructure investment on the public sector budget of the GoB. |
|
Environmental Assessment |
Category FI |
|
Project Processing Stage |
Fact-Finding Mission Completed : 26 October 2007 |
|
Project Officer |
Peter Marro (632-5193), Governance, Finance and Trade Division, SARD; pmarro@adb.org |
Multisector
|
|
Project Name |
(R) Emergency Disaster Damage Rehabilitation (Sector) Project. |
|
Project Type and ID |
LOAN: BAN 41657-01 |
|
Executing Agency |
Ministry of Finance, Bangladesh Water Development Board, Local Government Engineering Department, Roads and Highways Department |
|
Loan Amount (US$ million) |
120.00 |
|
Date of First Listing |
26 November 2007 |
|
Objectives and Scope |
The objective of the Project is to contribute to sustainable economic growth by minimizing the devastating impact of the severe floods and cyclone, and reducing future risk from similar hazard events. The Project will focus on priority areas, identified through consultation with the Government, the private sector, nongovernmental organizations, and other civil society organizations; and involving community participation. The Project includes capacity building and training to strengthen the Government's disaster preparedness by adopting cost-effective flood-resistant infrastructure design standards and improved early warning systems through increased subregional cooperation. The Project comprises five parts. Part A: Quick-disbursing component, executed by the Finance Division, Ministry of Finance, will provide import financing for essential commodities and inputs particularly for agriculture needed to mitigate the adverse impact of the floods and cyclone and quick recovery particularly of the crop losses in affected areas. In accordance with ADB's Disaster and Emergency Assistance Policy, the quick-disbursing component will finance only essential imports identified for an effective flood recovery program. Part B: Rural infrastructure component, executed by the Local Government Engineering Department (LGED) will rehabilitate and restore rural infrastructure in 21 districts, including 2,300 km of rural roads and 7,000 m of bridges and culverts. Flood and cyclone shelters will be built or repaired and provided with sanitary facilities to help communities, especially the poor, during future floods. Part C: Municipal infrastructure component, executed by LGED will rehabilitate urban infrastructure, including roads, drains, bridge/culverts, and footpaths and drains located in 27 municipalities. The works includes approximately 540 km of roads, 50 km of drains, and 660 meters of bridge/culverts. Part D: Roads component, executed by the Roads and Highways Department (RHD) will rehabilitate part of the 1,420 km flood-damaged national, regional, and district roads and 115 bridges and culverts, within the country's seven road zones. Part E: Water resources component, executed by the Bangladesh Water Development Board (BWDB) will rehabilitate flood control, drainage, and irrigation facilities, repair embankment breaches, and repair or replace water control structures, protective works, and canals under 256 subprojects in eight zones. |
|
Environmental Assessment |
|
|
Project Processing Stage |
Approved by the Bank : 31 January 2008 |
|
Project Officer |
Stefan Ekelund (632-5512), Bangladesh Resident Mission, sekelund@adb.org |
The Bank Information Center (BIC) partners with civil society in developing and transition countries to influence the World Bank and other international financial institutions (IFIs) to promote social and economic justice and ecological sustainability. BIC is an independent, non-profit, non-governmental organization that advocates for the protection of rights, participation, transparency, and public accountability in the governance and operations of the World Bank, regional development banks, and IMF. For more information about BIC, see www.bicusa.org.
You have received this message because you requested email updates from
www.bicusa.org.
Click here to manage your newsletter subscriptions
Click here to unsubscribe