World Bank Document of The World Bank FOR OFFICLAL tSE ONLY Rept Nix P-6187-BDMNMORANDUM AND RECO...

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Documt of The World Bank FOR OFFICLAL tSE ONLY Rept Nix P-6187-BD MNMORANDUM AND RECOMMDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT IN AN AMOUNT EQUIVALENT TO US$200 MILLION TO THE PEOPLE'S REPUBLIC OF BANGLADESH FOR A JANDNA BRIDGE PROJECT JANUARY 24, 1994 MICROGRAPHICS Report No: P- 6187 BD Type: MOP This document has a restricted distribution and may be used by recipients only in the performance of their offcial duties. Its contents may not otherwise be disclosedwithout World Bankl authorization. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

Transcript of World Bank Document of The World Bank FOR OFFICLAL tSE ONLY Rept Nix P-6187-BDMNMORANDUM AND RECO...

Page 1: World Bank Document of The World Bank FOR OFFICLAL tSE ONLY Rept Nix P-6187-BDMNMORANDUM AND RECO MMDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE

Documt of

The World Bank

FOR OFFICLAL tSE ONLY

Rept Nix P-6187-BD

MNMORANDUM AND RECO MMDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL DEVELOPMENT ASSOCIATION

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED CREDIT

IN AN AMOUNT EQUIVALENT TO US$200 MILLION

TO THE PEOPLE'S REPUBLIC OF BANGLADESH

FOR A

JANDNA BRIDGE PROJECT

JANUARY 24, 1994

MICROGRAPHICS

Report No: P- 6187 BDType: MOP

This document has a restricted distribution and may be used by recipients only in the performance oftheir offcial duties. Its contents may not otherwise be disclosed without World Bankl authorization.

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Page 2: World Bank Document of The World Bank FOR OFFICLAL tSE ONLY Rept Nix P-6187-BDMNMORANDUM AND RECO MMDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE

CURRENCY- EQUIXVALENTS

(as of September 1993)

US$ 1.00 U TR 39.8Taka (Tk) 1.00 u US$ 0.0251

FISCAL YEA

July 1 to June 30

ABBREVIATIONS AND ACRONYMS

ADB - Asian Development BankBIWTA - Bangladesh Inland Water Transport AuthorityBIWTC - Bangladesh Inland Water Transport CorporationBR - Bangladesh RailwaysBTSS - Bangladesh Transport Sector Study Project (BGD/89/036)GOB - Government of BangladeshIca - International Competitive BiddinigIMSCT - lnter-Ministerial Steering Committee for TransportiwT - Inland Water TransportJmBA - Jamuna Multipurpose Bridge AuthorityLCB - Local Competitive BiddingNGO - Non-Govarnmental organizationo0C3 - Overseas Economic Cooperation FundPAP - Project Affected PersonRRJP-I - Road Rehabilitation and Maintenance Project (Cr. 1827-BD)RRMP-II - Second Road Rehabilitation and Maintenance ProjectSON - Statement of ExpenditureTA - Technical AssistanceUNDP - United Nations Development Program

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FOR OMCIAL USE ONLY

BANGLADESH

JAMUNA BRIDGE PROJECT

Credit and Proiect Summary

B3orrowers People'n Republic of Bangladesh

Bonefijiarys Jamuna Multipurpose Bridge Authority (JMBA)

Amount s SDR 143.6 million (US$200.0 million equivalent)

Team t Standard, with 40 years maturity

On-Lendinat Interest rate equivalent to IDA's service charge to GOB (0.75percent), 40 years maturity; on-lending rates for othercofinanciers/funds expected to equal their own terms to GOB.

Kixected Financing PlansLocal Foreian Total…--------US$ million----- I

IDA 30.35 169.65 200.00ADS 30.36 169.64 200.00OECF 30.36 169.64 200.00GOB 96.00 00.00 96.00

Total 187.07 508.93 696.00

Economic Rate of Return: About 15 percent.

Poverty Cateaorv: Not applicable

Staff Avoraisal ReDort: Report No. 12404-BD

Nats IBRD Nos. 25248 and 25249

This document has a restricted distibution and may be used by recipitents only in the perormanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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AD IA!IO Or THE PRElIDN TO0 TM INTBZRATONIL DILOPINU ASSOCIATON

TO TM SECUTXIV DIRECTORSON A PROPOSED CREDIT

TO TE PEOPLE'g REPUBLIC OF . GLADESEFOR A

aKA BIR0S PROJC

1. I submit for your approval the following memorandum andrecommendation on a proposed credit to the People's Republic of Bangladesh for143,600,000 SDR (equivalent to US$200.0 million) to help finance the JamunaBridge Project. The credit would be on IDA's standard terms with 40 years'maturity including 10 years of grace. The proceeds of the credit would be on-lent to the Jamuna Multipurpose Bridge Authority (JMBA) for 40 years,including 10 years of grace, at an interest rate of 3/4 percent per annum.GOB would bear the foreign exchange risk. The project is expected to becofinanced by the Asian Development Bank (ADB) (US$200.0 million) and theoverseas Economic Cooperation Fund (OECF) (US$200.0 million).

SECTOR BACKGROUND

2. Bangladesh's national transport system has been defined bygeography, climate and history. The extensive river systems, which accountfor 5-6 percent of the country's area, flow mainly in a north-south direction,with the largest river, the Jamuna, splitting the country approximately inhalf in terms of area and population. The S to 11 km wide, braided, turbulentJamuna shifts channels around new sandbanks evary season, has a depth of about50 m in its main channel, and is subject to annual flooding, scouring,erosion, siltation and wide variations in water-level, making it a formidablephysical barrier in the country's transport system which causes impediments inthe flow of goods and passengers between the Eastern and Western halves (withan average 36-hour waiting at the ferries for the more than 700 trucks thatcross the river daily) and also in the flow of power and, potentially, naturalgas from the east to the west.

3. The current transport system consists of a road network of about13,000 km of paved roads and over 150,000 km of unpaved roads (much of whichis not all-weather), served by a predominantly private road transportindustry; the government-owned railway with 2,792 km of track; and anextensive, resilient and relatively efficient inland water transport systemdominated by private carriers. Rural access and agriculture productivity areconstrained by the poor quality of rural feeder roads. The country's seabornecommerce is handled through the two deep water ports at Mongla and Chittagong.There is a small but growing civil aviation subsector.

4. Mdal Shares. The country being extremely flat and low-lying, allthree modes of surface transport -- road, railway and inland water transport(IWT) -- play significant roles in both passenger and cargo transport. Thetransport modes' relative roles are evolving, with road transport expanding atthe expense of the railways and IW. Passenger traffic has in-reased from 17billion pass-km in 1975 to an estimated 61 billion in 1991, while the modalshares changed during this period from 54 percent to 69 percent for road, from16 percent to 15 percent for lET, and from 30 percent to 16 percent for rail.Freight traffic also has increased from 2.6 billion ton-km in 1975 to 7.0 in1991, while the modal split changed during the period from 35 percent to 59percent for road, from 37 percent to 30 percent for IWT, and from 28 percentto 11 percent for rail.

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5. Road transport is the most dynamic area of transport development.The paved road network has expanded from a mere 600 km in 1947 to around12,000 km in 1990. The shore of road transport in the higher valuecommodities, particularly those whose distribution is not controlled by theGovernment, has been increasing at the expense of the railways. The primaryreasons for the success of road transport have been improvements in the roadnetwork and the better quality of service provided by the largely privatetrucking industry. However, road transport development is likely to beconstrained by the high cost of developing and maintaining an extensivehighway network. The numerous and shifting river courses, periodic floodingand lack of construction materials result in high investment costs forpermanent river crossings and embankments, as well as high operating costs dueto the need for ferries and long delays at ferry crossings. Government hasundertaken several measures/projects to improve planning for road investments,rehabilitate critical road sections, promote a rational maintenance strategy,and rehabilitate/improve rural roads and markets.

6. Inland waterways are an important component of Bangladesh'stransport system in view of the extensive waterway network available and thefloods which regularly affect the country and disrupt the other two surfacetransport modes. Most of the inland waterway traffic is carried by theprivate sector. The inland waterway navigable network comprise over 8,300 kmof waterways during the monsoon season (July through September); this reducesto about 5,200 km during the dry season (November through April). Thisnetwork of waterways carries about a third of the total freight tonnage and asignificant proportion of the passengers. However, the navigable network isshrinking over time due to both siltation and reduction in the amount ofwater available during the dry season. The inland waterways system includessome eight major ports and over 100 lesser ports. These ports are impaired byinadequate facilities for mooring and unloading vessels, lack of storagefacilities, and siltation in approach channels. The problems are compoundedby the unpredictable nature of the rivers which often change course, erodeembankments and in general pose risks for investments in fixed riverfrontinfrastructure. There are two parastatal agencies in the sectors theBangladesh Inland Water Transport Authority (BIWTA) which manages the inlandwater ports and maintains the waterways, and the Bangladesh Inland WaterTransport Corporation (BIWTC) which runs some inland water transport servicesand the main ferries. Projects for improving the river drafts and river frontfacilities and to improve the operational efficiency of the two parastatalagencies in the sector are under implementation with IDA and other donorsupport.

7. The main ferry services for road traffic vehicles on the proposedJamuna Bridge corridor (connecting Bast to Northwest) are on the Aricha-Nagarbari route (A-N), 22 kms; and on the Shuapur-Sirajganj route (B-S), 18kms, both operated by the BIWTC. The Aricha-Daulatdia ferry, run by BIWTC,connects the Bast to the Southwest, and traffic on this route will not besignificantly affected by the proposed bridge. The Bangladesh Railways'ferries carry about 25 percent of the freight and 10 percent of the totalpassengers across the Jawuna, and the barges transport about 20 percent of thetotal freight traffic. Even though launches carry a significant portion ofthe passenger traffic, their services are offered mainly on the East-Southwestcrossings (Aricha-Daulatdia). The road traffic ferries run by the BICTO arethe main means (as they have the largest traffic share, and are the fastest-growing) for carrying goods and passengers across the Jamuna, and on the East-Northwest route taken alone. Rail traffic faces an average waiting time of 15days at the rail ferries, and road freight traffic faces about 36 hourswaiting on the East-Northwest route. All modes of the cross-river traffic

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face major constraints arising from the natural features of the Jamuna river(see para. 2) and operational problems.

8. Bangladesh Railwayv (BR) operates a network of around 2,800 routekm of which some 900 route km are broad gauge located in the western part ofthe country (to the west of Jamuna). The remainder of the network is metergauge of which 440 km. is in the western part. In addition to this mix ofgauges, which contributes to high operating costs, the rail network suffersfrom the difficulties of the Jamuna ferry crossings (at Bahadurabad andJagannathganj), system closures due to floods and labor problems. Dueprimarily to weak management, and increasing competition from other modes,traffic on the railways declined substantially during the 1980's, from 90million passengers and about 3.0 million tons of freight in 1981 to under 70million passengers and about 2.4 million tons of freight in 1990. The mostimportant issue at present with regard to BR is its large revenue deficitsresulting in high levels of direct and indirect subsidies provided by theGovernment; OR revenues currently cover lees than 70 percent of its operatingcosts. With efficient operations and adequate cost recovery, the railwaycould have an important role in the country's transport system, particularlyfor long distance traffic. With considerable donor support, the Governmenthas recently undertaken programs to improve railway efficiency and to reducethe current level of subsidies through staff reductions and other measures;under an ongoing Railway Recovery Program, these measures are being pursuedvigorously by BR with good progress in tariff increase and staff reduction in1993 (see para. 17).

9. Seaorts serving Bangladesh are Chittagong in the east and Monglain the west. Chittagong accounts for about 80 percent of foreign trademovements which is of the order of 10 million tons per year. The mostcritical problem affecting efficiency in the port sector is difficulty facedby Mongla port in maintaining its approach channel, due to high siltation.Government has initiated preparation for a port systems development study todetermine future needs in optimal port development and improvements.

10. The Transport Sector Review completed by IDA in June 1991 concludedthat: (a) Bangladesh witnessed rapid growth in transport demand, much abovethe GDP growth rates during 1975-89, but still the country's "transportintensity" (in terms of passenger-km per capita and freight ton-km/USS of GDP)remains less than half of neighboring India and Thailand; (b) future transportdemand is likely to grow considerably faster than the economy in general, andthat freight demand in particular should expand substantially faster than GDPas the economy moves from subsistence level to a more market-oriented basis.Based on transport demand elasticities observed in the 1980s, it was estimatedthat, if the GDP continued to grow at 3.5 percent per annum in the 199Os (asin the 1980s), passenger traffic and freight traffic would grow at about 5.3percent and 5.2 percent, respectively, with road traffic growing at a higherrate of around 9 percent (as in the 1980's); (c) the role of each surfacetransport mode in the supply of transport services will depend on a number ofpossible scenarios. Through a network model for the main transport system,key results indicate that the railway would remain competitive in the long-distance passenger transport market, and the road network share would notexceed 60-65 percent of the traffic, mainly due to the many river crossings;and (c) the recommended development strategy is to focus on the arterialcorridors, the main corridor being Chittagong-Dhaka-Northwest, whichemphasizes the need for the proposed Jamuna bridge.

11. IDA Country and Sector Assistance Strateav. IDA's countryassistance strategy (presented to the Board in October 1992) reflects the

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approach suggested in the 1990 World Development Report (WDR) and isconslstent with the Government of Bangladesh's (OOB) overriding developmentobjectives of poverty alleviation. The WDR approach consists of broadly basedlabor-intensive economic growth to generate efficient income-earningopportunities for the poor and investment in human resource development toenable the poor to take advantage of these opportunities. A safety net is tobe added to assist the most vulnerable groups in society. The specific goalsof the strategy are: first, to raise the quality of public sector managementand increase savings and investment; second, to foster private-sector-ledgrowth both in agriculture but more especially in manufacturing; third, toimprove infrastructure and disaster mitigation; and, fourth, to improve theaccess of the poor to education, health services and family planning. IDA'soverall objectives in the Bangladesh tranaport sector are to promote thedevelopment of an efficient and cost-effective system by supporting key policyreforms, rationalization and prioritization of sectoral planning andexpenditure programming, and strengthening of specific institutions.Improving Infrastructure, including implementation of the proposed JamunaBridge Project, is one of four key elements of IDA's country assistancestrategy for Bangladesh.

12. Infrastructre Strateov. GOB strategy, which is supported by IDA,emphasizes investments in physical and human infrastructure as essentialenabling conditions for private investment. Improved transport infrastructurewill enable Bangladesh to exploit the strong linkages between povertyalleviation, private sector development and the provision of supporting infra-structure. The next phase of private-sector agricultural development willrequire improved access to inputs and markets to support further intensifica-tion and crop diversification. Investments in rural infrastructure, andremoval of major inter-regional transport barriers, are a prerequisite for thedevelopment of agro-industries, off-farm employment and exports.

13. The GOB's Fourth Five Year Plan (PFYP/FY91-95) endorses thisstrategy and recognizes transport's critical role in improving the delivery ofessential services, and enabling efficient public and private investments inother sectors in support of the country's economic development. GOB's statedobjectives for transport in the FFYP are far-reaching--complete ongoingprojects, maximize utilization of the existing transport network, improveaccess to rural areas, ensure economic modal split through appropriate pricingpolicies, encourage fuel economy, improve passenger safety and comfort throughbetter maintenance and regulations, and encourage increased privateparticipation in the INT and road sub-sectors. The FFYP places particularemphasis on economic justification of projects and a balanced development ofthe overall transport network.

14. Investment Prioritization. Within the broad framework of the FiveYear Plan, GOB has made reasonably good progress in setting investmentpriorities in its three-year rolling priority investment program (PIP) whichis reviewed on an annual basis with IDA and other donors (under the Resourcemanagement Adjustment Project, supported by IDA). IDA and other donorssupport the sector priorities although growth is constrained by GOB's capacityto plan and implement projects. Transport sector planning capability is beingstrengthened under the Bangladesh Transport Sector Study (BTSS) Project (seepara. 17 below).

15. Regional Integration and Poverty Alleviation. The proposed JamunaBridge Project, which will provide the first direct permanent all-weathertransport link between the Northwest and eastern parts of the country, is anintegral part of the above strategy of poverty alleviation, and is given high

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priority in the FFYP. The Project will have important indirect benefits forthe poor, by ending the relative isolation of the agriculturally fertileNorthwest inhabited by about 27 million people. The nortLwest is a highlyfertile region producing marketable surpluses in cereals, vegetables andfruits, poultry, dairy farming, and industrial raw-materials with goodpotential for economic growth. Crossing the Jamuna river is the majorbottleneck in this corridor. By reducing transportation costs and improvirgtransport access to the large markets to the east of the Jamuna, the bridgewould stimulate eonomic growth in the Northwest which is now relativelyisolated from the mainstream of national life; it will reduce transport costsand crop damage in transit and increase profits easd incomes of farmeras it.will particularly assist in the growth of the small scale and informalsectors, from which poor families would benefit. Furthenmore, the bridgewould facilitate the provision of transport and other public services, such aseducation, health and disaster relief, in the Northwest. In fixing tolls,efforts will be made to leave with the poor in the informal sector and withthe private sector in general substantial economic surpluses created by theproject by fixing a relatively low toll rate, so as to provide incentives forincreasing productive economic activities which can benefit from the bridge(see para. 31 below), thus maximizing the economic impact of the bridge.

16. Sector Issues. GOB and IDA undertook a major transport sectorreview in 1991, partly funded under a United Nations Development Program(UNDP) project, the Bangladesh Transport Sector Study (BTSS), executed by IDA.The review identified policy and Institutional issues and formulated actionplans and investment priorities. The BTSS project is continuing to providesupport for follow-up actions and training to enhance the Planning CommissionInfrastructure Division's transport planning and policy analysis capabilities,while also preparing an updated study.

17. The IDA report on the above review, the Bangladesh Transport SectorReview, Report No. 9414-BD (1991), highlighted the following main sectoralissues; progres in resolving them is discussed below: (a) Lack ofcoordination in sector olannina: The solution proposed was to set up anInterministerial Steering Committee on Transport (IMSCT), which was to bemandated to prioritize sectoral investments through an active role inpreparing annual development plans and three-year rolling plans. IMSCT wasset up in 1992, but its mandate is limited to coordination of the ongoing BTSSwhich will preparo a long-term sectoral strategy. In the mean time, inter-ministerial coordination in the preparation of annual and three-year plans hasimproved under the auspices of the Planning Commission, which makes a similarrole for IMSCT redundant; (b) Arb_trary allocation of the larae volume ofGovernment account cargo: The report recommended introduction of acompetitive tendering system. The major commodities involved are fertilizersand foodgrains. Since 1992 the Government has fully privatized fertilizerdistribution. Government's role continues only in the distribution of food-grains related to disaster relief and public food distribution system; of thisabout S0 percent is allocated to private sector road and IWT operators througha tendering process; (c) Regulation in nassen-er transnort markets: As afirst phase in bringing about full deregulation, the report recommendedderegulating tariffs and route licensing for better quality (seat reserved)bus services; this has already been done by GOB. Effectively, all long-distance scheduled bus services (except the limited Government run services)are now free from tariff regulation; (d) Railway reforms to address the larasdeficit incurred by BR and to imnrove efficiencys GOB has begun to implementkey elements of a Rail Recovery Program, formulated with donor assistance,aimed at restoring BR's financial viability and creating a corporateenvironment which will enable rail to compete with other transport modes in

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cost and quality of service in the present market. Action has been Lnitiatedon several fronts, including a 14 percent tariff increase in FY93, a reductionof some 8,300 staff (out of SS,000) by end-FY93 through voluntary separationand attritioa with further reductions planned in FY94, introduction by 003 ofa public service obligation plan for BR, closing of two branch liner and

elimiation of 40 daily passenger trains. During 1993 there was good progress

in achieving these targets, and the momentum of reforms is continuing; (a)Hiah imoogrt duties on vehicle gsars nars -affecting oroger maintenance of

vehicleg: GOB has reduced duty levels in successive budgets; and (f)

Imorovlna coot recovery in the road transoort sector: Recent reviews Indicatethat the overall level of cost recovery is adequate.

18. IPA's Past and On-aoina onerations. IDA's involvement in thetransport sector to date has included four lending operations for roads, three

for inland water, one for ports and several multi-sectoral operations (e.g.,

rural development, fertilizer transport, and cyc:one and flood

rehabilitation). Of these, three operations are ongoing: Road Rehabilitation

and Maintenance (RRMP-I/Cr. 1827-3D), Rural Roads and Markets Improvement and

Maintenance (RRMIMP-I/Cr. 1940-BD) and Third Inland Water Transport (CR. 2232-SD). IDA has also been executing agency for the UNDP-funded preparation ofthe Jamuna Multipurpose Bridge Project and for the BTSS. Performance ofrecent transport projects has been uneven, but satisfactory overall. The portproject was completed in FY92, after about five years deLay due to

implementation problems and cyclone impact, and was successful'in completing

critically needed port facilities with a high economic return. The two road

projects are proceeding satisfactorily; the recent inland water transportproject faced serious start-up problems due to delays in initiating measuresfor institutional reforms, and was under suspension, but these problems have

been resolved and the suspension has been lifted. In addition to the Jamuna

Bridge Project, proposed new projects under preparation include the SecondRoad Rehabilitation and Maintenance Project (RPMP-2), Second Rural Roads and

Market Improvement Project, a Port System Development Project and an UrbanTransport Project. All these conform to priorities establlshed under theBTSS.

19. Rationale for IDA's Involvement in the Project. In 1976, GOB

requested IDA to take the lead in organizing the economic and technical

studies required to prepare the project and coordinating cofinancing. Since

that date IDA has played the lead role in the project preparation studies as

executing agency for the UNDP-funded project feasibility, design and other

studies. There is a three fold rationale for IDA financing of the proposed

Jamuna bridge: (a) as lead donor in Bangladesh, and with considerable

experience in the transport sector, IDA's participation has facilitated

arriving at the appropriate project design and in organizing cofinancing

expeditiously; (b) IDA's experience as lead donor during execution would

ensure proper coordination of implementation of the different components; and

(c) IDA's support of this project would advance its transport sector strategywhich emphasizes efficient development of the main transport corridor (see

para. 10), and its dialogue with G08 on transport sector issues and questionsof investment strategy. IDA's involvement in this project will furthercomplement and strengthen its ongoing efforts in improving main roads, ruralinfrastructure and markets in the Northwest through the ongoing road projects.

The Mioegt,

20. Proiect Obiectives. Through the construction and institutionalized

maintenance and operation of the Jamuna Bridge, the project aims to achievethe strategic objective of connecting the east and west parts of the country

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eparated by the Jamuna River, thus stimulating economic growth byfacilitating inter-regional, cross-river transport of passengers, freight andtransmission of electricity more economically and efficiently. The projectwould also facilitate the future transmission of natural gas andtelecommunications between the east and west in a cost-effective manner, aswell as a meter gauge railway connection.

21. Zrciesct Deserintion and FLnancing plan. The proposed projectconsists of: (a) construction of a bridge about 4.8 kms long, 18.S m wide tocarry initially 4 lanes with sidewalks, with foundation adequate to carry ameter gauge railway in the future. The bridge would also be capable ofsupporting an electric interconnector, a gas pipeline and telecommunicatlonsfacilitles; (b) construction of two viaducts, about 128 m each, connecting thebridge to the approach roads; (c) construction of two guide bunds, about 2.2km each and a flood protection bund on the east bank to regulate the river atthe chosen site; (d) construction of two approach roads over embankmentstabout 16 kms on the east and 14 kms on the west. The approach roads would besingle carriageway two-way roads with paved margins with provision for futurewidening. Embankments would be formed of dredged or local borrow materlal;(a) measures to mitigate the project's impacts on the environment described inthe Environmental Action Plan, including fisheries development, wild lifeprotection, land use plan implementation and monitoring of the environment;(f) implementing and monitoring the Resettlement Action Plan (RAP) preparedaccording to the guidelines of the financing institutions and agreed withthem; and (g) technical assistance and training which would include projectmanagement, construction supervision, institution building, and training ofN4BA staff in operations and maintenance. The project cost, based on actualbid prices, is estimated at US$696.0 million with a foreign exchange componentof about US$508.9 million equivalent (73%); the cost estimate excludes taxesas GOB has exempted the project from duties and taxes. Financing is expectedto be provided by IDA, Asian Development Bank (ADS), and the Overseas EconomicCooperation Fund (OECF) to an amount of US$200.0 million equivalent each,based on joint-financing arrangements; the balance will be funded by GOB. Abreakdown of costs and the financing plan is shown in Schedule A. Amounts andmethods of procurement and of disbursements, and the disbursement schedule,are shown in Schedule B. A timetable of key project processing events and thestatus of Bank group operations in Bangladesh are given in Schedule C and D,respectively. MOP No. P-6187-BD and SAR No. 12404-BD dated January 24, 1994are being distributed separately.

22. Proiect Imlementati2n and Sustai,.ability. The project will beimplemented by JMBA which is an autonomous authority established in 1985 bythe Jamuna Multipurpose Bridge Authority Ordinance (JMBA Ordinance) under theMinistry of Communications. After completion, GOB has agreed that JMBA willbe responsible for operation and maintenance of the project and the JMBAordinance will be amended as necessary. This was confirmed duringnegotiations. Technical assistance (TA) includes provision for training thestaff of JMBA. GOB has also agreed to enact legislation that would preventany construction activities close to the bridge that may affect its safetywithout clearance from JMBA. The area affected is from Sirajganj and Bhuapurto two km8 south of the bridge site.

23. The project is at an advanced stage of readiness, including receiptof bids for all contracts. Bids were invited under International CompetitiveBidding on September 1, 1992, after prequalification of contractors. The bidsare under evaluation. The project preparation has been completed withcontinuous monitoring by an international Panel of Experts (POE), whichincludes experts in bridges, river engineering and construction management.

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The POg will continue to play this role until the Implementation of theproject is completed.

24. Project construction is expected to be completed by June 30, 2998.Project construction, particularly of the guide bunds, would be speded up ifriuroactive financing is provided for the guide bund construction contract.It is, therefore, proposed that mince the appraisal of the project inSeptember 1993, an amount of up to 10 percent of the credit amount incurredfor mobilisation expenditures under contract 2 be retroactively financed.

25. To assure project sustainability, the respective contractors wouldmaintain the bridge and the guide bunds for the guarantee period. The rivertraining contract will include maintenance of the guide bunds for 6 yearsafter the completion of the project. The contract will provide for extendingthis maintenance period by an additional 5 years (11 years in total) ifrequired. The bridge contractor will supply the equipment required formaintenance and train JMBA staff on how to use it as part of his contract.

26. Project construction will be supervised by Construction SupervisionConsultants. Also, Management Consultants will be recruited to assist JZ4BA inits role as Owner. During the 1990 pre-appraisal, it was agreed that thepresent bridge design consultants would be retained for constructiopsupervision. This has been reconfirmed by GOB and the cofinanciers. A shortlist of management consultants has been chyen by GOB and proposals have beeninvited. The bridge, after construction, will be maintained and sustained byJMBA, which will have adequate technical staff and also funds raised fromtolls and other user charges aufficient to meet all future maintenance andrehabilitation needs and debt-service obligations on account of bridgeconstruction.

27. For ensuring effective project supervision and coordination by thecofinancing agencies, the following arrangements are envisaged: IDA will actas lead agency; disbursements will be made by each agency on previously agreedpercentages after rDA reviews and clears withdrawal requests. For projectmonitoring, there will be a Project Coordinator (Consultant) who will reviewprogress on a continuous basis in Dhaka and report to the cofinanciers throughthe lead agency; there will be a Monitoring Committee in Dhaka to oversee theproject, consisting of a senior representative from the resident mission ofeach financing agency, with the PC acting as its secretary; there will befrequent supervision missions by Headquarters staff, and, review meetings atDirector-level of the three funding agencies, annually or as needed, to dealwith strategic issues of the project that would need management decisions. Amemorandum of understanding by cofinanciers, reflecting the abovearrangements, is under review and would be signed following the formalapproval of the loans/credit by the three agencies.

28. Actions Aareed. During negotiations agreement was reached with GOBthat it would:

(a) use the BTSS study results in formulating its transport investmentplans;

(b) amend the JMBA ordinance to empower JMBA to operate and maintainthe bridge, col0act tolls, and implement land use at the Bridge EndFacilities;

{c) ensure that JMBA will maintain qualified and effective managementduring project implementation and subsequent operation and

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maintenance of the project; and review with the ccfinanciers, by nolater thaa December 31, 1995, arrangements for training JMBA staffin readiness for the commencement of the bridge operations;

(d) establish, before the start of the river training work for theProject, an emergency fund of $10.0 million equivalent to meetunforeseen force majeure;

(a) take the necessary legislative or regulatory measures to ensurethat JNBA is empowered to control construction activity in thevicinity of the bridge that might interfere with construction,operation or maintenance of the bridge or thereafter the safety ofpersons employed on the project or using the project facilities;

(f) retain the services of the POE and ensure that they supervise theproject at least bi-annually starting from date of effectiveness;

(g) appoint auditors satisfactory to IDA and submit to IDA not laterthan six months after the end of each fiscal year the auditedaccounts for the project expenditures, including the SpecialAccount and Statements of Expenditure (SONE), with a separateopinion on the SOzs;

(h) ensure the financial viability of JMBA by:

(i) providing auch local funds as are necessary to reomplete theproject, and to provide JMBA with adequate initial workingcapital to enable it to effectively assume the operation andmaintenance of the bridge on its completion;

(Li) on-lending the proceeds of IDA credit to JMBA on the same termsand conditions as those applicable to GOB, except thats (a) G08will bear all foreign exchange risks, and the service chargedue on IDA credit during construction of the project; and (b)interest payments due from JMBA in the first 10 years afterbridge opening can be partly capitalized for payment by JMBA inlater years so as to keep bridge tolls in the initial yearslow; and

(iii) keeping the bridge tolls in the initial years below the Aricha-Nagarbari ferry tariff; the on-lending rate may be increased upto 2 percent in consultation with IDA if the studies under (i)below justified such increase; and further review and, ifappropriate, increase the on-lending rate every five yearsafter bridge opening in the light of traffic increase andrevenue from other users; and

(i) by December 1996 complete a study in accordance with appropriatemethodology and terms of reference, satisfactory to theAssociation, on the level and structure of tolls and other usercharges to be levied on the bridge and on JMBA's future financialpolicies; and by June 1997 propose to the Association for itsapprovals iL) the level and structure of such tolls and charges tobe sufficient to ensure that total revenues shall be equLvalent tonot less than total operating expenses and the amount by which debtservice requirements exceed the provision for depreciation, withflexibility for delayed interest payments (capitalized) in initialyears; and (ii) JMBA's future financial policies.

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29. Agreement was reached with GOB that, as conditions of effectiveness(estimated by end of February 1994), it would:

(a) ensure that at least 50 percent of the PAPs who have to vacatetheir homesteads by April 1, 1994, have completed the purchase ofreplacement homestead land using the mechanisms outlined in theRRAPt

(b) sign the construction supervision and management contractsl and

(c) take all actions required for implementing or causing to beimplemented the Resettlement Action Plan and the EnvironmentalAction Plan.

30. C2oss-effectiveness: Agreement was also reached that an additionalcondition of credit effectiveness would be that all conditions precedent tothe effectiveness of the ADS Loan Ag'- ment and OECF Loan Agreement forfinancing this project have been fulxilled, other than those relating to theeffectiveness of the IDA Credit Agreement.

31. Justification: The proposed multipurpose bridge would generatemultifaceted benefits to the country. Since the Jamuna river constitutes amajor physical barrier dividing the country into two halves, and since thereare considerable delays and costs in crossing the river, the bridge would be astrategic link integrating the country and promoting better inter-regionaltrade, and economic and social development. It will end the relativeisolation of the Northwest region of the country with 27 million people andvast potential for growth. It will enable freight and passenger traffic byroad and, in the future, by rail crossing the Jamuna River; it will also allowtrans-Jamuna transmission of electricity, transfer of natural gas from theeast to the west, and telecommunication links. It will have a major impact onreducing poverty by boosting the viability and profitability of the small-scale informal sector in the Northwest, and by increasing profitability oflabor-intensive horticulture expansion in the Northwest through reducedtransportation uncertainties, delays and costs. The bridge is designed for alife of about 100 years, and therefore over a long period it will bring aboutstructural changes in the economy through creation of a more efficienttransportation and communication system. Though slow in coming, itsmultiplier effects will be long lasting. All of these benefits to theeconomy, however, are difficult to quantify. Based on quantified partialbenefits, the project produces an MER of 14.5 percent in the base case;sensitivity analysis shows that a combination of 20 percent increase in costsand 20 percent reduction in benefits will still yield on ERR of 11.8 percent,in addition to major unquantifiable benefits.

32. In financial terms, the tolls will be kept relatively low, slightlyleos than the present ferry tariff in order to encourage new traffic from neweconomic activities. The lumpy nature of the bridge investment will createconsiderable surplus capacity in the initial 10-15 years which can be utilizedat very low marginal costs by new traffic, thus maximizing economic benefits.This will also allow part of the economic surpluses created by the project tobe left with the private sector as incentives for increased economicproduction. It has, however, been agreed with JMBA that the level of tollsand other user charges will be such that they will allow JMBA to meet alloperations, maintenance and rehabilitation costs, and repay loans at theoriginal concessional terms given to GOB with foreign exchange risks borne byGOB. The bridge tariff needed to meet these objectives is not low in absoluteterms - for example, about 650 Taka (about US$16) per transit each way for a

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truck or bus, though the current ferry tariff is even higher and in additionincurs heavy waiting costs for the ferry. A higher tariff on the bridge willreduce potential economic benefits (from induced traffic due to the project,particularly the benefits to the poor by discouraging new economic activitiesin the informal and small-scale sector which would feasible at a lower II -elof transport costs).

33. Praiect-Rss sX As noted below, this project entails significantrisks which includes technical risks; implementation risks; and maintenancerisks.

34. Technical Risks. Technical risks are numerous and have beenaddressed as much as possible through the project designs. The bridge isdesigned using innovative offshore drilling techniques. The risk ofstructural failure of the bridge is, however, considered negligible. Themaximum probable earthquake damage during construction beyond the designparameters is estimated at $10.0 million. The river training works aredesigned using the latest river engineering techniques. However, there is arisk of liquefaction of part of the guide bunds through earthquakes beyond thedesign parameters; because it would be localized, such damage could becontained and repaired (estimated as about $30.0 million based on probabilityanalysis). GOB has guaranteed coverage of such risks from its own resources,and will set up a US$10.0 million equivalent trust fund to meet suchemergencies. Concern has been expressed about the stability of the futureriver course and whether the planned river training works would be enough tocontain any shifting in the river course. All the studies, test and designsthat were carried out by the consultants and reviewed by an internationalPanel of Experts indicate that the guide bunds as designed should, with highprobability, be able to prevent shifting of the river under the design floods.Even if a major change of the Jamuna river were to occur, it would occur overan extended period during which remedial action could be taken, and given themany other investments which would be placed at risk by a major change, itwould be reasonable to assume that appropriate remedial action would be taken.

35. Imolementation Risks. The main implementation risks are delay ofthe project execution through: (a) physical risks such as natural disasters,(b) procedural risks, and (c) cost overruns. Nothing can be done aboutnatural disasters except to be prepared to reduce their effects as much aspossible. Procedural risks would be addressed by: (i) GOB agreeing toestablish a special account, for both foreign and local disbursements, fromwhich disbursements would be authorized upon the engineer's signature, (ii)having a management consultant to advise JMBA as the client for constructionpurposes, (iii) reaching agreement with GOB to enhance the powers andauthority of JNBA to be able to cope with the daily issues, and (iv) design ofthe resettlement action plan with community participation and the closemonitoring of the implementation of the plan. As already stated the risk ofcost overruns, which would be mainly due to natural disasters, has beenquantified, based on probability analysis, to be between US$10 million andUS$30 million; the GOB has guaranteed its coverage from its own resources. AUS$10 million equivalent trust fund will be established by GOB to meet suchemergency expenditures.

36. Maintenance Risk. The main risk is the capability of JMBA tooperate and mairtain the bridge, river training, and the road approaches aftertheir construction. To reduce this risk, agreement would be sought from GOBtot (a) include the maintenance of the guide bunds, which is very critical tothe bridge's safety, in the contract agreement for at least six years after

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completion of the bunds and (b) contract the management consultants to trainJMBA staff on the operation and maintenance of the bridge and its approaches.

Environmen and Resettemenit

37. xnvironment. A series of separate and successive studies on theenvironmental aspects-of the Jamuna Bridge Project have been undertaken duringproject preparation. These studies, constitute a comprehensive assessment ofthe environmental impacts that may arise during the construction, operationand maintenance phases of the bridge. These studies were supervised by anEnvironmental Management Committee (see para. 40 below). It is apparent thatseveral key positive and negative impacts will arise from the project.Positive impacts include, inter alia: (a) increased opportunities for -employment (both long and short term) in a rural area of underemployment; (b)opportunities to diversify income generating activities; and (c) improvedflooding characteristics on the eastern bank which will offer opportunities toincrease agricultural production. Negative impacts which are likely to arisemainly due to closure of the Dhaleswari River northern intake includes (i)reduction in fish production (500 tons annually) due to a reduction inavailable fish habitat; (ii) increased erosion of rain-cropped agriculturalland due to overbank spill from the Jamuna to the upper Dhalaswari riverbasin; and (iii) disruption to navigation activities in the Dhaleswari whichvill increase journey times on existing routes. During the constructionphase, it is also likely that there will be some disturbance to roosting andbreeding of birds which inhabit the project area.

38. In order to maximize project positive impacts and prevent ormitigate negative impacts, the JMBA will implement the Environmental ActionPlan (ZAP) which has been prepared in consultation with the appraisal mission.A summary of the Environmental Impact Assessment was circulated to the Boardon August 26, 1993.

39. The ZAP includes, inter alia, the following key impact managing,benefit enhancing and monitoring measurers

- A compensatory fisheries development program which comprises pond fishculture, training and fisheries management. These measures are expectedto yield 500 tons of fish per annum offsetting fisheries losses due tothe project;

- Environmental guidelines for construction-related activities will beprepared by the management consultants by May 31, 1994, to minimize orprevent adverse human health and ecology impacts due to pollution, noiseand wild life disturbance;

- A wild life action plan will continue the inventory of the fauna of theproject area, monitor and mitigate project impact, increaseenvironmental awareness and possibly lead to the establishment ofreserve areas for the bird population;

- A Land Use Master Plan and Bridge End Land Use Plan will give rise toenvironmentally acceptable economic and urban development associatedwith the bridgel

- xMonitoring of groundwater levels in the eastern area of the bridge witha standby action plan sbould adverse situations arise; and

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- Technical assistance to Project Affected Persons (PAP) where and whenappropriate to: (1) adjust cropping patterns in relation to the modifledflooding regime; (Ui) enhance fisheries production in the Rffected areat(iii) provide practical advice on deep-setting of shallow tube wells.

40. The JMBA will establish an gavironmental Unit which will beresponsible for the implemantation of the above measures by March 31, 1994.The unit will be supervised and guided by the existing EnvironmentalManagement Committes (camprised of government officials, academics and Won-Governrmntal organization (NGOS)) which will continue to function for at leastthree years after bridge construction is completed. JMBA will establish aframework for the RAP to be executed with the active involvement of theEnvironmental Unit, Management Committee, Supervision and ManagementConsultants and construction contractors.

41. it is essential that the Land Use Master Plan and the Bridge EndLand Use Plan are adhered to and that illegal development is strictlycontrolled and monitored. Detailed Land Use and Bridge End plans, and theWildlife and Fisheries Plans, are in the Project File.

42 Resettlemnt and Rehabilitation. Construction of the 4.8 km longbridge itself wiil not entail any land acquisition or resettlement.construction of two guide bunds, a hard point, and approach roads on the eastand west banks of the Jamuna river will, however, lead to land acquisition andresettlement in the districts of Tangail and Sirajganj. As the ecologicalconditions in the river have been changing, the exact location of each of theguide bunds can only be finalized between April and October of the year ofconstruction. For the first construction season to begin in October 1994,approximately 95S hectares of land in the Tangail district on the east bankwill have to be handed over the contractor. Taking possession of these 850hectares will lead to the resettlement of approximately 17,000 persons.

43. The Bangladesh Rural Advancement Committee (BRAC), an NCO, carriedout a socio-economic survey of the affected people in the two districts fromOctober 17 to December 27, 1992. The survey covered the majority of the areasto be affected; but, due to uncertainty regarding design of some components ofthe project or the refusal of people to cooperate, all the people in theaffected area could not be surveyed. The identified number of affectedpersons, according to the survey, is 11,945 households or, on the basis of 6.4persons per household, 77,220 persons. when the design of all components ofthe project is finalized, the total number of affected persons will be higher.

44. The BRAC survey was framed according to a resettlement policymatrix that divides the project affected persons into 11 categories. Thesurvey revealed that 39,000 persons (6,039 households) will lose land and/orproperties to the Jamuna Multipurpose Bridge Authority; another 37,800 persons(5,906 households), dependent on the area to be acquired for making theirliving, will also be affected. Of the non-landowning persons, 42 percent arefarm workers.

45* In accordance with IDA resettlement requirements, IDA and GOB haveagreed that the standards of living of project affected persons should beimproved or, at least, maintained after resettlement. Accordingly, a revisedresettlement action plan (RRAP) was prepared and agreed to. In the RRAP, GOBagreed to increase its cash compensation for the land acquired to the fullreplacement value of land. GOB submitted the RRAP on October 15, 1993 to IDA,which was satisfactory. The RRAP contained a definition of the operationalmechanism for determining the replacement value of land as well as the range

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of entitlements that will be offered to various categories of project affectedpersons (PAPS).

46. The proposed schedule of construction requires a program ofresettlement of unprecedented dimensions, as approximately 17,000 persons willhave to be resettled by April 1, 1994, when, according to the current bids,the contractor will have to take possession of approximately 850 hectares ofland on the east bank of the river in the Tangall District. Preparation ofthe necessary actions, as well as establishment of the requisite technical andadministrative capability, was tied to benchmarks for project processing (seepara. 29). Environmental mitigation and resettlement costs are fullyreflected in project costs, including a sizable contingency for unforeseencosts.

47. As of November 31, 1993, the number of professional resettlementstaff within the JMBA was 40. However, to implement the proposed RRAP, JMBArequired the assistance of a team of technical experts. Two expatriateconsultants, three local experts and an NGO have been appointed. Consultantswere also contracted to initiate the MIS and the registration cell required bythe RRAP.

48. Recommendation. I am satisfied that the proposed credit wouldcomply with the Articles of Agreement of the Association and recommend thatthe Executive Director approve the proposed credit.

Lewis T. PrestonPresident

Attachments

Washington, D.C.January 24, 1994

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BANGIADESH

JANUNA BRIDGE PROJECT

Estimated Cost and Financina PlantS million)

Estjmated Cost:Local Foreian Total… …US$ million---------

Main Bridge 41.44 178.96 244.40River Training 36.85 207.20 244.05Approach Roads 26.72 26.18 52.90Technical Assistancet Implementation 1.00 20.00 21.00

: Institutional 3.32 2.68 6.00Others and Resettlement 52.50 0.00 52.50

Base Cost 161.82 435.03 S96.85

Physical Contingencies 10.94 45.26 56.20Price Contingencies 14.31 28.64 42.95

Total Project Cost 187.07 508.93 696.00

Financina Plan:Local Foreian Total

-------- …USS million…---------

IDA 30.35 169.65 200.0ADB 30.36 169.64 200.0OECF 30.36 169.64 200.0GOB 96.00 00.00 96.00

Total 187.07 508.93 696.00

£/ Exclusive of duties and taxes from which the project is exempt.

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§CHRDULZ B

JAMUNA BRIDGE PROJECT

Procurement Method and Disbursement

Procurement is being carried out according to the following table:

(USS million)

Project element Procurement Method TotalICB LCB NBFl/ Other Cost

Civil Works 620.35 46.50 666.85(191.93) (191.93)

Technical Assistance:implementation 22.50 22.50

(7.00) (7.00)institution 6.65 6.65

(1.07) (1.07)

Total 620.35 46.50 29.1 626.00(191.93) ( - ) (8.07)(200.0)

N=tEs Amounts within brackets represent IDA financing; equal financingfor the same items are expected from ADD and OCF.

^/ NBFs Non Bank FinancedDisbursement

Catoaorv _mount Exoenditure to be Financed

Civil Works 191.00 30.7%

Consultant Services andTraining 9.00 33%

Egtimated Disbursements:

IDA Fiscal Year FY94 FY95 FY96 FY97 FY8 F

Annual 40.0 60.0 50.0 20.0 20.0 20.0Cumulative 40.0 100.0 150.0 170.0 190.0 200.0

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BANGLADRSH

JPhNUNA BRIDGE PROJECT

Timetable of Rev Proiect Processina Events

Time Take to Prepare the Projects Three years

Prepared By: Government and JMBA

First Bank Missions July 1990

Appraisal Mission Departure: September 3, 1993

Negotiations: November 29-December 3, 1993

Planned Date of Effectiveness: March 1994

List of relevant PCRs and PPARs: Project Performance Audit ReportJune 1989 (covering Credits 408-EDi964-BD and 1301-BD)

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Schedule 0

THE STATUS OF BANK GROUP OPERATIONS IN BANGLADESH

A. STATEMENT OF BANK LOANS AND IDA CREDITS(As of November 30, 1993)

Amount in US$ Million(less cancellations)

Credit No. FY Borrower Purpose Bank IDA Undisbursed

1 Loan and 101 CredIs have been fully disbursed 56.9 3,352.1of which II SECALs. SALs and Program CredIts a> 1,064.7

Cr. 1467-BD 1984 Bangladesh 8WDB Small Schemes 41.5 0.1 b>Cr. 1586-80 1985 Bangladesh Second Gas Development 110.0 37.7Cr. 1591-BD 1985 Bangladesh Flood Control & Drainage lIl 45.1 7.4Cr. 1833-8D 1986 Bangladesh Rural Elect;ification II 79.0 28.7Cr. 1651-8D 1985 Bangladesh Shrimp Culture 22.0 9.9 b>Cr. 1734-80 1987 Bangladesh Dhaka WASA [if 30.0 9.2Cr. 1749-80 1987 Bangladesh Refinery Modciication & LPG 47.0 7.5Cr. 1784-8D 1987 Bangladesh Flood Control & Drainage IV 20.0 9.6Cr. 1827-8D 1987 Bangladesh Road Rehab & Mantenance 102.0 49.1Cr. 1870-8D 1988 Bangladesh Sm Sc FCD & Irrigation II 81 5 19.4Cr. 1930-80 1988 Bangladesh Urban Development 1 38.8 31.8Cr. 1940-80 1988 Bangladesh Rural Roads & Markets 62.3 32.2Cr. 2000-8D 1989 Bangladesh Export Development 25.0 8.8Cr. 2016-3D 1989 Bangladesh Power Distribution (16 Towns) 87.0 62.5Cr. 2048-80 1989 Bangladesh Flood Rehabilitation Ili 133.6 20.6Cr. 2099-BD 1990 Bangladesh BWDB System Rehab 53.9 49.9Cr. 2118-BD 1990 Bangladesh General Education 159.3 100.3Cr. 2129-BD 1990 Bangladesh Rural Electrification III 105.0 95.4Cr. 2146-BD 1990 Bangladesh Fisheries Ill 44.6 42.6Cr. 2152-BD 1990 Battgiadesh Financial Sector Adjust. Credit 175.0 53.5Cr. 2232-BD 1991 Bangladesh Inland Water Transport 45.0 44.2Cr. 2233-8D 1991 Bangladesh Agric. Support Services 35.0 30.8Cr. 2246-BD 1991 Bangladesh National Minor Irrigation 54.0 51.3Cr. 2253-8D 1991 Bangladesh Shallow Tubewells 75.0 55.6Cr. 2259-3D 1991 Bangladesh Population and Health IV 180.0 148.8Cr. 2263-BD 1991 Bangladesh LPG Distribution 67.2 70.0Cr. 2340-80 1992 Bangladesh Private Sector Ind. Credit 25.5 25.2Cr. 2361-80 1992 Bangladesh Public Resource Management 150.0 103.8Cr. 2390-BD 1992 Bangladesh Technical Assistance VI 25.0 23.6Cr. 2397-BD 1992 Bangladesh Forest Resources Management 49.6 45.9

*Cr. 2427-B0 c> 1993 Bangladesh Industrial Sector SECAL II 103.5 102.1Cr. 2469-BD 1993 Bangladesh Female Secondary Scholarship 68.0 65.7

Total 56.9 5,692.6 d> 1,443.2 d>of which has been repaid 18.8 113.1

Total now held by Bank and IDA 38.0 5,579.4

Amount sold 0.4Of which repaid 0.4 Total Undisbursed 1,443.2

a> Approved during or after FY80.b> Closed June 30, 1993.c> Not yet effective.d> The principal amounts of IDA credits are shown in US Dollar equivalent at date of negotiations, as shown in the President's

Report. Undisbursed amounts shown in US Dollar equivalent are valued at the exchange rate applicable on the date of thisstatement. In some cases, therefore, the undisbursed balance indicates a dollar amount greater than the original principalcredit amount expressed in dollars.

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- 19 --

Schedule DPage 2 of 2

STATEMENT OF IPC INVESTMENTS(As of September 30, 1993) a>

Committed for IFC's AccountInvestment Fiscal Type of Loan Equity TotalNumber Year Obligor Business (USS Million)

2 Projects closed

528 1980 Industrial Promotion andDevelopment Company of DevelopmentBangladesh, Ltd. Financing 0.00 1.05 1.05

785 1985 Industra DevelopmentLeasing Company of Money and CapitalBangesh Markets .93 0.15 1.08

767/ 1985/86 Bata Shoe Company857 (Bangladesh) Ltd. General Maufcurn .34 0.49 .83

2395 1991 Dynamic TexdleIndustries Ltd/ Textiles 2.50 0.00 2.50

Total Gross Commitments 3.77 1.69 5.46

Total Commitments now held by IFC a> 3.77 1.69 5.46

Total Undisbursed 0.00

a> Includes transactions of Capital Markets Department and Energy Unit.

b> Exchange adjustments account for variation in total gross commitmen, le cancellations, etc., and totalcommitments now held by IFC.

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MAP SECTION

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BANGLADESH

JAMUNA BRIDGE PROJECTMAIN TRANSPORT NETWORK

PROPOSED PROJECTA A &SMAK i.MMi

p j S ~~~~~~~~~~~~~~~~~~~ROAD WORK X JAM SwoK I 12 . 'i ; (al

) j / \ ) 0 ) > 4 gt ~~~~~~~~I N D I A --- a ERKwRI OU-ES

o cs241

~~~~~~~~~~~~~~~~~~~~~~~I JNDIA

2?~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~r

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**$flfrIo,r cmh r .o R

-I.,N It A

d, - O ,S=p @\

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IBRD 25249

REHABILITATION ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ 1~..EMABIAlNKMN{ 0 <x e e OF WEST FLOOD >4 $ ; < f , O EAST 0EMBANKkiENT. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ EBAKMN

RV RR TRAINIG WORKS 2

AOMU .ANDAPPRPACD ,VIADJXCTS

0$20

ROAD APFROAC11ES . RIVERS : { .-> O-i"T;Ri 2

NEPAL UTJ'

BANGLADESH -".?

JAMUNA BRIDGEINALOCATION AND CONSTRUCTION COMPONENTS iNDIA

SN iAD ES H

E IRrNER TRAINING WORKS -s EXISTNG FLOOD EMRANKQANT I N D IA -- BRIDGE AND APPROACH VLADUCT'S MAIN ROADS

FLOOD EMBANKMENT$ --- RAILROADS

- ROAD APPROACHES ~MVERS

=61"Tt"W ^"b =Bay of Bengal 9-_; B doml G .Dk.p.$m. W-M6.,dm.~, fe o-. -0 N- a f >

.. P o i,*bb, - 6. P-d Th. a m Bry i o .0, mWma.1WNO 1' u