Ex-Ante Evaluation (for Japanese ODA Loan)
1.
Name of the ProjectCountry:
The People’s Republic of Bangladesh
Project:
Chittagong City Outer Ring Road Project
Loan Agreement: March 24, 2010
Loan amount:
9,096 million Yen
Borrower:
The Government of the People’s Republic of Bangladesh
2.
Background and Necessity of the Project(1) Current State and Issues of the Road Transport Sector in Bangladesh
In Bangladesh, the road network is an important means of transportation. Between 1998 and 2006,
the number of registered vehicle increased at an annual rate of around 6%. In the future, it isanticipated that both the number of vehicles and traffic demand will increase even more due to theimpact of economic development and population growth. On the other hand, traffic congestions
occur frequently because in addition to the fact that the systematic road network connecting eachurban center is still under development, arterial roads within the major urban centers (particularlyin the city of Dhaka and Chittagong) have not been developed sufficiently. This problem requires
urgent attention.
(2) Development Policies for the Road Transport Sector in Bangladesh and the Priority of theProject
The development of the road sector in Bangladesh is put forward as one of the most important
issues in the Poverty Reduction Strategy Paper (PRSP) for the country to achieve economic
growth and poverty reduction. At a national level, development of the road transport system isbeing carried out with a focus on connecting the economic growth centers with the suburban road
network in accordance with the National Land Transport Policy; on the other hand, at each urban
center level, it is planned that the road network will be developed in accordance with each urban
development plan.
In addition, this project is placed as one of the top priority in Chittagong city development strategy.
Chittagong, the second-largest city in Bangladesh, and having the largest Export Processing Zone(EPZ) in the country, the largest port facilities, and an international airport, is expected to play animportant role in the future development of the country. Against this background, the Chittagong
Metropolitan Master Plan (CPMP) has been drawn up. For the purpose of implementing the plan,
the Detailed Area Plan (DAP) was formulated in 2008, where development of key arterial roads isplanned in order of precedence. With the plan of building a road network connecting theabove-mentioned EPZ, airport and so on for the purpose of facilitating distribution and at the sametime alleviating traffic congestion in the central part of the city, this project is positioned as one of
the highest priority projects in the DAP.
Furthermore, as Bangladesh is highly vulnerable to natural disasters and the Chittagong city area,
among other places, is particularly susceptible to cyclones, etc., and given the fact that this projectis going to construct embankment cum road along the coastline of the city, this project is alsodesignated as one of the highest priority projects for flood countermeasure.
(3) Japan and JICA’s Policy and Operations in the Road Transport Sector
Based on Country Assistance Program for Bangladesh (May 2006) drawn up by Government ofJapan, JICA positions the road transport sector in Bangladesh as a priority area of economic
infrastructure development that is one of the development tasks concerning economic growth andthis project is in accord with the above-mentioned policy. The following are the major past aid1

records within the road sector:• Loan aid: Jamuna Multipurpose Bridge Project, Jamuna Bridge Access Roads Project, Greater
Faridpur Rural Infrastructure Development Project, Eastern Bangladesh Rural Infrastructure
Development Project, and the Eastern Bangladesh Bridge Improvement Project• Grant aid: Meghna Bridge Construction program, Meghna Gumti Bridge Construction program,and the Portable Steel Bridge Construction on Feeder & Rural Roads program(4) Other Donors’ Activity
In addition to JICA, two other major donor organizations, the World Bank and Asian Development
Bank (ADB), are coordinating to carry out aid projects as follows:• The World Bank is implementing a project concerning rural transport infrastructuredevelopment and carrying out a maintenance improvement project with the relevant agencies.
Furthermore, the World Bank is going to implement a large-scale railway development project,and accordingly planning to implement a railway-related infrastructure development project inDhaka and its vicinity.
• ADB is also lending intensive support to the road sector at Chittagong, formulating a projectplan for a high-standard road between Dhaka and Chittagong, and constructing a port accessroad which connects the Port of Chittagong with the Dhaka-Chittagong national highway.
(5) Necessity of the Project
The purpose of this project is to facilitate the economic development of Chittagong and eventuallycontribute to the economic development of Bangladesh by alleviating traffic congestion on theexisting trunk roads in Chittagong city, as well as reducing the damage caused by such natural
disasters such as cyclones and tidal waves. As this project is also in line with the priority area
specified in the foreign aid policy of JICA, therefore, the necessity and relevance of JICA’s
support of this project is high.
3.
Project Description(1) Project Objectives
The objective of the Project is to alleviate traffic congestion in Chittagong city while
simultaneously improving the City’s disaster preparedness by constructing a ring road which has abank-protection function, and then to reduce the infrastructure bottleneck that is hindering
economic growth, thereby helping to attract more investments into the region and promoting
further economic growth.
(2) Project Site/Target Area
Chittagong city
(3) Project Components
1) Construction of the embankment cum road (14.7km) and 3 feeder roads (6.9km in total)
2) Development of site for resettlement
3) Consulting services (detailed design, assistance with bidding, construction management,improvement of skills of the implementing agency, etc.)(4) Estimated Project Cost (Loan Amount)
16,645 million yen (Loan Amount: 9,096 million yen)(5) Schedule
March 2010 - February 2017 (in total 84 months). To be completed with commencement ofservice (February 2016)(6) Project Implementation Structure1) Borrower: The Government of the People’s Republic of Bangladesh2

2) Executing agency: Chittagong Development Authority (CDA)
3) Operation and Maintenance System: The same as 2)(7) Environmental and Social Consideration /Poverty Reduction /Social Development
1) Environmental and Social Consideration:a) Category: Ab) Reason for Categorization:
This project is categorized as A because it is located in a sensitive area and likely to havesignificant adverse impact on the environment under the “Japan Bank for International
Cooperation Guidelines for Confirmation of Environmental and Social Considerations”(April 2002) in terms of its characteristics.
c) Environmental Permit:
Environmental Impact Assessment (EIA) report concerning this project has been
approved by the Department of Environment, Ministry of Environment and Forests inJuly 2009.
d) Anti-Pollution Measures:
During the construction work for this project, a range of measures will be put in place
including watering, covering the construction equipment and materials with ananti-scattering cover, and appropriate management of delivery vehicles and heavy
construction machinery. In addition, in relation to the influence of soil contamination
and water pollution associated with mound layering, soil surveying of the sand/gravel
quarry will be conducted. With regard to the noise when the road is placed in service,
such measures as speed restrictions in the residential areas and the installation of bufferzones through roadside planting will be put in place.
e) Natural Environment:
It is assumed that negative impact on the natural environment will be minimal.
f) Social Environment:This project involves large-scale land acquisition (108 ha) and relocation of residents(7,308 people). Land acquisition, resettlement and compensation will be implemented inline with the procedures that are stipulated in the domestic laws of Bangladesh.
g) Others/Monitoring:
During this project, monitoring for noise, vibration, water quality, air quality, landacquisition, relocation of the residents and so on are carried out by executing agency.
2) Promotion of Poverty Reduction: None
3) Promotion of Social Development (e.g. gender perspective, measures for infectious diseases
including HIV/AIDS, participatory development, consideration for persons with disability,etc.): None
(8) Collaboration with Other Donors: None
(9) Other Important Issues: None34.
Targeted Outcomes(1) Performance Indicators (Operation and Effect Indicator)
Baseline(Actual value in 2009)

Indicator

Coverage

Annual average daily traffic(number of vehicles/day)Travel Time(minute)(average of both directions)

Main road: 14.7km
Existing road (Aziz Road)
Existing road
(The starting point of thisproject – city center: 17.4 km)

Travel speed(km/hour)(average of both directions)
Natural disaster-related
impassable days per year(day/year)

Existing road
(The starting point of thisproject – city center: 17.4 km)

Morning: 32
Daytime: 35
Night: 40
Morning: 32.2
Daytime: 29.8
Night: 26.0

Main road: 14.7 km

NANA
33,958Target (2018)(Expected value 2 years
after project completion )19,20021,7002842.40(2) Internal Rate of Return
Based on the conditions indicated below, Economic Internal Rate of Return (EIRR) for this projectis 23.9%[EIRR]
Cost: Project expenses (excluding tax), management, operation and maintenance
Benefits: Alleviation of traffic congestion in Chittagong city; Reduction of cyclone damage
Project life: 20 years
5.
External Factors and Risk Control
Delays in civil engineering work, etc. due to natural disasters such as floods
6.
Lessons Learned from Past Projects
Based on past experience of similar projects, the importance of ground/soil-property survey andstaff in charge of the site at the maintenance/administration stage has been pointed out. On thebasis of these, it is planed not only to carry out a full survey of ground/soil-property at the detailed
design stage, but also to give assistance through our consulting service while implementing theproject with capacity development program for the staff of the executing agency, the organizationin charge of the operation and maintenance.
Furthermore, based on past experience of projects that involved the large-scale resettlement, it has
been pointed out that it is necessary to take appropriate measures to ensure that those residents
who are targeted for relocation have sufficient means of livelihood/standard of living. With thisproject, not only planed to mobilize consultants and specialized NGO for this issue so thatcompensation and livelihood improvement measures can be carried out in an appropriate mannerin accordance with the Resettlement Action Plan, but also, even after the completion of the project,
it is planed to create a section inside the executing agency which deals with environmental andsocial issues so as to fully monitor the livelihood of the relocated people.
7.
Plan for Future Evaluation(1) Indicators to be used
1) Annual average daily traffic (number of vehicles/day),2) Reduction of the travel time (minutes)3) Improvement of average travel speed (km/h)
4) Reduction of natural-disaster-related impassable days per year (day/year)45) EIRR (%)(2) Timing
Two years after the completion of the project5