Ex-Ante Evaluation (for Japanese ODA Loan)
1. Name of the ProjectCountry: The People’s Republic of Bangladesh
Project: Cross-Border Road Network Improvement Project (Bangladesh)
Loan Agreement: June 29, 2016
Loan Amount: 28,698 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 Sector in BangladeshWith advancing reform, such as economic liberalization, the South Asia region centering on
India and the People’s Republic of Bangladesh, is catching much attention as an economic
market with high potential. The region has 1.7 billion in population and will have its
demographic bonus period, where domestic demand expands, which should lead to furthergrowth. On the other hand, interaction within the region out of the regional trade volume is as
low as 3% (Asia Regional Integration Center 2012). For intra-regional connections,transportation infrastructure development has been a particularly big issue. Moreover, since
Bangladesh is located in a crucial spot for connecting all the neighboring countries (India,Myanmar, Nepal, and Bhutan), installation of international corridors through Cross-BorderRoad Network Improvement Project (Bangladesh) (hereafter referred to “the Project”) ishighly expected to contribute to not only Bangladesh but also the whole region’s stability andeconomic growth.
Road transport is the major means of transport in the region, serving 70% of the passenger
and cargo transport. There are numerous international corridors such as the Asia Highway.
However, many of the road sections hold technical issues in customs and entry procedures atthe border, and domestic and near-border roads and bridges suffer deterioration andinsufficient coverage. Thus, it is not efficiently functioning as international corridors andimpeding passenger and cargo transport.
(2) Development Policies for the Road Sector in Bangladesh and the Priority of the Project
The region has set a mass transit system plan based on several local collaboration
frameworks, and that has been installing both infrastructure and technical development.
This Project targets zones that are selected according to the plan and National Integrated
Multimodal Transport Policy (2013) of Bangladesh, and includes economic corridors thatconnect main cities, such as Asia Highway Route 1 or Route 41.
(3) Japan and JICA’s Policy and Operation in the Road Sector
The Country Assistance Policy for Bangladesh (June 2012) sets the acceleration of
economic growth as a priority area and aims to contribute to the development of transport andtraffic infrastructure for promoting efficient transport of passengers and goods, and also for
mitigation of regional disparities. Moreover, the JICA Country Analysis Paper for Bangladesh

(April 2013) identifies development of its domestic transport and traffic network as a priority
issue. This Project is relevant with the policy and the analysis. JICA assistance so far has
implemented 13 ODA loan and grant aid projects to develop bridges and other infrastructure
facilities (e.g. The Kanchpur, Meghna, and Gumti 2nd Bridges Construction and Existing
Bridges Rehabilitation Project (I) (FY 2012)) along with Technical Component of ODA Loanfor Bridge Maintenance Capacity Development Project (2015-2018) and dispatch of Adviser
for Road and Bridge Maintenance (1988-).
(4) Other Donors’ Activity
The main donors for transport sector, including roads and bridges, in Bangladesh are JICA,
Asian Development Bank (ADB), and the World Bank (WB).
The ADB has supported widening construction of road and transport sector reform(including enhancing the institutional capacity of the Roads and Highways Department(RHD) of the Ministry of Road Transport and Bridges) through South Asian Sub Regional
Economic Cooperation (SASEC), and the Dhaka-Chittagong Expressway Project (feasibilitystudy). The WB assisted the RHD with the restoration and maintenance of roads from the1990s to 2006.
(5) Necessity of the ProjectThis Project is in line with the assistance policies and analysis of Government of Japan andJICA. Also, the policies of the Government of Bangladesh identify the crucial improvement
needs in the transport network with neighboring countries and efficient traffic and cargotransport. Thus, the necessity of JICA to implement the Project is high.
3. Project Description(1) Project Objective
The objective of the Project is to improve intercity transport and logistics network, bydeveloping major international road networks in Bangladesh, thereby contributing tofacilitation of trade with neighboring countries.
(2) Project Site / Target Area
Gopalganj District, Narail District, Jessore District, Chittagong District, Khagrachhari
District, Cox’s Bazar District(3) Project Components
1) Replacement of 16 existing bridges, construction of approach roads and box culvert(international competitive bidding).
2) Construction of Kalna Bridge and approach roads, and procurement of maintenancevehicles (international competitive bidding).
The target areas for 1) and 2) above are the international arterial roads leading to theborder and connection roads (Dhaka-Benapole (Zone A), Ramgarh-Baraiyarhat (Zone B),
Chittagong-Cox’s Bazar (Zone C)) that are requested by the Government of Bangladesh,and they are selected according to the ranking based on the importance as cross-borderroad network, degree of damages, construction feasibility, economic effect etc.

3) Installation of axle load control station (Benapole and Rambarh border) (Internationalcompetitive bidding)4) Consulting Services (detailed designing, tender assistance, construction supervision,etc.) (by shortlist)(4) Estimated Project Cost (Loan Amount)
39,177 million Yen (Loan Amount: 28,698 million Yen)
(5) Schedule
June 2016 - June 2022 (74 months in total). The Project will be completed when thefacilities are first in operation (July 2021).
(6) Project Implementation Structure1) Borrower: The Government of the People’s Republic of Bangladesh
2) Guarantor: N/A
3) Executing Agency: Roads and Highways Department, Ministry of Road Transport andBridges (RHD)
4) Operation and Maintenance System: The operation and maintenance of the Project isprovided by RHD. RHD is capable of basic bridge checkup. Through manual development,
on-the-job training, and construction of bridge management system in the Bridge
Maintenance Project, capacity building and preventive maintenance in RHD will be furtherenhanced. The budget for maintenance will be preferentially allocated as to a donor project.
There have never been any issues of budget allocation in the past projects.
(7) Environmental and Social Consideration / Poverty Reduction / Social Development
1) Environmental and Social Consideration① Category: B② Reason for the Categorization
This Project does not apply to a large-scale project in road and bridge sector as
described in JICA Guidelines for Environmental and Social Considerations (April 2010),
and the project and its location are recognized in the guidelines as unlikely to have any
significant adverse impact on the environment.
③ Environmental Permit
Environmental Impact Assessment (EIA) reports of all the seventeen target bridges areapproved by Department of Environment and acquired Environmental Clearance
Certificate (ECC) in January, 2016.
④ Anti-Pollution Measures
In order to mitigate the effects of construction works to the environment, thesemeasures will be taken: water sprinkling to prevent dust emission, covering of materials
to prevent scattering, proper management of construction heavy machinery to prevent gas
and dust emissions for air, drainage water treatment by installing sanitary facilities forwater, and work-time control and proper operation of heavy machinery for noise toremedy the possible effect and to satisfy the legal requirements in Bangladesh. Also, thewaste soil from construction will be disposed of in a designated final disposal areaaccording to the waste management policy. The noise problems after the commencement
will be monitored and responded to as necessary.
⑤ Natural Environment
The target area does not apply to a vulnerable area, such as national park, or its
surrounding, and the expected influence on the local natural environment is minimum.
⑥ Social Environment
The Project, with construction of 17 bridges, will entail land of approximately 31
hectares and relocation of 149 households (755 people). Thus, the procedure will be held
according to Abbreviated Resettlement Plan (ARP), which was prepared in accordancewith the laws and regulations in Bangladesh and JICA Guidelines for Environmental andSocial Considerations. In a stakeholder meeting in a local community, no special
opposition against the project was identified.
⑦ Other / Monitoring
Though the project, monitoring of air, noise, and water quality etc. during construction
will be done by contractor, and monitoring of noise after commencement of service will
be done by executing agency. Also, land acquisition, status of relocation of the residents
and their living recovery will be monitored by the executing agency in cooperation withthe local NGO that runs ARP, followed up an external monitoring by the third party.
2) Promotion of Poverty Reduction
At the relocation, additional compensation and training for income generation for thepoor will be run. The details of implementation are indicated in ARP.
3) Promotion of Social Development
Group discussion among women and widows were held for ARP development. Thispart of the program will be run by a NGO, and even during the operation stage, individual
consultation of those women is planned so that the result can be reflected in the relocation
planning. Also, those relocating women will be offered participation in simple
construction tasks. For the reasons above, this part is classified as a gender integrated
project.
(8) Collaboration with Other Donors
The project formulation will be executed referring to the result of technical assistance(development of anti-overloading regulations, anti-corruption action plan etc.) to theinstitutional capacity building in RHD by ADB.
(9) Other Important Issues
This project uses the bridge design that ensures sufficient height under the bridge girder torespond to floods. It will allow for responsive adaptation to possible impact of climatechange.

4. Targeted Outcomes(1) Quantitative Effects
1) Performance Indicators (Operation and effect indicators)
Baseline

Target (2023)(Actual Value in 2015）【Expected value 2 years
after project completion】

8,857 *1

19,958 *1

0 *1

761 *1

Decrease in days cars detour due to floodingof bridges (day/year)

Approx. 60 *1

0*1

Incidence of traffic impediment on theproject bridges*2(%)

44*1

0*1

Averagetraveltime
Dhaka-Benapole boarder (hour)

8.40

3.29

Indicator
Average Annual Traffic Volume (PassengerCar Unit/ day)Transit transport (vehicle/day)

between*1 Jhikorgacha Bridge (Zone A) is indicated as the sample for its data closest to the averagerate of all the bridges. The target figures are set for each bridge.
*2 Estimated bridge collapse and impassability calculated from the age of the bridge.
2) Internal Rate of Return
According to the following preconditions, this project’s Economic Internal Rate ofReturn (EIRR) will be 39.7%. The Financial Internal Rate of Return (FIRR) of KalnaBridge will be 8.7%. FIRR of the other target bridges will not be indicated for they will befree bridges.
EIRR:
Cost: Project Cost (excluding tax), operation/maintenance costs
Benefit: Reduction in travel time and vehicle operation cost
Project Life: 25 years
FIRR (Kalna Bridge only):
Cost: Project costs, operation/maintenance costs
Benefit: Fare receipt
Project Life: 25 years(2) Qualitative Effects
Adaptation to the impact of climate change, expansion of goods distribution network, andincrease in trade volume between Bangladesh and India
5. External Factors and Risk Control
N/A6. Lessons Learned from Past Projects(1) Lessons Learned from Past Projects
The ex-post evaluation of the Second Mekong International Bridge Construction Project inThailand and Laos describes that road network installation across a vast area needs to be done
after thorough analysis and consideration on the status and development plan of the otherrelated road and traffic network in a wide cross-border and comprehensive point of view.
(2) Application of Lessons Learned to the ProjectThis project plan was developed according to the mass transport system plan in the South
Asia region and in consideration of joining other related projects run by assistance from otherdonors and the Government of Bangladesh. The target bridges are all located either on theinternational arterial road (Asia Highway 1 and 41) or on a connection road between theborder and the international arterial road. The synergy among the Project and the projects
from the previous Japanese ODA loan, ADB, or Government of India (road/bridge
construction, infrastructure installation around the boarder etc.) is highly anticipated to bebrought about.
7. Plan for Future Evaluation(1) Indicators to be Used
1) Average annual traffic volume (Passenger Car Unit/day), Cross-border transport(car/day), Decrease in days cars detour due to flooding of bridges (day/year), Incidence oftraffic impediment on the project bridges (%), Average travel time between
Dhaka-Benapole border (hour)2) Economic Internal Rate of Return (EIRR) (%), Financial Internal Rate of Return (FIRR)(%)(2) Timing: Two years after the project completion