Bangladesh: Country Operations Business Plan …...Country Operations Business Plan October 2015 Bangladesh 2016–2018 This document is being disclosed to the public in accordance

Country Operations Business Plan

October 2015

Bangladesh 2016–2018 This document is being disclosed to the public in accordance with ADB’s Public Communications Policy 2011.

CURRENCY EQUIVALENTS (as of 3 September 2015)

Currency unit – taka (Tk)

Tk1.00 = $0.0128 $1.00 = Tk77.79

ABBREVIATIONS

ADB – Asian Development Bank ADF – Asian Development Fund COBP – country operations business plan CPS – country partnership strategy GDP – gross domestic product MFF – multitranche financing facility OCR – ordinary capital resources PDA – project design advance SASEC – South Asia Subregional Economic Cooperation TA – technical assistance

NOTES (i) The fiscal year (FY) of the Government of Bangladesh ends on 30 June. “FY”

before a calendar year denotes the year in which the fiscal year ends, e.g., FY2015 ends on 30 June 2015.

(ii) In this report, "$" refers to US dollars. Vice-President W. Zhang, Operations 1 Director General H. Kim, South Asia Department (SARD) Country Director K. Higuchi, Bangladesh Resident Mission (BRM), SARD Team leader M. P. Imdad, Principal Country Specialist, BRM, SARD Team members F. Ahad, Associate Programs Analyst, BRM, SARD

Z. U. Ahmad, Senior Water Resources Officer, BRM M. S. Alam, Senior Safeguards Officer (Resettlement), BRM R. V. Dael, Senior Social Sector Specialist, BRM B. K. Dey, Economics Officer, BRM A. M. Faisal, Senior Project Officer (Environment), BRM A. K. M. Firoz, Senior Procurement Officer, BRM P. S. Hattle, Senior Climate Change Specialist (Clean Energy), SAEN S. M. Hossain, Senior Public Management Officer, BRM M. N. Islam, Senior Project Officer (Transport), BRM P. Marro, Principal Financial Sector Specialist, SARD E. Morsheda, Senior Project Officer (Urban Infrastructure), BRM M. G. Mortaza, Senior Economics Officer, BRM, SARD M. Roesner, Principal Transport Specialist, SARD

S. Rahman, Senior Economics Officer, BRM B. K. Saha, Senior Project Officer (Financial Sector), BRM N. Saito, Principal Urban Development Specialist, SARD N. Selim, Social Development Officer (Gender), BRM

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS Page

I. CONSISTENCY OF BUSINESS PLAN WITH COUNTRY PARTNERSHIP STRATEGY 1

II. INDICATIVE RESOURCE PARAMETERS 1

III. SUMMARY OF CHANGES TO LENDING AND NONLENDING PROGRAMS 2

APPENDIXES

1. Updated Country Partnership Strategy Results Framework 3 2. Indicative Assistance Pipeline 6 3. Assistance Program for Current Year 13 4. List of Indicative Knowledge Publications and Events 16

1

I. CONSISTENCY OF BUSINESS PLAN WITH COUNTRY PARTNERSHIP STRATEGY

1. To achieve its goal of achieving middle-income country status by 2021, Bangladesh is aiming for annual average real gross domestic product (GDP) growth of 7.4% under the government’s seventh five-year plan for FY2016–FY2020.1 To accelerate inclusive growth and reduce poverty and income inequality, the country will require a substantial increase in yearly investments from 29.0% of GDP in FY2015 to 34.4% of GDP by FY2020. More than $11 billion in external resources will be needed during the plan period for public sector investment. Consistent with the Asian Development Bank (ADB) strategic directions set by the ADB’s Strategy 2020 midterm review, the country operations business plan (COBP) for 2016–2018 aims to support the current and emerging development priorities of the government, including activities to sustain strong and inclusive economic growth and strong human development.2 This COBP is the last under the ADB country partnership strategy (CPS), 2011-2015 for Bangladesh.

2. The 2016–2018 COBP will support continued government efforts in industrial development to diversify the economy and in rural development to manage urbanization. ADB will prioritize activities to develop infrastructure, skills, resilience to environmental and climate change, the private sector, and regional cooperation and integration. In terms of Strategy 2020’s drivers of change, activities in the ADB pipeline will seek to strengthen public–private partnerships, improve governance in local governments, enhance skills, and mainstream gender equity and knowledge solutions. Environmental and climate change considerations have been integrated into project interventions.

3. Responding to the country needs and with ADB’s enhanced resource base, the 2016–2018 COBP substantially scales up ADB operations from the historical base by programming beyond the indicative assistance level. Projects covered by this additional programmed amount have been included under the standby category. Nonetheless, projects and programs will be processed according to their readiness, regardless of whether they are listed as firm or standby. Depending on readiness, project processing may also be advanced or rescheduled. The program includes the technical assistance (TA) loans and project design advances (PDAs) needed to support project readiness. TA resources will focus on project or program preparation, implementation support, and knowledge products and services.

II. INDICATIVE RESOURCE PARAMETERS

4. Bangladesh is a Group B ADB developing member country and currently has access to both the Asian Development Fund (ADF) and ADB’s ordinary capital resources (OCR). The indicative resources available during 2016–2018 for sovereign operations amount to $2,778 million. This comprises $1,502 million in market-based OCR and $1,276 million in ADF and concessional OCR resources.3 The final allocation will depend on the availability of ADF and concessional OCR resources, as well as the outcome of ADB’s country performance assessments. The lending program includes the over-programming that is listed as standby (para. 3). This is done to build a strong pipeline for additional lending resources that may become available as a result of the merger of ADF lending resources with the OCR balance sheet. The pipeline will be revisited during the next country programming exercise in 2016. The ADB-funded TA program, for 2016–2018, averages about $3.7 million a year. An indicative lending and nonlending program and a list of indicative knowledge publications and events are

1 Government of Bangladesh. 2015. The Seventh Five Year Plan FY2016-FY2020: Accelerating Growth and Empowering Every Citizen. Planning Commission, Ministry of Planning: Dhaka (draft) 2 ADB. 2014. Midterm Review of Strategy 2020: Meeting the Challenges of a Transforming Asia and Pacific. Manila. 3 This reflects the approved combination of ADF lending operations with the OCR balance sheet that will become effective on 1 January 2017.

2

in Appendixes 2 and 4. In consultation with the government, ADB will actively explore opportunities for cofinancing to increase the project scope. Private sector operations will be catalyzed using ADB’s nonsovereign lending products.

III. SUMMARY OF CHANGES TO LENDING AND NONLENDING PROGRAMS

5. Energy. The COBP continues to focus on the generation, transmission, and distribution of electricity; improving energy efficiency; and developing regional cooperation in power trading. Tranche 3 of the Power System Expansion and Efficiency Improvement Investment Program multitranche financing facility (MFF) is confirmed for 2015. The Natural Gas Development and Distribution Project MFF, with tranche 1 in 2016 listed as standby, will support expanding delivery of domestic gas and imported liquefied natural gas. Project Preparatory Facility for Power Sector (TA loan) in 2016 will support early project preparation in the power sector. The Rural Hybrid Power Development Project in 2017 (standby) will support rural communities and renewable energy development.

6. Transport. ADB will focus on improving road maintenance, increasing the capacity of regional road corridor from Dhaka to Northwestern Bangladesh, and building the Dhaka–Chittagong–Cox’s Bazar railway corridor. Additional Financing for Subregional Transport Project Preparatory Facility (TA loan) in 2015 will support preparation of 600 kilometers of roads improvement in eight subregional corridors, and the conversion of the Dhaka–Chittagong–Cox’s Bazar rail corridor to dual-gauge from meter gauge. Tranche 1 of the SASEC Roads Project II is scheduled for 2017. The Railway Rolling Stock Project, scheduled for 2015, will enhance railway services by providing more and better rolling stock. The first tranche for the SASEC Chittagong–Cox’s Bazar Railway Project Phase 1 in 2016 (standby) will finance a new 100-kilometer railway line.

7. Education. The COBP strengthens ADB involvement in primary and secondary education; skills development; and science, technology and innovation. Tranche 3 of the Skills for Employment Investment Program in 2017 will support policy and institutional reforms and improved job placement. The Information Technology Parks for Employment in 2017 (standby) will support skills development in technology and innovation.

8. Finance. In the finance sector, ADB’s focus will remain on the development of a capital market, small and medium-sized enterprises (SMEs), and infrastructure financing. The Small and Medium Enterprise II Project in 2015 (standby) will support access to finance for SMEs in nonmetropolitan areas. The Third Public–Private Infrastructure Development Facility Project in 2016 (standby) will address infrastructure deficiencies by providing long-term debt financing for private sector-sponsored infrastructure projects.

9. Water and other urban infrastructure and services. ADB will provide support in the integrated planning process for climate change mitigation and adaptation, water supply and sanitation in large cities, urban primary health care, and governance. A PDA in 2016 will support preparation of the tranche 1 subproject of the City Region Development Investment Program. Additional financing for the Coastal Towns Environmental Infrastructure Project is included in the pipeline for 2016.

10. Agriculture, natural resources, and rural development. ADB will support food security and rural livelihoods by helping to improve productivity, climate-resilient connectivity, and integrated water resources management. A PDA in 2016 will support preparation of the Crop Diversification and Value Chain Infrastructure Development Project. A PDA in 2015 will support the Rural Infrastructure Maintenance Program, with result-based lending, for 2016.

Appendix 1 3

UPDATED COUNTRY PARTNERSHIP STRATEGY RESULTS FRAMEWORK

(Board endorsement of the CPS: 2011; COBP September 2015) Country Development Goals Changes

from CPS or Last COBP

1. During FY2011–FY2015, attain average real gross domestic product growth of 7.3%, boost gross domestic investment to 32.5% of gross domestic product, and triple investment in infrastructure to 6% of gross domestic product.

2. Reduce poverty head count ratio by 10 percentage points by FY2015, from 31.5% in FY2010. 3. Raise the share of industrial employment from 17% in 2010 to 25% by 2015.

Sectors Selected by ADB Changes from CPS or Last COBP

Government Sector Objectives

Sector Outcomes that ADB Contributes to and Indicators

ADB Areas of Intervention

ADB Indicative Resource Allocation in the Next Pipeline and Thematic Priorities

1. Energy (Core Areas 1: Infrastructure and 2: Environment)

Reliable power supply with expanded access to power

Expanded access to power Access to electricity increased Baseline: 47% (2009) Target: 65% (2015) Current value: 68% (2014) Per capita consumption of electricity increased Baseline: 170 kilowatt-hours (2010) Target: 390 kilowatt-hours (2015) Current value: 348 kilowatt-hours (2014)

Electricity generation, transmission, and distribution; energy efficiency; gas production and distribution

$641 million for 2016–2018 (2016, 2017, and 2018 are outside current CPS period), including current year, 14.2% of total CPS envelope, and additional $424 million cofinancing, of which: ESG – 78.8% GEM – 18.7% PSD – 50.7% RCI – 18.7%

$862 million up to 2014, 19.2% of total CPS envelope, of which: ESG – 98.6% GEM – 0.0% PSD – 100.0% RCI – 1.4%

Sector allocation declined. Thematic focus on ESG, GEM, and PSD declined, but that on RCI rose.

2. Transport (Core Areas 1: Infrastructure and 3: Regional Integration)

Safe, reliable, and fully integrated transport system that moves people and goods more efficiently

Increased, more efficient, and safer movement of people and goods Rail passenger traffic increased (passenger- kilometers) Baseline: 7 billion (2010) Target: 15 billion (2015) Current value: 8.14 billion (2014) Rail freight traffic increased (ton-kilometers) Baseline: 710 million (2010) Target: 1,238 million (2015)

Roads, rail transport, transport policy, and institutional development

$1,140 million for 2016–2018 (2016, 2017, and 2018 are outside current CPS period), including current year, 25.3% of total CPS envelope, and additional $629 million cofinancing, of which: ESG – 0.9% GEM – 44.7% PSD – 30.7% RCI – 97.3% $1,018 million up to 2014, 22.6% of total CPS envelope, of which:

Sector allocation rose. Thematic focus on ESG, PSD, and RCI declined, but that on GEM rose.

Appendix 1

4






Current value: 677 million (2014) Annual average daily motorized traffic on Road and Highways Department roads Baseline: 3,085 vehicles (2010) Target: 4,532 vehicles (2015) Current value: 3,900 vehicles (2013)

ESG – 30.2% GEM – 64.2% PSD – 59.5% RCI – 45.0%

3. Water Supply and Other Urban Infrastructure and Services (Core Areas 1: Infrastructure and 2: Environment)

Full access to clean water and sanitation; improved access to municipal services; strengthened urban policy, local governance, and management; and sustainable public and environmental health services fostered in city corporations

More people enjoying improved water supply and sanitation services Urban population using improved drinking water sources increased Baseline: 85% (2008) Target: 100% (2015) Current value: 91% (2013) Urban population using improved sanitation facilities increased Baseline: 55% (2008) Target: 100% (2015) Current value: 90% (2013)

Urban water supply and sanitation services, solid waste management and slum improvement, urban policy, institutional and capacity development

$350 million for 2016–2018 (2016, 2017, and 2018 are outside current CPS period), including current year, 7.7% of total CPS envelope, and additional $114 million cofinancing, of which: ESG – 100.0% GEM – 100.0% PSD – 0.0% RCI – 0.0% $712.5 million up to 2014, 15.8% of total CPS envelope, of which: ESG – 82.5% GEM – 100.0% PSD – 47.1% RCI – 0.0%

Sector allocation declined. Thematic focus on PSD declined.

4. Education (Core Area 5: Education) Holistic development of the education sector to improve education quality and relevance; reversal of the low completion rate at all levels; reduction of the gap in access between rich and poor; and steady improvement of the skills base of the labor force

Increased access to quality education and increased educational attainment for all Grade 5 completion rate increased Baselines: girls = 57% (2010), boys = 53% (2010) Target: 75% for girls and boys (2015) Current values: girls = 75% (2014), boys = 82% (2014)

Net enrollment rate in secondary education increased Baselines: girls = 55% (2010), boys = 45% (2010) Target: 75% for girls and boys (2015) Current values: girls = 64.2% (2013), boys = 54.1% (2013)

Primary and secondary education; TVET; education sector development

$780 million for 2016–2018 (2016, 2017, and 2018 are outside current CPS period), including current year, 17.3% of total CPS envelope, and additional $1,369 million cofinancing, of which: ESG – 0.0% GEM – 100.0% PSD – 12.8% RCI – 0.0% $580 million up to 2014, 12.9% of total CPS envelope, of which: ESG – 0.0% GEM – 100.0% PSD – 17.2% RCI – 0.0%

Sector allocation rose. Thematic focus on PSD declined.

Appendix 1 5






5. Agriculture, Natural Resources and Rural Development (Core Area: Other Areas) Higher agricultural growth through support for rural infrastructure and integrated water resource management, and through additional water-related disaster risk management

Sustained high agriculture growth Annual agriculture growth maintained at 4.5% Baseline: 5.2% (2010) Target: 4.5% on average (2015) Current value: 4.4% (2014)

Rural infrastructure development; river basin and flood management; climate change capacity development; knowledge management; climate-resilient connectivity, and crop insurance and pilot programs

$779 million for 2016–2018 (2016, 2017, and 2018 are outside current CPS period), including current year, 17.3% of total CPS envelope, and additional $57 million cofinancing, of which: ESG – 30.2% GEM – 100.0% PSD – 45.0% RCI – 0.0% $186 million up to 2014, 4.1% of total CPS envelope, of which: ESG – 100.0% GEM – 100.0% PSD – 65.0% RCI – 0.0%

Sector allocation rose. Thematic focus on ESG and PSD declined.

6. Finance (Core Area 4: Finance Sector Development) Well-developed and regulated capital market

More efficient capital market for private sector enterprises Private investment as a percentage of gross domestic product increased Baseline: 19.5% (2011) Target: 23% (2016) Current value: 22% (2014) Number of listed securities increased Baseline: 445 (2010) Target: 725 (2015) Current value: 536 (2014)

Capital market development

$250 million for 2016–2018 (2016, 2017, and 2018 are outside current CPS period), including current year, 5.5% of total CPS envelope, of which: ESG – 0.0% GEM – 100.0% PSD – 100.0% RCI – 0.0%

$371 million up to 2014, 8.2% of total CPS envelope, of which: ESG – 13.5% GEM – 0.0% PSD – 100.0% RCI – 5.7%

Sector allocation declined.

ADB= Asian Development Bank, COBP = country operations business plan, CPS = country partnership strategy, ESG = environmentally sustainable growth, GEM = gender equity and mainstreaming, PSD = private sector development, RCI = regional cooperation and integration. Source: Asian Development Bank estimates.

6 Appendix 2

INDICATIVE ASSISTANCE PIPELINE

Table A2.1: Lending Products, 2016–2018

Project/Program Name Sector Poverty

Targeting

Strategic Agendas

and Drivers of Change Division

Year of

PPTA/ PDA

Cost ($ million)

Totala

ADBb

Gov’t Co-

finance

Market-based OCR

ADF Loans/Concessional OCR

ADF Grants Total

2016 Firm Crop Diversification and Value Chain Infrastructure Development Project (PDA)c

ANR GI IEG/GEM/ GCD/KNS/

PSD

SAER tbd 0.0 2.0 0.0 2.0 tbd 0.0

Rural Infrastructure Maintenance Program

ANR TI-G IEG/GCD/ GEM/KNS/

PAR

SAER 2015 tbd 130.0 64.0 0.0 194.0 tbd 50.0

Skills for Employment Investment Program (tranche 2)

EDU GI IEG/GEM/GCD/PSD/

PAR

SAHS 2011 tbd 0.0 100.0 0.0 100.0 tbd 200.0

Project Preparatory Facility for Power Sector (TA loan)

ENE TI-M IEG/PAR SAEN tbd 0.0 16.0 0.0 16.0 tbd 4.0

Bangladesh Power System Enhancement and Efficiency Improvement Project

ENE GI IEG/ESG/ KNS/PAR

SAEN tbd 300.0 0.0 0.0 300.0 tbd 200.0

Railway Sector Investment Program (tranche 4)

TRA GI IEG/RCI/ GCD/PAR

SATC tbd 50.0 0.0 0.0 50.0 tbd 129.0

City Region Development Investment Program (tranche 1) (PDA)d

WUS GI IEG/ESG/ RCI/GEM/

GCD

SAUW tbd 0.0 5.0 0.0 5.0 tbd 0.0

Appendix 2 7


Targeting

Strategic Agendas


Year of

PPTA/ PDA

Cost ($ million)

Totala

ADBb

Gov’t Co-

finance

Market-based OCR


ADF Grants Total

Coastal Towns Environmental Infrastructure Project (additional financing)

WUS GI IEG/ESG/ GCD/GEM/ KNS/PAR

BRM tbd 0.0 0.0 0.0 0.0 tbd 14.0

Total tbd 480.0 180.0 0.0 660.0 tbd 597.0

2016 Standby Natural Gas Development and Distribution Project (tranche 1)

ENE GI IEG/ESG/ GCD/PAR

SAEN tbd 150.0 0.0 0.0 150.0 tbd 350.0

Third Public Private Infrastructure Development Facility Project

FIN GI IEG/ESG/ PSD

SAPF tbd 180.0 0.0 0.0 180.0 tbd 0.0

SASEC Chittagong–Cox's Bazar Railway Project Phase 1 (tranche 1)

TRA GI IEG/RCI/ GCD/GEM/

PAR

SATC tbd 200.0 0.0 0.0 200.0 tbd 100.0

Dhaka Water Supply Network Improvement Project

WUS TI-M IEG/ESG/ GCD/GEM

SAUW 2015 tbd 250.0 0.0 0.0 250.0 tbd 0.0

Total tbd 780.0 0.0 0.0 780.0 tbd 450.0

2017 Firm Flood and Riverbank Erosion Risk Management Investment Program (tranche 2)

ANR TI-G IEG/ESG/ GCD/GEM/ KNS/PAR

SAER tbd 0.0 100.0 0.0 100.0 tbd 0.0

8 Appendix 2


Targeting

Strategic Agendas


Year of

PPTA/ PDA

Cost ($ million)

Totala

ADBb

Gov’t Co-

finance

Market-based OCR


ADF Grants Total

Secondary Education Sector Investment Program (tranche 3)

EDU TI-M IEG/GCD/ GEM/PAR

SAHS 2012 tbd 0.0 225.0 0.0 225.0 tbd 100.0

Skills for Employment Investment Program (tranche 3)


SAHS 2011 tbd 0.0 150.0 0.0 150.0 tbd 200.0

Dhaka Metro Project (TA loan)

TRA GI IEG/ESG/ RCI/GCD/

GEM

SATC tbd 0.0 10.0 0.0 10.0 tbd 0.0

SASEC Road Connectivity Project II (tranche 1)

TRA GI IEG/RCI/ GCD/PSD/

PAR

SATC tbd 350.0 0.0 0.0 350.0 tbd 200.0

Third Urban Governance and Infrastructure Improvement Project (additional financing)

WUS GI IEG/ESG/ GCD/GEM/ KNS/PAR

SAUW tbd 150.0 50.0 0.0 200.0 tbd 50.0

Total tbd 500.0 535.0 0.0 1,035.0 tbd 550.0

2017 Standby Information Technology Parks for Employment

EDU TI-G IEG/GCD/ GEM/PSD/

PAR

SAHS 2016 tbd 250.0 0.0 0.0 250.0 tbd 150.0

Second Power System Expansion and Efficiency Improvement Investment Program (tranche 1)

ENE GI IEG/PSD/ ESG/KNS/

PAR

SAEN 2016 tbd 300.0 0.0 0.0 300.0 tbd 400.0

Rural Hybrid Power Development Project

ENE GI IEG/ESG/ PAR

SAEN 2016 tbd 120.0 0.0 0.0 120.0 tbd 30.0

Housing Finance Facility FIN GI IEG/ESG/ GEM/PSD

SAPF 2016 tbd 100.0 0.0 0.0 100.0 tbd 0.0

Appendix 2 9


Targeting

Strategic Agendas


Year of

PPTA/ PDA

Cost ($ million)

Totala

ADBb

Gov’t Co-

finance

Market-based OCR


ADF Grants Total

Urban Health Sector Reform Program Phase 1

HLT TI-H IEG/GCD/ GEM/PSD/

PAR

SAHS 2016 tbd 150.0 0.0 0.0 150.0 tbd 40.0

Rolling Stock Investment Program (tranche 1)

TRA GI IEG/RCI/ GCD/PAR

SATC tbd 350.0 0.0 0.0 350.0 tbd 150.0

Total tbd 1,270.0 0.0 0.0 1,270.0 tbd 770.0

2018 Firm Flood and Riverbank Erosion Risk Management Investment Program (tranche 3)

ANR TI-G IEG/ESG/ GCD/GEM/ KNS/PAR

SAER tbd 0.0 90.0 0.0 90.0 tbd 0.0

Crop Diversification and Value Chain Infrastructure Development Project

ANR TI-H IEG/GCD/ GEM/KNS/

PSD

SAER 2016 tbd 0.0 200.0 0.0 200.0 tbd 0.0

Ganges-Kobadak Irrigation Project

ANR GI IEG/GCD/ GEM/KNS/

PSD

SAER 2016 tbd 0.0 150.0 0.0 150.0 tbd 0.0

SASEC Chittagong–Cox's Bazar Railway Project Phase 1 (tranche 2)


PAR

SATC tbd 200.0 0.0 0.0 200.0 tbd 100.0

SASEC Dhaka–Chittagong Railway Project Phase 1 (tranche 1)


PAR

SATC tbd 300.0 0.0 0.0 300.0 tbd 200.0

City Region Development Investment Program (tranche 1)

WUS GI IEG/ESG/ GCD/GEM/

PAR

SAUW 2016 tbd 30.0 120.0 0.0 150.0 tbd 50.0

Total tbd 530.0 560.0 0.0 1,090.0 tbd 350.0

10 Appendix 2


Targeting

Strategic Agendas


Year of

PPTA/ PDA

Cost ($ million)

Totala

ADBb

Gov’t Co-

finance

Market-based OCR


ADF Grants Total

2018 Standby Fourth Primary Education Development Program


SAHS 2017 tbd 0.0 300.0 0.0 300.0 tbd 300.0

Natural Gas Development and Distribution Project (tranche 2)

ENE GI IEG/ESG/ GCD/PAR

SAEN tbd 350.0 0.0 0.0 350.0 tbd 150.0

Grid-Connected Solar PV Plants 2x100 MWp

ENE GI IEG/ESG/ PAR

SAEN tbd 250.0 0.0 0.0 250.0 tbd 250.0

SASEC Roads Project III (tranche 1)

TRA GI IEG/RCI/ GCD/PSD/

PAR

SATC tbd 200.0 0.0 0.0 200.0 tbd 50.0

Dhaka Metro Project Phase 1 (tranche 1)

TRA GI IEG/ESG/ GCD/GEM/

PAR

SATC tbd 200.0 0.0 0.0 200.0 tbd 200.0

Total tbd 1,000.0 300.0 0.0 1,300.0 tbd 950.0 ADB = Asian Development Bank, ADF = Asian Development Fund, ANR = agriculture, natural resources, and rural development; BRM= Bangladesh Resident

Mission, EDU = education, ENE = energy, ESG = environmentally sustainable growth, FIN = finance, GCD = governance and capacity development, GEM = gender equity and mainstreaming, GI = general intervention, Gov’t = government, HLT = health, IEG = inclusive economic growth, KNS = knowledge solutions, MWp = megawatt-peak, OCR = ordinary capital resources, PAR = partnerships, PDA = project design advance, PPTA = project preparatory technical assistance, PSD = private sector development, PV= photovoltaic, RCI = regional cooperation and integration, SAEN = South Asia Energy Division, SAER = South Asia Environment, Natural Resource, and Agriculture Division; SAHS = South Asia Human and Social Development Division, SAPF = South Asia Public Management, Financial Sector, and Trade Division; SASEC = South Asia Subregional Economic Cooperation, SATC = South Asia Transport and Communications Division, SAUW = South Asia Urban Development and Water Division, TA = technical assistance, tbd= to be determined, TI-G = targeted intervention—geographic dimensions of inclusive growth, TI-H = targeted intervention—income poverty at household level, TI-M = targeted intervention—Millennium Development Goals, TRA = transport, WUS = water supply and other urban infrastructure and services.

a The total cost and total financing do not tally because PDAs estimated at $7 million will be refinanced by the ensuing loans, scheduled for 2018. b This reflects the approved combination of ADF lending operations with the OCR balance sheet that will become effective on 1 January 2017. c The PDA will be refinanced by the ensuing $200 million OCR loan scheduled for 2018 for the Crop Diversification and Value Chain Infrastructure Development

Project. d The PDA will be refinanced by the ensuing $30 million OCR and $110 million ADF loans scheduled for 2018 for the City Region Development Investment

Program (tranche 1). Source: Asian Development Bank estimates.

Appendix 2 11

Table A2.2: Nonlending Products and Services, 2016-2018

Assistance Name Sector Division Assistance

Type

Sources of FundingADB Others

Total ($'000)Source

Amount ($'000) Source

Amount ($'000)

2016 Preparing Ganges-Kobadak and Teesta Barrage Irrigation Project

ANR SAER PPTA TASF 225.0 0.0 225.0

Supporting Third Primary Education Development Program (additional financing)

EDU BRM CDTA TASF 500.0 0.0 500.0

Supporting Skills for Employment Investment Program (tranche 2)

EDU SAHS CDTA TASF 500.0 0.0 500.0

Preparing Fourth Primary Education Development Program

EDU SAHS PPTA 0.0 tbd 800.0 800.0

Preparing Information Technology Parks for Employment

EDU SAHS PPTA TASF 400.0 eKorea 400.0 800.0

Preparing Second Power System Expansion and Efficiency Improvement Program

ENE SAEN PPTA TASF 500.0 0.0 500.0

Sustainable Management of Solar Pumps for Agricultural Irrigation

ENE SAEN CDTA 0.0 CEFPF 1,000.0 1,000.0

Preparation of Rural Hybrid Power Systems in Bangladesh

ENE SAEN PPTA 0.0 CEFPF/Others 1,500.0 1,500.0

Preparing Urban Health Sector Reform Program Phase 1

HLT SAHS PPTA 0.0 tbd 700.0 700.0

Strengthening Public Sector Institutions PSM BRM CDTA TASF 800.0 eKorea 500.0 1,300.0 Capacity Building for Portfolio Management (additional financing)

PSM BRM CDTA TASF 225.0 0.0 225.0

Supporting SASEC Railway Connectivity TRA SATC CDTA TASF 500.0 tbd 500.0 1,000.0 Preparing City Region Investment Program WUS SAUW PPTA TASF 400.0 0.0 400.0

Total 4,050.0 5,400.0 9,450.0

12 Appendix 2


Type


Total ($'000)Source


Amount ($'000)

2017 Automation of Meteorological Information and Climate Service

ANR BRM CDTA 0.0 tbd 1,500.0 1,500.0

Preparing Solar PV Photovoltaic Power Development Project

ENE SAEN PPTA 0.0 CEFPF 1,500.0 1,500.0

Supporting Housing Finance Project FIN SAPF CDTA TASF 500.0 0.0 500.0 Capacity Building for Portfolio Management (additional financing)

PSM BRM CDTA TASF 225.0 0.0 225.0

Updating Road Sector Strategy and Road Master Plan

TRA SATC CDTA TASF 1,500.0 tbd 500.0 2,000.0

Strengthening Capacity of DWASA WUS SAUW CDTA TASF 500.0 0.0 500.0 Capacity Building for Urban Governance and Infrastructure

WUS BRM CDTA TASF 750.0 0.0 750.0

Total 3,475.0 3,500.0 6,975.02018 Supporting Energy Research Council ENE BRM CDTA TASF 500.0 0.0 500.0 Supporting Bangladesh Railway Reform Program

TRA SATC CDTA TASF 1,000.0 0.0 1,000.0

Metro Capacity Development and NAMA TRA SATC CDTA TASF 1,000.0 0.0 1,000.0 Strengthening Capacity of City Corporations WUS SAUW CDTA TASF 1,000.0 0.0 1,000.0

Total 3,500.0 0.0 3,500.0ADB = Asian Development Bank, ANR = agriculture, natural resources, and rural development, BRM= Bangladesh Resident Mission, CDTA = capacity development technical assistance, CEFPF= Clean Energy Financing Partnership Facility, DWASA= Dhaka Water Supply and Sewerage Authority, EDU = education, ENE = energy, FIN = finance, HLT = health, NAMA = National Appropriate Mitigation Action, PPTA = project preparatory technical assistance, PSM = public sector management, SAEN = South Asia Energy Division, SAER = South Asia Environment, Natural Resource and Agriculture Division, SAHS = South Asia Human and Social Development Division, SAPF = South Asia Public Management, Financial Sector, and Trade Division; SASEC = South Asia Subregional Economic Cooperation, SATC = South Asia Transport and Communications Division, SAUW = South Asia Urban Development and Water Division, TASF = Technical Assistance Special Fund, tbd= to be determined, TRA = transport, WUS = water and other urban infrastructure and services. Source: Asian Development Bank estimates.

Appendix 3 13

ASSISTANCE PROGRAM FOR CURRENT YEAR

Table A3.1: Lending Products, 2015


Targeting

Strategic Agendas


Year of

PPTA/ PDA

Cost ($ million)

Totala

ADB

Gov’t Co-

finance

ADF

OCR ADF Grants Total Firm Southwest Area Integrated Water Resources Planning and Management Project (additional financing)

ANR TI-G IEG/ESG/ GEM/GCD/

PAR

SAER 2012 tbd 0.0 45.0 0.0 45.0 tbd 7.0

Rural Connectivity Program (PDA)b

ANR TI-G IEG/GCD/ GEM/KNS/

PAR

SAER tbd 0.0 2.0 0.0 2.0 tbd 0.0

Secondary Education Sector Investment Program (tranche 2)

EDU GI IEG/PAR/ GEM/GCD

SAHS tbd 0.0 185.0 0.0 185.0 tbd 323.0

Third Primary Education Development Program (additional financing)

EDU GI IEG/GEM/ GCD/

PAR/KNS

SAHS tbd 0.0 120.0 0.0 120.0 tbd 546.0

Second SASEC Bangladesh–India Electrical Grid Interconnection Project

ENE GI IEG/GEM/ GCD/PSD

SAEN tbd 35.0 85.0c 0.0 120.0 tbd 0.0

Power System Expansion and Efficiency Improvement Investment Program (tranche 3)

ENE GI IEG/ESG/ PAR/PSD

SAEN tbd 205.0 0.0 0.0 205.0 tbd 220.0

Third Capital Market Development Program

FIN TI-M IEG/GCD/ GEM/PSD

SAPF tbd 150.0 100.0 0.0 250.0 tbd 0.0

Railway Rolling Stock Project

TRA GI IEG/RCI/ GCD

SATC tbd 200.0 0.0 0.0 200.0 tbd 0.0

14 Appendix 2


Targeting

Strategic Agendas


Year of

PPTA/ PDA

Cost ($ million)

Totala

ADB

Gov’t Co-

finance

ADF

OCR ADF Grants Total Additional Financing for Subregional Transport Project Preparatory Facility (TA loan)

TRA GI IEG SATC tbd 0.0 30.0 0.0 30.0 tbd 0.0

Total tbd 590.0 565.0 0.0 1,155.0 0.0 1,096.0

Standby Railway Sector Investment Program (tranche 4)

TRA GI IEG/ESG/ GCD/PAR

SATC tbd 50.0 0.0 0.0 50.0 tbd 129.0

Small and Medium Enterprise II

FIN GI IEG/GEM/ PSD

SAPF tbd 200.0 0.0 0.0 200.0 tbd 0.0

Total tbd 250.0 0.0 0.0 250.0 tbd 129.0ADB = Asian Development Bank, ADF = Asian Development Fund, ANR = agriculture, natural resources, and rural development; EDU = education, ENE = energy, ESG = environmentally sustainable growth, FIN = finance, GCD = governance and capacity development, GEM = gender equity and mainstreaming, GI = general intervention, Gov’t = government, IEG = inclusive economic growth, KNS = knowledge solutions, OCR = ordinary capital resources, PAR = partnerships, PDA = project design advance, PPTA = project preparatory technical assistance, PSD = private sector development, RCI = regional cooperation and integration, SAEN = South Asia Energy Division, SAER = South Asia Environment, Natural Resource, and Agriculture Division; SAHS = South Asia Human and Social Development Division, SAPF = South Asia Public Management, Financial Sector, and Trade Division, SASEC = South Asia Subregional Economic Cooperation, SATC = South Asia Transport and Communications Division, TA = technical assistance, tbd= to be determined, TI-G = targeted intervention—geographic dimensions of inclusive growth, TI-M = targeted intervention—Millennium Development Goals, TRA= transport. a The total cost and total financing do not tally because PDA estimated at $2 million will be refinanced by the ensuing loan scheduled for 2016. b The PDA will be refinanced by the ensuing $150 million OCR and $64 million ADF loans for the Rural Infrastructure Maintenance Program, scheduled for 2016. c ADF amount includes $35 million RCI pool.

Source: Asian Development Bank estimates.

Appendix 3 15

Table A3.2: Nonlending Products and Services, 2015


Type


Total ($'000) Source


Amount ($'000)

Education and Skills Development II EDU SAHS CDTA 0.0 JFPR 1,500.0 1,500.0 Enabling Poor Women's Benefits from Enhanced Access to Energy in Hatiya Island

ENE BRM CDTA 0.0 eKorea 500.0 500.0

Supporting Third Capital Market Development FIN SAPF CDTA TASF 400.0 eKorea 300.0 700.0 SME Capacity Development Project FIN SAPF CDTA 0.0 tbd 2,000.0 2,000.0 Preparing Dhaka Metro Project TRA SATC PPTA TASF 1,300.0 0.0 1,300.0

Total 1,700.0 4,300.0 6,000.0ADB = Asian Development Bank, BRM = Bangladesh Resident Mission, CDTA = capacity development technical assistance, EDU = education, ENE = energy, FIN = finance, JFPR = Japan Fund for Poverty Reduction, PPTA = project preparatory technical assistance, SAHS = South Asia Human and Social Development Division, SAPF= South Asia Public Management, Financial Sector, and Trade Division, SATC = South Asia Transport and Communications Division, SME= small and medium-sized enterprise, TASF = Technical Assistance Special Fund, tbd= to be determined, TRA = transport. Source: Asian Development Bank estimates.

16 Appendix 4

LIST OF INDICATIVE KNOWLEDGE PUBLICATIONS AND EVENTS

Table A4.1: Knowledge Products (Publications and Events), 2016

Title of Publication or Event Subject Type Department or Sector

Group or Thematic Group Technical

Assistance Asian Development Outlook 2016 chapter on

Bangladesh Economics Knowledge publication ERCD

Asian Development Outlook 2016 Update chapter on Bangladesh

Economics Knowledge publication ERCD

Asian Development Outlook Supplement (June and December) section on Bangladesh


Bangladesh Quarterly Economic Update (4 issues) Economics Knowledge publication ERCD Bangladesh Economic Indicators Update (6 issues) Economics Knowledge publication ERCD Domestic Cost Escalation Factor (2 issues) Economics Knowledge publication SARD Development Effectiveness Review Economics Knowledge publication SPD Country Fact Sheet Economics Knowledge publication DER CPS sector assessment and road map—agriculture, and natural resources

Agriculture Road map report SARD

CPS sector assessment and road map—education Education Road map report SARD CPS sector assessment and road map—energy Energy Road map report SARD CPS sector assessment and road map—finance Finance Road map report SARD CPS sector assessment and road map—transport Transport Road map report SARD CPS sector assessment and road map—urban and

water Urban Road map report SARD

Total Number of Publications: 14 CPS = country partnership strategy, DER= Department of External Relations, ERCD = Economic Research and Regional Cooperation Department, SARD = South Asia Regional Department, SPD = Strategy and Policy Department. Source: Asian Development Bank estimates.

Appendix 4 17

Table A4.2: Additional Knowledge Publications and Events Delivered, 2015

Title of Publication or Event Subject Type

Department or Sector Group or Thematic

Group Technical

Assistance Asian Development Outlook 2015 chapter on Bangladesh


Asian Development Outlook 2015 Update chapter on Bangladesh


Asian Development Outlook 2015 Supplement (June and December) section on Bangladesh

Economics Knowledge publication SARD

Bangladesh Quarterly Economic Update (2 issues) Economics Knowledge publication SARD Bangladesh Economic Indicators Update (3 issues) Economics Knowledge publication SARD Domestic Cost Escalation Factor Economics Knowledge publication SARD Development Effectiveness Review Economics Knowledge publication SPD Country Fact Sheet Economics Knowledge publication DER CPS assessment—poverty Poverty Assessment report SARD CPS assessment—private sector Private sector Assessment report SARD CPS assessment—governance risk Governance Assessment report SARD CPS assessment—gender Gender Assessment report SARD CPS assessment—environment Environment Assessment report SARD CPS Country Economic Analysis Economics Assessment report SARD Total number of publications = 14 CPS = country partnership strategy, DER = Department of External Relations, ERCD = Economic Research and Regional Cooperation Department, SARD = South Asia Regional Department, SPD= Strategy and Policy Department. Source: Asian Development Bank estimates.

18 Appendix 4

Table A4.3: Innovation, Advanced Technology, and Pilot Initiatives to be Implemented in 2016

Item Nature Project Number

Sector or Theme Division

PDA for rural connectivity program (results-based lending) PLT ANR SAER Road safety auditing on selected highway corridors to ensure road safety by reducing fatal crashes

PLT 2949 TRA SATC

Total Number of Initiatives: 2 ANR = agriculture, natural resources, and rural development; PDA= Project Design Advance, PLT = pilot initiative; TRA= transport; SAER = South Asia Environment, Natural Resource and Agriculture Division; SATC = South Asia Transport and Communications Division. Source: Asian Development Bank estimates.

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