Completion Report

Project Number: 40515-013 Loan Number: 2696 March 2020

Bangladesh: Sustainable Rural Infrastructure

Improvement Project

This document is being disclosed to the public in accordance with ADB's Access to Information Policy.

Currency Equivalents

Currency unit – taka (Tk)

At Appraisal At Project Completion 8 October 2010 30 June 2017

Tk1.00 = $0.0142 $0.0124 $1.00 = Tk70.47 Tk80.83

ABBREVIATIONS ADB – Asian Development Bank BME – benefit monitoring and evaluation D&S – design and supervision DMF – Design and monitoring framework EIRR – economic internal rate of return GAP – gender action plan GCM – growth center market IEE – initial environmental examination ISM

LCS – –

institutional support and monitoring Labor Contracting Society

LGED – Local Government Engineering Department PMO – project management office

NOTE{S}

(i) The fiscal year (FY) of the Government of Bangladesh and its agencies ends on 30 June. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2018 ends on 30 June 2018.

(ii) In this report, “$” refers to United States dollars.

Vice-President Shixin Chen, Operation 1 Officer-in-Charge Diwesh Sharan, South Asia Department (SARD) Director Manmohan Parkash, Bangladesh Resident Mission (BRM), SARD Team leaders Soon Chan Hong, Senior Economist, BRM, SARD

Md. Humayun Kabir, Procurement Officer, BRM, SARD Team members Kazi Akhmila, Associate Safeguards Officer (Resettlement), BRM, SARD Farhat Jahan Chowdhury, Senior Project Officer (Environment), BRM,

SARD Nusrat Chowdhury, Associate Project Analyst, BRM, SARD Minhajur Rahman Khan, Associate Safeguards Analyst, BRM, SARD Nasheeba Selim, Senior Social Development Officer (Gender), BRM,

SARD

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

BASIC DATA i I. PROJECT DESCRIPTION 1 II. DESIGN AND IMPLEMENTATION 1

A. Project Design and Formulation 1 B. Project Outputs 2 C. Project Costs and Financing 3 D. Disbursements 4 E. Project Schedule 4 F. Implementation Arrangements 4 G. Technical Assistance 5 H. Consultant Recruitment and Procurement 5 I. Gender Equity 6 J. Safeguards 6 K. Monitoring and Reporting 7

III. EVALUATION OF PERFORMANCE 8 A. Relevance 8 B. Effectiveness 8 C. Efficiency 9 D. Sustainability 10 E. Development Impact 11 F. Performance of the Borrower and the Executing Agency 12 G. Performance of Cofinanciers 12 H. Performance of the Asian Development Bank 13 I. Overall Assessment 13

IV. ISSUES, LESSONS, AND RECOMMENDATIONS 13 A. Issues 13 B. Lessons 14 C. Recommendations 14

APPENDIXES 1. Design and Monitoring Framework 16 2. Project Cost at Appraisal and Actual 18 3. Project Cost by Financier 19 4. Disbursement of ADB Loan and Grant Proceeds 21 5. Technical Assistance Completion Report 22 6. Contract Awards of ADB Loan and Grant Proceeds 31 7. Environmental Safeguards Measures 32 8. Land Acquisition and Resettlement Impact 34 9. Status of Compliance with Loan Covenants 35 10. Implementation of Gender Action Plan and Achievements 40 11. Economic Reevaluation 57

Basic Data A. Loan Identification

1. Country Bangladesh 2. Loan number and financing source 2696-BAN(SF) 3. Project title Sustainable Rural Infrastructure

Improvement Project 4. Borrower People’s Republic of Bangladesh 5. Executing agency Local Government Engineering

Department 6. Amount of loan SDR38,271,000

B. Loan Data

1. Appraisal – Date started – Date completed

26 July 2010 10 August 2010

2. Loan negotiations – Date started – Date completed

11 October 2010 12 October 2010

3. Date of Board approval 11 November 2010

4. Date of loan agreement 11 April 2011

5. Date of loan effectiveness – In loan agreement – Actual – Number of extensions

10 May 2011 10 May 2011 0

6. Project completion date – Appraisal – Actual

30 June 2016 30 June 2017

7. Loan closing date – In loan agreement – Actual – Number of extensions

31 December 2016 31 December 2017 1

8. Financial closing date – Actual

24 September 2018

9. Terms of loan – Interest rate – Maturity (number of years) – Grace period (number of years)

1% per annum during the grace period, thereafter 1.5% per annum 32 8 years

ii

10. Disbursements

a. Dates

Initial Disbursement 13 December 2011

Final Disbursement 23 February 2018

Time Interval 84.46 months

Effective Date 10 May 2011

Actual Closing Date 31 December 2017

Time Interval 80.9 months

b. Amount ($ million)

Category

Original Allocation

(1)

Increased during

Implementation (2)

Canceled during

Implementation (3)

Last Revised

Allocation (4=1+2–3)

Amount Disbursed

(5)

Undisbursed Balance (6 = 4–5)

Civil Works 44.43 1.67 0.00 46.11 46.11 0.00 Equipment 0.55 0.00 0.12 0.43 0.43 0.00 Equipment Maintenance

0.39 0.00 0.01 0.37 0.37 0.00

Capacity Development

0.39 1.17 0.00 1.50 1.50 0.00

D&S Consultants

3.47 0.00 0.47 3.00 3.00 0.00

ISM Consultants

0.86 0.00 0.16 0.70 0.70 0.00

Interest Charges

1.64 0.00 0.21 1.42 1.42 0.00

Unallocated 8.28 0.00 8.28 0.00 0.00 0.00 Total 60.00 2.79 9.25 53.54 53.54 0.00

C. Project Data

1. Project cost ($ million)

Cost Appraisal Estimate Actual

Foreign exchange cost 6.94 2.96 Local currency cost 101.47 134.19 Total 108.41 137.15

2. Financing plan ($ million)

Cost Appraisal Estimate Actual

Implementation cost Borrower financed 32.51 66.62 ADB financed 60.00 52.12 Other external financing 15.90 16.99 Total implementation cost 108.41 135.73

Interest during construction costs Borrower financed ADB financed 1.63 1.42 Other external financing Total interest during construction cost 1.63 1.42

iii

3. Cost breakdown by project component ($ million)

Component Appraisal Estimate Actual

Civil Works 44.43 46.11 Mechanical and Equipment 0.55 0.44 Design Supervision Consultant 3.47 3.00 Institutional Support and Monitoring Consultant 0.86 0.71 Capacity Development 0.39 1.50 Salaries 0.00 0.00 Equipment Operation and Maintenance 0.39 0.37 Financial Charges 1.64 1.42 Unallocated 8.28 0.00 Total 60.00 53.54

4. Project schedule

Item Appraisal Estimate Actual

Date of contract with consultants Design and Supervision Consultant Institutional Support and Monitoring Consultant

January 2011 January 2011

26 June 2012 26 June 2012

Civil works contract Date of award July 2011 July 2012-Dec 2016 Completion of work December 2015 Nov 2013-Dec 2017 Equipment and supplies Dates First procurement January 2011 June 2012 Last procurement June 2016 December 2015

5. Project performance report ratings

Implementation Period

Ratings

{Development Objectives} {Implementation Progress}

From 1 May 2011 to 31 December 2011 Satisfactory Satisfactory From 1 January 2012 to 31 December 2012 Satisfactory Satisfactory From 1 January 2013 to 31 December 2013 On Track From 1 January 2014 to 31 December 2014 On Track From 1 January 2015 to 31 December 2015 On Track From 1 January 2016 to 31 December 2016 On Track From 1 January 2017 to 31 December 2017 On Track

D. Data on Asian Development Bank Missions

Name of Mission Date No. of

Persons No. of

Person-Days Specialization of Members

Fact-finding 26 July–10 August 2010 7 98 a,b,c,d,e,f

Review 1 20 Feb-15 Mar 2013 4 100 d,e,g,h

Review 2 26 Jan-10 Feb 2014 3 42 d,f,j

Review 3 (MTR) 20 Nov-10 Dec 2014 3 60 d,e,i

Review 4 6 -24 Aug 2017 4 72 d,k,l,m

Note: a = natural resources economist, b = director’s advisor, c = counsel, d = sr. project/project implementation officer e = social development and gender officer, f = economist, g = consultant, h = project analyst, i = economic officer, j = gender specialist, k = associate project analyst, l = associate project officer (safeguards), m = operation assistant

I. PROJECT DESCRIPTION 1. Better rural infrastructure fosters the balanced development of rural economies through mutually reinforcing growth in the farm and non-farm sectors. Enhancing the rural poor’s mobility, through rural road development, allows them to avail of health, education, and nongovernment services, as well as a wide range of economic opportunities. Rural road investments can cut poverty significantly through increased agricultural production, higher wages, lower input and transportation costs, better educational attainment, and higher output prices. Despite improvements in rural infrastructure in Bangladesh, the share of the rural population with access to all-weather roads, and paved rural roads was lower than that of other South Asian countries at the time of project appraisal. Only 37% of the rural population had access to all-weather roads, compared with 60% in India and 61% in Pakistan. In South Asia, 57% of road networks were paved, while only 25% were paved in Bangladesh. The main problems in fostering rural road connectivity were (i) rapidly growing demand for road transport; (ii) lack of funds to develop infrastructure; (iii) lack of enforcement of government policies and regulations on road safety; (iv) inadequate maintenance funding; and (v) lack of technical skills and capacity building of local government institutions.1 2. To help realize the full growth potential of rural areas, ADB approved a loan of $60 million to Bangladesh from Special Funds resources on 11 November 2010 for the Sustainable Rural Infrastructure Improvement Project (footnote 1). A project preparatory technical assistance (TA) for $500,000 prepared a detailed feasibility study of the project, based on the initial feasibility study prepared by the executing agency.2 In addition, KfW cofinanced the project through a grant of €13 million equivalent. The government was to finance up to 30% of the total project cost. ADB also approved a TA project of $500,000 to support the Local Government Engineering Department (LGED) in institutionalizing women’s benefits from rural infrastructure initiatives.3

3. The project aimed to reduce rural poverty in the project areas. The envisaged outcome was widened access to economic opportunities and social services for the poor and women. This was to be achieved through three outputs: (i) improved road connectivity; (ii) upgraded marketing facilities with specific provision for women; and (iii) improved rural infrastructure management.

II. DESIGN AND IMPLEMENTATION A. Project Design and Formulation 4. The project design and formulation at appraisal were aligned with the country strategy and program 2006-2010 for Bangladesh.4 Identifying sustainable economic growth as a strategic focus, the country strategy and program aimed to help the rural poor boost productivity, diversify production, and stimulate off-farm activity by strengthening farm-to-market linkages. Investment in infrastructure including rural roads was one of the core areas of operations under Strategy

1 ADB. 2010. Report and Recommendations of the President to the Board of Directors: Proposed Loan to the People’s

Republic of Bangladesh for the Sustainable Rural Infrastructure Improvement Project. Manila. 2 ADB. 2009. Technical Assistance for Sustainable Rural Infrastructure Improvement. Manila 3 ADB. 2010. Technical Assistance Report: Technical Assistance to the People’s Republic of Bangladesh for the

Support to Local Government Engineering Department in Institutionalizing Women’s Benefits from Rural Infrastructure Initiatives. Manila.

4 ADB. 2005. Country Strategy and Program: Bangladesh, 2006-2010. Manila

2

2020.5 The government also emphasized rural infrastructure development with a focus on road connectivity in the National Strategy for Accelerated Poverty Reduction II.6 5. The design and monitoring framework (DMF), including the performance targets and indicators, was appropriate considering the aim of poverty reduction in rural areas, the coverage of the project, and the expected and desired project benefits. At completion, the actual number of road components had increased significantly to 204, compared to 93, as estimated at project appraisal; this resulted in additional contract packages and a cost overrun. The project modality of a project loan from concessional ordinary capital resources was appropriate considering the nature of the project, which mainly funded rural infrastructure development with significant economic benefits, but without generating revenue. During formulation and implementation of the project, the stakeholders and beneficiaries were consulted to validate the priority of the subprojects and generate ownership. 6. The project design remains aligned with the current country partnership strategy for Bangladesh, 2016-2020, which aims to accelerate rural and regional development to make growth more inclusive.7 It continues to align with Strategy 2030, which identifies support for better market connectivity to promote rural development and food security as an operational priority.8 In its Seventh Five Year Plan, the government recognizes that rural road development is critical to socio-economic development and poverty reduction by reducing road user costs and the costs of production, creating employment opportunities including for women, increasing the mobility of working people, expanding the markets, and supporting human capital resource development.9 The project did not require any changes in design during implementation. The DMF, including the project achievements, is in Appendix 1. B. Project Outputs

1. Road Connectivity 7. The outputs envisaged under this component were (i) upgrading of 700 km of upazila roads to bituminous surface standard, (ii) upgrading of 100 km of union roads to bituminous surface standard, (iii) construction of 3,270 meters of bridges and culverts on upazila and union roads, and (iv) creation of 13,000 person-years of employment for women. At completion, the project has upgraded to bituminous surface standard 716 km along 110 upazila roads and 185 km along 41 union roads, constructed 4,322 meters of bridges and culverts on upazila and union roads, and created 13,232 person-years of employment for women during the construction of the roads, improvement of the markets, and planting of trees.

2. Marketing facilities with specific provision for women 8. The outputs envisaged under this component included (i) improvement of 92 growth center market (GCM) facilities with 15% space allocation for women, (ii) completion of a women’s market section in 50 markets with about 500 shops, (iii) installation of renewable energy in three GCMs,

5 ADB. 2008. Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank 2008-2020. Manila. 6 Government of Bangladesh, Planning Commission. 2009. Steps towards Change: National Strategy for Accelerated

Poverty Reduction II, FY2009–2011. Dhaka. 7 ADB. 2016. Country Partnership Strategy: Bangladesh, 2016-2020. Manila 8 ADB. 2018. Strategy 2030—Achieving Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific. Manila 9 Government of Bangladesh, Planning Commission. 2015. Seventh Five Year Plan FY2016-FY2020—Accelerating

Growth, Empowering Citizens. Dhaka

3

covering the sections for women, and (iv) installation of piped water supply in three GCMs.10 At completion, the project improved 88 GCMs with 15% space allocation for women with paved trading areas, sheds, improved water supply systems, adequate drainage and sanitation facilities, and market offices. Four GCMs could not be supported by the project because no land was available. Women’s market sections have been set up in 42 markets containing 6 to 12 shops in each GCM, totaling 336 shops for women traders. This is below the target because of a shortage of market space and a lack of eligible female shop owners in the locality. The project installed piped water in three selected GCMs, and a renewable solar energy system in another four GCMs, electrifying women’s sections using solar photovoltaic cells.

3. Rural infrastructure management 9. The outputs envisaged under this component were (i) the training of 1,510 LGED staff and 5,218 Union Parishad members, (ii) the introduction of performance-based approaches to improve Union Parishad governance, with a focus on women participation, (iii) the development of a climate-change-resilient rural infrastructure management plan and vulnerability mapping, (iv) awareness training on climate change and mitigation measures, and (v) the piloting and development of a sustainable road maintenance plan. The project, at completion, had trained about 1,700 LGED staff and 7,500 Union Parishad members, and conducted 1,369 equivalent trainee-days of awareness training on climate change and mitigation measures. The project developed a climate-change-resilient rural infrastructure management plan and vulnerability mapping, and a sustainable rural road maintenance management plan. It also designed and implemented three pilot performance-based maintenance and management contracts, with a focus on women participation. C. Project Costs and Financing 10. At appraisal, the total project costs were estimated at $108.41 million. ADB was to finance 55.3% of project costs amounting $60 million through a loan. The project was to be cofinanced for $15.9 million (equivalent to €13 million, based on July 2010 exchange rate) or 14.7% of project costs through a grant from KfW, on a parallel basis. The government was to finance the remaining 30% of the project costs, amounting to $32.5 million including taxes and duties. Expenditure in local currency was estimated at 93.6% of the total costs while the remaining 6.4% was in foreign currency. 11. At the closing of accounts, the actual project costs were at $137.15 million, based on an exchange rate of Tk80 to $1. ADB cancelled $1.596 million as the executing agency was not able to submit the substantiation for liquidation of some final disbursements before loan closure. The main reason for the cost overrun was the increased cost of civil works from $88.21 million at appraisal to $120.45 million. The project covered more upazila and union roads, and bridges and culverts than planned in terms of both length and number, which resulted in additional contracts and a higher amount (paragraph 5). The increased amount was covered by reductions in other categories, contingencies, and additional financing from the government. Details of project costs at appraisal and actual, and project costs by financier are in Appendixes 2 and 3.

10 A growth center market (GCM) is a rural market identified by the government as a focal point for area development.

In a GCM, common public facilities like pavement and drainage in the market area, internal roads, multipurpose sheds, fish sheds, meat sheds, tube wells, sanitary latrines, garbage pits, market offices, and a women’s market section are established.

4

D. Disbursements 12. At project completion, ADB had disbursed $53.54 million. Two advance accounts, one for ADB and another for KfW, were opened and ensured the timely flow of funds for effective project implementation, efficient accounts management of the expenditure procedures, and reimbursement of eligible expenditures and liquidation of advances. However, disbursements were not made according to the projected schedule, mainly because of the start-up delay in recruiting and fielding the consultants, which consequently delayed the selection of subprojects. The delay was mainly caused by the lengthy processes of the government, ADB, and KfW, which required approvals from various levels. Recruitment was further delayed during the technical evaluation by ambiguity regarding one consulting firm’s country of company registration, which caused administrative delays of about three months. An unspent amount of $1.596 million was refunded to ADB’s account. The Audited Project Financial Statements submitted by the EA adds up $55.19 million of disbursement, which is $1.65 million higher than ADB’s disbursement record. The reconciliation statement submitted by the EA clarified that this is because the Audited Project Financial Statements include the amounts which were disallowed by ADB. A comparison of the actual disbursements with the projections is in Appendix 4. E. Project Schedule 13. At appraisal, the project was to be completed in 54 months by June 2016 and closed by 31 December 2016. The loan became effective on 10 May 2011, but the project experienced a start-up delay. To fully achieve the objectives of the project, ADB extended the closing date of the loan for one year, from 31 December 2016 to 31 December 2017. Physical progress was slow during the first two years because of the delays in the recruitment and fielding of the consultants, which delayed preparation of the subproject appraisal reports. As a result, procurement of civil works could not be started. In particular, the contracts for some of the bridges, performance-based maintenance and management, piped water supply in GCMs, and installation of renewable energy extended beyond the original loan closing date. All subprojects supported by ADB financing were completed by December 2017.

F. Implementation Arrangements 14. LGED was the executing agency under the Local Government Division of the Ministry of Local Government, Rural Development and Cooperatives. An inter-ministerial steering committee was established, headed by the Local Government Division Secretary, and conducted regular meetings to provide overall policy guidance for project implementation. A suitably staffed project management office (PMO) was established at LGED headquarters in Dhaka to implement the project. The PMO, headed by a project director, had three regional offices in LGED’s Rajshahi, Rangpur, and Jessore district offices, each headed by a deputy project director who supervised the day-to-day project activities. The Chief Engineer of LGED, assisted by its project monitoring and evaluation unit, coordinated project implementation. 15. The PMO was assisted by (i) a design and supervision consultant, and (ii) an institutional support and monitoring consultant, who conducted capacity development, economic and financial evaluations, social and gender development, environmental and climate assessment, and monitoring and evaluation of the project. The LGED’s district offices, headed by executive engineers, and upazila offices worked closely with unions and market management committees to implement the project activities under the guidance of the PMO. The Labor Contracting Society (LCS) mobilized poor and landless men and women for road construction and maintenance, as well as for planting and caring for roadside trees.

5

16. The implementation arrangements were adequate and worked well at all levels. The continuous assignment of a competent and experienced project director from project preparation onwards and regular stakeholder participation and consultation were important factors for the successful and timely implementation of the project. No changes were made to the implementation arrangements determined at appraisal. G. Technical Assistance 17. ADB provided project preparatory TA to prepare a detailed feasibility study of the project, based on the initial feasibility study prepared by the executing agency (footnote 2). The project preparatory TA was satisfactorily implemented. A participatory approach was adopted in the preparation of the initial feasibility study, involving extensive consultations with all stakeholders and potential beneficiaries down to the grass-roots level. The selection of the project components was determined by five main criteria: (i) economic, (ii) technical and engineering, (iii) equity, (iv) environmental, and (v) poverty and social; and the selection was confirmed with the local community.11 18. Project implementation was supported by an associated TA project of $500,000.12 The TA was designed to build the capacity of the staff of the LGED in fostering the participation of women in local governance structures and processes. It was targeted to achieve two outputs: (i) development of an agreed set of elements to enhance women’s participation in local governments’ decision-making and planning on rural infrastructure initiatives, and (ii) piloting of a performance-based approach to women’s participation in local governments. The second output included the provision of incentives (funds) to local governments for building rural infrastructure that meet the agreed performance standards on women’s participation. The first output was reflected in the gender action plan (GAP) of the project, while the second was reflected in both the GAP and DMF. With 245.5 person months of consulting services, the TA effectively achieved the intended outputs and outcome, and is assessed as relevant, effective, and efficient. Therefore, the overall assessment of the TA is rated successful. The TA completion report is in Appendix 5. H. Consultant Recruitment and Procurement 19. Two consulting firms were engaged, one for design and supervision (D&S) and the other for institutional support and monitoring (ISM) for the capacity building of LGED staff and benefit monitoring. The recruitment of both consulting firms was processed through the quality- and cost-based selection method, following the Guidelines on the Use of Consultants by Asian Development Bank and its Borrowers (2010, as amended from time to time), as agreed in the loan agreement. The recruitment of the D&S consultant and their mobilization were delayed by about 18 months because of procedural complications (paragraph 12). The D&S contract, like the loan closing date, was extended for one year up to 31 December 2017, and two variations were made regarding the person-months of international and national experts. The two packages of supporting consulting services consisted of (i) D&S services of 48 person-months of international and 1,368 person-months of national experts after two variations, and (ii) ISM services of 48 person-months of international and 228 person-months of national experts.

11 ADB. 2010. Technical Assistance Consultant’s Report. Bangladesh: Sustainable Rural Infrastructure Improvement

Project. Manila. 12 ADB. 2010. TA 7720-BAN: Support to Local Government Engineering Department in Institutionalizing Women’s

Benefits from Rural Infrastructure Initiatives (financed by the Japan Fund for Poverty Reduction).

6

20. Procurement of civil works and goods followed the provisions of ADB’s Procurement Guidelines (2010, as amended from time to time). In total, 342 procurement packages for civil works, goods, and services were awarded through national competitive bidding, applying the single stage, one-envelope procedure. No significant problems were encountered during the procurement process. However, the procurement of three performance-based maintenance and management contracts was delayed because of the unfamiliarity of the executing agency and the local contractors on the scope of the contracts and the evaluation process. This resulted in the lengthy preparation of the tender documents and retendering of the packages. A list of contract awards by year is in Appendix 6. 21. The performance of the consultants under the two consultancy contracts was satisfactory. The engineering designs prepared by the D&S consulting firm were adequate, while supervision of the 331 subproject contract packages was generally satisfactory. The ISM consulting firm effectively strengthened and trained local government personnel. Active supervision and monitoring by the executing agency and the D&S consultant on a continuous basis ensured the quality of the civil works. The cost and quality of the vehicles and equipment that were procured compared favorably with general market conditions. Except for a few contracts, the performance of the civil works contractors was satisfactory. The performance of the suppliers of construction equipment, vehicles, and office equipment was also satisfactory, and no major problems or disputes were encountered.

I. Gender Equity 22. As one of the project themes was gender equity, a GAP was prepared, which sought to reduce women’s poverty and facilitate their empowerment. The GAP also aimed to (i) increase women’s mobility through improving rural infrastructure to facilitate their access to markets and to extension and social services, (ii) build women’s confidence, and (iii) ensure their increased participation in local government, infrastructure planning, and decision-making. The GAP was implemented successfully with support from LGED, which played an active role in the overall monitoring and supervision of GAP implementation. The PMO regularly submitted GAP implementation progress reports that included sex-disaggregated data to ADB. Moreover, gender experts regularly participated in the loan review missions and conducted capacity development training for project officials and contractors on gender mainstreaming and GAP orientation. They also reviewed the GAP quarterly progress reports, and provided continuous feedback and support to ensure proper implementation of the GAP and successful completion of the intended activities and targets. The TA also supported the implementation of the GAP (paragraph 18). J. Safeguards 23. The project was categorized as B for the environment, involuntary resettlement, and indigenous peoples. An environmental assessment and review framework and an initial environmental examination (IEE), including an environmental management plan, were prepared by LGED to address the impacts. The potential environmental issues identified in the IEE and considered for mitigation included: (i) soil erosion; (ii) drainage blockage and water logging; (iii) surface and ground water contamination; (iv) dust and noise pollution; and (v) hygiene, sanitation, and the safety of construction workers. An environmental clearance certificate was obtained from the Department of Environment. During implementation, five environmental monitoring reports were submitted and disclosed. The environmental impacts during construction were minimal because environmental mitigation measures were included in the civil works contracts and 1,375 local government officials and project participants received capacity enhancement training on the environment. Roadside trees were planted along 334.33 km of the roads to compensate for tree

7

loss, while bridges and culverts minimized drainage congestion and facilitated the passage of fish. A road safety action plan was implemented for raising awareness among the road users including drivers. The project completion mission confirmed that the implementation of the environmental measures was satisfactory and discussed with the bazaar committee at GCMs further improvement measures for a few minor issues such as maintenance of the public toilet, cleaning drainage, and waste management. Overall, the environmental safeguards status of the project is satisfactory. Details of environmental safeguards measures are in Appendix 7. 24. A resettlement framework and an indigenous peoples planning framework have also been prepared and disclosed on the project website. As the existing right-of-way of rural roads was planned to be developed, both Project Administration Manual and Report and Recommendation of the President to the Board of Directors anticipated only small strips of land acquisition with no relocation impacts. 13 During implementation, 15 residential and commercial structures were affected and 6 resettlement plans were prepared and disclosed. The project allocated budget for the acquisition of 13.06 acres of land as stipulated in the resettlement plans. However, only 8.24 acres of land were acquired from 89 households and 0.49 acres of land were voluntarily donated. Details of the land acquisition are attached in Appendix 8. All land acquisition and resettlement activities were completed by 2017. In addition to compensation for lost assets, the project ensured vulnerability assistance, compensation for loss of income as well as contingencies for assistance with moving, and repairs or compensation for damaged property. 14 The semiannual social safeguards monitoring reports were submitted and disclosed. According to the final indigenous peoples report, the project had no negative impact on any indigenous communities or their cultural heritage. The scopes of all the six resettlement plans were fully achieved. Overall, the social safeguards status of the project is satisfactory. K. Monitoring and Reporting 25. All the loan covenants were complied with, either by the target date or within a reasonable time thereafter. No covenant was modified during implementation. The detailed status of compliance with loan covenants is in Appendix 9. 26. The PMO established a project performance management system under the project to support the data requirements of a fully integrated results-based management system. This enabled it to monitor deviations between the project plan and ongoing results and take corrective actions and decisions to achieve the targets. The PMO, through the ISM consultant, conducted baseline survey in 12 project districts and submitted the results to ADB and KfW. The consultant also prepared a terminal survey report for project benefit monitoring and evaluation purposes. The PMO submitted annual monitoring reports to ADB and KfW. The government, ADB, and KfW conducted several joint review missions, including a midterm review, during which they reviewed progress in physical implementation and financial performance, and prepared agreed action plans to address the implementation issues. 27. LGED submitted (i) quarterly progress reports; (ii) consolidated annual reports containing (a) progress achieved by output as measured through each indicator's performance target, (b) key implementation issues and solutions; (c) the updated procurement status, and (d) the updated implementation plan for the next 12 months; and (iii) a project completion report in May 2018, which was within 6 months of the physical completion of the project in December 2017.

13 PAM page 26, paragraph-54-55; 14 Semiannual Monitoring Report IR-January 2018, Table-10 in page-15;

8

28. To comply with the covenants, LGED maintained separate records and accounts on transactions for goods and services financed by the loan. An advance account with Bangladesh Bank and operating accounts with a commercial bank were maintained for project expenditure. LGED submitted to ADB the audited financial statements in a timely manner, together with the associated auditor's report. Eight audit observations for FY2017 and one audit observation for FY2018 had not been settled at loan closing. However, by March 2020, eight audit observations were settled by the Foreign Aided Project Audit Directorate and LGED was requested to submit additional documents for the remaining one observation for FY2018. LGED has replied to the Foreign Aided Project Audit Directorate regarding the remaining audit observation. It is expected that the issue will be settled by June 2020.

III. EVALUATION OF PERFORMANCE A. Relevance 29. The project is rated relevant at appraisal and completion. The project formulation at appraisal was aligned with the government’s development objectives described in the National Strategy for Accelerated Poverty Reduction II, and ADB’s country strategy and program for Bangladesh 2006-2010 and Strategy 2020 (paragraph 4). While the poverty rate in Bangladesh had decreased from 48.9% in 2000 to 31.5% in 2010, the poverty rate in rural areas was significantly higher at 35.2% in 2010 than in urban areas at 21.3%. Specifically, the western divisions of Bangladesh covered by the project had higher poverty rates in 2010 (Khulna: 32.1%, Rajshahi: 29.7%, and Rangpur: 42.3%) than other divisions (Barisal: 39.4%, Chittagong: 26.2%, Dhaka: 30.5%, and Sylhet: 28.1%). 15 Therefore, the project’s focus on rural infrastructure development in western divisions was considered appropriate (paragraph 5). Only subprojects that were not supported by other development partners were selected to avoid any duplication. At completion, the project remained aligned with the development objectives of the Seventh Five Year Plan, the country partnership strategy for Bangladesh 2016-2020, and Strategy 2030 (paragraph 6). In addition to rural infrastructure development, the project scope for local government capacity building and gender equity was highly relevant. Weak project preparation caused a start-up delay and cost-overrun during implementation as not all subprojects were assessed during project design and preparation (paragraph 5). The project incurred a cost overrun, as more upazila and union roads with bridges and culverts than targeted had to be supported by the project. The DMF has not been changed and remains appropriate. B. Effectiveness 30. The project is rated less than effective. The output targets of all three components were substantially achieved (paragraphs 7–9). However, there were shortcomings in meeting project outcome targets. The benefit monitoring and evaluation (BME) Post-Terminal Focused Survey, conducted in December 2016, indicated that (i) around 4.14 million (against the target of 4.2 million) people have improved access to markets and social services including health and education;16 (ii) average travel time has reduced by 53% for non-motorized vehicles and 15% for

15 Bangladesh Bureau of Statistics. 2019. Final Report on Household Income and Expenditure Survey 2016. Dhaka 16 If the same assumptions and methodology are used in estimating the number of beneficiaries (4 km on each side of

the roads to be improved as the area of influence and a population density of 1,050 persons/km2, and 0.84 million people benefited from the 92 GCMs), it is estimated that about 4.59 million people benefited from 901 km of the upgraded road and 88 improved. GCMs.

9

motorized vehicles (against the target of 50% reduction);17 (iii) the average transport cost has fallen by 27.5% for non-motorized vehicles and 6% for motorized vehicles (against the target of 60%); (iv) the annual average farm income per household does not show any perceptible improvement (against the target of a 49% increase); (v) income opportunities have been generated for nearly 700,000 unskilled women for completed and ongoing road works, 6,027 for roadside shops, 492 for improved markets, and 242 for tree planting and caring (against the target of 100,000); and (vi) the wage differentials between women and men barely changed (against the target of a 10% reduction). As a result, two out of six outcome targets were achieved or substantially achieved, two partially achieved, and the remaining two were not achieved. 31. While the BME survey does not indicate any improvement in income, supplementary data from the Final Report on Household Income and Expenditure Survey 2016 shows significant improvement in the income level. At the district level, the monthly household income has increased from Tk9,569 to Tk19,629 in Khulna Division, from Tk9,342 to Tk13,663 in Rajshahi Division, and from Tk8,359 to Tk10,547 in Ranpgur Division between 2010 and 2016. At the national level, the monthly household income in rural areas has increased from Tk9,648 in 2010 to Tk13,398 in 2016 (footnote 15). Ensuring equal wages for women and men for equal work was a challenge, even though the contractors were oriented and construction works were closely monitored and supervised, because of the local practice of unequal wages for female and male unskilled laborers, and contractors’ unwillingness to pay equal wages. Importantly, the achievements were poor- and gender-friendly, as reductions in travel time and transport costs were larger for non-motorized vehicles than motorized vehicles, and the improved access resulted in better improvement for female school enrollment and attendance rates and female access to health services. 32. The measures implemented for environmental safeguards and resettlement were satisfactory. Environmental issues identified at the initial stage of project implementation were satisfactorily mitigated. The project carried out several public consultations including coordination with local stakeholders. The communities and indigenous peoples in the project vicinity have benefited from the improved transport and market facilities.

33. The DMF indicated gender-related targets at the outcome and output levels. The GAP consisted of 15 activities and 20 quantitative targets. All the gender-related output targets in the DMF were consistently reflected in the GAP. In addition, the GAP introduced activities to promote social inclusion and help women sustain and grow their incomes and develop other sources of livelihood through acquiring new skills. The project successfully implemented all 15 activities and achieved 16 (80%) of the 20 quantitative gender targets. The details of the GAP achievements are in Appendix 10.

C. Efficiency 34. The project is rated efficient. The economic internal rate of return (EIRR) for the rural roads and GCMs has been recalculated separately. The EIRR for the rural roads covers all 901 km upgraded by the project and that for the GCMs covers all 88 GCMs. The economic benefits from the rural road upgrades are savings from vehicle operating costs and travel time, while the economic benefits from the GCM improvement are savings from the reduced deterioration of farm products. To estimate the economic benefits from rural roads and GCM improvement, a survey

17 This indicator is one of the key variables used to estimate the project economic benefits and is directly reflected in

the EIRR calculation. While the achievement was lower than the target, the project was efficient in generating the intended economic benefits.

10

was conducted for a sample of 12 roads (9 upazila and 3 union roads) and 9 GCMs, which were monitored through the BME throughout project implementation. The result of the survey is used in estimating the project’s benefits covering all rural roads and GCMs. The EIRR of the rural roads is estimated at 23.1%, which is slightly lower than the 26.4% at appraisal. The EIRR of the GCMs is estimated at 23.3%, slightly higher than the 22.4% at appraisal. The sensitivity analyses with the adverse variation in project benefits also indicate that the combined EIRRs are well above 12%. The lower EIRR for rural roads is because of the increased construction cost and delay in project implementation; however, the reduction in the EIRR is not significant as the project covered a greater length of rural roads than planned, generating additional benefits. The details of the economic reevaluation are in Appendix 11. Despite cost overruns (paragraph 11) and a start-up delay (paragraph 12), the process is considered efficient as the project achieved substantial outputs with just a one-year extension with additional financing from the government. The cost overruns and start-up delay are reflected in the EIRR calculation. D. Sustainability 35. The project is rated likely sustainable. The project has improved LGED’s capacity in climate change-resilient infrastructure design, construction, engineering, maintenance management, quality control, and environmental and climate change adaptation. This will contribute to the sustainable maintenance of the rural infrastructure managed by LGED. All rural roads and GCMs improved by the project are functional and being maintained at the desired standard. The infrastructure improved by the project is sound and resilient to the normal environmental conditions. 36. LGED has a well-established maintenance planning and budget allocation system. The Road Maintenance and Road Safety Unit of LGED has developed a Road and Structure Database Management System, which contains comprehensive and reliable road inventory and condition information. Based on the information in the system, LGED assesses yearly road maintenance requirements to prepare the annual maintenance program. The government also launched the Rural Roads and Bridge Maintenance Policy in 2013, which commits to fund road maintenance on an incremental basis. Based on the policy, LGED’s budget allocation for rural road maintenance has been increasing by 15.6% per year on average from about $95 million in FY2013 to $185 million in FY2018. However, because of large and increasing financing needs for development projects throughout the country and weak domestic resource mobilization capacity, the government’s budget allocation alone is not sufficient to meet the development and maintenance needs of the rural roads. 37. To overcome this challenge, the project has piloted performance-based maintenance and management contracts for three rural roads, as set out in the Sustainable Rural Roads Maintenance Management Plan. The performance-based maintenance and management contract involves a transfer of maintenance works from the public sector to the private sector, lessening the fiscal burden on the government. Since this approach is considered more cost effective for sustainable rural road maintenance, LGED continues to apply this practice in other rural road improvement projects, including ADB’s Rural Connectivity Improvement Project.18

38. Furthermore, for sustainable management of the rural infrastructure, LGED has now started to allocate 25% of the funding for the maintenance of all rural road projects, and commits to prioritizing the allocation of funds for the maintenance of rural roads over new construction.

18 ADB. 2018. Report and Recommendations of the President to the Board of Directors: Proposed Loans and Technical

Assistance Grant to the People’s Republic of Bangladesh for the Rural Connectivity Improvement Project. Manila.

11

The rural roads improved by the project are classified as higher categories which LGED has prioritized for maintenance. LGED included these roads in its maintenance rolling plan with increased amount of maintenance fund allocated from government’s non-development budget. In addition, the project adopted several measures to enhance future sustainability such as mobilizing women beneficiaries through the labor contracting services to plant and maintain trees along the roadside. Also, the government is implementing several rural road rehabilitation projects and continues to seek support from development partners under which sustainable maintenance is a key component. 39. The project outputs and outcome are also environmentally and socially sustainable. The completed roads have resulted in smooth travel. No obstructions were observed on bridges and culverts; road traffic signs were relatively adequate; and vegetation was growing well on the road embankments. At completion, the cleanup and rehabilitation of disturbed areas were implemented satisfactorily. The completed roads have reduced dust pollution in the vicinity and helped to improve livelihoods and local access to farms, as well as to social and welfare institutions. E. Development Impact 40. The project impact is satisfactory. It has had significant impact on rural connectivity and economic and social opportunities for the rural population. The project has also generated significant employment for rural people including unskilled women during project implementation and maintenance, established new shops at the roadside, and improved rural markets. By reducing the transport cost and time (paragraph 30), it has given rural people easier access to social services. According to the BME survey, the total enrollment rate in the roadside schools increased by 48% from 2012 to 2016 and the number of health services providers beside the roads almost doubled, with greater benefit for women. It also strengthened the institutional capacity of LGED and other local government institutions for operation and maintenance of the rural roads and GCMs. 41. The project is unlikely to have significant negative environmental impacts. The IEE report, including an environmental management plan, was prepared in accordance with the ADB Safeguard Policy Statement (2009). An environmental clearance certificate was obtained from the Department of Environment, Bangladesh to meet the requirement of the Environmental Conservation Act 1995 (Amended in 2010) and Environmental Conservation Rules 1997. The environmental monitoring reports showed improvements in environmental management. Outstanding environmental issues were followed up by PMO and resulted in the satisfactory implementation of environmental mitigation measures. At completion, cleanup and rehabilitation of project areas were carried out satisfactorily.

42. The project is unlikely to have involuntary resettlement impacts or negative impacts on any indigenous people. A Resettlement Framework and an Indigenous Peoples Planning Framework were prepared and disclosed on the project website. The project minimized the land acquisition impact, with only 8.73 acres being acquired, which is less than the planned 13.06 acres. In addition to compensation for lost assets, the project ensured vulnerability assistance, compensation for loss of income as well as contingency for shifting assistance, and repair or compensation for damaged property. No negative impact on any indigenous community or their cultural heritage was identified in the final indigenous peoples report. 43. The project also achieved significant positive impacts on gender equity. Through the achievement of gender-related actions and targets in the DMF and GAP, the project brought practical gender benefits including reduced water fetching time, increased mobility, acquisition of

12

knowledge and skills for other livelihood options, effective management of businesses and rural infrastructure, income generation, and new livelihood options. In addition, the project achieved strategic gender benefits including the development of self-confidence, increased voice in family and community decision-making, and the creation of institutional venues for women’s voice in local governance.

44. The project contributed to the ADB results framework by increasing rural infrastructure assets (i.e., upgrade of 716 km of upazila roads and 185 km of union roads and improving 88 GCMs) and benefitting 4.14 people from increased rural investment.19

45. The project is expected to achieve the poverty reduction target. The project has an impact indicator for the population in the project areas living in poverty being reduced by six percentage points five years after project completion. According to the Final Report on Household Income and Expenditure Survey 2016 (footnote 14), the poverty levels in rural areas showed non-uniform change from 31.0% (2010) to 27.3% (2016) in Khulna Division, from 30.0% (2010) to 30.6% (2016) in Rajshahi Division, and from 44.5% (2010) to 48.2% (2016) in Rangpur Division. While the poverty level improved in Khulna Division, external factors hindered the achievement of the poverty reduction target in the other two divisions. Reasons for the non-uniform changes in the poverty level include (i) slow progress on education and demographic change in the rural areas of western Bangladesh; (ii) less impact from the agriculture sector on reducing poverty due to slower growth in agriculture sector during the period; and (iii) a smaller share of rural households in the western area pursuing non-agricultural livelihoods.20 However, considering the higher economic development after 2016 , recovery in agriculture sector growth, the estimated national level of poverty,21 and the emphasis on balanced development set out in the current government’s election manifesto, the rural areas of western Bangladesh are likely to achieve the poverty reduction target set by the project. F. Performance of the Borrower and the Executing Agency 46. The performance of the borrower and executing agency is rated satisfactory. The borrow met the loan effectiveness requirements without delay and the loan became effective within one month of signing the loan agreement. LGED, the executing agency, made a concerted effort to implement the project, despite a start-up delay in recruiting and fielding the consultants. The large number of subprojects across 21 districts created an administrative challenge, but LGED coordinated the project implementation activities well, with minimum delays and in close collaboration with ADB and KfW. LGED, through its district offices, coordinated closely with the local stakeholders including unions and market management committees. The government provided adequate counterpart funding and complied with most of the covenants. G. Performance of Cofinanciers 47. KfW cofinanced a grant for €13 million equivalent on a parallel basis, funding five districts in Khulna Division. The cooperation between ADB and KfW was smooth during project preparation and processing, and KfW signed its Financial Cooperation agreement with the government on 23 June 2011, about two months after ADB’s loan agreement. While project

19 Strategy 2030 Operational Priority 5⎯Promoting Rural Development and Food Security, 2019-2024 (specifically

contributing to tracking indicator 5.1.1 and results framework indicator 5, respectively). 20 World Bank. 2019. Bangladesh Poverty Assessment – Facing old and new frontiers in poverty reduction. Washington

D.C. 21 In its publication, Poverty and Extreme Poverty Rate of Bangladesh 2018-2019, the Bangladesh Bureau of Statistics

estimates that the national level of poverty declined to 20.5% in FY2019.

13

implementation by ADB and KfW was independent, KfW cooperated with ADB in reviewing project progress by conducting three joint review missions and holding meetings with ADB during KfW’s review missions. KfW put a strong emphasis on the participation of women in infrastructure planning, design, and implementation. In addition, KfW carried out supplementary work by using unspent funds from the preceding Second Rural Infrastructure Improvement Project, which improved 46.64 km of upazila roads and 18.16 km of union roads. H. Performance of the Asian Development Bank 48. ADB’s performance is rated as satisfactory. ADB cooperated well with the borrower and the executing agency in formulating the project and processing the loan. ADB provided adequate support both prior to loan signing and effectiveness and during project implementation. Delegation of the project to the Bangladesh Resident Mission in February 2012 promoted good interaction among ADB, KfW, LGED, consultants, and contractors. During implementation, ADB staff actively monitored the project and advised LGED on project implementation matters through four regular review missions and consultations. A joint midterm review mission was conducted by the Government, ADB, and KfW at an appropriate time to review the key project implementation issues. Despite the large number of contracts, ADB reviewed and provided no objection to the contract awards. ADB also made disbursements in a timely manner, closely monitored progress, and provided timely interventions to resolve implementation issues, which contributed to the successful implementation of the project. I. Overall Assessment 49. The project is rated successful based on the assessment of its relevance, effectiveness, efficiency, and sustainability. The project is rated relevant as the intended outcomes were largely aligned with country development priorities and pertinent to ADB country partnership strategies at appraisal and completion. The project is rated less than effective because of shortcomings in meeting the project outcomes, despite substantial achievement of the outputs. The project is rated efficient as the re-evaluated EIRR is greater than 12%, and process efficiency was positive. The project is likely sustainable considering the government’s strong commitment to rural road maintenance planning and the budget allocation system and initiatives.

Overall Ratings Criteria Rating

Relevance Relevant Effectiveness Less than effective Efficiency Efficient Sustainability Likely sustainable Overall Assessment Successful Development impact Satisfactory Borrower and executing agency Satisfactory Performance of ADB Satisfactory

ADB = Asian Development Bank. Source: Asian Development Bank.

IV. ISSUES, LESSONS, AND RECOMMENDATIONS

A. Issues 50. Project design. The project had a wide coverage of 21 districts in western Bangladesh, with the subprojects being evenly distributed among these districts. While this contributed to the inclusive development of the rural area, it limited the combined impact of the subprojects. It also

14

caused a huge administrative burden for project implementation because of the scattered locations of the project sites. As a result, many contracts had to be processed and only a few subprojects could be bundled into a single contract. 51. Gender Equity. Given the project’s gender equity theme, a GAP was prepared to support the project in reducing women’s poverty and facilitating their empowerment. While most of the GAP activities were completed and targets were achieved, there were challenges in ensuring equal wages for women and men for equal value of work, and in giving women access to decision-making at the local government level.

52. Project readiness. The project experienced a start-up delay and cost-overrun because of the weak project readiness. The delayed consultant recruitment resulted in delays in the preparation of the subproject appraisal reports. Subsequently, procurement of some civil works was delayed, particularly some of the bridge contracts, performance-based maintenance and management contracts, and piped water supply and renewable energy contracts in GCMs, which were innovative components of the project. Also, as not all subprojects were assessed during the project design and preparation, the actual number of road components significantly increased, resulting in more contract packages and a cost overrun.

B. Lessons 53. Poverty reduction in western rural areas has slowed since 2010 because of slow progress on education and demographic change, less impact from the agriculture sector on reducing poverty, and a smaller share of rural households pursuing non-agricultural livelihoods in the region (paragraph 45). Considering these developments in western rural areas, the improved rural connectivity would likely become more effective if it were supplemented by other initiatives such as investment in education, non-agricultural activities, and value chain development. 54. During the implementation of the GAP, it became evident that the long-term employment opportunities provided by the project, such as through LCSs for the most vulnerable and disadvantaged women, can have a positive impact on the lives of poor and destitute rural women.

55. Innovative and participatory approaches can strengthen the sustainability of the rural infrastructure, which often suffers from the lack of a maintenance budget. Various measures were adopted by the project, such as performance-based maintenance and management contracts, capacity building for maintenance management, and mobilizing beneficiaries for tree planting in the project area. These are expected to contribute to the sustainable maintenance of the improved rural infrastructure. C. Recommendations 56. Future monitoring. LGED should continue to (i) monitor the project benefits, including the impacts, for 5 years after completion; (ii) maintain the quality of the improved rural roads and GCMs through routine and periodic maintenance; and (iii) monitor the new initiatives addressed by the project including performance-based maintenance and management contracts. 57. Further action or follow-up. The project implemented new initiatives for rural roads and GCM improvement, including the application of climate mapping and performance-based maintenance and management contracts for rural roads, renewable energy and piped water supply installation in GCMs, and performance-based allocation. LGED should expand these management and improvement initiatives to other rural roads and GCMs. LGED should also (i)

15

complete the remaining activities under the GAP such as the training of female shop owners and women in LCSs to ensure that the good practices introduced by the project are sustained; and (ii) monitor environmental compliance measures for GCMs. 58. Timing of the project performance evaluation report. Considering the project’s impact target of 6 percentage point poverty reduction 5 years after project completion, the project performance evaluation should be undertaken in 2022.

16 Appendix 1

DESIGN AND MONITORING FRAMEWORK

Design Summary Performance Indicators and Targets Project Achievements

Impact Reduced rural poverty in intervention areas

5 years after project completion: Population in project areas living in poverty reduced by 6 percentage points 2010 Baseline: 42.7%

By 2016: Poverty levels of rural areas changed - From 31.0% (2010) to 27.3% (2016) in Khulna Division - From 30.0% (2010) to 30.6% (2016) in Rajshahi Division - From 44.5% (2010) to 48.2% (2016) in Rangpur Division

Outcome Widened access to economic opportunities and social services for poor and women

At the end of project: 4.2 million people have all-weather access to markets and providers of social services, including health and education Annual average travel time for project households to access desired markets reduced to 230,000 hours from 460,000 hours Average transport cost of farm produce to preferred market reduced to Tk0.04/kg/km from Tk0.1/kg/km Average annual farm income per household increased by 49% (2010 baseline: Tk8,720) Income opportunities generated for 100,000 unskilled women Wage differentials between women and men reduced by 10% in project areas (2008 baseline: 40%)

About 4.14 million people have improved access to markets and social services including health and education (substantially achieved) Average travel time has reduced by 53% for non-motorized vehicles and 15% for motorized vehicles1 (partially achieved) Average transport cost has reduced by 27.5% for non-motorized vehicles and 6% for motorized vehicles2 (partially achieved) Annual average farm income per household not significantly changed (not achieved) Income opportunities for unskilled women has been generated for nearly 700,000 women (exceeded) The wage differentials between women and men barely changed (not achieved)

Outputs

1. Road connectivity improved

700 km of upazila roads upgraded to bituminous surface standard 100 km of union roads upgraded to bituminous surface standard

716 km of upazila roads upgraded to bituminous surface standard (exceeded) 185 km of union roads upgraded to bituminous surface standard (exceeded)

1 As data for annual average travel time for project households to access desired markets is not available,

supplementary data– average travel time (minutes per kilometers) by motorized vehicles and non-motorized vehicles- is used to assess this indicator. The average travel time by motorized vehicles and non-motorized vehicles was collected by the institutional support and monitoring consultant through baseline and terminal surveys.

2 As single rate for transport cost for motorized vehicles and non-motorized vehicles is not available, separate data of transport cost for motorized vehicles and non-motorized vehicle is used to assess this indicator. The transport cost for motorized vehicles and non-motorized vehicle was collected by the institutional support and monitoring consultant through baseline and terminal surveys.

Appendix 1 17

Design Summary Performance Indicators and Targets Project Achievements

2. Marketing facilities upgraded with specific provision for women 3. Rural infrastructure management improved

3,270 meters of bridges and culverts on upazila and union roads constructed 13,000 person-years of employment created for women 92 GCM facilities improved with 15% space allocation for women Women’s market section completed in 50 markets with about 500 shops Renewable energy installed in 3 GCMs covering sections for women Piped water supply installed in 3 GCMs 1,510 LGED staff and 5,218 UP members trained Performance-based approaches to improve UP governance with a focus on women’s participation introduced Climate-change-resilient rural infrastructure management plan and vulnerability mapping developed Awareness training on climate change and mitigation measures conducted Sustainable road maintenance plan piloted and developed

4,322 meters of bridges and culverts on upazila and union roads constructed (exceeded) 13,232 person-years of employment for women created (achieved) 88 GCMs facilities improved with 15% space allocation for women (substantially achieved) Women’s market section completed in 42 markets with 336 shops (partially achieved) Renewable energy installed in 4 GCMs covering section for women (exceeded) Piped water supply installed in 3 GCMs (achieved) 1,700 LGED staff and 7,500 UP members trained (exceeded) 3 pilot performance-based maintenance and management contracts programs implemented with a focus on women participation (achieved) Climate change resilient rural infrastructure management plan and vulnerability mapping developed (achieved) 1,369 equivalent trainee-days of awareness training on climate change and mitigation measures conducted (achieved) Sustainable rural road maintenance plan developed (achieved)

LGED = Local Government Engineering Department, GCM = growth center market, UP = union parishad Source: LGED baseline survey, March 2014, LGED benefit monitoring and evaluation post-terminal focused survey, December 2016, LGED PCR, July 2018, Asian Development Bank PCR survey 2019.

18 Appendix 2

PROJECT COST AT APPRAISAL AND ACTUAL ($ million)

Appraisal Estimate Actual

Item Foreign

Exchange Local

Currency Total Cost Foreign

Exchange Local

Currency Total Cost

A. Investment Cost 1. Civil Works 0.00 88.21 88.21 0.00 120.45 120.45 2. Mechanical Equipment 0.13 0.70 0.83 0.00 0.77 0.77 3. Consultant a. D&S Consultants 3.47 0.00 3.47 0.95 4.63 5.58 b. ISM Consultants 1.71 0.00 1.71 0.59 2.21 2.79 4. Capacity Development 0.00 0.77 0.77 0.00 2.62 2.62 Subtotal (A)

5.31 89.68 94.98 1.54 130.67 132.21

B. Recurrent Cost 1. Salaries 0.00 0.82 0.82 0.00 1.71 1.71 2. Equipment O& M 0.00 0.39 0.39 0.00 0.46 0.46 Subtotal (B)

0.00 1.21 1.21 0.00 2.13 2.13

C. Contingencies 1. Physical Contingencies 0.00 4.81 4.81 0.00 0.00 0.00 2. Price escalation 0.00 5.77 5.77 0.00 0.00 0.00 Subtotal (C)

0.00 10.58 10.58 0.00 0.00 0.00

D. Financing Charges During Construction Interest at 1% of ADB Fund 1.64 0.00 1.64 1.42 0.00 1.42 Subtotal (D)

1.64 0.00 1.64 1.42 0.00 1.42

Total (A+B+C+D) 6.94 101.47 108.41 2.96 132.84 135.801

Note: 1. KfW’s remaining fund of $1.35 million from Second Rural Infrastructure Improvement Project was utilized under the project, making the total project cost at $137.15 million. Source: Asian Development Bank estimates.

Appendix 3 19

PROJECT COST BY FINANCIER

Table A3.1: Project Cost at Appraisal by Financier ($ million)

ADB

KfW GOB

Total Cost

Amount % of Cost Category Amount

% of Cost Category Amount

% of Cost Category Amount

Taxes and Duties

Item

A. Investment Costs

1. Civil Works 44.43 50.37% 13.92 15.78% 29.86 33.85% 88.214 7.65

2. Mechanical and equipment 0.55 66.55% 0 0.00% 0.28 33.45% 0.828 0.28 3. Consultants

a. D& S Consultants 3.47 100.00% 0 0.00% 0 0.00% 3.468 0.15 4.

b. ISM Consultant Capacity Development

0.86 0.39

50.53% 50.72%

0.85 0.38

49.47% 49.28%

0 0.00%

0.00% 0.00%

1.71 0.765

0.07

Subtotal (A) 49.70 52.33% 15.14 15.94% 30.14 31.73% 94.985 8.15 B. Recurrent Costs

1 Salaries 0 0.00% 0 0.00% 0.82 100% 0.822 0.00 2 Equipment operation and

maintenance 0.39 100.00% 0 0.00% 0 0.00% 0.387 0.02

Subtotal (B) 0.39 32.01% 0 0.00% 0.82 67.99% 1.209 0.02 Total Base Cost (A+B) 50.09 52.07% 15.14 15.74% 30.96 32.18% 96.194 8.17

C. Contingencies 8.28 78.22% 0.76 7.15% 1.55 14.63% 10.581 0.42 D. Financial Charges During

Implementation 1.64 100.00% 0 0.00% 0.00 0.00% 1.635 0.00

Total Project Cost (A+B+C+D) 60.00 55.35% 15.90 14.67% 32.51 29.99% 108.41 8.59 % Total Project Cost

55.35%

14.67% 29.99%

100%

Note: Numbers may not sum precisely because of rounding. Source: Asian Development Bank estimates.

20 Appendix 3

Table A3.2: Project Cost at Completion by Financier

ADB

KfW GOB

Total Cost

Amount % of Cost Category Amount

% of Cost Category Amount

% of Cost Category Amount

Taxes and Duties

Item {A} {A/D} {B} {B/D} {C} {C/D} {D} {E}

A. Investment Costs

1. Civil works 46.11 38.28% 14.29 11.86% 60.05 49.86% 120.45 12.91 2. Mechanical and equipment 0.44 56.71% 0 0.00% 0.33 43.29% 0.77 0.07 3. Consultants

a. D&S Consultants 3.00 53.81% 0 0.00% 2.58 46.19% 5.58 1.29 b. ISM Consultants 0.70 25.12% 0.69 24.59% 1.41 50.29% 2.79 0.81

4. Capacity Development 1.50 57.40% 0.66 25.19% 0.46 17.42% 2.62 0.24 Subtotal (A) 51.75 39.14% 15.64 11.83% 64.82 49.03% 132.21 15.32

B. Recurrent Costs

1. Salaries 0 0.00% 0 0.00% 1.71 100.00% 1.71 0 2. Equipment operation and

maintenance 0.37 82.10% 0 0.00% 0.08 17.9% 0.46 0.04

Subtotal (B) 0.37 17.24% 0 0.00% 1.79 82.79% 2.17 0.04 Total Base Cost (A+B) 52.12 38.79% 0 0.00% 66.62 49.58% 134.38 15.36

C. Contingencies 0 0.00% 0 0.00% 0 0.00% 0 0 D. Financial Charges During

Implementation 1.42 100.00% 0 0.00% 0 0.00% 0 0

Total Project Cost (A+B+C+D) 53.54 39.41% 15.64 11.52% 66.62 49.06% 135.81 15.36 % Total Project Cost

39.41%

11.52% 49.06%

Note: 1. KfW’s remaining fund of $1.35 million from Second Rural Infrastructure Improvement Project was utilized under the project, making the total project cost at $137.15 million. 2. Numbers may not sum precisely because of rounding. Source{s}: Asian Development Bank estimates.

Appendix 4 21

DISBURSEMENT OF ADB LOAN AND GRANT PROCEEDS

Table 4.1: Annual and Cumulative Disbursement of ADB Loan Proceeds ($ million)

Annual Disbursement Cumulative Disbursement

Year Amount

($ million) % of Total Amount

($ million) % of Total

2012 0.78 1% 0.78 1% 2013 4.50 8% 5.28 10% 2014 11.56 22% 16.83 31% 2015 11.88 22% 28.71 54% 2016 13.75 26% 42.46 79% 2017 10.70 20% 53.16 99% 2018 0.39 1% 53.54 100% Total 53.54 100.0%

ADB = Asian Development Bank. Source: Asian Development Bank.

Figure 4.1: Projection and Cumulative Disbursement of ADB Loan Proceeds

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

2011 2012 2013 2014 2015 2016 2017 2018

Actual and Projected Disbursement

% of Total Actual

% of Total Projected

22 Appendix 5

TECHNICAL ASSISTANCE COMPLETION REPORT

TA Number, Country, and Name: TA 7720-BAN: Support to Local Government Engineering Department in Institutionalizing Women’s Benefits from Rural Infrastructures Initiatives

Amount Approved: $500,000

Revised Amount: Not applicable

Executing Agency: Local Government Engineering Department (LGED)

Source of Funding: $500,000 from Japan Fund for Poverty Reduction and administered by ADB

Amount Undisbursed: $18,542.01

Amount Used: $481,457.99

TA Approval Date: 03 Dec 2010

TA Signing Date: 22 May 2011

TA Completion Date

Original Date: 30 June 2015

Latest Revised Date: 30 June 2016

Financial Closing Date: 30 Nov 2015

Number of Extensions: 1

Description

LGED implements many rural infrastructure projects. In June 2010, for example, it had 53 rural infrastructure projects. Most of these projects were financed by the Government of Bangladesh while some were supported by development partners. LGED’s rural infrastructure and water management projects had been innovative in their approach to addressing governance issues and to increasing the participation of women in local councils and community organizations. But further improvement in the capacity of local government organizations and the involvement of women in decision making was needed. LGED needed a standardized approach to foster women’s participation in and benefit from the rural infrastructure program. It also needed to pilot additional measures for improving engagement of women in development and management of rural infrastructure. During the 2010 country programming mission, the government requested the Asian Development Bank (ADB) to provide capacity development technical assistance (TA) to the Local Government Engineering Department (LGED) to further advance its commitment to gender equality and women’s empowerment in rural infrastructure initiatives. The TA aimed to improve the capacity of the LGED to implement its gender equity action plan by developing a more standardized approach to promote women’s participation in and benefit from rural infrastructure development. To strengthen its role in fostering the participation of women in rural infrastructure development, LGED intended to (i) develop an agreed set of elements of women’s participation in the decision making and planning of local governments on rural infrastructure, and (ii) pilot a performance-based approach to women’s participation in local governments. The TA was consistent with the strategic priorities identified in the country strategy and program, 2006–2010.

Expected Impact, Outcome, and Outputs

The TA was categorized as Gender Equity Theme (GEN). Intended impact was enhancing women’s participation in local governance and the local economy. The outcome was the better knowledge, tools, and gender-related performance criteria used by LGED. The TA aimed to consolidate and build on the innovations achieved by LGED through its rural infrastructure projects. It intended to explore the potential to apply LGED’s experience with performance-based approaches to local government practices related to women’s participation at the Union Parishad

(local government institution) level.1 It had two outputs-(i) improved LGED capacity to engage women in rural

infrastructure initiatives;2 and (ii) performance-based approach to improve women’s participation in Union Parishad

structures and processes.3

1Outcome indicators were-(i) use of tools developed by LGED in project planning; and (ii) pilot Union Parishads consistently meet

performance criteria. 2Output 1 indicated three elements of collaboration-(a) with a subcommittee of the LGED Gender Forum to gain their guidance and

support for these component and to promote the practicality and legitimacy of the outputs, (b) liaison with the LGED monitoring unit, which had an important role in tracking LGED project performance, including in relation to gender equity, and (c) workshop held with LGED rural infrastructure project directors to discuss and refine the proposed list of minimum elements on women’s participation and benefit and made recommendations to the Gender Forum and finalized an agreed set of minimum elements.

3 Output 2 indicated twenty Union Parishads had access to funds for infrastructures development after meeting the performance

standards for women’s participation in local governments and capacity development support was provided to the Union Parishads.

Appendix 5 23

Implementation Arrangements

A consulting firm was recruited to implement TA activities. A total of 245.50 person months of consulting services including seven nationals was used. An individual consultant was also recruited as the team leader for 42-person month. In addition, a national consultant was recruited for a short period of time (nine-person month) to conduct a study on support to local government engineering department in institutionalizing women’s benefits from rural infrastructure initiatives to cover component tone of the TA.

Conduct of Activities

The TA was approved with amount of $500,000 financed by the Japan Fund for Poverty Reduction and $75,000 from the Government of Bangladesh. The TA had a no-cost extension for 12 months to 30 June 2016 to complete the second set of community schemes for selected Union Parishads. Key completed activities included (i) an agreed set of minimum elements related to women’s participation and benefit in designing rural infrastructure projects was developed and used in LGED rural projects; (ii) 20 selected Union Parishads received incentive funds and implemented community driven sub-projects or schemes. Furthermore, the TA conducted a series of capacity development workshops, coaching and training for Union parishad members including women members on gender mainstreaming, leadership skills, financial management and others.

Technical Assistance Assessment Ratings

Criterion Assessment Rating

Relevance The TA is assessed relevant. The design of the outcome, outputs and activities were aligned with development priorities and strategies of the government and ADB. The TA was closely aligned with the government’s priorities in rural development and gender mainstreaming and was consistent with the strategic priorities identified in the ADB country strategy and program, 2006–2010. The consulting firm and individual consultants delivered the technical outputs in quality and was effective in the field.

Relevant

Effectiveness The TA is rated effective. Based on the TA’s success, LGED took a lead in ensuring gender is streamlined across rural infrastructure projects using the above-mentioned criteria. Given that the 20 selected Union Parishads received the first installment of incentive funds but only 16 received the second installment, the project is considered successful in completing the project activities and meeting targets.

Effective

Efficiency The TA is assessed efficient. The TA utilized $481,457.99 (96.3% of total allocation) in fully achieving components one and two.

Efficient

Overall

Assessment

Considering the above criteria, the TA was successful in effectively implementing the key outputs. The TA is also relevant to current LGED mandate in mainstreaming gender in rural infrastructure and other sectors.

Successful

Sustainability The TA is rated sustainable. The TA results have been integrated into the LGED overall Gender Equity Strategy and Gender Action Plan. Also based on the TA success and LGED commitment to gender equality, ADB has processed a new TA on “Institutionalizing gender Equality Practices in the LGED that will streamline gender not only in rural infrastructure but all working sectors of LGED

Most likely sustainable

Lessons Learned and Recommendations

Design and/or planning The roles of the Executing Agency, Implementing Agency, and consultants in the project management structure need to be clearly defined and in-sync with each other. Project designs must include outputs and activities that address strategic gender needs such as integrating women’s voices in decision making and fund allocation.

24 Appendix 5

Implementation and/or delivery Capacity development of the Union Parishads women members need to go beyond training and include building networks and integrating voices in the decision-making process to ensure sustainability of the interventions on the

ground.

Management of staff and consultants

The performance of the consulting firms and individual consultants were generally satisfactory. Individual consultants and the consulting firms delivered good quality reports and executed the contracts on timely manner and implemented to TA activities and gender related targets. The Executing Agency, LGED worked closely with both individual consultants and the consulting firm. LGED performance was satisfactory. They not only provided all logistic and administrative support but was directly involved in the project implementation and supervision of TA activities on the ground. ADB also performed well.

Knowledge building Proper documentation of the knowledge products as well as dissemination with the relevant authority and higher officials is necessary for sustainability of the products.

Stakeholder participation Consultation with community members and local government officials is necessary from the beginning, even during the design phase. During implementation, it is absolutely necessary to have the buy-in of local leaders and civil society representatives as well as active participation of women in community and in local government offices.

Partnership and cofinancing N/A

Replication and/or scaling up The agreed elements of women’s participation in the decision making and planning of local government on rural infrastructure need to be actively integrated and reflected in future local government projects, as well, as reported and monitored on a regular basis. Also, this can be used a guidance for developing similar element in other LGED sectors such as urban and water resources management sectors.

Post-TA financial resource N/A

Other lessons To ensure sustainable benefits, continuous capacity building needs to be integrated at the Union Parishads level beyond the project period.

Follow-up Actions

Lessons learnt suggest that capacity building of the LGED across all sectors and special focus on the LGED Gender Forum is needed to ensure that gender in streamlined in LGED activities especially in infrastructure projects. The TA also recommends that the gender forum is institutionalized into the LGED organogram as a unit to ensure sustainability and credibility within LGED. In this regard, the new TA on Institutionalizing Gender Equality Practices in the LGED will focus on building the forum’s capacity both at the central and district levels, build the capacity of key LGED officials in implementing, monitoring and reporting gender equality results, and share the best practices with other executing agencies to build skills in gender equality.

Prepared by: Nasheeba Selim Designation and Division: Senior Social Development Officer (Gender), BRM

Appendix 5 25

DESIGN AND MONITORING FRAMEWORK Impact(s)

Results Chain Performance Indicators with Targets and

Baselines Achievements

Outcome

Better knowledge, tools, and gender related performance criteria used by LGED

a. Use of tools developed by LGED in project planning

a. The tools developed in the TA spearheaded a study on developing tools for urban sector and LGED continues to integrate rural infrastructure tools through the LGED Gender Forum.

b. Pilot Union Parishads consistently meet performance criteria

b. At the end of the second phase, 16 out of 20 pilot Union parishads met with performance criteria and continues to implement community driven schemes using Union parishad budgets earmarked for social development and gender.

Data Source: LGED Gender Forum

Outputs

1. Output 1: Improved LGED capacity to engage women in rural infrastructure initiatives

1a. Agreed set of minimum elements related to women’s participation and benefit to be used in designing rural infrastructure projects

1a. There were eleven agreed elements at

every phase of the project.4 They weres

developed under output 1 and applied in rural infrastructure projects including, Coastal Climate Resilient Infrastructure Project, Participatory Small-Scale Water Resources Sector Project, Rural Transport Improvement Project, Rural Development Project and Northern Integrated Development Project.

1b. Guidance materials prepared based on review and analysis of experience, with dissemination strategy

1b. Guidance materials developed based on review and analysis of experience including the set of 11 criteria developed in phases to integrate gender in rural infrastructure.5

2. Output 2: Performance-based approach for Union Parishad to improve women’s participation in Union Parishad structures and processes piloted

2a. Participating Union Parishads improve performance as measured by the performance criteria

2a. The performance-based approaches

developed included seven broad targets6

and 24 sub targets. The selected 20 Unions in Rajshahi and Naogaon districts were qualified for incentive fund in first phase as per the performance criteria. However, out of 20, 16 Union Parishads were qualified for receiving second phase incentive based on their performance. At the first phase, all the 20 unions received incentive fund of

4 Refers to attachment placed at the end of the section. 5 Please see Appendix 1 6 The targets of the Performance based approach are as follows:(1) Election of women members to reserve seats integrated into Union Parishads process and decision making, (2) Women members elected to reserve seats actively participate in planning, implementation and supervision of infrastructure development and maintenance projects of Union Parishads, (3) Increasing women participation in program and decision making activities of Union Parishads, (4) Creation of employment and income opportunity for women in Union Parishad’s regular and development activities, (5) Creation of environment congenial to work, equity and safety for women in all projects and activities of Union Parishads, (6) Increasing role of women members to in reserve seats in the selection of beneficiaries for Social Safety Net (SSN) programs of Union Parishads, (7) Securing benefits of women in all program and projects undertaken by Union Parishads.

26 Appendix 5

Results Chain Performance Indicators with Targets and

Baselines Achievements

$22,500.00 and implemented infrastructure development such as upgrading village roads, pipeline water supply water, building bridges or culverts, upgrading rural market structures, and installing solar panels to provide lighting for rural markets and maintenance works of their Union Parishads. In the second phase, 16 Union Parishads out of 20 received second phase funds of $22,500.00. The project installed 276 deep set tube-wells and 150 pipeline water supply; constructed 26 women market sheds with toilet and water facility, 12 schemes for construction of drains and retention walls, two sanitary latrines in girls’ schools constructed and one toilet in a bus stand, 228 women members worked on 24 schemes of tree plantation and 640 poor women received skill training on income generation activity (IGA), like sewing, block-boutique, embroidery, improved stove making and bio-fertilizer production.

2b. Experience assessed and recommendations on how to follow-up the experience formulated

2b. The project proposed specific recommendations after completion that were integrated in new projects.

Appendix 5 27

Actual Key Activities with Milestones

1. Component 1

1.1 Establish links with LGED Gender Forum, to gain guidance and support for this component and to

provide legitimacy for the outputs envisaged, and with the LGED monitoring unit, to gain their approval

of an implementation plan for this component (Months 0–1)

1.2 Study and review experience on the elements identified—what was done, what was achieved, factors

supporting and hindering the project, considerations for replication in other projects (possibly including

a review of project reports, questionnaire of project directors, interviews with selected project directors

and donors, field visits to selected project sites) (Months 2–4)

1.3 Analyze results of study to propose draft set of minimum elements related to women’s participation

and/or benefit to be included in infrastructure projects, review with Gender Forum (Month 5)

1.4 Hold LGED workshop with broad representation of project directors to review and discuss list of

minimum elements and make recommendations to the Gender Forum so that it can finalize the agreed

set of minimum elements (Month 6)

1.5 Use study to provide practical and concise guidance material to back up implementation of the

agreement on minimum elements for women’s participation (Months 7–8)

1.6 Approve guidance materials, reproduction, dissemination strategy (Month 9)

2. Component 2

2.1 Phase 1 (Months 0–6)

1. Agreement with selected unions on an action plan and performance criteria related to women’s participation and benefit

2. Review of experiences of other organizations to identify useful approaches and good practices related to the performance criteria

3. Formulation of an implementation plan for this component, based on the above

4. Baseline assessment of performance in the relevant areas of the performance criteria for participating union. Baseline assessment should serve as a needs assessment for the capacity development of pilot Union Parishads

5. Training/coaching approach designed and materials developed

2.2 Phase 2 (Months 6–24)

6. Provide support to achieve performance criteria (Months 6–24): training; community awareness raising; coaching and support in implementation; peer learning, such as exchange visits to Union Parishads that have had positive experiences in these areas

7. Assess progress against performance criteria, with a minimum standard of performance required for any Union Parishad (Months 22–24)

2.3 Phase 3 (Months 25–48)

8. For those meeting the performance criteria, assistance with decisions on how to use the infrastructure allocation (two annual increments, with the second increment dependent on continued performance; management by the Union Parishads with technical support from LGED)

9. Continued coaching and support, but shift to trouble shooting rather than general support

10. Annual assessment of performance for all participating Union Parishads (Months 35–36, 47–48)

2.4: Phase 4 (Months 42–48) (overlap with Phase 3)

11. In-depth assessment of the pilot, including results achieved, support measures provided, differences in results between the two groups of unions, etc., and formulation of conclusions and recommendations for follow-up

12. Sharing of results within LGED and with other development partners

Actual Inputs

Asian Development Bank:

Japan Fund for Poverty reduction (JFPR): $500,000

Government: $75,000 in-kind contribution from the government in the form of staff, office space and secretariat assistance.

Source: Asian Development Bank.

28 Appendix 5

TECHNICAL ASSISTANCE COST

Table A2.1: Technical Assistance Cost by Activity ($’000)

Amount

Item Original Revised Actual

1. Consultants 344.1 395.0 387.5

2. Equipment 35.0 23.0 18.6

3. Training, seminars and/or conferences 90.0 60.0 58.5

4. Miscellaneous TA administration 10.9 17.0 16.9

5. Contingency 20.0 5.0 0.0

Total 500.0 500.0 481.5

Source: Asian Development Bank estimates.

Table A2.2: Technical Assistance Cost by Fund ($’000)

Japan Fund for

Poverty Reduction Total Cost

1. Original 500.00 500.00

2. Revised 500.00 500.00

3. Actual 481.46 481.46

4. Unused 18.54 18.54

Source: Asian Development Bank estimates.

Appendix 5 29

Eleven agreed elements at every phase of the project under output 1 At Planning Stage: 1. Ensure sex explicit objective and/or sub-objectives in the main approved program/ project document

(i.e. TPP/DPP); 2. Targeting diversity of rural poor men and women including ethnic minority clearly stating sex

disaggregated indicators by components and/or sub-components of the program/project; 3. Confirm and reinforce women’s participation in determining project’s objectives, activities,

implementation and monitoring of the program/project; 4. Ensure approved gender action plan in accordance to the approved program/ project document, its

execution & follow up with identification of gender focal points; 5. Ensure allocation of financial resources for gender mainstreaming interventions in the program/project

with provision to deployment of gender expert; 6. Promote women’s accessibility as eligible stakeholders into the rural infrastructure facilities of the

program/project; 7. Strengthen participation of women members in different functionaries of Union Parishad with due

emphasize to local governance, gender development activities and other development projects at UP level;

8. Preserve specific percent (on an average 20%-30%) in the contract document for employment of LCS women labors to work on roads/bridges/culverts/ embankments/killas/multi-purpose/ cyclone centers etc. including women Beel User Groups, farmers/smallholder groups (applicable for water body management projects);

9. Ensure easy accessibility of rural poor women to the mainstream of rural economy especially for growth center markets (GCMs);

10. State clearly in the bidding and contract documents on quota, equal wages, privacy and eligible facilities for LCS women labors with extra allowance to be provided; and

11. Capacity development training for LCS women labors (e.g. RERMP project & similar nature of LGED’s other projects) as well as to the self-help groups, institution building, farmers & smallholders, Beel User Groups etc. (applicable for water body management projects) respectively.

At Implementation Stage 1. Apply participatory approaches throughout the project cycle (i.e. at the design, planning,

implementation, monitoring and evaluation) and collect sex-disaggregated data to assess expected outputs/effects/outcomes of the program/project;

2. Affirm labor and economic opportunities for both women and men including ethnic minority during project implementation so that they can equally benefited from the program/project;

3. Ensure expert views from gender experts in all design, planning and review teams to ensure equal participation and consultation from both women and men stakeholders of the program/project;

4. Assure enabling working atmosphere and environment for LCS women labors and work place privacy and safety for them including their children;

5. Confirm adequate budget and resources for promoting gender equality interventions in the program/project;

6. Ensure separate seating room and toilet for women members, senior citizen and physically challenged people etc. during design of UP complex/passengers’ sheds/jetties/landing ghats/multi-purpose centers and cyclone centers etc. (if applicable) and also assure a room/space at UP complex for women visitors who usually come to UP office and that room/space to be treated as rest room and/or for baby care;

7. Confirm women UP members’ participation (at least 30%) in UDCC, standing committees and project implementation committees (PICs) with encouraging access to various infrastructures development and repairing/maintenance activities of program/project;

8. Make sure that LCS women labors’ get employment (on an average 20%-30%) in various construction/ reconstruction works of different rural infrastructure program/project including 100 percent LCS women employment in road maintenance, tree plantation/ care-taking works as per program/project;

9. Confirm specific no of shops and at least 15% open sheds space for women traders with separate toilet at GCMs;

30 Appendix 5

10. Impart gender orientation to contractors on quota, equal wages, privacy and eligible facilities for LCS women labors and at the time of contract signing, affirm all eligible facilities for them and one copy of LGED’s monitoring format to be attached with the contract document of the contractors; and

11. Impart skills training, credit & infrastructure and technical support (where it is applicable) to women members for accumulating savings & undertaking IGAs and institution building as well respectively.

At Monitoring Stage 1. Conduct inclusive review of the draft program/project documents to be validated by the LGED’s

program/ project review team with representation of gender forum as to validate whether the program/project consisting of sex explicit objective/sub-objectives;

2. Introduce gender responsive, monitoring, evaluation & reporting system with sex disaggregated data collection method in the program/project;

3. Conduct participatory stakeholders’ analysis and preserve gender-sensitive data accurately so that all collected data can be used to inform policy support, outline program/project design and support advocacy for gender quality;

4. Introduce regular monitoring of GAP activities with collection of sex disaggregated data and prepare progress reports for necessary review, follow up and management decision;

5. Conduct regular monitoring of budgetary allocation and resources of gender equality interventions and prepare progress reports for necessary review, follow up and management decision;

6. Integrate sex disaggregated indicators and variables into monitoring and evaluation tools/formats to measure gender equity in all levels of program/ project cycle and conduct regular monitoring and prepare progress reports for necessary review, follow up and management decision;

7. Conduct regular monitoring and physical checking of resolution books along with other relevant documents at UPs and prepare progress reports for management review, consultation and necessary follow-up;

8. Conduct regular monitoring and supervision of implementation activities of the program/project by trained staff as per operational guidelines and approved project documents (i.e. TPP/DPP) and prepare progress reports for review, necessary consultation, follow-up and decision making;

9. Conduct baseline survey of target GCMs at the inception stage, monitoring during construction works and follow up survey after operational of GCMs;

10. Conduct monitoring of gender orientation activities and prepare training reports for necessary review, follow-up and decision making and also conduct regular supervision of contractor’s works strictly and in case of non-responsive to gender issues, should initiate legal action against them; and

11. Physical observation and monitoring of capacity building training activities in a regular manner and prepare training report. Conduct case study covering both success & failure cases to explore reasons behind success & failure and to document lessons learned respectively.

Appendix 6 31

CONTRACT AWARDS OF ADB LOAN AND GRANT PROCEEDS

Table 6.1: Annual and Cumulative Contract Awards of ADB Loan Proceeds ($ million)

Annual Contract Awards Cumulative Contract Awards

Year Amount

($ million) % of Total Amount

($ million) % of Total

2012 8.09 16% 8.09 16% 2013 15.26 29% 23.35 45% 2014 13.87 27% 37.22 71% 2015 8.92 17% 46.13 89% 2016 5.81 11% 51.95 100% 2017 0.18 0% 52.12 100% Total 52.12 100.0%

ADB = Asian Development Bank.

Figure 6.1: Projection and Cumulative Contract Awards of ADB Loan Proceeds

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

2011 2012 2013 2014 2015 2016 2017 2018

Cumulative Actual and Projected Contract Award

% of Total Actual % of Total Projected

32 Appendix 7

ENVIRONMENTAL SAFEGUARDS MEASURES A. Introduction 1. Environment Categorization: The Sustainable Rural Infrastructure Improvement Project was classified B for Environmental Safeguards as the impacts of the projects were localized and temporary and mitigations measures are available during project implementation. In line with this classification, an initial environmental examination (IEE) report, including an environmental management plan (EMP), was prepared in August 2010 as part of project preparation, in accordance with the ADB Safeguard Policy Statement (2009). An environmental clearance certificate was obtained from the Department of Environment, Bangladesh to meet the requirement of the Environmental Conservation Act 1995 (Amended in 2010) and Environmental Conservation Rules 1997. 2. Environmental Management Plan: The total environmental monitoring, supervision, and mitigation cost considered for this project was $186,000 and semi-annual environmental monitoring report (EMR) was planned for tracking implementation performance of EMP. The LGED through its PMO was responsible for implementing the EMP. During the construction stage, the contractors were responsible to mitigate all environmental impacts related with the construction activities. In this context, the EMP has been included into the Bidding Documents of all the construction packages so that it serves as a condition. The implementation of the EMP by the contractor (s) was supervised by Construction Supervision Consultant in close consultation with the Project Implementation Unit (PIU) of LGED and the Project Implementation Consultant (PIC). The EMP adequately covered the (i) orientation of contractor by the PMO, (ii) establishment of grievance redress mechanism, (iii) management of construction materials, spoils, and fuel at construction sites and at quarry and borrow sites, (iv) control of dust and noise; (v) protection of worker health and safety; (vi) management of traffic and access obstruction; and (vii) avoiding damage to community facilities. B. Environment Safeguard Measures and Environmental Monitoring and Reporting 3. Construction Phase: The first environmental monitoring report (EMR) was submitted and disclosed in the ADB website in June 2015 covering the reporting timeline from July 2014 to June 2015. PMO submitted a total of 5 EMRs which were disclosed on ADB website. 4. In the early stage of project implementation, ADB noted that many of the environmental issues were captured in the EMRs, such as lack of personal protective equipment PPE), warning signs, fire extinguishers, haphazard dumping of stockpiles (including near an irrigation canal), inadequate dust control measures, improper waste management, and failure to rehabilitate open areas. During project implementation, improvements in environmental management were noted, although issues on failure to use PPE and road safety during construction works were still noted in some instances. More frequent water spraying was undertaken in villages and locations with sensitive receptors where dust was a concern. 5. Training was conducted for the LGED officials covering occupational safety, health and hygiene in construction works; environment and climate change adaptation. About 521 local government officials and 854 contractors, market management committee, and community leaders received training on environmental management and climate resilience. Training on road safety management for LGED, LGIs, NGOs and community representative were completed by March-April 2016. Oversees training has been also completed on Climate Change Resilient Infrastructure Design Considerations and Road Safety Management. A Road Safety Action Plan

Appendix 7 33

was prepared, and adequate counter measures were installed. EA hired an NGO (Nirapad Sarak Chai) for providing training and creating road safety awareness among the road users including drivers which was successfully completed. While turfing on the road slopes has minimized soil erosion, roadside tree plantation completed on 334.33 km of the roads by 336 women groups compensated tree loss and improved local environment. A tri-partite memorandum of understanding (MOU) was signed to ensure distribution of the tree proceeds among the destitute women and local community. 6. Project Completion: The ADB missions observed that completed roads resulted to generally smooth travel. There were no obstructions observed on bridges and culverts; road traffic signs were relatively adequate; and vegetation was growing well on the road embankments. At the completion, cleanup and rehabilitation of disturbed areas were implemented satisfactorily by the contractors including the sites used as materials, equipment and fuel storage areas during construction. In general, the local residents are happy with the improved roads. The mission identified a few minor observations for further improvement as below and requested the bazar committee to take necessary actions.

• Public toilets in the growth center were non-functional and created an unhygienic environment for the market users due to lack of maintenance. Some of the toilets lacks the water facilities.

• Marketplaces are being cleaned up at regular interval and the collected wastes are dumped in a separate area. However, dumping area is open and hence leads to environmental pollution.

• Drainage congestion was found which can cause water overflow during rainy season. Outlet of all the drains were to the nearby river or canal which can cause water pollution. No drainage system was found in some bazar areas.

• Project designs need to consider the effects of the rumble strips on sensitive receptors. Project designs may require modifications or adopt other methods to regulate traffic speed in these zones such as warning signs, traffic light, and zebra lanes for pedestrians.

7. Conclusion: At the initial stage of project implementation, there were several environmental issues that needed remedial actions by the contractors. Outstanding issues were followed up by PMO which resulted to the satisfactory implementation of environmental mitigation measures. The project carried out several public consultations including coordination with locals. In general, completed roads reduced dust pollution in the vicinity, helps to improve the livelihood, local access to farms, social and welfare institutions. Future operations may further emphasize the environmental awareness for better maintaining of the GCM facilities by the users.

34 Appendix 8

LAND ACQUISITION AND RESETTLEMENT IMPACT 1. The project intended to minimize land acquisition impact according to ADB SPS requirements. A total of 8.7332 acres of land have been acquired instead of 13.0652 acres, which was originally proposed during preparation. This measure, adopted during physical implementation of the subprojects, resulted in acquisition of 33% less of the proposed volume of land. All the land acquisition impacts have been partial as the project acquired strips of land. The acquired land are negligible fractions of the total properties. The affected households received compensation for land and one-year harvest cost of the lost crops. Among the structures, there are two partially affected residential structures, 4 cattle houses, 1 storage and 5 partially affected tea stalls. There has been no physical displacements or permanent impact due to the project. A comparative statement of the level of land acquisition and resettlement impact in project districts is presented below:

SL District Improvement Contract Number Amount of

Land proposed (Acre)

Actual Affected Land

(Acre)

1 Chapai Nawabganj

LGED/SRIIP/NWB/W-182 3.1459 2.99

2 Rajshahi LGED/SRIIP/RJS/W-063 0.049 0.49

3 Jessore LGED/SRIIP/JSR/WS-134 & 135 6.18 1.6017

4 Narail

LGED/SRIIP/NRL/WS-176 0.7725 0.7725

5 Naogaon

LGED/SRIIP/NAO/WS-173 0.48 0.48

6 Dinajpur

LGED/SRIIP/DNJ/WS-179 1.01 1.01

7 Bogra

LGED/SRIIP/BGR/WS-201 0.48 0.48

8 Chuadanga

LGED/SRIIP/CHU/WS-195 0.1578 0.1190

9 Gaibandha

LGED/SRIP/GBD/WS-162 0.790 0.790

Total 13.0652 (100%)

8.7332 (67%)

Appendix 9 35

STATUS OF COMPLIANCE WITH LOAN COVENANTS

Covenant Reference in

Loan Agreement Status of Compliance

The Borrower shall (i) maintain, or cause to be maintained, separate accounts for the Project; (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; (iii) furnish to ADB, as soon as available but in any event not later than 6 months after the end of each related fiscal year, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors' opinion on the use of the Loan proceeds and compliance with the financial covenants of this Loan Agreement as well as on the use of the procedures for imprest account and statement of expenditures), all in the English language; and (iv) furnish to ADB such other information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request.

Article IV. Section 4.02 (a)

Complied with. (i) Separate project accounts was maintained; (ii) financial statements audited annually by Foreign Aided Projects Audit Directorate (FAPAD, independent auditor); (iii) all audit report was submitted to ADB on time for each financial year with audit opinions issued for all years unqualified and specific opinions on use of funds (implied from overall audit results), and imprest were issued; and (iv) information related to audit and accounts were provided to ADB, when requested. All outstanding audit issues were resolved except for two observations, one for FY2017 and another for FY2018. LGED has replied to these audit observations to FAPAD, and it is expected that both will be settled by June 2020.

The Borrower shall enable ADB, upon ADB's request, to discuss the Borrower's financial statements for the Project and its financial affairs related to the Project from time to time with the auditors appointed by the Borrower pursuant to Article 4.02(a) and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB, provided that any such discussion shall be conducted only in the presence of an authorized officer of the Borrower unless the Borrower shall otherwise agree.

Article IV. Section 4.02 (b)

Complied with. FAPAD was engaged as independent auditor.

The Borrower shall enable ADB's representatives to inspect the Project, the Goods and Works, and any relevant records and documents.

Article IV. Section 4.03

Complied with.

The Borrower shall ensure, and cause the Project Executing Agency to ensure, that before any Subproject is approved for financing: (a) Subproject is screened to determine any potential environmental impacts and risks, and their significance; (b) if an environment impact assessment or initial environmental examination is required for any Subproject pursuant to the EARF, the PMO conducts an environmental impact assessment or initial environmental examination and prepares an environmental management plan for such Subproject, all in accordance with the EARF; and (c) such environmental impact assessment or initial environmental examination and environmental

Schedule 5. Paragraph 2.

Complied with.

36 Appendix 9

Covenant Reference in

Loan Agreement Status of Compliance

management plan is approved by LGED, endorsed by the Borrower and cleared by ADB.

The Borrower shall ensure, and cause the Project Executing Agency to ensure, that: (a) the Subprojects are designed, constructed, implemented, operated, and maintained in accordance with the applicable local environmental laws and regulations and the Safeguard Policy Statement; (b) the environmental management plan is implemented in accordance with its terms so that all adverse environmental impacts during construction and operation of the Subprojects are mitigated; and in the event of any unanticipated adverse environmental impacts, such impacts are reported to ADB; (c) an additional environmental study is undertaken and approval under local environmental laws, if applicable, is obtained should there be changes in the Subproject design that have significant environmental impacts; (d) all environmental impact assessments or the initial environmental examinations and environmental management plans are updated, as necessary, during the course of Subproject implementation, and submitted to ADB for approval; (e) reports are submitted to ADB on a quarterly basis on the implementation of environmental management plans; and (f) (i) where required, all the contractors are provided with the environmental impact assessment or the initial environmental examination and the environmental management plan, and that the contractors implement the required mitigation measures as described in the environmental management plan in a satisfactory manner, and report the implementation of the environmental management plan on a regular basis, along with any deviation therefrom; (ii) the bidding documents include the requirement to comply with the environmental management plan; and (iii) compliance by the contractors with the environmental management plan is closely monitored.

Schedule 5. Paragraph 3.

Complied with. (a) Subprojects were implemented in accordance with the local environmental laws and regulations and the SPS; (b) the EMP was implemented in accordance with its terms to mitigate all adverse environmental impacts during construction and operation of the Subprojects. There was no event of any unanticipated adverse environmental impacts; (c) No significant environmental impact was identified during sub-project design; (d) all environmental impact assessments or the initial environmental examinations and environmental management plans were updated, as necessary, during the course of Subproject implementation, and submitted to ADB for approval; (e) reports were submitted to ADB on a quarterly basis on the implementation of EMP; and (f) (i) where required, contractors were provided with the EIA or the IEE and the EMP, and that the contractors implemented the required mitigation measures in a satisfactory manner, and reported the implementation of the EMP on a regular basis; (ii) the bidding documents included the requirement to comply with the EMP; and (iii) compliance by the contractors with the EMP was closely monitored by the supervision consultants and EA.

The Borrower shall ensure, and cause the Project Executing Agency to ensure, that to the extent possible, the Subprojects shall avoid land acquisition or involuntary resettlement, and that before any Subproject is approved for financing: (a) the Subproject is screened to determine any potential involuntary resettlement impacts and risks, and their significance;

Schedule 5. Paragraph 4.

Complied with.

Appendix 9 37

Covenant Reference in

Loan Agreement Status of Compliance

(b) in the event any land acquisition or resettlement becomes necessary, or any potential impact on indigenous peoples is identified, PMO prepares a resettlement plan for such Subproject in accordance with the RF; (c) such resettlement plan is endorsed by the Borrower, cleared by ADB, and if necessary, approved by any other government agency; and that in such event there is no commencement of civil works in respect of such Subproject until all affected people are fully compensated prior to their economic displacement, and relocated (or compensated at least prior to the initiation of relocation process), if physically displaced, in accordance with the resettlement plan formulated in accordance with the RF.

The Borrower shall ensure, and cause the Project Executing Agency to ensure, that all land and all rights-of-way required for the Project, each Subproject and associated facilities are made available to the Works contractor in accordance with the schedule agreed under the related Works contract, subject to compliance with the implementation and monitoring of all land acquisition and resettlement activities with: (a)all applicable national and local laws and regulations relating to land acquisition, and involuntary resettlement; (b) Safeguard Policy Statement; (c) the resettlement framework; and (d) the relevant resettlement plan, any updated resettlement plan, and any corrective or preventive actions set forth in a land acquisition and resettlement monitoring plan.

Schedule 5. Paragraph 5.

Complied with.

The Borrower shall cause the Project Executing Agency to: (a) conduct quarterly monitoring and review of the implementation of each resettlement plan; (b) engage an external expert with the qualifications and experience, acceptable to ADB to verify information produced through the monitoring process; (c) appoint a member of its management or qualified staff to have overall responsibility for environmental and social matters; and (d) provide a land acquisition and resettlement monitoring report to ADB and disclose such report in accordance with Safeguard Policy Statement.

Schedule 5. Paragraph 6.

Complied with. (a) conducted quarterly monitoring and review of the implementation of each RP; (b) engaged an external expert with the qualifications and experience, acceptable to ADB to verify information produced through the monitoring process; (c) a LGED staff was appointed to have overall responsibility for environmental and social matters; and (d) Land acquisition and resettlement monitoring report was submitted to ADB regularly and disclosed the reports in accordance with SPS.

Within 3 months from the completion of the implementation of each resettlement plan, the Borrower shall cause the Project Executing Agency to submit a land acquisition and resettlement compensation completion report to ADB for the relevant resettlement plan.

Schedule 5. Paragraph 7.

Complied with.

The Borrower and the Project Executing Agency shall ensure that the Project, including all sub-projects to be financed under it, shall be carried out in compliance with the Safeguard Policy Statement and in accordance with the indigenous peoples' framework developed for the Project.

Schedule 5. Paragraph 8.

Complied with.

38 Appendix 9

Covenant Reference in

Loan Agreement Status of Compliance

The Borrower shall take necessary and appropriate measures to ensure full implementation of the GAP during project implementation. The PMO shall allocate resources, prepare field manuals, conduct training, monitor implementation and ensure regular reporting on GAP implementation.

Schedule 5. Paragraph 9.

Complied with.

The Borrower shall ensure that all bidding documents and construction contracts include provisions requiring equal payment to men and women for work of equal volume.

Schedule 5. Paragraph 10.

Complied with.

The Borrower and LGED shall comply with ADB's Anticorruption Policy (1998, as amended from time to time), and cooperate fully with any investigation by ADB and extend all necessary assistance, including providing access to all relevant books and records for the satisfactory completion of such investigation.

Schedule 5. Paragraph 11.

Complied with.

The LGED shall ensure that the anticorruption provisions acceptable to ADB are included in all bidding documents and contracts including provisions specifying the right of ADB to audit and examine the records and accounts of LGED and all contractors, suppliers, consultants, and other service providers as they relate to the Project.

Schedule 5. Paragraph 12.

Complied with.

Within 12 months from the Effective Date, the Borrower and the Project Executing Agency shall establish a grievance review mechanism, acceptable to ADB, to receive and facilitate resolution of affected peoples' concerns, complaints, and grievances about the Project's environmental and resettlement impacts. The Borrower and the Project Executing Agency shall (a) make public the existence of this grievance review mechanism; and (b) proactively and constructively review and address grievances of affected people in relation to the Project.

Schedule 5. Paragraph 13.

Complied with.

Within 6 months of the Effective Date, the LGED shall conduct initial district level baseline physical and socio-economic surveys and submit to ADB for its review and concurrence, a detailed implementation plan for monitoring performance and for preparing benchmark information. Thereafter, the PM0 shall submit annually a benefit monitoring report to ADB.

Schedule 5. Paragraph 14.

Complied with.

The Borrower shall make available all counterpart funds required for timely and effective implementation of the Project, including any funds required to make land available for the Project, to mitigate unforeseen environmental and social impacts and to meet additional costs arising from design changes, price escalation in constructions costs or other unforeseen circumstances

Schedule 5. Paragraph 15.

Complied with.

The Borrower shall undertake all necessary actions so that, before 30 June of each year during Project implementation, LGED, ADB and KfW can agree on the required budget, for sub-district and union roads in the Project area for the following year. To that end, LGED shall submit to the Borrower, ADB, and KW for review the proposed budget by 31 May of every year.

Schedule 5. Paragraph 16.

Complied with. District wise Subproject Appraisal Reports (SARs) of all schemes/subprojects (except tree plantation) stipulated in then Development Project Proposal (DPP) were prepared by a team of experts formed from the two consultants (D&SC and ISMC). Annual Procurement Plan was duly prepared and accordingly sent to ADB & KfW for review. Drawings, Designs and

Appendix 9 39

Covenant Reference in

Loan Agreement Status of Compliance

Estimates for all individual schemes were sent to ADB and KfW for review and no objections for all schemes were duly received. LGED, ADB and KfW agreed on the required budget, for sub-district and union roads in the project area for the following year.

The Borrower shall ensure that (a) adequate budgetary funds are annually allocated and timely released to LGED for financing all routine and periodic maintenance activities on the Project sub-district and union roads, and (b) the financial gap between annual budgetary requirements for operation and maintenance and actual budgetary releases to LGED is narrowed.

Schedule 5. Paragraph 17.

Complied with.

Before 31 December of each year of Project implementation, the PMO shall submit to ADB an annual Project implementation plan.

Schedule 5. Paragraph 18.

Complied with.

The Borrower shall ensure, and cause the Project Executing Agency to ensure, that any new Subproject to be added to the Project shall comply with the selection criteria included in PAM.

Schedule 5. Paragraph 19.

Complied with.

The Borrower shall ensure, and cause the Project Executing Agency to ensure, that selection of LGED staff or staff and functionaries of local bodies for training to be provided under the Project shall be done fairly using criteria acceptable to ADB and people receiving such training shall not be transferred the extent possible during the period of the Project.

Schedule 5. Paragraph 20.

Complied with.

Established, Staffed, and Operating PMU or PIU Derived from the Project Administration Manual

Complied with.

Fielding of Consultants Derived from the Project Administration Manual

Complied with.

40 Appendix 10

IMPLEMENTATION OF GENDER ACTION PLAN AND ACHIEVEMENTS A. Introduction

1. Project objective. The Sustainable Rural Infrastructure Improvement Project aimed to raise the incomes of the rural people including poor women in 21 districts in the northwest and southwest Bangladesh by improving road connectivity, upgrading market facilities with specific sections for women, and upgrading the capacity of LGED in the management of rural infrastructure. With this objective, the project was envisaged to contribute to poverty reduction. 2. Gender issues. The project concomitantly sought to address rural women’s issues that included, among others, participation as low-paid unskilled workers in road construction, non-compliance of contractors with core labor standards and provision of equal wages for women and men for work of equal value, lack of access to markets and viable livelihood options, limited mobility, and high travel cost. 3. To respond to these concerns, the project designed actions and targets to promote the economic empowerment of poor rural women and to facilitate their active participation in local governance. The project included unique features as it provided mechanisms for women to participate in planning and decision-making related to infrastructure development at the community level and to be involved in the management of the newly built infrastructure.

B. Project Gender Features

4. The project was categorized gender equity theme (GEN). The DMF indicated gender-related targets at the outcome level (two targets) as well as in the three outputs (four targets). The GAP consisted of 33 activities and 20 quantitative targets. All the four gender-related targets in the outputs of the DMF were consistently reflected in the GAP.

5. The gender-related actions and targets included in both the DMF outputs and GAP were as follows:

• Creation of 13,000 person-years of employment of women (in civil works)

• Provision of women’s market sections (WMS) with 500 shops for women in 50 Growth

Center Markets (GCMs)

• Improvement of 92 GCM facilities with 15% (open) space allocation for women

• Participation of women in operations and maintenance of water supply and renewable

energy in three (3) GCMs

• Introduction of performance-based approaches to improve Upazila (sub-district)

governance with focus on women’s participation

6. In addition, the GAP introduced activities to help women sustain and grow their incomes, develop other sources of livelihood through acquisition of skills, and promote social inclusion. These included:

• Training of women in Labor Contracting Societies (LCS)1 on various income generating

activities

• Training of female shop owners (FSOs) on business skills and shop management

1 The Labor Contracting Society (LCS) exemplifies the use of groups of disadvantaged rural people, including ultra poor

women, to undertake unskilled infrastructure work, most commonly earthworks, so that the benefits of employment accrue to the poor.

Appendix 10 41

• Introduction of compulsory savings for women in LCS

• Employment of poor indigenous women living in the project area

7. The project was supported by a JFPR technical assistance (TA), Support to Local Government Engineering Department in Institutionalizing Women’s Benefits from Rural Infrastructure Initiatives. The TA was designed to build the capacity of the staff of the Local Government Engineering Department (LGED) in fostering participation of women in local governance structures and processes. It targeted to achieved two outputs: (i) development of an agreed set of elements of women’s participation in decision-making and planning of local governments on rural infrastructure and (ii) piloting of a performance-based approach to women’s participation in local governments. The second output included the provision of incentive (funds) to local governments for building rural infrastructure that meet the agreed performance standards on women’s participation. The first output was reflected in the GAP of the project, while the second was reflected in both the GAP and DMF.

C. Gender Action Plan Achievements 8. As shown in the GAP achievements matrix (Table A10.1), the project successfully implemented all 15 (100%) activities and achieved 18 (90%) of the 20 quantitative gender targets. Among the notable results were the following: Practical Gender Benefits 9. Reduced water fetching time. In the communities, piped water supply facilities ensured women’s easy and sustained collection of water all year round. Before the intervention they had to collect water from hand operated tube wells which were not sufficient for the population of the community. As a result, they had to travel to other communities as well to fetch water. Furthermore, they had to wait in a queue, and it became worse in dry season when water level went down which causes more time to fetch water. These facilities reduced their water fetching time by 2 hours to 3 hours per day on average and enabled them to spend more time for income generating activities. They are investing time for tailoring, taking care of livestock and poultry, taking rest and helping their male counterparts for more income in the family.

10. Increased mobility. The improved road conditions increased motorized vehicles that facilitated women’s mobility and enabled them to go to various places. For example, the women’s travel to health facilities, markets for buying and selling goods, educational and financial institutions increased. The improved roads also brought more customers to women farmers’ houses to buy poultry and vegetable and other agricultural products. Due to the improved road and available motorized vehicles the women no longer have to wait for other family members to accompany them and can easily go to the government line agencies such as agriculture and livestock offices, Union Parishad office to seek services. Girls’ students drop out rate after primary school reduced because of the communication and transportation facilities. The female shop owners (FSOs) expressed that because of the new roads they can keep their shops open up to 9 or 10 pm as customers mobility increased. Some FSOs can visit home at lunch time and take care of the children and easily come back to her business after lunch. It is a good balance for maintaining family responsibilities and running the business at the same time.

11. Acquisition of knowledge and skills for other livelihood options, effective management of businesses and efficient management of rural infrastructure. Their participation in livelihood skills training programs provided them with options for additional or alternative sources of income. A

42 Appendix 10

total of 668 women participated in different income generating activities (IGA) trainings such as poultry rearing, making organic compost/fertilizer, tailoring, block-boutique, making kantha (blanket), fish cultivation and shop business. Women of LCS who attended the skills training were happy to note that they not only acquired additional skills but also gained continuous access to the local livestock officer, NGOs, and relevant government agencies from whom they could seek guidance for better management of their livelihood activities. The FSOs participated in skills training programs related to business management. They considered the topics on basic accounting, tips on successful management of business, market demand and selection of appropriate enterprise very helpful to their enterprise operations (Box 4 for testimonial of two women entrepreneurs)

12. Generated income and other livelihood options. Employment in civil works (road construction and maintenance work) enabled the women to have decent source of income and helped them start their own savings accounts. A significant number of women labor days comprised of 1,918,783 were generated. Indigenous women (7,962) in the project area were employed in construction work and were able to earn income. A total of 1,200 women were employed in tree plantation and road maintenance through LCS. The dedicated women’s market sections (WMS) in the growth center markets (GCMs) provided 336 women entrepreneurs with a space to sell their goods. The type of livelihoods established by them are cosmetics, grocery, pharmacy, footwear, cloth and tailoring, tea stall, fast food shop, poultry and livestock feed, computer composing and beauty parlors. The piped water supply and separate toilet facilities for women in these market sections made their stay in the market comfortable. The women used their income to help provide for the needs of the family including food, education of the children, home construction or repairs, purchase of materials for homestead gardening, poultry and livestock.

Strategic Gender Benefits

13. Development of self-confidence. Women’s acquired knowledge and skills honed their confidence in managing finances, operation of enterprises, and public facilities (water supply and renewable energy in growth center markets) and local government committees (Boxes 1 and 2 for testimonials of women beneficiaries). Their access to concerned government personnel and NGOs enabled them to raise their concerns, express their views and recommendations in community and local government assemblies. Examples of these concerns were their exclusion from social safety net programs, domestic and community-level conflicts, and violence against women, as well as the need for measures to address these problems.

14. Increased voice in family and community decision-making. Women’s increased income and livelihood options resulted in their recognition in the family and community (Box 3 for the testimonial of a single mother). The FSOs in Rangpur mentioned that during the construction and allocation of shops, other men shop owners made comments belittling their capability to run a business. At project completion, the situation changed with these men traders acknowledging that women are good in business too. Some of the LCS women, who were able to purchase land, lease land, and bought livestock with their earnings from earthworks and road maintenance works, also experienced a change in their position in the family including in-law’s family. Their earned abilities and resources have made them an active part of family decision making.

15. Creation of institutional venues for women’s voice in local governance. The project developed mechanisms (applied in 20 unions in 2 districts) that assured women’s representation in local governance committees and enabled them to actively participate in the decision-making related to the management of public facilities. Their participation honed their communication and

Appendix 10 43

social skills, as well as their ability to assert their views and suggestions in various public forum which in turn affirmed their value as community members.

44 Appendix 10

Table A10.1. Gender Action Plan Achievements Matrix

Activities and Targets Achievements Status at Project

Completion

Output A: Road connectivity improved

Target 1. Ensure 30% women’s participation in consultation on infrastructure planning and implementation.

• A total of 277 consultations were held on climate resilient upazila (sub-district) and union (union council or lowest tier of local government) roads, bridges and culverts, growth center markets (GCMs), upgrading of rural market structures, shops for women and open space at market with water and sanitation. A total of 6,803 persons participated in the consultations (4,086 men and 2,720 women [40%]).

• At planning phase, women participated in the identification/selection of the sites for the markets and women’s corners, location of toilets, and sites for road construction. In the implementation phase, women participated in the formation of market management committees (MMCs), and selection of women members from the Labor Contracting Societies (LCS) who will be engaged in road construction, road maintenance work, and tree plantation.

Target 1 achieved

Target 2. Ensure women’s employment (30% of the estimated 28,500 person years of jobs created)1 as laborers in Labor Contracting Societies (LCS) and with contractors in earthworks and construction of roads and markets.

• A total of 5,049,627 labor days (34,825 person years) were generated2 in 122 upazilas in 21 districts where women labor days comprised of 1,918,783 (38%) (13,232 women person years).3 Most of them used their income for food, purchase of household necessities, education of children, materials for homestead gardening, poultry and livestock and construction or repair of their houses.

• In the focus group discussions, 29 LCS members noted that their accumulated savings in the bank and skills acquired from trainings on different income generating activities (IGA) enhanced their capacity to generate more income.

Target 2 achieved

DMF Output A.4. 13,000 person-years of employment created for women.

1 30% of 28,500 = 8,550 person-years. 2 As per attached calculations provided by the PMO, one-person year consists of 145 (labor) days. 5,049,627 labor days/145 days/person/year= 34,825 person-

years. 3 1,918,783 labor-days for women/145 days/person/year = 13,232 women person-years.

Appendix 10 45

Activities and Targets Achievements Status at Project

Completion

Target 3. Employ 1,200 women in tree plantation and road maintenance through LCS.

• A total of 1,200 women were employed in tree plantation and road maintenance through LCS.

• The LCS women were employed for an average of 12-24 months and paid 150 taka daily. The 29 women LCS members, who participated in four focus group discussions, used their earnings for children’s education and daily food consumption for the family; 19 women invested their income to purchase cows and goats; 7 leased agricultural lands; and 3 purchased lands (homestead and agricultural land).

• The LCS women noted that aside from employment in road maintenance work, they also attended skills training, which also gave them continuous access to the local livestock officer, NGOs and relevant government agencies whom they can approach, as needed, for guidance on the management of their livelihood activities.

Target 3 achieved

Activity 1. Orient contractors and field staff on core labor standard, such as to employ women laborers, pay equal wage for women and men and other facilities.

• A series of orientation meetings with all 249 contractors and all field staff were held. In these orientation sessions, contractors were encouraged to employ women labors, give equal pay to men and women for work of equal value, and to provide adequate facilities.

• As a result of the orientation of 249 contractors created 1,531,343 women labor days (10,560 person years) as wage laborers in construction works.4

Activity completed

Target 4. Train 1,200 LCS women on road routine maintenance, tree care taking.

All 1200 LCS women employed in road maintenance work received training on road routine maintenance and tree care taking.

Target 4 achieved

Target 5. Train 1200 LCS women on various income generating activities (IGA).

• A total of 668 women (55% of 1200 women employed in road maintenance work) participated in the same trainings on different income generating activities (IGAs).5

• Training topics included: poultry rearing, making organic compost/fertilizer, tailoring, block-boutique, making kantha (blanket), fish cultivation, and shop business.

Target 5 not achieved

4 This refers to labor days under contractors, excluding LCS labor days of 387,440 5 The women who were employed at the end-stage of the project implementation were not able to undergo trainings as there were no more trainings conducted at

this stage

46 Appendix 10

Activities and Targets Achievements Status at Project

Completion

Target 6. Introduce compulsory savings and open bank accounts for 1,200 LCS women.

All 1200 women, who worked on tree plantation and road maintenance, opened bank accounts through LGED.

Target 6 achieved

Activity 2. Employ poor indigenous women, if living in the project area.

Indigenous communities were found in 10 districts6 out of 21 project districts: 7,962 poor indigenous women were employed in both LCS and as daily wage laborers doing construction work in roads and markets, toilets and drains and received an average of 300-350 taka per day.

Activity completed

Activity 3. Women in the markets are included in the road safety orientation.

A total of 183 Female Shop Owners (FSOs) were oriented on road safety concerns and tips. They acquired better knowledge and understanding of the elements related to road safety, causes of road accidents, risks associated with illegal use of roads trips to prevent road accidents, and safe road barriers.

Activity completed

Output B. Marketing facilities upgraded with specific provision for women

Target 7. Construct and allocate about 500 shops in 50 Growth Center Markets (GCMs) for women traders (allocate 1-2 shops to indigenous women, if available in the project area)

• A total of 88 GCMs/RMs were constructed in 122 upazila under 21 districts. Of the 88 GCMs/RMs, 42 have Women’s Market Section (WMS) which have 336 shops. The number of GCM and shops were reduced to 42 and 336 respectively as there was shortage of market spaces and lack of eligible female shop owners in the locality and this change was included in the revised Development Project Proforma (DPP) approved by ministry of LGRD&C on 04/03/2015 LGED.

• Livelihood activities established by the female shop owners include cosmetics, grocery, pharmacy, footwear (shoes and sandals), cloth and tailoring, tea stall, fast food shop, poultry and livestock feed, computer composing and beauty parlors.

Target 7 not achieved

DMF Output B.2. Women’s market section completed in 42 markets with about 336 shops.

Target 8. Train 500 shop owners on business skills, shop management, MMC function and link them with trader’s association.

A total of 183 (54% of the total of 336)7 Female Shop Owners (FSOs) participated in the 3-day training on business skills, shop management and MMC function.

Target 8 not achieved

6 Naogaon, joypurhat, Rajshahi, Chapai Nawabganj, Natote, Panchgarh,Thakurgaon, Dinajpur,Rangpur and Gaibandha. 7 The remaining FSOs that did not receive trainings were those whose shops were constructed and allocated towards the end of the project when no trainings were

offered anymore.

Appendix 10 47

Activities and Targets Achievements Status at Project

Completion

Target 9. Earmark and allocate 15% of space for women vendors in open sheds to be developed in 928 GCM.

• 15% of spaces were earmarked in open sheds in all GCMs upgraded by the project exclusively for women vendors. A significant number of GCMs are located in Bagher para upazila in Jashore, Naogaon in Rajshahi and in Rangpur.

• Women sellers and traders who participated in post-project discussions said that the location, particularly the brick build platform in open area/sheds, was strategic in terms of comfort and visibility to the public and customers. Prior to the building of platform in the open sheds, they had to sit on muddy road with their goods. Selling was very difficult especially during the rainy season. Moreover, it was not also a safe place, as they were situated on the main road. o The allocated space helped attract (more) buyers and increase

sales as they can now stay longer in the markets and they can also sell their products at better prices.

o As in the case of FSOs, women sellers in the open spaces were able to contribute to the family income.

Target 9 achieved

DMF Output B.1. 88 GCM facilities improved with 15% space allocation for women.

Activity 4. Orient MMC and traders to support female Shop Owners (FSOs) and women vendors and include them as members of traders’ associations.

• The project conducted 3 batches of orientations for the Market Management Committee (MMC), where 78 men out of 92 members (all men) of the MMC participated.

• The orientation program covered the allocation of shops for women, 15% open space in GCMs, construction of separate toilets for women including provision of water supply, importance of (good) operation and maintenance of GCMs, and support for women shop owners and women vendors and their inclusion as members of trader’s associations.

Activity completed

Activity 5. Provide support measures including separate toilets, safe water supply for women in the markets.

• 146 tube wells and 59 toilets were constructed in both existing and newly built markets.

• Separate toilets for women including safe water supply facilities were included in the design of 88 markets. Of the 88 markets, 59 markets constructed separate toilets (1 toilet in each market) for women which included safe water supply facilities.

Activity completed

Activity 6. Provide solar energy and piped water supply to WMS in pilot markets.

• Renewable energy systems were installed in 3 GCMs (including the women’s market sections) in Lalmonirhat, Rajshahi and Magura districts.

Activity completed

8 The target 92 GCMs was reduced to 88 GCMs due to non-availability of land for 4 GCMs (as per revised DPP approved by ministry of LGRD&C on 04/03/2015).

48 Appendix 10

Activities and Targets Achievements Status at Project

Completion

Target 10. DMF Output B.3 Renewable energy installed in 3 GCMs covering sections for women. Target 11. DMF Output B.4. Piped water supply installed in 3 GCMs.

• Piped water supply was also installed in 3 GCMs (including women’s market sections) in Naogaon, Gaibandha and Jashore District.

Targets 10 and 11 achieved

Target 12. Provide need-based training to 100 FSOs.

• Using the results of the needs assessment as reference, the project conducted 3-day trainings for 100 FSOs related to business development and operations in Jashore, Rajshahi and Bogra9

• Among the topics discussed, the following were most useful to the FSOs’ enterprise operations: basic accounting, analysis of market demand and selection of appropriate enterprise, importance of savings, proper operation and maintenance of shops, and tips for successful management of business.

Target 12 achieved

Output 3: Rural infrastructure management improved

a. LGED Capacity Building

Target 13. Recruit/promote women at various levels of the SRIIP Project (20%).

A total of 106 staff were recruited at various levels of SRIIP where women comprise 15 (14%) and men 91(86%).

Target 13 not achieved10

Target 14. Organize ToT on Gender and Development for 30 LGED staff of PMO and field.

• Training- of-Trainers (ToT) and refresher ToT on Gender and Development were conducted for 68 LGED (PMO and Field) staff (men:62 and women:6).

• Discussed key gender concepts and approaches included gender related development program/s under SRIIP, gender roles and gender division of labor, family law and gender related terminology, LGED’s gender forum and increase of women’s participation in local institutions.

Target 14 achieved

9 Topics of the training included: (1) business initiatives and ideas (2) analysis of markets and marketing, (3) basic accounting, (4) tips for successful management

of a business and (5) necessity of savings, operation and maintenance of shops. The training also included the shop maintenance policy and lease agreement of shops between the MMC and the FSOs that presented terms and conditions of the FSOs. Moreover, the project conducted orientation on road safety, awareness building on different social issues such as early marriage, dowry, polygamy and violence against women, health issues including personal and family hygiene, necessity and proper use of safe water, environment related issues and food and nutrition.

10 The target of 20% women was not met because of limited number of women in LGED. It must be noted that all the eligible women for employment in the project were recruited. The women staff held the following positions in the project: Assistant Engineers, Sub Assistant Engineer, Computer Assistant, Field Facilitator and supporting staff at office.

Appendix 10 49

Activities and Targets Achievements Status at Project

Completion

Target 15. Integrate gender issues and ways to address these issues in all training.

Gender-related topics were integrated in all the 7 trainings conducted under the project.11 Key gender-related elements, principles, concepts integrated in most (or in all) trainings included participatory project design, implementation and monitoring functions of Union Parishad (Union Council), gender division of labor, practical and strategic gender needs, gender related provisions in SRIIP and contractors responsibility during construction, tips on road safety for women, the special provisions regarding gender and development in GCMs including shop and space allocation for the women traders, selection of women traders, lease agreement between MMC and FSOs and shop maintenance policy.

Target 15 achieved

Target 16. Ensure that women represent 30% of participants in all training courses.

A total of 1,174 participants, of whom 824 (70%) were women, attended the training courses.12

Target 16 achieved

Activity 7. Involve LGED District Sociologist and Upazila Community Development Officer in implementation of gender related activities in the project area.

A total of 122 Community Organizers and 21 District Sociologists were involved in collecting primary and secondary data for Sub-Project Appraisals (SARs), and in the supervision of the implementation and monitoring of the gender related activities in project areas.

Activity completed

Activity 8. Identify minimum criteria for mainstreaming gender in rural infrastructure through the TA and recommend for use in all LGED RI reports.

• A standard list of minimum criteria for mainstreaming gender in the planning, implementation and monitoring phases of rural infrastructure of LGED was developed.

• Each phase has 11 agreed criteria.13.These criteria (were applied in rural infrastructure projects, including Coastal Climate Resilient Infrastructure Project, Participatory Small-Scale Water Resources Sector Project, Rural Transport Improvement Project, Rural Development Project and Northern Bangladesh Integrated Development Project.

Activity completed

b. Local Governance

11 The trainings included: (1) UP management training courses, (2) Contractors and masons capacity building training courses, (3) Management and climate change

adaptation, (4) GAP principles& occupational health, (5) Orientation on market management, road safety & gender development, (6) LCSs training on tree plantation and road routine maintenance, (7) Training on business management and business need based management for FSOs.

12 Trainings conducted were as follows: (1) “Management and Climate Change Adaptation”; (2) Road Safety for motor vehicle driver; (3) 12 batches of training for contractors and masons on quality work and compliance of gender, environment , safety and security issues; (4) 6 batches of Training on GAP Principles & Occupational Health; (5) 9 batches of training on Tree Plantation and road routine maintenance; (6) 9 batches of training on income generating activities (IGA) for LCS; (7) 8 batches of training on Business Management; (8) 3 batches of training on Need Based Business Management.

13 Refers to attachment/ appendix placed at the end of the Gender Section.

50 Appendix 10

Activities and Targets Achievements Status at Project

Completion

Activity 9. Women Union Parishad (UP) members receive all training for Local Government Institutions (LGIs).

A total of 178 batches of UP management trainings were completed, with 7,160 participants, of whom 1,563 (22%) were women.14

Activity completed

Activity 10. Promote women’s involvement in Project implementation committee (PIC) at the Union level.

• A total of 60 women members of UP were involved in different PICs as chairpersons at the Union level.

• The 8 women chairpersons of the PICs, who attended the focused group discussions, mentioned their key contributions to include proposal preparation of development schemes such as tendering and awarding of work orders to contractors and supervision of progress. They also shared that through their participation in the PIC, they could enroll 1/3 women members in the PIC. These created opportunities for women to participate in decision making process and have their recommendations recorded in the meeting minutes. Their representation also increased their voice in decision-making at the community level and helped them earn the respect and support of male members in the community.

Activity completed

Target 17. Involve Female Shop Owners (FSOs) in maintenance management of water supply in 3 markets and renewable energy in 3 selected markets.

• 12 Female Shop Owners (FSOs) were involved in the maintenance management of water supply in 3 markets (Rajgonj Bazar at (i) Monirampur under Jashore district, (ii) Fatepur bazar at Manda Upazila under Naogaon district, and (iii) Panchpeer bazar at Sundargonj Upazila under Gaibandha district). They supervise the collection of water fee from the users, inform MMC on required repairs;

• 30 FSOs were also involved in the installation and maintenance of renewable energy (solar power) in three markets: (i) Kalamdaria bazar at Mohammadpur Upazila under Jashore district, (ii) Krisnopur hat at Tanore Upazila under Rajshahi, and (iii) Panchim Haldabari hat at Hatibandha Upazila under Rangpur district.

Target 17 achieved

14 The trainings included: development, organization, structure and the activities of UPs, conducting effective meetings of the union councils, financial and office

management and accounting methods, management of market management committee, village court, participatory project design, implementation and monitoring functions of UP, maintenance of market and UP complex, major activities and duties of LGED, Gender and development, environmental protection, disaster management, tree plantation and saving the tree, safe water supply and sanitation system, good governance, accountability and corruption prevention, people’s participation, ICT and computer, transaction with the bank, leadership-definition, importance and necessity, nature, activities and attributes, conflict mitigation and income generating activities.

Appendix 10 51

Activities and Targets Achievements Status at Project

Completion

Activity 11. Encourage women for their participation in monthly ward level meetings in Union Parshad Councils (UPCs).

• A total 379 ward level meetings were conducted and attended by 549 men and women--278 (51%) women & 271 (49%) men.

• Through their participation in ward level meetings, the women were able to raise important issues, such as women’s exclusion from social safety net programs and development related activities, lack of information about the UP services available for them, expectations from the women UP members, UP members lack of knowledge and skills to conduct ward shavas, various conflicts at domestic and community level and violence against women.

Activity completed

Target 18. Performance-based approaches to improve UP governance with a focus on women’s participation and benefit introduced in 20 pilot UPs.

• The performance-based approaches developed under the project’s associated technical assistance include 7 broad targets15and 24 sub targets. The selected 20 Unions are in Rajshahi and Naogaon districts.

• The Performance-based approaches introduced through (i) various meetings on UP members’ activities, roles & responsibilities (ii) skills development trainings and (iii) village court & social awareness activities.

• The associated technical assistance focused on: o Increasing women’s participation in the decision-making process of

UPs. o Implementation of the provisions of the Act (UP Act of 2009) relating

to women’s participation. o Improvement of governance of UPs.

Target 18 achieved

DMF Output C.2 (qualitative target). Performance-based approaches to improve UP governance with a focus on women’s participation introduced.

c. Incentive-based infrastructure

Target 19. 20 UPs receive infrastructure support if comply with gender-based criteria.

To help the selected UPs achieve performance targets, the project conducted training, coaching, ‘learning by doing’ and peer learning for chairpersons, secretaries, and men & women members of the selected UPs. All the 20 unions were qualified to receive incentive fund of USD 22,500.00 each to carry out infrastructure development & maintenance works of their UPs.

Target 19 achieved

d. Climate change resilient rural infrastructure management

15 The targets of the Performance based approach are as follows:(1) Election of women members to reserve seats integrated into UP process and decision making,

(2) Women members elected to reserve seats actively participate in planning, implementation and supervision of infrastructure development and maintenance projects of UPs, (3) Increasing women participation in program and decision making activities of UPs, (4) Creation of employment and income opportunity for women in UP’s regular and development activities, (5) Creation of environment congenial to work, equity and safety for women in all projects and activities of UPs, (6) Increasing role of women members to in reserve seats in the selection of beneficiaries for Social Safety Net (SSN) programs of UPs, (7) Securing benefits of women in all program and projects undertaken by UPs.

52 Appendix 10

Activities and Targets Achievements Status at Project

Completion

Target 20. Climate change awareness raising program include 30% women at the local level including female UP members

• The project conducted 21 batches of 2-day awareness raising program on climate change for local leaders/community leaders in Regional Training Centers and Executive Engineers Offices of LGED. A total of 1,011 participants attended, of whom 706 (70%) were males and 305 (30%) were females, including 60 female UP members

Target 20 achieved

Component: Support for Project Management (not in the DMF)

Activity 12. Provide gender consultant and financial resources for the implementation of the GAP

• The project recruited a gender specialist and financial resources were provided for the implementation of the GAP.

Activity completed

Activity 13. Ensure that all relevant project tools, formats, documents are gender sensitive and sex disaggregated data are maintained by the project MIS.

• All relevant project monitoring tools are gender-sensitive and sex disaggregated data are collected through gender monitoring format.

Activity completed

Activity 14. Conduct benefit monitoring of FSOs and LCSs to assess the changes in their livelihoods and socio-economic status due to project interventions.

The project assessed the benefits derived by women from LCSs and FSOs in February 2019. The assessment consisted of four (4) focus group discussions (FGDs) with 29 women LCSs and two (2) FGDs with 20 FSOs in the Rangpur region that covered four districts and five upazilas.16

Activity completed

Activity 15. Ensure gender inclusive monitoring, evaluation, and reporting with sex disaggregated data.

The project regularly submitted Quarterly Progress reports with sex disaggregated data.

Activity completed

Overall GAP Assessment: Successful17

16 Districts: Rangpur, Dinajpur, Nilphamari and Thakurgaon; Upazilas: Baliadangi, Thakurgaon sadar, Nilphamari sadar, Pirgacha and Kaharol. The FGD results

noted the following: (i) women LCS contributed their savings for livestock rearing and land leases; (ii) all women contributed their daily wage and other earnings for their children’s education and daily food consumption for the family; (iii) a significant change in the lives of landless poor women, as they were able to purchase lands with the land deeds done in their own name; (iv) women were able to cultivate different crops in different seasons in the leased lands which in turn, ensured food for the family and extra cash for other needs; (v) FSOs have regular income from their shops and the range of their daily income is 500 taka to 2,000 taka. It even goes as high as 30,000 during festivals; and (vi) all women reported that the capacity development training for the FSOs and IGA trainings for the LCS developed their skills and helped them in securing livelihoods.

17 All 15 (100%) activities were completed and 17 (85%) of 20 quantitative targets were achieved.

Appendix 10 53

D. Testimonials of Women Participants and Beneficiaries of the Project

16. Focus group discussions (FGDs) on women’s benefits from the project were held with 20 women from the FSOs and 29 from the LCSs. Benefits shared were about decision on the use of income, setting aside funds for savings, development and application of skills learned from the trainings, and their insights on their families’ and communities’ recognition and perception of their participation in decision-making in family and community concerns (Tables A10.2 and A10.3).

Table A10.2: LCS member’s areas of investment of savings (with multiple responses)

Areas of investment Number of respondents from LCS

Purchased land 3

Bought cow/goat 19

Extended house/repaired 1

Leased land 7

Leased pond 1

Arranged daughter’s marriage 1

Table A10.3: Participation in decision making

Levels Number of respondents (FSOs and LCS)

At family level 40

At community level 25

Recognition from family and community 49

17. For the LCS women, particularly the landless poor women, one of the significant achievements was the purchase and ownership of land under their name(s). The women who leased land started cultivating different crops appropriate for the season. This not only helped ensure food supply for the family but also allowed them to earn additional income from sales of the crops. They also sold cow milk, eggs and vegetables in the nearby markets. They also cultivated fish in the leased pond. All these activities enabled them to earn money on a regular basis.

18. One noted good practice of the project was the formation of solidarity/ support groups among FSOs. Pirgacha Upazila where 12 FSOs formed a group which served as the support system of the FSOs. The group holds monthly meetings to discuss and address concerns such as payment of bills and matters related to maintenance of the shops and facilities for women (e.g. toilets). They are also able to make financial decisions on their own. In addition, they have increased mobility and do not need to be accompanied by family member. They are now able to purchase goods for their shops on their own. These changes have also brought about positive changes in their family and community.

Testimonials of Women Beneficiaries

Box 1. Towards becoming a model chairperson of committees

“I was at first anxious about my duties and responsibilities as a chairperson of a committee because I did not know how to conduct meetings and write resolutions and I hardly had knowledge of Local Government (Union Parishad) Act-2009. Then, through SRIIP, I received training and coaching, including on the gender rules of UP. Now, I can conduct standing committee meetings, wardshava, project implementation committee meetings and write resolutions. As a chairperson of the ‘Education, Health and Family Planning’ standing committee, I am not only doing meetings but also monitoring local primary and high schools and health center with other standing committee members. I also talk with guardians, teachers and girl students to make them aware about eve teasing. I also provided them my mobile number so they can call me if any girl student finds difficulty and faces eve teasing. Girl students of my Union are happy with this initiative. I also consult with teachers to create a favorable

54 Appendix 10

environment in class and school for girl students. In my Ward, I also implemented tree plantation works using the fund of UP where 15 destitute women were involved. I also motivated the UP to make a contract agreement for the beneficiary women to get benefits from matured trees and fruits. I also convinced the UP chairperson to allocate separate open space at Chabbish Nagar Bazaar for rural women entrepreneurs. I requested this space so that women patty traders can sale their goods in this local market. I also asked for separate toilet facility for women in this market. I also formed a Samittee with 17 rural women at Chabbish Nagar village to increase savings. My dream is to become a model woman UP member in this Union so that I can get much love and prayer from my community”.

Gulanur Begum, UP member of Rishikul UP; Upazila: Godagari

Box 2. Developed leadership skills to spearhead the implementation of community projects

“I did not aspire to become a committee chairperson and did not know about Union Parishad Act, standing committee, the need for separate toilet and restroom of women, and my rights Through attending the trainings and coaching programs of SRIIP, I learned all these as well as the responsibilities of an elected woman UP member and the benefits that I could get from performing this function as per Local Government (Union Parishad) Act-2009. Before the training, my participation in different committees and project implementation was only on pen and paper. I was a member of the purchasing committee, but I did not know when purchase order was issued. I only signed the agreement paper or cheque book to withdraw fund without getting any opportunity to be involved in project implementation.

I am a chairperson of different committees such as standing committee, Vulnerable Group Development (VGD) and widow committee, goat and sewing machine distribution committee. I have also been nominated for the panel of acting chairpersons of UP. I am also member of a school committee and local disaster management committee. This year, I supervised the implementation of a 40-day project of my Ward to repair a two-kilometer length earthen road. In this project, drinking water and toilet facility were arranged for women labours. All these leadership experiences have helped me to develop my self-confidence and skills in leading project implementation, and to earn the recognition of my colleagues”.

Mrs Khaleda Begum, UP member of Talonda, Upazila: Tanore, District: Rajshahi

Box 3. Increased income and ability to support daughter’s education

Achia Begum (32 years old, studied up to class five) is a widow and lives with her only daughter, who is a student of class nine. Her husband died in a road accident during her pregnancy. She was a wage laborer and did whatever work was available including as domestic helper and received 1000-1500 taka monthly, sometimes with commodities. She worked as an LCS member under SRIIP for 2 years and was paid 150 BDT per day, 50 BDT of which was saved in her bank account. She attended the training on tree plantation and how to care of the trees along with other income generating activities such as rearing poultry and livestock, homestead gardening and small enterprise development. She spent her daily wage for daily food and daughter’s education. After completion of tree plantation and road maintenance work, her savings in the bank increased to 36,500 BDT. With these savings, she bought 2 decimals of land adjacent to her homestead land and repaired her house that cost 15,000 BDT, 1 cow for 7,000 BDT and leased one pond for 10,000 BDT. Recently she invested 40,000 BDT for leasing agricultural land of 1 bigha (33 decimal). She shared, “I was able to expand my income generating activities because of the LCS work, the skills development training, my networking with other LCS women, and the support of government officers. This helped me to prove to my family that I have skills. Now, I am able to support my daughter’s education and am confident that I can also support her higher education”.

Box 4. Successful operation of shop through skills training and support of family

Rafeza Begum and Rahima started their business jointly and shared the investment of 40,000 taka in the shop of dry food and cosmetics 3 years back in the Bagharpara GCM, Jashore. Now their sales on average is 3-4,000 BDT daily, which served as their share in purchasing land with their husbands. Rafeza has a savings account in the bank where she saves 1500 BDT per month for her daughter. Both shared that the skills they gained through SRIIP and the support of their husbands and families helped them to operate their shop successfully.

Appendix 10 55

E. Challenges Encountered

19. The challenges that were encountered during GAP implementation and are expected to constrain the sustainability of achievements are the following:

• Ensuring equal wage for women and men for equal value of work was a challenge even

though the contractors were oriented and construction works were closely monitored and

supervised by the project officials. There were two types of underlying constraints

appeared: (i) local practice of unequal wage for the women and men unskilled laborers,

and (ii) contractors/sub-contractor’s unwillingness to pay equal wage. Specific

motivational sessions including separate meetings with them during loan review missions

were conducted with the contractors and sub-contractors which resulted in slight

improvements in wage differentials.

• Orientation of MMC members and traders for supporting FSOs and allocation of shops

and open space for the women traders was a good initiative by the project. However, it

was rare for FSOs to have access to decision making at MMC level. Specific measures

such as refresher orientations for the MMC members and targeted supervision of MMC

members to ensure FSOP involvement can address the issue better.

• Women UP members access to decision making at the UP level was a great challenge as

they lacked awareness about their own responsibility and duty. The effectiveness of the

capacity development of the UP members is not sustainable as the UP election takes

place every 5 years and when new members get elected, the skills are not transferred to

the new members. We recommend specific measures are integrated in all future projects

at the UP-level build capacity of women UP members and raise awareness among all UP

members.

• The project could not complete the targeted trainings for the FSOs (153 out of total 336

did not receive training) because the shops were constructed towards the end of the

project when no trainings were offered anymore. Similarly, 532 LCS women were

excluded from trainings on various income generating activities as they were employed at

the end-stage of the project implementation. Selection of LCS women and FSOs must be

done at the beginning regardless of when construction starts. related trainings must be

done throughout the project period.

• The project could not meet the target of recruiting 20% women at various levels because

of few women in LGED. This remains a challenge for all project in LGED. We hope the

new Technical Assistance project: Institutionalizing Gender Equality Practices in the

LGED will begin to address some of these inherent problems in recruitment.

F. Lessons

20. The experience in implementing the GAP and the challenges faced unleashed the following lessons and recommendations:

• Long term (1 – 3 years) employment opportunities can positively impact the lives of the

poor and destitute women at the rural level. One of the benefits of engaging in long term

income earning activities was that the LCS women members (the most vulnerable and

disadvantaged in the rural areas, including widows, abandoned/separated women or

women victims or survivors of violence, women whose husbands are disabled and those

who were dependent on wage laboring works) had enough time to establish their credibility

at the community level and build their social capital. For example, the established trust

56 Appendix 10

and proven ability to earn and pay have enabled them to borrow commodities from shop

keepers and borrow money from others during crisis period.

• LCS women were chosen based on some criteria and priority given to the vulnerable and

destitute women. Similar type of women’s employment in road maintenance should be

created under other rural infrastructure related projects.

• The orientation of MMC and traders was not sufficient to expedite FSOs’ inclusion in

decision making at MMC level. Rather, refresher orientations and constant monitoring and

supervision are required. Next projects should arrange trainings for LCS and FSOs once

they are finally selected and conduct trainings for FSOs independent of the completion of

the construction and allocation of shops. The training and shop construction should run

simultaneously.

Appendix 11 57

ECONOMIC REEVALUATION A. Introduction 1. The project was designed and implemented during 2010-2017 in 21 Districts, aimed to

reduce rural poverty in intervention areas through widened access to economic opportunities and

social services for poor and women. The project comprised three outputs: (i) improved road

connectivity; (ii) upgraded marketing facilities with specific provision for women; and (iii) improved

rural infrastructure management.

2. The project was expected to mainstream the rural poor into the market-led economic

growth process by removing supply-side impediments, especially through the integration of the

rural areas with the livelihoods of the poor. The project was expected to generate two types of

benefits: (i) direct benefits from savings in vehicle operating costs, reduction in travel time,

enhanced marketing facilities, and commercialization of productive activities; and (ii) indirect

benefits from positive externalities that are not quantified in the economic evaluation, but are likely

to be significant.

3. For economic analysis of rural roads, the economic analysis at appraisal assumed that

the project costs are incurred mainly during the first year, while partial benefits start to flow in the

second year and reach their full level by the third year. The analysis period is set at 21 years.

Road roughness was measured by the international roughness index (IRI) in meters per kilometer.

The distinction between earth and paved roads in their existing conditions have been considered.

The IRIs is assumed to be 16 m/km for earthen or underdeveloped roads and 6 m/km for the

bitumen surface or developed roads while IRI for project roads is assumed to be 4 m/km. Average

annual daily traffic (AADT) was calculated considering the number of market and non-market days

in a year and adjusted for seasonal changes. Traffic growth is assumed to be 6% a year, lower

than the average national traffic growth rate of 10.5% per year during 2003-2009. The investment

cost, annual routine maintenance cost and the cost of periodic maintenance carried out every 5

years were included in the cost estimates. The standard conversion factor of 0.80 was applied in

converting financial costs into economic costs.

4. For economic analysis of GCMs, a quality deterioration savings approach was used to

quantify benefits. The turnover and quality deterioration savings were estimated based on a

market survey. The construction and maintenance costs were included in the cost estimates. The

standard conversion factor of 0.80 was applied in converting financial costs into economic costs.

B. Economic Analysis

1. Economic Analysis of Rural Roads

5. The economic analysis of rural roads was carried out in accordance with ADB's Guidelines

for the Economic Analysis of Projects, 2017 and this economic reevaluation closely follows the

methodology used in the economic analysis at appraisal. Economic analysis of rural roads is

conducted for all rural road subprojects. The economic benefits were estimated based on the

survey results of 12 rural roads which have been monitored in the Benefit Monitoring and

Evaluation (BME) surveys by institutional support and monitoring (ISM) consultants.

58 Appendix 11

6. Same assumptions and methodologies used at appraisal were applied for road roughness,

AADT1 calculation, traffic growth2 in the economic reevaluation. Traffic volume after the project

completion was collected from field survey during May-June 2019. The financial cost is actual

completion cost of the roads, and the standard conversion factor of 0.80 was applied in converting

financial costs into economic costs. The analysis period is set at 20 years. The year-wise

investment costs during the project implementation, from 2013 to 2017, were estimated using the

disbursement of the loan proceeds. It is assumed that the project benefits are generated from

2018 even though there are subprojects completed before 2018.

7. The major source of benefits from improving rural roads is savings in vehicle operating

costs (VOC) over the smoother road surface for vehicles of all types.3 The subprojects have

reduced TTC by 53% and 15% for non-motorized and motorized traffic respectively year-round in

average.4 The economic analysis takes into account the different times at which project costs are

incurred and benefits accrue. The economic costs are compared with the economic benefits, and

the net benefits are used to calculate the economic internal rate of return (EIRR). Future benefits

and costs are discounted back to the completion year’s price level. The routine and periodic

maintenance costs are assumed at Tk44,000/km and Tk440,000/km, respectively, which are

same as in the EIRR calculation at appraisal.

8. The economic internal rate of return (EIRR) for rural roads is estimated at 23.1%. The

sensitivity analyses with the same adverse variations at appraisal in project benefits also indicate

that the combined EIRRs are well above 12%. The annual cash flows for project costs and

economic benefits with EIRR and sensitivity analysis are presented in Table A11.1.

1 AADT was derived from the traffic count following some basic principles. The 12-hour traffic data was converted to 24-hour traffic using factors of 45% for market days and 30% for non-market days. Daily traffic was converted to weekly average daily traffic (WADT) based on the number of market and non-market days in a week. WADT = {(daily traffic x no. of market days) + (daily traffic x no. of non-market days)} ÷7 Traffic counts were carried out during rainy season. In Bangladesh, dry season is 6 months long and traffic is assumed to be 20% higher than the wet season. Thus, AADT has been estimated according to the following formula: AADT = {traffic (dry season) + traffic (wet season)} ÷ 2 = {1.2 * traffic (wet season) + traffic (wet season)} ÷ 2 = {(1.2+1.0)/2 x traffic (wet season)} ÷ 2 = {(1.1) x traffic wet season} = 1.1 x traffic wet season Therefore, AADT was derived from average daily traffic during rainy season by considering a common conversion factor equal to 1.1. The AADT has been considered as average of the AADT measured during dry and wet season. The AADT is calculated by applying adjustment factors to the tally count data obtained from the traffic stations in the field. A monthly multiplier derived from the Rural Infrastructure Improvement Project is applied for the adjustment to transform the traffic tally counts, which may have been taken at different times of the year and for different duration, into an AADT. 2 The average vehicle registration growth rate was 12.3% per year during 2010-2018. However, growth rate of 6% is

assumed for future traffic growth, which is convervative. 3 For estimation of benefit due to road development the following procedure was adopted: VOCS = (Pe - Pd) Qe + ½ (Pe - Pd) (Qd - Qe) ............................. (1) (VOC saving on existing traffic + VOC saving due to generated traffic) Where VOCS = Benefit due to VOC Saving Pe = VOC along the unimproved road Qe = Volume of Cargo or Passenger Movement along the earthen road Pd = VOC along the improved road Qd = Volume of Cargo or Passenger movement along the developed road 4 LGED, Dhaka, Project Completion Report (PCR), SRIIP, July 2018

Appendix 11 59

Table A11. 1: Annual cash flows for project costs and economic benefits (Unit: million tk)

Year Construction

Cost

Routine Maintenance

Cost

Periodic Maintenance

Cost

Total Cost

Normal Savings

Generated Savings

Total Savings

Cash Flow

2013 421.88 421.88 -421.88

2014 1,083.77 1,083.77 -1,083.77

2015 1,113.77 1,113.77 -1,113.77

2016 1,289.08 1,289.08 -1,289.08

2017 1,003.14 1,003.14 -1,003.14

2018 40.48 40.48 471.90 77.34 549.23 508.75

2019 42.50 42.50 1,415.69 232.01 1,647.70 1,605.19

2020 44.63 44.63 1,500.63 245.93 1,746.56 1,701.93

2021 46.86 46.86 1,590.67 260.69 1,851.35 1,804.49

2022 49.20 516.61 565.81 1,686.11 276.33 1,962.43 1,396.62

2023 51.66 51.66 1,787.27 292.91 2,080.18 2,028.52

2024 54.24 54.24 1,894.51 310.48 2,204.99 2,150.74

2025 56.96 56.96 2,008.18 329.11 2,337.29 2,280.33

2026 59.80 59.80 2,128.67 348.86 2,477.52 2,417.72

2027 62.79 659.34 722.13 2,256.39 369.79 2,626.18 1,904.05

2028 65.93 65.93 2,391.77 391.97 2,783.75 2,717.81

2029 69.23 69.23 2,535.28 415.49 2,950.77 2,881.54

2030 72.69 72.69 2,687.40 440.42 3,127.82 3,055.13

2031 76.33 76.33 2,848.64 466.85 3,315.49 3,239.16

2032 80.14 841.50 921.64 3,019.56 494.86 3,514.42 2,592.77

2033 84.15 84.15 3,200.73 524.55 3,725.28 3,641.13

2034 88.36 88.36 3,392.78 556.02 3,948.80 3,860.44

2035 92.78 92.78 3,596.34 589.38 4,185.73 4,092.95

2036 97.41 97.41 3,812.12 624.75 4,436.87 4,339.46

2037 102.28 1,073.99 1,176.27 4,040.85 662.23 4,703.08 3,526.81

EIRR = 23.1%

EIRR for Sensitivity Analysis (Benefit decreased by 20%) = 19.9%

EIRR for Sensitivity Analysis (50% traffic growth) = 21.1%

Source: ADB estimates

2. Economic Analysis of Growth Center Markets (GCMs) 9. The economic analysis of the GCM was carried out in accordance with ADB's Guidelines

for the Economic Analysis of Projects, 2017 and this economic reevaluation closely follows the

methodology used in the economic analysis at appraisal. Economic analysis of GCMs is

conducted for all GCMs, based on the survey results of 9 GCMs, which have been monitored in

the BME surveys by ISM consultants.

60 Appendix 11

10. A quality deterioration savings approach was used to quantify benefits.5 The turnover and

quality deterioration savings were estimated based on market surveys. The construction and

maintenance costs were included in the cost estimates. The benefits of GCMs have been

compared with the economic costs of the total capital investment and maintenance cost over the

life of the project (20 years).

11. The costs of developing GCMs include construction and maintenance. The capital costs

of GCMs are taken as unit costs, expressed in financial values, and converted to economic values

through the application of a Standard Conversion Factor of 0.80. It is assumed that the routine

and periodic maintenance costs will increase at the rate of 5% and 30%, respectively, and the

growth of market turnover will increase at the rate of 3% for the analysis period.

12. The economic benefits from the improvement of GCMs have been assessed as the

reduced spoilage of perishable goods. Reduced spoilage has been calculated for each perishable

commodity sold as the difference between the value of sales at the maximum selling price and

the value of sales at the average selling price. This difference reflects the extent to which prices

will be reduced as a result of produce deterioration throughout the day. The purpose of the GCM

improvement is to eliminate the price reduction by eliminating the cause of produce deterioration.

Calculation of the economic benefits is based on the collection of data through field surveys

includes hat and non-hat days at the markets which have been selected for monitoring.

13. The combined EIRR of the GCMs is estimated at 23.3%. The sensitivity analyses with the

same adverse variations at appraisal in project benefits also indicate that the combined EIRRs

are well above 12%. The annual cash flows for project cost and economic benefit with EIRR and

sensitivity analysis are presented in Table A11.2.

5 The quality deterioration saving (QDS) is estimated according to the following formula: QDS = Tu (Pu - Pd) + ½ (Pu - Pd) (Td - Tu) = (Pu - Pd) (Tu - Td) /2 Where, Tu = Turnover of Undeveloped Market Td = Turnover of Developed Market Pu = Pum – Pua Pd = Pdm – Pda Where, Pum = Maximum Price Obtained in the Undeveloped Market Pdm = Maximum Price Obtained in the Developed Market Pua = Actual Price Obtained in the Undeveloped Market Pda = Actual Price Obtained in the Developed Market A simple algorithm was developed to quantify and annualize the QD saving by comparing QD ratios of ‘before’ and ‘after’ situations. The QD ratios were based on actual market surveys. QD saving ‘after’ development was estimated by the following simple relation:

QD saving in % = QD ratio from the undeveloped market - QD ratio from the developed market

Appendix 11 61

Table A11. 2: Annual cash flows for project costs and economic benefits (GCMs) (Unit: million tk)

Year Construction Cost

Routine Maintenance Cost

Periodic Maintenance Cost

Quality Deterioration Saving (QDS)

Net Cash Flow

2013 41.40 -41.40

2014 107.97 -107.97

2015 101.71 -101.71

2016 111.82 -111.82

2017 82.97 -82.97

2018 20.33 181.39 161.06

2019 21.34 186.83 165.49

2020 22.41 192.44 170.03

2021 23.53 198.21 174.68

2022 24.71 155.67 204.16 23.78

2023 25.94 210.28 184.34

2024 27.24 216.59 189.35

2025 28.60 223.09 194.48

2026 30.03 229.78 199.75

2027 31.54 198.67 236.67 6.47

2028 33.11 243.77 210.66

2029 34.77 251.09 216.32

2030 36.51 258.62 222.11

2031 38.33 266.38 228.05

2032 40.25 198.67 274.37 35.45

2033 42.26 282.60 240.34

2034 44.37 291.08 246.70

2035 46.59 299.81 253.22

2036 48.92 308.81 259.88

2037 51.37 198.67 318.07 68.03

EIRR = 23.3%

EIRR for Sensitivity Analysis (Benefit decreased by 20%) = 18.4%

Source: ADB estimates