World BankCountry Water Resources Assistance Strategy:

Inland Water Transport Sector

Background

q Bangladesh Riverine Country: Navigable Waterways:8300 km in monsoon (June – Oct.)3800 km in dry period (Nov. – May)

q Total Transport = 8% of GDP, IWT = 15% of Transport GDP *

q IWT is a cheap mode of transport & in SW Region, only mode of transportq Declining river flows/ Siltation/ Flood Management Infrastructureq Budget reduced for IWT sector (in FY2002, IWT allocated 6.6% of total

Transport sector, despite accounting for more than 25% of people and commodities)

q Dredging volume declined from 3.0Mm3 in mid-1980s to 2.7Mm3q About 3.0 million people involved in the sector, mostly poor. (IPRSP)

• * Source: Bangladesh Bureau of Statistics (2000), Statistical Yearbook of Bangladesh

Mode % Of Passenger % Of Freight

Road 45 60

Rail 25 15

IWT 30 25

Past and Projected Transport Modal Share and Outputs

Year Passenger Transport Freight Transport

Road (%)

Rail(%)

IWT(%)

Road(%)

Rail (%)

IWT(%)

1974-75 54 30 16 35 28 37

1996-97 73 13 14 63 7 30

2004-05 79 10 11 68 11 21

2015 82 10 8 72 11 17

Source: BITTS by Planning Commission

Sector, Institutions, Policies

Major Public Institutions:M/o Shipping (MoS)/Deptt of Shipping BIWTA/ BIWTC

Private:Various Associations of Launch Owners,Cargo Vessel Owners, Tanker Owners, etc

Policy – 15 year Prospective Plan, M/o Shipping, 1995-2010-- improve navigability-- development of inland container ports and inland river ports-- development of rural launch facilities-- improving safety in the waterways and in the country boat sector-- Protocol on Inland Water Transit & Trade

(effective since 1950 – Bilateral trade and transit traffic with India)

NWPo and NWMP give High Priority for IWT Sector

Public Expenditure Allocation by Surface Mode 1975-1995(Million Taka)

Mode

(All Figs in Million Taka)

1st Five Year Plan (1975-80)

2nd Five Year Plan (1980-85)

3rd Five Year Plan (1985-90)

4th Five Year Plan (1990-95)

IWT 186.2 40% 316.8 28% 571.0 23% 793.0 14%

Rail 126.1 27% 413.4 36% 836.0 35% 835.0 16%

Road 149.6 33% 409.0 36% 1020.0 42% 3745.0 70%

Total 461.9 100% 1139.3 100% 2427 100% 5373.0 100%

Total Transport Sector as % of Public Expenditure

11.8% 11.6% 10.5% 16.2%1

Source: MOS (1994) Provisional Plan1 The proportion reflects the additional expenditure on the Jamuna Bridge Project

BIWTA/BIWTC Income & Expenditure 1991/92 – 1995/96

Source: BIWTA/ BIWTC Audit Reports 1992/93, 1993/94, 1994/95 & 1995/96

BIWTAParticulars 1991/92 1992/93 1993/94 1994/95 1995/96

(Mill Taka) (Mill Taka) (Mill Taka) (Mill Taka) (Mill Taka)

Income: 398 458 480 512 550

Expenditure 398 464 527 678 766

Surplus(Deficit) 0.4 (6) (46) (166) (215)

BIWTC

Income: 612 659 726 741

Expenditure: 640 688 732 728

Surplus(Deficit) (28) (29) (7) 15

Route Class

• Route Class

Class of Route Min Draught, m(ft) Length (km)Class I (Trunk Route) 4.0m (12ft) and above 683Class II (Transit Route) 2.0m (6ft) and above 1000Class III (Secondary Route) 1.0m (3ft) and above 1905Class IV less than 1.0m (3ft) 2380----------------------------------------------------------------------------------------------

Source: BIWTA Annual Ports and Traffic Report 1994-95

(2004 position not known, but reportedly not affected much)

Main Issues

• Inland Water Transport- Which sector should it belong to ?- Shipping/ Water Resources/ Transport ?- As IWT is a Transport mode, should it be under the M/o Communication?- Absence of an Integrated Transport Policy & Strategy

• IWT given low priority, both in terms of budget and planning- Condition of Inland Ports: Inadequate Mooring and Storage facilities- Inadequate Rural Landing facilities- Management of Country boats

Main Issues (cont’d)

• Safety, Navigability• Siltation of Routes vis-à-vis Dredging• Erosion/ Submergence of Landing Stations • Defective Vessels/Overloading• Inadequate Monitoring, Guiding and Warning systems• Institutional Capacity/ Reform/ HRD• Environment Issues/ WQ• Stakeholders Involvement

Collapse of ChandpurBIWTA Terminal à

Submergence of a Jettyß

CWRAS: Pictures

Sedimentation:Jamuna Left Bank,

upstream of Futikjani River à

Erosionof River Bank

ß

CWRAS: Pictures

The Double-Decked MV Asha Jaoa remains afloat with its front caved in after it collided with another launch in the Meghna river early yesterday, killing at least 12 people.

Launch Accident

IWT-III Project

IWT-III Project – Success/ Failure • BIWTA/BIWTC Financial Recovery Plan: Unsatisfactory

(BIWTA: Loss in Revenue Tk 244m in FY 2000, Cum. in FY 2000- Tk 3.4 bill.)

• Procurement of Inland Pontoons: 175 provided in Rural areas• Rehabilitation of Five old Dredgers: Successful

• 12.5 million m3 dredged as planned • Establishment of ISSA: Implemented?

• Establishment of 5 Regional Country boat Centres: Unsuccessful• Institutional Development: Unsatisfactory• Aids to Navigation: (200km of Class I and II and 918km others)

• Electronic Position Fixing System: Countrywide DGPS system installedenabling BIWTA to deal with hydrographic survey digitally.

Dredging

NWMP: Investment Portfolio: River Dredging for Navigation

- Seven Year Dredging Plan: Dredge 363 million m3, ie, Annual 52 Mm3

Existing capacity: 8.8 million m3 annually (1/6th)

Capital Dredging recommended: Meghna/ Padma/ Titas/ Brahmaputra/Madhumati/ Buriganga/ Bhairab/ Arial Khan/ Tetulia

A Comprehensive Dredging Management Plan required –Participation of Private sector and coordination with BWDB’s River Dev Programs

Both Capital & Maintenance Dredging to be funded by GoB –cost recovery from IWT users

Government Strategy:

- Private Sector Participation (PSP): Landlord/BOT Concept- Development of Service Agreements/ Collaboration between M/o

Shipping and IIFC (Construction of Khanpur Container terminal on BOT Scheme)--Construction of New River Terminal at Paanga, opposite Pagla--Establishment of a Land Port at Teknaf on BOT basis--Establishment of a Land Port at Baglabandh on BOT basis--Lease/ Charter BIWTC Cargo Fleets to Private Sector--Follow up Successes of IWT-III Project, funded by WB

Shipping Policy is approved by the Ministry of Shipping; of which one of the key approach is the promotion of Private Sector Participation (PSP). For the first time, BOT (build, operate, transfer) plus Landlord concept have been agreed by the Government

Responding to the Issues

World Bank Priorities

• WB Priorities in IWT Sector- Revive IWT-IV Project- BOT/ Land Lord Concept/ Private Sector Participation (PSP)- Dredging/ Procurement of Dredgers including PSP- HRD/ Training/ Workshop/ Stakeholders’ Interest- Redundant Staff/ Landing facilities, Pontoons/ ISSA- Investment Project Landing:- Rehabilitation of Major Inland River Ports (PSP/ Landlord) in 5 years- Construction of More Jetties- Implementation of Safety Regime for IWT- Modernization of Country boats

Recommendations

• IWT should preferably be placed under M/o Communication• Institutional Capacity of Parastatals should be enhanced/ HRD• Rehabilitation of Inland River Ports through PSP• Safety during Navigation must be ensured• Defective Vessels MUST not be allowed to ply in waters/

Design should be improved• Pursue Development partners/Donors for Participation/Funding • Stakeholders’ Involvement • Upliftment of Country boat• More Rural Landing facilities• Initiate IWT-IV Project (with WB)

• Modern Monitoring Toolsshould be utilized

Thank You

• What is the impact of the suggested interventionson poverty?

Type 1: Broad region -wide

water resource interventions

Type 4 : Targeted improved water

services

Type 2 : Targeted

water resource interventions

Type 3 : Broad impacts through

water service delivery reforms

affecting water...

resource development & management

service delivery

Nature of intervention:

broadpovertytargeted

§ What is the comparative advantage of the World Bank in addressing an issue?

§ coordination across Ministries and sectors§ combination of financing & knowledge§ project size§ longstanding World Bank engagement§ experience from other countries§ facilitate cross-country cooperation

FOR DISCUSSION