Document of The World Bank FOR OFFICIAL USE ONLY Report No. 6731-BD STAFFAPPRAISAL REPORT BANGLADESH ROAD REHABILITATION AND MAINTENANCE PROJECT May 26, 1987 Transportation Division South Asia Projects Department This doaunent has a restrcted dtibution and may be used by recipents only in the performnwce of thdir offlcial dutIes ts content may not otherwise be disclosed whout Wodd Ban ann Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript
Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No. 6731-BD
STAFF APPRAISAL REPORT
BANGLADESH
ROAD REHABILITATION AND MAINTENANCE PROJECT
May 26, 1987
Transportation DivisionSouth Asia Projects Department
This doaunent has a restrcted dtibution and may be used by recipents only in the performnwce ofthdir offlcial dutIes ts content may not otherwise be disclosed whout Wodd Ban ann
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CURRENCY EQUIVALENTS
Currency Unit Bangladesh Taka (Tk)US$ 1.0 = Tk 30.90SDR 1.0 * US$ 1.306
SYSTEM OF WEIGHTS AND MEASURES: METRIC
Metric US System
1 meter (m) 3.2808 feet (ft)1 square meter (I2) u 10.764 square feet (sq.ft)1 cubic meter (m ) = 35.315 cubic feet (cu.ft)1 kilometer (km) = 0.6214 mile (mi)1 square kilometer (km2) 0.3861 square mile (sq.mi)1 metric ton 2,204.6 pounds (lbs)
FISCAL YEAR
July 1 - June 30
ACRONYAS AND ABBREVIATIONS
AADT Annual Average Daily TrafficADB Asian Development BankBR = Bangladesh RailwayERR = Economic Rate of ReturnGOB Government of BangladeshICB = International Competitive BiddingIDA International Development AssociationIWT = Inland Water TransportLCB = Local Competitive BiddingMVOC = Motor Vehicle Operating CostNPV Net Present ValueODA Overseas Development AdministrationOPEC-Fund OPEC Fund for International DevelopmentPCWD Project Civil Works DirectorRHD 3 Roads and Highways DepartmentRMP = Road Master PlanSMEC = Snowy Mountains Engineering CorporationSOE Statement of ExpenditureTOR - Lerms of ReferenceUpazilas Local GovernmentsUNDP United Nations Development Programme
FOR OMCIAL USE ONLY
BANULADESf
STAFF APPRAISAL REPORT
ROAD REHABILITATION AND MAINTENANCE PROJECT
Table of Contents
Page
CREDIT AND PROJECT SUMMARY ..................;.................. i
I. INTRODUCtION 1
II. THE TRANSPORT SECTOR .................. 2
Ai The Transport System 2B. The Road Subsector 5C. IDA Involvement in the Road Subsector 9
III. THE PROJECT ......................... ...... .... *e* 10
A. Project History and Objectives ....................... 10B. Project Description .......................... ... 11C. Civil Works ........ 12D. Institutional Development Program ... 13I. Project Cost and Financing 17F -Implementation .... 19
IV. ECONOMIC EVALUATION *.* ....... ..... ................ 26
A. Benefits 26B* Risks 29
V. AGREEMENTS REACHED AND RECOMMENDATIONS 29
The project was prepared on the basis of an appraisal mission in January 1987by Jaffar Bentchikou (mission leader and Highway Engineer) and Anthony Ramuglia(Senior Transport Economist). The economic parts of this report were preparedby Jerry Bigosinski (Economist, Consultant). Secretarial assistance wasprovided by Mrs. Margaret Carter.
This document has a restricted distribution and may be used by recipients only in the performanceof their offecial duties Its contents may not otherwise be disclosed without World Bank authoriation.
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ANNMMCS
Annex 0.1 - Selected Documents in the Project File ............. 32Annex 2.1 - Traffic Growth by Mode ............................. 33Annex 2.2 - RHD Road Network ................................... 34Annex 2.3 - RHD Organization and Staffing ...................... 38Annex 2.4 - Road Construction and Maintenance Expenditures
and Financing ...... 43Annex 2.5 - Comparison of Road Sector Revenues
and Expenditures ............. ; 44Annex 3.1 - Terms of Reference for the Supervising Consultant .. 45fnnex 3.2 - Draft Terms of Reference for the Road Master
Plan Study .................................... 55Annex 3.3 - Agreed Road Maintenance Action Plan .... ............ 63Annex 3.4 - Draft Terms of Reference for the Road Materials
and Standards Study ... .......... ................. 70Annex 3.5 - Terms of Reference for the Domestic Construction
Industry Study 000 ....... .................... 78Annex 3.6 - Project Cost Estimates and Financing Plan 0000000000 84Annex 3.7 - Project Implementation Schedule .................... 89Annex 4.1 - Summary Project Benefits ........................... 92Annex 4.2 - Sensitivity Test Results ........................... 93
LAP
LIRD No. 20236
BANCLADESH
ROAD REMABILITATION AND MAINTEMANCE PROJECT
CREDIT AND PROJECT SUMOARY
Borrower s People's Republic of Bangladesh
Credit Amount : 8CR 78.1 million (US$ 102 million equivalent)
Term s Standard
ProjectDescription s The project includes Civil 'Works and an Institutional
Development Program: (a) The Civil Works comprise:(i) road rehabilitation works on about 305 km of roadsand bridges in the northwest of Bangladesh, which will besplit into two tranches of contracts awarded about twoyears apart; (ii) deferred maintenance works on about 335km of other major roads in the northwest; and(iii) supervision of the civil works. (b) TheInstitutional Development Program comprises: (i)preparation of a Road Master Plan; (ii) implementation ofan action plan for improved road maintenance; and(iii) implementation of an action plan to strengthen theconstruction industry.
ProjectBenefitsand Risks : Roads have deteriorated to the extent that they require
restoration before they can be made maintainable. Theproposed rehabilitation and deferred maintenance ofproject roads will reduce vehicle operating -costs, roadmaintenance costs and travel times. The feasibilitystudy indicates that the economic rate of return of eachproject component is 28X or more and overall exceeds 382.
The first projeet risk involves failure to maintainproject roads. It will be minimized by implementation ofthe Road Maintenance Action Plan and its linkage todisbursements on civil works.
The second project risk arises from the.linkage of secondtranche IDA disbursements with implementation of theInstitutional Daeelopment Program which may delay CivilWorks. Thip calculated risk is worth taking because itminimizes the greater risk of failure of theInstitutional Development Program. Furthermore, it hasbeen minimized by the design of the program whichincludes a limited number of elements, all of which canbe closely monitored, and the appointment of a ProjectCoordinator to oversee project implementation.
The third project risk is that of civil works failure dueto the lack of adequate engineering and managementcapacity to cope with the sharp increase in overall work
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volume. This risk has been minimized by: (a) projecttranching; (b) the establishment of a special ProjectCivil Works Director's Office with appropriate technicalassistance; and (c) training of RED staff for thesupervision of contracted works.
Summary Pro'ect Cost Estimates a/(US$ Million)
Estimated Costs: Forei8n Local Total
I Civil Works 40.6 71.2 111.7
II Institutional Development Program 3.6 1.4 4.9Base Cost 44.1 72.5 116.6Physical Contingencies 4.4 7.3 11.7Price Contingencies 2.7 26.7 29.3Total Project Cost 51.2 106.4 157.6
a/ A total of US$28.7 million equivalent of taxes and duties are includedin local costs (US$106.4 million equivalent) and will be financed byGovernment. Some totals do not add up due to rounding.
b/ Figures reflect estimated financing requirements. UNDP has been approachedfor financing technical assistance elements included in "Others".
ERR is 28% for the least attractive project component and exceeds 38% forthe overall project.
!: IBRD 20236
ASPTRMay 26, 1987
BANGLADESH
ROAD REACUILITATION AND MAINTENANCE PROJECT
I. INTRODUCTION
1.01 Background. Bangladesh's investment program in the transportsector as a whole, and in the road subsector in particular, has led toimbalanced investments among transport modes and to insufficient roadinvestments over-emphasizing new construction of secondary and tertia'y r adsat the cost of maintenance of the full network. In addition Load matei.alsare scarce and expensive and have been inefficiently used because of the poorstandards followed, inadequate supervision and the almost total lack ofcompaction. As a result, recent traffic growth has damaged most of thepresent primary road network. Its very poor condition requires extensiverehabilitation to bring it to a maintainable stage.
1.02 IDA has supported two road projects in Bangladesh. The first oneincluded construction of the Feni Bypass which had a premature pavementfailure under unexpected axle loadings soon after completion, in part due topoor design and workmanship, and had to undergo major repair andstrengthening works. The. second one had a difficult implementation period.Nevertheless project objectives have been largely met. Meanwhile, IDAcurtailed lending to the road subsector due to COB's lack of commitment tomaintain the existing national road network. Recently, however, COB hasrecognized the necessity for proper maintenance and has asked IDA and ADB t-support relevant projects in different regions.
1.03 Rationale for IDA Involvement. IDA's involvement in the subsectorhas already led to a recognition of the need for proper maintenance, theefficacy of making contractors fully responsible for works using their ownequipment and materials and the consequent reduction of force accountmaintenance works in favor of works by contract. IDA's proposed involvementin this project, in collaboration with OPEC-Pund, ODA, UNDP and ADB, isdesigned to foster a program of policy improvements focussed on a betterbalance between road construction and maintenance works and improvedefficiency in planning auL implementation. The development of a Road MasterPlan under the present project will help prepare a suitable framework forfuture road projects in Bangladesh.
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II. THE TRANSPORT SSCTOR
A. The Transport System
2.01 The transport system of Bangladesh is defined and constrained bygeography and climate. The extensive river systema, accounting for 5-6Z ofthe area of Bangladesh, flow in a north-to-south direction wich the countrydivided in half by the mighty Jamuna (Brahmaputra) River. Because of this,east-west transport is constrained and roads and railways costly to build.Transport is also affected by the climate which is governed by the monsoonseason (roughly six months). During that period, part of the road networkbecomes intermittently flooded and impassable while the navigable portion ofinland waterways expands. On the other hand, increased irrigation demandsand siltation have reduced the length of dry season navigable waterways inrecent years.
2.02 The present modern transport system consists of a recentlydeveloped, rapidly growing but poorly maintained road network served by apredominantly private road transport industr,-; an aged, ailing and heavilysubsidized government-owned railway and an extensive, resilient andrelatively efficient inland water transport system dominated by privatecarriers. The country's seaborne commerce is served by two deepwater portsand there is also a small but growing civil aviation industry.
2.03 Transport system improvements are a priority consideration of theThird Five-Year Plan (FY86-90). Total transport sector investments areprojected at 41.4 billion Taka (US$1,340 million) including 15.0 billion Taka(US$485 million) of private sector investments primarily in the road andinland water transport industries. Much public sector investment in thetransport sector will be to complete ongoing projects and for the improvementand maintenance of the existing facilities and equipment. Priorities for newprojects are accorded to facilities connecting Upazila headquarters to thetransport network.
2.04 While main transport objectives are generally in line with the Bankstrategy for sector development, they lack explicit policies and programs forlowering overall transport costs and increasing efficiency of the transportsector. They put too much emphasis on the rail mode. They lack theintegrated program of construction, modernization, rehabilitation andmaintenance that the road subsector needs. The proposed and future Banktransport projects in Bangladesh will seek to address these issues.
Traditional Vs. Modern Transport
2.05 Within the transport sector, there is active coexistence of thetraditional (wind, animal, man-powered) and modern (motorized) transport
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modes. The traditional transport component includes such non-motorized modesof transport as country boats, bullock carts, cycle rickshaws, bicycles andman-pulled carts. These are labor-intensive and employ technologies whichhave evolved slowly and changed little over the centuries.
2.06 The significance of traditional transport in the national economytends to be overlooked. While it is not possible or desirable to effectivelyservice modern industry, large scale agriculture and commerce withtraditional transport, there are still significant areas where traditionaltransport can play a useful role especially in a country like Bangladesh withits low labor costs.
2.07 According to the most recent estimates, there were some 660,000country boats in operation in 1977 with about 40% operating commercially.The total carrying capacity of the country boats was estimated at about950,000 tons compared to 360,000 tons for the total (public and private)motorized fleet. It was also estimated that in 1977 there were 510,000bullock carts with a carrying capacity of 250,000 tons compared to a-truckfleet with a carrying capacity of 100,000 tons. More recent (1983) estimatesof cycle rickshaws used for passenger and cargo transport place their numberat 100,000 to 150,000.
2.08 The modern transport system described in more detail below,includes trains, motorized road vehicles, ships and aircraft and theirinfrastructure. As such, it requires significant investment and considerablefunding for appropriate maintenance of both the infrastructure and equipment.However, because of economies of scale and more intensive utilization, unitcosts of modern transport are generally significantly less than those oftraditional transport (Annex 2.1, Traffic Growth by Mode).
Rail
2.09 There are about 2,900 kms in Bangladesh's rail network. Of this,some 970 kms, mostly in the western half of the country, are broad gauge andthe rest, mostly in the eastern half of the country, are meter gauge. Themeter gauge network is currently carrying 77% of the passenger-kms and 71% ofton-kms.
2.10 Truncated as a result of the partition and heavily damaged in theWar of Independence, the Bangladesh Railway has never fully recovered itsearlier predominant position. Commodity traffic cannot be efficientlycarried by railwar because of short average hauls, shipping delays andunreliability. Its volume declined from 3.2 million tons in 1979/80 to 2.8million tons in 1984/85. Much of the present commodity traffic is captivepublic sector freight. Passenger traffic (133 million passengers in 1984/85)has grown only modestly despite strong GOB encouragement and continues to beplagued by a high volume of ticketless riders. Inefficient management and
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heavily subsidized cperations are other symptoms of the general malaisecharacterizing the Bangladesh Railways.
Inland Water Transport
2.11 Inland Water Transport (IWT) is the oldest medium and thetraditional long distance means of transport in Rangladesh, well suited toits deltaic topography. There are over 8,000 km8 of navigable waterwaysduring the monsoon season but only 4,800 khs during the dry season.
2.12 IWT is dominated by privately owned, non-motorized country boatswhich, in recent years, have accounted for about 70t of its passenger andcargo carrying capacity. The mechanized IVT, both public and private, isrelatively more important on the all-seas6n, more heavily travelled routesbetween major urban and comercial centers and between them and the deepwater ports.
2.13 The mechanized IWT carried 5.7 million tons of cargo and 141million passengers in 1984/85. In recent years, the cargo and passengertraffic-has grown, respectively, at 41 and 8t annually. The growth mighthave been higher had it not been for the growing competition from roadtransport, increasing siltation of navigation channels and inadequateriverine port facilities.
Aviation
2.14 Civil aviation is growing but still small and carries a negligibleportion of domestic traffic. Air transport links Dhaka, the capital, withmajor cities and with several countries in Asia and Europe.
Sea Ports and Shipping
2.15 Bangladesh has two seaports, one at Chittagong in the east andanother at Chalna in the west. Chittagong is the older and larger of thetwo, handling 7.0 million tons of seaborne comerce in 1985/86. The ChalnaPort and anchorage (2.0 million tons in 1985/86) was constructed in the 1950sto relieve the congestion at Chittagong 8nd to provide a seaport for thewestern part of Bangladesh which, before indtpendence, had relied on theIndian port of Calcutta for the movement of sea cargo, primarily juteexports. Both ports are general cargo potts with low productivity and longship turnaround times. The Chittagong Port Project (Credits 1504-2 and1247-BD) was approved May 18, 1982, to provide container facilities andimprove cargo handling operations at Chittagong.
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B. The Road SubSector
The Road Network
2.16 The major road network consists of about 6,200 kms of paved (someone-lane only) and about 4,700 kmas of unpaved roads constructed by the Roadsand Highways Department (RHD). In addition, some 133,000 kms of mostlyfair-weather roads, constructed and maintained by the local governments(Upazilas), serve as feeder, farm-to-market and tertiary roads. Many ofthese are passable for only a few months of the year and then only byfour-wheel drive vehicles. Even tho main roads are cut from time to time bymonsoon floods and many have inadequate ferry crossings at key points(Anne" 2.2, RED Road Network).
2.17 The general shortcomings of the road network notwithstanding, roadtransport has consistently increased its share of the total freight trafficcarried by motorized transport modes. From about 44Z of total ton-kms in1977 the road transport share has risen to about 551 in 1985. The roadnetwork also carried about 511 of inter-city passenger traffic in terms ofpassenger-kms; this figure has varied little over the last decade, duelargely to the competitive strength of the inland water transport which hasoffset the decline in rail transport effectiveness.
2.18 Road Traffic and Transport Industry. The intensity of motorizedtraffic on Bangladesh roads is still relatively low despite the country'shigh population density and limited road network. Average daily trafficexceeds 1,000 vehicles on only 11 and is below 250 vehicles daily on 521 ofRHD roads. Much of the road traffic consists of heavier vehicles such asbuses and truchzs which frequently travel overloaded contributing, togetherwith the insufficient and faulty road design, to the deterioration of theroads and bridges.
2.19 However, road traffic has grown rapidly in recent years averaging8.32 annually between 1980 and 1985, due in large part to the rising level ofeconomic activity, easing of restrictions on motor vehicle imports and theexpansion of motor vehicle asbembly operations in the country. Passengerroad traffic is carried almost entirely bw buses; intercity passenger cartravel is still in the embryonic stage. Most cargo traffic is carried in twouaxle 7-ton trucks between major urban centers and between them and the seaports.
2.20 The road transport industry presents a mixed picture. The truckingindustry, privately owned and highly competitive, operates largely free ofrestrictions on entry and tariffs and is, on the whole, profitable. Whilethere are no reliable motor vehicle fleet estimates in the country, thecommercial transport fleet is estimated at 16,500 trucks. Passengertransport is provided by about 15,500 public and private buses and minibusesoperating on fixed routes and charging uniformly low tariffs set by the
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Government. The publicly-owned passenger transport service has been steadilylosing money and is heavily subsidized, while private operators cope with thelow tariff problem by overloading and overcharging.
Road Administration
2.21 The Roads and Highways Department (RED) of the Roads and RoadTransport Division, Ministry of Communications, has primary responsibilityfor planning, design, construction, operation and maintenance of the nationaland regional highway systema. Construction of feeder roads has also beentemporarily vested with RHD until the local governments (Upazilas) arecapable of taking over this responsibility. COB has recently agreed to letlocal contractors carry out road construction projects. RHD is alsoresponsible for the planning, construction and maintenance of bridges,culverts and ferry terminals, operation of ferry services, repair andmaintenance of road construction equipment and other ancillary activities.
2.22 To fulfill these functions, RED is organized into nine "wings"(departments). Of these, five zonal wings (Dhaka, Chittagong, ChittagongHill Tracts, Rajshahi and Khulna) are responsible for the planning, design,construction and maintenance of all roads, bridges, ferries and ferryterminals in the zone except those included in foreign-assisted projects,which are the responsibility of a Special Projects Wing. The remaining threewings are concerned with Administration, Planning and Development, andMechanical (equipment, workshops, ferries and storage). AL present, RHD isoverstaffed, bureaucratic and inefficiently organized. It lacks a properaccounting system, formal training facilities and programs, and acceptablelevels of planning and supervising its activities (Annex 2.3, REDOrganization and Staffing).
Road Construction
2.23 From less than 100 kms at the end of the Second World War, thepaved road network in Bangladesh has expanded to over 6,200 kms at thepresent time. As a result, the basic national grid, except for a few gaps,is substantially in place but has substandard pavement strengths, thicknessesand widths (which trigger high maintenance costs and provide insufficientcapacity) and many unbridged rivers. In addition, relative to its populationdensity and by comparison with neighboring countries, the road networkremains underdeveloped at the secondary and tertiary level. This situationis due to inefficient project selection procedures, poor technical standards,inadequate supervision, an almost total lack of compaction and the highconstruction cost resulting from substandard soil characteristics, periodicflooding and the scarcity of traditional construction materials. Inaddition, COB has given priority to new construction even though highconstruction costs and moderate traffic volumes make some of the selectedinvestments premature and cost-ineffective. As a result, insufficient moneyhas been allocated to routine and periodic maintenance of the primary road
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network which has deteriorated to the point that there is now a need forurgent rehabilitation of many roads and bridges.
2.24 As in the case of countries of the region that are facing similarproblems and that are classified in Category IV of the Road DeteriorationProblem in Developing Countries (Transportation Department, February 1987),Bangladesh needs an integrated program of construction, modernization,rehabilitation and maintenance in the road subsector, to meet the burgeoningdemand for road transport and sustain its economic development. The donorsactive in the sector are providing several key elements to such a program,and thus compensate for the weaknesses of the Third Five-Year DevelopmentPlan. Japan is financing (FY87 - US$35 million) a bridge across the MeghnaRiver and has studied another bridge at the Meghna-Gumti crossing, both onthe Dhaka-Chittagong Highway. ODA (UK) has studied and plans to finance(FY87 - US$20 million) a country-wide bridge rehabilitation program. Chinais financing (FY87 - US$35 million) a new bridge across the Buriganga Rivernear Dhaka. ADB is financing (FY88-US$120 million) a Road ImprovementProject on about 375 km of national roads in the south and a Feeder RoadsImprovement Project (FY86-US$58 million) which includes 310 km of roads inthe northern part of the country.
2.25 In addition to financing high priority rehabilitation andmaintenance needs, the proposed project will also include an InstitutionalDevelopment Program which, through proposed Road Master Plan and RoadMaterials and Standards Studies, will assess the relative balance of the roadsubsector objectives, explicitly develop the integrated program which is nowonly implicit and ensure its use in preparing future Five-Year Plans.
Maintenance
2.26 Road maintenance on major roads is performed by the zonal officesof RED. Maintenance of other ro4ds is the responsibility of localgovernments. In addition, RHD looks after some 2,003 bridges although nostandard inventory of the latter is kept and no up-to-date inventory ofcondition is available. According to recent surveys, routine and periodicmaintenance is generally inadequate and one-third of the existing roads andbridges are in poor condition and urgently need repairs.
2.27 This sad state of affairs has policy, organizational, financial andtechnical roots. On the policy level, GOB has long assigned low priority toroad maintenance, in favor of new construction and improvements.Organizationally, RED lacks proper structure for effective road maintenance.This is true of both the headquarters and zonal wing offices and appliesespecially to the planning and supervision of road maintenance activities.Budgetary allocations for road maintenance have been woefully inadequate inrecent years, averaging less than one half of real needs. This has resultedin substandard maintenance on some more heavily-travelled roads and bridgesand total lack of maintenance on others. Lack of adequate equipment and
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spare parts has been another factor hindering efficient road maintenanceactivities. This has been due, in part, to financial constraints but also tothe heterogenous nature and obsolescence of RHD's equipment pool.
2.28 The Road Maintenance Action Plan (paras 3.18-3.31), another keyelement of the project's Institutional Development Program, will addressthese problems.
Financing
2.29 New investments and improvements in the road, bridge and ferrysystems absorbed 7 billion Taka (US$227 million) or 80% of available fundsduring the second plan period (FY1981-85). The pace of new constructionaccelerated in the most recent period averaging over 1.6 billion Takaannually, due in part to the greater availAbility of foreign aid funds (Annex2.4, Road Construction and Maintenance Expenditures and Financing).
2.30 Road maintenance expenditures, financed from current revenues,averaged under 400 million Taka per year in recent years as against an annualneed for about 900 million Taka necessary to maintain tue existing network'sconditior. As a result, the condition of major, more heavily-travelled roadshas deteriorated rapidly to a point where total rehabilitation is necessary.It is the purpose of this project to rehabilitate the roads which have beenneglected too long and to slow down the deterioration process throughdeferred maintenance elsewhere.
2.31 According to a recent Road Sector Taxes and Expenditure Study, roadsector revenues, including a concealed fuel tax (difference in petroleumproduct prices between ex-refinery and world price levels), reached 3.9billion Taka in FY 1984/85 and an estimated 5.4 billion Taka in 1986 as aresult of a sharp drop in world petroleum prices. In recent years,therefore, road sector revenues have been more than sufficient to financeadequate road sector maintenance levels. While, therefore. it may not benecessary to raise the overall level of such user charges, there are reasonsto believe that the distribution of these charges by vehicle type may beinequitable and need revision. Further studies will be carried out and aRoad User Charges Action Plan to realign them will be developed by GOB withtechnical assistance to be provided in connection with ADB's proposed RoadImprovement Project. Agreement was reached at negotiations that GOB willsubmit to IDA by June 30, 1989 proposals for a Road User charges ActionPlan, and that satisfactory implementation of the agreed Action Plan will bea condition of IDA disbursements on the second tranche of rehabilitationcontracts (Annex 2.5, Comparison of Road Sector Revenues and Expenditures).
Construction Industry
2.32 The institutional foundation for the construction industry inBangladesh is weak or non-existent. The construction industry is not
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officially recognized as a manufacturing industry and thus is heavily taxed.While it is common practice to involve the private construction industry inboth road construction and iaintqnance work, the form used for all localcontracts is long outdated and is 4 one-sided contract which gives RHD totalpower over the contractor, Who is mostly a simple purveyor of labor. Creditto contractors is limited and generally must be covered by mortgages of realestate property. These constraints limit the ability of the localconstruction industry, inter alia, to participate effectively and efficientlyin the increasingly impoirtant rpad and bridge construction, rehabilitationand maintenance work.
2.33 A Construction Industry Study (paras 3.32-3.34), which is part ofthe project's Institu.ional Development Program, will address theseconstraints and establish the steps necessary to permit the development of astrong and vital modern construction industry capable of meeting the nation'sroad construction and maintenance needs.
C. IDA Involvement in the Road Subsector
2.34 A Credit (53-PAK) for US$22.5 million to the then Government ofEast Pakistan was approved on June 11, 1964, to finance construction of 129miles of highway between Dhaka and Chittagong. Because of the Indo-Pakistanconflict (1965), project execution was seriously disrupted. The projectscope was revised in 1967 and again in 1970 with the credit amount remainingthe same. Effective December 29, 1971, disbursements were stopped withUS$3.6 million disbursed mainly for consulting services. With the emergenceof Bangladesh, the credit was reallocated to 408-BD.
2.35 This credit (First gighway Project) for US$25.0 million wasapproved on June 29, 1973, to finance the 18-mile Feni Bypass Road, theSitalakhya Bridge, the Surma Bridge, and construction of the new headquartersbuilding for RED. The Feni Bypass was opened to traffic on July 1, 1979, butbegan to deteriorate rapidly under unexpected axle loadings, in part due topoor design and workmanship. Since the estimated rate of future pavementdeterioration would exceed the maintenance capacity of RHD, it was decided toprovide a Supplementary Credit (Credit 1301-BD) of SDR 5.6 million to repairand strengthen the Feni Bypaps. This work was completed successfully inDecember 1986.
2.36 Meanwhile, a Second Highway Project (Credit 964-BD) for US$10.0million, was approved on December 13, 1979 to finance the 15-mile Comilla andChandina bypasses on the main Dhaka-Chittagong Highway this work wascompleted March 31, 1987 after a difficult implementation period whichincluded a series of delays.
2.37 Project Completion Reports for the two above projects are beingprepared. Project objectives have been largely met. However, the followinglessons have been learned and have been taken into account in the proposed
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project: (i) pavement designs should cover the possibility of substantialincreases in traffic and axle loads; (ii) modern construction standards aredifficult to follow for local contractors; and (iii) contracts should notprovide for the horizontal splitting of works but should include all works ina given section of road in order to minimize coordination problems.
2.38 During the 1980-83 period, several other possible projects in theroad subsector were identified but failed to materialize because of GOB'sapparent lack of commitment to improve its low construction standards and tomaintenance of its main road network. However, as the national road networkdeteriorated, it became obvious that road transport and economic developmentwas being hampered. Early in 1984, GOB recognized that its main roads haddeteriorated beyond the capability of RHD to restore them to satisfactorycondition and asked both IDA and ADB for assistance in rehabilitating them.
2.39 Under UNDP financing, IDA is executing agency for the Jamuna BridgeAppraisal Study. This bridge would be the first fixed link between the twoparts of the country divided by the Jamuna River. Construction of the bridgeby 1992 is possible and would generate additional road traffic within thenorthwest region and between it and the eastern half of the country,complementing the proposed project and increasing its economic return byfeeding traffic to and from project roads and reducing total transport cost.
III. THE PROJECT
A. Project History and Objectives
3.01 The country's inadequate road network is now in need of anintegrated program for construction, modernization, rehabilitation andmaintenance, to meet the burgeoning demand for road transport. Because ofthe extent of the needs and GOB's limited absorptive capacity, the projectfocusses on the major trunk roads and bridges in the northwest of Bangladesh,%hich is an area of food surplus production. A parallel ADB project willsimultaneously cover the most important sections of major trunk roads in thesouth.
3.02 An agreement has been reached with ADB on a division of the roadsto be studied and financed ani on a common approach to the standards ofmaintenance, institutional matters and cost recovery issues. On July 5,1985, a contract was signed with consultants Snowy Mountains EngineeringCorporation (SMEC), Australia, for feasibility and engineering studies forthe proposed project with UNDP financing (BDG/84/047, amount US$650,000) andthe Bank as executing agency. Thereafter, the UNDP financing was increasedto US$l,480,000 and the SMEC contract amended to cover a second phase, whichextended the study to include detailed engineering for road rehabilitationwork, bidding documents and procurement assistance to GOB, as well as a study
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of requirements on roads scheduled for deferred maintenance. Phase 1 wascompleted in May 1986 and Phase 2 is expected to be completed in June 1987.,
3.03 The rehabilitation works will be carried out in two tranche.s ofcontracts and awarded two years apart. This approach has been adoptedbecauses (i) GOB has limited absorptive and financial capacity to implementthe project in parallel with other projects in the sector; (ii) skilledmanpower and construction materials are limited; ($ii) tranching will permitthe mazimum involvement by the local construction iddustry; and (iv) theaverage price per kilometer of works will be minimized.
3.04 A larger three-tranche project was initially considered butresource limitations made it prudent to limit the size and scope of theproject as now designed, and to designate the third tranche of works to asubsequent project which would be timed to lend continuing support to theRoad Master Plan and implementation of the action plans for road maintenanceand the construction industry, which will be developed during the project nowproposed.
3.05 The project objectives are to:
(a) reduce transport cost of passengers and goodts, in particularfood-related products, by restoring the most important major trunkreads in the northwest of Bangladesh, the main food surplus region,to maintainable condition;
(b) introduce institutional and technical improvements in theprogramming of works, the administration and maintenance of theroad system and in technical standards and materials; and
(c) upgrade the capabilities of the local contracting industry toundertake road works as an alternative to inefficient force accountworks.
B. Project Description
3.06 The project includes Civil Works and an Institutional DevelopmentProgram.
(a) The Civil Works include:
(i) rehabilitation or reconstruction of about 305 km of roadsand bridges in the northwest of Bangladesh;
(ii) deferred maintenance works on about 335 km of other majorroads in the northweot; and
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(iii) supervision of the above works and detailed engineeringstudies.
(b) The Institutional Development Program includess
(i) preparation and use of a Road Master Plan for identifyingfuture road investments and ranking them in terms ofeconomic priority;
(ii) implementation of an action p.an for improved roadmaintenance; and
(iii) preparation and implementation of an action plan tostrengthen the construction industry.
C. Civil Works
Rehabilitation Works
3.07 Rehabilitation works, the first element of the civil workscomponent, consist of reconstruction to adequate standards, by widening ofroad embankments and overlaying, widening or reconstruction of pavements andbridges, of 224 km of N-S Nagarbari-Bogra-Rangpur Road (from Nagarbari toPirganj), 68 km of N-6 Kashinathpur-Rajshahi Road (from Kashinathpur toPabna, including 5 km of construction of the Pabna Bypass Road) and 13 km of1-74 Paksey Perry Road. The works will be carried out by contracts, groupedinto two tranches (136 and 169 km respectively) of works to start about twoyears apart.
3.08 Project preparation work has shown that overlays are not economicalon most of the sections because of the high deflection of existing pavementswhich would require thick overlays. Pavements have been designed in such away that contractors may use either equipment- or labor-intensivetechnologies. In case of the latter, a minimum of modern equipment(compactors and crushers in particular) is made technically necessary by theconstruction standard now adopted to face higher traffic and axle loads.
Deferred Maintenance Works
3.09 The proposed project would include financing for a program of about335 km of deferred maintenAnce (works made necessary by the backlog ofperiodic maintenance) of national and regional roads of economic priority inthe Northwest. The program is economically feasible and is a necessarycomplement to the program of rehabilitation works which, due to financingconstraints aA implementation capacity limitations, cannot be implementedall at once. This deferred maintenance program should slow pavementdeterioration and allow rehabilitation of the corresponding sections to bepostponed for a few years. The works will be carried out by contract
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following detailed engineering by the consultant supervising the civil worksprogram.
Supervision
3.10 The above works will be supervised by a consultant. The sameconsultant will also review and, if necessary, update bidding documents forTranche 2, car-y out the detailed engineering for and supervise the deferredmaintenance works, and implement the training program of RHD staff forplanning, organizing and supervising maintenance works carried out bycontract.
3.11 The supervising consultant will also carry out a revision of thedetailed engineering and bidding documents for future (the former thirdtranche) reconstruction works of N-6 Pabna-Rajshahi (130 km) and N-74Pabna-Kushtia (37 km) in order to incorporate any lessons learned from thebasically similar works of the project and from the test sections which havebeen included (Annex 3.1, Terms of Reference for the Supervising Consultant).
D. Institutional Development Program
3.12 A program of institutional and technical developments has beenprepared and will be implemented by RHD with appropriate technicalassistance.
Road Master Plan
3.13 In the past, expenditures on both new capital investments andmaintenance have been inadequate and the split between them sub-optimal. Inrecognition of this, GOB agreed to strengthen RED's capacity to plan, programand budget the local and foreign resources avai.lable to the road subsector.
3.14 The Road Master Plan (RMP), incorporating the above-identifiedobjectives, will result from the use of modelling tools already available inRED and adapted to Bangladeshi conditions under the SMEC Study and the RoadSector Development Study carried out by Kimpsax (both under UNDP financing).The data base will be updated and extended to cover the RED road network byadditional data collection on road roughness, deflections, road inventories,traffic surveys, vehicle operating costs and road construction andmaintenance costs. The modelling will transform population growth forecasts,agriculture production and other economic parameter growth forecasts intoroad transport demand forecasts and thus enable the consultant and RED todefine the future shape and capacity of the road network at the 10 and 20year horizons, as well as rank the necessary investments in order of economicpriority.
3.15 GOB will use the Road Master Plan to prepare its five-yeardevelopment plans and to identify projects to be financed in the road
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subsector with local and foreign financing. Detailed feasibility andengineering studies would then be necessary on the sections identified. Thislong-term view should ensure the constant flow of investment projects thatthe road subsector needs to assist the economic development of Bangladesh.Also, as the master plan and modelling tools will be developed in RHD withadequate training of RHD staff or local consultants, its regular updatingwill be facilitated (Annex 3.2, Terms of Reference for the Road Master PlanStudy).
3.16 Agreement has been reached that ADB will be the executing agency ofthis technical assistance component which is expected to be financed by UNDP.GOB, ADB and IDA will submit to each other for comment, before they arefinalized, the terms of reference (TORs), draft consultant reports and otherstudy outputs. Agreement was reached at negotiations that the RMP Study willstart by March 31, 1988 under TORs satisfactory to IDA, that GOB will reviewits recommendations and findings with IDA and will take into account IDA'scomments before finalizing them, and that its satisfactory completion wiTl bea condition of IDA disbursements on the second tranche of rehabilitationworks contracts.
3.17 Although no explicit agreement on the size and composition of theannual investment budget for the sector was sought at this time, the projectwill prepare the groundwork, which is lacking, for a more efficientinvestment program. Hence, at negotiations, agreement was reached that allinvestments in the road subsector will substantially follow the Road MasterPlan and economic criteria (such as NPV and ERR) and take into account theroad maintenance capacity. An understanding was also reached that once theRoad Master Plan had been finalized, it would be used as a basis foridentifying new investments in the road subsector and at least 75% of suchinvestments would follow the Plan.
Road Maintenance Action Plan
3.18 Following the findings and conclusions of the UNDP-financed KampsaxMaintenance Study executed by ADB, an action plan has been proposed toimprove the effectiveness of road maintenance operations. While mostactions will be implemented on a country-wide basis, some, as indicated, willbe tested on a pilot basis in the Northwest.
3.19 Agreement was reached at negotiations on a Road Maintenance ActionPlan and that satisfactory implementation of the elements of this Action Planwill be a condition of IDA disbursements on the Tranche 2 contracts. TheAction Plan will include in particular the elements described below(paras 3.20-3.31), (Annex 3.3, Road Maintenance Action Plan).
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3.20 Road Maintenance Budgets. GOB agreed at negotiations that thebudgets for road maintenance will be increased to cover the needs shown bythe Kampsax Maintenance Study (Annex 3.3, Table 1) and that they will be usedexclusively for road maintenance expendituresp excluding any upgra-ding wrs
3.21 Maintenance by Contract. Most road works are presently carried outby force account or by using contracted labor. The works are in generalinefficiently organized, lack skilled workers, operators and mechanics, andare carried out with obsolete worn-out equipment devoid of essential elementssuch as pneumatic-tyred compactors which are a necessary complement tolabor-intensive technologies. Major effort and financing would be needed toimprove the quality of the force account works and workshop organization,train the staff, and renew and complement the equipment fleet, should thecurrent procurement method be retained.
3.22 As a consequence, the Maintenance Action Plan is based on acost-effective alternative calling for contracted works, with the contractorfully responsible for organizing the works and supplying labor, equipment andmaterials. The system is to be progressively introduced for most deferredroad maintenance and some routine maintenance works.
3.23 Training. RHD staff will be organized and trained to pian, programand supervise the maintenance works by contract. The training program willbe implemented by the supervising consultant in the Northwest on a pilotbasis. Additional training for the remaining force account works is alsoincluded in the Maintenance Action Plan.
3.24 Materials and Standards Study. Road standards currently in use byRHD are in some cases obsolete and often lead to pavements too narrow and toothin for the traffic they support, motorized and non-motorized. Thisobviously red ces investment costs but the savings are more than offset byincreased vehicle operating costs and maintenance expenses. Good materialsare in short supply, for example, there is little river gravel or stoneoutside the Sylhet region. However, manufactured bricks and river sand canbe found country-wide. Existing pavement standards and techniques relymainly on penetration macadam, grouting or brick soling, which do not requiremuch road-making equipment but also are not an efficient use of the scarceroad materials.
3.25 Revision of the road standards has been initiated during thepre-appraisal mission by agreement with RHD and ADB on common improvedstandards to be used under the projects being prepared. Furthermore, thisaction will be continued by using, to the extent possible, the engineeringstudies being carried out and the corresponding project works to define,compare and test improved materials and techniques.
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3.26 In addition, under the Road Maintenance Action Plan, GOB will,employ consultants to carry out a Materials and Standards Study with thefollowing objectives:
(a) to inventory materials which can be economically and efficientlyused in road construction and maintenance, and study thefeasibility of further site investigations or development ofartificial aggregates;
(b) to develop pavement construction and maintenance techniques whichwould make optimal use of local materials (river boulders, bricksand sand) and minimize transport costs;
(c) to develop a catalog of pavement structures for Bangladesh; and
(d) to draft an unified set of road construction and maintenancestandards (geometric and other essential parameters) a4d technicalguidelines for RED staff.
(Annex 3.4, Terms of Reference for the Road Materials and Standards Study).
3.27 The start of the Road Materials and Standards Study under TORssatisfactory to IDA will be a conditioh of IDA disbursements on the secondtranche of rehabilitation works contracts. COB is currently seeking grantfinancing for the study. At negotiations, agreement was reached that theTORs, draft consultant reports and other study outputs will be reviewed withIDA.
3.28 Planning and Mana_ement. To improve planning,and management of themaintenAnce operations, Maintenance Planning and Monitoring Cells will beestablished in RHD in order to: (i) establish a road maintenance informationand management system, (ii) prepare or review annual maintenance programs andbudgets; and (iii) assist in the implementation of the annual programs andmonitor progress and quality of maintenance works.
3.29 Reorganization of RED in the Northwest. A limited reorganizationof RED with the available personnel will be implemented on a pilot basis inthe Northwest in order to separate maintenance activity and staff fromconstruction.
3.30 Revision of the accounting system. GOB will review the presentaccounting system for maintenance in order to allow a more detailedidentification of maintenance expenditures.
3.31 Equipment Pool. Remedial actions to improve the operation andmaintenance of RHD's equipment pool have been studied and recommendationsmade in the Maintenance Study. These actions are included in the action planon road maintenance, although this is not a high priority activity as GOB has
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agreed to put greater emphasis on using contractors to carry out prioritymaintenance activities.
Construction Industry Study
3.32 It was agreed that a study of the domestic construction industry isnecessary in order to identify the changes needed to develop a more efficientindustry, to allow its members to contribute more to the economic developmentof the country and to increase the benefits to Bangladesh generated byconstruction projects being implemented or prepared through foreignassistance. The study will investigate thoroughly the constraints theinduatry is facing and prepare an action plan of measures for its developmentby bringing to Bangladesh international practices in the industry.
3.33 Agreement was reached that the study would be designed tocoordinate with the development of the RMP in such a way as to permit thepreparation of a major program of deferred road maintenance by contract. Thestudy will be carried out by consultants selected under ODA procedures andfinancing. The Ministry of Planning will sponsor the study and its start isplanned for July 1987 (Annex 3.5, Terms of Reference for the DomesticConstruction Industry).
3.34 At negotiations, agreement was reached that the start of theConstruction Industry Study will be a condition of credit effectiveness ofthe proposed project, the results of the .tudy and proposed action plan willbe reviewed with IDA, and satisfactory implementation of the agreed actiona!A!_ will be a condition of IDA disbursements on the contracts for the second
tranche of road rehabilitation works.
E. Project Cost and Financing
3.35 Project cost estimates are shown on the following page. Total costis estimated at US$157.6 million equivalent of which 321 is foreign exchangeand 681 local cost (including 181 taxes). Cost estimates are in May 1987prices and include physical contingencies of 101, as well as pricecontingencies of 3Z for 1987, 1% for 1988, 1989 and 1990 and 3.51 thereafterfor the foreign cost and of 101 each year for the local cost. The projectwill be financed by IDA (US$102.0 million equivalent)* the OPEC Fund (US$8.0million equivalent), ODA (US$0.5 million equivalent), and possibly UNDP(US$5.3 million equivalent). The IDA credit will cover 791 of project costs(net of tax) while external financing would in total cover 901 of such costs,as is standard for IDA projects of this nature in Bangladesh. GOB willfinance US$13.1 million of local costs in addition to taxes (Annex 3.6,Project Cost Estimates and Financing Plan).
.................... o*9^*...*.................................................. .................. ................................... . ......................- v --- -o* -¢*o
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Cofinancing
3.36 The OPEC-Fund has indicated that it will allocate US$8 million tothe project to finance a single civil works contract in the first tranche ofrehabiliation works. The terms of the loan will be 2% interest, 1% servicecharge and 17 years maturity including 5 years of grace. IDA will administerthe loan for purposc-s of procurement and disbursement.
3.37 ODA will provide grant funds to finance the Construction IndustryStudy (US$0.5 million equivalent). It is expected that UNDP will grantfinance the Road Master Plan Study (US$2.2 million equivalent) with ADB asthe executing agency. UNDP has also been approached to finance the RoadMaterials and Standards Study (US$3.1 millibn equivalent).
F. Implementation
3.38 The project will be implemented by RHD and the Chief Engineer, RHD,will have overall responsibility for the project.
3.39 The Civil Works element of the project will be implemented by aProject Civil Works Director (PCWD), who will establish his office in theNorthwest and report directly to the Chief Engineer. His deputy will be theTeam Leader of he supervising consultant. His staff will be the supervisingconsultant staff complemented by RHD staff seconded to the supervisingconsultant. The PCWD will have authority to administer authorizedexpenditures under all civil works contracts and the supervising consultantcontract, to certify the said expenditures for which the signature of hisdeputy will also be required and to approve all additional work orders up toTk 100,000. Additional work orders above Tk 100,000 and up to 10% of thecontract amounts will be approved by the Roads and Road Transport Division ofthe Ministry of Communication.
3.40 The Institutional Development Program element of the project willbe implemented by the Additional Chief Engineer, Special Projects, RHD, withthe exception of the Road Master Plan Study which will be implemented by theAdditional Chief Engineer, Planning and Development, RHD, and theConstruction Industry Study which will be implemented by the Ministry ofPlanning.
3.41 The Additional Chief Engineer, Special Projects, will be appointedas Project Coordinator. The Project Coordinator will keep track of projectobjectives and agreements, coordinate actions under the Civil Works andInstitutional Development Program elements when a link exists or has beenestablished, keep up-to-date an overall project implementation schedule,gather data for and prepare quarterly progress reports, and keep andadminister project accounts and disbursements.
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3.42 To assist in project coordination, the Project Coordinator may calla meeting of an informal coordination comittee which will be chaired byhimself and include the Additional Chief Engineer, Planning and Development,the Project Civil Works Director and bis deputy (the supervising consultantteam leader), the Senior Economist of Planning and Development, the ProjectDirector of the ADB Road Improvement Project, and the official of thePlanning Commission responsible for the Construction Industry Study. Thecommittee will have an advisory role only. It will discuss only issues whichconcern more than one unit or one project element. It will propose solutionsto the issues discussed o the Chief Engineer, RHD.
3.43 A reement was reached at negotiationi. that GOB will establish thePf'WD positions select a candidate from amons the Superlntending Eni-neers onthe basis of merit, performance and experience, and send his resume to IDA byJune 30, 1987; and once IDA's "no objection" is given, GOB will appoint thecandidate to the position (on an ad hoc basis if necessary) and initiateaction on his promotion to the rank of Additional Chief Engineer. TheOfficial appointment of the PCWD and Project Coordinator will be conditionsof credit effectiveness.
3.44 GOB's Project Evaluation Committee has approved the draft ProjectProforma. Final approval of the Project Proforma by COB's ExecutiveCommittee of the National Economic Council and effectiveness of theOPEC-Fund loAn are conditions of credit effectiveness. The IDA credit isexpected to be effective by October 1, 1987. The project is expected to becompleted by December 31, 1995 and the credit to be closed by June 30, 1996(Annex 3.7, Project Implementation Schedule).
C. Procurement
3.45 The rehabilitation works will be procured by internationalcompetitive bidding (ICB) in two tranches, after prequalification ofcontractors. Each tranche is divided into small (below US$5 million) andlarge contracts in a slice-and-package situation where ell contracts in thetranche will be bid simultaneously and bidders will be allowed to bid forindividual or several contracts, except contractors prequalifled for smallcontracts only. For the first tranche, a general procurement notice waspublished in the Development Business dated April 16, 1986, theprequalification dossiers from potential contractors were received August 2,1986 and bidding documents were distributed to prequalified contractorsJanuary 19, 1987.
3.46 Bids for Tranche 1 contracts were opened in public on April 19,1987. The appointed consultant carried out the bid evaluation which has beensubmitted to RHD and IDA. The signature of the six contracts, e-pected byOctober 1, 1987, is a condition of credit effectiveness. The start of theworks will be one month after contracts signature.
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3.47 A similar procurement procedure, including a new prequalification,will be followed for Tranche 2 works. The schedule aims at starting theTranche 2 works by October 1, 1989. The following will be conditions of IDAdisbursements on the corresponding contracts and should be completed byOctober 1, 1989:
(a) satisfactory implementation of a Road User Charges Action Planacceptable to IDA (para 2.31);
(b) satisfactory completion of the Road Master Plan Study (para 3.16);
(c) satisfactory implementation of the agreed Road Maintenance ActionPlan (para 3.19);
(d) the start of the Road Materials and Standards Study under TORssatisfactory to IDA (para 3.27); and
(e) satisfactory i!plementation of the Construction Industry ActionPlan (para 3.34).
3.48 The deferred maintenance works included in the project which aresmall and scattered and thus are not likely to interest foreign bidders notalready installed in the country, will be procured by local competitivebidding (LCB) following procurement procedures in accordance with IDA'sprocurement guidelines.
3.49 The supervising consultant will assist GOB in preparation ofbidding documents and an evaluation method acceptable to IDA for the deferredmaintenance works. GOB has agreed at negotiations to extend their use to allmaintenance works carried out by contract.
3.50 The following changes to local procurement procedures, in order tomake them acceptable to IDA, were agreed at negotiations for the project'sdeferred maintenance works:
(a) no numerical limitation will be placed on qualified firms which maybe registered except that firms of a member country or goodsmAnufactured in a member country may be excluded if, as a matter oflaw or official regulation, Bangladesh prohibits commercialrelations with that country, provided that the Bank is satisfiedthat such exclusion does not preclude effective competition for thesupply of goods or works required;
(b) prior registration of local firms may be made a condition ofqualification to bid, but unregistered eligible foreign bidders arepermitted to participate in the bidding. The bidder to whom it is
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proposed to award the contract, however, may be required toregister before award is made;
(c) any of the following forms of earnest money and/or performanceguarantee will be accepted: bid bond through local bank,government securities, certified check, guarantee by local bank orperformance bond;
(d) all sources eligible under World Bank procurement guidelines willbe accepted as eligible source countries;
(e) prior concurrence of IDA will be obtained before rejecting all bidsand/or negotiating with bidders;
(f) any re-bidding because of lack of competition will be on a fullyopen basis (not limited) and t;me for re-bidding will not be lessthan 30 days;
%I) no preference of any kind will be given to any bidder;
(h) no "bracketing" (rejection of bid outside pre-established brackets)will be used;
(i) performance security will be required of all successful bidders ona uniform basis;
(j) all disputes will be resolved in the local courts or througharbitration carried out in accordance with the BangladeshArbitration Act of 1940 by fully independent arbitrators, or a solearbitrator agreed between the parties and not in any way associatedwith the parties to the dispute or having any responsibility forthe contract or the work thereunder;
(k) no discretionary power to waive any procurement procedure will begiven;
(1) COB will reimburse contractors for any additional costs incurredbecause of Governmental delay/non-performance as specified in thecontract and which are not subject to dispute in accordance withparagraph (j) above, and IDA will not be requested to reimbursesuch expenses;
(m) GOB will reimburse contractors for unilateral modifications of workand the costs related thereto; IDA may be requested to reimbursesuch expenses resulting from such modifications as IDA may findwere made in tkie interest of the project or were beneficial to theproject; and
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(n) a contractor's performance guarantee will apply only to thespecifi'c contract under which it was furnished and not to any otherlosses unrelated to such contract.
3.51 Local contractors will have a 7.31 preference for civil workscontracts awarded under ICB. However, in order to assess the eligibility ofdomestic-foreign joint ventures, a questionnaire has been included in thebidding documents. Its language has been specifically framed to avoid abusesof the preference where the foreign partner would benefit more than the localpartner.
.3.52 The civil works on some road.sections (limited in length and innumber) require land acquisition for which the process has not beencompleted. The detailed engineering studies have always considered analternative and satisfactory design which requires no land acquisition. Atnegotiations, agreement was reached that if for any section, at the time ofcontractor mobilization, the land acquisition process has not been completed,the corresponding alternative design on the existing acquired land will beadopted.
3.53 A shortlist of six consulting firms for the supervision contracthas been agreed. Agreement in principle on: (i) letter of invitation,(ii) terms of reference, (iii) evaluation criteria and methodology,(iv) annex of supplementary information, and (v) proposed contract, wasreached at negotiations.
3.54 Signature of the contract for supervising consultant services willbe a condition of credit effectiveness.
3.55 Technical assistance will be procured in accordance with the Bank'sguidelines for consultants. The appointment of the supervising consultantand the negotiated contract remain to be reviewed by IDA. All procurementdecisions, the estimated costs of which exceed US$200,000, would be subjectto IDA's prior review resulting in a coverage of 90% of the total estimatedvalue. Procurement arrangements are summarized in the following table.
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Amounts and Methods of Procurement(US$ million)
Procurement Method al TotalProject
Category ICB LCB Other Cost
1. Rehabilitation Works 122.7 - - 122.1(79.7) (79.7)
2. Deferred Maintenance Works - 5.9 - 5.9(4.2) (4.2)
3. Technical Assistance,Fellowships and Training - - 13.2 13.2
(7.9) (7.9)4. Unallocated 13.6 0.7 1.5 15.8
(8.9) (0.4) (0.9) (10.2)
136.3 6.6 14.7 157.6(88.6) (4.6) (8.8) (102.0)
=2 === _u= uawu
a/ Amounts financed by IDA are in parentheses.
H. Disbursements
3.56 In line with the nine-year disbursement profile for IDA highwayprojects in South Asia, the credit is expected to be disbursed by June 1996.The IDA credit will be disbursed on the basis of the following table (Annex3.6, Project Cost Estimates and Financing Plan).
Allocation and Disbursement of IDA Credit
Category Description Amount z(US$ million)
1 Rehabilitation Works 70(a) Tranche I 28.9(b) Tranche II 50.8
2 Deferred Maintenance Works 4.2 703 Technical Assistance, Fellowships
and Training 7.9 1004 Unallocated 10.2 -
Total: 102.0-m .
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3.57 No reimbursement of less than US$50,000 will be made by IDA. ASpecial Account for IDA participation will be established and maintained inUS Dollars by RED in a commercial bank. An authorized allocation of US$6.5million (amount corresponding to about four months of disbursements) will bedisbursed from the IDA credit upon receipt of a withdrawal request at crediteffectiveness and thereafter will be regularly replenished.
3.58 All disbursements will be documented, except disbursements underlocal civil works contracts costing less than the equivalent of US$50,000each which will be disbursed on Statement of Expenditures (SOEs) certified bythe PCWD and the Chief Engineer of RHD. Documentation supporting the SOEswill be retained and made available for IDA representatives duringsupervision missions.
I. Reporting and Auditing
3.59 With the help of the supervising consultant, RHD will preparequarterly progress reports in a format and content acceptable to IDA. Thelast one will be the Project Completion Report, to be issued no later thansix months after physical completion of the civil works. It will include inparticular project cost and disbursement data, general characteristics ofproject execution, project benefits, the degree to which objectives wereachieved and GOB and IDA performance of their respective obligations.
3.60 An independent auditor, acceptable to IDA, will audit annually theproject accounts and financial statements, including the special account anddisbursements on SOEs, in accordance with appropriate auditing principlesacceptable to IDA. Audit reports will be sent to IDA no later than ninemonths after the end of the corresponding fiscal year.
J. Environmental Impact
3.61 The whole of the works lie within a road reserve which has servedthe same purpose for centuries, with the exception of the Pabna Bypass.Project roads are in no sense an intrusion on the environment. The roadworks may adversely affect the environment during the construction phase(noise and dust), but there will be no long-term effect. However, thecompleted works will be a general enhancement of the environment by providingto pedestrians a larger dry surface than the existing road during themonsoon.
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IV. ECONOMIC EVALUATION
A. Benefits
4.01 The project's civil works consist of a rehabilitation component anda deferred maintenance program, both located in the northwestern region ofBangladesh. The rehabilitation component comprises portions of the 267 kmlong Highway No. 5 between Nagarbari and Saidpur, the 197 km long HighwayNo. 6 between Kashinathpur and Nawabganj and the 37 km long Highway No. 74between Khushtia and Dashuria. There are ten national and regional highwayswith a total length of 386 kms included in the deferred maintenance program.The network covered by the economic evaluation is somewhat larger than theproject's network. It includes rehabilitation and deferred maintenance ofeconomically feasible road sections which were defsrred to the potentialfollow-up (tranche 3) project.
Traffic
4.02 Traffic on project roads includes both motorized and traditional(man- and animal-powered) vehicles. Only motorized traffic is considered inthe economic evaluation of the project. Ng traffic diversion is expectedfrom other roads or from other transport modes.
4.03 Traffic counts on project roads and on other roads in the projectarea were carried out in 1985 for the rehabilitation component, and in 1986for the deferred maintenance program. According to these studies, base yearAverage Annual Daily Traffic (AADT) estimates for motor traffic range from550 to 1,900 vehicles on different sections of the Highway No. 5 and from 300to 1,450 vehicles on Highway No. 6 and are about 770 vehicles on HighwayNo. 74. For the ten shorter roads included in the deferred maintenanceprogram, the base year daily traffic volumes ranged from 440 to 1,800vehicles.
4.04 During the project period, motor traffic on project roads isexpected to grow at 5-10 annually. Most of thAis growth will reflect theeconomic and demographic growth of the northwestern region and would occurwith or without the project. However, for all road sections, some more thanothers, generated traffic, induced by lower transport costs, is a factorcontributing to the projected traffic growth.
4.05 Separate traffic and commodity forecasts have been prepared fortrucks carrying agricultural products and for trucks bringing in generalfreight, for passenger vehicles and for all other vehicles (auto rickshaws,tankers, semi-trailers and tractors). The truck traffic carryingagricultural products from farms to the markets and from markets to the portswill be determined by the agricultural production forecasts. The trucksbringing in general freight are forecast to grow at the same rate as truck
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registrations generally. The growth of the passenger motor traffic willrespond to the increased access to motor vehicles and to socio-economicgrowth factors. Other motor traffic is projected to grow as a constant shareof all traffic. As motor traffic flows and volumes have been studied on anetwork basis, different traffic growth rates have been obtained throughoutthe road network in the project area.
-Benefits
4.06 The project quantifiable economic benefits include motor vehicleoperating cost savings, road maintenance cost savings and passenger timesavings. Each of these benefits is briefly discussed below.
4.07 Motor Vehicle Operating Cost (MVOC) Savings (85X of total projectbenefits). The MVOC savings have been estimated by computing operating costswith and without the project, taking into account project-induced changes inboth the surface condition and vehicle travel speeds. Full MVOC savings havebeen applied to the projected normal traffic growth; for generated trafficMVOC savings have been reduced to reflect the fact that this traffic flowwould not have materialized without the project.
4.08 Road Maintenance Cost Savings (42 of total project benefits). Roadmaintenance costs have been estimated for all road links in the networksystem with and without the project. As expected, maintenance cost savingson project roads have been partly offset by increased costs due to highergenerated traffic flows on unimproved non-project roads.
4.09 Passenger Time Savings (112 of total project benefits) consist oftravel time savings for passenger vehicle occupants, 822 of whom are buspassengers. Most passenger travel in the area is closely linked with theeconomic and social activity of the region. Because of this, full traveitime benefits, estimated at 2-3 Taka per passenger hour, have been assumedfor all public and private passenger transport.
4.10 Summary Project Benefits. The value of individual project benefitsis shown in Annex 4.1, Summary Project Benefits, which also gives the summaryof benefits by major project components and the aggregate value of benefitsfor the project as a whole. The total value of benefits resulting from theproject, is 42.9 billion Taka.
4.11 Intended Beneficiaries. The primary beneficiaries of the projectare the users and providers of road transport. The project willsubstantially reduce the time and cost of passenger travel for thepredominantly public transport users. Lower vehicle operating costs forcommercial transport will translate, through competition in the privatelyowned trucking industry, into the lower delivered costs of inputs andproducts of this important agricultural surplus area. Other project
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beneficiaries include vehicle owners and operators and GOB through reducedmaintenamce expenditures on project roads.
ProJect Evaluation
4.12 The economic feasibility of the project and its major componentshave been measured, using the economic rate of return (ERR) and the netpresent value (NPV) method. The useful life of the project was estimated at20 and 10 years for the rehabilitation and maintenance componentsrespectively. No residual values were expected to materialize at the end ofthe project. The results of this analysis are shown below:
Economic Evaluation Parameters
Project Component ERR NPV (15)________________ X Million Taka
* Totals do not add up because of differences in starting dates.
The whole project has an ERR of 38%. The ERRs for the road rehabilitationand maintenance components are 321 and over 50 respectively. The NPV of allproject components remains positive at 15Z rate of discount. The resultsindicate that all projects are economically justifiable and eligible for IDAfinancing.
4.13 The project evaluation presented in this report does not considerthe impact on project roads of the proposed Jamuna Bridge. If the bridge isconstructed, additional traffic will use project roads benefitting from theproposed road improvements.
Sensitivity Analysis
4.14 The key variables employed in the economic evaluation were testedfor the effects of alternate values on the economic feasibility of theproject. Specifically, it was assumed that project costs would increase by201 and that there would be no passenger time benefits.
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4.15 The effects of these changes on the basic economic evaluationparameters are summarized in Annex 4.2, Sensitivity Test Results. It will benoted that although the ERR of the project in the worst case is reduced to251 for the rehabilitation component, it is still over 501 for themaintenance component and the project remains economically sound.
8. Risks
4.16 The first project risk is that GOB may fail to maintain projectroads. This would reduce their useful life and increase MNVOC. The projectminimizes this risk by including in the Institutional Development Program,the Road Maintenance Action Plan which provides solutions to the mostimportant financial, organizational and technical road maintenance issues andby linking its implementation to disbursements on civil works.
4.17 The second project risk arises from the linkage of second trancheIDA disbursements with implementation of the Institutional DevelopmentProgram which may delay Civil Works. This calculated risk is worth takingbecause it minimizes the greater risk of failure of the InstitutionalDevelopment Program. Furthermore, it has been minimized by the design of theprogram which includes a limited number of elements, all of which can beclosely monitored, and the appointment of a Project Coordinator to overseeproject implementation.
4.18 The third project risk is that of civil works failure due to thelack of adequate engineering and management capacity to cope with the sharpincrease in overall work volume. This risk has been minimized by:(a) project tranching; (b) the establishment of a special Project Civil WorksDirector's Office with appropriate technical assistance; and (c) training ofRHD staff for the supervision of contracted works.
V. AGREEMENTS REACHED AND RECOMMENDATIONS
Agreements Reached at Negotiations
5.01 The following agreements were reached or confirmed at negotiations:
(a) that GOB will submit to IDA by June 30, 1989, proposals for a RoadUser Charges Action Plan (para 2.31);
(b) that the Road Master Plan Study will start by March 31, 1988 underTORs satisfactory to IDA, that GOB will review its recommendationsand findings with IDA and will take into account IDA's commentsbefore finalizing them (para 3.16);
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(c) that all future investments in the road subsector will substan-tially follow the Road Master Plan and economic criteria and takeinto account the road maintenance capacity (para 3.17);
(d) a Road Maintenance Action Plan acceptable to IDA (para 3.19);
(e) that the budgets for road maintenance will be increased to coverthe needs shown by the Kampsax Maintenance Study (Annex 3.3, Table1) and that they will be used exclusively for road maintenanceexpenditures, excluding any upgrading works (para 3.20);
(f) that for the Road Materials and Standard3 Study draft consultantreports and other study outputs will be reviewed with IDA(para 3.27);
(g) that the results of the Construction Industry Study and proposedaction plan will be reviewed and agreed with IDA (para 3.34);
(h) that GOB will establish the PCWD position, select a candidate fromamong the Superintending Engineers on the basis of merit, perfor-mance and experience, and send his resume to IDA by June 30, 1387;and once IDA's "no objection" is given, GOB will appoint the can-didate to the position (on an ad hoc .basis if necessary) andinitiate action on his promotion to the rank of Additional ChiefEngineer (para 3.43);
(i) that the project's bidding documents and evaluation methodology fordeferred maintenance works will be extended to all maintenanceworks carried out by contract (para 3.49);
(j) that changes to local procurement procedures for the project'sdeferred maintenance works carried out by contract, listed inpara 3.50, will be made in order to make them acceptable to IDA;and
(k) that at the time of contractor mobilization, if the land acquisi-tion process has not been completed for any section of civil works,the corresonding alternative design on the existing acquired landwill be be adopted (para 3.52).
Actions Required by Credit Effectiveness
5.02 The following are conditions of credit effectiveness; they areexpected to be completed by October 1, 1987:
(a) the start of the Construction Industry Study (para 3.34);
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(b) the official appointment of the PCWD and Project Coordinator(para 3.43);
(c) the final approval by GOB of the Project. Proforma (para 3.44);
(d) the effectiveness of the OPEC-Fund loan (para 3.44);
(e) the signature of the six Tranche 1 rehabilitation contracts(para 3.46); and
(f) the signature of the contract for supervising consultant services(para 3.54).
Conditions of Disbursement on Tran;he 2 Contracts
5.03 The following will be conditions of IDA disbursements on theTranche 2 rehabilitation contracts; they are expected to be completed byOctober 1 1989 (para 3.47):
(a) satisfactory implementation of a Road User Charges Action Planacceptable to IDA (para 2.31);
(b) satisfactory completion of the Road Master Plan Study (para 3.16);
(c) satisfactory implementation of the agreed Road Maintenance ActionPlan (para 3.19);
(d) start of the Road Materials and Standards Study under TORssatisfactory to IDA (para 3.27); and
(e) satisfactory implementation of the Construction Industry ActionPlan (para 3.34)..
5.04 Based on the foregoing agreements, the proposed project constitutesa suitable basis for an IDA credit of US$102 million equivalent to GOB.
ASPTRMay 26, 1987
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BANGLADESH
ROAD REHABILITATION AND MAINTENANCE PROJECT
Selected Documents in the Project File
1. Terms of Reference for Rehabilitation and Maintenance, Phase I and II,ASPTR, November 1985.
2. Inception Report, Consultancy Services for Road Rehabilitation andMaintenance Study, SMEC/EPC, November 1985.
3. Draft Final Report, Consultancy Services for Road Rehabilitation andMaintenance Study, SMECt May 1986.
4. Phase 1 Final Report, Consultancy Services for Supervision, SMEC/EPC,May 1986.
5. Phase 2 Draft Report on Road Maintenance, SMEC/EPC, November 1986.
6. Prequalification of Contracts for Road and Bridge Works in Northwestangladesh.
7. Prequalification Questionnaire, Government of Bangladesh, July 1986.
8. Report on Consultancy Services for Evaluation and Recommendation forthe Prequalification of Contractors, SNEC, August 1986.
9. Interim Report - Phase 2, Consultancy Services for ConstructionSupervision, SMEC/EPC, November 1986.
10. Prequalification of Contractors, Roads Division, 1986.
11. Prequalification of Firms for C nstruction Supervision, Roads Division,1986
12. Tender for Civil Works, Corrigendum No. 1 to Contracts Nos. 1/1, 1/2,1/5 and 1/6, SNEC, 1986.
13. General Addendum No. 1, SMEC, 1987.
14. Full Set of Bid Documents, Contract 1/2, and Selected Bid Documents,Contracts 1/1, 1/3, 1/4, 1/S, 1/6, SNEC, 1987
1. National Highways Highways connecting national capital withdifferent divisional and old districtheadquarters, port cities and internationalhighways.
2. Regional Highways Highways connecting different regions andnew district headquarters not connected bynational highways..
3. Feeder Roads Roads connecting important growth centers(Type A) and places of socio-sconomic importance
(other than Upazila headquarters) withthe paved road system.
4. Upasila Connecting Roads Roads connecting Upazila headquarters with(Type A) the nearest paved road system.
Source: Senior Economist, RHD.December 1986
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Annex 2.2Page 2 of 4
4 -B~~~~~~~~~~~ANCLADBES
ROAD REHABILITATION AND MAINTENANCE REPORT
Table 2: RED Road Network as oan June 30, 1985
-- Type of Road-- (Length in miles)Asphalt Brickand paved or
1. Since independence there has been a strong political thrust directedtowards increasing the length of roads and consequently the principal highwayagency, Roads and Highways Department (RED), has devoted most of its effortstowards new construction or improvement projects and little towardsmaintenance. The organizational structure of RHD is directed towards
a planning, design and execution of new projects. Thera are virtually no staffwhose duties are specifically tied to road maintenance, and with a weak costaccounting. system it is difficult to discover real expenditure onmaintenAnce. RED is responsible for planning, constructing and maintaining anetwork of roads and bridges in Bangladesh which is currently 6,900kilometers long. The Department is responsible to the Roads and RoadTransport Division of the Ministry of Communications. RED is divided intonine Wings. These include five territorial wings called zones, based inDhaka, Chittagong, Chittagong Hill Tracts, Rajshahi and Khulna. The otherfour wings are Administration, Mechanical, Planning and Developent, andSpecial Projects. The five zones are responsible for both construction andmaintenance. The five zones are divided into nine circles which are splitinto divisions and subdivisions again on a territorial basis for workexecution. There are also circles and divisions for planning and design.The structure of the organization is shown in Tables 1 and 2.
2perational Divisions
2. The five operational wings, called zones, are responsible for roadmaintenance of all RED roads. Within the zones, the responsibility forplanning and execution of road maintenance rests with the division.Including three recently created divisions, there are thirty-five divisionswith territorial responsibilities. The size of these divisions and thelength of road for which they are responsible varies considerably. Thedivisions are also responsible for the operation of ferries and maintenanceof ferry terminals and for construction and improvement of roads. As well ascivil works, the division controls a first line workshop which is normallyunder the charge of one of the Subdivisional Engineers. Executiveresponsibility for road maintenance lies with the thirty-five divisions, eachheaded by an Executive Engineer. These divisions are also responsible forconstruction, and at present there is no separate road maintenance
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Annex 2.3Page 2 of 5
organization. There is no overall planning of road maintenance or monitoringof work done.
Staffing
3. The authorized establisment of RHD is 9,862 staff, comprising 1' chiefengineer, 8 additional chief engineers, 33 superintending engineers, 96executive engineers, 179 subdivisional engineers, 216 assistant engineers, 1senior economist, 1 economist, 39 other professionals, 726 sub-assistantengineers, 4647 office assistants and 3915 class 4 employees. However 15 to251 of the above sanctioned posts are vacancies. The breakdown of the abovestaffing is in Table 3.
11 -Difference i& price of petroleum products between the BPC es-refinieryprice and world prices.
2/ Traffic police, other police, Ministry of Communications, maintenancenon-RED roads.
mATEApril 3, 1987
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BANGLADESH
ROAD REHABILITATION AND WNTENANCE PROJECT
Terms of Reference for the Supervising Consultant
I.* BACKGROUND
1. The People's Republic of Bangladesh has a population in excess of100 million people and has an economy which is largely dependent on agricul-ture. Northwest Bangladesh, bounded by the Padma/Ganges River on the south,the Jamuna/Brahmaputra River on the east, and the border with India on thenorth and west, is an important food-surplus area of the country and dependson road and river transpoit to move produce to other areas.
2. Due to a combination of circumstance, including unforeseen trafficgrowth, both in volume and loading, some inadequate designs, and insufficientbudget over the past years, the condition of the primary national road net-work has deteriorated. Much of this network now needs a major rehabilitationeffort to restore it to a level at which its roads can be maintained bynormal routine procedures.
3. Recognizing this need the Government of Bangladesh with assistancefrom the International Development Association has identified, and isimplementing a project for the rehabilitation and deferred (periodic) main-tenAnce of approximately 600 km of national and regional highways in thearea.
4. The project is to consist of three primary components, which are:
(a) the rehabilitation of approximately 300 km of national highways, intwo packages consisting of 6 and 5 contracts respectively;
(b) deferred maintenance works over approximately 300 km of nationaland regional highways; and
(c) development of skills within the Roads and Highways Departmnt,particularly in the supervision of contract maintenance works.
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Annex 3.1Page 2 of 10
II. OBJECTIVES
5. The Government intends to engage a consultant with the objectivesof ensuring that the civil works of rehabilitation and deferred maintenanceare carried out in accordance with the requirements of the various contracts,that suitable dtsigns and documents are prepared for the deferred maintenanceworks and that Roads and Highways Department personnel are provided withtraining in methods of contract supervision.
III. REHABILITATION WORKS
Description of the Works
6. The 300 km of rehabilitation works are divided into 2 packages,consisting of 11 contracts in total. These contracts are located as shown onFigure 1 and provide for the rehabilitation of approximately 40 km of roadfor each of the 8 major contracts and of 8 km of road for each of the 3 minorcontracts.
7. These rehabilitation works will comprise:
(a) widening of road embankments, and strengthening or reconstructionof pavements;
(b) the construction of 4.7 km of new road to bypass the town of Pabna;and
(c) the reconstruction or repair of 700 m of bridges and the construc-tion of 900 m of reinforced concrete box and pipe culverts.
The rehabilitated roads will generally have 7.3 m wide pavements and 2.45 mwide shoulders and will be provided with an asphaltic concrete surface.
8. The breakdown of the works by package is as follows:
(a) Package 1 - reconstruction of 136 km of National Highway N5,repair of 2 bridges and the construction of 211 mof box and pipe culverts. In addition, Contract1/1 contains provision for a pavement test sectionof 5 km length.
(b) Package 2 - reconstruction of approximately 160 km of NationalHighways N5, N6 and N74, construction of 600 m of
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Annex 3.1Page 3 of 10
replacement bridginp and the installation of 436 mof pipe and box culverts. The bridges are ofreinforced and prestressed concrete construction.
It is expected that the first package of contracts will be awarded in October1987. The second package may be awarded in late 1989. All. have contractperiods of 36 months. Bids are currently being invited for Package 1 con-tracts, under International Competitive Bidding conditions, from Bangladeshiand foreign contractors who are eligible under IDA and IBRD procurementguidelines and who have been prequalified. A further prequalificationprocess will be undertaken to select suitable bidders for the second package.
Scope of Services
(a) Package 1 Works
9. The Consultant will undertake the supervision of the six contractsin the package under the direction of the Roads and Highways Department. TheDepartment will appoint one of its senior officers as Engineer for theContracts.
10. The Consultant will set up suitabl* site supervision organizationsto ensure that the works under contract are completed in accordance with thedocuments. Specifically, the Consultant will be required to:
(a) provide such information as is necessary for the Contractor to setout the works and check that this setting out is correct;
(b) review the Contractors' work proposals, working drawings, etc. tothe extent required by the Contract, advise modifications wherenecessary and recommend these proposals for approval;
(c) review the Contractors' works programs and, where necessary,request revisions of these to account for the current status of theworks;
(d) agree with the Contractor systems of measurement for interim cer-tificates and carry out the necessary measurements, calculationsand certifications for such certificates;
(e) make recommendations to the engineer on the Contractor's claims foradditional payment, extensions of time and other matters, based onthe Consultant's interpretation of the Contract Documents, therelevant site conditions and the Contractor's detailed submissions;
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Annex 3.1Page 4 of 10
(f) in the event of variations to the works being required, prepare thenecessary documents, negotiate these with the Contractor and submitthe agreed Variation Order to the Engineer for approval;
(g) through Resident Engineers, inspectors and other staff as may berequired, supervise the day to day operations of the Contractor toensure compliance with the contract;
(h) maintain detailed diaries of relevant events and activities;
(i) test materials to be used in the works prior to incorporation, testcompleted parts of the works for compliance with the Contract,carry out deflection analysis of the various stages of the roadworks to determine what, if any, variations to pavement structuresare required and generally ensure that the final structures are inaccordance with the intent of the Contract;
(j) determine, in consultation with the engineer, suitable pavementstructures to be included in the test sections, monitor theirconstruction and performance and report on their effectiveness;
(k) set up and maintain a correspondence and document storage andretrieval system to record all relevant communications between theparties to the contract, all measurement and qualicy controldetails and variations to the works as they occur;
(1) maintain as built drawings and documents;
(m) call and keep minutes of routine sits meetings between the partiesto the contract;
(n) prepare monthly progress reports for each contract in a formacceptable to IDA and RED. These reports will include as a minimumdetails of the physical and financial status of each contract,details of delays and the budgetary effect of these and particularproblems with su"gested solutions;
(o) carry out final inspections of the works and recommend the issue ofcompletion certificates;
(p) check the Contractors' final accounts and certify them correct forpayment; and
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Annex 3.1Page 5 of 10
(q) prepare completion reports in a form acceptable to MED and IDA.
In setting up the management and cost accounting systems, it is anticipatedthat the consultant will make appropriate use of microcomputer-based methods.
(b) Package 2 Works
11. The consultant will undertake the following tasks:
(a) review the Package 2 documents in the light of Package 1experience, in particular the outcome of the trial pavement sec-tions, and prepare the necessary amendments and design revisions;
(b) prepare a prequalification questionnaire and advertise thepresqualification procurement notice apropriately;
(c) analyze the prequalification submissions and prepare a reportsummarizing the evaluation and nominating the contractors who havebeen prequalified. In doing this, the consultant will be requiredto undertake such addtional investigations into the capabilities ofpossible bidders as may be necessary. These may include inspec-tions of works for which they have been responsible, interviewswith past and present clients and meeting with the firms' manage-ments.
(d) prepare a suitable Invitation to Bid and subsequently issue docu-ments to interested prequalifiei Contractors.
(e) analyse bids received, recommend contract award and prepare formaldocuments for execution.
(f) supervise the contract works in the same manner as set out forPackage 1.
12* In preparing the proposal, the Consultant will divide the scope ofworks into two parts. The first will include all those activities describedabove except the actual supervision of the Package 2 Contracts. The secondpart will add the additional resources required to undertake this supevision.The financial proposal will be prepared in like manner.
13. If the Department decides to proceed with the Package 2 works atthe scheduled time then it will direct the Consultant to mobilise the addi-tional resources required accordingly. If, on the other hand, these worksare deferred significantly or cancelled then the consultancy will involve
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Annex 34.1Page -6 of 10
only those resources defined in first of.tbe two parts referred to above.The Agreement between the Department and the Consultant will be drafted toreflect the possibility that the second part may not be taken up.
Time Schedule
14. It is anticipated that a contract for the Consultancy will beaw-rded in August and the Consultant will commence his assignment in Septem-ber 1987. Provided that Package 2 works commence in late 1989 as presentlyscheduled, the estimated termination date for the consultancy is the end ofDecember, 1992. If package 2 is cancelled or substantially delayed, theconsultancy will terminate at the end of December, 1990.
Assistance to be provided by RHD
15. The Department will undertake to:
(a) nominate personnel to act as technical assistants to the consult-ant; these officers will be responsible for routine contact betweenthe department and the consultant avd will be responsible forensuring that the services proceed in accordance with the consult-ancy contract and conform to the requirements and policies of thedepartment; and
(b) undertake to assist the consultant to obtain visas and importprivileges for his expatriate personnel.
16. The department may also require that the consultant include in histeams engineers and technical staff from the department. These individualswill not be substitutes for the consultant's own staff but will be respon-sible to the consultant as though they were such.
Facilities and Department
17. Each construction contract includes the provision and maintenance,by the contractor, of vehicles, laboratory and survey equipment, computersand furnished office space. The department will provide these at no cost tothe consultant for the duration of his services. However, the consultantshall include in his proposal a list of facilities and equipment he considersnecessary to adequately supervize the works and provide detailed costs forthese. In the event that the department is unable to provide the itemsmentioned above, or accepts that additional or different equipment isrequired, then the consultant shall provide these on a reimbursable basis.
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Annex 3.1Page 7 of 10
At the conclusion of the consultancy these items will be handed over to thedepartment.
IV. PERIODIC MAINTENANCE WORKS
Description of Works
18. The department has identified approximately 300 km of regionalhighway for which deferred maintenance works are required and are economi-cally viable. The location of these are shown in Figure 2. It is intendedthat these works will be carried out by contract under Local CompetitiveBidding procedures.
19. The treatments proposed include asphaltic concrete levellingcourses and bituminous surface treatments. The areas over which a particulartreatment is to be applied are set out in the report of a Road MaintenanceStudy carried out for the Department in an earlier phase of this project.
Scope of Services
20. The Consultant will undertake the following activities under thiscomponent of the consultancy.
(a) Investigation
21. The Consultant will review the findings of the previous RoadNaifttenance Study, essentially by evaluating the present conditlon of theexisting road surfaces. This re-evaluation will include roughness anddeflection measurements and the development of an appropriate conditionassessment procedure.
(b) Design
22. Using results obtained from the investigation phase, the Consult-ant will refine the mix of levelling course and surface treatment. TheConsultant will also consider slurry seals and other treatments for postpon-ing the need for a major rehabilitation and/or restoring the road surface.ge will then break the works up into packages suitable for bidding.
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Anne" 3.1Page 8 of 10
(c) Documentation
23. The Consultant will prepare a set of bidding documents and a bidevaluation method for the periodic maintenance works. These documents willbe developed from World Bank sample bidding documents, suitably amended toallow for Local Competitive Bidding.
24. It is the Department's intention that these documents and theevaluation method will become the standard for all of its future periodicmaintenance works throughout Bangladesh.
(d) Bid Invitation
25. The Consultant will invite registration from Contractors inter-ested in bidding for the works and will arrange issue of documents to thosewho register.
(e) Bid Evaluation
26. The Consultant will develop a suitable evaluation technique toprovide the Department with an appropriate Contractor for each package ofwork and subsequently will prepare the necessary formal award documentation.
(f) Supervision
27. The Consultant will work with selected departmental engineeringand technical personnel to supervise the works and ensure that they arecarried out to the specified quality and within the contract time. As partof this activity the Consultant will train the Department staff in methods ofcontract supervision. The training component of the consultancy is dealtwith subsequently in these Terms of Reference.
(g) Study of Rajshahi-Nawabganj Section of N6
28. As part of this component of the consultancy the Consultant shallundertake a study of the flood prone section of National Highway X6 betweenRajahahi and Nawabganj. This study will investigate means of reducing theeffect of flooding on road connections between these towns and may includecomplete relocation of the road to higher ground. The evaluation willinclude an economic assessment of the various options developed.
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Annex 3.1Page 9 of 10
(h) Reports
29. The Consultant will provide monthly reports throughout the fullduration of the consultancy and these will detail progress on both the designand execution phases of the works.
Time Schedule
30. The Department's intention is that the deferred maintenance com-ponent will commence in October 1987 and that bids will be invited and ini-tial contracts awarded so that site works can commence in October 1988. Theworks will then be progressively awarded to provide an even flow of work overthe anticipated project duration of three years, i.e., up to the end of 1991.
Assistance to be provided by RHD
31. The Department will appoint suitable staff to work with the Con-sultant's team in all activities from initial investigation to supervision ofthe works.
32. In addition, the Department will provide the assistance detailedearlier in these Terms of Reference for the Consultant's expatriate staff.
Facilities and Equipment
33. The Department does not anticipate directly providing eitherfacilities or equipment and accordingly the Consultant will detail in histechnical proposal the facilities and equipment he will require to carry outthis component of the consultancy. The costs of these, which will be reim-bursed to the Consultant, are to be detailed in the financial proposal.Equipment so provided will be handed over to the Department at the conclusionof the consultancy.
V. TRAINING
Scope of the Consultancy
34. Training of local personnel, both of the consultant and theDepartment, is the third component of the consultancy and is consideredequally as important as the other two. In particular the Consultant willundertake training of the Department's staff in the procedures involved inplanning, designing and the supervision of deferred maintenance works carriedout by contract. He will also be expected to provide appr-%oriate training to
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Annex 3.1Page 10 of 10
his own local staff and departmental personnel in the supervision of therehabilitation works.
35. The Consultant will include in his proposal a detailed plan of hisapproach to this aspect of the consultancy, including a breakdown betweenformal and site training.and a full listing of the facilities and equipmentwhich he considers will be required to successfully achieve the objective ofdeveloping these skills within the local staff organization.
VI. STAFFING
36. The Consultant will provide personnel for each component of theconsultancy who have a wide experience in their particular fields and who, inthe case of expatriate staff, have worked on similar projects preferablyoutside their own home countries.
37. Since the scope of the consultancy involves techniques relativelynew to Bangladesh it is anticipated that expatriates will fill some if notall of the key senior positions. However, wherever possible, the Consultantwill make use of available Bangladeshi nationals, by associating with a localconsultancy firm which has access to such staff.
38. The sub3ect of staffing is also dealt with in the SupplementaryInformation for Consultants.
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Annex 3.2Page 1 of 8
BANGLADESH
ROAD REHABILITATION AND MAINTENANCE PROJECT
Road Master Plan Study
Draft Terms of Reference
I. BACKGROUND
1. GOB and IDA have agreed on the need to strengthen RHD's capacity toplan, program and budget the local and foreign resources available to theroad sub-sector, and thus to develop a series of rolling three-year plans asplanning and budgeting tools.
2. In the meantime, GOB and the Asian Development Bank (ADB) hadagreed to 2 technical assistance projects comprising:
(a) a screening study of the national and regional network, totalling4,000 km, to determine the improvement priorities based on roadcondition and socioeconomic impact; and
(b) a technical and economnic screening study of the road network under.the administration of RED in the Northwest to determine theimprovement priorities according to their impact on socioeconomicdevelopment, particularly on surplus production and distribution.
3. In order to minimize duplication of efforts, GOB and the ADB andIDA have agreed to merge the 3 technical assistance elements into a singlestudy of a Road Master Plan (OMP).
4. The Road Master Plan will result from the use of modelling tools(HDM 3 modified) already available in RHD and adapted to Bangladeshi condi-tions under the RRM study carried out by SMEC and the Road Sector Developmentstudies carried out by Kampsax (both under UNDP financing). The data basewill be updated and extended to cover the RED road network listed in Annex Aby additional data collection on road roughness, deflections, road inven-tories, traffic surveys, vehicle operating costs and road construction andmaintenance costs. The modelling will transform population growth forecasts,agriculture production and other economic parameter growth forecasts intoroad transport demand forecasts and thus enable the consultant and RED todefine the future shape and capacity of the road network in 10 and 20 yearsas well as rank the necessary investments in order of economic priority andprepare the road development elements of the Fourth Five-Year Plan(1991-1995).
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Annex 3.1Page 2 of 8
5. GOB will use the Road Master Plan to identify projects to befinanced in the road sub-sector with local and foreign financing, includingADB and IDA. Detailed feasibility and engineering studies will still benecessary on the sections identified. This should ensure the constant flow
-' of foreign-financed projects that the road sub-sector needs to assist theeconomic development of Bangladesh. Also, as the master plan and modelling
v tools will be developed in RED, with adequate training of RHD staff or localconsultants, its regular updating will be facilitated.
6. Agreement has been reached that ADS will be the executing agency ofthe technical assistance project to be financed by UNDP. GOB, ADB and IDAwill submit to each other for comment, before they are finalized, TORs, theconsultant shortlist, the proposal evaluation report and draft consultantreports and other study outputs.
-I. OBJECTIVES
7. The paved road network has been constructed during the last'two/three decades and, as a result, the basic national grid is substantiallycomplete but many roads are substandard both structurally and geometricallyand there are many unbridged river crossings. Moreover, the secondary andtertiary road networks remain underdeveloped. The entire road network suf-fers from poor and insufficient maintenance.
8. Consequently, Bangladesh needs an integrated program of construc-tion, maintenance, rehabilitation, and modernization of its road network tomeet the burgeoning demand for road transport and to sustain the country'seconomic development.
9. The RMP has the following objectives:
(a) to find the optimal investment balance between:
(i) construction of new secondary and feeder roads;
(ii) construction of bridges on primary roads to replace exist-ing ferries:
(iii) rehabilitation of existing primary roads; and
(iv) modernization of existing primary roads.
(b) to find the optimal balance between investments and maintenance;
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Annex 3.2Page 3 of 8
(c) to find the optimal level of expenditures in investment and main-tenance given local resource constraints (financial and technical)and the probable level of foreign leading in the subsector in thenext few years; 1/
(d) to prepare the Fourth Five-Year Plan and proposals for projects tobe added in the lending programs of the major donors active in thesector
(e) to define the basic grid on which the highway network shoulddevelop and for each segment of the grid, the optimal phasing ofinvestments and maintenance over time; and
(f) to provide data to the Planning and Monitoring Cell (PMC) on roadmaintenance of RED (Road Maintenance Action Plan) for updating orpreparing road inventories on RND roads. These inventories will-also be a major tool for managing the network and planning andbudgetting maintenance.
-II. SCOPE OP WORK
Review of Relevant Studies and Detailed Work Plan
10. The consultant will review the relevant studies carried out in thesubsector in the past ten years, complement the list if necessary, andextract any information that may be used by the present study. A partiallisting is shown in Annex B.
11. Based on the information collected from past studies, the consult-ant will update and revise the original work plan and present it as part ofthe inception report.
Technical Data Collection
12. The consultant will collect or update the following technical datain the format required by the NDM Model.
1/ This can be difficult. To provide adherence to priorities, the consult-ant may want to consider a core program of top priorities for reasonablyassured funds, then a supplementary program if more funds become avail-able.
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Annex 3.2Page 4 of 8
(a) VOC. The consultant will identify a small number of typicalvehicles which will represent the vehicle fleet. For each vehicletype, the consultant will collect vehicle characteristics and unitcost data in order to estimate vehicle operating costs. The con-sultant should also review the appropriateness of the vehiclecategories available in the HDM 3 model to the Bangladeshi fleet,and recommend adaptation as necessary.
(b) Construction and Maintenance Costs. The consultant will estimatethe set of unit costs for construction and maintenance works thathe will use in the modelling phase on the basis of both a survey ofcost of similar works carried out recently, and a detailed analysisof the most important- cost components including equipment,materials consumables and labor.
(c) Road Data. The consultant will establish a reference system forthe RED roads. It will consist of a list of reference points whichalready exist and are clearly identifiable or which will be createdby the consultant and permanently marked (paint marking or woodstakes will not be accepted). Road distances between 2 referencepoints or the last reference point and the end of a section will inall cases be less than 5 km. The reference system will give aframework for road data collection and preparation of road inven-tories. The following data will be collected on paved roads:
si) Roughness. The consultant will use a response-type roadroughness measuring system to collect data on existing rough-ness on RHD roads. The system will be calibrated and peri-odically checked in accordance with the International Rough-ness Index (IRI) standard.
(ii) Deflection. The consultant will measure existing pavementdeflections under a standard 8 T axle. All measurements willbe carried out when the pavements are soaked, preferably aboutthe end of -the monsoon. In his proposal the consultant mayconsider one of the following two options:
a. importing temporatily and using a high speed deflec-tometer and collecting a high density of data (300measurements or more per km) on all RED paved roads; or
b. setting up several teams using the Benkelman beam andcollecting a low density of data on: (i) national pavedroads, and (ii) other paved roads which carry more than500 motorized vehicles per day (vpd), and sampling onlythe other roads.
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(iii) Pavements
a. Widths. The consultant will measure at least once everykm, pavement and shoulder widths on RHD paved roads.
b. Structures and CBRs. The consultant will open test pitsin the existing pavements and shoulders, every 25 km, inorder to determine the existing pavement structure,measure thicknesses of each individual layer, determinebearing capacity and measure CBR and moisture content ofthe natural subgrades and shoulders. Between two testpits, the Dynamic Cone Penetrometer (DCP) will be usedon the shoulders to assess the variability of CBRs ofthe subgrades and on the pavements (if driving the DCPthrough the macadam layers is not found possible, thenthe consultant will bore a pre-hole through it) layersto assess the pavement thickness and bearing capacityprofile. DCP on pavements should be at 2 km intervalsfor national paved roads and roads with more than 500vpd and at 5 km intervals on other paved roads. Theconsultant will ensure that deflection data is availablefor the sites selected for the DCP.
(iv) Cracking. The consultant will measure on typical sections thecracking incidence of the pavement surfacing. He will there-after assess the cracking incidence on the rest of the pavednetwork by visual assessment and comparison with the typicalsections. The consultant may in ais proposal propose a dif-ferent method.
(v) Potholing. Similarly, the potholing incidence will bemeasured on typical sections and assessed on the rest of thenetwork.
(vi) Rutting. Similarly, the incidence and severity of ruttingwill be measured on typical sections and assessed on the restof the network.
(d) Road Data, Unpaved Roads. Road data for unpaved roads will belimited to Roughness, CBR of the natural subgrade, thickness andcharacteristic of the surfacing and surfacing and platform width.It will be collected on a sample basis for typical sections andassessed elsewhere. The sampling rate will depend on the economicimportance of the road considered. The consultant, in his
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proposal, will describe how he will address the problem of brickpaved roads.
Inventories
13. While the consultant will produce the road data described aboveprimarily for the network modelling, the format in which this informationwill be gathered and presented will be developed jointly with the Planningand Monitoring Cell (PMC) of the RHD to facilitate the production of finalinventory and its regular updating by the PMC. As part of this effort, theconsultant will prepare an inventory procedures manual for use by the PMC.
Traffic Studies and Forecasts
14. Traffic Studies. In liaison with the PMC the consultant willreview the existing traffic data and prepare and carry out a program ofadditional data collection. The program will include but not be limited tothe following: (i) additional traffic surveys (volume, mix, axle loads); and(ii) O&D surveys for passenger and goods traffic.
15. Traffic Forecasts. The consultant will prepare traffic volume andmix forecasts for all roads considered in the RMP and present them in aformat required for RHD modelling. The choice of appropriate forecastingapproach will be preceded and determined by an assessment of the rate andnature of expected socio-economic change in Bangladesh. If predominantlystable growth conditions and gradual change are expected to prevail, theconsultant will extrapolate from past trends making whatever adjustments maybe necessary to account for changes that are likely to modify these trends.If, on the other hand, major and rapid changes in principal socio-economicparameters are indicated, the consultant will prepare traffic forecasts inthree stages including: (i) estimating the volume and location of futureagricultural, industrial and mining output and consumption, including exportsand imports; analogous estimates of population and personal income growth andof the income elasticity of demand for transport will be necessary,(ii) translating the population and output/consumption forecasts into traf-fic-both by volume and by origin and destination and, (iii) distributing thetraffic to the transport mode which can carry it most efficiently takingaccount of both perceived and total distribution costs. The resulting roadtransport growth rates will be applied to the base year traffic estimates toproduce road traffic forecasts.
16. The consultant shall prepare a brief rationale for his choice ofthe traffic forecasting approach and present it as part of his proposal.
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Road Modelling
17. Using sample of pavements for which technical data on condition,structure and traffic loading are available from the technical data collec-tion, including reasonable information on historical trends, the consultantwill evaluate the need for calibration of the HDM 3 model for it to ade-quately represent road deterioration trends for Bangladesh.
18. The consultant will assess whether segments additional to theexisting grid of roads are necessary to meet future traffic demands. For allbasic segments, the consultant will define the investments and the cor-responding maintenance needs that will be technically justified (constructionof new road sections and bridges on a new alignment, reconstruction on theexisting alignment to improved road standards, overlaying and/or widening theexisting road pavement and shoulders, periodic maintenance, etc.) to matchthe capacity of. the segment to future road transport demand. The consultantwill use the model EDM 3 to compare the options and select the economically=optimal strategy for the full network.
Road Master Plan
19. Several global strategies for the development of the road networkwill be compared in order to assess the optimum balance between variouscategories of investment and maintenance expenditures and meet the studyobjectives as defined above, under financing constraints. The consultant-ill review the availability of local and foreign financing for the roadsubsector in Bangladesh, make reasonable assumptions of future levels consis-tent with the lending programs of the major donors in the subsector (ADB,IDA, Japan, UK, etc.) and match these against the optimized programs toproduce a Road Master Plan for the year 2010.
Road Investment Plans
20. On the basis of the BMP, the consultant will prepare and detail themaintenance and investments budgets for the next five years and inputs foreventual amendment of the Third Five-Year Plan (FY86/90) and preparation ofthe Fourth Five-Year Plan.
IV. Training
V. Reports and time schedules
A. TasksB. Reports
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Annex 3.2Page 8 of 8
VI. Data, local services, personnel and facilities to be provided by theBorrower
VII. Annex A. RED road network (see Annex 2.2 of SAR)
VIII. Annex B. Inventory of relevant studies
A. Smec:
(1) RRM Study; and
(2) Maintenance.
B. Kampsaz:
(1) Road Maintenance; and
(2) Road sector taxes and expenditures and road transportindustry.
C. Consulting Engineering Services Roughton and Partners and Develop-Ment Design Consultants:
(1) National Traffic Data.Base Report (1987).
D. Oda bridges
S. Pacific Consultants, Intermodal Transport Study
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BANGLADESH
ROAD REMABILITATION AND MAINTENANCE PROJECT
Agreed Road Maintenance Action Plan
1. This document describes the necessary actions that the Governmentof Bangladesh (GOB) will undertake to imptove road maintenance, its financingand its effectiveness.
I. ROAD MAINTENANCE BUDGETS
2. COB agrees to increase the budgets for road maintenance to coverthe needs shown in columns "Budget requirements of *HD for 5 years(1987-1992)" of the Table 1: Road Maintenance Budgets. It is understoodthat GOB may require foreign financing to meet the specific targets forperiodic maintenance.
3. All figures are in 1986 constant prices (Taka million). Actualbudgets will be increased to take into account the actual inflation ratebetween 1986 and the year considered. Equipment purchase for routinemaintenance is additional.
It. MAINTENANCE BY CONTRACT
4. Contract works, with the contractor fully responsible fororganizing the works and supplying the equipment and materials, will beprogressively introduced for most periodic road maintenance works andpossibly for some routine maintenance works. RED staff will be organized andtrained to plan, program and supervise the works. The training program willbe implemented by tha supervising consultant.
III. TRAINING
5. A training program for RHD staff on planning, preparation andsupervision of maintenance carried out by contract has been prepared and willbe implemented by the supervising consultant, in the northwest on a pilotbasis.
6. In addition, and in line with the consultant recomuendations in themaintenance study, GOB will create and operate a training institute for roadmaintenance crews and workshop personnel by June 30, 1988. The trainingprogram will include in particular:
(a) planning and programuing of routine maintenance by force account;
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(b) cost aecounting and control;
(c) basic road maintenance activities;
(d) use of aggregates, binders and other materials in road maintenance;and
(e) a program for workshop staff.
IV. MATERIALS AND STANDARDS STUDY
7. Road standards currently in use by BuD are in some cases inadequateand often lead to pavements too narrow and too thin for the traffic theysupport, motorized and non-motorized. This obviously reduces investmentcosts but the saving is more than offset by increased vehicle operating costsand maintenance expenses. Good materials are in short supply, for example,there is little river gravel or stone outside the Sylhet region. However,manufactured bricks and river sand could be found country-wide. Existingpavement standards and techniques rely mainly on penetration macadam,grout..ng or brick soling, which do not require much road-making equipment butalso do not use the scarce road materials to their full extent.
S. Revision of the road standards has been initiated during thepre-appraisal mission by agreement with RHD and ADB on common improvedstandards to be used under the projects being prepared. Furthermore, thisaction will be continued by using, to the extent possible, the engineeringstudies being carried out and the corresponding project works to define,compare and test improved materials and techniques.
9. G08 will employ consultants to carry out a Materials and StandardsStudy with the following objectives (more detailed TORs are in Annex 3.4):
(a) to inventory materials which can be economically and efficientlyused in road construction and maintenance, and study thefeasibility of further site investigations or development ofartificial aggregates;
(b) to develop pavement construction and maintenance techniques whichwould make optimal use of local materials (river boulders, bricksand sand) and minimize transport costs;
(c) to develop a catalog of pavement structures for Bangladesh; and
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Annex 3.3Page 3 of 7
(d) to draft an unified set of road construction and maintenancestandards (geometric and other essential parameters) and technicalguidelines for RED staff.
V. PLANNING AND MANAGEMENT
10. To improve planning and management of maintenance operations, GOBwill establish by June 30, 1988, Maintenance Planning and Monitoring Cells(MPMCs), each adequately managed and staffed, in the RED Chief Engineer's(CE's) office and at each of the four zonal headquarters in Dhaka,Chittagong, Khulna and Rajshahi. GOB will also strengthen the EconomicsCircle and Traffic Engineering Division at RED headquarters throughreallocation of existing staff and creation as necessary of additionalpositions.
11. The MPMC in CE's office will be responsible for overallmaintenance, planning and programming, establishing a road maintenance andinformation system, preparation of Five-Year and detailed annual maintenanceplans for .FY88/89 through FY92/93 (parts of which are being financed by IDAand ADB), budget estimates and monitoring progress on all maintenance works.MPNCs at the zonal headquarters will be charged with the preparation ofdetailed annual maintenance programs based on traffic surveys and pavementstrength tests and comprehensive visual as well as instrumental inspections,and the implementation of all maintenance works using cost effectiveprocedures and techniques.
12. The detailed maintenance plans for each year prepared will identifyby km the extent and level of patch work and resealing on the basis ofdetailed pavement strength tests and traffic studies. Such plans will bereviewed by the Government with IDA not later than March 31 each year andbudgetary allocations for maintenance will be made on the basis of suchreviews.
13. To advise RED in carrying out the various tasks above and helpbuild up its capabilities and to also provide limited assistance in theimplementation of the ADS Road Improvement Project, experts withinternational experience, including a road maintenance engineer, a trafficengineer and two maintenAnce supervisor experts, will be engaged. Theirservices will be financed by UNDP with ADB as executing agency.
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Annex 3.3Page 4 of 7
VI. REORGANIZATION OF RHD IN THE NORTHWEST
14. In order to separate the construction (development) and maintenanceset up of the Roads and Highways Department, some reorganization in theexisting set up with the available personnel, will be implemented on a pilotbasis at Raj3hahi Circle under Rajshahi Zone by June 30, 1988. Thereorganization will be as follows:
(a) the existing Superintending Engineer, Executive Engineers,Sub-Divisional Engineers and other staff of the operation unit ofRajshahi Circle will be assigned to look after the maintenanceworks (routine and periodic) of all the roads under Rajshahi RoadCircle. In addition, they will also look after the works ofUpazila connecting roads until their completion.
(b) one of the two posts of Superintending Engineers of the PlanningUnit of Rajshahi Zone shall be renamed as Superintending Engineer(Construction), who will look after all the construction/improvement/upgrading works under development budget within theJurisdiction of Rajshahi Road Circle, except the RoadRehabilitation and Maintenance Project financed by IDA under theProject Civil Works Director (Additional Chief Engineer);
(c) out of the five existing posts of Ezecutive Engineers in thePlanning Unit of Rajshahi Zone, three Executive Engineers will bere-designated as Executive Engineer, Construction-I/I/III and willbe posted under the above Superintending Engineer (Construction) tolook after the construction/improvement/ upgrading works, alongwith his existing staff. For proper functioning of these divisionsas drawing/disbursing offices, the posts of one DivisionalAccountant, one Senior Accounts Clerk and one Cashier shall have tobe created for each of these divisions. Where equivalent positionsexist elsewhere in the Rajshahi Road Circle, these positions willbe abolished in order to avoid any duplication or increase in staffor in budget.
td) the headquarters of these three divisions will be selected as perrequirement of the works undertaken by these divisions and
(e) the other post of Superintending Engineer of the Planning Unit willbe re-designated as Superintending Engineer, Planning and Design,under whom there will be two Executive Engineers: (i) the existingstructural designer; and (ii) the other shall be redesignated asExecutive Engineer, Planning and Road Design.
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Annex 3.3Page 5 of 7
V
15. Depending upon the results of this pilot reorganization and itsfindings as agreed between IDA and GOB, RHD plans to extend thereorganization to all zones by June 30, 1989 in order, in particular, to runconstruction and periodic maintenance activities on a project basis and torevise the boundaries between divisions to balance the length of roads.
VII. REVISION OF THE ACCOUNTING SYSTEM
16. The present accounting system for maintenance is inadequate. COBwill review it thoroughly in order to allow a more detailed identification ofmaintenance expenditures and prepare proposals for a new system by June 30,1988. The new accounting system will be implemented by June 30, 1989.
VI'I. REORGANIZATION OF THE EQUIPMENT POOL
17. GOB will reorganize by June 30, 1989, the RHD equipment pool so asto ensure that these are maintained and operated efficiently. With this endin view, GOB will establish, separately for road equipment and ferryservices, revolving funds or any other appropriate mechanism satisfactory toIDA for utilization exclusively on maintenance and replenishment of theequipment pool. GOB will also consider introduction of a scheme for internalleasing of RED equipment at economic rates; in addition, hire rates tocontractors will include a reasonable premium.
IX. PREPARATION OF A SYSTEM OF INCENTIVES
18. In an effort to improve the efficiency of RED maintenanceoperations, COB will investigate various incentive schemes and rewardsystems. Based upon their findings and if warranted, GOB will prepare byJune 30, 1988, an appropriate incentives package for RED road maintenancepersonnel and implement it by June 30, 1989.
ASPTRMay 19, 1987
Table 1: ROAD MAINTENANCE BU"GETS(At 1986 constant prices - T ka Mllns)
Budget ProgramBudget allocation of RHD Budget Requirement of RHO for S years (1987-1992)demand of for RH0 against (as per KAMPSAX Study)RHD for during allocationItem 1986/817 19S68B for 1688/87 1987/88 1988/89 1989/90 1990/91 1991/92
A. 168-RBP (e-Repair) 410
1. Routine Maintenance
(a) paved roas (5064) km 500 200 254 330 382 400 400(b) other roads (1093) kmand offico buildings,werkshops. 1aborntoric0.residential accommodm-tions. erboriculturaloperations, etc. 20 10 15* 20* 20* 20* 200
* Not included in KIapsax's estimate In the study report but the amount is essentially required.00 Not Included in Keapsas estimate In the study report. although the report has recommended for setting upseporate roed maintenance field offices nd strengthening of central planning oftice at the headquartersfor planning. programming, monitoring and evaluation of maintenance as well as Investment works under RH.This amount is considered as the estimated requirement for lmplementation of Kapasax recommendation In this regards.Notes Estimated budget requirement for 5 years from 198t/SS is considered at 1986 constant prices. Allocationshould be made at currant prices for each year in order to take care of price Inflation. Equipment for routine tomaintenance not Included.
1
. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 0
.49-Anon 3,3
Page I of 7
ROAD REHABILITATION AND MINTENANCE PROJECT
Table 2a Organigram ot Pilot Schme of Rajehahi Road Circle
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-70-Annex 3.4Page 1 of 8
BANGLADESH
ROAD REHABILITATION AND MAINTENANCE PROJECT
Study of Road Materials and Standards
Draft Terms of Reference
I . INTRODUCTION
1. Road standards currently in use by RHD often lead to pavements toonarrow and too thin for the traffic they support, motorized andnon-motorized. This obviously reduces investment costs but the saving ismore than offset by increased vehicle operating costs and maintenanceexpenses.
2. Pavement construction techniques currently in use in Bangladesh arevell adapted to labor-intensive construction methods but usually do not makeefficient use of scarce construction materials.
3. The existing Bangladesh fleet of road transport vehicles includes amajority of two-axle, gasoline-powered trucks which are known for not beingthe most efficient vehicles.
4. For these reasons, among others, the Government of Bangladesh (GOB)has requested UNDP to finance a study of road materials and standards inBangladesh.
Ir. OBJECTIVES AND DESCRIPTION
5. The objectives and description of the study are:
(a) to inventory materials which can be economically and efficientlyused in road construction and maintenance in Bangladesh, and studythe feasibility of further site investigations or development ofartificial aggregates;
(b) to develop pavement construction and maintenance techniques whichwould make the most of local materials (river boulders, bricks,sand, etc.) and minimize transport costs, and prepare appropriatetechnical guidelines for RED staff;
(c) to develop a catalog of pavement structures for Bangladesh;
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Annen 3.4Page 2 of 8
(d) to draft an unified set of road constructions and maintenancestandards (geometric and other essential parameters) for highwaysin Bangladesh and
(e) to study the optimum legal axle load and study other action whichwould improve efficiency of the country's transport fleet.
6. This part of the study has three objectives: (i) to evaluate towhat extent, consistent with the capabilities of the road system, larger,heavier, more fuel-efficient vehicles than the two-axle vehiclespredominantly in use now should be permitted to use the inter-urban roads;(ii) to determine the desirable legislative, fiscal and administrativechanges needed to promote their use; and (iii) to recoup from them theeconomic cost which their use of the road network incurs.
III. SCOPE OF CONSULTANT SERVICES
Inventory of Materials
7. The consultant will inventory the types 1/ of road materials andbinders currently available in the country or which can be economicallyimported and which have potential for being effectively and economically usedin road construction and maintenance.
8. For each type of material, the consultant will list existing orknown quarries, sites or points of production with their average quality andannual production and their potential reserves, renewable and non-renewable.if no reliable information exists on either the quality or the quantityavailable, the consultant will collect samples, carry out drillings orseismic surveys, topographic surveys and laboratory tests required toevaluate them at the level of precision required by the study. A line ofbudget of US$150,000 is earmarked for that purpose.
9. The inventory will be carried out in two phases. The first phasewill list only the data already available and prepare the program of siteinvestigations and laboratory study which would make the best use of thelimited line of budget available. The second phase will incorporate theresults of additional data collection and surveys.
1/ A non-limitative list may bes river boulders, river sand, hard rock,manufactured bricks, bitumen and cement.
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Annex 3.4Page 3 of a
Develoent of Pavement Techniques
10. The consultant will list the pavement construction and maintenancetechniques (improved subgrade, sub-base, base and surfacing layers) which arealready known and used in Bangladesh or elsewhere and which would maketechnical and economical sense to develop and adapt to Bangladesh conditions.
11. For each of the techniques listed, the consultant will make apreliminary estimate of their potential relative performance, unit cost,advantages and disadvantages. In particular, the consultant will estimatewhether they will allow the use of labor-based or equipment-basedconstruction techniques, or a mixture of both. In all cases, the consultantwill estimate the minimum equipment by type which will be required.
12. From the techniques which show the most potential, the consultantwill extract for further study at least two techniques for improved subgrade,four techniques for sub-base or base, and three techniques for surfacing.For each technique he will propose a study program of sample collection andfield and laboratory tests. A line of budget of US$250,000 is earmarked forthat purpose.
13. The consultant will subcontract to the Bangladesh Road ResarchLaboratory (BRlL), at their current approved rates, all work that can,becarried out at the BaRL with their existing manpower and means. Theconsultant will list what assistance (manpower, training, equipment) he willprovide to the BaRL to allow them to carry out additional work. Theremaining work will be carried out by the consultant's own forces, -orsubcontracted to other laboratories in Bangladesh or abroad.
14. A non-limitative preliminary list of techniques with potentials foruse or improvement is the followings
Improved Subarades:
(a) Mixture with river sand, and
(b) Lime stabilized.
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Annex 3.4Page 4 of 8
Sub-base and Bases:
;(a) Macadams,
(b) Concrete cement with brick aggregates,
(c) Element paving,
(d) Continuously graded, crushed gravel from boulders,
(e) Mixture river sand - crushed sand,
(f) Several cement treated mixtures, and
(g) Several bitumen treated mixtures.
Surfacing:
(a) B8ST,
(b) DBST,
(c) Bituminous premix,
(d) Asphaltic concrete, and
(e) Sand asphalt.
15. For each technique selected and tested, the consultant willestimate the technical characteristics which can be obtained in realconstruction and prepare technical guidelines for its use.
Catalog of Pavement Structures
16. On the basis of the use of the techniques selected, the consultantwill develop a catalog of pavement structures adapted to Bangladeshconditions.
17. For this purpose, tha consultant will:
(a) the consultant will review the technical data available in RBD,BRRL or elsewhere in Bangladesh on the cMracteristics and theirvariations of subgrade soilst road traffic, rainfall and of anyother parameter relevant to pavement design. If the data is
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Annex 3.4Page S of 8
insufficient or incomplete the consultant will prepare a program ofadditional data colloction; and
(b) the consultant will define about five categories of road trafficvolumes and of subgrade soils. For each couple traffic, soil hewill design several pavement structures, using the bestcombinations of the selected techniques.
Revision of Standards
18. The consultant will review the classification of roads currently inuse in Bangladesh and, if necessary, propose modifications.
19. For each category of the classification-of roads, the consultantwill propose road construction and maintenance standards (geometric and otheressential parameters).
Efficiency of the Country's Road Transport Fleet
20. With the purpose of determining the optimum vehicle size andconfiguration, which will aim at minimizing the present value of the totalroad transport cost 2/ in the country, the consultant shall perform thefollowing tasks:
(a) review the existing situation of the vehicle fleet;
(b) review the current conditions of the highway system; and
(c) estimate road traffic demand by main comodities in volume as wellas in spatial distribution.
(d) propose alternative vehicle sizes and configurations, includingincreased axle loads, to be evaluated;
(e) conduct the economic evaluation of different alternatives from thestandpoints of overall economic cost optimization, including usercosts, roadway construction and reconstruction costs and roadwaymaintenance costs; and
2/ Total road transport cost includes vehicle operating cost, road construc-tion and maintenance costs.
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Annex 3.4Page 6 of 8
(f) make recommendations on proposed vehicle sizes and configurations,-a likely time frame for the introduction of fleet charges, as wellas the likely implementation program.
21. Review of the Existing Situation of the Vehicle Fleet. Theconsultant should survey a representative sample of goods, vehicles and buseswhich use the main inter-urban highway system and obtain information on themajor dimensions and relevant characteristics of each vehicle, the commoditycarried, the empty and gross vehicle weights, and the distribution of theseloads on each axle. This survey should also yield information on theproportion and number of vehicles exceeding the legal axle weight limits.Other data should also be collected from different sources, such as:(i) technical specification of commercial vehicles and buses from supplier;(ii) general characteristics and production/capacity of present vehicleassembly plants in Bangladesh; (iii) commercial vehicles and bus registrationand age distribution; (iv) commercial vehicles and bus annual kiiometrages;(v) axle load surveys already conducted in the country; and (vi) the existingsystem of vehicle maintenance. The consultant should also analyze in detailthe existing legislation governing vehicle weights and dimensions, at boththe national and state levels, and the degree of eniorcement of regulationsunder such a system.
22. Review of the Highway System. The consultant should collectinformation on the national and major state highway systems including, butnot restricted to: (i) current design standards for roads and bridges;.(ii) inventory by homogeneous sections specifying present geometricstandards, serviceability indices, weight and size restrictions on bridgesand roads; (iii) research studies conducted in the country concerning roadbehaviour under different conditions of terrain, axle loads, traffic,climate, soils, etc.; and (iv) the Government's plans for road constructionand maintenance for the next 15 years.
23. Road Traffic Demands. A projection should be made of the likelydevelopment over the next 15 years of road traffic in Bangladesh, identifyingfreight and passenger volumes, type of commodities transported, spatialdistribution of traffic, likely utilization of containers, etc. Projectionsshould be made on the basis of several plausible assumptions to be identifiedby the study, and in consultation with the planning units in the Governmentof Bangladesh.
24. Alternative Vehicle Sizes and Configuration. Based on the* information collected in the preceding sections, and on world experience, the
consultant should propose alternative vehicle sizes and configurationsincluding increases in the legal axle load. After these proposals have been
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Annex 3.4Page 7 of 8
discussed and agreed with G08 and IDA, each alternative should beeconomically evaluated.
25. Economic Evaluation of Different Alternatives. The consultantshould conduct an economic evaluation of each different vehicle configurationwith the aim of rationalizing the Bangladesh highway system, which willprobably mean permitting larger vehicles to operate with higher loadings inBangladesh. A vast body of experience collected worldwide, indicates thatthe utilization of larger vehicles reduces considerably the cost per ton-kmof transporting goods and passengers, but this economic saving should beweighed against the incremental capital and maintenance cost of the largervehicles and the improvements to roads, which their use could impose on theeconomy as a whole. The suggested criterion to evaluate different proposalsis the minimization of the present value of the total transport cost, at anopportunity cost of capital which, in Bangladesh, could be assumed at 10percent. The consultant should also evaluate alternatives under a reasonablenumber of different operating conditions (terrain, geometric standards,congestion, traffic mix, commodity transported, etc.), which could lead todifferent recomAendations applicable under specific operating conditions.All costs should be calculated. net of taxes, duties and subsidies, and ashadow price analysis should be tested to see if this is relevant. If shadowpricing of costs and benefits makes a significant difference in theevaluation, it will be made for the analysis as a whole. The consultant willalso carry out a sensitivity test of the alternatives with respect tovariations in the main assumptions used in the economic evaluation (trafficvolume and growth, savings in vehicle operating costs, cost estimates, etc.).
26. Final Recommendations. The consultant should make the finalrecoamendation on the optimum vehicle fleet mix, based on economic,engineering, marketing, legal, administrative and managerial criteria. Itshould be recognized that both the incorporation of *a substantial number oflarge vehicles in the fleet and the corresponding improvement in the highwaynetwork will take a considerable amount of time to materialize, and bothshould be done concurrently to permit full utilization of the advantages oflarger units. The consultant should prepare a detailed implementationprogram specifying phases and intermediate targets for its development. Forexample, it seems advisable to limit the first phase of the implementationprogram to a major corridor of the country where enough experience could becollected to be later applied to the rest of the country. The consultantshould also recommend the necessary legislative, fiscal and administrativechanges required to implement the modernization of the fleet.
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Annex 3.4Page 8 of 8
IV. TIMING AND REPORTS
27. The consultants will submit reports as follows: five copies to REDand three copies to IDA. The reports will be in the English language.
ASPTRMarch 31, 1987
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BANULADESH
ROAD REHABILITATION AND MAINTENANCE PROJECT
Domestic Construction Industry Study
Terms of Reference
I. OBJECTIVES
1. During the current Third Five-Year Plan, a considerable number ofconstruction projects will be executed through foreign assistance.Implementation of these projects will largely depend on capabilities of theconstruction firms engaged.
2. With the general objective of developing a more efficient domesticconstruction/contracting industry, the Government of Bangladesh (GOB)requested UNDP's financial assistance for undertaking a study on developmentof the domestic construction industry. The World Bank has agreed to act asExecuting Agency for the study and intends to engage consultants toinvestigate, examine and explain thoroughly the constraints the domesticconstruction industry has been facing and to suggest measures for itsdevelopment, by bringing to Bangladesh international practices in theindustry.
3. The short-term objectives of the study focus on the institutionalenvironment and includes
(a) establishment of a permanent information system for collectingconstruction industry statistics on a routine basis, particularlyaimed at providing data for indexing private and publicconstruction contracts and relating them to construction costs(inputs/outputs);
(1) establishment of a consolidated national registry for civil andbuilding contractors;
(e) assisting contractors in the establishment of an effectiveContractors' Association;
(d) establishment or identification, within the Governmentorganization, of an office responsible for representing theinterests of GOB in all matters related to the constructionindustry, and for communicating with and supporting the domesticconstruction industry;
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Annex 3.5Page 2 of 6
(e) preparation of draft legislation which would recognize constructionas an industry, and to extend to it the coverage of the duty andtaxation regimes which apply to other industries; and
(f) preparation of draft legislation to introduce modern and equitableprocurement and contracting procedures.
4. The medium-term objectives of the study focus on improving theperformance of the individual construction enterprises and include:
(a) identification of the major constraints which adversely affectefficient operation of construction enterprises; and
(b) development of specific action plans aimed at resolving the keyconstraints identified in (a) above.
II. SCOPE OF CONSULTANTS' SERVICES
The consultants will carry out the following tasks:
5. To examine and evaluate in general terms the existing domesticmechanical, civil and electrical engineering contractors in Bangladesh, theircapital investments, organizational set-up, personnel, construction methods,equipment, previous experience, quality as well as volume of their previousconstruction work, and assess the business environment in which they work.
6. To assess in general terms the national demand in construction forthe next five years in particular, and for the period of prospective plan ingeneral, and highlight the requirement of a reasonable development of theconstruction industry.
7. To identify the GOB office or committee 1/ to coordinate GOBactions in all matters related to, and for the dialogue with the constructionindustry, to propose a definition of its responsibilities and of theresources to discharge them, and to draft a plan for its implementation,including any necessary enabling legislation.
1/ One option may be to set up a small cell supervised by anInter-ministerial Committee.
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Annex 3.5Page 3 of 6
8. To prepare a framework for a construction industry informationsystem and related data bases which would centralixe collection, analysis andpublication of construction statistics, particularly in res;ect of costindices to be used in price adjustment, and to propose an action plan for itsestablishment.
9. To recommend suitable modalities for establishing a consolidatednational registry for civil, mechanical, electrical and building contractors.
10. To suggest ways and means for constituting a contractor'sassociation as representative of bonafide contractors and draft a charter forthe Association, according to which membership should depend on experience,reliability, permanent suitable qualified professional staff and financialstrength.
11. To analyze the institutional difficulties and constraints whichaffect the construction industry and inhibit it from developing.
12. To suggest remedial measures and specify the action to be taken bythe agencies, in particular: .
(a) to identify the minimum equipment needed by a contractor in aspecified activity, taking into consideration those operationswhere labor-intensive methods are technically sound and costeffective with the appropriate blend of equipment;
(b) to assess the financial needs of the construction companies such&a:
(i) minimum working capital;
(ii) advance payment;
(iii) bonds and bank guarantees; and
(iv) amount in foreign currency to cover purchase of equipmentsand spare parts;
(c) to analyze the existing facilities for hiring out equipment and inparticular the newly-established equipment leasing company.
13. To prepare a draft legislation which will recognise construction asan industry and extend to it the favorable coverage of duty and taxationregimes which is applied to other manufacturing activities.
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Annex 3.5Page 4 of 6
14. To suggest improvement of procurement and contracting procedures,standard tender forms and fair general conditions of contract in order tolimit unnecessary risk-taking by the contractor, eliminate impediments to thestraightening of the industry, stimulate its growth and elevate itscompetence and professional standing.
15. To propose a detailed action plan for improving the efficiency ofconstruction enterprises including technical assistance to be provided tocontractors, and to draft terms of reference for the consultants and for theCOB office who will supervise the implementations of the action plan.
III. TASK AND REPORT SCHEDULE
16. The consultants will submit reports according to the followingschedule. All these documents will be prepared in close consultation withGOB off cers and representatives of the contracting industry, to obtain asfar as possible their commitment to the various measures and actions whichwill result or highlight differences in approaches. The consultant will,however, have full responsibility for.the reports and recommendations. Allaction plans will consist of programs and schedules for the various steps oftheir implementation; they will specify the persons or institutionsresponsible, the methods to implement the plans, the estimated costs andlikely sources of funding and the standards by which to appraise and monitorthe results of their implementation.
17. Inception Report. It will be issued three months after thestarting date. It will comprise in particular:
(a) brief assessment of the construction industry and its businessenvironment (background paper); 2/ and
(b) framework for a construction industry information system and database and an action plan for its establishment.
2/ It will be guided by the "Framework Terms of Reference for Studies of theConstruction Industry in Developing Countries", included as Annex 1 ofthe Construction Industry: Issues and Strategies in Developing Countries(World Bank publication, February 1984).
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Annex 3.5Page 5 of 6
18. First Progress Report. It will be issued six months after thestarting date. It will. comprise in particular:
(a) framework for a consolidated national registry for contractors andan action plan for its establishment; and
(b) draft charter for Contractors' Association.
19. Monthly Summary Report. They will be issued monthly and willsunmmrize tasks completed or being carried out, problems encountered and anupdated study schedule and list actions expected from GOB.
20. Draft Final Reporte It will be issued ten months after thestarting date. It will comprise in particular:
(a) identification of GOB office to take responsibility of theconstruction industry, definition of responsibilities and theresources necessary to discharge them and an action plan for itsimplementation;
(b) draft legislation for recognition of the construction industry;
(c) draft legislation for procurement and contracting of constructionwork; 3/
(d) analysis of major constraints affecting construction enterprises,and definition of a general strategy for supporting the domesticconstruction industry;
(e) detailed action plans for improving the efficiency of constructionenterprises, both building and civil engineering, including inparticular the strengthening of the road building contractors,finalising and defining the details of the support actions proposedto be carried out in coordination of the financial inputs from IDAand ADB for road rehabilitation and improvement, and rural roadconstruction (they include the mechanisms for leasing of equipment
3/ Same as footnote 2.
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Annex 3.5Page 6 of 6
and for providing technical assistance from experiencedcontractors); 4/ and
(f) terms of reference for the consultants and COB office, who willsupervise the implementation of the action plans to be implementedas an immediate follow-up of this project.
ASPTRMarch 31, 1987
4/ The detailed action plans should be few, and referred to the toppriorities identified in the overall strategy to avoid diluting thesupport effort.
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Annex 3.6Page 1 of 5
B~~~~~~~ANGLADUSH
ROAD RUIABILITATION AND MAINTENANCE PROJECT
Project Cost Estimates and Financing Plan
1. Project Costs and Financing Plan are summarized in the tables onthe following pages. They are based on consultants and the appraisalmission estimates, updated to May 1987 prices,
2. The table and graph on the last page show project comitments(Commit.) and disbursements (Disb.) for the IDA credit, compared to the
*nine-year disbursement profile for transportation projects in the SouthAsia Region. Project disbursements are expected to be slower than theprofile for the first four years, thereafter faster than the profile, butfor this second period, differences with the profile are less than 7X.The project price contingencies have been computed on the basis of theCommitment Schedule (schedule of physical execution and financial commit-ment of project resources). The project disbursemnt schedule is derivedfrom the commitment schedule by introduction of a disbursemezt lag of onesemester on average (during this period the contractor will execute theworks and prepare his bill; the supervising consultant and the ProjectCivil Works Director will check the bill and certify it; ROD headquarterswill process it and prepare the disbursemeat request to be paid out of theSpecial Account and then a request to replenish it will be sent to IDA).
3. The project may be implemented more efficiently. A reasonabletarget would be to reduce the comitment schedule by one year and thedisbursement lag by one quarter. This would reduce the project's pricecontingencies and thus total project cost by about US$2 million, and wouldhave no effect on the economic evaluation.
ASPTRNay 23, 1987
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