Bangladesh: Country Business Operations Plan (2021-2023) · 2020. 8. 27. · in rural livelihoods...

Country Operations Business Plan

August 2020

Bangladesh 2021–2023 This document is being disclosed to the public in accordance with ADB’s Access to Information Policy.

CURRENCY EQUIVALENTS (as of 3 August 2020)

Currency unit – taka (Tk)

Tk1.00 = $0.012 $1.00 = Tk84.80

ABBREVIATIONS ADB – Asian Development Bank ADF – Asian Development Fund COBP – country operations business plan COL – concessional OCR lending COVID-19 – coronavirus disease OCR – ordinary capital resources SASEC – South Asia Subregional Economic Cooperation

NOTE

In this report, “$” refers to United States dollars. Vice-President Shixin Chen, Operations 1 Director General Kenichi Yokoyama, South Asia Department (SARD) Country Director Manmohan Parkash, Bangladesh Resident Mission (BRM), SARD Team leader Jyotsana Varma, Principal Country Specialist, BRM, SARD Team members Bangladesh country team In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS

Page I. CONSISTENCY OF BUSINESS PLAN WITH COUNTRY PARTNERSHIP STRATEGY 1

II. INDICATIVE RESOURCE PARAMETERS 1 III. SUMMARY OF CHANGES TO LENDING AND NONLENDING PROGRAMS 2 APPENDIXES 1. Country Assistance Results Areas 3 2. List of Linked Documents 6 3. Indicative Assistance Pipeline 7 4. Assistance Program for Current Year 16 5. Indicative Knowledge Products and Events 20

I. CONSISTENCY OF BUSINESS PLAN WITH COUNTRY PARTNERSHIP STRATEGY 1. The country operations business plan (COBP), 2021–2023 is aligned with the country partnership strategy, 2016–2020 of the Asian Development Bank (ADB) that ends this year.1 The COBP is also consistent with the guiding principles of the 8th five-year plan (under preparation) and its core themes of promoting prosperity and fostering inclusiveness, and ADB’s Strategy 2030.2 The COBP includes projects in agriculture, natural resources, and rural development; education; health; energy; finance; transport; and water supply and other urban infrastructure and services sectors. It continues to support gender inclusion, climate resilience, balanced regional development, and private sector participation. It emphasizes the inclusion of innovative approaches and new technology in projects and programs, and full leveraging of cofinancing opportunities. Adopting the “One-ADB” approach, ADB will continue to scale up its private sector operations while pursuing public–private partnership projects.3 2. Responding to the COVID-19 pandemic, financing priorities of the COBP have been adjusted to include policy-based loan covering social protection, economic recovery, and medium-term health programs. Projects in the COBP will also help the country attain several Sustainable Development Goals.

II. INDICATIVE RESOURCE PARAMETERS 3. Bangladesh, a group B developing member country, is eligible for regular ordinary capital resources (OCR) lending and concessional OCR lending (COL). The indicative resources available for commitment during 2021–2023 for sovereign operations total $5,283.8 million, comprising $2,607.5 million for regular OCR lending and $2,676.3 million for COL. The final allocation will depend on available resources, project readiness, and the outcome of the country performance assessments. Cofinancing and funding from other sources, including Asian Development Fund (ADF) grants from the ADF 13 thematic pool for projects addressing specific challenges, will be explored.4 4. The lending and nonlending program for 2021–2023 is in Appendix 3. Required resources include $5,938 million for firm projects, $5,170 million for standby projects, and $35.6 million for

1 ADB. 2016. Country Partnership Strategy: Bangladesh, 2016–2020. Manila. ADB’s new country partnership strategy,

2021–2025 is under preparation, and is expected to be considered by the ADB Board of Directors in July 2021. 2 The five core themes of the proposed 8th five-year plan are (i) rapid recovery from COVID-19; (ii) gross domestic

product growth acceleration, employment generation, and rapid poverty reduction; (iii) a broad-based strategy of inclusiveness; (iv) a sustainable development path that is resilient to disaster and climate change; and (v) the development and improvement of critical institutions. ADB’s Strategy 2030 identifies the following key operational priorities: (i) addressing remaining poverty and reducing inequalities; (ii) accelerating progress in gender equality; (iii) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; (iv) making cities more livable; (v) promoting rural development and food security; (vi) strengthening governance and institutional capacity; and (vii) fostering regional cooperation and integration. ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific. Manila.

3 Private sector operations, including supply chain and trade finance, will ease credit constraints, facilitate the issuance of local currency bonds, and directly invest in infrastructure, renewable energy, and agribusiness projects. ADB will continue to support the Bangladesh Public Private Partnership Authority as transaction advisor for transport projects, and strengthen health services in selected hospitals following the memorandum of understanding with the Ministry of Health and Family Welfare.

4 The proposed ADF 13 framework introduces a single thematic pool for group A countries, including International Development Association gap countries, and, on a very selective basis, group B countries, addressing thematic priorities in gender equity, climate change adaptation and disaster risk reduction, and regional cooperation and integration, including regional public goods.

https://www.adb.org/sites/default/files/institutional-document/198831/cps-ban-2016-2020.pdf

https://www.adb.org/sites/default/files/institutional-document/435391/strategy-2030-main-document.pdf


2

the nonlending program.5 Strong government demand, sector absorptive capacity, and project readiness continue to be key criteria in selecting programs and projects, which may be processed earlier, depending on their readiness, regardless of their status as firm or standby. The standby list includes a pipeline of bankable projects that respond to the country’s needs and growing absorptive capacity, to be financed depending on the availability of additional lending resources. Policy-based lending operations for 2021–2023 will be subject to the resource availability and available headroom under ADB’s performance-based lending ceiling. 5. The country assistance results areas (which align ADB assistance sectors with the cross-sector strategic agenda, provide directions on the allocation of sector resources, and show changes from the last COBP) are in Appendix 1. The assistance program for 2020 is in Appendix 4. The indicative list of knowledge publications and events for 2021 is in Appendix 5.

III. SUMMARY OF CHANGES TO LENDING AND NONLENDING PROGRAMS 6. Agriculture, natural resources, and rural development. Food security and investments in rural livelihoods will be thrust areas because of COVID-19. The Agricultural Productivity Improvement Project in 2021 will increase farm productivity by market access. The Flood and Riverbank Erosion Risk Management Investment Program (Phase 2) will be prioritized in 2020. 7. Education and health. ADB will move from financing traditional primary and secondary education to next-generation digital education. Tertiary education and skills development will be linked with employment creation. The COVID-19 Response Emergency Assistance (Health) was added in 2020 to strengthen medical infrastructure in response to the pandemic. 8. Energy. The focus will be on renewable energy, rural electrification, energy efficiency, facilitating uninterrupted power supply, reforms, and private investment. The Renewable Energy Project was moved to 2021, the 400-kilovolt Payra–Goplaganj–Aminbazar Transmission System Project to 2022, and the Installation of Smart Prepayment Meter to 2023. 9. Finance and public sector management. The support for economic recovery will be continued. The 2021 pipeline includes the Second Program for Mitigating Medium- and Long-Term Economic and Social Impact of COVID-19 and a microenterprise development project. 10. Transport. Priority will be given to improve access to markets by reducing transport and logistics costs, focusing on developing corridors to promote trade, ease congestion, and improve safety. The South Asia Subregional Economic Cooperation (SASEC) Tongi–Akhaura Dual Gauge Project, SASEC Dhaka–Sylhet Corridor Road Project, and SASEC Trade Facilitation Sector Development Project were moved to 2021. The SASEC Dhaka–Northwest Corridor Road Project (Phase 2) (tranche 3) was moved to 2022, and its Phase 3 (tranche 1) to 2023. 11. Water and other urban infrastructure and services. Increased support will be provided for climate-resilient, green, and livable towns (including secondary and coastal towns). The Khulna Sewerage System Development Project was moved to 2020, the Dhaka Integrated Water Supply Project (additional financing) to 2021, the Secondary Towns Water Supply and Sanitation Project to 2022, and the Narayanganj Urban Development Project to 2023.

5 Includes overprogramming for $572.5 million of OCR ($500 million from ADB’s COVID-19 Pandemic Response

Option) and $73.7 million of COL resources above resources available for commitment. The firm lending pipeline includes prioritized projects totaling $5.0 million in 2021 and $3.0 million in 2022 in ADF grant financing from the ADF 13 thematic pool, subject to the outcome of the succeeding project selection and prioritization process.

Appendix 1 3

COUNTRY ASSISTANCE RESULTS AREAS

Key Country Development Outcomes that ADB Contributes to

ADB

Key Areas of Assistance

Indicative Resources Available for Commitment in

2021–2023 Changes from Last COBP 1. Agriculture, Natural Resources, and Rural Development (CPS priority area: Improving Rural Livelihoods) Higher agricultural productivity Climate and disaster resilience enhanced Women’s participation in education and employment increaseda Rural livelihoods improved

Irrigation Water-based natural resources management Rural market infrastructure Better-managed flood control and riverbank erosion mitigation

Amount: $650 million ($70 million from regular OCR and $580 million from COL); cofinancing of $40 million Share of the COBP envelope: 10.9%b

Improved rural livelihoods was added as a key country development outcome. Better-managed flood control and riverbank erosion mitigation was reintroduced as a key area of assistance. Integrated water resources management and irrigation service delivery replaced by Irrigation and Water-based natural resources management. Rural infrastructure and Agro-industry, marketing and trade are now revised to Rural market infrastructure.

2. Education (CPS priority area: Improving Human Capital; and Promoting Gender Equality) Quality education, access to higher education, and skills for employment improved Science- and technology-focused education promoted Women’s participation in education and employment increased

Secondary education Tertiary education Technical and vocational education and training

Amount: $1,020 million (COL) Share of the COBP envelope: 17.2%b

Secondary education was reintroduced as a key area of assistance. Institutions for digital education, and Tertiary education in information technology are deleted as they are covered under Tertiary education. Skills, technical and vocational education is replaced by Technical and vocational education and training.

3. Health (CPS priority area: Improving Human Capital; and Promoting Gender Equality)

Greater access to quality health care, especially for women

Improved and inclusive health care Amount: $100 million (COL) Share of the COBP envelope: 1.7%b

No change from last year.

4 Appendix 1


ADB



2021–2023 Changes from Last COBP 4. Energy (CPS priority area: Easing Infrastructure Constraints)

Higher availability and reliability of, and enhanced access to, electricity Women’s participation in education and employment increaseda

Higher private sector investment

Electricity transmission, and distribution Energy efficiency and conservation Renewable energy generation Sector development and institutional reform

Amount: $750 million ($530 million from regular OCR and $220 million from COL) Share of the COBP envelope: 12.6%b

Higher private sector investment was added as a key country development outcome while Improved regional energy connectivity was dropped. Sector development and institutional reform was added as a key country development outcome while Regional energy connectivity was dropped.

5. Finance and Public Sector Management (CPS priority area: Creating Conditions for Greater Private Sector Participation; and Addressing Institutional Capacity Constraints and Improving Governance)

More inclusive finance sector Higher private investment Women’s participation in education and employment increaseda

Public sector organizational efficiency improved Accountability and transparency in public sector and proper use of public resources enhanced

Social protection initiatives Public expenditure and fiscal management Small and medium-sized enterprises finance and leasing Public–private partnership Money and capital markets

Amount: $850 million ($550 million from regular OCR and $300 million from COL) Share of the COBP envelope: 14.3%b

To jumpstart economic recovery after the COVID-19 pandemic-induced slowdown, Social protection initiatives and Public expenditure and fiscal management were added as key areas of assistance. Revenue administration improvement was dropped as a key area of public sector management assistance. Money and capital markets was added to include the issuance of local currency bonds. Microenterprise development was replaced by Small and medium-sized enterprise finance and leasing.

6. Transport (CPS priority area: Easing Infrastructure Constraints; Deepening Regional Cooperation and Integration; and Promoting Economic Corridor Development)

More efficient transport infrastructure and connectivity Environmentally sustainable transport system

Road transport (nonurban) Rail transport (nonurban)

Amount: $1,800 million ($1,700 million from regular OCR and $100 million from COL); cofinancing of $1,200 million

Improved road and rail safety was added as a key country development outcome. Regional road and rail connectivity development, Road and rail network

Appendix 1 5


ADB



2021–2023 Changes from Last COBP Regional transport connectivity improved Road and rail safety improved

Transport policies and institutional development Multimodal logistics Sustainable urban public transport system

Share of the COBP envelope: 30.3%b

expansion, and Railway capacity improvement were deleted as key areas of assistance, and merged to be covered under Road transport (nonurban) and Rail transport (nonurban). Seaport development as a key area of assistance was replaced by Multimodal logistics.

7. Water and Other Urban Infrastructure and Services (CPS priority area: Providing Climate and Disaster Resilient Infrastructure and Services) Urban infrastructure and services improved Climate-resilient, environment-friendly, green, and livable towns developed Women’s participation in education and employment increaseda

Urban water supply Urban sanitation Urban flood protection Other urban services

Amount: $768 million ($330 million from regular OCR, $430 million from COL and $8 million from ADF grants); cofinancing of $111 million Share of the COBP envelope: 12.9%b

A key country development outcome to develop Climate-resilient, environment-friendly, green, and livable towns was added to replace Enhanced climate and disaster resilience. Water and sanitation infrastructure was revised to Urban water supply and Urban sanitation. Urban growth centers and infrastructure for economic development was changed to Other urban services.

ADB = Asian Development Bank, ADF = Asian Development Fund, COBP = country operations business plan, COL = concessional OCR lending, COVID-19 = coronavirus disease, CPS = country partnership strategy, OCR = ordinary capital resources. a Consistent with the gender-related key outcomes in the CPS results framework, ADB assistance pursues women’s participation in sector-related decision-making

processes and structures, and in livelihood and employment opportunities. b Sector shares for the total pipeline, including standby projects, are agriculture, natural resources, and rural development (11.7%); education (11.0%); health (1.8%);

energy (9.5%); finance and public sector management (13.1%); transport (37.6%); water and other urban infrastructure and services (15.3%). c ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific. Manila. Source: Asian Development Bank estimates.


6 Appendix 2

LIST OF LINKED DOCUMENTS http://www.adb.org/Documents/COBP/?id=BAN-2021

1. Portfolio at a Glance: Bangladesh

http://www.adb.org/Documents/COBP/?id=BAN-2021

Appendix 3 7

INDICATIVE ASSISTANCE PIPELINE

Table A3.1: Lending Products, 2021–2023

Project/Program Namea Sector Poverty

Targeting Operational

Priority Division

Year of

TRTA/ PRF

Cost ($ million)

Total

ADB

Gov’t Co-

finance Regular

OCR COL ADF

Grants Total 2021 Firm Climate and Disaster

Resilient Small-Scale Water Resources Management Projectb

ANR GI OP1/OP3/ OP5

SAER 2019 180.0 0.0 100.0 0.0 100.0 40.0 40.0

Agriculture Productivity Improvement Project

ANR GI OP1/OP5/ OP6

SAER 2021 TBD 0.0 200.0 0.0 200.0 TBD 0.0

Strengthening Agricultural Tertiary Education Project

EDU GI OP1/OP2/ OP6

SAHS 2019 TBD 0.0 150.0 0.0 150.0 TBD 0.0

Second Skills for Employment Project – (Phase 1) (RBL)

EDU GI OP1/OP2 SAHS 2020 TBD 0.0 300.0 0.0 300.0 TBD 0.0

Bangladesh Renewable Energy Project

ENE GI OP1/OP3 SAEN 2020 TBD 100.0 50.0 0.0 150.0 TBD 0.0

Mitigating Medium- and Long-Term Economic and Social Impact of COVID-19 (second program) (PBL)c

PSM GI OP1/OP6 SAPF TBD 500.0 0.0 0.0 500.0 TBD 0.0

SASEC Integrated Trade Facilitation Sector Development Program (SDP)

TRA/ IND

GI OP1/OP7 SARC 2019 TBD 100.0 100.0 0.0 200.0 TBD 0.0

SASEC Tongi–Akhaura Dual Gauge Projectd

TRA GI OP1/OP7 SATC 2015 TBD 200.0 0.0 0.0 200.0 TBD 600.0

SASEC Dhaka–Sylhet Corridor Road Project (tranche 1)

TRA TI-G OP1/OP7 SATC 2015 TBD 400.0 0.0 0.0 400.0 TBD 0.0

Dhaka Environmentally Sustainable Water Supply Project (additional financing)e

WUS TI-G OP1/OP4/ OP6

SAUW TBD 130.0 50.0 5.0 185.0 TBD 111.0f

Total TBD 1,430.0 950.0 5.0 2,385.0 TBD 751.0

8 Appendix 3



Priority Division

Year of

TRTA/ PRF

Cost ($ million)

Total

ADB

Gov’t Co-

finance Regular

OCR COL ADF

Grants Total

2021 Standby Climate-Resilient Livelihood

Improvement and Watershed Management in Chattogram Hill Tracts Project

ANR TI-G OP1/OP2/ OP5

SAER 2020 125.0 0.0 100.0 0.0 100.0 25.0 0.0

Low-Cost Diversified Agricultural Credit Program

ANR GI OP1/OP5/ OP6

SAER 2021 TBD 0.0 100.0 0.0 100.0 TBD 0.0

Scaling Up Energy Efficiency and Conservation Project

ENE GI OP1/OP3/ OP6

SAEN 2020 TBD 75.0 75.0 0.0 150.0 TBD 0.0

Expansion and Strengthening of Electrical Infrastructure in DESCO Area

ENE GI OP1/OP3/ OP4

SAEN 2020 TBD 160.0 0.0 0.0 160.0 TBD 0.0

Green Infrastructure Bonds FIN GI OP1/OP3 SAPF 2022 TBD 100.0 0.0 0.0 100.0 TBD 0.0 Strengthening of the

Banking Sector Program (PBL)

FIN GI OP1/OP6 SAPF 2021 TBD 100.0 0.0 0.0 100.0 TBD 0.0

Small and Medium-Sized Enterprises Development Program (additional financing)

FIN GI OP1/OP2/ OP6

SAPF TBD 0.0 200.0 0.0 200.0 TBD 0.0

Second Microenterprise Development Project


SASEC South Corridor Improvement Project (Daulatdia–Faridpur–Barishal) (Phase 1) (tranche 1)


SASEC Chattogram Port Access Road Improvement Project


Chattogram Water Supply Project


SAUW TBD 150.0 50.0 0.0 200.0 TBD 0.0

Appendix 3 9



Priority Division

Year of

TRTA/ PRF

Cost ($ million)

Total

ADB

Gov’t Co-

finance Regular

OCR COL ADF

Grants Total Piloting of Online

Continuous Effluent Monitoring System for Surface Water Quality Improvement in Dhaka Watershed

WUS GI OP3/OP4 SAUW TBD 0.0 10.0 0.0 10.0 TBD 0.0

Total TBD 1,135.0 635.0 0.0 1,770.0 TBD 0.0 2022 Firm Climate-Resilient Livelihood

Improvement and Watershed Management in Chattogram Hill Tracts Project

ANR TI-G OP1/OP2/ OP5

SAER 2020 TBD 0.0 100.0 0.0 100.0 TBD 0.0

Ganges–Kobadak Irrigation Project

ANR GI OP1/OP3 SAER 2016 TBD 0.0 180.0 0.0 180.0 TBD 0.0

Digital University Development Project


Support for Health Care Improvement Project

HLT GI OP1/OP2 SAHS 2021 TBD 0.0 100.0 0.0 100.0 TBD 0.0

400-Kilovolt Payra–Gopalganj–Aminbazar Transmission System Project

ENE GI OP1/OP4 SAEN 2020 TBD 250.0 0.0 0.0 250.0 TBD 0.0

Southwest Region Small and Medium-Sized Enterprises Development Facility


Development of Dhirasram Inland Container Depot Project


SASEC Laksam–Chattogram Dual Gauge Railway Projectg


Second Coastal Towns Environmental Infrastructure Improvement Projecth


SAUW TBD 50.0 150.0 3.0 203.0 TBD 0.0

10 Appendix 3



Priority Division

Year of

TRTA/ PRF

Cost ($ million)

Total

ADB

Gov’t Co-

finance Regular

OCR COL ADF

Grants Total Secondary Towns Water

Supply and Sanitation Project


SAUW 2019 TBD 50.0 100.0 0.0 150.0 TBD 0.0

Total TBD 800.0 900.0 3.0 1,703.0 TBD 600.0

2022 Standby Supporting Education for

Children with Special Needs


Innovations in Tertiary Education for Competitiveness in Garments and Textiles Project


Startup Venture Capital Fund

FIN GI OP1 SAPF TBD 0.0 50.0 0.0 50.0 TBD 0.0

SASEC Dhaka–Northwest Corridor Road Project (Phase 2) (tranche 3)

TRA TI-G OP1/OP7 SATC TBD 330.0 0.0 0.0 330.0 TBD 0.0

SASEC Railway Connectivity Dhaka-Comilla Chord-line Project (Phase 1) (tranche 1)

TRA GI OP1/OP7 SATC TBD 300.0 0.0 0.0 300.0 TBD 0.0

SASEC Chittagong-Cox's Bazar Railway Project – (Phase 1) (tranche 3)

TRA GI OP1/OP7 SATC TBD 500.0 0.0 0.0 500.0 TBD 0.0

Dhaka Sewerage System Development Project

WUS TI-G OP1/OP4 SAUW TBD 250.0 50.0 0.0 300.0 TBD 0.0

Integrated Urban Development Project (RBL)


Total TBD 1,580.0 400.0 0.0 1,980.0 TBD 0.0 2023 Firm Market and Value Chain

Infrastructure Development Project

ANR GI OP1/OP5 SAER 2021 TBD 70.0 0.0 0.0 70.0 TBD 0.0

Second Skills for Employment Program (Phase 2) (RBL)


Appendix 3 11



Priority Division

Year of

TRTA/ PRF

Cost ($ million)

Total

ADB

Gov’t Co-

finance Regular

OCR COL ADF

Grants Total NextGen Secondary

Education Program EDU GI OP1/OP2 SAHS 2022 TBD 0.0 250.0 0.0 250.0 TBD 0.0

Renewable Energy Development and Efficiency Improvement Project

ENE GI OP1/OP3/ OP4

SAEN 2020 TBD 80.0 70.0 0.0 150.0 TBD 0.0

Installation of Smart Meters Under Rural Electrification Project

ENE GI OP1/OP3/ OP4

SAEN 2023 TBD 100.0 100.0 0.0 200.0 TBD 0.0

Innovative Project Financing Facility


SASEC Dhaka–Sylhet Road Project (Phase 1) (tranche 2)


Road Safety Improvement Program (RBL)

TRA GI OP1/OP5/ OP6

SATC 2021 TBD 100.0 0.0 0.0 100.0 TBD 0.0

Narayanganj Urban Development Project

WUS TI-G OP1/OP4 SAUW 2019 TBD 0.0 80.0 0.0 80.0 TBD 0.0

Third City Region Development Project


Total TBD 950.0 900.0 0.0 1,850.0 TBD 0.0 2023 Standby Promoting Rural and

Cottage Industry ANR GI OP1/OP5 SAER 2022 TBD 0.0 50.0 0.0 50.0 TBD 0.0

Rural Roads Project (RBL) ANR GI OP1/OP5 SAER TBD 0.0 400.0 0.0 400.0 TBD 0.0 Infrastructure Leasing

Company FIN GI OP1 SAPF TBD 50.0 0.0 0.0 50.0 TBD 0.0

Urban Primary Health Program

HLT GI OP1/OP6 SAHS 2021 TBD 0.0 100.0 0.0 100.0 TBD 0.0

Dhaka Mass Rapid Transit Development Project (Line 5, Southern Route)


SASEC Dhaka–Northwest Corridor Road Project (Phase 3) (tranche 1)


Dhaka Integrated Water Supply Project


Total TBD 850.0 570.0 0.0 1,420.0 TBD 0.0

12 Appendix 3

ADB = Asian Development Bank; ADF = Asian Development Fund; ANR = agriculture, natural resources, and rural development; COL = concessional OCR lending; COVID-19 = coronavirus disease; DESCO = Dhaka Electric Supply Company Limited; EDU = education; ENE = energy; FIN = finance; GI = general intervention; Gov’t = government; HLT= health; IND = industry and trade; OCR = ordinary capital resources; OP1 = addressing remaining poverty and reducing inequalities; OP2 = accelerating progress in gender equality; OP3 = tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; OP4 = making cities more livable; OP5 = promoting rural development and food security; OP6 = strengthening governance and institutional capacity; OP7 = fostering regional cooperation and integration; PBL = policy-based lending; PRF = project readiness financing; PSM = public sector management; RBL = results-based lending; SAEN = Energy Division, South Asia Department; SAER = Environment, Natural Resources, and Agriculture Division, South Asia Department; SAHS = Human and Social Development Division, South Asia Department; SAPF = Public Management, Financial Sector, and Trade Division, South Asia Department; SARC = Regional Cooperation and Operations Coordination Division, South Asia Department; SASEC = South Asia Subregional Economic Cooperation; SATC = Transport and Communications Division, South Asia Department; SAUW = Urban Development and Water Division, South Asia Department; SDP = sector development program; TBD = to be determined; TI-G = targeted intervention—geographic dimensions of inclusive growth; TRA = transport; TRTA = transaction technical assistance; WUS = water supply and other urban infrastructure and services. a Given the provisional nature of the indicative lending program, the composition of lending instruments in the actual loan delivery may change. All PBL operations

will be subject to resource availability and available headroom. b $40 million cofinancing from the International Fund for Agricultural Development. c Proposed to be financed from ADB’s COVID-19 Pandemic Response Option (refer to footnote 5 of the main text). d $600 million cofinancing from Asian Infrastructure Investment Bank and European Investment Bank. e The project was prioritized for financing from the ADF 13 thematic pool grants. f $111 million cofinancing from Agence Française de Développement. g $600 million cofinancing source to be determined. h The project will be proposed for ADF 13 thematic pool financing, through the disaster risk reduction–climate change adaptation strategic area, subject to the

outcome of a project selection and prioritization process. Source: Asian Development Bank estimates.

Appendix 3 13

Table A3.2: Nonlending Products and Services, 2021–2023

Assistance Name Sector Division Assistance

Type

Sources of Funding ADB Others

Total ($'000) Source

Amount ($'000) Source

Amount ($'000)

2021 Preparing for Agricultural Productivity

Improvement Project ANR SAER TRTA TASF 1,000.0 0.0 1,000.0

Preparing for Education for Children with Special Needs Project

EDU SAHS TRTA TASF 500.0 0.0 500.0

Support to Technical Education and Skills Development (supplementary)

EDU SAHS F-TRTA TASF 500.0 0.0 500.0

Strengthening Mobile Financial Services for Social Safety Net

FIN SAPF KSTA TASF 500.0 0.0 500.0

Supporting COVID-19 Active Response Program (supplementary)

FIN BRM TRTA TASF 1,000.0 0.0 1,000.0

Preparation of Second Microenterprise Development Project

FIN BRM TRTA TASF 500.0 0.0 500.0

Preparing for Health Care Improvement Project

HLT SAHS F-TRTA TASF 500.0 0.0 500.0

Safety Improvement of Railway Crossings and Bridges

TRA SATC TRTA TASF 1,000.0 0.0 1,000.0

Update of Revised Strategic Transport Plan of Dhaka

TRA SATC TRTA TASF 1,500.0 JFPR 2,000.0 3,500.0

Support to Dhaka–Sylhet Corridor Road Project

TRA SATC TRTA TASF 1,000.0 0.0 1,000.0

Strengthening Safety and Institutional Capacity Building in Road Sector

TRA SATC TRTA TASF 1,000.0 JFPR 2,000.0 3,000.0

Preparing the SASEC Integrated Trade Facilitation Sector Development Program (supplementary)

TRA/IND SARC TRTA TASF 1,000.0 0.0 1,000.0

Support for Secondary Towns Water Supply and Sanitation Project

WUS SAUW TRTA TASF 500.0 TBD 500.0 1,000.0

Support for Protecting Meghna River WUS SAUW TRTA TASF 500.0 TBD 1,500.0 2,000.0 Support to Livelihood Improvement of

Displaced People WUS BRM TRTA TASF 1,000.0 0.0 1,000.0

Promoting Knowledge-Oriented Development MUL BRM KSTA TASF 1,000.0 TBD 500.0 1,500.0 Total

13,000.0 6,500.0 19,500.0

2022 Preparing Ganges Kobadak Irrigation Project ANR SAER TRTA TASF 500.0 0.0 500.0

14 Appendix 3


Type




Amount ($'000)

Spreading Equitable Development in the Countryside

ANR BRM TRTA TASF 1,500.0 0.0 1,500.0

Support to Tertiary Education Program EDU SAHS TRTA TASF 500.0 JFPR 1,500.0 2,000.0 Support to NextGen Secondary Education

Program EDU SAHS TRTA TASF 500.0 0.0 500.0

Promoting Reforms in the Energy Sector ENE SAEN KSTA TASF 1,000.0 0.0 1,000.0 Support for Innovative Financing Facility FIN BRM TRTA TASF 1,000.0 TBD 1,000.0 2,000.0 Development of Multimodal Logistics Plan for

Bangladesh TRA SATC TRTA TASF 1,000.0 0.0 1,000.0

High-Technology Application Study in Transport Sector

TRA SATC TRTA TASF 1,000.0 TBD 1,000.0 2,000.0

Supporting North East Economic Corridor TRA BRM TRTA TASF 1,500.0 0.0 1,500.0 Capacity Building for Improving Portfolio

Performance (supplementary) PSM BRM KSTA TASF 1,000.0 TBD 1,000.0 2,000.0

Strengthening Urban Utilities and Cost Recovery

WUS SAUW TRTA TASF 500.0 UCCRTF 500.0 1,000.0

Supporting Delta Plan Investments WUS BRM TRTA TASF 1,500.0 0.0 1,500.0 Total

11,500.0 5,000.0 16,500.0

2023 Support to Agriculture Modernization and

Market Value Chain Development ANR SAER TRTA TASF 1,000.0 0.0 1,000.0

Support to Education Sector Development EDU SAHS F-TRTA TASF 1,000.0 0.0 1,000.0 Sustainable and Resilient Energy Sector

Facility in Bangladesh (supplementary) ENE SAEN F-TRTA TASF 1,000.0 TBD 900.0 1,900.0

Strengthening Digitization and Business Process Improvement in the Financial Sector

FIN SAPF KSTA TASF 1,000.0 0.0 1,000.0

Promoting Access to Credit and Developing Small and Medium-Sized Enterprises Credit Rating Agency

FIN SAPF KSTA TASF 1,000.0 0.0 1,000.0

Preparing for Health Care Improvement Project (supplementary)

HLT SAHS F-TRTA TASF 1,000.0 TBD 1,000.0 2,000.0

Environment Strategy for Transport Sector TRA SATC TRTA TASF 800.0 TBD 1,000.0 1,800.0 Support for Railway Sector Reforms TRA SATC TRTA TASF 1,000.0 0.0 1,000.0 Support for Integrated Urban Development

Project WUS SAUW TRTA TASF 800.0 TBD 1,000.0 1,800.0

Enhancing Climate Resilience in ADB-Supported Projects

MUL BRM KSTA TASF 1,000.0 WFPF 1,000.0 2,000.0

Support for Knowledge Management MUL BRM KSTA TASF 1,500.0 0.0 1,500.0 Total 11,100.0 4,900.0 16,000.0

Appendix 3 15

ADB = Asian Development Bank; ANR = agriculture, natural resources, and rural development; BRM = Bangladesh Resident Mission, South Asia Department; COVID-19 = coronavirus disease; EDU = education; ENE = energy; FIN = finance; F-TRTA = transaction technical assistance facility; HLT = health; IND = industry and trade; JFPR = Japan Fund for Poverty Reduction; KSTA = knowledge and support technical assistance; MUL = multisector; PSM = public sector management; SAEN = Energy Division, South Asia Department; SAER = Environment, Natural Resources, and Agriculture Division, South Asia Department; SAHS = Human and Social Development Division, South Asia Department; SAPF = Public Management, Financial Sector, and Trade Division, South Asia Department; SARC = Regional Cooperation and Operations Coordination Division, South Asia Department; SASEC = South Asia Subregional Economic Cooperation; SATC = Transport and Communications Division, South Asia Department; SAUW = Urban Development and Water Division, South Asia Department; TASF = Technical Assistance Special Fund; TBD = to be determined; TRA = transport; TRTA = transaction technical assistance; UCCRTF = Urban Climate Change Resilience Trust Fund under the Urban Financing Partnership Facility; WFPF = Water Financing Partnership Facility; WUS = water supply and other urban infrastructure and services. Source: Asian Development Bank estimates.

16 Appendix 4

ASSISTANCE PROGRAM FOR CURRENT YEAR

Table A4.1: Lending Products, 2020


Targeting Priority

Area Division

Year of

TRTA/ PRF

Cost ($ million) ADB

Total Regular

OCR COL ADF

Grants Total Gov’t Co-

finance 2020 Firm Rural Connectivity

Improvement Project (additional financing)

ANR GI OP1/OP5 SAER 2017 163.9 0.0 100.0 0.0 100.0 63.9 0.0

Irrigation Management Improvement Project (additional financing)

ANR GI OP1/OP3 SAER 2012 14.8 0.0 13.5 0.0 13.5 1.3 0.0

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

ANR GI OP1/OP3/ OP5

SAER 2012 385.0 0.0 197.0 0.0 197.0 178.0 10.0

Improving Computer and Software Engineering Tertiary Education Project

EDU GI OP1/OP2 SAHS 2016 130.0 0.0 100.0 0.0 100.0 30.0 0.0

Bangladesh Power System Enhancement and Efficiency Improvement Project (additional financing)

ENE GI OP1/OP2/ OP3

SAEN 2019 313.5 70.0 130.0 0.0 200.0 113.5 0.0

COVID-19 Active Response and Expenditure Support Programc

FIN GI OP1/OP2 SAPF 2020 750.0 250.0 250.0 0.0 500.0 0.0 250.0

Strengthening Bangladesh Infrastructure Finance Fund Limited

FIN GI OP1 SAPF 2020 50.0 50.0 0.0 0.0 50.0 0.0 0.0

Microenterprise Development Project (additional financing)

FIN GI OP1/OP2/ OP5

BRM 2020 TBD 0.0 50.0 0.0 50.0 TBD 0.0

Post-COVID-19 Small Scale Employment Creation Fund

FIN GI OP1/OP2/ OP5

SAPF 2020 TBD 0.0 150.0 0.0 150.0 TBD 0.0

Appendix 4 17


Targeting Priority

Area Division

Year of

TRTA/ PRF


Total Regular

OCR COL ADF


finance Mitigating Medium- and

Long-Term economic and Social Impact of COVID-19 (PBL)


Support to Finance Compensation Package for Frontline COVID-19 Response Workers


COVID-19 Response Emergency Assistance

HLT GI OP1/OP2 SAHS 113.4 0.0 100.0 0.0 100.0 13.4 0.0

SASEC Dhaka–Northwest Corridor Project (Phase 2) (tranche2)d

TRA TI-G OP1/OP7 SATC 505.7 406.1 0.0 0.0 406.1 99.6 0.0

Transport Connectivity Improvement Preparatory Facility (PRF)

TRA GI OP1 SATC 57.2 0.0 42.0 0.0 42.0 15.2 0.0

Khulna Sewerage System Development Project

WUS TI-G OP1/OP4 SAUW 2015 275.0 50.0 110.0 0.0 160.0 115.0 0.0

Total TBD 1,326.1 1,342.5 0.0 2,668.6 TBD 260.0

2020 Standby Agriculture Productivity

Improvement Project ANR GI OP1/OP5/

OP6 SAER 2021 TBD 0.0 200.0 0.0 200.0 TBD 0.0

Low-Cost Diversified Agricultural Credit Program

ANR GI OP1/OP5/ OP6

SAER 2021 TBD 0.0 100.0 0.0 100.0 TBD 0.0

Strengthening Agricultural Tertiary Education Project

EDU GI OP1/OP2/ OP6

SAHS 2019 150.0 0.0 150.0 0.0 150.0 0.0 0.0

Third Public–Private Infrastructure Development Facility (tranche 2)

FIN GI OP1 SAPF TBD 250.0 16.0 0.0 266.0 TBD 0.0

Strengthening of the Banking Sector (PBL)


18 Appendix 4


Targeting Priority

Area Division

Year of

TRTA/ PRF


Total Regular

OCR COL ADF


finance SASEC Dhaka–Sylhet

Corridor Road Project (tranche 1)

TRA TI-G OP1/OP7 SATC 2015 394.7 300.0 0.0 0.0 300.0 94.7 0.0

SASEC Tongi–Akhaura Dual Gauge Projecte

TRA GI OP1/OP7 SATC 2015 1,115.8 200.0 0.0 0.0 200.0 315.8 600.0

SASEC Integrated Trade Facilitation Sector Development Program (SDP)

TRA/ IND

GI OP1/OP7 SARC 2019 TBD 100.0 100.0 0.0 200.0 TBD 0.0

Livelihood Improvement of Displaced People (grant)f

WUS GI OP1/OP2 BRM TBD 0.0 0.0 100.0 100.0 TBD 0.0

Total TBD 950.0 597.3 100.0 1,647.3 TBD 600.0 ADB = Asian Development Bank; ADF = Asian Development Fund; ANR = agriculture, natural resources, and rural development; BRM = Bangladesh Resident Mission, South Asia Department; COL = concessional OCR lending; COVID-19 = coronavirus disease; EDU = education; ENE = energy; FIN = finance; GI = general intervention; Gov’t = government; HLT = health; IND = industry and trade; OCR = ordinary capital resources; OP1 = addressing remaining poverty and reducing inequalities; OP2 = accelerating progress in gender equality; OP3 = tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; OP4 = making cities more livable; OP5 = promoting rural development and food security; OP6 = strengthening governance and institutional capacity; OP7 = fostering regional cooperation and integration; PBL = policy-based lending; PRF = project readiness financing; SAEN = Energy Division, South Asia Department; SAER = Environment, Natural Resources, and Agriculture Division, South Asia Department; SAHS = Human and Social Development Division, South Asia Department; SAPF = Public Management, Financial Sector, and Trade Division, South Asia Department; SARC = Regional Cooperation and Operations Coordination Division, South Asia Department; SASEC = South Asia Subregional Economic Cooperation; SATC = Transport and Communications Division, South Asia Department; SAUW = Urban Development and Water Division, South Asia Department; SDP = sector development program; TBD = to be determined; TI-G = targeted intervention—geographic dimensions of inclusive growth; TRA = transport; TRTA = transaction technical assistance; WUS = water and other urban infrastructure and services. a Given the provisional nature of the indicative lending program, the composition of lending instruments in the actual loan delivery may change. All PBL operations

will be subject to resource availability and available headroom. Investment lending accounted for 90.8% of sovereign lending commitments in 2017–2019, while conventional PBL was 0% and results-based lending was 9.2%.

b $10 million is likely to be received as a grant from the Government of the Netherlands. c $250 million cofinancing from the Asian Infrastructure Investment Bank. d This loan was denominated in euro, so the United States dollar amount fluctuates marginally. e $600 million cofinancing from the Asian Infrastructure Investment Bank and European Investment Bank. f The government requested grant funding for the second phase of the special emergency assistance grant support, approved in 2018. Source: Asian Development Bank estimates.

Appendix 4 19

Table A4.2: Nonlending Products and Services, 2020


Type




Amount ($'000)

Climate and Disaster-Resilient Small-Scale Water Resources Management Project

ANR SAER TRTA TASF 500.0 WFPF 750.0 1,250.0

Climate-Resilient Livelihood Improvement and Watershed Management in Chattogram Hill Tracts Project

ANR SAER TRTA TASF 500.0 WFPF 500.0 1,000.0

Supporting Technical Education and Skills Development Facility


Improving Secondary Education Sector Management (supplementary)


Support to Quality Enhancement in Primary Education

EDU SAHS TRTA TASF 0.0 JFPR 1,200.0 1,200.0

Sustainable and Resilient Energy Sector Facility in Bangladesh

ENE SAEN F-TRTA TASF 1,000.0 0.0 1,000.0

Capacity Development to Bangladesh Infrastructure Finance Fund Limited

FIN SAPF TRTA TASF 0.0 FSDPSF 650.0 650.0

COVID-19 Active Response and Expenditure Support Program (attached)

FIN SAPF TRTA TASF 1,000.0 0.0 1,000.0

Support for Microenterprise Development (additional financing) (attached)

FIN BRM TRTA TASF 500.0 0.0 500.0

Supporting COVID-19 Response Emergency Assistance Project

HLT SAHS TRTA TASF 1,000.0 0.0 1,000.0

Water Quality Improvement in Dhaka Watershed

WUS BRM TRTA TASF 500.0 0.0 500.0

Business Process Reengineering for Government of Bangladesh

MUL BRM KSTA TASF 500.0 0.0 500.0

Project Results Enhancement Facility MUL BRM KSTA TASF 500.0 0.0 500.0 Total 7,000.0 3,100.0 10,100.0

ADB = Asian Development Bank; ANR = agriculture, natural resources, and rural development; BRM = Bangladesh Resident Mission, South Asia Department; COVID-19 = coronavirus disease; EDU = education; ENE = energy; FIN = finance; F-TRTA = transaction technical assistance facility; FSDPSF= Financial Sector Development Partnership Special Fund; HLT = health; JFPR = Japan Fund for Poverty Reduction; KSTA = knowledge and support technical assistance; MUL = multisector; SAEN = Energy Division, South Asia Department; SAER = Environment, Natural Resources, and Agriculture Division, South Asia Department; SAHS = Human and Social Development Division, South Asia Department; SAPF = Public Management, Financial Sector, and Trade Division, South Asia Department; TASF = Technical Assistance Special Fund; TRTA = transaction technical assistance; WFPF = Water Financing Partnership Facility; WUS = water supply and other urban infrastructure and services. Source: Asian Development Bank estimates.

20 Appendix 5

INDICATIVE KNOWLEDGE PRODUCTS AND EVENTS

Table A5.1: Knowledge Products and Events for 2021

Title of Publication or Event Subject Type

Department or Sector Group or Thematic Group Funding Source

Asian Development Outlook 2021 Economics Publication or documentation

ERCD

Asian Development Outlook 2021 Update Economics Publication or documentation

ERCD

Asian Development Outlook 2021 Supplement (two issues) Economics Publication or documentation

ERCD

Asian Economic Integration Report 2021 Regional cooperation and integration

Publication or documentation

ERCD TA 0035-REG

Bangladesh Economic Indicators Update (six issues) Economics Database SARD Asian Development Bank and Bangladesh: Fact Sheet 2020 Economics and

governance Publication or documentation

DOC, SARD

Key Indicators for Asia and the Pacific 2021 Economics Publication or documentation

ERCD TA 0043-REG

Khulna: Taking a Sustainable and Holistic Approach to Water Supply

Water Publication or documentation

SARD TA 9050-REG

Asian Development Outlook 2021—Launch and Dissemination Economics Event organization SARD Asian Development Outlook 2021 Update—Launch and

Dissemination Economics Event organization SARD

Workshop on Revitalizing the Agriculture Sector Agriculture Event organization SARD TA 9602-BAN Regional Workshop on Improving Business Climate Private sector Event organization SARD TA 9602-BAN Workshop on Powering Growth through Knowledge, Innovation and

Technology Economics Event organization SARD TA 9602-BAN

Workshop on Leading Change by Connecting Communities, Youth, and Women

Social development and protection

Event organization SARD TA 9602-BAN

Workshop on Seamless Cross Border Trade Regional cooperation and integration


Total number of publications = 8 Total number of events = 7

BAN = Bangladesh; DOC = Department of Communications; ERCD = Economic Research and Regional Cooperation Department; REG = regional; SARD = South Asia Department; TA = technical assistance. Source: Asian Development Bank.

Appendix 5 21

Table A5.2: Additional Knowledge Products and Events Delivered in 2020

Title of Publication or Event Subject Type

Department or Sector Group or Thematic Group Funding Source

COVID-19 Impact on Job Openings: Real-Time Assessment using Bangladesh and Sri Lanka Job Portals

Economics Publication or documentation

SARD TA 9231-REG

SASEC Operational Plan 2016–2025 Update Regional cooperation and integration

Publication or documentation

SARD TA 9231-REG

ADB COVID-19 Policy Database Economics Database ERCD TA 9921-REG Study on Routes Initiative: Dhaka to Kolkata Route Industry and trade Publication or

documentation SARD TA 9578-REG

Monetary Policy Mechanism in Bangladesh Economy Economics Publication or documentation

SARD TA 9602-BAN

Harmonizing Urban Development in Bangladesh Urban development Publication or documentation

SARD TA 9602-BAN

Environmental and Social Safeguards Training for Executing and Implementing Agencies

Capacity development


Workshop on Reporting and Monitoring Gender Equality Results in Project Operations for Executing and Implementing Agencies

Capacity development


Procurement Clinics for New Procurement Framework Capacity development

Event organization PPFD, SARD TA 9560-BAN

Training Program for Economic Forecasting for Bangladesh Bank Capacity development


Workshop on Northeast Bangladesh Economic Corridor Development

Industry and trade Event organization SARD TA 9602-BAN

Workshop on Improving Cost of Doing Business Private sector Event organization SARD TA 9602-BAN Business Opportunities Seminar Private sector Event organization SARD TA 9560-BAN

Total number of publications = 6 Total number of events = 7

ADB = Asian Development Bank; BAN = Bangladesh; COVID-19 = coronavirus disease; ERCD = Economic Research and Regional Cooperation Department; PPFD = Procurement, Portfolio, and Financial Management Department; REG = regional; SARD = South Asia Department; SASEC = South Asia Subregional Economic Cooperation; TA = technical assistance. Source: Asian Development Bank.

22 Appendix 5

Table A5.3: Innovation, Advanced Technology, and Pilot Initiatives to be Implemented in 2020 and 2021

Item Nature Project Number

Sector or Theme Division

Financial technology and mobile financial services for direct service delivery to genuine

beneficiaries: COVID-19 Active Response and Expenditure Support Program TCH 54180-001 FIN BRM

Grid-connected solar power: Bangladesh Renewable Energy Project TCH ENE SAEN Omni processor for integrated solid waste management: Livelihood Improvement of

Displaced People (grant) TCH WUS BRM

Lightening arrestors: Livelihood Improvement of Displaced People (grant) TCH WUS BRM Use of advanced signaling facilitating for enhanced safety: SASEC Tongi-Akhaura Dual

Gauge Railway Project TCH 44142-016

TRA SATC

Use of the electronic cargo tracking system for cargo in international and inland transit and non-intrusive inspections at land customs stations: SASEC Integrated Trade Facilitation Sector Development Program

TCH/PLT TRA SARC

Use of SCADA systems and comprehensive GIS databases linked with computerized hydraulic models for better operations management: Khulna Sewerage System Development Project

TCH 49329-007 WUS SAUW

Use of polymer modified bitumen for pavements: SASEC Dhaka-Sylhet Corridor Road Project

TCH 53382-001 TRA SATC

Competitive research grant to foster interdisciplinary research for digital technology applications; increase startup opportunities; and open online courses for capacity development of academic staff: Improving Computer and Software Engineering Tertiary Education Project and Strengthening Agricultural Tertiary Education Project

Use of environment-friendly jute mattress filled with grout instead of concrete blocks, and vetiver plantation as bioengineering, to stabilize riverbanks. Use of drones to drop geobags and conduct resettlement surveys: Flood and Riverbank Erosion Risk Management Investment Program (tranche 2)

PLT

TCH/PLT

50140-002 53378-001

44167-015

EDU

ANR

SAHS

SAER

Total number of innovation, advanced technology, and pilot initiatives = 10

ANR = agriculture, natural resources, and rural development; BRM = Bangladesh Resident Mission, South Asia Department; COVID-19 = coronavirus disease; EDU = education; ENE = energy; FIN = finance; GIS = geographic information system; PLT = pilot initiative; SAEN = Energy Division, South Asia Department; SAER = Environment, Natural Resources, and Agriculture Division, South Asia Department; SAHS = Education Division, South Asia Department; SARC = Regional Cooperation Division, South Asia Department; SASEC = South Asia Subregional Economic Corridor; SATC = Transport Division, South Asia Department; SCADA = supervisory control and data acquisition; SAUW = Urban Development and Water Division, South Asia Department; TCH = advanced technology; TRA = transport; WUS = water and other urban infrastructure and services. Source: Asian Development Bank.

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