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  • Signing of Loan Agreement with Bangladesh: The largest scale of Japanese ODA assistance to date to further economic growth and overcome social vulnerabilities

Press Releases

December 14, 2015

Signing of Loan Agreement with Bangladesh: The largest scale of Japanese ODA assistance to date to further economic growth and overcome social vulnerabilities

photoSigning ceremony

On December 13, the Japan International Cooperation Agency (JICA) signed Japanese ODA loan agreements with the Government of the People’s Republic of Bangladesh in the capital of Dhaka to provide up to 133.265 billion yen for six projects.

Having approximately 160 million people, the eighth largest population in the world, Bangladesh has maintained an annual economic growth averaging six percent over the past 10 years through initiatives such as the development of the garment and textile industries. With a large labor force and a potentially large-scale market, Bangladesh has drawn attention in recent years from foreign countries, including Japan, as a newly emerging nation that could serve as a promising production base or investment location. However, the infrastructure required to provide a stable power supply and build road networks has not kept pace with the rapid economic growth and urbanization. Therefore, accelerating the building of infrastructure and the improvement of the investment environment are priorities for encouraging further economic growth. Other important challenges include economic disparities, which are expanding between urban and rural areas due to unequal access to social and government services, and the increasing damage caused by disasters in urban areas where buildings are vulnerable to natural disasters such as earthquakes. The six projects covered by these agreements will provide assistance to address these issues toward further economic growth and to overcome social vulnerabilities in Bangladesh.

The characteristics of the six projects are as follows.

(1) Encouraging industrial diversification and promoting economic growth by improving investment climate in Bangladesh

In recent years, Bangladesh has achieved more than 6 percent of annual economic growth for more than 10 years, and a main driver of the growth is the garment industry, which consists of 80 percent of the country’s exports. However, against a backdrop of fierce global competition and a lack of competitiveness in the industrial sectors, it will be more and more difficult for Bangladesh to achieve economic growth in a sustainable manner.

To overcome such obstacles, it is important for Bangladesh to promote foreign direct investment. This would help Bangladesh introduce new technology from overseas, nurture high value-added export-oriented enterprises and diversify its industries. However, issues that impede business operations in Bangladesh, such as limited access to financing, inadequate basic infrastructure, and complicated bureaucratic procedures, show that there is room for improvements in the investment climate considering the potential of the country.

To respond to this situation, the Foreign Direct Investment Promotion Project will help Bangladesh improve investment climate to promote foreign direct investment through such programs as two-step loans (refinancing scheme), project sector loans for offsite infrastructure development and equity-back finance for Economic Zone Development. Through this project, Bangladesh will facilitate the development of large-scale infrastructure including economic zones (EZs), under the framework of public private partnership, while trying to eliminate and improve cumbersome procedures, policies, or practices related to business environment of Bangladesh.

(2) A stable supply of power to the Dhaka Metropolitan Area – strengthening the Dhaka-Chittagong main power grid

The electrification rate in Bangladesh overall is low, a mere 62 percent (2013), and while the potential power demand is rising with the high growth of recent years, the power supply capacity remains at only about 80 percent, leading to regular planned power outages. The power demand is expected to increase at an annual rate of 8.5 percent, and as the power supply cannot meet that rise with only domestic natural gas, which is used for about 70 percent of the power currently used for power production, there is a need to diversify the power production fuels in use to strengthen the power supply capacity. To increase the amount of coal available for power generation and address this situation, the Government of Bangladesh is carrying out the Matarbari Ultra Super Critical Coal-Fired Power Project (I) (L/A signed in fiscal year 2014), under which a deep-sea harbor for coal ships is being constructed in Chittagong Division and a power plant is planned for construction that will generate power with that imported coal. The Dhaka-Chittagong Main Power Grid Strengthening Project that is in this agreement will lay high-voltage main power lines and construct transformer facilities so that power generated at the newly constructed power plant can be transmitted to Dhaka, providing a stable supply of power to the Dhaka Metropolitan Area which accounts for about half of the country’s power demand, and contributing to economic development in Bangladesh.

(3) Bridge replacement and construction in Western Bangladesh – making the regional transportation network safer and more efficient

With robust economic development in recent years, the volume of cargo handled in Bangladesh has increased approximately eight times over the past three decades and the number of passengers traveling has increased about 6.5 times, and growth is expected to continue at a rate of approximately six percent going forward. Trucks and other road transportation account for approximately 80 percent of the transportation used domestically, and such ground transportation is vital for other countries in the region as well. About 40 percent of the some 3,800 bridges on roadways around the country have deteriorated, lack proper maintenance, or have had an initial failure, and those structural defects and damage are serious enough to make the bridges impassable. Damaged bridges that cannot be crossed during the rainy season and bridges that are dangerous for large and heavy transportation vehicles are impediments to the transportation of goods. The Western Bangladesh Bridge Improvement Project will replace and construct around 60 bridges mainly in Western Bangladesh, improving the safety when crossing rivers and the efficiency of the road network, thereby promoting socioeconomic development in the area.

(4) Supporting health service improvement from the community level to higher-level medical facilities – improving maternal and child health, and strengthening early diagnosis system of lifestyle diseases

In the area of maternal and child health in Bangladesh, the maternal mortality rate and the under-five mortality rate have been steadily dropping, as a result of the decades of efforts that have been implemented. However, the proportion of deliveries attended by skilled birth attendants and antenatal care coverage remain low, and therefore the health system must be strengthened along with further improvements in health services. There is a chronically inadequate number of human resources at the core of the health system; therefore, improvement in the quality and number of nurses, in particular, is a priority. Furthermore, there are not enough healthcare services at public hospitals for the early diagnosis and treatment of lifestyle diseases such as heart disease, cancer, and diabetes, areas in which there has been a rising need in recent years for examinations. To increase access to health services by the poor and the socially vulnerable, in particular, improvement in public health services toward universal health coverage* is a priority. The Maternal, Neonatal and Child Health (MNCH) and Health System Improvement Project will improve the health status of the people of Bangladesh through improving service provision at all levels of health facilities and supporting development of human resources for health.

(5) Strengthening safety in public and private urban buildings – building disaster-resilient cities with the first truly earthquake-proof technologies

Dhaka and Chittagong, the core cities of the government and economy of Bangladesh, are also the two largest cities in the country, accounting for approximately 50 percent of the gross domestic product and approximately 15 percent of the population. Some 500,000 houses are concentrated in these two cities, and about 70 percent of those houses are believed to not comply with Bangladesh National Building Code (BNBC). Over the past 150 years, seven earthquakes with a magnitude of at least seven (M.7) have occurred in Bangladesh, and the next time an earthquake occurs on such a scale, it is predicted that 30 percent of the buildings in Dhaka and 80 percent of those in Chittagong will be all or partially destroyed, making those cities among the most vulnerable urban areas to disasters such as earthquakes in the world. A related problem is human-made disasters caused by illegal construction, exemplified by the disaster in 2013 when a tenant building housing a garment factory called Rana Plaza collapsed under its own weight, killing 1,135 people. The Urban Building Safety Project will construct a Fire Service and Civil Defense Headquarters and retrofit fire stations that save lives during earthquakes and other disasters, and provide mid- to long-term low-interest financing through financial institutions with the objective of strengthening the safety of private buildings, thereby encouraging earthquake-resistant private buildings. By improving the safety of public and private buildings in these cities and reducing the risk of disaster, this project will contribute to overcoming social vulnerabilities and to reliable economic development.

(6) Improving public services – toward better rural infrastructure and strengthening administrative capacity

While Bangladesh has achieved rapid economic growth in recent years, approximately 32 percent of the population still lives below the poverty line, and the rate is especially high in rural areas, 35 percent, which is 10 percent higher than urban areas. Local government institutions in rural areas are not being able to deliver effective public services based on regional characteristics and resident demands due to a lack of development budgets and staff capacity, and also due to the lack of a system that effectively reflects and coordinates resident demands. Therefore, to improve the delivery of public services and development project implementation, strengthening local government institutions is a priority in rural areas where the poverty rate is high. The Upazila Governance and Development Project will formulate the development plans of upazila (sub district) and implement development works (rural roads, water supply, education, medical facilities, and the like), better reflecting resident demands. In addition, the project will provide training for capacity development and technical support to public servants, thereby contributing to an improvement in the lives of residents and reinforcing the local government structure of Bangladesh.

* Universal health coverage refers to providing all people with access to appropriate health promotion, preventative care, treatment and functional recovery services at an affordable cost.

Reference
Terms and Amounts of Loans

Project title Amount
(million yen)
Annual interest rate (%) Repayment
period
(years)
Grace
period
(years)
Procurement
Project Consulting services
Foreign Direct Investment Promotion Project 15,825 0.01 0.01 40 10 General untied
Dhaka-Chittagong Main Power Grid Strengthening Project 43,769 0.01 0.01 40 10 General untied
Western Bangladesh Bridge Improvement Project 29,340 0.01 0.01 40 10 General untied
Maternal, Neonatal and Child Health (MNCH) and Health System Improvement Project 17,520 0.01 0.01 40 10 General untied
Urban Building Safety Project 12,086 0.01 0.01 40 10 General untied
Upazila Governance and Development Project 14,725 0.01 0.01 40 10 General untied

(1) Foreign Direct Investment Promotion Project

(a) Background and Necessity
Supported by the expansion of garment manufacturers in Europe, Japan and North America to Bangladesh, as well as by overseas Bangladeshis sending money home, Bangladesh has maintained a high rate of growth exceeding an annual rate of 6 percent, and robust development is expected to continue going forward. Accounting for 80 percent of the country’s exports, the garment industry has an advantage in its low labor costs and relies primarily on outsourced work for markets in the West. As the garment industry is subject to economic trends in its export markets and dependent on raw material imports, little benefit is passed on to related industries so that local industries are not fostered. As a result, the only economic advantage the garment industry has is its low labor costs, leaving the economic structure fragile due to its exposure to low-wage international competition. To achieve further economic growth, it is necessary to move to a higher added-value model for garment products, nurture competitive manufacturing industries, and diversify the industrial structure. Therefore, it is hoped that investment from foreign countries will increase with the introduction of technology, but the restrictive investment environment stifles attempts to do so. For example, private companies considering whether to expand to Bangladesh face impediments such as inadequate basic infrastructure and complex government procedures, and those operating in Bangladesh find that financing is difficult to obtain. The amount of FDI in Bangladesh is low, 1.1 percent of the gross domestic product (GDP), and is 6.1 percent on a stock basis, also low compared to the average of 10.9 percent in South Asia and falling far short of the average of 44.1 percent in Southeast Asia (2013).

In order to address these circumstances, it is imperative that mid- to long-term financing be expanded for foreign business, the investment environment be improved through better infrastructure, complicated government procedures be simplified for industrial complexes and other FDI targets, and an environment be created that facilitates cooperation between the public and private sector on joint projects.

(b) Objective and Summary
Through two-step loans, equity-back financing and the development of off-site infrastructure for economic zones, industrial parks and estates, this project will improve access to financing, support the development of infrastructure such as industrial complexes, streamline complicated government procedures, and improve the investment environment to promote FDI. This project will also contribute to economic development through adding value to products and diversifying industry in Bangladesh.

The loan funds will be allocated to financing for capital investment by foreign companies and project operation funds to be disbursed through a financial intermediary, expenditures to encourage infrastructure development by the Government of Bangladesh and others, the development of access roads, power, gas and other basic infrastructure at project locations, and consulting services.

This project is expected to be implemented through collaboration with the Project for Development of Economic Zones and Capacity Enhancement of Economic Zones Authority, a 2015 technical cooperation project that will improve the capacity of the authorities handling economic zones development.

(c) Executing Agencies
Two-step loans: Bank and Financial Institutions Division of the Ministry of Finance (project implementation by Bangladesh Bank)
Address: Bangladesh Secretariat, Dhaka-1000, Bangladesh
Phone: +880-2-9576017, fax: +88-02-9513500

Equity-back financing: Finance Division of the Ministry of Finance (project implementation by Bangladesh Infrastructure Finance Fund Limited)
Address: Bangladesh Secretariat, Dhaka-1000, Bangladesh
Phone: +880-2-7161431, fax: +88-02-9570644

Off-site infrastructure: Prime Minister’s Office (project implementation by Bangladesh Economic Zones Authority)
Address: Old Sangsgad Bhaban, Tejgaon, Dhaka-1215, Bangladesh
Phone: +880-2-9128526, fax: +880-2-9145038

(d) Planned Implementation Schedule
(i) Completion of project: March 2025 (with completion of two-step loan disbursement)
(ii) Issuing of letters of invitation for consulting services (including detailed design work): Already issued
(iii) Tender announcement of initial procurement package for international competitive bidding on project construction:
Procurement package title: To be determined
Release date: To be determined

(e) JICA Contact Information
For further information about the procurement schedule, please contact the party listed below.
Contact Point for Private Sector Development, JICA Bangladesh Office
Address: 3rd Floor, Bay’s Galleria, 57 Gulshan Avenue (CWS-A19), Gulshan-a, Dhaka-1212
Phone: +880-2-9891897, fax: +880-2-9891689

(2) Dhaka-Chittagong Main Power Grid Strengthening Project

(a) Background and Necessity
The electrification rate in Bangladesh overall is approximately 62 percent, with an annual power consumption of merely 321 kilowatts per person (2013). Although the high economic growth in recent years means there is a growing potential demand for power (9,268megawatts), the supply capacity in 2014 was 7,418 megawatts, about 80 percent of the need, and planned power outages are a regular feature. The power demand is expected to continue growing at an annual rate of about 8.5 percent, reaching 33,708 megawatts by 2030 (according to 2010 predictions).

About 70 percent of the current power-generating facilities are thermal-based, using domestically produced natural gas as fuel, and despite a rising demand for domestic natural gas, the development of new domestic natural gas resources is not moving forward, so there is a need to diversify the power production fuels used in Bangladesh to strengthen the power supply capacity. To close the gap between the demand for power and the supply of domestic natural gas, the Government of Bangladesh has decided to import power generation fuels such as coal and natural gas, and plans to build a deep-sea port in Chittagong Division for importing coal and a power plant that uses that coal. Expanding the power-generation facilities in Chittagong Division and providing a stable supply of power to the Dhaka Metropolitan Area, which accounts for about 50 percent of the power consumed domestically, are essential for sustainable economic development in Bangladesh. There is also a need for facilities that can increase the efficiency of power generation, distribution, and transmission in the power sector to create a low-carbon society.

(b) Objective and Summary
This project will build a high-voltage main power grid and construct transformer facilities between Dhaka and Chittagong to enable a steady, efficient supply of power to Dhaka. The energy will come from a thermal power station being constructed under the Matarbari Ultra Super Critical Coal-Fired Power Project (I) (L/A signed in fiscal year 2014), thereby contributing to economic development in Bangladesh and alleviating climate change.

The loan funds will be allocated to the laying of 400-kilovolt power transmission lines, the construction of new 400-kilovolt and 230-kilovolt substations, an increase in the number of 230-kilovolt/132-kilovolt substations, and consulting services.

(c) Executing Agency
Power Grid Company of Bangladesh Limited
Address: IEB Building (3rd & 4th floor), Ramna, Dhaka-1000, Bangladesh
Phone: +880-2-9553663, fax: +880-2-7171833

(d) Planned Implementation Schedule
(i) Completion of project: March 2021 – when the facilities are put into service
(ii) Issuing of letters of invitation for consulting services (including detailed design work): July 2015 (already sent)
(iii) Tender announcement of initial procurement package for international competitive bidding on project construction:
Procurement package titles: Substation Package, Transmission Line Package
Release date: February 2016


(3) Western Bangladesh Bridge Improvement Project

(a) Background and Necessity
Over the three decades spanning 1975 to 2005, the volume of transported cargo has increased eight-fold and the number of traveling passengers by in Bangladesh has increased 6.5 times, accompanying the robust economic development in recent years, and growth is expected to continue growing at about 6 percent per year going forward. The country is heavily dependent on road transportation, which accounts for 80 percent of all transportation means. The road network in Bangladesh is recognized as an important goods distribution route not only for the country itself, but also for nearby landlocked countries and the region overall. However, approximately 40 percent of the some 3,800 bridges on national roads, major regional roads, and district roads throughout the country have deteriorated, lack proper maintenance or are beginning to fail, and are impassable due to structural defect or severe damage. There are also bridges that are impassable during the two months or so of the rainy season, and others that are difficult for large vehicles or trucks carrying heavy freight to cross, hindering the transportation of goods. Improvements have already been carried out on medium-sized and smaller bridges in Eastern Bangladesh under the Eastern Bangladesh Bridge Improvement Project (L/A signed in fiscal year 2008), but improving river crossing safety and making the road network more efficient in Western Bangladesh are still priorities.

(b) Objective and Summary
This project will improve the safety and efficiency of the road network primarily in Western Bangladesh through the replacement and construction of about 60 bridges, which is expected to promote socioeconomic development in the region. The loan funds will be allocated to the replacement and construction of approximately 60 bridges, the construction of approach roads, and consulting services.

(c) Executing Agency
Roads and Highways Department, Ministry of Road Transport and Bridges
Address: Sarak Bhaban, Tejgaon, Dhaka, Bangladesh
Phone: +880-2-8879299, fax: +880-2-8879199

(d) Planned Implementation Schedule
(i) Completion of project: March 2021 – when the facilities are put into service
(ii) Issuing of letters of invitation for consulting services (including detailed design work): June 2015 (already sent)
(iii) Tender announcement of initial procurement package for international competitive bidding on project construction:
Procurement package title: Construction Package
Release date: January 2017

(4) Maternal, Neonatal and Child Health (MNCH) and Health System Improvement Project

(a) Background and Necessity
There has been much improvement in the area of maternal and child health in Bangladesh, characterized in the reduction of infant mortality rate, the under-five mortality rate, and maternal mortality ratio, almost achieving Millennium Development Goals (MDGs) for health. Nevertheless, proportion of delivery attended by a skilled birth attendant and that of antenatal care coverage remain lower than in other South Asian countries (2013). To improve these indicators and fulfill MDGs, health, nutritional, and population services should be provided to pregnant and nursing mothers, as well as making these services more accessible to them by removing financial, physical and social barriers. Functioning health system is the foundation to provide health services and it needs to be further strengthened in Bangladesh. The most pressing issue in this regard is insufficient number of human resources. In particular, the improvement of nursing is a priority, in terms of both of the number of nurses and the quality of their services. In addition, an epidemiological transition is taking place in the recent years and non-communicable diseases and injuries account for 68 percent of all deaths in Bangladesh, increasing the need for promotion of preventive measures and medical services for early diagnosis and treatment at public hospitals. Currently, high costs for treatment and examination at private hospitals place pressure on the household budget, limiting the access to these health services by the poor and socially vulnerable in particular. Government of Bangladesh is placing universal health coverage as the priority issue in the health sector of Bangladesh.

(b) Objective and Summary
This project aims at improving maternal and child health services while strengthening the health system, thereby improving the health of the people of Bangladesh. The project takes multi-faceted approach in strengthening the health system through human resource development, the provision of equipment pertaining to maternal and child health, activities to improve nursing educational institutions, and assistance to strengthen the early diagnostic systems of non-communicable diseases at higher-level hospitals.

The loan funds will provide for the primary and secondary health facilities and educational and accommodation facilities at the nursing colleges, equipment for maternal and child health and nursing college education, and training for emergency and obsteric care. Part of the loan funds will also be allocated to the procurement of diagnostic imaging equipment to strengthen the early diagnosis system at higher-level medical facilities, as well as to facility improvements, training, and consulting services to meet the increasing needs to prevent and treat the rise of non-communicable diseases.

This project will also continue to provide assistance to the framework that was built under the Safe Motherhood Promotion Project, a technical cooperation project that began in 2006, under which administrative and health facilities and residents support maternal and child health in society as a whole, to enhance the quality management techniques for health services nationwide , and to improve the educational environment such as equipment at nursing colleges where will be a cooperation site of the Project for Capacity Building of Nursing Services, a technical cooperation project that starts in 2015.

(c) Executing Agency
Ministry of Health and Family Welfare
Address: Bangladesh Secretariat, Dhaka-1000
Phone: +880-2-8113088, fax: +880-2-8113088

(d) Planned Implementation Schedule
(i) Completion of project: March 2020 – when the facilities are put into service
(ii) Issuing of letters of invitation for consulting services (including detailed design work): March 2016
(iii) Tender announcement of initial procurement package for international competitive bidding on project construction:
New Construction of Diagnostic Imaging Centers in Medical College Hospitals
Release date: April 2017

(5) Urban Building Safety Project

(a) Background and Necessity
The Dhaka Metropolitan Area and Chittagong, the core urban areas of the government and economy in Bangladesh, are also the two largest cities in the country, accounting for approximately 15 percent of the population and approximately 50 percent of the entire country’s GDP. There are approximately 300,000 buildings in Dhaka and 180,000 in Chittagong, many of which do not comply with the Bangladesh National Building Code, creating an environment at risk when earthquakes and other disasters strike. Belonging to the Eurasian Plate and Indian Plate, which includes the earthquake-prone Himalayan Mountains, Bangladesh has had seven earthquakes of magnitude seven or higher over the past 150 years. World Bank and UNDP studies predict that the next time an earthquake of that scale hits, about 30 percent of the buildings in the Dhaka Metropolitan Area will be partially or completely destroyed and 40,000 to 150,000 people will lose their lives, while 80 percent of the buildings will be partially or completely destroyed in Chittagong. Human-made disasters caused by illegal construction are also a challenge, exemplified by the collapse of a tenant building that housed a garment factory in 2013, killing 1,135 people. Because of the concentration of political and economic organization in those two cities, there is a high density of skyscrapers, garment factories, and other buildings there, making safety improvements to buildings at risk for disaster a priority.

(b) Objective and Summary
This project will provide two-step loans for promoting the earthquake-resilience of private buildings using sub-loans from participating financial institutions that originate with the Ministry of Finance, and will also retrofit public buildings for earthquakes, improving the urban building safety and reducing social vulnerabilities by mitigate damage when a disaster strikes.

The loan funds will be allocated to mid- to long-term loans to the private sector, including garment factories, to retrofit buildings for safety through participating financial institutions, to the construction of a Fire Service and Civil Defense Headquarters, to the retrofitting of fire stations, to the procurement of equipment, and to consulting services.

This project will utilize an inventory of public buildings in Dhaka, verification of the soundness of buildings with structural tests, manuals of structural evaluation, earthquake-resistant designs and retrofit designs compliant with building codes, human resources who acquire earthquake-resistant technologies in retrofitting public and private buildings for earthquakes developed in the Project for Capacity Development on Natural Disaster-Resistant Techniques of Construction and Retrofitting for Public Buildings, a technical cooperation project running since 2011.

(c) Executing Agency
Private building safety promotion loans: Bank and Financial Institute Division, Ministry of Finance (project implementation by Bangladesh Bank)
Address: Bangladesh Secretariat, Dhaka, 1000
Phone: +880-2-9559109, fax: +880-2-9559109

Public building safety: Public Works Department
Address: Purta Bhaban, Segunbagicha, Dhaka, 1000
Phone: +880-2-9562795, fax: +880-2-9562795

(d) Planned Implementation Schedule
(i) Completion of project: April 2022 (with completion of the two-step loan disbursement process and commencement of facility service)
(ii) Issuing of letters of invitation for consulting services (including detailed design work): December 2015
(iii) Tender announcement of initial procurement package for international competitive bidding on project construction:
Procurement package title: Mirpur New Headquarters of Fire Service and Civil Defense Package
Release date: September 2017

(6) Upazila Governance and Development Project

(a) Background and Necessity
While economic development in Bangladesh has reached a rapid high rate of growth in recent years, approximately 47 million people, or 32 percent of the population, live below the poverty line (2010), and in rural areas where approximately 71 percent of the population lives, the rate of poverty is 35 percent, which is 10 percent higher than urban areas.

Under the central government, there are local government institutions at the division, district, and upazila (sub-district) and union levels. The upazila parishad (sub-district local government institution), approximately 500 in number nationwide, functions to coordinate opinions from unions which are the closest to residents, and to coordinate public services in education, health, agriculture and other areas provided by various departments of the central government. The upazila parishad is expected to provide public services and implement development projects that reflecting resident demands. However, due to a lack of development funds, inadequate capacity of government officials, and a lack of a system to ascertain and coordinate the demands of residents in the upazila parishad, sufficient public services are not being delivered to residents. Therefore, strengthening the upazila parishad for better public service delivery and development projects implementation in line with resident demands is a priority for development in rural areas where the poverty rate is high.

(b) Objective and Summary
The objective of this project is to enhance the capacity of the upazila parishad to deliver effective public services by supporting development works (rural roads, water supply, medical facilities, and the like) which better reflects citizen demands and by providing training for capacity development to public servants, thereby contributing to improving the lives of residents and reinforcing the local government structure of Bangladesh. The loan funds will be allocated to improving rural infrastructure, improving governance, strengthening the project implementation framework, and consulting services. This project will assess and rank all 500 upazilas by administrative and financial capacityand select the top 100 upazilas as target areas in the first year, and the number will increase by 100 every year until all of the upazilas are covered in the fifth year. The project will provide upazila parishad training for overall administrative and financial capacity and assistance to effectively implement rural development infrastructure projects.

A relevant technical cooperation project expected to start in 2015 will assist upazila parishads in strengthening their capacity to plan and implement development projects, supporting the inclusive improvement of the delivery of public services that reflect regional characteristics and resident demands. Through a strong coordination with the Upazila Governance and Development Project, this technical cooperation aims for reflecting project achievements at the policy level of relevant government agencies, which contribute for the steps of the dissemination of the model.

(c) Executing Agency
Local Government Division, Ministry of Local Government Rural Development & Cooperatives
Address: Building #7 Bangladesh Secretariat, Dhaka-1000, Bangladesh
Phone: +880-2-9540194, fax: +880-2-9575574
(d) Planned Implementation Schedule
(i) Completion of project: June 2021 – when the facilities are put into service
(ii) Issuing of letters of invitation for consulting services (including detailed design work): January 2016
(iii) Tender announcement of initial procurement package for international competitive bidding on project construction:
International competitive bidding will not take place for construction in this project.

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