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  Preliminary Development Project Proforma for Aided Project (PDPP)

Preliminary Development Project Proforma for Aided Project

 

1.  Project Title: Block Fund for BMDF for Participatory Urban Development

 

2.  (i)  Sponsoring Ministry: Banks & Financial Institutions Division, Ministry of Finance

 

(ii) Executing Agency: Bangladesh Municipal Development Fund (BMDF)

[Bangladesh Municipal Development Fund (BMDF) is a government-owned company under the Banks and Financial Institutions Division of the Ministry of Finance. It was created in 1999 and was registered under the Company Act, 1994, in 2002. BMDF is a non-profit, non-banking, financial organization. It is managed by its Board of Directors. The Secretary, Local Government Division of the Ministry of Local Government, Rural Development and Cooperatives of GoB, is the Chairperson of the Board.]

 

  3. Expected dates of commencement and completion:

 

 (i) Commencement   :    July 2011

 

 (ii) Completion            :    June 2015

 

4.  Relevance of the proposal with concerned sectoral allocation: There are 14 sub-projects within this proposed project all of which are placed under 8 different sectors of the Annual Development Program. These are (i) Agriculture; (ii) Rural Development and Rural institutions; (iii) Power; (iv) Transportation; (v) Communication; (vi) Infrastructure Planning, Water Supply and Housing; (vii) Health, Nutrition, Population, and Family Welfare; and (viii) Public Administration. In the national budget of the fiscal year 2011-12, the sectoral allocation rate for these sectors are 5.94%, 9.57%, 15.59%, 16.85%, 0.66%, 12.28, 8.57% and 2.36%, respectively.

 

5.  Main objectives and a brief description of the project:  The main objective of the project is to improve environmental and infrastructural service delivery in the urban areas, which includes (a) to strengthen the institutional capacity of the selected municipalities and city corporations, (b) to improve resource allocation and fiscal discipline that is based on transparent and objective eligibility criteria, and (c) to support the governmental efforts to improve environmental condition and to reduce poverty in the urban areas and to improve the quality of life of urban communities.

 

The specific objectives are:

i)          to improve the quality of life of the urbanities;

ii)         to expand the opportunities for Income Generating Activities in the urban areas;

iii)        to extend business, communication, transportation, and living conditions in the urban areas;

iv)       to promote a planned township through a detailed Master Plan;

v)        to extend health and social facilities in the towns;

vi)       to increase the capacity of environmental management;

vii)      to improve solid waste management in the municipal areas;

viii)     to introduce alternative sources of energy;

ix)       to introduce digital technology to the ULBs for developing data base management;

x)        to create ULB’s participatory approach in development programs;

xi)       to strengthen the institutional, financial, and development project managerial capacity of towns; and, above all,

xii)      to change the ‘spoon-feeding’ attitude and dependency upon the government by empowering the ULBs financially with an aim to shoulder the development responsibilities from their own resources.

 

The proposed block fund will be utilized in the following fourteen parts. However, all steps in this regard are subject to such modification thereof as the government and the donors may initiate and agree upon, from time to time, to achieve the said objectives.

 

Part A: Infrastructure development in the municipalities and City Corporations

Starting from 2004 till date, BMDF has so far implemented its sub-projects in 114 ULBs, including two City Corporations, which amount to US$ 66.00 million (BDT 462 crores), of which US$ 58.7 million (BDT 411 crores) came from IDA credit and US$ 6.3 million (BDT 44 crores) from the contribution made by the ULBs participating in the programs. Out of the IDA share, US$ 8.9 million (BDT 62 crores) was given as loan to ULBs. The major development works so far implemented are as follows

 

Sl No.

Name of Component

Unit

Total Quantity/ Program

Qty.

ULB

1

Roads

km

836.91

111

2

Drains

km

182.30

77

3

Box Culverts

Nos.

30

13

4

 Water Supply

P/ Line

km

144.9

19

PTW

Nos.

17

11

WTP

Nos.

2

2

W/Meters

Set

3000

1

5

Public Toilets

Nos.

80

31

6

Slaughter Houses

Nos.

7

5

7

Kitchen Market Sheds

Nos.

199

48

8

Bus/Truck Terminals

Nos.

7

7

9

Community Centers

Nos.

9

9

10

Office Building

Nos.

4

4

11

Street Light

Set

8831

8

 

Upon successful and timely implementation of such voluminous works with high efficiency, BMDF has received enormous attention from different ULBs for their infrastructure development for both income and non-income generating activities. As on December 2010, specific development demands from 283 ULBs are lying pending with BMDF.

The summary of the municipal infrastructure and service sector requirement, as requested by the ULBs, is presented below:

(i)          rehabilitation of the existing water supply system and construction of 50 water treatment plants in 50 ULBs, 500 km-long pipeline along with supply of water meters in 100 ULBs, and 100 production tube wells in 75 ULBs;

(ii)         construction of 200 public toilets in 150 ULBs;

(iii)        upgradation and rehabilitation of about 1500 km-long roads through bituminous carpeting in 250 ULBs and 250 km-long RCC roads in 60 ULBs;

(iv)       construction of 800 km-long RCC/ masonry surface drains in 150 ULBs;

(v)        construction of 200 culverts in 100 ULBs;

(vi)       construction of and/or rehabilitation of 25 bus/truck terminals in 25 ULBs;

(vii)      upgradation/rehabilitation/construction of 150 municipal kitchen markets along with 450 sheds in 150 ULBs;

(viii)     construction of 10 office buildings in 10 ULBs;

(ix)       construction of 160 slaughter houses in 150 ULBs;

(x)        supply, fitting, and fixing of 1,00,000 sets of street light in 100 ULBs; and,

(xi)       construction of 15 community centers in 15 ULBs.

 

Part B: Municipal income-generating project for 309 ULBs

The works so far funded by BMDF include mainly the construction of roads, drains, and kitchen markets, etc. in urban areas, which have got indirect impact upon income generation in each ULB’s itself. BMDF believes that these projects will have positive impact upon the quality of life of the urban people. The ULBs, thus, have been inclined to initiate a huge number of direct income-generating projects. As such, BMDF has received applications of demand from 125 ULBs for income-generating projects in the following 17 components:

(i)        sinking of 20 deep tubewells with pumps, motors, and pump houses in 12 ULBs;

(ii)       laying of 366 km-long water distribution line along with supply of water meters in 46 ULBs;

(iii)      construction of 6 water treatment plants in 6 ULBs;

(iv)     construction of 10 low-cost housing schemes in 10 ULBs;

(v)      construction of 86 Municipal Trade Centers in 86 ULBs;

(vi)     construction of 20 Municipal Health Care Centers in 20 ULBs;

(vii)    supply of 29 ambulances to 29 ULBs;

(viii)   construction of 60 public toilets in 46 ULBs;

(ix)     construction of 19 slaughter houses in 17 ULBs;

(x)      construction of 28 bus/truck terminals in 28 ULBs;

(xi)     construction of 29 community centers in 29 ULBs;

(xii)    construction of 6 CNG stations in 6 ULBs ;

(xiii)   construction of 26 kitchen markets in 26 ULBs;

(xiv)   improvement and renovation of 15 children’s parks in 15 ULBs;

(xv)    construction of one cold storage in Chakoria under Cox's Bazar district;

(xvi)   construction of 5 multipurpose office buildings in 5 ULBs; and,

(xvii)  construction of 1 overhead water tank in 1 ULB.

 

Part C: Municipal infrastructure maintenance project (MIMP)

The objective of the project is to improve the economic and social development of the country through urban environment, infrastructure, and service that includes a) improvement of environment and sustainable urban infrastructure, b) strengthening the institutional capacity of urban local bodies, c) improve resource allocation and fiscal discipline, and d) provide support to the government with an aim to reduce poverty and improve the condition of urban communities.

Thus, with a view to achieve the same, infrastructure maintenance in time has reduced the further cost of infrastructure construction as well as maintenance to a great extent and has ensured sustainability of urban infrastructure.

Part D: Construction of a multipurpose office-building for BMDF

Since its inception, the activities of BMDF have expanded day by day. Today, it has achieved the ability to conduct its operation by renting space from a private building located at Mirpur in Dhaka. BMDF, however, is facing a number of problems, including accommodating official activities, meeting, monitoring, supervision, organizing training, etc. at present situation. As its activities are expected to increase to a great extent in the near future, BMDF will face numerous problems while having its office in the present location. Taking the present situation into consideration, BMDF has felt the need for having its own multipurpose office building for accommodation of all types of official activities.

Part E: Solid waste management in the urban areas

The problems associated with Solid Waste Management (SWM) are a great threat to the public health and environment in the municipalities. Today, the number of municipalities in Bangladesh stands at 309. The urban areas have become the homes of about 31.08 million people. The number of population in the urban areas is on the rise at an alarming rate. The increase of urban population is closely associated with the increase of Municipal Solid Waste (MSW). The urban areas in Bangladesh produce nearly about 26,000 to 27,000 MT of waste a day. About 50% of it is collected and disposed of in an obsolete method. According to a report made by the United Nations Center for Human Settlements (UN-Habitat), a large number of dwellers in the urban areas in Bangladesh live in ‘life-threatening’ conditions of poverty and environmental degradation. The number of sufferers is supposed to swell significantly by the next decade.And, it would happen due to the process of rapid urbanization, which will result in more MSW and, conversely, with very poor capacity for its management. SWM is an acute urban problem in the country. Nearly, 50 per cent of the daily generated garbage remains uncollected in the towns and cities of Bangladesh. A wide ‘gap’ exists between the daily generation and the collection of solid waste in the towns. Evidently, the SWM in the ULBs in Bangladesh is not yet attended properly.

BMDF is willing to take the challenge of this rapid-growing unattended burning problem of all the three hundred and nine ULBs allover the country, through the application of modern technology as well as the participation of ULBs. The Water and Sanitation Program-South Asia (WSP-SA) of the World Bank, Dhaka, has shown keen interest in working jointly with BMDF in this field. Asian Development Bank (ADB), German Technical Cooperation (GIZ), DFID, United States Aid For International Development (USAID), and, Canadian International Development Agency (CIDA) etc. are among many other development partners who may take interest to work in this field.

Part F: Institutional capacity building and technical assistance

Different studies on the management of municipalities in Bangladesh have shown that the capacity of ULB personnel in managing the day to day affairs, including administration, fiscal discipline and supervision, quality control & maintenance of the infrastructure development work need further improvement. As such, steps for strengthening the institutional and functional capacity as well as technical expertise are required for the implementation of large-size projects and service deliveries to the urbanities. The following proposals are taken to address the deficiencies in this field:

 

(i)        preparation and implementation of ULB-wise Financial and Operational Action Plan (FOAP);

(ii)       preparation and implementation of Urban Development Master Plan;

(iii)      preparation of Environmental Management Action Plans (EMAPs) for sanitation and solid waste management in the ULBs;

(iv)     arrangement of training both at home and abroad on public procurement procedures, infrastructure development planning, infrastructure project management, quality control of physical works, accounting and computerized billing systems for the core officials of BMDF and the staff of municipal authorities. The list of training programs should also include mindset changing animator training;

(v)      establishment of a municipal database and related applications systems;

(vi)     provide technical assistance for the ULB through the supply of modern instruments, and conduct training on need-oriented issues;

(vii)    strengthening urban governance in order to initiate the trends of participatory development;

(viii)   digitization of services of ULBs for making all relevant information available to the urban people, on demand.

Part G: Solar LED street lighting for 64 ULBs including 6 City Corporations

Today, the whole world is inclined towards renewable green energy, instead of energy from hydrocarbon, with an aim to safeguard our planet from different environmental hazards. Introduction of renewable solar energy in all potential sectors may eliminate the acute electricity problem in the country. If it is done properly and adequately, it would also make a greater positive impact upon the present condition of global warming.

Part H: Construction of slaughter houses with modern & appropriate technology in 6 City Corporations

Construction of adequate number of slaughter houses with modern and appropriate technology will ensure standard health and environmental condition for the people. It will also help them buy safe and hygienic meat for their consumption.

Part I: Digitalization of 6 City Corporations and 309 municipalities

To march parallel with the global advancement, today Bangladesh has started the process of digitalizing its different public and private sectors. This program is also the reflection of the government’s vision of “Digital Bangladesh”. BMDF, accordingly, likes to take massive digitalization program for 6 City Corporations and 309 municipalities.

 

Part J: Solar-based power supply to ULB office buildings (Pilot based, 50 ULBs)

In order to reduce dependency on non-renewable power, the potentiality of using renewable power for different purposes has been explored. To conserve environment and to popularize the use of solar energy for electricity production, a pilot project is proposed, which is the solar-based power supply to 50 ULB office buildings.

Part K: Preservation, development, and functioning of environmental elements (such as water bodies, woods and forests, hills etc.)

Different water bodies such as ponds, dighi, canals, woods and forests, and hills are being lost in different municipal areas due to the process of rapid urbanization. Side by side, natural reservoirs as well as natural drains of water are being seriously threatened. The pressure of the population upon urban areas has caused deforestation along with the degradation of the environment and the loss of eco-balance. In order to preserve woods and forests and allow the smooth functioning of the elements that are the part of the environment, ULB will support conservation, development, and re-excavation of ponds, so that these remain clean and serve different purposes of the people.

Part L: Community-based infrastructure development plan and implementation. (For 80 ULBs)

In order to improve the municipal governance, preparation of community-based infrastructure development plan through people’s participation in it will be an effective measure. This approach will ensure ownership of the community for development of the areas they live in. This kind of short-term development plan for the infrastructure, in the municipal areas would play an active role.

Part M: Municipal healthcare projects (for A+, A, and some of the B class ULBs)

Bangladesh government has recently paid utmost importance to the healthcare of its citizens. It has been found that there is only one physician for some 2860 people and one nurse for 5720 men and women. Besides, the majority of the people has limited access to health services provided by the public sector. In this situation, ULB can provide health services to its dwellers. BMDF will provide support to the ULBs in developing infrastructure for facilitating this purpose.

Part N: Water supply and sanitation service in the educational institutions (for A+, A, and some of the B class ULBs)

Today, most of the urban schools suffer from the shortage of water supply. Demand for water can be solved by supplying water to these institutions through deep tubewell and/or pipe lines. ULBs, financed by BMDF, will provide support to these schools through installation of deep tubewells and/or pipe lines for adequate supply of water.

Besides, most of these schools are characterized by the lack of proper sanitation facilities. This is particularly threatening to the public health. It also obstructs the government in its efforts for the attainment of Millennium Development Goals (MDGs) in the field of water supply and sanitation, prevention of malarias and other diseases. ULB will provide support to the educational institutions in their initiatives for improvement of their sanitation facilities.

 

6.  Relevance of the project to the short / medium / long term policies / plans / programs, etc:

The population in the urban areas in Bangladesh is growing fast. Its present growth rate stands at 6% per annum as against the country’s total population growth rate of 2.06%. If this rate of growth continues, the country’s population will be doubled by 2035. An estimate goes like that by the year 2015, about 50% of the country’s population will live in the urban centers. The data available also indicate that 43% of the present urban dwellers are poor and that 23% are extremely poor. So, it appears that Bangladesh is gradually approaching a disastrous condition due to the presence of ever-increasing urban population. With the galloping rate of population growth, the total size of urban areas and the number of urban local government bodies have also increased at a very fast rate, with only 77 in 1991 to 309 as on 31st July, 2010 (BBS). Under the circumstances, urban local governments need to play a crucial role in addressing the sustainable urbanization agenda, including provision for adequate housing, communication, safe water and sanitation, clean environment, health, education, food and nutrition, employment, and public security.

The main objective of the project is to achieve economic and social development of the country by strengthening the institutional capacity of the ULBs and by improving resource allocation through the process of widening income-generating activities. It may be stated here with a sense of pride that BMDF, since its inception, has been working successfully in different sectors, in accordance with the issues raised in the Millennium Development Goals (MDGs) of the UN and ‘Poverty Reduction Strategy Paper’ (PRSP), which is named as the National Strategy for Accelerated Poverty Reduction by the GoB.

 

7.    Relevance with other development programs of the concerned sector:

The intended program of this fund is relevant to some other urban programs implemented by other agencies like the Local Government Engineering Department (LGED) and the Department of Public Health Engineering (DPHE). However, the approach of BMDF is participatory in nature. It is, thus, by nature, different from any such other current programs, that enables the ULBs to be self-dependent slowly.

 

BMDFs’ policy of financing an organization / local body is unique in nature. It follows an innovative participatory approach for financing the infrastructure development in the ULBs, which include all city corporations of Bangladesh. BMDF’s financial package comprises both loans and grants. Determination of the exact proportion of loans and grants is based upon the type of the sub-project to be financed and the financial capacity of the municipality concerned. As of the present practice with the WB project, a ULB deposits 10% amount to the project fund as Matching Contribution, prior to the beginning of the project. The remaining 90% of the fund is borne by BMDF. Out of the total fund provided by BMDF, 85% is sanctioned as grant and 15% as loan. The amount of loan is repayable within a period of 10 years in 37 installments. BMDF, however, is committed to pay 15% of the fund so realized from the ULBs as Debt Service Liabilities (DSL) to the government exchequer within a period of 15 years, with 5 years grace period.

 

8.  Expected socio-economic benefits of the project:

 

The main objective of the project is to achieve economic and social development of the ULBs through improving resource allocation by income-generating activities. The benefits to be expected are the following:

i.          Comfortable livelihood of the urban people will be ensured.

ii.         Poverty of urban people will be reduced by providing employment.

iii.        Volume of trade and business will be increased.

iv.       Value and utility of land will be improved.

v.        Public health will be improved: reduction of child mortality and maternal health.

vi.       Environmental sustainability will be ensured.

vii.      HIV/AIDS, malaria and other diseases will be reduced.

viii.     Uninterrupted power supply in the urban areas will be possible.

ix.       E-governance in the ULBs will be introduced.

x.        People’s belongingness to the ULBs activities will be promoted.

xi.       Financial and managerial capacity of the ULBs will be improved.

xii.      ULBs will become financially independent and self-sufficient.

 

9.  (i) Estimated amount and cost of the proposed project: 9,70,555.8 Lakh

 

         (Details of the cost estimates of the 14 parts of the project are in Annexure-i)

 

(ii) Nature of foreign assistance (loan / grant / others): Loan or grant.

 

10.  Likely source of foreign assistance:

 

For Part A: Infrastructure development in the municipalities and City Corporations

The initiator of BMDF and fund provider at present is IDA (WB). BMDF may ask IDA (WB) to expedite additional allotment under the Financial Agreement 4761-BD. BMDF may also request to form a Development Consortium for the organization with the donors working in the urban sector, specially ADB, AusAID, CIDA, DFID, GIZ, JICA, SIDA, UNDP, WSP-South Asia, etc.

 

For Part B: Municipal income-generating project for 309 ULBs

ADB may be requested to provide fund for municipal income-generating projects like water supply and sanitation, improvement of urban environment, particularly the physical infrastructure such as public toilets, community centers, kitchen markets, bus and truck terminals, slaughter houses, etc. ADB has shown their primary interest in this field and BMDF can explore the possibility of seeking help from it for realizing its plans in this regard.

For Part C: Municipal Infrastructure Maintenance Project (MIMP)

The initiator of BMDF and the present fund-provider - IDA (WB) - may be asked to expedite the additional allotment under Financial Agreement 4761-BD. IDA (WB) can also be requested to form a Development Consortium for BMDF with the donors working for the urban sector, specially ADB, AusAID, CIDA, DFID, GIZ, JICA, SIDA, UNDP, WSP-South Asia, etc.

Part D: Construction of a multipurpose office-building for BMDF

Financial assistance from UNDP, JICA, GIZ, and DFID can be sought for constructing a multipurpose office-building for BMDF.

For Part E: Solid waste management in the urban areas

WSP (Water and Sanitation Program) of the World Bank may be requested for promoting funding in urban solid waste management as it is providing assistance in this sector and has recently presented a concrete idea in this regard to BMDF officials. JICA has been working in the municipal solid waste sector in Bangladesh for a quite long period of time and has brought about a lot of improvement in it. The efforts of JICA can help BMDF while it addresses the management of municipal solid waste of the ULBs. Besides, USAID, DFID, GIZ, ADB CIDA, and SIDA, etc. may be found interested to work in this area.

For Part F: Institutional capacity building and technical assistance

Assistance from UNDP, GIZ, and DFID may be sought for the capacity building programs of ULBs.

For Part G: Solar LED street-lighting for 64 ULBs including 6 City Corporations

Assistance from IDA and ADB may be sought for the installation of solar LED street lighting for selected ULBs.

For Part H: Construction of slaughter houses with modern & appropriate technology in 6 City Corporations

Assistance from ADB and GIZ may be sought for the construction of modern slaughter houses at the proposed ULBs. WSP (Water and Sanitation Program) of the World Bank may be requested for promoting funding for the construction of slaughter houses. WB has already provided assistance in this sector and has recently presented an idea and experience of its own to BMDF officials.

For Part I: Digitalization of 6 City Corporations and 309 municipalities

Assistance from IDA and UNDP may be sought for the digitalization of the proposed ULBs to get in touch with the government’s vision of “Digital Bangladesh”.

For Part J: Solar-based power supply to ULB office-building (Pilot based, 50 ULBs)

Both financial and technical assistance from ADB, GIZ, and JICA may be sought for empowering ULB office-buildings through solar panel.

For Part K: Preservation, development, and functioning of the environmental elements (such as water bodies, woods and forests, hills etc)

Both financial and technical assistance from Water and Sanitation Program (WSP), UNDP, GIZ, and JICA may be sought for preserving the environment as well as for adaptation to climate change.

For Part L: Community-based infrastructure development plan and implementation (for 80 ULBs)

Assistance from ADB, UNDP, and GIZ may be sought for preparing participatory community-based infrastructure plan and its implementation.

For Part M: Municipal healthcare projects (for A+, A, and some B class ULBs)

Assistance from WHO, ADB, IDB, GIZ, DFID, and UNDP may be sought for providing fund for infrastructure development in order to support health service.

For Part N: Water supply and sanitation service to educational institutions (for A+, A, and some B class ULBs)

Assistance from WSP (Water and Sanitation Program) of the World Bank, ADB, and GIZ may be requested for developing water supply and sanitation facilities in different educational institutions.

Besides, bilateral assistance from other development agencies, such as Asian Development Bank (ADB), Australian Aid for International Development (AusAID), Canadian International Development Agency (CIDA), German Technical Cooperation (GIZ), Islami Development Bank (IDB), Japan International Cooperation Agency (JICA), Kuwait Fund for Development (KFD), Korean International Cooperation Agency (KOICA), Malaysian Technical Cooperation Program (MTCP), Nordic Development Fund (NDF), Saudi Fund for Development (SFD), Swedish International Development Agency (SIDA), Thailand International Cooperation Agency (TICA), Water and Sanitation Program (WSP), World Bank (WB), United Nations Development Program (UNDP), etc. may be sought for BMDF’s programs for development in relevant sectors in the urban areas.

 

11.  Is there any proposal for undertaking feasibility study for the project? Yes. As per rules and practice at present, feasibility study in the form of Sub-Project Appraisal Reports (SPARs) is a mandatory prerequisite criterion for BMDF funding. Feasibility study of ULB-wise sub-project will be undertaken by independent consultants. An exclusive study may be undertaken for the feasibility of extraction of methane gas from the landfills with an aim to use it for generation of energy and electricity. Again, study for the establishment of sanitary landfills can be undertaken for hygienic disposal of municipal solid waste.

 

12.  Any other relevant information

 

      i.  Today, urbanization is inevitable for the development of the society. Urbanization and economic development are closely related to each other. In fact, urbanization is an index of development. The process of urbanization of the society can provide stimulus to development only if urban projects are planned and materialized properly. If the process of urban development is badly managed, it will bring about adverse socio-economic and environmental consequences. Therefore, what is needed is to make proper urban policies for achieving sustainable development through urbanization. BMDF is established for making planned urban development of Urban Local Bodies (ULBs). Its main objective is to improve urban environment, infrastructure, and service, including (a) strengthening the institutional and functional capacity of the ULBs, (b) improvement of resource allocation and fiscal discipline, and (c) support to the government for reducing poverty and improving the condition of urban community. In continuation of the successful implementation of Municipal Services Project (MSP), Phase-I of LGED, during the period between January 1999 and December 2002, and as per the agreement between the Bangladesh Government and the World Bank, a registered company named BMDF has been established to meet the demand of ULBs. BMDF has got a lot of opportunities to play a vital role in the field of development in urban areas.

 

     ii.  At present, the World Bank (IDA) is the only donor agency, which is providing fund since the inception of BMDF. In the Aide Memoire of Supervision Mission, dated November 7, 2006, the World bank mentioned that “IDA would like to see the Government requesting other donors to support the fund”, and “an official request should be made to IDA, through standard channels in ERD for follow-up funding or a further project.”

 

    iii.  The summary of the Preliminary Development Project Proforma (PDPP) for the Aided Project is shown in Annexure-ii.

 

 

Signature of the Head of the Executing Agency (BMDF)

 

 

 

 
 
 

Signature of the Secretary of the Sponsoring Ministry (MoF)


Annexure-i

 

Detail estimated amount of each part of the project:

 

Part A:   Infrastructure development in the municipalities and City Corporations

The estimated cost for the infrastructure development in 265 ULBs is shown in the following Table:

 

 

 

 

Amount in million Taka

Sl No.

Description of Infrastructure Development

Unit

Quantity

Unit Rate

Total Amount

Number of ULBs

1

Construction of water treatment plants

each

50

10.00

500.00

50

2

Laying of water distribution pipelines with water meters

km

500

0.90

450.00

100

3

Sinking of deep tube wells with pump motors and pump houses

each

100

4.00

400.00

75

4

Construction of public toilets

each

150

1.00

150.00

130

5

Construction of Bituminous roads

km

1500

4.00

6000.00

200

6

Construction of RCC roads

km

200

4.50

900.00

50

7

Construction of RCC/ masonry drains

km

800

3.00

2400.00

150

8

Construction of RCC culverts

each

200

1.20

240.00

100

9

Construction of bus/ truck terminals

each

40

20.00

800.00

40

10

Construction of kitchen markets, with sheds

each

150

1.80

270.00

150

11

Construction of community centers

each

15

20.00

300.00

15

12

Construction of multipurpose office buildings

each

10

20.00

200.00

10

13

Construction of slaughter houses

each

150

0.80

120.00

150

14

Supply, fitting, and fixing of street lights

set

100,000

0.015

1500.00

100

 

 

 

Sub-Total

14,230.00

 

Add 3% for incremental operating cost

426.90

 

Total

14,656.90

 

 

Part B:          Municipal income-generating projects for 309 ULBs

The estimated cost for the municipal income-generating projects in 125 ULBs is shown in the following Table:

Amount in million Taka

Sl No.

Description of Infrastructure Development

Unit

Quantity

Unit Rate

Total Amount

Number of ULBs

1

Sinking of deep tube wells, with pump motors and pump houses

each

20

4.00

80.00

12

2

Laying out of water distribution pipe lines with water meters

km

366

0.90

329.40

46

3

Construction of water treatment plants

each

6

10.00

60.00

6

4

Construction of low-cost house

each

10

50.00

500.00

10

5

Construction of municipal trade centers

each

86

30.00

2580.00

86

6

Construction of municipal healthcare centers

each

20

10.00

200.00

20

7

Supply of ambulances

each

29

7.00

203.00

29

8

Construction of public toilets

each

60

1.00

60.00

46

9

Construction of slaughter houses

each

19

0.80

15.20

17

10

Construction of bus/truck terminals

each

28

20.00

560.00

28

11

Construction of community centers

each

29

20.00

580.00

29

12

Construction of CNG stations

each

6

30.00

180.00

6

13

Construction of kitchen markets

each

26

1.80

46.80

26

14

Improvement and construction of children parks

each

15

30.00

450.00

15

15

Construction of cold storages

each

1

40.00

40.00

1

16

Construction of multipurpose office buildings

each

5

20.00

100.00

5

17

Construction of overhead water tanks

each

1

30.00

30.00

1

 

 

 

Sub-Total

6,014.40

 

Calculated for 309 ULBs on a rational basis

14867.6

 

Add 3% for incremental operating cost

446.08

 

Total

15313.66

 

 

Part C:   Municipal infrastructure maintenance project (MIMP)

For 309 municipalities and 6 City Corporations, Tk. 21,654.72 millions (for an implementation period of 05 (five) years)

 

Part D: Construction of a multipurpose office-building for BMDF

Land area                                                                  :    20 kathas

Plinth area of the building                                          :    800 sq. m.

Building type: 20-storied building with 3 basement

Approximate cost calculation:

 

3 X 800 X 60,000                                                       =  144.00 million

{(14,715+15,867)/2} X 23 X 800                               =  281.40 million

                                                                                   =  425.40 million

40% of the incremental cost                                     =  170.16 million

                                                                                   =  595.56 million

30% cost for WSS and electro-mech.                      =  178.67 million

Total:                                                                          =  774.23 million

Approximately                                                           =  800.00 million

 

Part E:   Solid waste management in the urban areas

 

Total no. of ULBs                                               :     (District and Upazilla Levels): 309

 

Population (As per 2001 Census and adjusted in BBS, 2008)   :     31.08 million (approx.)

 

Total households                                                            :     4.25 million

 

Kitchen and kitchen market solid waste

generated from 3,500 – 4,000 households per day       :     22 – 25 M. Ton

 

Approx. cost for one unit compost & recycling

plant for the disposal of about 22-25 MT kitchen

and kitchen market solid waste per day          :     Tk.10 million. (as per WSP, WB)

 

Total units of composite plants required to cover

4.25 million households                                                   :     4.25 million / 3500

                                                                                             = 1214 Units

Total cost (approx.) of the composite plant                   :    @ Tk. 10.00 m ´ 1214

                                                                        = Tk. 12140.00 million

 

Supply of two garbage trucks for each unit (approx.)   :     @ Tk. 4.00m ´2 ´ 1214

                                                                                       =    Tk 9712.00 million

 

Supply of community garbage van                               :  @ Tk. 0.02m ´ 20 ´ 1214

                                                                                       =    Tk. 485.60 million

 

Required land for sanitary landfill                                  @ 2 acres for each ULB

Cost of land for sanitary landfill                                     =    5 million for 2 acres of land

 

Total cost for the land                                                    =    5.00 ´ 309

                                                                                       =    1545.00 million

 

Total      =    Tk. 23882.6 million

 

3% incremental operating cost        =    Tk. 716.478 million

Total Tk.   = 24,599.08 million

   

      Say,      Tk. 24,600.00 million

 

Part F:   Institutional capacity building and technical assistance

The estimated cost for institutional capacity building and technical assistance including 3% for incremental operating cost is BDT 450 million approximately.

 

Part G:   Solar LED street lighting for 64 ULBs (6 City Corporations + 58        district H/Qs)

Estimated cost is shown in the following Table:

 

Sl No.

Description of Infrastructure Development

Unit

Quantity

Unit Rate

TK.

Total Amount (mill-Tk)

Number of ULBs

 

1

Solar LED Street Lighting with poles, double/single arms, controller, PV panels, rechargeable batteries, and other accessories;

DCC-2000 unit

CCC-1000 unit

4 C. Corp.-2000 unit

H/Q Pou.-8700 unit ( 58X 150)

Set

13700

200000

2740

64

 
 

 

 

 

Sub-Total

2740

 

 

Add 3% for incremental operating cost

82.2

 

 

Total

2822.2

 

 

 

Part H:   Construction of slaughter houses with modern & appropriate technology in 6 City Corporations:

Estimated cost is shown in the following Table:

 

Sl No.

Description of Infrastructure Development

Unit

Quantity

Unit Rate TK.

Total Amount (Mil-Tk)

Number of ULBs

 

1

Construction of slaughter houses with modern Technology

DCC- 150 Nos.

CCC- 90 Nos.

RCC- 20 Nos.

KCC- 20 Nos.

BCC- 10 Nos.

SCC- 10 Nos.

Each

300

2000000

 

600

 

 

6 City Corp.

 
 

 

 

 

Sub-Total

600

 

 

Add 3% for incremental operating cost

18

 

 

Total

618

 

 

 

Part I:     Digitalization of 6 City Corporations and 309 municipalities:

Estimated cost is shown in the following Table:

 

Sl No.

Description of Infrastructure Development

Unit

Networking Utilities

Unit Rate

Mill-Tk

Total Amount

Mill-Tk.

Number of ULBs

 

1

Digital Networking among ULBs including BMDF

 

City Corporation - 6 Nos.

Municipalities    -309 Nos.

LS

315

DCC-100

CCC-50

RCC-20

KCC-20

SCC-20

BCC-20

309 municipalities-10 mill/ULB

3320

 

315

 
 

 

 

 

Sub-Total

3320

 

 

Add 3% for incremental operating cost

99.6

 

 

Total

3419.6

 

 

 

 

For Part J: Solar-based power supply to ULB office buildings (Pilot based, 50 ULBs)

Estimated cost is shown in the following Table:

 

Sl No.

Description of Infrastructure Development

Unit

Unit Rate

Mill-Tk

Total Amount

Mill-Tk.

Number of ULBs

1

Installation of solar panel in 50 ULB office buildings

LS

3.5 mill/ULB

150

50

 

 

Sub-Total

150.00

 

Add 3% for incremental operating cost

4.50

 

Total

154.50

 

 

For Part K: Preservation, development, and functioning of the environmental elements (such as water bodies, woods and forests, hills etc.)

Estimated cost is shown in the following Table:

 

Sl No.

Description of Infrastructure Development

Unit

Unit Rate

Mill-Tk

Total Amount

Mill-Tk.

Number of ULBs

1

Excavation and re-excavation of water bodies, canals and drains and making them functioning located in around 300 ULBs

LS

20.0 mill/ULB

 

6000

 

300

 

 

Sub-Total

6000.00

 

Add 3% for incremental operating cost

180

 

Total

6180

 

 

For Part L: Community-based infrastructure development plan and implementation (for 80 ULBs, C-class with some B-class)

Estimated cost is shown in the following Table:

 

Sl No.

Description of Infrastructure Development

Unit

Unit Rate

Mill-Tk

Total Amount

Mill-Tk.

Number of ULBs

1

Preparation of infrastructure plan and implementation of 80 ULBs

LS

30.0 mill/ULB

 

2400

 

80

 

 

Sub-Total

2400.00

 

Add 3% for incremental operating cost

72.00

 

Total

2472.00

 

 

 

Part M:  Municipal healthcare projects (for A+ , A, and some B class ULBs)

Estimated cost is shown in the following Table:

 

Sl No.

Description of Infrastructure Development

Unit

Quantity

Unit Rate

TK.

Total Amount

(mill-Tk)

Number of ULBs

1

Development of the infrastructure

Each

100

20.00

20000.0

100

 

 

 

Sub-Total

2000.00

 

 

Add 3% for incremental operating cost

60.00

 

 

Total

2060.00

 

Part N:   Water supply and sanitation service to educational institutions (for A+, A, and some B class ULBs)

Estimated cost is shown in the following Table:

 

Sl No.

Description of Infrastructure Development

Unit

Quantity

Unit Rate

TK.

Total Amount

(mill-Tk)

Number of ULBs

1

Sinking of deep tubewell and/or laying out of water distribution lines and construction of toilets facilities

Each

100

18.00

1800.0

100

 

 

Sub-Total

1800.00

 

Add 3% for incremental operating cost

54.00

 

 

Total

1854.00

 

 

The summary of the project cost against 14 parts is shown below:

                                                                                                                                             Amount in million

Sl No.

Component

Estimated Cost

Taka

US$

1.

Part A:

Infrastructure development in the municipalities and City Corporations (including 3% incremental operational cost)

14656.90

198.55

2.

Part B:

Municipal income-generating projects for 309 ULBs

 (including 3% incremental operational cost)

15313.66

207.45

3.

Part C:

Municipal infrastructure maintenance projects (MIMP)

21654.72

293.34

4.

Part D:

Construction of a multipurpose office building for BMDF

800.00

10.84

5

Part E:

Solid waste management in the urban areas (including 1.5% incremental operational cost)

24600.00

333.24

6

Part F:

Institutional capacity building and technical assistance (including 3% incremental operational cost)

450.00

6.10

7

Part G:

Solar LED street lighting for 64 ULBs (6 City Corporations + 58 district H/Qs) (including 3% incremental operational cost)

2822.20

38.23

8

Part H:

Construction of slaughter houses with modern & appropriate technology in 6 City Corporations (including 3% incremental operational cost)

618.00

8.37

9

Part I:

Digitalization of 6 City Corporations and 309 municipalities (including 3% incremental operational cost)

3419.60

46.32

10

For Part J:

Solar-based power supply to ULB office-buildings (Pilot based, 50 ULBs)

154.50

2.09

11

For Part K:

Preservation, development, and functioning of the environmental elements (such as water bodies, woods and forests, hills. Etc.)

6180.00

83.72

12

For Part L:

Community-based infrastructure development plan and implementation (for 80 ULBs)

2472.00

33.49

13

Part M: 

Municipal healthcare projects (for A+ , A, and some B class ULBs)

2060.00

27.91

14

Part N: 

Water supply and sanitation service to educational institutions (for A+, A, and some B class ULBs)

1854.00

25.12

Total

97,055.58

1,314.76

1 US$ = BDT 73.82 (As on June 12, 2011)

 

 

 

 

 

 


 

 


        Annexure-ii

 

Summary of the Preliminary Development Project Proforma (PDPP) for Aided Project

 

1.    Project Title: Block Fund for BMDF for Participatory Urban Development

 

2.          i)  Sponsoring Ministry: Banks & Financial Institutions Division, Ministry of Finance, GoB

ii) Executing Agency: Bangladesh Municipal Development Fund (BMDF)

 

  3. Expected dates of commencement and completion:

 

(i) Commencement    : July 2011

 

(ii) Completion             : June 2015

 

4. Relevance of the proposal with concerned sectoral allocation: In the national budget 2008-2009, there is a provision for the allotment of Taka 2,945.60 million as foreign loan under the economic code 3-0964-3996-7321 for BMDF.

 

5.    Main Objectives and brief description of the project:

 

          i.    to improve the quality of life of the urbanities;

         ii.    to expand the opportunities for Income Generating Activities in the urban areas;

        iii.    to extend business, communication, transportation, and living conditions in the urban areas;

       iv.    to promote a planned township through a detailed Master Plan;

        v.    to extend health and social facilities in the towns;

       vi.    to increase the capacity of environmental management;

      vii.    to improve solid waste management in the municipal areas;

     viii.    to introduce alternative sources of energy;

       ix.    to introduce digital technology to the ULBs for developing data base management;

        x.    to create ULB’s participatory approach in development programs;

       xi.    to strengthen the institutional, financial, and development project managerial capacity of towns; and, above all,

      xii.    to change the ‘spoon-feeding’ attitude and dependency upon the government by empowering the ULBs financially with an aim to shoulder the development responsibilities from their own resources.

After having successful implementation of the huge amount of work in 114 ULBs that involves the expenditure of US$ 64 million efficiently and in a transparent manner, BMDF has received a lot of attention from many other ULBs. The demand from ULBs includes both revenue-generating and non-revenue generating sub-projects. BMDF has sorted out the proposed sub-projects and divided them into fourteen categories: (a) Infrastructure development in the municipalities and City Corporations, (b) Municipal income-generating project for 309 ULBs, (c) Municipal infrastructure maintenance project (MIMP), (d) Construction of multipurpose office-building for BMDF, (e) Solid waste management in the urban areas, (f) Institutional capacity building and technical assistance, (g) Solar LED street lighting for 64 ULBs, (h) Construction of slaughter houses with modern & appropriate technology in 6 City Corporations, (i) Digitalization of 6 City Corporations and 309 municipalities, (j) Solar-based power supply to ULB office-buildings (Pilot based 50 ULBs), (k) Preservation, development, and functioning of the environmental elements (such as water bodies, forest areas, hills etc.), (l) Community-based infrastructure development plan and implementation (for 80 ULBs), (m) Municipal healthcare project (for A+, A, and some B class ULBs), and (n) Water supply and sanitation service to educational institution (for A+, A, and some B class ULBs).

Typical sub-project demand for non-revenue generating category consists of the construction and improvement of urban roads, surface drains, and sanitation improvement while the revenue-generating category includes construction of bus/truck terminals, community centers, water supply and water treatment plants, children’s parks, kitchen markets, slaughter houses, etc.

 

6.    Relevance of the project to the short /medium /long term policies / plans / programs, etc:

The main objective of the organization is to achieve economic and social development of the country by strengthening the institutional and functional capacity of the ULBs and by improving resource allocation through widening income-generating activities. Now, it can be said with confidence that BMDF, since its inception, has been working successfully in different areas in accordance with the issues raised in the Millennium Development Goals (MDGs) of the UN and the ‘Poverty Reduction Strategy Paper’ (PRSP), which is known as the National Strategy for Accelerated Poverty Reduction, by the GoB, for sustainable development and alleviation of poverty in the urban areas.

 

7.    Relevance with other development programs of the concerned sector:

The Local Government Engineering Department (LGED) and the Department of Public Health Engineering (DPHE) implemented similar types of work. However, in this situation only BMDF uses participatory approach while others do not.

 

8.    Expected socio-economic benefits of the project:

It will be shown in the individual ULB-wise Sub-Project Appraisal Reports (SPARs).

 

9.    (i) Estimated amount of the cost of the proposed project: 9,70,555.8 Lakh

 

The estimated amount of different components of the proposed block fund is shown in the table below:

 

The summary of the project cost against 14 parts is shown below:

                                                                                                                                             Amount in million

Sl No.

Component

Estimated Cost

Taka

US$

1.

Part A:

Infrastructure development in municipalities and City Corporations (including 3% incremental operational cost)

14656.90

198.55

2.

Part B:

Municipal income-generating project for 309 ULBs  (including 3% incremental operational cost)

15313.66

207.45

3.

Part C:

Municipal infrastructure maintenance project (MIMP)

21654.72

293.34

4.

Part D:

Construction of a multipurpose office-building for BMDF

800.00

10.84

5

Part E:

Solid waste management in the urban areas (including 1.5% incremental operational cost)

24600.00

333.24

6

Part F:

Institutional capacity building and technical assistance (including 3% incremental operational cost)

450.00

6.10

7

Part G:

Solar LED street lighting for 64 ULBs (6 City Corporations + 58 district H/Qs) (including 3% incremental operational cost)

2822.20

38.23

8

Part H:

Construction of slaughter houses with modern & appropriate technology in 6 City Corporations (including 3% incremental operational cost)

618.00

8.37

9

Part I:

Digitalization of 6 City Corporations and 309 municipalities (including 3% incremental operational cost)

3419.60

46.32

10

For Part J:

Solar-based power supply to ULB office-buildings (Pilot based, 50 ULBs)

154.50

2.09

11

For Part K:

Preservation, development, and functioning of the environmental elements (such as water bodies, woods and forests, hills. etc)

6180.00

83.72

12

For Part L:

Community-based infrastructure development plan and implementation (for 80 ULBs)

2472.00

33.49

13

Part M: 

Municipal healthcare project (for A+ , A, and some B class ULBs)

2060.00

27.91

14

Part N: 

Water supply and sanitation service to educational institutions (for A+, A, and some B class ULBs)

1854.00

25.12

Total

97,055.58

1,314.76

1 US$ = BDT 73.82 (As on June 12, 2011)

Total: 9,70,555.8 Lakh

       

 

 

(ii) Nature of foreign assistance (loan/ grant/others): Loan and/or grant.

 

10.  Possible sources of foreign assistance:

 

  • Infrastructure development in municipalities and City Corporations (Part A): IDA may be requested for further allotment to its running project under IDA Credit # 4761-BD.
  • Municipal income-generating project for 309 ULBs (Part B): ADB may be requested to come up with assistance.
  • Municipal infrastructure maintenance project (MIMP) (Part C): For 309 municipalities and 6 City Corporations, ADB, IDA, AusAID, CIDA, DFID, GIZ, JICA, SIDA, UNDP, WSP-South Asia, etc. can be requested for providing financial assistance.
  • Construction of a multipurpose office-building for BMDF (Part D):  Assistance from UNDP, JICA, GIZ and DFID may be sought for providing assistance for the construction of a multipurpose office building for BMDF.
  • Solid waste management in the urban areas (Part E): WSP (Water and Sanitation Program) of World Bank, ADB, GIZ may be requested for cooperation in this field.
  • Institutional capacity building and technical assistance (Part F): Assistance from GIZ and DFID may be sought for their assistance.
  • Solar LED street lighting for 64 ULBs (Part G): IDA and ADB assistance may be sought for the installation of Solar LED Street Lighting in the proposed ULBs.
  • Construction of slaughter houses with modern & appropriate technology in 6 City Corporations (Part H): Assistance from ADB and GIZ may be sought for the construction of slaughter houses with modern appropriate technology at the proposed ULBs.
  • Digitalization of 6 City Corporations and 309 municipalities (Part I): Assistance from IDA and UNDP may be sought for the digitalization of the proposed ULBs with an aim to get in touch with the government’s vision of “Digital Bangladesh”.
  • Solar-based power supply to ULB office-buildings (Pilot based, 50 ULBs, Part J): Assistance from ADB, GIZ and JICA may be sought for empowering ULB office buildings through solar panel.
  • Preservation, development, and functioning of the environmental elements (such as water bodies, woods and forests, hills etc) (Part K): Assistance may be sought from Water and Sanitation Program (WSP), UNDP, GIZ and JICA for preserving the environment and for helping the people’s in this efforts for their adaptation to climate change.
  • Community-based infrastructure development plan and implementation (for 80 ULBs) (Part L): Assistance may be sought from ADB, UNDP, and GIZ for preparing participatory community-based infrastructure plans and implementation.
  • Municipal health care project (for A+, A, and some B class ULBs) (Part M): Assistance may be sought from WHO, ADB, IDB, GIZ, DFID and UNDP for providing fund for infrastructure development in order to support healthcare service.
  • Water supply and sanitation service to educational institutions (for A+, A, and some B class ULBs) (Part N): WSP (Water and Sanitation Program) of World Bank,  ADB and GIZ can be requested for developing water supply and sanitation facilities in different educational institutions.

Assistance from other development agencies like AusAID, CIDA, IDB, KFD, KOICA, SFD, SIDA, UNDP, etc. may also be sought in this regard.

 

11.  Is there any proposal to undertake feasibility study for the project? Yes. As of the existing practice, feasibility study in the form of Sub-Project Appraisal Reports (SPARs) is a mandatory prerequisite criterion for BMDF funding. Feasibility study of ULB-wise sub-project will be undertaken by independent consultants.

 

12.  Any other relevant information: At present, IDA is the development partner of BMDF. IDA has suggested that BMDF seek funds from other development partners.

 

 


Signature of officer

Responsible for the preparation of the PDPP

with seal and date:

Sl No.