According to the Bank’s website, on 24 October 2017, the Asian Development Bank (ADB) Board of Directors approved a multitranche financing facility (MFF) of $1,200 million to the People's Republic of Bangladesh for the South Asia Subregional Economic Cooperation (SASEC) Dhaka-Northwest Corridor Road Project, Phase 2. The executing agency is the Roads and Highways Department (RHD) of the Ministry of Road Transport and Bridges. The project improves the road connectivity of the Dhaka-Northwest international trade corridor. Three outputs will be delivered: (i) Elenga-Hatikamrul-Rangpur Road of the Dhaka-Northwest international trade corridor upgraded; (ii) RHD's institutional capacity in road operation and management enhanced; and (iii) road safety and gender-responsive features strengthened, and the cost overrun financed for the Joydeypur-Chandra-Tangail-Elenga Road of the Dhaka-Northwest international trade corridor under the SASEC Road Connectivity Project. The availability period of the MFF is up to 31 August 2027.

Environmental Aspects (category B): The road operation units (ROUs) and the entire corridor of the Elenga-Hatikamrul-Rangpur Highway were visited by ADB staff during tranche 4 factfinding mission. Environment safeguards compliance is generally satisfactory. Gaps on manpower complement, occupational and community health and safety, compensatory afforestation, and grievance redressal and measures to address these concerns were agreed with RHD. Most major works are completed, except for the Hatikamrul Interchange and a few flyovers and bridges. Monitoring reports are regularly submitted. The IEEs and EARF prepared in previous tranches remain valid. Community consultations are also regularly conducted.

Involuntary Resettlement (category A): The MFF is categorized A for involuntary resettlement. The executing agency prepared six resettlement plans for the Elenga-Hatikamrul section, the Hatikamrul interchange, and the Hatikamrul-Rangpur section. Three resettlement plans are for land acquisition and titled impacts; three are to mitigate non-titled impacts. No displacement occurred until the compensation process was completed. The current scope, including the variations to be funded by tranche 4, are not anticipated to cause any additional involuntary resettlement impacts. All upgrades will involve completion of ongoing works contracts and capacity building. The remaining resettlement plan implementation works must comply with ADB requirements. ADB conducted due diligence for social safeguards, including review of semiannual monitoring reports. These assessments show slow progress in land acquisition during Tranche 1 and 2, because of the nationwide lockdown for COVID-19. With 99% of land already handed over to the contractors, RHD expects the remaining handover process to be completed by June 2025.

Indigenous Peoples (category C): The road alignment, including contract variations, does not affect customary lands. Socioeconomic survey and inventory of loss survey for preparation of resettlement plans confirmed that no indigenous peoples communities will be affected.

ADB agrees to lend to the Borrower from ADB's ordinary capital resources an amount of two hundred and four million Dollars ($204,000,000), such amount may be converted from time to time through a Currency Conversion in accordance with the provisions of the Loan Agreement. The Loan has a principal repayment period of 20 years.

For the Borrower:

Economic Relations Division
Ministry of Finance
Government of the People's Republic of Bangladesh
Sher-e-Bangla Nagar
Dhaka 1207, Bangladesh
Facsimile Number: +880 2 918-0788

For ADB:

Asian Development Bank
6 ADB Avenue
Mandaluyong City
1550 Metro Manila
Philippines
Facsimile Numbers: (632) 8636-2444