ADB to focus on four BD development needs
October 06, 2012 00:00:00
Shafiqul Islam Jibon
The Asian Development Bank (ADB) will provide support to Bangladesh with its focus on four major areas of development in the next three years.
"To mobilise enhanced co-financing, ADB will more actively engage with development partners. But the support will deepen in the areas of good governance, capacity development, gender equity, and the use of knowledge management to strengthen project quality," ADB said Wednesday in its updated Bangladesh Country Operations Business Plan (COBP) for the period between 2013 and 2015.
It also said the proposed country operations for 2013-2015 are consistent with the operational priorities of the CPS.
The CPS is aligned with the strategies and sector and thematic priorities of Bangladesh's Sixth Five-Year Plan, FY2011-FY2015 and ADB's Strategy 2020.
Between 2013 and 2015, the thrust of ADB's assistance will be on enhancing connectivity underpinning the development of economic corridors to support industry, trade, and regional cooperation, promoting energy security and energy efficiency to augment power supply in Bangladesh, as well as supporting reform to cut power utilities' losses.
The ADB will also help meet the Millennium Development Goals (MDGs) through interventions in water supply and sanitation that ensure better health and environment to underpin higher productivity and investment, strengthen secondary education and skills development to ensure better equipped human resources, address climate change through mitigation and adaptation investments, manage disaster risk, and support upstream reforms to promote private investment and infrastructure financing.
The indicative Asian Development Fund (ADF) planning figure for 2013-2014 period is $438 million per year in support for Bangladesh. However, the actual allocations for these years will be based on the updated estimate of ADF commitment authority and the results of the 2012 country performance assessment.
For 2015, the indicative ADF allocation is $450 million. The indicative ordinary capital resources (OCR) allocation for 2013-2015 is $410 million per year. The tentative annual technical assistance (TA) programme will be for $7.6 million for 2013-2015.
To promote regional cooperation, ADB will strengthen support for trade facilitation and develop transport connectivity. It will seek to enhance its activities in private sector development for the period between 2013 and 2015 through complementary support from public and private sector operations.
ADB's pioneering support for the government's public-private partnership (PPP) institutions and institutional framework initiated in 2011 will be expanded to solidify sustainable PPP operating capacity in sector line-ministries.
Energy Sector Improvement Project will be renamed the Power System Expansion and Efficiency Improvement Investment Programme and processed as a multitranche financing facility. The 2012 Second Public-Private Infrastructure Development Facility will be dropped from the pipeline (moved to 2013 standby) and the ADF and OCR funds allocated to it will be transferred to the Second Capital Market Development Programme.
The 2013 Piloting Improved Management of Muhuri Irrigation Project will be renamed the Irrigation Management Improvement Investment Programme.
The 2013 Skills for Employment Project will be renamed the Skills Development Investment Programme and its allocation will be reduced to $85 million.
The 2013 Regional Power Generation and Transmission Project will be renamed the Power System Expansion and Efficiency Improvement Investment Programme and its allocation will be raised to $310 million.
The 2013 Sub-regional Railway Investment Programme will be renamed the South Asia Sub-regional Economic Cooperation (SASEC) Railway Connectivity Investment Programme and shifted to 2015, and will be included in the 2014 pipeline.
The 2013 Coastal Towns Infrastructure Improvement Project will be moved to 2014, and the 2014 Railway Sector Investment Programme will be advanced to 2013.
The 2014 Major River Flood and Bank Erosion Risk Management Programme will be renamed the Flood Protection and River Bank Erosion Risk Management Investment Programme.
Additional financing for the South-West Integrated Water Resources Management Project will be processed as a part of the Irrigation Management Improvement Investment Programme, and the 2014 Secondary Towns Water Supply and Sanitation Project will be merged with the Third Urban Governance Infrastructure Improvement Project.
The 2014 Chittagong Urban Transport Improvement Project will be dropped from the pipeline.
The 2014 PPP in Higher Education Project will be dropped from the pipeline, and its $80 million in ADF resources will be reallocated to the Skills Development Investment Programe in 2014 and its $50 million in OCR to the new 2014 Gas Production and Transmission Development Investment Programme.
The 2014 Second Energy Sector Improvement Project will be renamed the Gas Production and Transmission Development Investment Programme with an allocation of $260 million from OCR.
The overall allocation for 2013-2015 period became slightly lower because of the reduced indicative ADF allocation for 2013-2014 compared with COBP, 2012-2014 figures.
Allocations for urban development declined significantly as 'the 2012 Greater Dhaka Sustainable Urban Transport Project' has been grouped under the transport sector.
The Chittagong Urban Transport Improvement Project was also dropped, while the 2014 Secondary Towns Water Supply and Sanitation Project merged with the Third Urban Governance Infrastructure Improvement Project, ADB mentioned in its Bangladesh's COBP.