The World Bank Integrated Corridor Management Dhaka North Project (P177702) Project Information Document (PID) Concept Stage | Date Prepared/Updated: 21-Jun-2022 | Report No: PIDC33491 May 23, 2022 Page 1 of 10 The World Bank Integrated Corridor Management Dhaka North Project (P177702) BASIC INFORMATION A. Basic Project Data OPS TABLE Country Project ID Parent Project ID (if any) Project Name Bangladesh P177702 Integrated Corridor Management Dhaka North Project (P177702) Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) SOUTH ASIA Jan 11, 2023 Sep 26, 2023 Transport Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Economic Relations Division Dhaka North City Corporation (DNCC) Proposed Development Objective(s) The Project Development Objectives are to improve accessibility for public transport users in selected corridors and to strengthen institutional capacity for urban transport management and interinstitutional coordination. PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 155.00 Total Financing 155.00 of which IBRD/IDA 150.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 150.00 IDA Credit 150.00 Non-World Bank Group Financing Counterpart Funding 5.00 Borrower/Recipient 5.00 May 23, 2022 Page 2 of 10 The World Bank Integrated Corridor Management Dhaka North Project (P177702) Environmental and Social Risk Classification Concept Review Decision Substantial Track II-The review did authorize the preparation to continue Other Decision (as needed) B. Introduction and Context Country Context 1. Bangladesh has made rapid social and economic progress in recent decades and reached a lower middle-income status in 2015. Officially reported annual growth of gross domestic product (GDP) averaged close to 6 percent since 2000. Strong labor market gains contributed to a sharp decline in poverty, with the national poverty rate falling from 48.9 to 24.5 percent between 2000 and 2016, while extreme poverty declined from 34.3 to 13.0 percent.1 However, the pace of poverty reduction slowed in recent years even as growth accelerated, particularly in urban areas and in the west of the country. Similarly, the progress on shared prosperity slowed between 2010 and 2016 after a decade of improvements, with annual consumption growth of the bottom 40 percent trailing that of the overall population (1.2 versus 1.6 percent). In the medium to long term, the Government of Bangladesh aims to achieve an upper middle-income country (UMIC) status by 2031 as outlined in the Long-Term Perspective Plan (LTPP) 2021-2041 and Eighth Five- Year Plan (8th FYP) 2021-2025. 2. Dhaka is Bangladesh's largest and most industrialized city, and it's administrative, commercial, and cultural capital. It has experienced remarkable growth in the past decades. Its population grew from 3.3 million in 1980 to 21 million in 20202. With an estimated population density of 29,000 persons per square km, Dhaka is the world’s sixth most densely populated city3. Home to one-tenth of the country’s population, Dhaka generates at least one-fifth of its total economic output and provides more than 40 percent of its formal sector jobs4. Dhaka has been instrumental in reducing Bangladesh’s poverty rate. The economic opportunities it offers attract migrants from around the country, improving their living standards and those of the families they support through the money they send home4. Tax revenue generated in Dhaka is used to finance investments and service delivery throughout the country. 3. Dhaka faces unprecedented challenges associated with rapid urbanization. Population growth has far outpaced the capacity of urban infrastructure. This coupled with poor quality of existing infrastructure, ineffective governance, and relatively weak institutional capacity results in low levels of efficiency and 1 Household Income and Expenditure Surveys, 2000/01 and 2016/17. 2 Source: https://data.worldbank.org/indicator/EN.URB.LCTY?locations=BD 3 Source: https://www.worldatlas.com/articles/the-world-s-most-densely-populated-cities.html 4 2018. Toward Great Dhaka. World Bank. May 23, 2022 Page 3 of 10 The World Bank Integrated Corridor Management Dhaka North Project (P177702) shortages of infrastructure and services. Dhaka faces several challenges, including debilitating traffic congestion, water logging, and lagging public service delivery, especially in the city’s poor areas. Despite large investments to upgrade the city’s transport infrastructure in the last decade, traffic congestion is worsening, resulting in an estimated 3.2 million working hours lost each day and billions of dollars of economic loss every year4. In addition, Dhaka remains vulnerable to flooding, especially during the monsoon season. Further, public service delivery is uneven. More than a fourth of its inhabitants live in slums, and pollution and environmental degradation are increasing. As a result, Dhaka is ranked as the fourth least livable city in the world5. If these challenges are not addressed, it will be difficult for Dhaka to become a prosperous global city, and therefore difficult for Bangladesh to achieve an upper middle-income country (UMIC) status by 2031. 4. The COVID-19 pandemic has put the substantial poverty reduction gains of the past decade at risk, and vulnerability to economic shocks has risen. The pandemic caused major disruptions to economic activity in FY20 and FY21. Real GDP growth decelerated to 3.4 percent in FY20. Estimated poverty increased from 12.1 percent in FY19 to 12.5 percent in FY20, using the international poverty rate ($1.9 in 2011 PPP). As growth strengthened in FY21, household surveys point to a gradual recovery in employment and earnings. Estimated poverty declined modestly to 11.9 percent from 12.5 percent in FY20 and food security improved across the country. The economy is expected to continue to recover gradually as Bangladesh navigates the persistent effects of COVID-19 on domestic and export markets. Sustaining the economic recovery and further reducing poverty will largely depend on how urban centers, such as Dhaka, continue to improve public infrastructure and service delivery to create economic opportunities for the citizens and encourage economic activities for the businesses. 5. Bangladesh is extremely vulnerable to the effects of climate change. The Global Climate Risk Index ranks Bangladesh as the world’s seventh most affected country over the period 2000 to 2019. 6 Rising temperatures lead to more intense and unpredictable rainfalls during the monsoon season and a higher probability of catastrophic cyclones are expected to result in increased tidal inundation. It is estimated that a one-meter rise in sea levels would submerge 18 percent of arable land in coastal areas.7 Recent studies estimate that by 2050 Bangladesh could have 13.3 million internal climate migrants.8 Additional rural-urban migration would have significant consequences for air and water pollution and unsustainable consumption of natural resources while putting additional pressure on urban centers. Addressing climate risks is increasingly urgent to ensure sustainable economic development of Bangladesh and major cities, such as Dhaka. Sectoral and Institutional Context 6. After three decades of rapid growth and urbanization, Dhaka faces serious challenges, such as increasing shortages of transport infrastructure and services and the resulting severe traffic congestion and substantial air pollution. From 2011 to 2017, Dhaka's population increased from 15 to 5 Source: https://www.eiu.com/n/campaigns/global-liveability-index-2021/ 6 Germanwatch (2021) Global Climate Risk Index 2021. 7 UNFCC (2007) United Nations Framework Convention on Climate Change. 8 World Bank (2018) Groundswell: Preparing for Internal Climate Migration. May 23, 2022 Page 4 of 10 The World Bank Integrated Corridor Management Dhaka North Project (P177702) 19 million and registered automobiles doubled from 73,000 to 140,0009. Yet, the road network remains underdeveloped with less than 12 percent of roads of a primary standard quality suitable for bus services10. At 47%, the bus is the primary travel mode for Dhaka residents because most households do not own a car, motorcycle, or bicycle10. However, bus service is fragmented, underregulated, inefficient, and prone to accidents. Other popular modes of travel are rickshaw (16%), private car (11%), motorcycle (8%), and walking (5%)10. Mode share of cycling and associated infrastructure is negligible. In addition, traffic management in Dhaka is weak with only a handful of traffic lights operating in the city. All travel modes, including buses, cars, and rickshaws, do not stay within a travel lane, instead, the vehicles circulate, stop, and park wherever is convenient. With the increasing number of automobiles, very limited space, and a lack of demand management strategies, parking is becoming a problem in Dhaka for all road users. 7. The shortage and fragmentation of transport infrastructure and services compounded by poor traffic management contributed to Dhaka becoming one of the most congested cities in the world and deteriorating accessibility for the poor to access public services and economic opportunities. According to Bangladesh Road Transport Authority (BRTA), there are 9000+ public transport vehicles in Dhaka, operating 290 routes that are authorized without proper technical assessment. Ownership of these public transport vehicles is very fragmented, with only three companies having more than 100 buses. The average driving speed has dropped from 21 km/h 10 years ago to less than 7 km/h today11. It is estimated that traffic congestion resulted in the loss of more than eight million working hours per day12. In addition, traffic congestion contributed to dangerous levels of air pollution, for instance, PM 2.5 concentration in Dhaka was 158 µg/m3 in 2014, which is at least twice higher than the World Health Organization’s standard of 20 µg/m3 to 70 µg/m3. Improving transport infrastructure and services become increasingly urgent because of its direct impact on residents in Dhaka especially the low and middle-income population and the city’s long-term vitality and sustainability. 8. To tackle traffic congestion and modernize transport infrastructure and services, the Government of Bangladesh (GoB) has embarked on an ambitious public works program. The first comprehensive transport plan for Dhaka, the Strategic Transport Plan (STP), was prepared in 2005 as a component of the World Bank financed Dhaka Urban Transport Plan (DUTP). The STP set out a 20-year transport strategy (2005–25) for Dhaka, envisioning a US$5.5 billion investment in transport projects, including three MRT lines, three bus rapid transport (BRT) routes, an elevated expressway, and numerous main road improvements. By 2015, substantial road improvements had occurred, and some new main roads had been built, but the major transport investments envisioned by the STP had not happened. Subsequently, in 2016, the STP was revised (RSTP) for the 2015-35 time horizon. The RSTP envisioned an expanded network of five MRT lines, two BRT lines, three ring roads, eight radial roads, six expressways, 21 transportation hubs, and improvements to the circular waterways around Dhaka. 9. Construction of the first MRT line (MRT-6) financed by JICA and BRT (BRT-3 North) financed by ADB began in 2016 and 2018, respectively. Commercial operation of the first sections of MRT-6 and BRT- 3 North is expected in December 2022. MRT-6 is an elevated metro rail. It follows the alignment of the Begum Rokeya corridor, a major north-south arterial on the western side of Dhaka that connects large 9 Bangladesh Road Transport Authority 10 World Bank data. 11 2018. Toward Great Dhaka. World Bank. 12 Source: https://www.dhakatribune.com May 23, 2022 Page 5 of 10 The World Bank Integrated Corridor Management Dhaka North Project (P177702) residential areas (e.g., Uttara), commercial areas (e.g., Farmgate), government offices (e.g., Agargaon), education institutions (e.g., Dhaka University), health care institutions, and Old Dhaka. Although MRT has the potential to transform mobility in Dhaka, its success will largely depend on the extent to which it is implemented with an integrated transport perspective in which the user’s affordable and convenient access is at the center. BRT-3 North will provide a north-south connection on the eastern side from Gazipur, a thriving industrial city 25-km north of Dhaka, to the international airport. BRT-3 South is planned for a north- south connection on the easter side of Dhaka between the airport and the downtown and old town areas. It is under preparation. To optimize the mobility and accessibility improvements introduced by MRT-6 and BRT-3 North, an efficient and integrated east-west connection between the two lines needs to be in place. This is so that BRT-3 North passengers will have direct access to MRT-6 for reaching the commercial areas, government offices, health care and education institutions, and other destinations on the western side of Dhaka. 10. The city of Dhaka is under the jurisdiction of two city corporations (CCs): Dhaka South and Dhaka North City Corporations (DSCC and DNCC), both are subnational governments under the Ministry of Local Government, Rural Development and Cooperatives (MLGRDC). At the corporation level, the mayor, the chief executive officer, and the secretary are the most senior officers. The mayor is elected by popular vote for a five-year term and operates under the leadership of MLGRDC. The Dhaka CCs are solely responsible for planning and building connector and local roads within their jurisdictions. 11. Although DNCC has a limited mandate over urban mobility beyond local roads, in recent years it has taken several initiatives to modernize infrastructure to improve the quality of life of its residents. DNCC is responsible for planning and implementation of roads, footpaths, construction of bus terminals, installation of traffic signals, licensing of cycling rickshaws, management of street vendors, and parking management among others. However, DNCC is not responsible for public transport policies, public transport provision, fare collection, road safety, urban rail, issuing bus licenses, traffic signal operation, traffic enforcement, land-use planning, etc. This makes DNCC – or any other agency in GoB – a limited entry point for comprehensive urban mobility reform. Nevertheless, within its scope DNCC is trying to champion progressive agendas such as: (i) transit-oriented development and travel demand management; (ii) designated bicycle lanes; (iii) restoration of clogged and severely polluted canals, and the creation of a multi- use bike and walking path along the canals for community recreation and commuting; and (iv) adoption of technology, such as electric vehicle for bus services. Under the proposed project DNCC seeks to enhance the impact of infrastructure implemented by DMTCL (MRT network) by investing in user accessibility along and to the MRT6 corridor. 12. However, the success of these efforts would strongly lie in DNCC's ability to coordinate in an environment of almost unprecedented institutional fragmentation. In Dhaka, seven ministries and 13 agencies are involved in building transport infrastructure, managing traffic, regulating vehicles, and providing transport services. With some exceptions, agencies tend to work in silos and a lack of coordination hampers the successful implementation of transportation improvement projects. However, some central government agencies work at the metropolitan level by assuming key urban management functions within the jurisdiction of Dhaka CCs, thereby tackling metropolitan scale planning and reform efforts. Some examples include the Dhaka Transport Coordination Authority (DTCA) and RAJUK which are responsible for metropolitan development and regulation under the Ministry of Housing and Public Works. Others are institutions with a national scope but with special relevance to Dhaka, such as the Roads and Highways Department (RHD). May 23, 2022 Page 6 of 10 The World Bank Integrated Corridor Management Dhaka North Project (P177702) 13. DTCA, formally known as Greater Dhaka Transport Planning Coordination Board, was created with the ambition of an overall transport planning and coordination body for the Dhaka metropolitan area. However, despite an ambitious strategic planning mandate, a lack of internal capacity and resources has limited its ability to accomplish some of the most transformative projects under its scope. Reform of the bus sector is urgent and paramount for improving the mobility of the majority, and for the user to capture the benefits of recent investments in urban transport. The “Bus Route rationalization and Operation of Bus Services on Company Basis in Dhaka� project co-chaired between DNCC and DSCC and with DCTA as secretariat, started in 2018 and sought to reform the underregulated bus system in metropolitan Dhaka. The goal was to reduce the fragmentation of the sector and consolidate de 290+ routes into 42 bus routes, 9 routes clusters, and 22 companies. Although as of today, there is one promising example of a route between Ghatarchar and Kanchpur that has been restructured in 2021 – fleet rationalized, a joint agreement between operators signed, bus stops implemented, fare collection integrated, offboard payment enabled, vehicles improved, etc., the model yet needs to be made more robust, replicated and scaled up at a substantially faster pace. The collaboration between DTCA and DNCC/DSCC around bus reform could become the kernel of integrated metropolitan urban transport service delivery. Relationship to CPF 14. The project aligns with the draft Country Partnership Framework (CPF) FY23-27 Objective 6: strengthened local governance to promote spatially balanced development with broader private sector participation by improving local government institutions’ service delivery, enhancing access to basic infrastructure services, such as transport, promoting private sector participation, and addressing urban congestion and pollution. Further, the project aligns with the GoB’s 8th FYP core theme 4 - building a sustainable development pathway resilient to disaster and climate change. Lastly, the Project further aligns with the Bank’s analytical work and stakeholder engagement consultations where it was found that underinvestment in key infrastructure is a binding constraint to growth. C. Proposed Development Objective(s) 15. The Project Development Objectives are to improve accessibility for public transport users in selected corridors and to strengthen institutional capacity for urban transport management and interinstitutional coordination. Key Results (From PCN) 16. The project’s results framework will be finalized during project preparation. The proposed key results indicators are: (a) improvement in accessibility and user satisfaction (segregated by gender) in the pilot corridor; (b) reduction in average travel time in MRT-6 area of influence for public transport; (c) increased capacity of DNCC officials to manage urban mobility, (d) reduction in road accidents, (e) Improved carbon footprint of public transport on bus e-mobility pilot corridor, and (f) Improved coordination across agencies responsible for urban transport. May 23, 2022 Page 7 of 10 The World Bank Integrated Corridor Management Dhaka North Project (P177702) D. Concept Description Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 Yes Projects in Disputed Areas OP 7.60 No Summary of Screening of Environmental and Social Risks and Impacts . 17. The Project will include the construction of facilities for traffic management, safety, and bus priority lanes as well as repair/upgrading secondary, feeder roads along the Begum Rokeya Sarani corridor. The interventions will include the installation of additional traffic signals and mid-block push buttons for pedestrians, facilities and signage for pedestrians and cyclists, as well as the procurement of high-capacity buses and piloting the use of e-buses. Construction of a bicycle lane and walkway and restoration of the canal along Airport Road have also been planned. The proposed activities are expected to generate moderate to substantial ES risks and impacts primarily related to Occupational Health and Safety (OHS) concerns for contracted workers as well as to neighboring communities. Other risks and impacts are expected to include dust and noise emissions, soil and water pollution due to potentially hazardous material spills and silt runoff, generation and disposal of solid and liquid waste as well as traffic disruptions and road safety concerns due to the movement of construction equipment and vehicles. The Project area is located in an urban setting, which entails a significantly modified natural habitat and is unlikely to contain any critical habitat; project activities are expected to be undertaken largely within existing footprints, which are unlikely to directly contain cultural heritage or archaeological sites though houses of worship, graveyards, and old structures of cultural significance may be in the immediate vicinity. These impacts will be mostly temporary and reversible, During project operations, anticipated risks and impacts are related to road flooding, road safety (in particular for pedestrians and bikers), and accumulation of trash around transportation hubs. 18. The exact locations of the project activities and their design will be finalized during implementation stage. Therefore, the client will prepare an Environmental and Social Management Framework (ESMF), covering different typologies of project activities in consultation with all the stakeholders. Project intervention have taken the concept of inclusion of the vulnerable and the disadvantaged Community members and the disadvantaged people will be included in consultation for providing inputs on technical design features to be integrated (e.g. universal access features, gender-based conveniences) and the final design options, as well as providing inputs on safety security parameter. The ESMF will include screening criteria based on which sub-projects would be screened and the level of required due diligence and mitigation measures will be identified. Since the Gender Based Violence/Sexual Exploitation and Abuse/ Sexual Harassment GBV/SEA/SH risk is rated as Moderate, a GBV/SEA/SH Action Plan will be developed. The Project will also develop a Labor Management Procedure (LMP) to address labor-related issues and a SEP to identify May 23, 2022 Page 8 of 10 The World Bank Integrated Corridor Management Dhaka North Project (P177702) various stakeholders and to ensure participation of stakeholders during the full lifecycle of the Project. A Resettlement Policy Framework (RPF) will be prepared to address the issue of land acquisition (if any), and informal settlers. The project may require minimal private land acquisition, which will be confirmed before the project appraisal. An environmental and social commitment plan (ESCP) will be prepared, which will document all the agreed actions by the Bank and the client for assessing and managing ES risks. The ESCP will require the bidding documents to include ES provisions (including labor management, OHS, waste management, GBV/SEA/SH issues, etc) and the need for contractors for civil works to prepare their ESMP and LMP for their workers, and an Environmental, Social, Health and Safety Code of Conduct. The ESCP will include a commitment to developing a Traffic Management Plan for both the construction and operation phase of the project. . CONTACT POINT World Bank Hua Tan, Maria Catalina Ochoa Sepulveda Senior Transport Specialist Borrower/Client/Recipient Economic Relations Division Abdul Baki Additional Secretary abaki_23@yahoo.com Implementing Agencies Dhaka North City Corporation (DNCC) Brigadier General Amirul Islam Chief Engineer ce@dncc.gov.bd FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects May 23, 2022 Page 9 of 10 The World Bank Integrated Corridor Management Dhaka North Project (P177702) APPROVAL Task Team Leader(s): Hua Tan, Maria Catalina Ochoa Sepulveda Approved By APPROVALTBL Practice Manager/Manager: Country Director: Mercy Miyang Tembon 23-Jun-2022 May 23, 2022 Page 10 of 10