ICRR 11192 Report Number : ICRR11192 ICR Review Operations Evaluation Department 1. Project Data: Date Posted : 06/12/2001 PROJ ID : P009540 Appraisal Actual Project Name : Third Inland Water Project Costs 64.2 71.5 Transport US$M ) (US$M) Country : Bangladesh Loan /Credit (US$M) Loan/ US$M ) 45.0 51.2 Sector (s): Board: TR - Roads and Cofinancing 5.7 5.8 highways (86%), Central US$M ) (US$M) government administration (14%) L/C Number : C2232 Board Approval 91 FY) (FY) Partners involved : FINNIDA, Japanese Closing Date 06/30/2000 06/30/2000 Government Prepared by : Reviewed by : Group Manager : Group : Robert C. Varley George T. K. Pitman Alain A. Barbu OEDST 2. Project Objectives and Components a. Objectives Improve waterway safety and environmental controls; 1. Increase inland passenger transport capacity; 2. Improve capital asset utilization of BIWTC and reduce inland water freight transport costs; 3. Improve country boat operations and navigation 4. Improve the financial performance of Bangladesh Inland Water Transport Authority (BIWTA) and Bangladesh Inland Water Transport Corporation (BIWTC); and 5. Enhance institutional capacity for planning, policy formulation and training of inland vessel operators . b. Components Cost in ($ millions): - Dredging works (10.62); Upgrading navigation Aids (7.32); Provision of 100 pontoons and access bridges at landing stages (11.64); Provision of equipment for BIWTA and BIWTC (24.75); Technical assistance to BIWTA, BIWTC and the Department of Shipping (9.23); Supplemental drainage and rehabilitation after the 1998 Floods (7.94). c. Comments on Project Cost, Financing and Dates The Bank approved an additional credit of $ 6.2 million in 1999 to fund most of the supplemental work . 3. Achievement of Relevant Objectives: 1. Pontoons and access bridges were provided at 175 landing stations (exceeding the target of 100); 2. The improved access to rural areas has reduced berthing times by 50% and cargo handling costs by 25%; 3. Inland transport capacity has almost doubled; 4. Vessel delays were reduced by 20% and voyage times cut by 10%; 5. 918 of 1200 km of targeted waterways have been upgraded with navigation aids (buoys and beacons); 6. 12.5 million m3 of dredging works were completed, improving the least available depth on 3 critical waterway routes and improving access to critical inland terminals and facilities; 7. The ex-post ERRs of 26.6%, 20.7%, and 33.4 (for navigation aids, dredging improvements and rural pontoons) are well above the test rate of 10-15%. 4. Significant Outcomes/Impacts: 1. Lower operating costs led to reduced inland water freight transport rates; 2. Pontoons and jetties improved access and reduced costs for both poor passengers and small businesses; 3. Waterway safety and environmental controls were improved (impacting men more than women); 4. Freight tariffs have been deregulated; 5. Legislation has been enacted and a new Inland Ship Safety Rules Administration (ISSA) is being established; 6. New equipment and buildings have enabled BIWTC to provide ship repair services and better service quality . 5. Significant Shortcomings (including non-compliance with safeguard policies): 1. There were prolonged and significant delays in implementation; 2. Low quality at entry due to lack of ownership by stakeholders and weak institutions; 3. Quality at entry was also incompletely assessed and monitoring indicators were not quantified to permit later tracking; 4. The implementation of institutional and financial recovery action plans by BWITA /BWITC was unsatisfactory; 5. Only 3 of 5 Country Boat Centers have been completed and these are not yet operational; 6. BIWTA's financial performance actually deteriorated during the project; 7. BIWTC failed to make all promised staff and fuel cost reductions; 8. The project failed to predict the significant loss of BIWTC traffic to the newly opened Jamuna Bridge in 1998; 9. The 5 new BIWTC profit centers do not yet have full administrative, managerial and financial powers . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory Institutional Dev .: Negligible Modest Through attrition BIWTC shed 30% of its staff between 1990 and 2000, and did not replace them. This is a not negligible institutional development for Bangladesh . Sustainability : Unlikely Unlikely Bank Performance : Satisfactory Satisfactory Borrower Perf .: Unsatisfactory Unsatisfactory Quality of ICR : Satisfactory NOTE ICR rating values flagged with ' * ' don't comply with OP/BP 13.55, but are listed for completeness. NOTE: 7. Lessons of Broad Applicability: The five "lessons learned" are broadly applicable but hardly news - (i) The need for thorough planning and a participatory process; (ii) Continuity of personnel and close monitoring are needed; (iii) Empowerment of the Implementing Agency is necessary; (iv) An enhanced private sector role is required; and (v) Commitment to reform is essential. 8. Assessment Recommended? Yes No 9. Comments on Quality of ICR: Good - concise and clear. Addresses most issues.