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Background

Despite improvements in rural infrastructure, the share of Bangladesh’s rural population with access to all-weather roads and paved rural roads was lower than that of other South Asian countries at project appraisal.  Compared with 60% in India and 61% in Pakistan, only 37% of the country’s rural population had access to all-weather roads. In South Asia, 57% of road networks were paved, while in Bangladesh this amounted to only 25%.  Rural transport problems afflicting the country were (i) rapidly growing demand for road transport, (ii) lack of funds to develop infrastructure, (iii) inadequate enforcement of government policies and regulations on road safety, (iv) inadequate maintenance funding, and (v) lack of technical skills and capacity building of local government institutions.

To help address the situation and realize the full growth potential of rural areas, the Asian Development Bank (ADB) approved a $60 million loan for Bangladesh’s Sustainable Rural Infrastructure Improvement Project in November 2010.  Through a grant of €13 million, the state-owned German development bank, KfW, cofinanced the project. With an overall aim to reduce rural poverty in the project areas, the project’s expected outcome was widened access to economic opportunities and social services for the poor and women. The outcome was to be achieved through three outputs: (i) improved road connectivity; (ii) upgraded marketing facilities with specific provision for women; and (iii) improved rural infrastructure management.

Focusing on the country’s western divisions that had higher poverty rates in 2010, the project upgraded upazila (sub-district) and union roads to bituminous surface standard.  Growth center market (GCM) facilities were improved, all with 15% space allocation for women, paved trading areas, sheds, improved water supply systems, adequate drainage and sanitation facilities, and market offices. Some were provided with renewable energy facilities, as appropriate, and women’s market sections were set up especially for women traders.  Executing agency (EA) staff and Union Parishad (Council) members were provided awareness trainings on climate change and mitigation measures.  Performance-based approaches to improve Union Parishad governance, with a focus on women’s participation, were introduced. Climate change vulnerability mapping was conducted, and a climate change- resilient rural infrastructure management plan and sustainable rural road maintenance management plan was developed for all the project areas.

The project had a mixed performance: it overachieved or nearly achieved a few of its outcome targets but fell short in most.  Against a 100,000-target, 700,000 unskilled women were provided with income opportunities.  Compared to a target of 4.2 million, about 4.14 million people gained improved access to markets and social services including health and education.  Average travel time and travel cost were reduced but below target levels.   The annual average household farm income in the project areas did not significantly change, before and after the project; and neither did the wage differentials between women and men.

Notwithstanding the shortcomings in outcome achievements, the project has had a significant impact on rural connectivity and the accessibility of economic and social opportunities in the project areas.  It has spurred the establishment of new shops at the roadside and the development of the rural markets. By reducing travel time and transport costs, it has given rural people easier access to the markets, government centers, and social services. The total enrollment rate in the roadside schools increased by 48% from 2012 to 2016 and the number of health service providers beside the roads almost doubled, with greater benefit for women.

The project had the Local Government Engineering Department (LGED) as EA. A project management office was established at the LGED headquarters in Dhaka to implement the project.

Project Information
Project Name: 
Sustainable Rural Infrastructure Improvement Project
Report Date: 
March, 2020
Country: 
Project Number: 
Report Type: 
Project/Modality: 
Project loan
SDG: 
Goal 9: Industry, Innovation, and Infrastructure
Goal 8: Decent Work and Economic Growth
Goal 5: Gender Equality
Goal 3: Good Health and Well-Being
Goal 1: No Poverty
Loan Number: 
2696
Source of Funding: 
COL/ADF, KfW
Date Approved: 
11 November 2010
Report Rating: 
Successful

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