SECTOR ASSESSMENT (SUMMARY): MULTISECTOR

Transcription

1 City Region Development Project (RRP BAN 39298) SECTOR ASSESSMENT (SUMMARY): MULTISECTOR 1 Sector Road Map 1. Sector Performance, Problems, and Opportunities a. Overview 1. Bangladesh had a population of 152 million in 2005, of which 38 million (27%) lived in urban areas. 2 Growing at current rates, the urban population will be 74 million, or 40% of the population by This rapid urbanization is attributable to territorial expansion of the urban areas and rural-to-urban migration. The following sections focus on particular features of urban sector development in Dhaka city region and Khulna city region, the target areas of the project. 2. Dhaka City Region. The process of urbanisation has been most dramatic in the Dhaka city region. The population is estimated at around 12 million, with growth rates of about 6% per annum, much higher than the national average of 1.4%. Population growth rates in peripheral secondary towns (pourashavas) are even higher. 3 Population growth in Gazipur pourashava, for instance, is reaching 11.6%. The growing population supports a growing manufacturing sector, which has expanded by more than 12% during the last 5 years. As a result, over 4,500 manufacturing units, largely textile and apparel (63%), are operating within the Dhaka city region. The institutional structures, human, and financial resources of the city region s municipalities are not equipped to manage such rapid expansion. Consequently, growth has been largely uncontrolled, resulting in acute shortages of infrastructure, land for the commercial and industrial sectors, and housing for low-income families. 3. The need for comprehensive development planning beyond the confines of municipal boundaries (city corporations and pourashavas) has been understood in Bangladesh. Rajdhani Unnayan Kartripakkha (RAJUK) was established for regional urban planning, and the Dhaka Transport Coordination Board was established to coordinate the public transport system. As a result, regional land use and transportation planning have been proposed in Dhaka since the mid-1990s, such as the Dhaka Master Development Plan (DMDP) and the Dhaka Strategic Transport Plan. Unfortunately, implementation of these plans has been slow the strategic urban development proposals, including planned satellite towns, are not implemented, and not one of the urban public transport proposals has progressed beyond the design stage. Thus, the economic and social drivers of growth have led to large-scale unplanned urban development. 4. Khulna City Region. Khulna is the third-largest city in Bangladesh with an estimated population of 1.29 million. Historically, the growth rate of the city is around 2.5% per annum, which is broadly in line with the national population growth rate. Until recently, Khulna city region experienced economic decay owing mainly to the decline of the jute industry. Despite moderate growth, the institutional structures, human, and financial resources of the municipalities are not equipped to manage the social and economic development needs of the city region. There are shortages of basic infrastructure and housing for low-income families. Khulna mirrors the problems of Dhaka, but they are smaller in scale and therefore more manageable. 5. There are signs of economic recovery in private investment in Khulna, which can be reinforced with long-term plans for necessary infrastructure and institutional frameworks. For further development, Khulna city region can exploit its comparative advantages of a seaport (Mongla), airport (Jessore), river port (Noapara), and strategic links to both Dhaka and India. 1 This summary is based on the Asian Development Bank (ADB) Final Report of Project Preparatory Technical Assistance, Preparing the City Region Development Project. Manila. Available on request. 2 ADB Urbanization and Sustainability in Asia, Case Studies of Good Practices. Manila. 3 Bangladesh Bureau of Statistics

2 2 Unfortunately, the strategic planning and development context is too local to meet the economic needs of the whole city region. b. Urban Infrastructure and Services 6. Water supply and sanitation. Although most of the urban population has access to water supply, households with their own connections are much less common, particularly in smaller pourashavas. Service standard is low, with short supply hours, and low pressure causes low quality of water. Operational efficiency is typically low, characterized by large network losses, estimated to reach up to 40% in Gazipur pourashava. Sewerage is limited to certain parts of Dhaka, and most households use septic tanks and pit latrines. Many of the old tank designs are not adequate, and tanks are not operated or maintained properly. Raw wastewater leaks and flows directly into low-lying areas and open drains, causing contamination and pollution in water bodies and ground. 7. Solid-waste. Solid waste is not well managed in the city regions, which lack collection and disposal systems, equipment, and resources. Sanitary landfills are not common in most areas. Households often dump their waste onto open land, into watercourses and drains. Commercial and industrial operators often illegally dump industrial waste. Municipalities are generally not familiar with modern standards, and the principle of the 3Rs (reduce-reuse-recycle) is not practiced. Potential areas of revenue generation, such as composting and recycling through public private partnerships, remain largely unexplored. 8. Urban transport and drainage. Unsustainable levels of traffic congestion characterize urban transport in Dhaka and seriously hamper the local economy. Inadequate road and transport capacity is exacerbated by poor traffic, such as uncontrolled roadside parking. The pedestrian environment is unsafe and very unpleasant, especially in the Dhaka city region. Khulna also has insufficient road, rail and port infrastructure to support sustained regional economic development in the medium-to-long term. Many municipalities, particularly in the Khulna city region, are plagued by floods and water logging, which severely limits local economic activities in monsoon season. Drains are not well maintained, and solid waste is often dumped into the drains, reducing the flow capacity of already underdeveloped drainage. Combined with poor sanitation facilities, floods and water logging pose serious health risks. What s more, climate change is expected to increase the frequency and intensity of flooding. 9. Energy efficiency. Municipalities use energy very inefficiently, implying substantial capacity to save energy and cut carbon dioxide emissions. For example, water pumps operate at very low efficiency levels, and streetlights are fitted with inefficient fluorescent tubes. Since energy costs are a substantial part of municipalities' recurrent expenditures, higher efficiency can substantially improve municipal finances. Municipalities are barely aware of the best available technology and have neither the skills nor the resources to implement conservation measures. 10. Urban revitalization. In Dhaka and Khulna city regions, there are significant inner-city areas of historic importance. These areas tend to become neglected and/or lose their historic character due to a lack of control and investments. Some areas, for example old bazaars, have great potential to stimulate the local economy if properly redeveloped, but government support is limited so far. 2. Government s Sector Strategy 11. Policies. Bangladesh s National Strategy for Accelerated Poverty Reduction (NSAPR I and NSAPR II, GOB, 2005 and 2009) highlights how urbanization could help reduce poverty and recommends a holistic approach to tackle urban poverty and support economic growth.

3 3 NSAPR II categorically supports this view, and emphasizes the importance of comprehensive urban development and an integrated approach to urbanization. 12. The Committee for Urban Local Governments ( ), assisted by the Asian Development Bank (ADB), carried out a comprehensive policy assessment and drafted the National Urban Sector Policy. In finalizing the comprehensive urban policy, the government also took into account sector policies such as the National Housing Policy (1993), the Bangladesh Urban Shelter Review (1993), the Bangladesh National Habitat Report (1996), the National Water Policy (1998), the National Water Management Plan 2004, the National Sanitation Strategy (2005), the National Land Transport Policy (2004), the National Industries Policy (2009), and the Climate Change Framework (2010). 13. Structure of governance. The governance structure of the Dhaka and Khulna city regions features three tiers central government, regional planning agencies, and local municipalities. It suffers from various weaknesses: (i) Coordination and cooperation between institutions with a bearing on city region development is poor, with unclear demarcation of mandates and responsibilities. The lack of interaction between planning agencies (RAJUK in Dhaka and Khulna Development Authority in Khulna) and the pourashavas is of particular concern. (ii) Local government capacity for staffing, systems, and financial resources is weak. The shortage of own-source financial capability is fundamental. 4 (iii) Urban fringe areas and urban clusters outside of pourashava lack clear mandates, and human and financial resources. 14. The weak coordination between the large number of institutions with a stake in urban development (be it land use, transport, environment, economic development, or industry) is alarming, particularly in Dhaka. While the scale of the challenge in Khulna is vastly different, the root and nature of the problem are similar. One consistent feature of the organizations concerned with governance in the city regions is that they have insufficient human and financial resources to take on the mandates they were given. For instance, RAJUK carries out the planning functions with far too few trained staff only 15 urban planners to serve a population of over 12 million people. Each pourashava has only 1 urban planning position and finds it difficult to retain staff. 15. Regional development planning. Unfortunately, the urban planning system does not yet have the capacity to ensure optimal use of land in accordance with an agreed land-use planning framework. New development is often unplanned and therefore badly located, leading to environmental problems, poor urban design, and costly infrastructure provision. Preparation and approval of detailed area plans under the DMDP was delayed significantly, and lack of statutory zoning through detailed area plans undermined effective development control. As for the proposals contained in the DMDP, there is still insufficient land allocated and developed to cater for the demands of a planned environment, particularly with respect to the urban poor and accommodation of migrants. It will be a major challenge when developing the satellite cities to achieve socially balanced communities, with a good balance of housing and employment. Within the existing urban frameworks, various urban areas suffer increasing neglect, particularly in Dhaka, where areas such as Old Dhaka require comprehensive renewal. 3. ADB Sector Experience and Assistance Program 16. ADB has long been supporting urban development in pourashavas through Secondary Towns Infrastructure Development projects (1 and 2 over ) and Urban Governance 4 The consultant team has assessed Dhaka City Corporation and Khulna City Corporation, and the sample pourashavas of Tongi, Narayanganj, and Narsingdi (Dhaka city region), and Mongla and Noapara (Khulna city region).

4 4 and Infrastructure Improvement projects (UGIIP 1 and 2, 2003 ongoing). UGIIP has made remarkable progress in improving municipal and governance by introducing performance-based allocation of investment funds. For example, property tax collection improved from 34% to 83% in pourashavas that carried out programs under UGIIP. Public participation in municipal, including by women and poor, has become stronger through various citizens committees. Based on the success under UGIIP, formation of citizens committees became mandatory under the Pourashava Act Capacity-building programs are vastly more effective since performance improvement has been directly linked to the allocation of investment funds. 17. ADB also supports urban development through a single-sector project, focusing on relatively large municipalities. For water and sanitation, ADB supports physical development and institutional reform through the Secondary Towns Water Supply and Sanitation Sector Project (2006 ongoing), 5 Dhaka Water Supply Sector Development Program (2007 ongoing), 6 and Khulna Water Supply Project (planned in 2011). ADB has recently launched the Urban Public and Environmental Health Sector Development Program (2009 ongoing) 7 to improve public environmental health in city corporations and to establish the relevant policy framework. A new area of intervention is urban transport, and Greater Dhaka Sustainable Urban Transport Corridor is being prepared for the development of strategic public transport in Dhaka city region. Since the long-term investment requirements of the targeted city regions are very large, the projects are designed in a complementary manner. The updated DMDP and the preparation of feasibility studies will produce a clear road map to assist long-term engagement and develop future projects. 18. The project supports some of the recommendations made in the sector assistance program evaluation conducted in 2009, 8 which concluded that there is a need for development partners to support financing mechanisms that continue to promote municipal accountability and introduce measures that help mobilize funding that can help ensure sustainability of projects. A financing package that combines loans and grants based on the revenue potential of subprojects, and which could provide a platform for greater cost recovery, including repayment of loan portions, has been applied to the project. 19. The sector assistance program evaluation also indicated the need for a more comprehensive framework for investments, including capacity development. The project provides a framework for selecting and undertaking investments, as well as selecting municipalities deemed eligible for assistance under the ADB loan. Capacity development programs will be carried out with a view to directly improve municipal finances in the area of property tax collection, a key revenue source for all municipalities. 5 ADB Secondary Towns Water Supply and Sanitation Sector Project. Manila. 6 ADB Dhaka Water Supply Sector Development Program. Manila. 7 ADB Urban Public and Environmental Health Sector Development Program. Manila. 8 ADB Sector Assistance Program Evaluation: Urban Sector and Water Supply and Sanitation in Bangladesh. Manila.

5 Problem Tree for Urban Sector Deteriorating urban environment and infrastructure services Insufficient capacity of urban infrastructure proper regional urban planning Weak municipal and capacity Rapid urbanization Insufficient capital investment proper operation and maintenance effective framework for coordination proper planning in municipalities incentive for better Large migration from rural areas identified projects financial resources human resources trained staff incentive for coordination Low priority of urban planning in municipal knowledge and system for better Concentration of economic activities Low user charges and weak tax collection technical know how urban planners Limited transfer from the central government financial resources Source: Asian Development Bank. 5

6 6 Sector Results Framework (Urban Sector, ) Country Sector Outcome Country Sector Outputs ADB Sector Operations Indicators with Outcomes with ADB Contributions Indicators with Targets and Baselines Outputs with ADB Contributions Incremental Targets (Baselines Zero) Planned and Outgoing ADB Interventions Main Outputs Expected from ADB Contributions Full coverage of urban population for safe water by 2011, and for hygienic sanitation by 2013 Access to safe water increased to 75.0% More people have access to safe water in Dhaka and Khulna 80% coverage in Dhaka and Khulna (i) Planned key activity areas: (i) Planned key activity areas: Better access to municipal services in pourashavas Water sector reforms in line with the policy matrix Stronger local governance and Access to better sanitation increased to 87.0% Stronger sector governance and efficiency in line with unified policy matrix under joint partnership framework Local governance reforms progressively implemented starting from class A and B pourashavas Urban infrastructure improved Water and sanitation infrastructure improved with better Sector reforms implemented under the program loan of Dhaka water supply sector development program Local governance improved in pourashavas 60 more pourashavas have improved urban infrastructure with better planning under UGIIP 2 and CRDP 20 pourashavas have improved the system under STWSSP Tranche 2 release conditions complied with in more pourashavas have improved governance under UGIIP 2 and CRDP Integrated urban infrastructure in pourashavas (60%) Water supply infrastructure in large cities (40%) (ii) Projects in the pipeline with estimated amounts City Region Development Project ($120 million) Khulna Water Supply Project ($75 million) Dhaka water supply project II ($185 million) (iii) Ongoing projects with approved amounts Dhaka Water Supply Sector Development Program ($200 million) UGIIP2 ($87 million) Secondary Towns Water Supply and Sanitation Sector Project ($41 million) Urban governance and infrastructure improved in pourashavas Water supply system improved in two mega cities (ii) Projects Key infrastructure improved under coherent development framework Water supply system with 100 MLD capacity installed in Khulna Additional pourashavas covered for improvement of governance and infrastructure (iii) Ongoing projects Policy reforms implemented in line with policy matrix for urban water sector 2,000 km of distribution network rehabilitated in Dhaka 50 pourashavas implemented governance and infrastructure improvement under UGIIP 2 ADB = Asian Development Bank, CRDP = City Region Development Project, km = kilometer, MLD = million liters per day, STWSSP = Secondary Towns Water Supply and Sanitation Project, UGIIP = Urban Governance and Infrastructure Improvement Project. Source: Asian Development Bank.