Bangladesh Climate / Urban Infrastructure Deep Dive Tender, Bangladesh - 63899888

Procurement Summary

Country : Bangladesh

Summary : Bangladesh Climate / Urban Infrastructure Deep Dive

Deadline : 14 Mar 2022

Other Information

Notice Type : Tender

TOT Ref.No.: 63899888

Document Ref. No. : 1279604

Financier : World Bank (WB)

Purchaser Ownership : Public

Tender Value : Refer Document

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Tender Details

Expression of Interest are invited for Bangladesh Climate / Urban Infrastructure Deep Dive.

The objective of this project is to conduct a Deep Dive into green sustainable cities development in Bangladesh, which includes identifying the potential to increase private sector participation in urban infrastructure sectors, the constraints that need to be addressed to achieve this potential, and how the WB and IFC can help overcome these constraints through investments, advisory and policy dialogue.
The analysis will lead to recommendations and conclusions on:
i. Opportunities for creating commercial markets for waste and wastewater management, urban transportation, and green buildings (focusing on affordable green housing). The selection of these topics is aligned with the key elements of climate transitions in the urban sector, IFC Smart Cities engagement, and complements existing analysis for climate smart urban development;
ii. Investment and advisory opportunities for IFC that will facilitate access to quality infrastructure services, which includes investments in public-private partnerships (PPPs), and access of subnational governments to commercial finance to fund large infrastructure needs;
iii. Key risks and constraints that need to be addressed to fully realize the full benefit of private infrastructure sector led interventions, with suggested ways to mitigate these risks; and
iv. Clear recommendations on policy changes, system changes, and/or implementation considerations that would unlock private sector investments. It will be important for this exercise to assess pre and post reform impact and help identify potential for interventions that could help unlock the use of private sector solutions.
SCOPE OF THE REVIEW
We require a consultant to review each of the following aspects with broad guidance on time allocation in brackets:
OVERVIEW OF OVERALL URBAN INFRASTRUCTURE SYSTEM AND PRIVATE SECTOR LANDSCAPE IN FIVE KEY CITIES ACROSS FOUR KEY AREAS
Provide a brief overview of the urban infrastructure system, including current dynamics of the following key sub-sectors with a focus on five key cities in Bangladesh: Dhaka North, Dhaka South, Gazipur, Narayanganj and Chattogram. These cities serve area with the total population of around 14 million people with high concentration of industrial zones. They can potentially serve as platforms to test more innovative infrastructure financing arrangements. The WB Urban team have been also engaged with these cities and developed a strategy for Dhaka transformation through its Metro Dhaka Transformation Platform. The strategy, however, does not capture the role the private sector could play in infrastructure service delivery and financing.

I. Role of sub-national financing for climate-smart urban infrastructure projects (25%)
Despite the recent legal empowerment of local governments, the bulk of public services continues to be managed by central line ministries because sub-national entities are underfunded. Over the past decade, major efforts have been made to strengthen the role of local government units (LGUs), including shift of responsibilities for infrastructure services. However, they lack resources and implementation capacity. While LGUs can borrow commercially and issue municipal bonds, subject to GoB approval, their creditworthiness is significantly constrained by high dependence of government transfers.
The proposed deep dive will assess readiness of five cities mentioned above to deploy private capital and solutions for infrastructure development. It will cover the following:
Review of resource gaps and challenges that are a priority for the Government of Bangladesh (GoB) and challenges the sector faces that shapes service delivery. This includes a review of the role of Local Government Units (LGUs). Specifically, the consultants will:
o Analyze the financial performance of the selected city corporations and a few large national utility companies (e.g., involved in water supply and waste treatment) in the past 3-5 years, review their infrastructure development plans (if any), and provide an overview of their relationship with the central government in implementing infrastructure projects, and clarify the roles of different institutions.
o Assess their readiness to attract private capital for finance municipal infrastructure, including commercial borrowing without a sovereign guarantee, bond issuance and PPPs. Readiness should be assessed in terms of financial and corporate governance. Identify legal and practical hurdles to these investments.
o Identify priorities for improving local governments creditworthiness (including quick wins for revenue mobilization) and capacity for infrastructure development, based on the experience of other countries (e.g., Turkey, Brazil, ).
o Assess LGUs readiness and ability to implement bankable projects (and gaps).
o Identify potential types of investors and provide an overview of concessional funds available to co-finance climate smart infrastructure.
II. Private participation in urban water supply and waste management (25%)
With its rapid urban population growth, Bangladesh is facing an increasing problem of water and wastewater management. The WB notes the shift from agriculture to industrial and service sectors has intensified urban water demand. Overall, although irrigation makes up a large share (80 percent) of total water demand, industrial demand is expected to see the highest growth. Most of Bangladeshs fast-growing water demand is fed by its rapidly dwindling groundwater tables. Groundwater levels are declining fast in the Northwest because of irrigation, and in major cities such as Dhaka because of domestic and industrial growth. In addition, the waste sector is now accounting for a third of urban-related emissions and one of the leading emitters in Bangladesh. Existing landfills are not properly managed, which contributes to large GHG emissions and other health hazards. Further, wastewater treatment capacity is also inadequate with only one proper sewerage treatment plant in the country located in Dhaka, which handles less than 20% of the total wastewater. Several new plants and network expansion are underway, with financing from Development Finance Institutions (DFIs) and China.
The proposed analysis will assess the scope of waste treatment needs and identify potential opportunities for private sector investment. It will specifically cover the following:
Analyze state of the water utilities, project pipeline and opportunities for PPPs, and recommendations on water tariffs; and Identify opportunities to build on the WBs work with the Government to provide support to urban areas through municipal governance support projects, which includes building off the WB supported guidelines for enabling the participation of the private sector in the sector.
Provide estimates of the waste management capacity needs (solid and wastewater) for the targeted city corporations (based on the projected population / and WB analysis), and an overview of the government plans/PPP project pipeline .
Highlight the technology solutions best suited to manage solid waste and wastewater in large urban centers depending on the policy objectives (such as Nationally Determined Contributions) and financial implications, leveraging IFC industry expertise in this area, as well as the WB analytical work.
Identify policies required to effectively deploy prioritized waste and wastewater management solutions, incl. the regulatory framework for the industry, possible tariff structures and financing mechanisms.

Publication Date: 01-Mar-2022

Expression of Interest Deadline: 14-Mar-2022

Documents

 Tender Notice