SUPPLEMENTAL ASSISTA

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The Chittagong Port Project seeks to provide the Port of Chittagong with adequate capacity for handling the expected growth in general cargo and container traffic through the early 1990's. This will be achieved through the construction of two multipurpose berths suitable for servicing general cargo as well as container vessels and by improving the throughput of the existing berths by providing new cargo-handling equipment and by training of the port workers. As a result of worldwide economic recession, a decline in its international trade, and stagnation of external aid inflows, Bangladesh has experienced severe financial constraints over the past three years. While Bangladesh has taken important steps to bring about financial stability, continuing substantial aid inflows are required to cushion the severity of the administrative process and to allow a modest growth in investment and per capita income. The credit, as a part of the Special Action Program, will provide supplemental financing for four ongoing projects to ensure that they are implemented in a timely manner without the government having to diversify resources from other high priority projects in its development program credit will increase IDA's share of project costs in two projects and finance a part of project cost overruns in the remaining two. The credit will also support the government's effort to address a number of administrative and procedural issues which hinder efficient project implementation. The Supplemental Assistance to Selected Projects Project seeks to provide the Port of Chittagong with adequate capacity for handling the expected growth in general cargo and container traffic through the early 1990's. This will be achieved through the construction of two multipurpose berths suitable for servicing general cargo as well as container vessels and by improving the throughput of the existing berths by providing new cargo-handling equipment and by training of the port workers. The project will support GOB efforts to expand the supply of electricity in the rural areas and finance the installation of new and the rehabilitation of some existing electricity distribution networks in seven PBS areas, of Phase II of GOB's rural electrification program. The project will include: (i) the installation of new electricity distribution networks in seven selected areas; and (ii) the rehabilitation of limited existing distribution network systems operated by BPDB and their integration into the network systems in the above areas.