India: Railway Sector Improvement Project

Sovereign Project | 36317-013

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Project Name Railway Sector Improvement Project
Project Number 36317-013
Country India
Project Status Closed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 1981-IND: Railway Sector Improvement Project
Ordinary capital resources US$ 212.30 million
TA 4053-IND: Management Consulting Services for Indian Railways
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Transport - Rail transport (non-urban)
Gender Equity and Mainstreaming
Description

The objective of the Project is to improve the performance of the railways sector by supporting (i) implementation of a program of institutional and policy reforms to improve Indian Railways' commercial orientation; and (ii) the expansion of core businesses by financing priority investments to overcome railway capacity bottlenecks and improve operational efficiency and safety. The Project will also contribute to organizational efficiency by promoting outsourcing, award of concessions, and use of consolidated contracts for execution of railway investment projects.

Using ADB's sector lending modality, the Project will finance priority investments in capacity augmentation recommended by the Long Range Decision Support System of the Ministry of Railways to overcome freight bottlenecks and improve safety. It will also support construction of new lines expected to have high economic and financial returns.

TA 4053-IND: Management Consulting Services for Indian Railways is piggy-backed to Loan 1981-IND, approved on 19 December 2002. The TA has been physically completed on 30 Nov 2010.

Project Rationale and Linkage to Country/Regional Strategy Efficient transport is essential for achieving the higher levels of economic growth needed for sustainable poverty reduction in the country and will contribute to expansion of production and employment opportunities. A program of institutional and policy reforms under the Indian Railways will help to improve the performance of railways. The Project will establish the basis to support railway reform which will result in improvements in sector performance by supporting institutional and policy reforms, strengthening private sector participation and financing strategic investments in the high density rail network.
Impact Promote economic growth and poverty reduction by improving the performance of the railways sector.
Project Outcome
Description of Outcome

Improved efficiency and effectiveness of the Indian Railways:

1. Increased capacity;

2. Improved services;

3. Improved financial sustainability; and

4. Improved productivityImproved efficiency and effectiveness of the Indian Railways

Progress Toward Outcome Physical progress of ADB financed subprojects is 86.6% on a weighted average basis. All contracts awarded and construction works are ongoing. 5 out of 11 contract packages have been completed.
Implementation Progress
Description of Project Outputs

1. Completed accounting reform by December 2008;

2. Separation of core and non-core business;

3. Increased private sector participation;

4. Completed the 2nd Mahanadi Bridge by December 2008; and

5. Completed doubling of about 490 km line by December 2009

Status of Implementation Progress (Outputs, Activities, and Issues) Mahanadi River 2nd bridge completed in July 2008. All supply of goods contracts completed. Overall physical progress of other investment subprojects is 86.6%.
Geographical Location States of Andhra Pradesh, Orissa, Chhattisgarh, Uttar Pradesh and Tamil Nadu
Safeguard Categories
Environment B
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Selection of consultants to be financed from the ADB loan will be in accordance with the Bank's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for the engagement of domestic consultants.
Procurement Procurement to be financed from the ADB loan will be carried out in accordance with ADB's Guidelines for Procurement. Civl works contracts over $3 million will be procured through international competitive bidding (ICB), and those below $3 million will be procured through local competitive bidding. Procurement of equipment will use ICB for contracts with an estimated value of at least $500,000, international shopping for contracts with an estimated value of $100,000 -500,000, and direct purchase arrangement for contracts less than $100,000.
Responsible ADB Officer Markus Roesner
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Ministry of RailwaysMr. Dimpy Gargdmpe@rb.railnet.gov.inNew Delhi, India
Timetable
Concept Clearance 08 Mar 2002
Fact Finding 03 Mar 1998 to 18 Mar 1998
MRM 12 May 1998
Approval 19 Dec 2002
Last Review Mission -
PDS Creation Date 22 Nov 2006
Last PDS Update 24 Jan 2012

Loan 1981-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Dec 2002 21 Apr 2004 26 Oct 2004 30 Jun 2008 31 Dec 2011 19 Jun 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 212.30 Cumulative Contract Awards
ADB 212.30 19 Dec 2002 201.92 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 19 Dec 2002 201.92 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - Satisfactory - - Satisfactory

TA 4053-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Dec 2002 22 May 2003 22 May 2003 30 Jun 2006 30 Nov 2010 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 19 Dec 2002 372,758.87
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - Satisfactory - - Satisfactory
Title Document Type Document Date
Railway Sector Improvement Project Reports and Recommendations of the President Nov 2002

Evaluation Documents

See also: Independent Evaluation

No documents found.


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