India: MFF - Railway Sector Investment Program (Facility)

Sovereign Project | 36330-013

Summary

ADB and the Government of India are working together to make the country's train system safer, more efficient and able to handle greater amounts of passengers and freight. The Railway Sector Investment Program is building second tracks alongside 840 kilometers of existing rail systems, essentially doubling the capacity of high-density routes. Another 640 kilometers of track will have electrification systems added. This is increasing the capacity of India's rail system. It is also increasing efficiency by installing modern signaling systems, and working to reform the accounting system. The result of the work is that India's trains are using less fuel, creating less pollution, keeping closer to schedules and costing customers less.

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Procurement Documents

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Project Name MFF - Railway Sector Investment Program (Facility)
Project Number 36330-013
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0060-IND: MFF - Railway Sector Investment Program (Facility Concept) (formerly Railway Sector Investment Program)
Ordinary capital resources US$ 500.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Transport - Rail transport (non-urban)
Gender Equity and Mainstreaming Some gender elements
Description ADB and the Government of India are working together to make the country's train system safer, more efficient and able to handle greater amounts of passengers and freight. The Railway Sector Investment Program is building second tracks alongside 840 kilometers of existing rail systems, essentially doubling the capacity of high-density routes. Another 640 kilometers of track will have electrification systems added. This is increasing the capacity of India's rail system. It is also increasing efficiency by installing modern signaling systems, and working to reform the accounting system. The result of the work is that India's trains are using less fuel, creating less pollution, keeping closer to schedules and costing customers less.
Project Rationale and Linkage to Country/Regional Strategy India's economy has been one of the fastest growing in Asia in recent years, but its rail system has failed to keep pace. Each year, more than 7 billion passengers ride trains in India and more than 800 million tons of freight is transported. But as India's economy continues to expand, the numbers of passengers and tons of freight on trains has been declining. The train routes most in demand cannot handle the capacity needed, and many of the trains are slow and service is poor. The country needs an efficient, sustainable, safe, and regionally balanced transportation system in which trains play a key role.
Impact Improved transport network and greater mobility
Project Outcome
Description of Outcome Energy-efficient, safe, reliable, affordable and environment-friendly railway system developed
Progress Toward Outcome Achievement to be measured after the completion of the Program.
Implementation Progress
Description of Project Outputs

1. Expanded physical infrastructure and enhanced efficiency of infrastructure use

2. Improved operations efficiency of Indian Railways

3. Clean development mechanism (CDM) application and implementation for the investment program

Status of Implementation Progress (Outputs, Activities, and Issues)

1. As of August 2015, a total of $115.785M disbursed under the Facility.

2. Computerization: initial testing of computerization has been completed in 2 major districts in North-East and North-West zones, which are now being rolled out to zone-wide implementation in 3 of the 17 zones (Northern Railway, North Eastern Railways and North Western Railways) and 1 unit (Central Organization of Railway Electrification).

3. Methodology shifted from CDM to NAMA (Nationally Appropriate Mitigation Action); monitoring reports on greenhouse gas emission and efficiency in IR (inter-urban rail) submitted.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects

There are no environmentally sensitive features in the proposed investment. Hence, it has been categorized as B in accordance with ADB's Safeguard Policy Statement (2009) (SPS). Accordingly, initial environmental examinations (IEEs) were prepared for all the projects. The IEEs show that the environmental impacts associated with establishment of double tracks, including embankment construction, are negligible. The construction activities are proposed within the right-of-way (ROW) of existing railway lines. The project areas of influence are primarily topographically flat agriculture land; no environmentally sensitive areas will be affected, and no significant impacts on biodiversity or physical cultural resources are anticipated. Most environment impacts are likely to occur during the construction stage. Impacts are primarily due to embankment formations, cutting of trees, and transportation of construction material. However, manageable mitigation measures will be implemented under the environmental management plan (EMP) and monitored under the environmental monitoring plan (EMOP) as part of the construction works. Furthermore, adequate environmental requirements are incorporated into the bidding documents to ensure that all construction materials (sand and gravel) will be taken or mined in an environmentally sound manner. The environmental management plan as part of the IEE has been prepared in sufficient detail to be enforced by MOR.

The general consultant will conduct a training program to strengthen RVNL officials' capacity in addressing environmental concerns associated with its activities, including supervising implementation of the EMP covered in the IEE report and EMOP to ensure meeting of all environment safeguard requirements. An environmental assessment and review framework was prepared to guide the implementation of environment safeguard requirements for the investment program and subsequent tranches.

Involuntary Resettlement

The proposed investment program is categorized as A in accordance with ADB's SPS. Six RPs have been prepared in accordance with ADB's SPS, Land Acquisition Act, 1894 (amended in 1984), and National Rehabilitation and Resettlement Policy (NRRP-2007). According to the project census, 3,945 persons will be affected by the project, out of which 76 households will be physically displaced and 344 households economically displaced. The total resettlement budget for the project is INR 135,033,578.

Details of compensation rates for the loss of land and structures, shifting assistance, income restoration assistance, and additional support provisions for the vulnerable groups are provided in the resettlement framework (RF) prepared for the investment program and also in the RPs. Meaningful consultation and information disclosure during the preparation of RPs with the project displaced persons including land acquisition and compensation process and to general public through the ADB website were undertaken. If during implementation any modification or additional land requirement or involuntary resettlement impacts are identified, a related RP will be prepared or modified in accordance with the applicable laws referred to in the RP, and prior approval of the ADB will be obtained before any further implementation of the relevant section of the subproject.

Indigenous Peoples

The proposed investment program is categorized as B in accordance with ADB's SPS. In Chhattisgarh, scheduled tribes account for 31.8% of the total population, Orissa (16.6%), Maharashtra (8.9%), Karnataka (6.6%), and Andhra Pradesh (6.6%). The tribal population is found to be scattered and not concentrated in any particular project areas. Tribal groups in the project areas freely interact with the outside community. They have similar socioeconomic characteristics as the surrounding population. The study done during project preparation did not show any difference in impact between indigenous and non-indigenous groups in the project location. Moreover, these groups are open to new ideas like family planning and formal education.

PSA survey confirmed that the socioeconomic impacts due to the proposed investment will not be comparatively different for tribal groups when compared with the remainder of the population. In addition, meaningful consultations were conducted to ensure a comprehensive perspective on the investment and its impacts; and to ascertain community members' response, their needs and demands, an estimate of losses that they would suffer, and steps to mitigate those losses. Primary and secondary stakeholders consulted include directly affected people, executing agencies, implementing agencies, local administration officers, men, women, farmers, business communities, and disadvantaged groups residing along the areas of influence. Special provisions have been made under the RPs to address indigenous people impacts. An indigenous peoples planning framework (IPPF) was prepared for the investment program to address any unanticipated impacts on indigenous peoples during the implementation of existing subprojects or any additional subprojects. In accordance with the framework, if any significant impacts on indigenous people are identified, an indigenous peoples plan will be prepared and submitted to ADB for approval.

All safeguard documents (EARF, IEEs, RF, RPs, and IPPF) have been approved by MOR, which concurred that these documents be disclosed at ADB website and government websites as required.

Stakeholder Communication, Participation, and Consultation
During Project Design Initial stakeholders identified are officials from Ministry of Railways, Road and the Rail Vikas Nigam Limited (RVNL), other development partners active in India's transport sector development; Panchayat, business and community groups, and villagers.
During Project Implementation Community meetings and focus group discussions will be organized as part of the social analysis. The local consultative meetings will involve all relevant local stakeholders including representatives of the poor and other socially excluded groups (e.g. women, scheduled tribes, etc.) to disseminate the information as well as to get their feedback about the project design and its potential impacts. Other key stakeholders such as relevant line agencies, local government representatives and NGOs will also be consulted. Consultations will also be undertaken with the affected households and communities during the course of census survey and socio-economic survey along the project roads for preparation of social safeguard plans.
Business Opportunities
Consulting Services

A firm of international consultants in association with domestic consultants will support the IA to implement the project by (i) preparing the monthly and quarterly reports as required for management of the project and reporting to ADB, (ii) monitoring the implementation of safeguards in accordance with ADB's Safeguard Policy Statement, (iii) scheduling the project implementation and establishing project schedules with milestones and critical path analysis based on international best practice, (iv) advise the IA on any potential issues and coordinate within the project or third parties as necessary, (v) provide proper monitoring of the funds available, fund flows within the project, disbursements of funds from the loan account, projections of future financial needs, and (vi) prepare the reports and documentation needed for the IA to submit the subsequent PFRs to ADB to secure funding of later trenches of the project.

About 78 person-months of international consultants and 390 person-months of national consultants will be required for this. The consulting firm will be engaged using the quality- and cost-based selection (QCBS) method with a quality:cost ratio of 80:20. RVNL will engage the project management consultants (PMC) by its own financing. PMC will provide support IA for construction supervision as the Engineer.

Procurement

All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines.

MOR and ADB have discussed procurement packages and procedures and understood that the proposed MFF does not involve national competitive bidding (NCB). The procurement plan should be updated whenever change in the procurement arrangements is required and agreed.

An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is in Section C (Procurement Plan). The general consultant will be recruited according to ADB's Guidelines on the Use of Consultants. The terms of reference for all consulting services are detailed in Section D.

Procurement activities will be the responsibility of the RVNL Director, who will be supported by the staff and consultants. ADB will closely monitor all major project implementation activities. Contracts for civil works and goods will comprise 20 international competitive bidding (ICB) packages. All contracts for civil works and goods will be procured in accordance with ADB's Procurement Guidelines. ADB's standard bidding documents will be used.

The size of works contracts will be packaged at a large scale sufficient to attract qualified contractors. This is to avoid same problems experienced under the ongoing loan, resulted from engagement of poor performing contractors. The time-slicing approach, e.g., financing slices of a long-term contract, is proposed to be explored under the proposed MFF as required. Appendix 6 is a control mechanism proposed for the time-slicing approach.

Equipment financed under the efficiency enhancement component will be based on required technical features and timing of procurement. The requirement will be discussed during project preparation and will be finalized during project implementation.

Responsible ADB Officer Guenter Hoelscher
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Ministry of RailwaysRailway Board, Room No. 416
Rail Bhawan, New Delhi 110001
India
Timetable
Concept Clearance 29 Nov 2010
Fact Finding 08 Mar 2011 to 22 Mar 2011
MRM 29 Apr 2011
Approval 31 Aug 2011
Last Review Mission -
Last PDS Update 21 Aug 2015

MFF Facility Concept 0060-IND

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1,144.60 Cumulative Contract Awards
ADB 500.00 - 0.00 0.00 %
Counterpart 644.60 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %
Title Document Type Document Date
Railway Sector Investment Program: Facility Administration Manual Facility Administration Manual Jul 2011
Railway Sector Investment Program Reports and Recommendations of the President Jul 2011
Railway Sector Investment Program Summary Poverty Reduction and Social Strategies Jul 2011
Framework Financing Agreement for Railway Sector Investment Program between India and Asian Development Bank dated 8 July 2011 Framework Financing Agreement Jul 2011

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Railway Sector Investment Program: Social Monitoring Report (October 2014-March 2015) Social Monitoring Reports Aug 2015
Railway Sector Investment Program: Environmental Monitoring Report (October 2014-March 2015) Environmental Monitoring Reports Aug 2015
Railway Sector Investment Program: Environmental Monitoring Report (April-September 2014) Environmental Monitoring Reports Apr 2015
Railway Sector Investment Program: Social Monitoring Report (April-September 2014) Social Monitoring Reports Apr 2015
MFF - Railway Sector Investment Program Environmental Assessment and Review Framework Mar 2011
Railway Sector Investment Program: Pune-Guntakal Electrification and Daund- Gaulbarga Doubling Subprojects (as of Board approval) Environmental Assessment and Measures Mar 2011
MFF Railway Sector Investment Program: Daund-Gulbarga Double Tracking Subproject (Maharashtra Section) (Draft) Resettlement Plans Mar 2011
Railway Sector Investment Program: Sambalpur-Titlagargh Subproject (as of Board approval) Resettlement Planning Documents Mar 2011
Railway Sector Investment Program: Environmental Assessment and Review Framework (as of Board approval) Environmental Assessment and Review Framework Mar 2011
MFF Railway Sector Investment Program: Sambalpur-Titlagargh Subproject (Draft) Resettlement Plans Mar 2011
Railway Sector Investment Program: Indigenous Peoples Planning Framework (as of Board approval) Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Mar 2011
MFF Railway Sector Investment Program: Daund-Gulbarga Double Tracking Subproject (Karnataka Section) (Draft) Resettlement Plans Mar 2011
Railway Sector Investment Program: Hospet - Tinaighat Subproject (Karnataka Section) (as of Board approval) Resettlement Planning Documents Mar 2011
Railway Sector Investment Program: Raipur-Titlagarh Doubling Subproject (as of Board approval) Environmental Assessment and Measures Mar 2011
MFF - Railway Sector Investment Program: Hospet - Tinai Ghat Subproject (Karnataka Section) (Draft) Resettlement Plans Mar 2011
Railway Sector Investment Program: Resettlement Framework (as of Board approval) Resettlement Planning Documents Mar 2011
Railway Sector Investment Program: Daund-Gulbarga Double Tracking Subproject (Karnataka Section) (as of Board approval) Resettlement Planning Documents Mar 2011
Railway Sector Investment Program: Sambalpur-Titlagarh Doubling Subproject (as of Board approval) Environmental Assessment and Measures Mar 2011
MFF Railway Sector Investment Program: Raipur-Titlagargh Doubling Subproject (Orissa Section) (Draft) Resettlement Plans Mar 2011
Railway Sector Investment Program: Raipur-Titlagargh Doubling Subproject (Orissa Section) (as of Board approval) Resettlement Planning Documents Mar 2011
Railway Sector Investment Program: Daund-Gulbarga Double Tracking Subproject (Maharashtra Section) (as of Board approval) Resettlement Planning Documents Mar 2011
Railway Sector Investment Program: Hospet-Tinaighat Doubling Subproject (as of Board approval) Environmental Assessment and Measures Mar 2011
MFF Railway Sector Investment Program: Raipur-Titlagargh Doubling Subproject (Chhattisgargh Section) (Draft) Resettlement Plans Mar 2011
Railway Sector Investment Program: Raipur-Titlagargh Doubling Subproject (Chhattisgarh Section) (as of Board approval) Resettlement Planning Documents Mar 2011
Railway Sector Investment Program Resettlement Frameworks Mar 2011

Evaluation Documents

See also: Independent Evaluation

No documents found.


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