Bangladesh : MFF - Railway Sector Investment Program (Subproject 1)
The Railway Sector Investment Program which is based on the Government's Sector Roadmap and Investment Plan for 2007-2013 will improve the performance of the railway sector by implementing (i) a reform project of sector policy, organizational, and capacity building reforms to make Bangladesh Railway (BR) more commercially focused, and improve governance and accountability; and (ii) an investment project of infrastructure and rolling stock capacity improvement investments to overcome capacity bottlenecks in sectors where such investments are both economically and financially viable, e.g., the Dhaka-Chittagong and Dhaka-Darsana-Khulna corridors where it can support major direct investment. The reform and the investment projects are integrated as approval of investment subprojects will be dependent on the implementation of specific sector reform actions.
Project Details
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Project Officer
Islam, Mohammad Nazrul
South Asia Department
Request for information -
Country/Economy
Bangladesh -
Modality
-
Sector
- Transport
| Project Name | MFF - Railway Sector Investment Program (Subproject 1) | ||||||||
| Project Number | 32234-023 | ||||||||
| Country / Economy | Bangladesh |
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| Project Status | Closed | ||||||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Governance and capacity development |
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| Sector / Subsector | Transport / Rail transport (non-urban) |
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| Gender | No gender elements | ||||||||
| Description | The Railway Sector Investment Program which is based on the Government's Sector Roadmap and Investment Plan for 2007-2013 will improve the performance of the railway sector by implementing (i) a reform project of sector policy, organizational, and capacity building reforms to make Bangladesh Railway (BR) more commercially focused, and improve governance and accountability; and (ii) an investment project of infrastructure and rolling stock capacity improvement investments to overcome capacity bottlenecks in sectors where such investments are both economically and financially viable, e.g., the Dhaka-Chittagong and Dhaka-Darsana-Khulna corridors where it can support major direct investment. The reform and the investment projects are integrated as approval of investment subprojects will be dependent on the implementation of specific sector reform actions. | ||||||||
| Project Rationale and Linkage to Country/Regional Strategy | Efficient transport is essential to achieve higher levels of economic growth needed for sustainable poverty reduction in Bangladesh. BR has been losing market share and consequently making financial losses thus relying on Government budgetary support. This financial support has not been enough to allow for additional investment needed in critical corridors such as the Dhaka-Chittagong and Dhaka-Darsana-Khulna corridors to overcome capacity constraints leading to poor operational performance of the railways. This in turn causes it to lose market railways will ease the pressure on land since Bangladesh has a very high population density and land is scare. It will also ease the pressure on the road network, which is congested in key corridors and thus benefit transport as a whole. This will require capital investments and reforms to ensure that the investments lead to a sustainable improvement in BR's operational and financial performance. | ||||||||
| Impact | Promote sustainable national economic growth and poverty reduction in Bangladesh. It will achieve this by improving rail transport efficiency and capacity. | ||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Improve the performance of the railways sector through enhanced efficiency |
| Progress Toward Outcome | L2316: Construction of the Tongi-Bhairab Bazar Double Track is completed and under full operation. L2317: Contract for procurement of videoconferencing equipment and other software and hardware awarded in June 2015. The actions as agreed upon in the reform program for BR are under implementation. (1) Restructure BR by Lines of Business (LOB) - An outsourcing/divesture plan for non-core services has been developed and approved. Performance of LOBs being reviewed. (2) Improve financial governance system - New Acctg and Financial Mgt system implemented in Oct 2013 through ERP software based on the new accounting architecture, although some components need to be upgraded to interface with existing IT systemts. (3) Improve human resource governance system - Job description of the LOB Heads has already been approved on 22 Mar 2011. LOB Heads now working according to the job description. Additional modules of the ERP IT System are rolled out progressively and nationwide coverage of the system is under implementation. (4) Improve BR operation and maintenance practices and performance - TA Consultants submitted reports to improve maintenance practices for track and signaling system in Feb 2008, rolling stock in May 2008, and improving train operations efficiency in May 2008 and April 2010. The reports were sent to respective departments to implement at field level. New manuals on New Signalling, Way and Works and LWR, and Operations have been approved. Completion report sent to ADB in July 2013. |
| Implementation Progress | |
| Description of Project Outputs | 2316: Double track between Tongi and Bhairab Bazar completed 2317: BR becomes a commercially focused rail service provider 2317: BR corporate governance is improved 2317: BR safety record is improved |
| Status of Implementation Progress (Outputs, Activities, and Issues) | 2316: Physical Infrastructure- Completed. 2317: New tariff policy is adopted by BR and corporatization of container service is in place. |
| Geographical Location | Amirganj Railway station, Arial Khan River, Arikhola, Balu River, Bhairab Bazar, Bogra, Brahmaputra River, Darsana, Dhaka, Gazipur District, Gazipur S., Ghorasal, Hantubhanga, Ishurdi, Jamtail, Jamuna, Khulna, Kishorganj District, Laksham, Narsingdi, Parbatipur, Sirajganj, Sitalakhya River, Tongi |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | A |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | Transport, especially vehicle emission, is the highest contributor to Bangladesh s air pollution problems. Improving the railway network will contribute significantly to reducing air pollution associated with vehicle emission especially in Chittagong, Dhaka and Khulna. The other expected potential environmental impacts are related to improving access, which will lead to increasing uncontrolled exploitation of natural resources. However, the gradual improvement in enforcing the Environmental Conservation Act, 1995 is expected to minimize the potential uncontrolled exploitation of natural resources and the environment. Nonetheless, implementation of the Investment Program has environmental consequences due to its physical intervention such as construction of railway networks. In this context, the Investment Project is categorized as a B project in accordance with ADB s Environment Policy, 2002. The initial environmental examination of the sample subproject systematically illustrates the potential environmental impacts, proposed mitigation measures, and how to implement the mitigation measures. The assessment of impacts at the subproject level will become an integral part of managing the Investment Project. The initial environmental examination for the Tongi Bhairab Bazar (64 km) section (as a sample subproject) shows that the environmental impacts associated with construction of additional tracks and formation of additional embankment, including bridge construction, are temporary and will occur only during construction. These impacts require mitigation measures that are manageable and mostly can be incorporated into construction works. 16 Therefore, the environmental management and monitoring plan, which clearly describes the required mitigation measures, will be incorporated in the bidding document to ensure that the contractors implement the mitigation measures properly. The plan provides overall guidance to address environmental impacts related to the sample subproject. For the follow-up subprojects, an environmental assessment review framework was prepared to guide the impacts assessment procedure. |
| Involuntary Resettlement | The Project will lead to loss of agricultural land and structures both commercial as well as residential, and loss of livelihoods in many cases. To mitigate this adverse impact on the affected population, a resettlement plan was prepared for the core subproject. To address the resettlement impacts of noncore subprojects, a resettlement framework was prepared. Subproject resettlement plans have been prepared during implementation. |
| Indigenous Peoples | No indigenous people will be adversely affected by the Project. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
|---|---|
| Consulting Services | International and national consultants will be required to support the reform and investment projects of the Investment Program. The consultants financed under the MFF loans will be engaged using ADB's quality- and cost-based selection procedures in accordance with ADB's Guidelines on the Use of Consultants. The Government has asked ADB to select the consultants. |
| Procurement | All contracts will use international competitive bidding. Procurement will be in accordance with ADB's Procurement Guidelines. |
| Responsible ADB Officer | Islam, Mohammad Nazrul |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Bangladesh Resident Mission |
| Executing Agencies |
Bangladesh Railway Md. ANM KHASRU Rail Bhaban, Dhaka, Bangladesh |
| Timetable | |
|---|---|
| Concept Clearance | 06 Jun 2000 |
| Fact Finding | 30 May 2004 to 04 Jun 2004 |
| MRM | 15 Jul 2004 |
| Approval | 13 Feb 2007 |
| Last Review Mission | - |
| PDS Creation Date | 18 Mar 2008 |
| Last PDS Update | 27 Mar 2017 |
Loan 2316-BAN
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 13 Feb 2007 | 15 Feb 2007 | 24 Apr 2007 | 30 Jun 2011 | 09 Oct 2016 | 04 May 2017 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 132.50 | Cumulative Contract Awards | |||
| ADB | 100.00 | 17 Jun 2022 | 99.93 | 0.00 | 100% |
| Counterpart | 32.50 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 17 Jun 2022 | 99.93 | 0.00 | 100% |
Loan 2317-BAN
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 13 Feb 2007 | 15 Feb 2007 | 24 Apr 2007 | 30 Jun 2011 | 09 Oct 2016 | 04 May 2017 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 30.00 | Cumulative Contract Awards | |||
| ADB | 30.00 | 17 Jun 2022 | 23.99 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 17 Jun 2022 | 23.99 | 0.00 | 100% |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
Evaluation Documents See also: Independent Evaluation
| Title | Document Type | Document Date |
|---|---|---|
| Bangladesh: Railway Sector Investment Program (Tranches 1, 2, and 4) | Validations of Project Completion Reports | Aug 2020 |
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
Bangladesh: A Witness to Development
Capturing the progress of the poor in Bangladesh through the images of documentary photographer Mohammad Rakibul Hasan.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Loan No. 2316-BAN: Prequalification of Contractors - Construction of Double Line Track from Tongi to Bhairab Bazar | Prequalified applicants | Archived |
Contracts Awarded
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Railway Sector Investment Program - Subproject 1: Procurement Plan | Procurement Plans | Oct 2014 |
| Railway Sector Investment Program | Procurement Plans | Aug 2011 |