Bangladesh : Railway Sector Investment Program - Tranche 4 (Additional Financing)

Sovereign Project | 32234-063

The Asian Development Bank and the Government of Bangladesh are working together to make the rail system in the country more efficient. The project is helping to re-organize the Bangladesh Railway in order to make it more commercially focused so that it provides better service to passengers and cargo clients. This includes upgrading carriages, improving signaling stations, and expanding rail yards. Services are being improved on key routes, including Dhaka-Chittagong and Dhaka-Darsana-Khulna.

Project Details

  • Project Officer
    Mohammad Islam
    South Asia Department
    Request for information
  • Country/Economy
  • Modality
  • Sector
    • Transport
Project Name Railway Sector Investment Program - Tranche 4 (Additional Financing)
Project Number 32234-063
Country / Economy Bangladesh
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3376-BAN: Railway Sector Investment Program - Tranche 4 (Additional Financing)
Ordinary capital resources US$ 50.00 million
Loan: Railway Sector Investment Program - Tranche 4
Japan International Cooperation Agency US$ 116.72 million
Export-Import Bank of Korea US$ 22.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Transport / Rail transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description The fourth PFR was received on 17 February 2015 and was updated from time to time with the last update received on 8 February 2016. The government requested a loan of $50 million from ADB's ordinary capital resources (OCR) to finance completion of works for subprojects financed under tranches 1 and 2. Additional financing for these subprojects is required because of (i) the application of the price escalation clause in the contracts, which results in a funding gap; and (ii) adjustment in quantities of bill-of-quantities items based on site conditions.
Project Rationale and Linkage to Country/Regional Strategy A multitranche financing facility (MFF) was approved on 10 October 2006 to improve the performance of the railway sector and to increase the capacity of the existing rail network to handle traffic demand necessary to sustain Bangladesh''s economic growth. The MFF consists in financing four subprojects, out of which three are ongoing: (i) the construction of the 64 km Tongi Bhairab Bazar Double Line Project and the implementation of sector policy reforms designed to make Bangladesh Railway, more commercially focused (Tranche 1); (ii) the rehabilitation of yards, extension of loops and upgrading of signaling at different stations in the Darsana Ishurdi Sirajganj Bazar section (Tranche 2); and (iii) the procurement of 150 passenger carriages (Tranche 3). The proposed subproject (Tranche 4) will consist in funding the financing gap of Tranches 1 and 2. Most of the civil works have been completed as of December 2015.
Impact Efficiency and safety of railway transport in Bangladesh improved
Project Outcome
Description of Outcome Railway transport capacity in the Dhaka-Chittagong and Dhaka-Ishurdi-Darsana-Khulna corridors improved
Progress Toward Outcome

1. Construction of Tongi-Bhoirab Double Track is completed and under operation in Dhaka-Chittagong railway corridor.

2. Rehabilitation of Loop Lines at 11 Stations in Dhaka-Ishurdi-Darsana-Khulna corridors is completed.

Implementation Progress
Description of Project Outputs

infrastructure improvements commissioned

equipment commissioned.

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

1. Construction of Double line track from Tongi-Bhoirab is completed and under operation.

2. Rehabilitation of loop line extension in different stations in Ishurdi-Darsana corridor is also completed in August 2016 and under operation.

Geographical Location Dhaka
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects TBD
Involuntary Resettlement As prescribed in para. 35 of Operations Manual (OM) section F1/OP, given that tranche 4 will be used for additional financing to bridge the financing gap within the existing project scale and scope of ongoing subprojects 1 and 2, it is categorized as _C_ for resettlement impacts.
Indigenous Peoples Given that Tranche 4 does not involve any additional civil works and that no Indigenous Peoples were identified in the preparation and implementation of the resettlement plan for Tranche 1, it is categorized as _C_ for Indigenous Peoples impact.
Stakeholder Communication, Participation, and Consultation
During Project Design During project design and implementation, consultations were held with key stakeholders, potential beneficiaries and affected persons. The implementation of the resettlement plan in particular called for an in-depth consultation and information strategy: over 150 public consultation meetings were held, 15,000 person to person discussions undertaken, and 14,000 leaflets distributed. In this process, key concerns of affected people were taken into account in the resettlement process. Moreover, 278 affected poor and vulnerable households received additional relocation assistance and income and livelihood restoration training.
During Project Implementation same as above
Business Opportunities
Consulting Services No additional consultant recruitments are expected under this loan.
Procurement No additional contract awards are expected under this loan.
Responsible ADB Officer Mohammad Islam
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Bangladesh Railway
Mr. A. H. M. Roushanuzzaman
16 Abdul Gani Road
Bangladesh Railway, Rail Bhaban,
Dhaka, Bangladesh
Concept Clearance -
Fact Finding -
MRM 19 Feb 2016
Approval 18 Mar 2016
Last Review Mission -
Last PDS Update 27 Sep 2017

Loan 3376-BAN

Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Mar 2016 10 Apr 2016 30 May 2016 09 Oct 2016 - 04 May 2017
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 52.47 Cumulative Contract Awards
ADB 50.00 17 Jun 2022 22.71 0.00 100%
Counterpart 2.47 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 22.71 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

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.

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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.

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Contracts Awarded

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Procurement Plan

None currently available.