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 Name||Railway Sector Investment Program - Tranche 4 (Additional Financing)|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|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|
|Description of Outcome||Railway transport capacity in the Dhaka-Chittagong and Dhaka-Ishurdi-Darsana-Khulna corridors improved|
|Progress Toward Outcome||
Construction of Tongi-Bhoirab Double Track is completed and under operation in Dhaka-Chittagong railway corridor.
Rehabilitation of Loop Lines at 11 Stations in Dhaka-Ishurdi-Darsana-Khulna corridors is completed.
|Description of Project Outputs||
infrastructure improvements 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.
|Summary of Environmental and Social Aspects|
|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|
|Consulting Services||No additional consultant recruitments are expected under this loan.|
|Procurement||No additional contract awards are expected under this loan.|
|Responsible ADB Officer||Islam, Mohammad Nazrul|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Bangladesh Resident Mission|
16 Abdul Gani Road
Bangladesh Railway, Rail Bhaban,
|MRM||19 Feb 2016|
|Approval||18 Mar 2016|
|Last Review Mission||-|
|Last PDS Update||27 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|18 Mar 2016||10 Apr 2016||30 May 2016||09 Oct 2016||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||52.47||Cumulative Contract Awards|
|ADB||50.00||18 Mar 2016||22.63||0.00||100%|
|Cofinancing||0.00||18 Mar 2016||22.71||0.00||100%|
|Status of Covenants|
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 Public Communications Policy (PCP) 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.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Railway Sector Investment Program - Tranche 4 (Additional Financing): Audited Project Financial Statements (July 2015-June 2016)||Audited Project Financial Statements||Dec 2016|
|Loan Agreement for Loan 3376-BAN: Railway Sector Investment Program - Tranche 4||Loan Agreement (Ordinary Resources)||Apr 2016|
|Railway Sector Investment Program (Tranche 4): Periodic Financing Request Report||Periodic Financing Request Reports||Mar 2016|
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.
|Title||Document Type||Document Date|
|Railway Sector Investment Program (Tranche 4) - Subprojects 1-4: Resettlement Due Diligence Report||Safeguards Due Diligence Reports||Feb 2016|
|Railway Sector Investment Program - Tranches 1, 2, and 3: Environmental Due Diligence Report||Safeguards Due Diligence Reports||Feb 2016|
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Public Communications Policy (PCP) 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.