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.
| Project Name | Railway Sector Improvement Project | ||||||||
| Project Number | 36317-013 | ||||||||
| Country | India | ||||||||
| Project Status | Closed | ||||||||
| Project Type / Modality of Assistance | Loan Technical Assistance |
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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 Equity and Mainstreaming | No gender elements | ||||||||
| 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. |
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| 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 $100,000. |
Responsible Staff
| Responsible ADB Officer | Roesner, Markus |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Transport and Communications Division, SARD |
| Executing Agencies |
Ministry of Railways Mr. Dimpy Garg [email protected] New Delhi, India |
Timetable
| Concept Clearance | 08 Mar 2002 |
| Fact Finding | 03 Mar 1998 to 18 Mar 1998 |
| MRM | 12 May 1998 |
| Approval | 19 Dec 2002 |
| Last Review Mission | - |
| PDS Creation Date | 22 Nov 2006 |
| Last PDS Update | 24 Jan 2012 |
Loan 1981-IND
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 19 Dec 2002 | 21 Apr 2004 | 26 Oct 2004 | 30 Jun 2008 | 31 Dec 2011 | 19 Jun 2012 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ 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 |
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 Improvement Project | Reports and Recommendations of the President | Nov 2002 |
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 Improvement Project: Framework for Land Acquisition and Resettlement for Additional Subprojects | Resettlement Frameworks | Mar 2005 |
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
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.