India: MFF - Railway Sector Investment Program (Facility)
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.
Yeo, Kai Wei
South Asia Department
Request for information
|Project Name||MFF - Railway Sector Investment Program (Facility)|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
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|
|Description of Outcome||Energy-efficient, safe, reliable, affordable and environment-friendly railway system developed|
|Progress Toward Outcome||First two tranches being implemented; awaiting declaration of effectiveness of Tranche 3|
|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)||
Weighted average of physical progress at 70% as of 30 Sep 2017.
Current status of implementation described in Appendix 11: Updated Sector Development Initiatives in the Indian Railways of the periodic financing request report of Tranche 3.
$231M (46%) disbursed as of 21 March 2018.
Environment Directorate established under the Ministry of Railways to manage and implement environment-friendly projects and programs, including tracking carbon emissions and reductions through an Excel-based tool.
Not yet due.
|Summary of Environmental and Social 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.
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.
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.|
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.
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||Yeo, Kai Wei|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Transport and Communications Division, SARD|
|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 Mar 2018|
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|
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.
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||Reports and Recommendations of the President||Jul 2011|
|Railway Sector Investment Program||Summary Poverty Reduction and Social Strategies||Jul 2011|
|Railway Sector Investment Program: Facility Administration Manual||Facility Administration Manual||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
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
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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