fbpx 46452-004: South Asia Subregional Economic Cooperation Chittagong-Cox's Bazar Railway Project, Phase 1 - Tranche 2 | Asian Development Bank

Bangladesh: South Asia Subregional Economic Cooperation Chittagong-Cox's Bazar Railway Project, Phase 1 - Tranche 2

Sovereign (Public) Project | 46452-004 Status: Approved

The SASEC Chittagong-Cox's Bazar Railway Project, Phase 1 (the Project) will support the government of Bangladesh in constructing the new, 102 kilometers (km) Dohazari-Cox's Bazar section of the Chittagong-Cox's Bazar railway corridor in southeastern Bangladesh. The government is upgrading the 47 km section Chittagong-Dohazari with its own funds. The project will also strengthen the capacity of the railway sector in project management and implementation. By connecting the Cox's Bazar district to Bangladesh's railway network, the project will not only boost the national economy through further development of Cox's Bazar into a major tourist destination, but also facilitate access for the population and products to subregional markets and trade. The Chittagong-Cox's Bazar railway corridor is part of the Trans-Asia Railway network. The project has been endorsed by the SASEC trade facilitation and transport working group meeting held in Tokyo on 26 November 2015.

 
Project Name South Asia Subregional Economic Cooperation Chittagong-Cox's Bazar Railway Project, Phase 1 - Tranche 2
Project Number 46452-004
Country Bangladesh
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3780-BAN: South Asia Subregional Economic Cooperation Chittagong-Cox's Bazar Railway Connectivity Project, Phase 1 - Tranche 2
Ordinary capital resources US$ 400.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Transport / Rail transport (non-urban)

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The SASEC Chittagong-Cox's Bazar Railway Project, Phase 1 (the Project) will support the government of Bangladesh in constructing the new, 102 kilometers (km) Dohazari-Cox's Bazar section of the Chittagong-Cox's Bazar railway corridor in southeastern Bangladesh. The government is upgrading the 47 km section Chittagong-Dohazari with its own funds. The project will also strengthen the capacity of the railway sector in project management and implementation. By connecting the Cox's Bazar district to Bangladesh's railway network, the project will not only boost the national economy through further development of Cox's Bazar into a major tourist destination, but also facilitate access for the population and products to subregional markets and trade. The Chittagong-Cox's Bazar railway corridor is part of the Trans-Asia Railway network. The project has been endorsed by the SASEC trade facilitation and transport working group meeting held in Tokyo on 26 November 2015.
Project Rationale and Linkage to Country/Regional Strategy

The project will connect Cox's Bazar district for the first time to the national and subregional railway network, and support economic development in the Dhaka-Chattogram-Cox's Bazar corridor through railway connectivity, contributing to the overall development of the national economy by offering reliable, safe, and low-cost transportation for passengers and cargo. The railway corridor is part of the Trans-Asia Railway network and will facilitate access to subregional markets and trade. The project will also improve subregional connectivity with Myanmar, combined with intermodal connection to road transport toward the border. The project is also anticipated to facilitate access to projects by other development partners, such as Matarbari Port, which is supported by the Japan International Cooperation Agency.

Road Map. The government aims to accelerate economic growth, employment generation, and poverty reduction, and intends to raise the annual average growth rate to 7.4%. The government's strategy for the railway subsector is to expand and improve the railway system to provide a safer, better, and more environmentally-friendly and cost-effective transport facility for national and international traffic, extending to the area where railway connection with the capital does not exist. The project is part of the government's strategy to connect more districts of the country to the railway network. It will further support the objectives to (i) generate employment by developing the Cox's Bazar's tourism industry; (ii) improve subregional connectivity and trade; (iii) increase the market share of the railway system, especially for long-distance passenger and freight traffic; and (iv) improve the integration of different modes of transport.

Strategic context. The government places special emphasis on the railway system as an affordable, safer, and fuel-efficient transport subsector, and is expanding and modernizing the system. The government's seventh 5-year plan refers to the establishment of proper international rail connectivity as a major priority. It targets to increase the Bangladesh Railway's domestic market share of freight transport from 4% to 15% and passenger transport from 4% to 10%. The Bangladesh Railway has a public service obligation to provide affordable transport service to nationals. It will also focus on lucrative market segments and provide long-distance passenger transport by intercity trains as well as long-haul freight transport and container trains to improve its operational and financial performance.

Impact Efficient and safe railway transport in Bangladesh developed, and subregional connectivity and trade improved.
Project Outcome
Description of Outcome Railway transport system in the Chattogram-Cox's Bazar corridor improved
Progress Toward Outcome
Implementation Progress
Description of Project Outputs New railway line constructed
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide, Cox's Bazar Airport, Dohazari
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

There is no change in scope under tranche 2. Hence, the environmental issues will remain the same as in tranche 1 (significant ecological impacts are expected due to the construction of a greenfield rail line passing through several elephant crossings and three protected areas). Mitigation measures proposed include underpasses, overpasses, and sensor systems (thermal imaging) to alert train drivers on the presence of elephants.

A baseline biodiversity assessment was completed in March 2018 to verify and finalize the mitigation measures proposed for addressing anticipated ecological impacts. Environmental monitoring activities are regularly being conducted and monitoring reports are being disclosed as required by the EIA. Internal monitoring is being conducted by the environment focal person in the project implementation unit. Regular on-site monitoring is being conducted by environmental experts under the construction supervision consultants, and external monitoring is being conducted by independent environmental consultants. Hence, the project has adequate staff to implement and monitor environmental safeguard activities. However, training is largely focused on occupational health and safety for the construction workers. This could be expanded to include other environmental safeguard subject matters such as air and water pollution and waste management. At least 28 environmental impacts and mitigation measures were identified in the environmental management plan. Based on the progress of works as of September 2018, only 15 of them are applicable. Of the 15, nine (60%) are found to be fully compliant, 6 (40%) partially compliant, and no noncompliance. The partially compliant activities occupational health and safety and waste management did not include any significant environmental issues. were the key partially compliant items. To address these, waste dustbins were immediately provided in campsites and occupation health and safety standards were improved. The environmental due diligence report for tranche 1, which is disclosed on the ADB website, shows that the project's performance on environmental safeguards is satisfactory and compliant with the SPS.

Involuntary Resettlement

The MFF as a whole was assessed category A; accordingly, tranche 2 is classified A. A detailed survey of involuntary resettlement impacts was conducted, which identified the acquisition of 553.59 hectares of land and impacts on 1,984 households (9,946 persons), the majority of whom (80%) will have to physically relocate. Most affected households (65%) are titleholders. About 80% of physically affected titled households will lose less than 30% of their land and will be able to relocate their homestead to their residual plot. The project is also expected to affect 48 community structures.

The resettlement plan was prepared using a participatory approach, and minimizes involuntary resettlement impacts. Its mitigation measures adequately address impacts identified by social assessment, and reflect lessons learned from other projects being implemented in Bangladesh. The resettlement plan includes compensation at replacement cost, shifting and reconstruction assistance, special provisions for vulnerable households, and assistance in identifying alternative plots of land to buy or rent. In addition, it includes a livelihood improvement program with special measures to encourage women's participation. The resettlement plan is financed entirely by the government, and its budget has been approved. It is being implemented by Bangladesh Railway, with support from an implementation NGO.

Indigenous Peoples The MFF and tranche 2 are classified category C as per the SPS. The alignment does not affect tribal lands, and the survey confirms that no indigenous people's community will be affected. Given that the project will be financed through an MFF, an indigenous people's planning framework has been prepared and disclosed.
Stakeholder Communication, Participation, and Consultation
During Project Design

Bangladesh Railway, various line departments, project beneficiaries, local communities in the project influence area, among others. The Projects will benefit the poor and the vulnerable by providing increased employment and market opportunities, improved means of transport and better access to social service facilities. In case any involuntary resettlement impacts are identified during the planning stage, these will also be mitigated through provisions in the Safeguard Policy Statement, national laws and policies. Most of the beneficiaries, especially the vulnerable and the women headed households, will be consulted during the resettlement planning stage and while conducting the poverty and social assessment.

The project will help improve people's access to and use of opportunities, services, resources and assets which will further empower them. Throughout the project cycle meaningful consultations will be held with the project beneficiaries providing them information regarding the project design and implementation. This will further empower the communities. The project will benefit all socio economic categories as they can easily commute from one place to another.

There are civil society organizations working in the area of health, microfinance, social welfare in the project influence area. The civil society organizations will be consulted while preparing the resettlement planning documents and poverty and social assessment.

People from all the socio economic strata are meaningfully consulted during the preparatory phase. Community meetings and focus group discussions will be organized as part of the poverty and social analysis. The local consultative meetings will involve all relevant stakeholders including representatives of the poor and other socially excluded groups ( e.g., women, indigenous people, etc) to disseminate the information as well as to get the feedback about the project design and its potential impacts. Other key stakeholders such as the relevant line departments, local Government representatives and NGOs will also be consulted. Consultations will also be undertaken with the affected households and communities during the course of the census survey and socioeconomic survey for the preparation of the safeguards planning documents.

During Project Implementation -
Business Opportunities
Consulting Services Consulting contracts are being financed under tranche 1.
Procurement Contracts already awarded under tranche 1.
Responsible ADB Officer Kaoru Kasahara
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Bangladesh Railway
16 Abdul Gani Road
Bangladesh Railway, Rail Bhaban,
Dhaka, Bangladesh
Timetable
Concept Clearance -
Fact Finding -
MRM 22 Nov 2018
Approval 03 Apr 2019
Last Review Mission -
Last PDS Update 04 Apr 2019

Loan 3780-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Apr 2019 23 May 2019 - 01 Jan 2026 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 450.00 Cumulative Contract Awards
ADB 400.00 03 Apr 2019 0.00 0.00 0%
Counterpart 50.00 Cumulative Disbursements
Cofinancing 0.00 03 Apr 2019 0.00 0.00 0%

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

None currently available.

Related Publications

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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.