Bangladesh : South Asia Subregional Economic Cooperation Chittagong–Cox's Bazar Railway Project, Phase 1 (Tranche 3)

Sovereign Project | 46452-005

The project supports the government in constructing the new 102-kilometer (km) Dohazari-Cox's Bazar section of the Chattogram-Cox's Bazar railway corridor in Southeastern Bangladesh. The multitranche financing facility (MFF) uses the time-slice financing approach for the large-scale project comprising civil works, equipment, goods, and consulting services. The project was fully appraised at the due diligence for the MFF appraisal. Under the first tranche, all procurement were completed and subsequent tranches continue to finance part of the project. Consulting services that were recruited at the beginning are to be financed only with the COL loan of Tranche 1. The attached technical assistance approved along with tranche 1 strengthens the capacity of Bangladesh Railway, the executing agency, on project implementation management, including safeguards management.

Project Name
South Asia Subregional Economic Cooperation Chittagong–Cox's Bazar Railway Project, Phase 1 (Tranche 3)
Project Number
46452-005
Country / Economy
  • Bangladesh
Project Status
Active
Project Type / Modality of Assistance
  • Loan
  • Technical Assistance
Source of Funding / Amount
Loan 4321-BAN: South Asia Subregional Economic Cooperation Chittagong"Cox's Bazar Railway Project, Phase 1 - Tranche 3
Source Amount
Ordinary capital resources US$ 400.00 million
TA 10115-BAN: Support for Safeguard Implementation and Railway Safety Enhancement
Source Amount
Technical Assistance Special Fund US$ 450,000.00
Operational Priorities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP5: Promoting rural development and food security
  • OP7: Fostering regional cooperation and integration
Sector / Subsector
  • Transport / Rail transport (non-urban)

Gender
Effective gender mainstreaming
Description
The project supports the government in constructing the new 102-kilometer (km) Dohazari-Cox's Bazar section of the Chattogram-Cox's Bazar railway corridor in Southeastern Bangladesh. The multitranche financing facility (MFF) uses the time-slice financing approach for the large-scale project comprising civil works, equipment, goods, and consulting services. The project was fully appraised at the due diligence for the MFF appraisal. Under the first tranche, all procurement were completed and subsequent tranches continue to finance part of the project. Consulting services that were recruited at the beginning are to be financed only with the COL loan of Tranche 1. The attached technical assistance approved along with tranche 1 strengthens the capacity of Bangladesh Railway, the executing agency, on project implementation management, including safeguards management.
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 along the Dhaka-Chattogram-Cox's Bazar corridor by offering reliable, safe, and low-cost transportation. The project will bring various benefits including: (i) generate employment by developing Cox's Bazar's tourism industry; (ii) improve subregional connectivity and trade; (iii) increase the modal share of the railway system, especially for long-distance transport; and (iv) strengthen multimodal transport system.

The railway corridor is part of the Trans-Asia Railway network and South Asia Subregional Economic Cooperation rail corridors. The project is also expected to facilitate harmonization with projects by other development partners, such as Matarbari Port supported by the Japan International Cooperation Agency.

Impact

Efficient and safe railway transport in Bangladesh developed.

Subregional connectivity and trade improved.

Project Outcome

Description of Outcome

Railway transport system in the ChattogramCox's Bazar corridor improved.

Progress Toward Outcome

As of 30 September 2023, the overall civil work progress is 91.76%.

Implementation Progress

Description of Project Outputs

New railway line constructed

Project implementation capacity of Bangladesh Railway strengthened

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

The Physical progress for Lot -1 and Lot-2 is 88.80% (Lot 1) and 94.72% (Lot 2) respectively as of 30 September 2023.The overall physical progress is 91.76%

Signaling and Telecommunications design and interface matters are well advanced.

Geographical Location
Nation-wide, Coxs Bazar, Dohazari

Safeguard Categories

Environment
A
Involuntary Resettlement
A
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
Tranche 3 is categorized as 'A" for environment safeguards in accordance with the Safeguard Policy Statement. The MFF is following a time slicing approach, where the funds under tranche 3 will be utilized to continue civil works initiated under tranches 1 and 2. Hence, the environmental issues remain the same as in tranche 1 and 2. There is no change in scope under tranche 3. The environment safeguards aspects of the project was fully appraised during the preparation of tranche 1. The final Environmental Impact Assessment (EIA) was disclosed on 26 May 2016. An Environmental Assessment and Review Framework (EARF) was also prepared and disclosed on the ADB website. Government environmental clearance for the project was secured in November 2017.Significant ecological impacts were expected from the construction of a green field rail line passing through several elephant crossings and three protected areas. This includes obstruction of elephant and other wildlife movement during construction of the rail line and potential collisions with trains during operation of the rail line. Other anticipated impacts included standard issues related to the civil works such as dust, air pollution, noise, solid and liquid waste including hazardous waste, and occupational and community health and safety. A comprehensive range of measures had been proposed to mitigate, minimize and compensate the ecological impacts: i) construction of several underpasses, ii) construction of one overpass, iii) improvement of habitat inside the three protected areas through habitat enhancement plans (HEP), and iv) pilot testing and installation of sensor systems to prevent elephant train collisions. The Environmental Management Plan (EMP) which was included in the bidding documents of works includes measures to manage the other issues related to civil works. As of December 2022, construction of all underpasses have been completed, substantial progress has been made in construction of the overpass, the HEP activities have been completed, and preparatory activities including procurement and import of the sensor technology equipment have been completed and the pilot tests are planned to be conducted within June 2023. Environmental monitoring activities are regularly being conducted and monitoring reports being disclosed as required by the EIA. Internal monitoring is being conducted by the environmental 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. The project has adequate staff to implement and monitor environment safeguard activities. Twenty-seven (27) environmental impacts and mitigation measures were identified in the EMP. Based on progress of works as of November 2022, 67% of the EMP measures were found fully compliant, 18% were partially compliant and no non-compliance for lot 1. For lot 2, 70% fully compliant, 15% partially compliant and no non-compliance. The partially compliant measures were in relation to waste management and occupational health and safety. Hazardous waste management has been a challenge under the project due to lack of government facilities to treat and dispose the waste. The semi-annual monitoring reports submitted show that the project's performance on environment safeguards is satisfactory and compliant with the SPS.
Involuntary Resettlement
Tranche 3 is categorized as "A" for involuntary resettlement safeguards. The resettlement plan for the project has been updated to provide the final number of affected households after the joint measurement surveys of the Deputy Commissioners responsible for land acquisition in Chattogram and Cox's Bazar Districts, Bangladesh Railway and the implementation nongovernment organization (NGO). While the amount of land required for the project has decreased slightly from 562.83 hectares to 561.54 hectares, the number of affected households has markedly increased from 1,984 households (9,946 persons) to 12,094 households (49,743 persons). The increase is mainly due to the use of cadastral records that did not have updated ownership information to estimate the original number of affected households (e.g., multiple heirs of deceased landowners were not indicated in the records). In addition, affected households in forested areas that could not be physically accessed during project preparation were identified only during project implementation The number of households significantly affected by relocation from housing is 2,339 (9,567 persons). In line with the resettlement plan, the Government of Bangladesh is implementing 10 land acquisition cases to meet the land requirement of the project, with a total estimated budget of 22,002.98 million taka. As of December 2022, the Government has disbursed about 17,122 million taka (80%) of the estimated budget to 9,048 titled households (79%) and 1,001 non-titled households (95%). Twenty-five (25) livelihood and income restoration training on livestock farming, vegetable cultivation, fish cultivation, computer operation, tailoring and workshop machining have been conducted involving 631 persons (462 women and 169 men) of the target 1,100 households. The training program is expected to be completed in December 2023. Bangladesh Railways has reported that 296 project complaints have been received by the 32 project grievance redress committees by December 2022. All the grievances have been resolved except one an ownership dispute whose resolution is in process. Social safeguard monitoring, consultation and information disclosure, and grievance handling are regularly undertaken by the project management unit and an external monitoring expert. Twenty staff are involved full time in resettlement plan implementation with the project management unit (2), implementation NGO (10), construction supervision consultant (5), and the project management consultant (3). Semi-annual monitoring reports submitted by Bangladesh Railway indicate resettlement plan implementation is in line with national and ADB policies.
Indigenous Peoples
Tranche 3 is classified as 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.

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.

Contact

Responsible ADB Officer
Das, Amrita Kumar
Responsible ADB Department
Sectors Group
Responsible ADB Division
Transport Sector Office (SG-TRA)
Executing Agencies
Bangladesh Railway

Timetable

Concept Clearance
-
Fact Finding
-
MRM
14 Mar 2023
Approval
20 Jun 2023
Last Review Mission
-
Last PDS Update
30 Nov 2023

Funding

Loan 4321-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Jun 2023 25 Jun 2023 05 Jul 2023 01 Sep 2026 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 402.50
ADB 400.00
Counterpart 2.50
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 10 Jun 2024 210.31 0.00 53%
Cumulative Disbursements 10 Jun 2024 118.95 0.00 30%

TA 10115-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Jun 2023 30 Nov 2023 30 Nov 2023 31 May 2028 - -
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
450,000.00 0.00 0.00 0.00 0.00 0.00 450,000.00
Cumulative Disbursements
Date Amount
10 Jun 2024 47,631.18

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.


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

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.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Project Management Specialist Individual - Consulting Closed
Safeguards Monitoring Specialist Individual - Consulting Closed
National Forestry Expert Individual - Consulting Closed
Biodiversity Expert (International External Monitor) Individual - Consulting Closed
Environmental Specialist (National External Monitor) Individual - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
LOT 1: DOHAZARI TO CHAKARIA INCLUDING SIGNALING & TELECOMMUNICATIONS-CONSTRUCTION OF NEW DUAL GAUGE SINGLE RAILWAY LINE FROM DOHAZARI TO COX'S BAZAR Loan 4321 21 Jul 2023 CT JOINT VENTURE | 5TH FLOOR, HOUSE #401, LANE #06, BARIDHARA DOHS, DHAKA, BANGLADESH Bangladesh Railway 105,780,237.10 105,780,237.10
LOT 2: CHAKARIA TO COX'S BAZAR VIA RAMU INCLUDING COX'S BAZAR STATION BILDING-CONSTRUCTION OF NEW DUAL GAUGE SINGLE RAILWAY LINE FR DOHAZARI TO COX Loan 4321 21 Jul 2023 CCECC-MAX JV | 6TH FLOOR, BAITUL HOSSAIN BUILDING, 27 DILKUSA COMMERCIAL AREA, DHAKA-1000, BANGLADESH Bangladesh Railway 112,764,893.20 112,764,893.20

Procurement Plan

None currently available.