fbpx 48416-001: Central Asia Regional Economic Cooperation Railway Connectivity Investment Program | Asian Development Bank

Pakistan: Central Asia Regional Economic Cooperation Railway Connectivity Investment Program

Sovereign (Public) Project | 48416-001 Status: Active

The PPTA will (i) develop an MFF and tranche projects bankable by ADB loan; (ii) conduct due diligence for technical, economic, financial, social, and environmental viability of the 1st tranche project and prepare required due diligence documents.

Project Details

Project Officer
Sluijter, Jurgen Central and West Asia Department Request for information
Country
  • Pakistan
Modality
  • Technical Assistance
Sector
  • Transport
 
Project Name Central Asia Regional Economic Cooperation Railway Connectivity Investment Program
Project Number 48416-001
Country Pakistan
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9153-PAK: Central Asia Regional Economic Cooperation Railway Connectivity Investment Program
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Transport / Rail transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description The PPTA will (i) develop an MFF and tranche projects bankable by ADB loan; (ii) conduct due diligence for technical, economic, financial, social, and environmental viability of the 1st tranche project and prepare required due diligence documents.
Project Rationale and Linkage to Country/Regional Strategy

For the past 150 years, railways have played an important role in the social, political, and economic life in Pakistan. For most of that time, railways were the leading mode of transport, in many places the only available mode. In a relatively large country, railways have offered unique advantages for transporting freight and passengers over long distances. In the past 20-30 years, however, increasing competition from road transport has reduced railway's market share. As of 2016, railway accounts for 4% of freight traffic and 6% of passenger traffic with major shares taken by road. As a result, the financial performance of PR, has deteriorated and has not generated enough resources to finance necessary investments in asset replacement and capacity expansion.

In Pakistan, government's public investments have been heavily skewed favorably to the road sector. Neglected from public investments and overburdened with social responsibilities, the performance of the railway sector had continuously deteriorated until 2011 and the sector was on the verge of a collapse, faced with poor rail infrastructure with huge backlog of maintenance, outdated and non-functioning locomotives and rolling stocks. Since 2011, however, PR's operational performance has markedly improved and helped avoid a total failure of the sector mainly owing to improved availability of functioning locomotives and PR's well-thought-out marketing strategies like strategic tariff setting, adroit market segmentation and focusing on profitable target markets, and long-term engagement with clients.

Despite recent improvement, the railway sector need upgrade its infrastructure on a large scale to provide more competitive transport services, regain the market share lost to roads, and ultimately rebalance the unbearably unbalanced modal share between rail and road in the country. Rebalancing the modal shares will accrue huge economic benefits to the country by relieving the overloaded road sector of overstress to road infrastructure and excessive maintenance burden and better utilizing huge sunk investments of rail infrastructure which, otherwise, will be left idle and further deteriorated. The Vision 2025 emphasizes the importance of railway transport and arranges public supports to revitalize the railway sector.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The original concept of the project was canceled in March 2017. The Government is conducting a pre-feasibility assessment on the proposed alternative projects for ADB's consideration as to the rationale, cost estimates, and financial and economic viability.
During Project Implementation

The project implementation was put on hold due to cancellation of the original project concept.

TA has been extended. Renewed discussions with government on scope start in October 2018.

Business Opportunities
Consulting Services The recruitment of consulting services under ADB projects follows the ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement Procurement under ADB project follows the ADB's Procurement Guidelines (2015, as amended from time to time).
Responsible ADB Officer Sluijter, Jurgen
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
The Ministry of Railways
Muhammad Yusuf, DG Planning
[email protected]
Government of Pakistan D-Block, Pak Secretariat Islamabad, Pakistan 44000
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 10 Aug 2016
Last Review Mission -
Last PDS Update 25 Sep 2018

TA 9153-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Aug 2016 01 Sep 2016 01 Sep 2016 31 Aug 2017 31 Aug 2020 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 200,000.00 0.00 0.00 0.00 1,200,000.00 10 Aug 2016 54,842.75

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.

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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.

None currently available.

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

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Project Preparatory Technical Assistance 9153 22 Dec 2016 NTU International A/S (Denmark) in Association with Planning and Development Consultants (Pvt.) Ltd. (Pakistan) Ved Stranden 22 5 TV Aalborg, Denmark The Ministry of Railways 999,987.00

Procurement Plan

None currently available.