fbpx 49094-001: Railway Rolling Stock Project | Asian Development Bank

Bangladesh: Railway Rolling Stock Project

Sovereign (Public) Project | 49094-001 Status: Active

The Asian Development Bank is working with Bangladesh to improve services on railways running between Dhaka and Chittagong, and Dhaka and Khulna. The project is financing the purchase of new locomotives, passenger carriages, four cranes, two train washing plants, a locomotive conduct simulator for training, and other rail equipment.

Project Details

Project Officer
Das, Amrita Kumar South Asia Department Request for information
Country
  • Bangladesh
Modality
  • Loan
Sector
  • Transport
 
Project Name Railway Rolling Stock Project
Project Number 49094-001
Country Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3301-BAN: Railway Rolling Stock Project
Ordinary capital resources US$ 200.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Transport / Rail transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description

The proposed project will improve railway transport capacity in Bangladesh on key corridors such as the Dhaka -Chittagong and Dhaka- Khulna main line corridors by financing additional rolling stock (locomotives, passenger carriages, and related equipment). The new rolling stock will enable Bangladesh Railway to satisfy steadily growing demand and increase its market share.

The impact will be efficient and safe railway transport in Bangladesh, aligned with the Sixth Five-Year Plan (2011 2015). The outcome will be increased railway transport capacity in the main line network of Bangladesh Railway.

The project has two outputs. Output 1 comprises the procurement and commissioning of new rolling stock consisting of approximately 264 passenger carriages and 10 diesel electric locomotives for Bangladesh Railway's meter gauge main line network. Output 2 comprises the procurement and commissioning of new equipment consisting of approximately four relief cranes, two train washing plants, and one simulator for loco-master training.

Project Rationale and Linkage to Country/Regional Strategy

Historically, the railway enjoyed a monopoly as a carrier and carried most of the country''s commodities and passengers. With the gradual emergence of road transport, the railway began losing market share, which declined from 30% in 1975 to a mere 4% in 2005 for both passenger and freight transport. Despite a growing demand for transport, Bangladesh Railway''s market share in passenger and freight transport has declined due to a lack of investment in infrastructure and rolling stock (its transport capacity is the same as it was in 1975). Railway travel in Bangladesh is safer, more energy-efficient and reliable, and has a lower environmental impact than other modes of transport. Railway transport is also considered more comfortable than long-distance buses. Intercity trains operated by Bangladesh Railway are very popular. Occupancy is very high, especially in the east zone (98%); intercity trains in the Dhaka -Chittagong corridor are usually sold out. About 40% of Bangladesh Railway''s passengers travel by intercity trains, which account for more than 75% of passenger revenue. The high demand for intercity service in the Dhaka -Chittagong corridors cannot be fully met and no additional trains can be scheduled to tap into the lucrative market for Bangladesh Railway due to insufficient line capacity and rolling stock availability.

The government''s Sixth Five-Year Plan (2011 2015) includes the improvement of railways as energy efficient multimodal transport systems to reduce carbon emissions. The Railway Sector Master Plan towards 2030, approved in 2013, noted the railway sector must significantly improve its efficiency and service quality, and establish better connectivity in order to survive as a viable mode of transport. The government''s strategy is to increase Bangladesh Railway''s market share from 4% to 15% in freight transport, from 10% to 15% in container transport between Dhaka and Chittagong Port, and from 4% to 10% in passenger transport. The railway will focus on lucrative market segments and provide (i) long-distance passenger traffic via intercity trains, (ii) long-haul freight traffic along selected corridors, and (iii) container traffic (mainly between Dhaka and Chittagong Port). To achieve this, the government is (i) augmenting line capacity along main corridors; (ii) procuring modern locomotives, passenger carriages, and freight wagons; and (iii) reforming Bangladesh Railway, introducing a modern financial management system, improving operation and maintenance, and establishing a human resource management system.

The project is part of ADB''s railway sector development strategy to support a series of investment projects in infrastructure, railway reform, and institutional capacity development to improve overall transport capacity. Adding rolling stock to Bangladesh Railway's fleet will enable it to use its enhanced infrastructure capacity by running additional passenger trains, and thereby satisfy the increasing demand for trips by train. The project is in line with ADB's country partnership strategy for Bangladesh, 2011 2015, which aims to reduce high transport and logistical costs in support of sustainable and inclusive economic growth by connecting all parts of the country with national and regional markets.

The project is processed as a stand-alone project loan embedded into ADB''s railway sector development strategy and ongoing projects, as the implementation period is comparably short and project readiness is high, with government approvals and bid documents well advanced. ADB financing will ensure timely delivery of a larger number of locomotives and passenger carriages at competitive prices.

Impact Efficient and safe railway transport in Bangladesh (Sixth Five-Year Plan: 2011-2015)
Project Outcome
Description of Outcome Railway transport capacity in the main line network of Bangladesh Railway increased
Progress Toward Outcome

Number of daily passenger trains 352.

Number of annual passengers 90.1 million

Implementation Progress
Description of Project Outputs

1. New rolling stock procured and commissioned

2. New equipment procured and commissioned

Status of Implementation Progress (Outputs, Activities, and Issues) Overall status:50 BG coaches have aready been arrived in Bangladesh by 3 lots and 3 new trains have been inaugurated by these new BG coaches.158 nos. of MG coach have already been arrived in Bangladesh by 7 lots and 2 new trains have been inaugurated by these new MG coaches. Also 4 nos. of existing train have been replaced by the new MG coaches.Rest 42 MG coaches will arrive after COVID-19 outbreaks by another 2 lots (Tentative date of arrival: 22 nos. by September and 20 nos. by October 2020).Package wise progress:For package GD 1 (Procurement of 200 Meter Gauge Passenger Carriages), and GD 2 (Procurement of 50 Board Gauge Passenger Carriages) physical progress is 79% and 100% respectively. Financial progress for GD 1 is 80% and GD 2 is 97%.Delivery schedule for 10 MG locomotives was 10 June 2020. However, due to Covid 19 impact and a cyclone in the US, supply of equipment was delayed. Consequently, 4 months extension till 10 November 2020 has been sought to ADB including test, trail and commissioning. The extension is under process from ADB end. Shipment of 10 Locomotives from South Korea is expected by 7 August 2020 followed by completion of payment by September 2020.All cranes are handed over to the concern Chief Mechanical Engineer of Bangladesh Railway on 16 October 2019.Equipment for MG and BG Automatic Train Washing Plants have already been arrived in Bangladesh. Civil, electrical and plumbing works are ongoing. Expected date of commissioning of these plants at Dhaka and Rajshahi by September 2020. Physical and financial progress of procurement of 2 Automatic Train Washing Plants are 80% and 72% respectively.One set of locomotive simulator has been already procured and handed over to the BR on 24 October 2019.
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is limited to the procurement of rolling stock and equipment that will operate on existing railway lines. According to ADB's Safeguard Policy Statement (2009), the project is classified as category C for environment. The review of environmental impacts indicates that there will be no adverse environmental impacts during project implementation. During project operation, there will be a net environmental benefit through reductions in carbon dioxide emission due to a modal shift of passengers from road to rail, and the use of more efficient locomotives. Recommendations for proper solid and liquid waste management during project operations have been provided.
Involuntary Resettlement In accordance with ADB's Safeguard Policy Statement (2009), the project is classified as category C for involuntary resettlement. The project involves the procurement of rolling stock and as such does not lead to resettlement impacts.
Indigenous Peoples In accordance with ADB's Safeguard Policy Statement (2009), the project is classified as category C for indigenous peoples. The project involves the procurement of rolling stock and as such will not lead to adverse social impacts on indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations undertaken during the preparation of projects that were subsequently approved show that people have a positive attitude towards the improvement of the railway services, and viewed rail transport as a key factor in improving opportunities for business development and access to basic services, such as education, health care and administrative services. Moreover, they viewed the project as an important factor in facilitating tourism activities.
During Project Implementation The loan agreement has been signed on 28 September 2016. After fulfilling all conditions for declaration of effectiveness, the loan has been declared effective on 26 October 2016.The procurement for all 6 packages have been completed and all contracts have been awarded.
Business Opportunities
Consulting Services N/A
Procurement All contracts for procurement of goods and services will be procured through international competitive bidding procedures. ADB standard bidding documents with post qualification under the single-stage, two-envelope system will be adopted.
Responsible ADB Officer Das, Amrita Kumar
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Bangladesh Railway
16 Abdul Gani Road
Bangladesh Railway, Rail Bhaban,
Dhaka, Bangladesh
Timetable
Concept Clearance 03 Jun 2015
Fact Finding 25 May 2015 to 05 Jun 2015
MRM 01 Jul 2015
Approval 30 Sep 2015
Last Review Mission -
Last PDS Update 29 Sep 2020

Loan 3301-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Sep 2015 28 Sep 2016 26 Oct 2016 30 Jun 2021 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 294.00 Cumulative Contract Awards
ADB 200.00 30 Sep 2015 164.35 0.00 91%
Counterpart 94.00 Cumulative Disbursements
Cofinancing 0.00 30 Sep 2015 138.52 0.00 77%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory - Satisfactory - Unsatisfactory

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.

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

Tender Title Type Status Posting Date Deadline
BAN: Railway Rolling Stock Project Advance Notice Archived 18 Jul 2015

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
PACKAGE 3:PROCUREMENT OF 10 MG DIESEL-ELECTRIC LOCOMOTIVES Loan 3301 31 May 2018 HYUNDAI ROTEM COMPANY, KOREA 37, CHEOLDOBANGMULGWAN-PO, UIWANG-SI, CYEONGGI-DO, REPUBLIC OF KOREA KOREA, REPUBLIC OF Bangladesh Railway SUPPLY OF GOODS 37,963,400.00 37,963,400.00
PACKAGE 5: PROCUREMENT OF 1 METER GAUGE AND 1 BROAD GAUGE AUTOMATIC TRAIN WASHING PLANT FOR BANGLADESH RAILWAY Loan 3301 07 Nov 2017 NS CORPORATION, USA 235 W. FLORENCE AVENUE, INGLEWOOD, CALIFORNIA, 90301, USA UNITED STATES Bangladesh Railway SUPPLY OF GOODS 4,006,759.00 4,006,759.00
PACKAGE 6: PROCUREMENT OF 1 TRAIN SIMULATOR FOR LOCOMASTER TRAINING Loan 3301 11 Oct 2017 LANDER SIMULATION & TRAINING SOLUTIONS S.A. PORTUETXE 23A, LOCAL B3, 20018 SAN SEBASTIAN (GIPUZKOA), SPAIN SPAIN Bangladesh Railway SUPPLY OF GOODS 2,161,780.00 2,142,263.00
PACKAGE 1: PROCUREMENT OF 200 METER GAUGE STAINLESS STEEL PASSENGER CARRIAGES Loan 3301 21 Sep 2017 P.T. INDUSTRI KERETA API (PERSERO) J1, YOS SUDARSO NO. 71 MADIUN, 63122 EAST JAVA, INDONESIA INDONESIA Bangladesh Railway SUPPLY OF GOODS 73,901,756.00 73,901,756.00
Package 2: Procurement of 50 Broad Gauge (BG) Passenger Carriages Loan 3301 26 Jun 2017 M/S P.T. Industri Kereta Api (Persero) Jin, Yos Sudarso No. 71 Madiun, 63122 East Java, Indonesia Bangladesh Railway Supply of Goods 26,997,021.00 26,997,021.00
Package 4: Procurement of 4 Relief Cranes (2 for Meter Gauge and 2 for Broad Gauge) Loan 3301 22 Jun 2017 M/S Kirow Ardelt GMBH Spinnereistrasse 13, 04179 Leipzig, Germany Bangladesh Railway Supply of Goods 19,268,100.00 19,268,100.00

Procurement Plan

Title Document Type Document Date
Railway Rolling Stock Project: Procurement Plan Procurement Plans Jun 2015