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 Name||Railway Rolling Stock Project|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|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|
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)|
|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
|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.|
|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.|
|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|
16 Abdul Gani Road
Bangladesh Railway, Rail Bhaban,
|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|
|Approval||Signing Date||Effectivity Date||Closing|
|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%|
|Cofinancing||0.00||30 Sep 2015||138.52||0.00||77%|
|Status of Covenants|
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.
None currently available.
Evaluation Documents See also: Independent Evaluation
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|Tender Title||Type||Status||Posting Date||Deadline|
|BAN: Railway Rolling Stock Project||Advance Notice||Archived||18 Jul 2015|
|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|