The Government of Bangladesh proposed a project for Asian Development Bank (ADB) financing to improve the operational efficiency of Bangladesh Railway through the procurement of modern rolling stock, preparation of investment projects to enhance its rolling stock maintenance capacity and support for the ongoing railway reform. The project will contribute to the increase in railway share as a core transportation mode of the country and to the modal shift from roads to rail. The modal shift and the efficient rolling stock will reduce carbon dioxide (CO2) emission.
| Project Name | Railway Rolling Stock Operations Improvement Project | ||||||||||||
| Project Number | 50312-003 | ||||||||||||
| Country | Bangladesh |
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| Project Status | Active | ||||||||||||
| Project Type / Modality of Assistance | Loan Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Governance and capacity development Partnerships |
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| Sector / Subsector | Transport / Rail transport (non-urban) - Transport policies and institutional development |
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| Gender Equity and Mainstreaming | No gender elements | ||||||||||||
| Description | The Government of Bangladesh proposed a project for Asian Development Bank (ADB) financing to improve the operational efficiency of Bangladesh Railway through the procurement of modern rolling stock, preparation of investment projects to enhance its rolling stock maintenance capacity and support for the ongoing railway reform. The project will contribute to the increase in railway share as a core transportation mode of the country and to the modal shift from roads to rail. The modal shift and the efficient rolling stock will reduce carbon dioxide (CO2) emission. | ||||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | Bangladeshi transport system consists of roads, railways, inland waterways, seaports for maritime shipping and civil aviation facilities. Historically, the railway enjoyed a monopoly as a carrier and transported most principal commodities, but the railway began losing market share declining from 30% in 1975 to mere 4% in 2015 for both passenger and freight transports. The drop in the market share of the railway as a carrier is the result of the long-term underinvestment in railway infrastructure and operational improvement of Bangladesh Railway. Recognizing the virtues of the railway as a cheaper, safer and fuel-efficient transportation mode, the government places special emphasis on railway development and set targets to increase railway market share through prioritized investment in railway infrastructure, focusing on network capacity improvement, operational capacity improvement and railway reform implementation. The project aims at improving the operational capacity and efficiency of Bangladesh Railway. The project is aligned with ADB's country partnership strategy for Bangladesh 2016-2020 which emphasizes the importance of easing infrastructure constraints by undertaking transformational investments and promoting policy reform in key sectors such as energy, transport and urban development as a priority investment area. | ||||||||||||
| Impact | A balanced 3R (rail, river & road) based multimodal transport infrastructure system developed Greenhouse gas emission in the power, transport, and industry sectors reduced |
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| Project Outcome | |
|---|---|
| Description of Outcome | Operational and energy efficiency of Bangladesh Railway improved |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Modern rolling stock procured Investment plans for maintenance facilities of locomotives and diesel electric multiple units developed Capacity of Bangladesh Railway officials and locomotive drivers on energy-efficient rolling stock operations improved ERPIT system for accrual accounting is used and adequately maintained |
| Status of Implementation Progress (Outputs, Activities, and Issues) | 4 Procurement packages are ongoing while 1 package has been awarded. |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | The project mainly involves the procurement of railway rolling stock that will operate on existing railway lines. The preparation of the design of the maintenance facilities will include conducting environmental assessments. This has already been included in the terms of reference of the consulting services. A review of environmental implications as required for environment category C projects has been carried out and its findings show that there will be no adverse environmental impacts during project implementation. After the completion of the project, a net benefit in CO2 emission reductions is expected from the shift of passengers and freight from road to rail and the use of more energy-efficient locomotives equipped with APU. |
| Involuntary Resettlement | The project mainly involves the procurement of railway rolling stock. The preparation of the design of the maintenance facilities will includeconducting the due diligence of involuntary resettlement impacts. This has been included in the terms of reference of the consulting services. |
| Indigenous Peoples | The project mainly involves the procurement of railway rolling stock, and the preparation of the design of the maintenance facilities will includeconducting due diligence of indigenous peoples impacts. This has been included in the terms of reference of the consulting services. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
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| Consulting Services | An international firm shall be recruited by following ADB's Guidelines on the Use of Consultants (2017, as amended from time to time). |
| Procurement | Procurement for contracts to be financed under the project will be carried out in accordance with ADB's Procurement Guidelines (2015, as amended from time to time). |
| Responsible ADB Officer | Sinha, Mukund Kumar |
| 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 | 19 Apr 2017 |
| Fact Finding | 16 May 2017 to 24 May 2017 |
| MRM | 18 Jul 2017 |
| Approval | 21 Feb 2018 |
| Last Review Mission | - |
| Last PDS Update | 22 Jul 2019 |
Loan 3645-BAN
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 21 Feb 2018 | 31 Jul 2018 | 09 Sep 2018 | 31 Dec 2022 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 447.37 | Cumulative Contract Awards | |||
| ADB | 354.00 | 21 Feb 2018 | 135.34 | 0.00 | 38% |
| Counterpart | 93.37 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 21 Feb 2018 | 35.37 | 0.00 | 10% |
Loan 3646-BAN
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 21 Feb 2018 | 31 Jul 2018 | 09 Sep 2018 | 31 Dec 2022 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 6.00 | Cumulative Contract Awards | |||
| ADB | 6.00 | 21 Feb 2018 | 0.00 | 0.00 | 0% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 21 Feb 2018 | 0.00 | 0.00 | 0% |
TA 9504-BAN
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 21 Feb 2018 | 03 Mar 2019 | 03 Mar 2019 | 31 Oct 2019 | 31 Oct 2021 | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 0.00 | 500,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 500,000.00 | 21 Feb 2018 | 0.00 |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | - | Satisfactory | Unsatisfactory | - | 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.
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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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Related Publications
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Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Contractor Address | Executing Agency | Contract Description | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|---|---|
| 40 NOS. BROAD GAUGE DIESEL ELECTRIC LOCOMOTIVE | Loan 3645 | 30 Jan 2019 | PROGRESS RAIL LOCOMOTIVE INC | 9301 WEST 55TH STREET LA GRANGE ILLINOIS 60525 UNITED STATES | Bangladesh Railway | SUPPLY OF GOODS | 135,340,344.41 | 135,340,344.41 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Railway Rolling Stock Operations Improvement Project: Procurement Plan | Procurement Plans | Dec 2017 |