Railway Rolling Stock Operations Improvement Project (ADB-50312-003)

Countries
  • Bangladesh
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Government of Bangladesh
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Loan Amount (USD)
$ 360.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 860.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Jul 21, 2020

Disclosed by Bank Sep 27, 2017

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed 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.

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.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
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PROJECT CONTACTS

Responsible ADB Officer: Sakai, Tsuneyuki
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

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main

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