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

Countries
  • Bangladesh
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
Bank Risk Rating
C
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower
Government of Bangladesh
The holder of the loan, grant, or other investment.
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, etc.
Loan Amount (USD)
$ 360.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jan 3, 2018

Disclosed by Bank Sep 27, 2017


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project 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
  • Asian Development Bank (ADB)
Contact Information
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