Rail Logistics Project (WB-P177856)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
  • Multilateral Investment Guarantee Agency (MIGA)
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
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
Dedicated Freight Corridor Corporation India Limited
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.
Investment Amount (USD)
$ 250.00 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.
Loan Amount (USD)
$ 250.00 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)
$ 500.00 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.
Primary Source

Original disclosure @ WB website

Updated in EWS May 8, 2022

Disclosed by Bank Feb 11, 2022


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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.

According to World Bank documents, the objectives of the project are the following:

(i) to increase freight modal shift to safe and low carbon transport along the Eastern Dedicated Freight Corridor

(ii) to develop Dedicated Freight Corridor Corporation of India Limited as a sustainable institution to provide rail freight connectivity and multimodal logistics services.

DFCCIL is currently constructing two corridors: Western Dedicated Freight corridor (WDFC) and Eastern Dedicated Freight Corridor (EDFC). EDFC is financed by the World Bank and will link Ludhiana through Delhi towards Kolkata. WDFC, financed by the Japan International Cooperation Agency (JICA) will link Mumbai and Delhi. Once completed, the Western and Eastern DFCs will lead to sharp expansion in rail track capacity. In addition, as track infrastructure created under EDFC project enables (i) movement of high-quality wagons with higher axle loads (32 ton instead of current 25 ton), (ii) higher speeds (100 kmph vs. current 75 kmph) and (iii) longer trains (1.5 kms vs. current 700 m), it virtually unlocks even higher capacity for the freight rail segment. This capacity enhancement will improve efficiencies for the movement of freight trains. When freight is shifted to the DFCs, capacity on the mixed-use lines will be released enabling the development of semi high-speed passenger train services.

The Rail Logistics project is financing construction of two project corridors namely Bhaupur to Deen Dayal Upadhaya (earlier called Mughalsarai) and Khurja to Sahhewal section. The project will also finance last mile connectivity to terminals that will be identified later. Both sections put together cover 835 route kms.

This project builds on a series of earlier project engagements with DFCCIL. The EDFC program was financed through a series of three investment loans namely EDFC1, EDFC2, EDFC3.1 The overall Program Objective was to “meet the growing freight and passenger demand on the eastern corridor (Ludhiana-Delhi-Kolkata) with an improved level of service; and develop institutional capacities of DFCCIL and IR to build and operate the DFC network”. The sections included in each project were:

  1. EDFC 1 (P114338; approved in 2011) finances the Khurja –Bhaupur2 section (343 km); restructured in October 2015 to include the Khurja – Dadri section (47 kms); the project is now closed and the section operational.

  2. EDFC2 (P131765; approved in 2014) finances the Kanpur – Mughal Sarai section (393 km); the project has closed and the remaining work of the section is included in the current project.

  3. EDFC3 (P150158; approved in 2015) finances the Khurja – Ludhiana section (401 km); the project has closed and the remaining work of the section is included in the current project.

The three projects have created a platform for launching the efforts to bring commercial financing, private sector participation and customer-oriented culture to the railway sector in India.

ENVIRONMENT AND SOCIAL REVIEW

The environmental risk is high for the project due to the following reasons: 1. Scale of civil works involved (about 800km of railway corridor, which includes some fresh alignment and resultant impacts. 2. Staffing, capacity and performance of SEMU, E&S officials in the field offices and SESMRC as described above. 3. There continues to be a lag in the implementation of environmental management measures with EDFC2 rated as moderately unsatisfactory at close. 4. This is the first project for DFCCIL with ESF provisions with formal explicit requirements for OHS in ESS2, resource efficiency in ESS3. 5. Potential for impacts on important natural habitats is also possible for corridors other than those supported under the EDFC program for which will be undertaken as part of this project where stipulations of Net Gain in case of Critical Habitats or No Net Loss in case of Natural Habitats would need to be adhered to during those activities.

 
Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The Dedicated Freight Corridors is shifting the rail sector to a more commercial structure for delivering infrastructure, increase India’s freight rail network capacity, and create space for improving passenger services. The Government of India has adopted a new institutional framework for construction of the Dedicated Freight Corridors. The Dedicated Freight Corridor Corporation of India Limited (DFCCIL), an infrastructure company set up under the Companies Act (1956), whose shares are currently owned by MOR, will deliver, and manage the DFCs.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

1.Martha B. Lawrence,

Senior Transport Specialist

Telephone:5785+47773

Email ID:sayush@worldbank.org

2. Saroj Ayush

Senior Transport Specialist

Telephone:+1-202-473-4964

Email ID: mlawrence@worldbank.org

Dedicated Freight Corridor Corporation of India Limited

Ajay Kumar
Executive Director
ajaykumar@dfcc.co.in

ACCESS TO INFORMATION

To submit an information request for project information, you will have to create an account to access the Access to Information request form. You can learn more about this process at: https://www.worldbank.org/en/access-to-information/request-submission

ACCOUNTABILITY MECHANISM OF THE WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint

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