The projects proposed for financing under the requested PFR are:
1. Financing of the funding gap due to cost overrun in the Tongi-Bhairab Bazar Double Track subproject under the first tranche;
2. Rehabilitation of yards and extension of loops at different stations in the Darsana - Ishurdi - Sirajganj Bazar section; and
3. Upgrading of Signaling at 11 Stations between Ishurdi and Darsana.
Project Rationale
1. A framework financing agreement (FFA) for the Railway Sector Investment Program (RSIP) was signed on 7 September 2006 between the Government of Bangladesh and the Asian Development Bank (ADB). The RSIP was approved on 10 October 2006 by ADB s Board of Directors as a multitranche financing facility (MFF) for $430 million.
The RSIP is based on the Government s Sector Roadmap and Investment Plan for 2007 2013 and will improve the performance of the railway sector by implementing (i) a reform project of sector policy, organizational, and capacity building reforms to make Bangladesh Railway (BR) more commercially focused, and improve governance and accountability; and (ii) an investment project of infrastructure and rolling stock capacity improvement investments to overcome capacity bottlenecks in sectors where such investments are both economically and financially viable, e.g., the Dhaka Chittagong and the Dhaka Darsana Khulna corridors.
ADB.South Asia Department.Project Number 32234-04, Bangladesh Railway (BR).
a
