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.
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.
2. The MFF is structured such that the reform project will provide continuous support to implement the agreed reform agenda, whilst the investment program will be supported by a series of four tranches. The reform and the investment projects are integrated as approval of subsequent tranches for investment subprojects is dependent on the implementation of specific reform actions agreed upon in the railway reform action plan in the FFA.
3. The first tranche under the MFF was approved on 13 February 2007 and comprises of two loans: (i) loan 2316 for $100 million from ADB s ordinary capital resources to finance investment projects; and (ii) loan 2317 for $30 million equivalent from ADB s special fund resources to finance the reform project.
4. The second tranche with a loan for $150 million was scheduled for approval in January 2008. It will finance (i) construction of other subprojects in the Dhaka Chittagong corridor and Dhaka Darsana Khulna corridor studied and prepared under the first loan and that satisfy the agreed subproject selection criteria in the FFA, and (ii) construction supervision consulting services for the approved subprojects.
Asian Development Bank.Project Number.32234-04
Asian Development Bank.Project Number.32234-04
a
