The Ministry of Railway has finalised the draft 'tariff reform policy' to revise train fares annually.
The policy, when and if approved, will meet one of the major conditions set by the Asian Development Bank (ADB) for releasing the last tranche of its US$ 430 million credit to the railway sector, officials said.
They said an ADB mission will sit with the ministry and Bangladesh Railway (BR) next week to review the progress of its railway sector investment programme under which commitment of US$ 430 million loan was made in 2007.
Tariff reform policy was among the two prime requirements of the bank to release $ 50 million, the last and fourth tranche of the loan committed to reform of the BR, they added.
The officials said as the mission will sit with the Economic Relations Division, the MoR and BR during October 26-29, a report to turn BR container service corporation into a company was also prepared.
"We are ready to discuss both policies," said a BR official.
He said the tariff policy has been recommended in a bid to guide mechanism for automatic adjustment of train fares every year to minimise the sector's huge losses by reducing the gap between operational costs and earning from fares.
The official also said the aim of corporatisation of container business is to improve efficiency and increase capacity of container services of railway under a state-owned company.
During the meeting, sources said, the ADB mission will review the railway sector's reforms including process in achieving other reform targets as agreed by the government for receiving the 4th tranche.
The ADB signed an agreement to provide US $ 430 million to the railway sector in phases to reform Bangladesh Railway which has been incurring losses worth billions of taka every year.
However, due to allegation of irregularities and corruption, the release of ADB funds was delayed on several occasions. In the first tranche, the ADB released $ 100 million to carry out the work of Tongi-Bhairab Bazar double track, improve the signalling system on Dhaka-Chittagong railway line and for consultancy purposes of the reform project.
The BR also took several projects including rehabilitation work of Tongi-Bhairab Bazar double track and at yards, for the extension of loops of different stations in Darshana-Ishwardi-Sirajganj Bazar section and improving the signalling system of the same section under next two tranches.
However, the main reform of the BR has been shelved as the government shifted its stance on the operation the BR under a board and run Bangladesh Railway through corporation.
According to the ADB website, the Railway Sector Investment Programme, taken up based on the government's Sector Roadmap and Investment Plan for 2007-2013, was to improve the performance of the railway sector by implementing a reform project of sector policy, organisational and capacity building reforms to make BR more commercially focused. It was also to improve governance and accountability of the railway.
Under the programme, an investment project of infrastructure and rolling stock capacity improvement investments was also proposed to overcome capacity bottlenecks in sectors where such investments are both economically and financially viable, e.g. Dhaka-Chittagong and Dhaka-Darshana-Khulna corridors where it can support major direct investment.
   smunima@yahoo.com