ADB to provide $150m as its second tranche for BR

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Asian Development Bank (ADB) will provide US$ 150 million as second tranche of its US$ 430 million committed fund this year to help improve the efficiency and capacity of the country's rail transport.

ADB has promised to provide a total of US$430 million to Bangladesh Railway (BR) over five years through a multi-tranche financing facili ty for Bangladesh Railways Sector Improvement Project (BRSIP), said a senior planning official of BR.

"The $150 million loan will be used for construction of chord line from Dhaka to Laksam, procurement of 50 BG and 100 MG carriages and construction of metre gauge line from Bogra to Jamtail," the official said.

As per the agreement, ADB will release $100 million and $50 million loans during 2009 and 2011. BRSIP is developed jointly by ADB, Japan Bank for International Cooperation (JBIC) and the World Bank together with the Bangladesh government as a comprehensive package of support for reforms and investments in Bangladesh Railway (BR).

Under the BRSIP, some sub-projects including Line Capacity Improvement between Dhaka and Tongi by introducing Intermediate Block Signalling, Upgrade Signalling at 14 stations between Ishurdi and Dharsana and rehabilitation of yards and extension of loops at different stations between Khulna and Parbatipur will be implemented. Earlier, BR got US$ 130 million in the first phase to carry out reforms in the railway and construction of double line between Tongi and Bhairab Bazar as well as signalling.

ADB also provided a $30 million loan for capacity enhancement of the BR.

ADB has been the lead development agency in the country's railway sector, providing assistance to improve the Dhaka-Chittagong and Khulna-Parbatipur lines and for the Jamuna Bridge Railway Link approved in 1997. Earlier in 1994, ADB approved a programme of loan for the railway sector designed to support the government's macro-economic stabilisation programme.