Five BR projects lined up for $200m AIIB funding

Bangladesh Railway (BR) plans to seek US$ 200 million from China-led Asian Infrastructure Investment Bank (AIIB) for its five projects after getting the bank's positive indications.
Officials said the BR move came after an AIIB delegation met with the railway authorities with an indication of making investment in the railway sector.
The delegation was here to attend the two-day Bangladesh Development Forum meeting held in the city on November 15-16.
The sources said the BR in principle agreed to seek the money from the newly-established bank for five projects under its trillion-taka modernisation scheme. The agreement came following the "positive indications".
The delegation comprised Seethatjy Chander, operations advisor, and Ulrike Lassmann, senior operations officer. They informed the BR high officials that the AIIB would soon start its operations in the country through investing in infrastructure development.
They also guided the BR in preparing projects which would need no construction work, land acquisition etc to get the AIIB funds.
 "We have selected five projects to procure rolling stock and get technical and consultancy support as per the AIIB guidelines," said an official, preferring not to be named.
 He said the BR has shortage of horse-power locomotives for shunting purposes and there is need for overhauling some of the locomotives dumped in workshop, for which quite a good number of spare parts would be needed.
Railway considers the AIIB funding important as it has taken up a Tk 2.3 trillion plan to modernise the pro-poor transport sector aiming to revive its lost glory.
The state-controlled railway authority now implements projects with the financial support of the government and other development partners, mainly the Asian Development Bank and Japan International Cooperation Agency.
The projects being considered for the US$200 million AIIB funds are purchase of 30 shunting locomotives, procurement of 75 luggage vans, assessment and procurement of locomotive spares and a feasibility study for remodelling of the Dhaka Biman Bandar railway station.
 Of the projects, the Dhaka airport railway-station has been considered for establishing a multimodal hub as it is now being used by almost 50 per cent of Dhaka-bound passengers.
The package also includes a potential project under public-private partnership.  
The AIIB delegation which attended the Development Forum in November made the first visit to Bangladesh after it was formed in June under the leadership of China, in what is seen as one of steps towards building up an alternative financial order.
Bangladesh is one of the 57 members of the multilateral development bank.
Meanwhile, Bangladesh Railway (BR) is going to convert the existing manual signaling system from Chinki Astana to Chittagong into a digital one as part of modernising its western zone operations.
The 320-kilometre Dhaka-Chittagong rail corridor has two missing links - Akhaura-Laksam and Chinki Astana-Chittagong - which have no computer-based interlocking (CBI) signaling system to operate signals of stations through control room.
BR has assigned a Korean firm - LSIS Company Limited - to install CBI signaling system on 68-km rail-line from Chinki Astana to Chittagong at a cost of Tk 1.15 billion.
A deal signing ceremony in this regard was held at Railway Bhaban in the capital on Thursday.
Project director Mohammad Abul Kalam and LSIS public business division director Jong Chan Lee signed the agreement on behalf of the respective sides.
Secretary of Railway Ministry Firoz Salauddin and BR Director General Amzad Hossain were also present on the occasion.
Under the contract, design, supply, installation, testing and commissioning of CBI color lighting signaling system as well as related works and services at 11 stations between Chinki Astana and Chittagong rail station will be carried out in two years period, effective from the date of signing.
BR has taken the signaling system replacement and modernization project at a cost of Tk 2.24 billion. Of the cost, Tk 1.8 billion will be provided by Korea under its EDCF.
Sources said after full installation of CBI signaling system on 139-km route, speed of trains on Dhaka-Chittagong railway corridor will increase significantly and possibility of accidents will also decrease.
They said BR has already taken move to upgrade the last missing link between Akhaura and Laksam to CBI signaling system.
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