Release date: 3 July 2014
Promoter – Financial Intermediary
BANGLADESH RAILWAYLocation
Description
Construction of a second track and upgrading of the existing track on the 72 km section between Laksam and Akhaura in eastern central Bangladesh. The project is part of a broader program to upgrade, by 2020, the whole 321 km rail corridor between the capital Dhaka and Chittagong, the second city and main national port. The line is part of the southern corridor of the Trans Asian Railway network, promulgated in 1999 by the UN Economic and Social Commission for Asia and Pacific. The project will also facilitate the rail connection of the landlocked NE States of India with a seaport.
Objectives
The proposed operation is in line with the objectives of the 2014-2020 External Lending Mandate through its contribution to the development of economic infrastructure and climate change mitigation. The government's 2011-2015 Five Year Plan and 2004 National Land Transport Policy highly prioritise the development of this rail corridor. The project is also consistent with the EU Country Strategy Paper, 2007-2013 due to its contribution to enhancing trade, investment and economic development.
Comments
This operation is covered by the EU Guarantee for EIB loans outside the EU.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 135 million
Total cost (Approximate amount)
EUR 555 million
Environmental aspects
If situated in the EU, the project would fall under Annex II of the EIA Directive. In accordance with domestic legislation, it has been automatically screened in for a full EIA procedure. EIA scoping was completed in May 2013 and the preparation of the Environmental Impact Assessment report is currently ongoing. The process and outcome of the EIA procedure is to be assessed during appraisal.
The project will require the acquisition of about 60 ha of land entailing permanent involuntary resettlement of about 1460 households/businesses and about 720 agricultural plots plus generate some temporary rail and limited road traffic disruption. Compliance with relevant EIB Social Standards will be reviewed.
Procurement
The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.
Status
Signed - 15/10/2015
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).