BANGLADESH RAIL FLEET MODERNIZATION PROJECT

Promoter – Financial Intermediary

PUBLIC ENTITY(IES)

Location

• Bangladesh

Description

The project consists of the purchase of about 200 rail passenger carriages and about 40 locomotives for regional and intercity services on the 1,230-km long broad/dual gauge network across Bangladesh as well as international services to India.

Objectives

The project consists of the partial replacement of obsolete vehicles and a partial expansion of the fleet to better meet growing demand. The project is consistent with the 20 Year Railway Development Plan. The project will contribute to one of the sub-targets under Sustainable Development Goal 9, related to building resilient infrastructure and promoting sustainable industrialisation, namely: to develop quality, reliable, sustainable and resilient infrastructure, including regional and trans-border infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.

Sector(s)

• Transport - Transportation and storage

Under ELM Guarantee

This operation is covered by the ELM Guarantee.

Proposed EIB finance (Approximate amount)

EUR 110 million

Total cost (Approximate amount)

EUR 327 million

Environmental aspects

The project concerns the manufacture of rail rolling stock, an activity which falls outside the scope of the Environmental Impact Assessment (EIA) Directive 2011/92/EC as amended. The new rolling stock will meet current standards for crashworthiness, energy efficiency and emissions. The arrangements for the stabling and maintenance of the rolling stock and the need for related infrastructure improvements will be assessed during the appraisal.

Procurement

The Bank will require the promoter to ensure that any procurement procedures are done in accordance with the Bank's Guide to Procurement and the relevant applicable EU public procurement rules.

Status

Signed - 14/12/2018