36330-033: Railway Sector Investment Program - Tranche 2

Project Data Sheet (PDS): Details

Description

The second tranche will support the development of an energy-efficient, safe, reliable, affordable and environment-friendly railway transport system in India by improving railway transport capacity of the railway routes financed under the investment program. The outputs of this second tranche will be the supply and delivery of track components to the construction sites ready for installation in the railway projects financed under the RSIP. The track components to be procured under this tranche include rails for the railway track and thick-web switches, i.e. major turnout components. The outputs under this tranche are estimated to cost $227.2 million . The government has requested a loan of $130 million from ADB s ordinary capital resources to help finance the outputs under Tranche 2. The loan will have a 25-year term, including a grace period of 5 years, an annual interest rate determined in accordance with ADB s London interbank offered rate (LIBOR)-based lending facility , a commitment charge of 0.15% per year, and such other terms and conditions set forth in the draft loan agreement.

Project Rationale and Linkage to Country/Regional Strategy

A framework financing agreement (FFA) for the Railway Sector Investment Program (RSIP) was signed on 31 August 2011 between India and the Asian Development Bank (ADB). The RSIP was approved on 18 October 2011 by ADB s Board of Directors as a multitranche financing facility (MFF) for $500 million equivalent from ADB s ordinary capital resources (OCR); the total project cost is estimated at $1,144.6 million equivalent. The availability period of the MFF is up to 30 June 2019 and the last PFR has to be submitted until 31 December 2017. The RSIP will increase the capacity of the existing rail network to handle traffic demand necessary to sustain the country's economic growth by (i) increase in and more efficient utilization of the physical rail infrastructure through electrification, doubling rail tracks on critical routes, (ii) increasing the efficiency of the existing infrastructure usage through the introduction of modern signaling systems, and (iii) improving operational and financial efficiency through institutional reform, especially on accounting reform in synchronization with the Government Accounting Standards Advisory Board (GASAB). This will (i) reduce fuel consumption and enhance energy efficiency, (ii) improve the environment and reduce pollution, (iii) enhance railway safety, enabling railway users to benefit from lower transport costs, (iv) increase line capacity, benefiting consumers, and producers of goods and services through the provision of timely and efficient transport services and lower logistics costs, and (v) improve staff productivity. The first tranche (Loan 2793) under the MFF was approved on 18 October 2011 for $150 million OCR to finance slices of investment subprojects and institutional development. The second PFR was received on 29 October 2013. The government requested for a loan of $130 million OCR to finance procurement of track components, i.e. rails and thick-web switches, which will be installed in the railway lines improved under the RSIP. The procurement of track components under Tranche 2 satisfies the selection criteria for projects to be funded under the MFF as set forth in Schedule 4 of the FFA . This PFR Report Tranche 2 summarizes the contents of the documents submitted together with the government s PFR and explains the steps followed to comply with tranche review, due diligence, and approval process.

Impact

Energy-efficient, safe, reliable, affordable and environment-friendly railway transport developed

Project Outcome

Description of Outcome

Improved railway transport capacity in the project rail routes

Implementation Progress

Description of Project Outputs

Track components delivered to construction sites for installation

Status of Operation/Construction or Implementation Progress

- First contract for $100 million was awarded on 11 February 2014; second contract for $10 million was awarded on 24 March 2014; third contract is likely to be awarded within Q3 or Q4/2014. - Delivery of 60 kg rails started in Q3; delivery of 52 kg rails will commence after approval of yard plans from Zonal Railways.

Safeguard Categories

Environment: C
Involuntary Resettlement: C
Indigenous Peoples: C

Summary of Environmental and Social Aspects

Environmental Aspect

The second tranche involves solely the procurement of track components, i.e. rails and thick-web switches that will be installed on railway corridors being upgraded under the RSIP. According to the ADB s Safeguard Policy Statement (2009), the tranche is categorized as C for impacts on the environment, involuntary resettlement, and indigenous peoples. An assessment for impacts on the three components for all subprojects in the railway corridors upgraded under the RSIP has been conducted during processing of Tranche 1 of the MFF; the assessment includes the impacts from installation of the track components procured under Tranche 2. There are no environmentally sensitive features in the proposed investment. Hence, Tranche 1 has been categorized as B in accordance with ADB's SPS. Accordingly, initial environmental examinations (IEEs) were prepared for all five subprojects (4 doubling and 1 electrification projects) to assess the potential environment impacts and recommend appropriate mitigation measures. The report for Pune Guntakal electrification and Daund Gulbarga doubling has been combined. Hence, there are a total of four IEE reports. These reports include an environment management plan (EMP) and an environment monitoring plan (EMOP). An environmental assessment and review framework (EARF) has been prepared to guide the implementation of environment safeguard requirements for the investment program and subsequent tranches. If there will be any changes in project design or subprojects that will trigger new environmental issues during implementation, the EARF must be referred to for further actions on environment safeguards. The second tranche involves solely the procurement of rails and switches that will be installed on existing railway corridors. According to the ADB s SPS, the tranche is categorized as C for impacts on environment. The EMP is a plan for mitigating all anticipated environment impacts during project construction and operation. Specific mitigation measures with details on location, time and responsible agency for implementation is given in the EMP. Mitigation measures for implementation during the construction stage is implemented by the contractor and during operation stage by RVNL. Monitoring of the EMP implementation during construction is carried out by RVNL and the PMC with appropriate guidance and advice by the General Consultants (GC). Records on implementation of the mitigation measures on site will be maintained by the contractor in the form of checklists or EMP tables on a weekly basis. Based on these checklists and spot checks of at least once a month by the PMC and RVNL, monitoring reports will be compiled on a quarterly basis. These quarterly monitoring reports will further be compiled into an annual monitoring report to be submitted to ADB for disclosure on the ADB website. If there are any changes in the design or alignment, the EMP of the respective sub-project will be updated to account for any additional or new environmental impacts. All required clearances and permits such as forestry clearance and permit from the State Pollution Control Board (SPCB) for operation of hot mix plants must be obtained by the contractor before the implementation of the respective construction activity. All grievances and concerns, particularly related to the implementation of the RP, IPP, and EMP, will be acknowledged, responded, evaluated, and corrective actions taken immediately. All grievances shall be received, assessed, and resolved by the jurisdictional PIU within 30 days of receipt. In case the PIU is unable to resolve the issue, the matter will be forwarded to the social and environment unit at RNVL Headquarters for corrective action. All grievances will be recorded, decisions documented, and made accessible to the public. The outcome of the redress shall form part of the quarterly report to ADB.

Involuntary Resettlement

Under the first tranche, six resettlement plans (RPs) were prepared in accordance with ADB s Safeguard Policy Statement (2009) (SPS), Land Acquisition Act, 1894 (amended in 1984), and National Rehabilitation and Resettlement Policy (NRRP-2007). According to the project census, 3,945 persons will be affected by the project out of which 76 households are physically displaced and 344 households will be economically displaced. The total resettlement budget for the project is INR 135,033,578. The first tranche is categorized as A in accordance to ADB SPS. All grievances and concerns, particularly related to the implementation of the RP, IPP, and EMP, will be acknowledged, responded, evaluated, and corrective actions taken immediately. All grievances shall be received, assessed, and resolved by the jurisdictional PIU within 30 days of receipt. In case the PIU is unable to resolve the issue, the matter will be forwarded to the social and environment unit at RNVL Headquarters for corrective action. All grievances will be recorded, decisions documented, and made accessible to the public. The outcome of the redress shall form part of the quarterly report to ADB.

Indigenous Peoples

The second tranche involves solely the procurement of track components, i.e. rails and thick-web switches that will be installed on railway corridors being upgraded under the RSIP. According to the ADB s Safeguard Policy Statement (2009), the tranche is categorized as C for impacts on the environment, involuntary resettlement, and indigenous peoples. An assessment for impacts on the three components for all subprojects in the railway corridors upgraded under the RSIP has been conducted during processing of Tranche 1 of the MFF; the assessment includes the impacts from installation of the track components procured under Tranche 2. In case of any adverse impacts on indigenous people identified during planning, design or implementation of the subproject, the MOR and RVNL will ensure that the indigenous peoples plan (IPP) is prepared in accordance with the indigenous peoples planning framework (IPPF) and the ADB s SPS and the same is further approved by ADB before award of related civil works contract and implemented before commencement of the relevant section of the civil works contract as applicable. Any update of IPP during implementation shall follow requirements similar to the RPs as described for involuntary resettlement. All grievances and concerns, particularly related to the implementation of the RP, IPP, and EMP, will be acknowledged, responded, evaluated, and corrective actions taken immediately. All grievances shall be received, assessed, and resolved by the jurisdictional PIU within 30 days of receipt. In case the PIU is unable to resolve the issue, the matter will be forwarded to the social and environment unit at RNVL Headquarters for corrective action. All grievances will be recorded, decisions documented, and made accessible to the public. The outcome of the redress shall form part of the quarterly report to ADB.

Stakeholder Participation and Consultation

During Project Design

In the course of the social assessment, a series of participatory consultations were held with stakeholders and beneficiaries in various socioeconomic groups in the subproject areas, with 125 focus group discussions held at various locations. Groups of men, women, and indigenous people residing in the subproject areas were selected at random. Key stakeholder interviews were conducted with gram panchayat sarpanch (village or small-town head), anganwadi workers (those working at centers offering care for children and mothers), midwives, schoolteachers, farmers, traders, business people, and health workers. A total of 91 focus group discussions exclusively for women were also held. Informants articulated the perceived benefits from the investment program. They were positive about the need for the investment program, especially in terms of improved accessibility for villagers, and better amenities reaching households in the project districts. The MOR will organize further consultations with the stakeholders and beneficiaries within the subproject area to apprise them of economic development in the five states. The perceptions and priorities of the people will be taken into consideration when finalizing the subproject designs and preparing mitigation measures.

During Project Implementation

In the course of the social assessment, a series of participatory consultations were held with stakeholders and beneficiaries in various socioeconomic groups in the subproject areas, with 125 focus group discussions held at various locations. Groups of men, women, and indigenous people residing in the subproject areas were selected at random. Key stakeholder interviews were conducted with gram panchayat sarpanch (village or small-town head), anganwadi workers (those working at centers offering care for children and mothers), midwives, schoolteachers, farmers, traders, business people, and health workers. A total of 91 focus group discussions exclusively for women were also held. Informants articulated the perceived benefits from the investment program. They were positive about the need for the investment program, especially in terms of improved accessibility for villagers, and better amenities reaching households in the project districts. The MOR will organize further consultations with the stakeholders and beneficiaries within the subproject area to apprise them of economic development in the five states. The perceptions and priorities of the people will be taken into consideration when finalizing the subproject designs and preparing mitigation measures.

 

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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