Railway Rolling Stock Operations Improvement Project (RRP BAN 50312-003)

SUMMARY REDUCTION AND SOCIAL STRATEGY

Country: Project Title: Railway Rolling Stock Operations Improvement Project

Lending/Financing Project Loan Department/ South Asia Department/ Modality: Division: Transport and Communications Division

I. POVERTY AND SOCIAL ANALYSIS AND STRATEGY Poverty targeting: general intervention A. Links to the National and Inclusive Growth Strategy and Country Partnership Strategy Most of the rolling stock of is aged over 30 years, often requiring frequent repair as well as spare parts. To address this issue, ADB approved in 2015 the Railway Rolling Stock Project to finance the procurement of 264 passenger carriages, 10 locomotives, and additional maintenance equipment.1 ADB proposes investing further in Bangladesh Railway’s overall rolling stock through this new Railway Rolling Stock Operations Improvement Project. It aims to finance 40 fuel-efficient diesel locomotives, 125 luggage vans for passenger trains, and 1,000 vans and wagons for freight trains. Moreover, the project proposes to finance consulting services to prepare the detailed designs of four maintenance workshops and/or sheds of diesel locomotives and diesel electric multiple units (DEMU). The total project cost is $453.37 million. The project is strongly aligned with the government’s Seventh Five-Year Plan, FY2016–FY2020, which aims to develop the railway sector.2 It also supports the latest ADB Country Partnership Strategy, 2016–2020 promoting investments in sustainable transport.3 The project will be implemented by Bangladesh Railway. B. Results from the Poverty and Social Analysis during Due Diligence 1. Key poverty and social issues. The project does not specifically target the poor, but addresses their mobility needs as the poor are important train users. Despite considerable progress in poverty reduction from 48.8% in 2000 to 31.5% in 2010, the incidence of poverty in Bangladesh remains high, with a third of the population considered as poor and 17.6% as extremely poor.4 As railway is one of the most affordable and reliable transport means in the country, improved passenger carriage capacity will help the poor access economic opportunities and educational and health services.

2. Beneficiaries. The key outcome of the project will be Bangladesh Railway’s increased operational capacity and energy efficiency to facilitate the transportation of goods and passengers. The most important beneficiaries are the train users, both passengers of all ticketed classes and freight transportation users.

3. Impact channels. The project will directly support Bangladesh Railway’s operational capacity while encouraging the reduction of carbon dioxide emissions through targeting the procurement of fuel-efficient locomotives. Moreover, by supporting Bangladesh Railway’s freight transportation capacity, the project will facilitate access to goods across the country.

4. Other social and poverty issues. No other social and poverty issues were identified during due diligence. 5. Design features. The locomotives procured under the project will be equipped with auxiliary power units that are significantly more fuel efficient. It is estimated that they consume about 85% less fuel than main engines.

1 ADB. https://www.adb.org/projects/49094-001/main#project-overview. 2 Government of Bangladesh, Planning Commission, Ministry of Planning. 2015. Seven Five-Year Plan: 2016–2020. . 3 ADB. 2016. Country Partnership Strategy: Bangladesh, 2016–2020. Manila. 4 Ministry of Planning, Bangladesh Bureau of Statistics. 2010. Report of the Household Income and Expenditure Survey 2010. Dhaka. Poverty was reduced by 1.7 percentage points per year from 2005 to 2010.

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II. PARTICIPATION AND EMPOWERING THE POOR 1. Participatory approaches and project activities. Consultations undertaken during the preparation of the SASEC Railway Connectivity: Akhaura–Laksam Double Track Project (Loans 3169/70-BAN), approved in 2014, and SASEC –Cox’s Bazar Railway Project, Phase 1(MFF 0094-BAN) approved in 2016, show that people have a positive attitude towards the improvement of the railway services and viewed rail transport as a key factor in improving opportunities for business development and access to basic services such as education, health care, and administrative services. Moreover, they viewed the project as an important factor in facilitating tourism activities. 3. Civil society organizations. Civil society has no role in project implementation. 4. The following forms of civil society organization participation are envisaged during project implementation, rated as high (H), medium (M), low (L), or not applicable (NA). L Information gathering and sharing L Consultation L Collaboration L Partnership 5. Participation plan. Yes. No. No separate consultation and participation (C&P) plan has been prepared for this project. III. GENDER AND DEVELOPMENT Gender mainstreaming category: No gender element (NGE) A. Key issues. Women will equally benefit from the project, as they are important railway users. However, the nature of the project (i.e., the procurement of locomotives, luggage vans, and freight wagons) does not lend itself to gender mainstreaming activities. The project is therefore categorized as no gender elements. B. Key actions. Gender action plan Other actions or measures No action or measure The project does not require a gender action plan. IV. ADDRESSING SOCIAL SAFEGUARD ISSUES A. Involuntary Resettlement Safeguard Category: A B C FI 1. Key impacts In accordance with ADB’s Safeguard Policy Statement (2009), the project is classified as C for involuntary resettlement. The project mainly involves the procurement of rolling stock and, as such, does not lead to resettlement impacts. However, the consulting services for the design of the four maintenance workshops will include conducting the due diligence of involuntary resettlement impacts. 2. Strategy to address the impacts. Given that the project is classified as C and has no involuntary resettlement impacts, no strategy is needed. 3. Plan or other Actions. Resettlement plan Combined resettlement and indigenous peoples plan Resettlement framework Combined resettlement framework and indigenous peoples Environmental and social management planning framework system arrangement Social impact matrix No action

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B. Indigenous Peoples Safeguard Category: A B C FI 1. Key impacts. In accordance with ADB’s Safeguard Policy Statement (2009), the project is classified as C for indigenous peoples. The project involves the procurement of rolling stock and, as such, will not lead to adverse social impacts on indigenous peoples. However, the consulting services for the design of the four maintenance workshops will include conducting the due diligence for impacts on indigenous peoples. Is broad community support triggered? Yes No 2. Strategy to address the impacts. The project is classified as C and has no impacts on indigenous peoples, with no strategy needed. 3. Plan or other actions. Indigenous peoples plan Combined resettlement plan and indigenous Indigenous peoples planning framework peoples plan Environmental and social management system Combined resettlement framework and indigenous arrangement peoples planning framework Social impact matrix Indigenous peoples plan elements integrated in No action project with a summary V. ADDRESSING OTHER SOCIAL RISKS A. Risks in the Labor Market 1. Relevance of the project for the country’s or region’s or sector’s labor market. L unemployment L underemployment L retrenchment L core labor standards 2. Labor market impact. The project does not include civil works and will not have an impact on the labor market. B. Affordability The project will not affect the affordability of travel by rail. C. Communicable Diseases and Other Social Risks 1. Indicate the respective risks, if any, and rate the impact as high (H), medium (M), low (L), or not applicable (NA): L Communicable diseases L Human trafficking 2. Describe the related risks of the project on people in project area. The project involves the procurement of rolling stock and, as such, does not have any impacts on the incidence of HIV/AIDS and human trafficking. VI. MONITORING AND EVALUATION 1. Targets and indicators. The key social target of the project is the preparation of the involuntary resettlement and indigenous peoples’ due diligence associated with the design of new/upgraded maintenance workshops. This target is already included in the consulting services’ terms of reference. 2. Required human resources. The project will be monitored by the executing agency and ADB staff. 3. Information in PAM. The timeframe for project review, monitoring, and completion reports are included in the PAM. 4. Monitoring tools. Given that there are no relevant social indicators to monitor, no specific monitoring tools have been developed.

ADB = Asian Development Bank, CO2=carbon dioxide, PAM = project administration manual, SASEC = South Asian Subregional Economic Cooperation. Source: Asian Development Bank.