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After more than one and a half decades, the World Bank is coming forward with its technical assistance to conduct a feasibility study on greening the operations of Bangladesh Railway (BR), officials said on Saturday.
The global lender has recently proposed to provide US$6.0 million in assistance under the "Green railway transport project preparation facility" under which a massive green-railway plan would be framed, said a senior official at the Economic Relations Division (ERD).
About one and a half decades ago, the Washington-based lender almost put on hold its support to BR for reasons like failure to bring expected reforms in improving the services, and the Padma Bridge construction scam.
Between 2009 and 2011, it provided around US$40 million as "Bangladesh Railway reform programmatic development policy credit", which was the last financial support to the state entity.
Meanwhile, the Asian Development Bank (ADB), Japan International Cooperation Agency (JICA), European Investment Bank (EIB), and Korea continued their support to develop the BR.
Insiders say lack of expected outcome from the railway reforms under the WB's last support in 2009 and Padma Bridge construction project scam were the key reasons for the suspension of the support.
In 2012, the World Bank suspended its $1.2 billion loan for the Padma Bridge project in Bangladesh, citing corruption concerns and the government's unsatisfactory response to investigations.
The BR has been a losing concern of the government for a long. Around 60 per cent of BR's operating revenues are from passenger services, followed by freight services with 20 per cent share.
Among the revenues from passenger services, intercity trains are the largest contributor, accounting for some 89 per cent.
Fare of intercity trains is fixed reasonably higher than those of local trains. Bangladesh Railway increased intercity trains and decreased local trains to focus on more revenue-generating segments for commercial-oriented operation.
Under the WB's proposed $6.0 million support, BR would conduct a feasibility study and prepare conceptual designs for making Kamalapur Railway Station and Airport Station multimodal hubs, for the improvement of the Dhaka-Chattogram freight corridor and Chattogram railway workshop and purchasing some locomotives for improving services, targeting elimination of carbon emission, a BR official said.
Based on the feasibility study and conceptual designs under the proposed TA project, the BR would undertake some investment projects for making the Kamalapur and Airport railway stations as multimodal-transport hubs, Dhaka-Chittagong a freight corridor and the proposed other infrastructure development of the BR, he added.
Meanwhile, the Planning Commission completed a Special Project Evaluation Committee meeting and the ERD arranged an inter-ministerial meeting for implementing the project.
As part of the project, there will be a feasibility study on reconstructing the station building yards, including the relocation of the existing operation and maintenance facilities to facilitate the construction of multimodal transport hubs at the Kamlapur and Dhaka Airport stations, said a PC official.
He said: "If we find the TA project viable, we will go for taking up investment projects. The TA and future projects will make BR's operation more green and environment friendly."
Reduction of carbon emission would be the main focus of the WB-supported TA project as well as the future investment projects, the BR official said.
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