The New Nation - Internet Edition

Inadequate and poorly managed infrastructure services have always been a major hindrance to for economic growth and poverty reduction for Bangladesh. The Bangladesh Railway system has the potential to meet the growing transport demand in the country in a more environmentally and socially sustainable way if properly managed. Transformation of Bangladesh Railway into a government-owned corporate entity is expected to improve the operational efficiency of the organization and to reposition railways as a leading mode of transport in the country.

A World Bank team recently discussed with the Government of Bangladesh (GOB) and Bangladesh Railway (BR) regarding the reform progress made so far. The discussions also highlighted the key decisions to be taken by the Government. The reform will include the proposed structure along Lines of Business (LOB) for BR along with a detailed organogram. The government needs to decide on the most appropriate legal status of BR and a Bill to transform BR accordingly, to ensure that the objectives of the reform are achieved. The second phase (US$60 million) of the Development Policy Credit (DPC) from the World Bank will depend on the progress of these reforms. The Steering Committee, jointly chaired by the Ministry of Communication and the Ministry of Finance, in charge of reviewing the progress made so far, will play a key role in moving ahead with the reforms. The total disbursement of the US$ 40million support for the 'Bangladesh Rail way reform programmatic development policy credit' is completed on January 2007.

The World Bank team also reviewed the preparation of the proposed Railway Modernization (investment) Project, which will be dependant on satisfactory progress in the reform of Bangladesh Railways. Indeed, without the reform, it is likely that the objectives of the investment project would not be achieved. The investment project would focus on double tracking of the Akhaura-Laksham railway line on the Dhaka-Chittagong corridor.

The Asian Development Bank and the Japan Bank for International Cooperation (JBIC), in close coordination with the World Bank, will support the Bangladesh Railway reform and investment program.