| Project Detail |
The proposed South Asia Subregional Economic Cooperation (SASEC) Dhirasram Inland Container Depot (DICD) Project will support construction of a new inland container depot (ICD) in the north of Dhaka with direct rail link to Chattogram Port and Indian borders. The project will apply the public-private partnership (PPP) scheme where a concessionaire will finance construction of the superstructure of DICD and procurement of cargo handling equipment, and will be responsible for operation and maintenance. The Asian Development Bank (ADB) will finance construction of the substructure of DICD.
Project Name Support for Preparation of South Asia Subregional Economic Cooperation Dhirasram Inland Container Depot Project
Project Number 56172-001
Country / Economy Bangladesh
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 10040-BAN: Support for Preparation of South Asia Subregional Economic Cooperation Dhirasram Inland Container Depot Project
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
Sector / Subsector
Transport / Multimodal logistics
Gender Equity and Mainstreaming Some gender elements
Description
The proposed South Asia Subregional Economic Cooperation (SASEC) Dhirasram Inland Container Depot (DICD) Project will support construction of a new inland container depot (ICD) in the north of Dhaka with direct rail link to Chattogram Port and Indian borders. The project will apply the public-private partnership (PPP) scheme where a concessionaire will finance construction of the superstructure of DICD and procurement of cargo handling equipment, and will be responsible for operation and maintenance. The Asian Development Bank (ADB) will finance construction of the substructure of DICD.
The project will strengthen the national logistics network enabling operation of more container freight trains connecting with the port and Indian borders. The project will contribute to modal shift toward environment-friendly and sustainable multimodal transport in Bangladesh. Also, it will alleviate road congestion in Dhaka by replacing the Kamlapur ICD in the city center once the DICD is operational. Accordingly, the project will reduce truck inflow and greenhouse gas (GHG) emission from logistics operation.
The project will be aligned with the following impacts: trade logistics improved, and export diversification advanced.1 The project outcome will be capacity of container transportation by rail in Bangladesh increased. The project outputs will be: i) substructure of DICD constructed,2 ii) National ICD Development Plan prepared; and iii) readiness of DICD operation and supervision advanced. The indicative amount of regular ordinary capital resources loan from ADB is $250 million out of the total project cost of $794.6 million. Investment by a PPP concessionaire is expected to be at $108 million while Bangladesh Railways counterpart financing is $416.2 million.
Project Rationale and Linkage to Country/Regional Strategy The ensuing loan will develop Bangladeshs largest ICD at Dhirasram in the north of Dhaka, with direct rail link with Chattogram Port and Indian borders. The DICD is expected to substantially increase container transport capacity of Bangladesh Railway. |
