NDF - Financing for climate change and development projects

NAMA Proposal for the Railway Sector in Bangladesh [NDF C73]

Photo: Björn Möller
25.08.2014
The project will support the Bangladesh Railway to develop a National Appropriate Mitigation Action (NAMA) proposal to be registered under the United National Framework Convention for Climate Change (UNFCCC) NAMA registry.

Bangladesh
NAMA Proposal for the Railway Sector in Bangladesh
Ref: Small Grants Facility (SGF)

EUR 300,000
Project period: 2014-2018           
Partner Agency: Asian Development Bank

Objectives
The Government of Bangladesh have requested a loan from the Asian Development Bank and the European Investment Bank to implement the South Asia Sub-regional Economic Cooperation Railway Connectivity: Akhaura–Laksam Double Track Project. At the request of Bangladesh Railway (BR), the state-owned rail transport agency of Bangladesh and implementing agency of the project, a Capacity Development Technical Assistance (CDTA) has been attached to the project.

The CDTA includes two components, (i) project implementation support component, which will be funded by ADB and (ii) climate mitigation funding component, which will be funded by NDF. The overall expected outcome of the latter component is:

  1. A NAMA proposal for the rail sector
  2. A study on fossil fuel subsidy reform
  3. A financing plan for the NAMA
  4. Final NAMA report registered with the UNFCCC
  5. Establishment of a carbon footprint unit within BR

ADB will engage an international consulting firm with wide international experience in climate mitigation projects in the transport sector. Their main task will be to fulfil all steps to ensure successful registration of the final NAMA report with the UNFCCC. The consultants will prepare a NAMA technical proposal for clearly quantifying emission reductions from improvements in the rail sector and identifying investment needs.

They will also conduct a fossil fuel subsidy reform study. In addition, they will prepare a financing plan which will include measures for seeking financial benefits through bilateral support or tapping international climate funds or trading of carbon credits or other means. What will be included in the final NAMA report to be registered under UNFCCC is at this stage still open. The consultants will also be required to build the capacity of BR and the Climate Change Division (CCD) to continue monitoring activities required under NAMA. Synergies with other NDF projects can be expected and lessons learned will be shared.  

Financing
The linked CDTA is estimated to cost USD 1 million of which USD 0.6 million will be financed by ADB and USD 0.4 million by NDF (EUR 300,000). The overall South Asia Subregional Economic Cooperation Railway Connectivity: Akhaura–Laksam Double Track Project is estimated to cost approximately USD 805 million.

Contact info
Country Program Manager Martina Jägerhorn
+358 10 618 002

C73 Co-financing Agreement