Iraq Railways Extension and Modernization Project

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The Project focuses on improving and augmenting the existing railway infrastructure to better serve domestic and regional trade needs, as well as domestic passenger demand. The Project addresses significant challenges such as poor track conditions, aged locomotive equipment, and the lack of a signal control system and communication network for railway operations. Key activities under the Project include rehabilitating the existing single track where needed (building on ongoing investments under the Emergency Operation for Development (EODP) (P155732) and past government efforts to rehabilitate the network), installing European Train Control System (ETCS) signaling and ducts for Optical Fiber Cable (OFC), maintaining existing locomotives and rolling stock, supporting the capacity building of the IRR, and enabling private capital for railway operations and logistics centers around the rail corridor. The Project has four components: Component 1: Brownfield Railway Infrastructure Modernization and Rolling Stock Maintenance (Cost: US$857 million). This component will restore the single-track railway line from Umm Qasr Port to Mosul where needed (complementing ongoing and previous rehabilitation efforts as described earlier), install ETCS-based signaling along the entire line, and upgrade IRR’s infrastructure and rolling stock maintenance capability. The subcomponents include:a. Sub-Component 1.1: Track renewal of the north-south railway line from Al Yussifie (Baghdad) to Baghdad (32 km), Baghdad to Taji (20 km), and Baiji to Mosul (189 km). The IRR will contribute to the WB-funded track renewal by providing its rails.b. Sub-Component 1.2: Spot rehabilitation of the north-south railway line from Umm Qasr Port to Basra (72 km) and Basra to Al Yussifie (Baghdad) (520 km).c. Sub-Component 1.3: Installation of ETCS-based signaling and ducts for OFC along the entire north-south railway line Umm Qasr-Basra-Baghdad-Mosul (1,047 km). ETCS will include a safety level-crossing protection system for all legal crossings along the alignment (every mention of ETCS includes a safety level-crossing protection system).d. Sub-Component 1.4: Refurbishment of the maintenance workshop at Baiji and procurement of rolling stock maintenance equipment and spare parts. This subcomponent includes (i) plant and equipment for light maintenance of rolling stock, (ii) materials and spare parts for replacements, and (iii) refurbishment of the workshop at Baiji. Component 2: Railway Reform, Asset Management, and National Integration (Cost US$16 million). This component will identify institutional and corporate performance improvements for the MoT and the IRR and prepare the ground to mobilize private sector capital for the railway sector. The subcomponents include several TAs: a. Sub-Component 2.1: Railway Sector Reform Action Plan: will develop a tailor-made reform action plan to improve the performance of the Iraqi railway sector significantly. The plan will identify tangible actions to improve IRR’s institutional, operational, and financial performance, as well as a staffing plan. It will help improve IRR’s efficiency, accountability, and performance. This activity includes identification and benchmarking of IRR’s costs and revenue streams, identification of assets and liabilities, and preparation of rolling business plans, Public Service Obligation (PSO) contracts for delivery of passenger services, infrastructure contract between the IRR and the GoI, and design of the infrastructure access charging regime for the operators’ use of IRR’s railway infrastructure. The staffing plan will assess IRR’s staffing levels and the need for staff reskilling and retooling.b. Sub-Component 2.2: Railway Asset and Safety Management System: will separate rolling stock asset management from infrastructure asset management due to different technological requirements but recognize that poorly maintained rolling stock damages the tracks and vice versa. It will involve the following activities: i. Railway Infrastructure Asset Management System (RIAMS): will enhance IRR’s infrastructure management capabilities by (a) identifying the infrastructure maintenance equipment needs and scope of modernization for the facilities that will house the new maintenance equipment, (b) identifying the infrastructure condition monitoring equipment needs, (c) recommending sustainable organizational arrangements for the maintenance function for infrastructure and rolling stock and manage identified climate risks using climate data, (d) preparing specifications for the RIAMS for the IRR, including software specifications, (e) implementing the RIAMS, and (f) providing and commissioning the infrastructure condition monitoring vehicle(s) and equipment. ii. The Rolling-Stock Asset Management System: will develop (a) a root cause analysis for rolling-stock deterioration and (b) a plan for rolling stock maintenance depots and facilities upgrades which will integrate measures against current and future climate risks in its design.iii. Safety Management System (SMS): will develop a SMS that builds on activities listed above and adds railway operational safety considerations, community and occupational health and safety, including root cause analysis of traffic-related incidents and incentives for staff to suggest system improvements. iv. Private Capital Enabling (PCE) Advisory: will identify opportunities to attract private sector resources to the railway and identify selected investment opportunities. It will involve identifying opportunities, such as the disposal of non-core assets and non-operational core assets, management contracts, and others, that would attract private sector resources and skills to the Iraqi rail and logistics sectors. c. Sub-Component 2.3: National Integration and Social Cohesion Support: will provide TA to enhance national integration and social cohesion in Iraq. It will include supporting the dialogue between Project stakeholders on: (a) an assessment of the integration of KRI’s railway masterplan with Iraq’s railway network and develop different options for consideration, (b) an assessment of the viability of establishing alternative posts in the Iraq-Turkiye Border, harmonizing customs procedures and facilitating cross-border trade, (c) alternative analysis and route selection for the greenfield segments between Mosul and the border with Turkiye, and between Al-Faw Port and Basra, and (d) support for Environmental and Social (E&S) risk management (placing a special focus on compensation and livelihood restoration and E&S impact, including public hearings and consultations). Component 3: Management Support for the IRR (Cost US$55 million). This component will include the following three activities:a. Sub-Component 3.1: Management support for CAPEX to the IRR will be provided through a CAPEX management agent that will support the IRR in the implementation of the Project and develop the IRR’s CAPEX program. Its role entails: i. Providing informed decision-making support to the Project Management Team (PMT) throughout every stage of the Project delivery value chain, procurement, construction, and commissioning. ii. Developing, managing, and supporting the execution of the TA components of the Project. iii. Skills development for the IRR staff (including women in technical roles), comprising of study tours, hands-on workshops, an internship program for university students (including women), reskilling of IRR staff, and hiring of individual consultants.b. Sub-Component 3.2: Interim railway operations management support to the IRR will be provided through a management contract. A team of seasoned railway managers will augment the IRR management team to improve the commercial and technical aspects of running IRR operations, enabling IRR to meet the increased expected demand and hence to realize the expected economic returns of the improved infrastructure.c. Sub-Component 3.3: Engineering supervision of const