Bhanga-Payra Port Rail Line: Chinese firm keen to invest, build it
A state-run Chinese company has proposed investing and constructing the Bhanga-Payra Port railline on a public-private partnership model.
Power Construction Corporation of China, also known as Powerchina, expressed its interest in signing a memorandum of understanding immediately so that it can start the preparatory work for the over 214km line which may cost more than Tk 50,000 crore.
Gong Youchen, director (transportation, housing and urban development division) of Powerchina Bangladesh, wrote to Railways Minister Nurul Islam Sujan early this month in this regard, said sources.
The railways ministry on Wednesday sought opinion from Bangladesh Railway. A Powerchina delegation is expected to hold a meeting with the minister next week, they added.
Confirming the development, BR Director General Quamrul Ahsan told The Daily Star yesterday that they were preparing their opinion.
Over the last two-three years, several state-run Chinese companies proposed either the railways ministry or the BR about investing in over a dozen projects, including highspeed rail between Dhaka and Chattogram.
But those proposals are yet to make any visible progress and a top BR official termed those "futile attempts".
The new Chinese proposal comes at a time when the BR is implementing its biggest ever project, Padma Bridge Rail Link, at a cost of Tk 39,246 crore under a Bangladesh-China government-to-government initiative. China is providing a loan of Tk 21,036 crore for the project.
Two more rail projects were expected to be implemented with Chinese loans. Beijing even selected two Chinese contractors for those projects, but implementation of those is uncertain now as China pulled out from funding one while the selected Chinese contractor declined to work for the other project after the negotiated price was cut by the Prime Minister's Office.
Different Chinese companies are also involved in at least five major ongoing railway infrastructure projects, including two fast-track schemes -- Padma Bridge Rail Link and Chattogram-Cox's Bazar Rail Link.
BHANGA-PAYRA RAIL LINE
The BR was willing to construct the rail line from Faridpur's Bhanga to Payra via Madaripur and Barishal. The BR authorities expect that the direct link between the sea port and the capital would boost its revenue through freight train operations.
It completed feasibility studies and detailed designs for the line in 2021. The line, which will have 19 stations, will cost around Tk 41,797.60 crore ($4.93 billion).
The estimate was made when US dollar exchange rate against taka was 85. If the current exchange rate (Tk 107) is taken into consider, the project cost would be Tk 52,739 crore.
The proposed deadline of the project is June 2029.
NEW PROPOSAL
In the letter to the railways minister, Powerchina said it is a state-owned and integrated construction group, having business in Bangladesh since early 1990s.
It owns many brands including Sinohydro and Hydrochina, and has already completed 18 projects in Bangladesh. Besides, 25 other projects are underway.
As per analysis of the project feasibility study, Powerchina has found that this project is economically viable.
The company said that the PPP model seems to be more favourable to the BR as it would allow BR to avoid borrowing a huge amount of money initially.
"Powerchina would recommend that this project should be developed via AP [Annual Payment] scheme under PPP model," the letter added.
Powerchina and its potential consortium partner, as investor and contractor, will be responsible for the design, financing, and construction of the project and take the annual investment return payments from BR in line with agreed schedule and terms, it said.
On the other hand, the BR will be responsible for land acquisition, operation, keeping the income and profit generated from passenger and freight transport, and paying back the investors, read the letter.
Powerchina wanted to sign an MoU with the BR immediately to start updating the feasibility study of the project and other preparatory works.
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