Railways asks ERD to search for funds
The railways ministry has asked the Economic Relations Division (ERD) to search for funds for a project to convert the Akhaura-Sylhet rail track into dual gauge from metre gauge.
The request came after the government decided not to implement the project with Chinese funds due to higher cost.
On February 3, the ministry wrote to the ERD asking it to begin looking for the funds.
A senior official of the ERD says it has received a request from the railways ministry. "We will write to various bilateral and multilateral financiers for the funds."
"We don't have any target for any specific lender. We are ready to receive funds whether they are in the form of loans or grants from any country or lender," said Dhirendra Nath Mazumder, director-general of the Bangladesh Railway.
The project, which will convert the 225km metre gauge line into a 239km dual gauge track, is important for Bangladesh as it will reduce travel time.
But six years have passed since the Executive Committee of the National Economic Committee (Ecnec) approved it.
The project cost was estimated at Tk 913 crore in 2016. And it was scheduled to be implemented between 2016 and 2020.
The planning commission approved the preliminary development project proposal in March 2016.
The Ecnec approved the project in 2019, setting the cost at Tk 16,104 crore.
Accordingly, the ERD sent a proposal to the Chinese government seeking funds in November of the same year. Beijing also assured Dhaka of financing 66.16 per cent of the project.
Earlier, in September 2015, the rail authorities signed a memorandum of understanding with a Chinese company for the project. Now, the government decided not to use Chinese funds in the project due to higher costs.
Later, the ministry revised the estimate of the project and the preliminary development project plan (PDPP). The planning commission has given its consent to the PDPP.
According to the latest revised estimate, the cost of the project is Tk 12,750 crore, and it will be implemented between June 2019 and June 2025.
Under the project, Bangladesh Railway will construct a 239.14km rail track, 49 major and 237 minor bridges, install signal systems at 22 stations, and acquire 200 acres of land, among others.
Currently, the average speed of a train on the track is around 50 kilometres per hour (kmph). Once the project is implemented, the average speed on the broad gauge track will be 120 kmph and 100 kmph on the metre gauge track, project documents showed.
The project will enable the track to provide national, regional and international freight and containers services.
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