A mega project of 214.91 kilometres railway tracks from Bhanga junction (Faridpur) to Payra Port and Kuakata via Barishal is coming soon.
The government has planned to make a direct rail link from Dhaka to Payra port, and accordingly Tk 41,798 crore has been earmarked for this project.
Preferably, a state-owned China Railway Design Corporation expressed its interest to construct and finance the railway line along with its partner China Harbour Engineering Company Limited which usually completes project before the stipulated time frame.
They have sent a proposal to the Bangladesh Railway that the loan will be repaid in 30 years and the grace period will be seven years, with an interest rate of around 2 per cent, railway officials said.
The Ministry of Railway has sent the proposal to the Economic Relation Division (ERD) of Finance Ministry for scrutiny.
However, the ERD is going to send a project proposal to China, the major development partner of Bangladesh, seeking loan to construct biggest ever broad gauge rail track in the country from Bhanga to Payra in Patuakhali.
Bangladesh Railway is planning to construct 214.91 kilometres railway tracks from Bhanga junction (Faridpur) to Payra Port and Kuakata via Barishal for smooth transportation of passengers and goods.
“We have decided to submit a loan proposal to our development partner China for getting loan for construction of this biggest rail project in the country. We will send the proposal to China soon,” joint secretary of ERD told The Bangladesh Post on Sunday.
After getting positive response from China, we will discuss about the terms and conditions of the loan for implementing the project, the official also said.
The project worth Tk 41,798 crore or $4928.96 million and Bangladesh Railways will implement it by June 2029, according to the project proposal, the official said, adding thatTk 32,199.14 crore has been proposed for financing.
Earlier, the ERD is searching for loan from the development partners South Korea, Asian Development Bank, New Development Bank (NDB) and others.
The Ministry of Railways has prepared a development project proposal titled ‘ Construction of Rail Line from Bhanga junction (Faridpur) to Payra Port and Kuakata via Barishal’ which has been sent to the planning commission for searching financers to implement the project, said a senior official of the planning commission.
Once implemented, the rail network is expected to open huge economic opportunities in the southern region by boosting connectivity between the capital and the southern districts of Barishal via Padma Bridge.
The feasibility study for constructing the railway line was completed in June last year. During the feasibility study, the Bangladesh Railway had sent development project proposal to different development partners for seeking loan through ERD in April this year, said railway officials.
The main components of the project are constructing 214.91km including 190.11km main line and 24.80km branch line, 10 major bridges over the Kumar, Kaliganga, Kirtankhola, Payra, Andharmanik, and Tiakhali rivers.
According to the project proposal, the rail route will have 19 stations at Bhanga Junction, Boroitala, Tekerhat, Madaripur, Kalkini, Gournadi, Wazirpur, Barishal Airport, Barishal City, Dapdapia, Bakerganj, Badarpur, Patuakhali, Kukua, Amtali, Payra Bandar, Payra Bandar Yard, Lemupara, and Kuakata.
Officials of Railway said the ministry is yet to float any tender of the project as the financing is not ensured.
However, they also said the ministry is yet to appoint any consultant and detail design of the project in underway.
Meanwhile, officials of Bangladesh Railway said UK-based IM Power Plc had also offered the Bangladesh Railway to invest in rail line construction. Another Australian company the Providus Investments had also expressed interest in this project.