Consultant truancy, procedural hurdles and Indian Exim Bank's reluctance to release $21.78 million from its Line of Credit (LoC) could derail a project on construction of new Kamalapur-Tongi and Tongi-Joydebpur rail lines.
Officials have said the absence of consultants for the third and fourth Kamalapur-Tongi rail lines and the Tongi-Joydebpur second line has lasted since August 2023.
As such, the setting up of new rail tracks on Bangladesh's main rail corridor could be set back by around two years.
"To complete the project by June 2027, round-the-clock work is essential. But the absence of consultants and inadequate staff at the project office are hampering proper monitoring and supervision of the works," a senior railway official said.
The project authority is also unable to procure ballast, as the Indian authorities have so far refused to release about Tk 2.65 billion, he added, apparently for the changed situation in Bangladesh.
A recent Project Implementation Committee (PIC) meeting at Bangladesh Railway (BR) reviewed the project's implementation barriers and recommended expediting work by recruiting staff from BR or engaging consultants from specialized government institutions such as BUET or IIFC.
The meeting, chaired by Afzal Hossain, Director-General of BR, also suggested revising the procurement plan and formulating a third project revision to finance the $21.78 million from domestic sources, excluding Indian loans, according to the meeting minutes.
Officials said the project was initiated in 2012 with an estimated cost of Tk 8.49 billion, of which 82 per cent was financed with Indian credits, with the objective of increasing line capacity to run more trains along the high-frequency Dhaka-Joydebpur section.
Construction of the 107.94km main line, 30km loop lines, and reconstruction of several station buildings, along with expansion of some platforms in Dhaka and Joydebpur, have been hampered by delays in the Dhaka Elevated Expressway Project (DEEP) along the same alignment.
Land-related issues, including the presence of unauthorized shops, religious structures, and transport stands, as well as complexities in relocating utilities, are further hindering timely implementation, according to the PIC meeting minutes.
Document reveals that the cost of the project increased to Tk 33.43 billion, 3.94 times higher than the original estimate, due to failure in completion of the project within 13 years of approval.
The government would provide Tk 5.21 billion from own exchequer to implement the project, while another Tk 28.21 billion was supposed to be disbursed from the Indian source.
Another revision of the project may push to increase the project cost to cover the expenses of additional tenure, experts note with concern.
As of August 2025, the project achieved physical progress at 44.61 per cent with the spending of Tk 11.09 billion, 33.18 per cent of the total estimated cost.
The minutes of the meeting reveal that the project's initial consultant, India's Aarvee-Ayesa JV hired in 2015, ran out of tenure in August 2023.
However, a follow-up consultancy proposed to be awarded to the same firm under the Single Source Selection (SSS) method remains stuck in bureaucratic limbo.
Despite receiving a No-Objection Certificate (NOC) from India's Exim Bank in October 2023 and completing negotiations by December 2023, the Ministry of Railways did not forward the Tk 596.9 million proposals to the Government Advisory Committee on Procurement.
With nearly 60 per cent of civil works and 90 percent of signalling works remaining to be completed, officials fear further delays could jeopardize the project's 2027 deadline.
The DG advised deploying full-time technical staff and exploring engagement of consultants under GoB funding through SSS to ensure proper supervision and quality control, reveal the minutes.
On the other hand, the civil-works contract worth Tk 20.80 billion is being executed by AFCONS-KPTL JV, India, to develop the 137.94km track.
The Indian Exim Bank took time to issue concurrence for the third variation order and cleared the file in July 2025 through internal fund reallocation instead of new credits worth around $22 million.
Officials have said this delay could push project completion by another 18-24 months beyond the June-2027 deadline.
So far, 50.5 kilometers of embankment, 49km track linking, two major bridges, 17 culverts, and two station buildings have been completed. Physical progress stands at 37 percent and financial progress at 36.95 per cent.
The Planning Commission's representative, attending virtually, emphasised the project's strategic importance for easing rail congestion and enhancing commuter and freight connectivity between Dhaka and the northern regions.
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