The Asian Development Bank (ADB) is set to approve US$505 million loan for Bangladesh's railway sector. The bank will negotiate with the government next week on the credit, officials said Saturday.
The Manila-based bank has already assured the Bangladesh Railway (BR) of providing the loan for setting up a 72-kilometre double-track line between Akhaura and Laksham on the Dhaka-Chittagong railway link, a railway official said.
"An ADB delegation is likely to sit with us for negotiation on July 22-24 for discussing its proposed fund for the railway line upgradation project," said Saifuddin Ahmed, a joint secretary of the Economic Relations Division (ERD).
This will be the largest single lending for a Bangladesh railway project by the ADB, he told the FE.
He said the government would invest $805 million to upgrade the Akhaura-Laksham track into a double-track one.
"The Akhaura-Laksham section of the Dhaka-Chittagong railway line is yet to be upgraded. The remaining part has almost been upgraded to a double-track line," he said.
After upgradation, the Dhaka-Chittagong line will be the first largest railway track with double-line in Bangladesh, said a senior BR official.
He said since the Dhaka-Chittagong link is the country's main business corridor, the upgraded railway line will help transport passengers as well as huge freight up to the port city for smooth foreign trade, he added.
Mr Saifuddin said the European Investment Bank (EIB) is likely to join the project as a co-financier with the ADB and the Bangladesh government.
The EIB is expected to provide $175 million loan for the project. The remaining $125 million of total $805 million cost of the project will be provided by the Bangladesh government.
The BR official said they would rehabilitate the existing track and set up another new one from Akhaura to Laksham railway line.
In addition, some 11 existing stations between Akhaura and Laksham and their signalling systems would also be improved under the project, he added. Bangladesh's struggling railway sector needs large investment to recover its past glorious days.
It still needs substantial investment to have modern locomotives, passenger carriages, cargo carriers, experienced manpower and for upgradation of the major lines into double track.
