ADB to provide $430m for Bangladesh Railway development

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The Asian Development Bank (ADB) is set to provide the government with $430 million in funds for the development and reform of Bangladesh Railway, an official said Sunday, reports bdnews24.com.
Communications secretary Muhammad Mahbubur Rahman briefed the reporters on the move in his office following a monthly meeting of agencies and departments under the communication ministry.
The funds are being given with the provision that Bangladesh Railway is turned into a public limited company (PLC) when the reforms have been completed.
The caretaker government has already started working on the development programme, said the secretary, who added that the reforms would be completed by 2012.
After the work is completed Bangladesh Railway would be turned into a PLC like Biman Bangladesh Airlines, he said.
Rahman said Bangladesh Railway is incurring a loss of about Tk 5.0 billion (500 crore) every year, while in the previous fiscal year the loss was Tk 5.09 billion.
During the period the railway's annual income was Tk 4.66 billion, while its expenditure was Tk 9.75 billion, he said.
The secretary said the economic reality made it difficult for the government to run Bangladesh Railway.
"According to the ADB condition, after development and reform of the Bangladesh Railway is completed it would be turned into a PLC," said Rahman.
The secretary said Bangladesh Railway has 2,835 kilometres of track in 44 districts, with 454 stations and 258 passenger coaches.
It also has 54 freight coaches, and up to 8 per cent of the population uses the service regularly.
The government has taken an initiative to increase the number of passengers that use the system, said Rahman.
The secretary said provisions would be made for less well-off passengers under the revamped railway system, without giving further details on the provisions.
Rahman said recent accidents on the railway had been caused by a lack of skilled management and responsibility.