After being dropped from India's line of credit (LoC), the Bangladesh Railway (BR) has revived the Bogura-Shaheed M Mansur Ali Station railway project with a substantially revised cost, nearly double the original estimate.
The state-owned rail operator is now seeking alternative foreign financing to keep the long-delayed project on track, officials said on Tuesday.
The revised plan for the 73-kilometre dual-gauge railway line, covering the Bogura to Captain Mansur Ali Station section in Sirajganj, is estimated to cost Tk 103.91 billion, up from Tk 55.79 billion approved in 2018.
The earlier version relied heavily on funding from the Indian line of credit, which has since been withdrawn following prolonged delays and disruptions.
With the project considered strategically important for improving passenger and freight connectivity in northern Bangladesh, the government is now actively approaching multilateral lenders to mobilise fresh resources and resume full-scale implementation.
The BR has recently requested the Economic Relations Division (ERD) to seek funding from overseas development partners to bankroll the project, they said.
However, the LoC-backed project faced major setbacks due to months of non-cooperation by the Indian lender and contractors in the aftermath of the July 2024 uprising.
As a result, the government was eventually forced to discontinue the arrangement, officials said.
Dhaka is now actively exploring alternative financing sources to ensure the continuity of the project, said a senior official of the Planning Commission (PC).
The official said the preliminary development project proposal (PDPP) submitted by Bangladesh Railway has already been scrutinised and forwarded to the ERD to identify potential overseas assistance.
"We have got green signal both from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) for financing the project. The ERD will now confirm the development partners for funding it," he added.
A senior Ministry of Railways official said the PDPP had already been sent to the ERD through the Planning Commission to facilitate the search for foreign funds.
"Once funding is confirmed, we will move ahead with execution, as the line is extremely important for both passenger and freight movement to and from the country's northern region," the official said.
Explaining the cost escalation, he said the original project had been formulated seven years ago in 2018.
"Since then, prices of construction materials and other inputs have risen significantly, and some additional scopes of work have also been included, leading to the higher cost," he said. "We have already received positive signals from both the ADB and the AIIB regarding financing. The ERD will now finalise the development partner," he added.
The renewed progress comes after the government's recent approval and release of substantial funds, particularly to expedite the crucial land acquisition process.
In June this year, Bangladesh Railway allocated around Tk 19.20 billion for acquiring land required for the project, aimed at compensating affected landowners.
The project was originally undertaken in 2018 with a completion target of June 2026.
According to the BR, the new line will be approximately 85 kilometres long, excluding loop lines, which would bring the total length to around 90-95 kilometres.
Once operational, the line is expected to significantly shorten the rail distance between Dhaka and northern districts by about 112 to 130 kilometres.
This direct route would reduce travel time between Dhaka and areas such as Bogura, Rangpur and Lalmonirhat by roughly three to four hours, greatly improving both passenger travel and freight movement.
At present, trains are forced to take a circuitous route via Santahar, Natore and Ishwardi.
The planned railway line will connect Bogura with Shaheed M Mansur Ali Station in Sirajganj and include the construction of six new stations and one new junction across the two districts.
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