The construction cost of a 122.55-km rail line, including 37.49km loop, from Shahid M Monsur Ali Rail Station in Sirajganj to Bogura is set to rise by 63 per cent due to the project delays caused by complexities, mainly a delay in securing Indian loans.
The project, which was approved in July 2018, was scheduled to be completed by June 2023.
The project cost was estimated at Tk55.80 billion, with Tk 24.33 billion from the government and Tk31.47 billion from India's third Line of Credit.
Although the project deadline ended one year ago, it has achieved only 0.47 per cent of financial progress.
The rail ministry initiates to revise the project proposal with the estimated cost of Tk 91 billion.
The cost of delay in the project to stand at Tk 35.2 billion, revealed minutes of the project staring committee meeting held recently in the railways ministry.
Officials said the Indian Export Import (Exim) Bank committed to providing a loan worth $379 million to implement the project but it would require a sum of $679 million with an additional financing of $300 million.
The Indian government and the lender consented to provide additional finance but yet to confirm following a discussion for over a year.
The meeting decided to issue an ultimatum for a month to the Indian authorities and search for alternative sources for financing to implement the project if the Indian agencies fail to make any concrete decision to proceed with the loan.
Representatives from the Economic Relations Division (ERD), the Planning Commission, the Implementation Monitoring and Evaluation Division (IMED) and Bangladesh Railways attended the meeting led by Abdul Baki, secretary of the railways ministry.
Md Ziaul Haque, additional secretary (Development) at the railways ministry, said the main issue of the project is the confirmation of additional financing from India. The search for alternative financing should be initiated if India denies financing for it.
Project Director Monirul Islam Firozi said the preliminary work for acquiring land from Sirajganj area has been completed and a proposal has been sent to the land ministry.
A proposal for Bogura portion would be submitted next week, he added.
He further said that the complexities of Indian loans are well known to the all and the cost for the project may increase further if the commencing of work is delayed further for the Indian loan approval.
Officials at Bangladesh Railways said the project has a provision to develop a dual-gauge rail line with a length of 85.06km and another 37.49km of loop lines.
Two major bridges over the Karatoya and Ichhamati rivers and 25 minor bridges will be constructed under the project.
The line will help reduce rail distance between Dhaka and Bogura by 112km, which will help to save travel time by three hours, the project document reveals.
The initial project cost was estimated based on a feasibility study conducted in 2010. The detailed design conducted recently included some new components.
The cost for land acquisition increased several times and costs for other components also increased due to inflation and pressure on the exchange rate.
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