The cost of the Padma Rail Link Project (PRLP) is likely to be reduced by more than Tk 18.44 billion or nearly 4.7 per cent of the original cost of Tk 392.46 billion, according to Bangladesh Railway.
Project officials said the cost was reduced by Tk 6.21 billion in the second revised development project proposal which was approved on April 17 last with an extension of the tenure up to June 2026 as original tenure ended in June this year.
A further reduction of Tk 12.23 billion would be possible by revising the cost of different components of work package-1 like design survey fees, signaling and communication, ballastless track, physical contingency.
"It is now estimated that a total of Tk 18.44 billion will be reduced from the original project cost," said an official, preferring not to be named.
The BR has been implementing the project to construct a 169-kilometer new rail track from Dhaka to Jashore through the dream Padma road-cum-rail bridge since 2019.
The entire corridor, except Bhanga to Jashore section, was opened for train movement in October last year.
In the cost reduction proposal, the PRLP adjusted down the cost to Tk 36.71 billion from an estimated Tk 50.12 billion to save an amount of Tk 13.41 billion.
According to the project office, 98 per cent of the project work has already been completed and the rest Bhanga-Jeshore line will be opened for train operations in mid-November.
"Some work on station building, ballastless track, signaling systems and equipment installation are now pending," the official added.
The PRLP project was taken in 2016 with a Tk 210.36 billion loan from the Chinese government. However, the fund was reduced to Tk 209.56 billion in the RDPP.
The BR signed a commercial agreement with The China Railway Group Limited (CREC) at Tk 247.49 billion on August 08, 2016 and supervision consultants with Bangladesh Army on January 5, 2017.
However, a US$ 2.66 billion loan agreement with Chinese EXIM Bank as preferential buyer's credit was signed on April 27, 2018 and commenced on July 03, 2018.
With the 169km main line, 53.97 km loop and siding lines, 226.95 km railway tracks, including 3.97 km track from Dhaka to Gendaria, 23.377 km viaduct, 98 ramps, 60 major bridges, 272 minor bridges (culvert underpasses), and 29 level crossings have been constructed under the project.
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