The government is expecting a Tk 651.4 million World Bank (WB) fund to support critical infrastructure development in the railway sector after a pause of such loans since 2006.
The funding will be used for the project involving the relocation of station buildings and the construction of multimodal hubs at the Kamalapur and Dhaka Airport railway stations, rail connectivity from Faujdarhat to the Goods Port Yard and Bay Terminal in Chattogram, and enhanced rail links in the Mirsharai Economic Zone.
Bangladesh Railway has outlined the Tk 935.1 million Green Railway Transport Preparatory Technical Assistance Project, said officials of the railways and planning ministries.
They said the Physical Infrastructure Division of the planning commission arranged a meeting of the Special Project Evaluation Committee (SPEC) earlier this month and the Economic Relations Division (ERD) later arranged an inter-ministerial meeting.
Officials said the World Bank initially consented to provide $6 million as a Project Preparation Advance (PPA) from the project's main loan.
As part of the project, there will be a feasibility study on reconstructing station building yards, including the relocation of the existing operation and maintenance facilities to facilitate the construction of multimodal transport hubs at the Kamalapur and Dhaka Airport stations.
There will be a feasibility study on the development of rail connections from Faujdarhat to the Goods Port Yard and Bay Terminal in Chattogram.
The purchase of freight locomotives, relief trains, and haulage, as well as the development of rail connection infrastructure in the Mirsharai Economic Zone will be financed by the main project.
ERD officials said the World Bank issued an aide-memoire where it said it plans to finance the technical assistance project along with the main investment project with the IDA Scale-Up Window (SUW) and the IDA Regional Window.
They also said the main investment project has not yet been specifically included in the World Bank pipeline and it could be financed in three ways - a full low-interest World Bank loan, a full market-based World Bank loan, or a partial low-interest loan and a partial market-based loan.
Therefore, regardless of the loan interest rates, it is important to know whether the implementing agency is interested in implementing the main project in terms of requirements, revealed the SPEC meeting minutes.
ERD officials said the World Bank provided budget support titled "Bangladesh Railway Reform Programmatic Development Policy Credit" in 2006 with conditions of reforms in certain sectors, including railway. The government has not received any such loans after that.
"The World Bank will provide support for the railway sector after a long time," said Sheikh Sakil Uddin Ahmed, additional secretary (planning) at the Ministry of Railways.
He told The Financial Express the combined costs of all infrastructure development of the project are yet to be determined.
Infrastructure development will be initiated if considered profitable after the feasibility study, he added.
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