$505m loan deal with ADB soon

The government will sign soon the final deal with the Asian Development Bank (ADB) for a loan worth US$505 million for setting up a 72-kilometre double-track line on the Dhaka-Chittagong rail route, as negotiations with the financier have already been completed, officials said.
They said the Economic Relations Division (ERD) completed the negotiations with a visiting delegation of the ADB last week. The Manila-based lender assured of providing the credits for the Bangladesh Railway (BR) project.
"Loan deal for confirming the fund disbursement is expected to be signed soon," an ERD official told the FE correspondent.
Railway authorities will utilise the funds for setting up a 72-kilometre double-track line between Akhaura and Laksham on the Dhaka-Chittagong rail route, said Saifuddin Ahmed, Joint Secretary at the Economic Relations Division.
Mr Ahmed said the government would invest $805 million worth of money in upgrading this portion of the busy rail route connecting the country's commercial lifeline.
About the urgency of undertaking the project a BR official said: "The Akhaura-Laksham part of the Dhaka-Chittagong railway line is yet to be upgraded. The rest of the Dhaka-Chittaging line has almost been improved to double-track one."
After upgradation of the 72-km portion the Dhaka-Chittagong line will be the first largest railway track with double-line passage in Bangladesh, said the official.
He noted since Dhaka-Chittagong is country's main business corridor, the upgraded railway line will help the country transport passengers as well as huge freight up to the port city for smooth foreign trade.
The ERD joint secretary said the European Investment Bank (EIB) is likely to join as co-financer with the ADB and the Bangladesh government in funding the project.
EIB is expected to provide $175 million. The remaining $125 million funds of the total $805 million cost of the project will come from the national exchequer.
The BR official said they would rehabilitate the existing track and set up another new track from Akhaura to Laksham.
In addition, 11 existing stations between Akhaura and Laksham and their signaling systems would also be improved under the $805 million project, he added.