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BD Railway to enter electric era with Tk 42.83b project

JAHIDUL ISLAM | Saturday, 25 April 2026


The Ministry of Railways has sent a Development Project Proposal (DPP) to bring the Narayanganj-Joydebpur section of Bangladesh Railway (BR) under electric traction, with an estimated cost of Tk 42.83 billion, sources at the Planning Commission say.
The project, the first of its kind in the country, will electrify a 52.32-kilometre corridor through 186-track-kilometre overhead catenary system (OCS) installation, alongside land acquisition, procurement of 16 Electric Multiple Unit (EMU) trains, and five years of post-construction maintenance support.
The Asian Development Bank (ADB) and the European Investment Bank (EIB) are expected to provide a combined loan of Tk 28.31 billion, while the remaining Tk 14.52 billion is set to be financed from the government's own resources, according to the proposal.


The Physical Infrastructure Division of the Planning Commission on Monday conducted a meeting of the Project Evaluation Committee (PEC) chaired by Dr Neyamat Ullah Bhuiyan, member (senior secretary) of the commission, to review the proposal.
Sources say the meeting agreed to place the project, subject to compliance with certain recommendations, particularly on reducing land acquisition and shortening the implementation period, which is currently proposed at up to 10 years, ending in June 2036.
Earlier, Bangladesh Railway carried out a feasibility study for introducing electric traction, including OCS and sub-station construction from Narayanganj to Dhaka via Chattogram, with an estimated cost of Tk 160.85 million, fully financed from domestic resources.
Based on the findings of the study, electric traction is set to be introduced in the first phase on the Narayanganj-Joydebpur section, officials of Bangladesh Railway say, adding that in the second phase, the system will be extended up to Chattogram from Tongi.
Officials at the Economic Relations Division (ERD) say the ADB and EIB have expressed their consent to provide loans of $231.45 million to finance the project.
The detailed modalities regarding interest rates and repayment period would be determined following negotiations.
The construction of a 52.32-kilometre OCS covering 186 track kilometres, along with two traction substations and a central control system, would require investments of Tk 8.35 billion.
A sum of Tk 19.57 billion is proposed for the procurement of 16 EMU train sets, while the design and construction of an EMU workshop would require another Tk 6.87 billion.
Implementation is planned over a 10-year period from July 2026 to June 2036, including a four-year construction phase, followed by a one-year defect liability period and five years of maintenance.
Officials consider the extended timeframe necessary, given the scale of infrastructure, procurement, and system integration involved.
The project will strengthen Bangladesh Railway's financial position while contributing to broader economic growth by improving connectivity in the densely populated Dhaka-Narayanganj-Gazipur corridor, reveals the proposal.
The electrification is expected to reduce travel time by around 18 per cent and cut operating and maintenance costs by approximately 35 per cent, while also lowering emissions in one of the country's most polluted regions.
Revenue projections also point to a favourable outlook, with expected income from electric train operations significantly exceeding operation and maintenance costs.
By 2030, annual revenue is projected to reach more than Tk 8.49 billion against costs of around Tk 0.79 billion, generating a substantial operating surplus.
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