A prevailing row between two government agencies over selection of a development partner has delayed further the implementation of the 128-kilometre Dohazari-Cox's Bazar-Ghundum railway line project, officials said Friday.
Officials said the Ministry of Finance (MoF) and the Railway Ministry are yet to reach any decision regarding selection of one of the two development partners willing to finance the project even nearly four years after it got approval.
"The MoF is preferring concessional loan from the Asian Development Bank (ADB). However, a section of the influential people at the Railway Ministry favours the non-concessional Chinese credit. This disagreement has affected the project implementation," said a senior MoF official requesting anonymity.
Despite having financing assurance from the ADB for the project, the Railway Ministry recently sought financial support from China thus creating fresh complexities in the project execution process, he added.
The Bangladesh Railway (BR) in 2010 had undertaken the Dohazari-Ramu-Cox's Bazar and Ramu-Gundhum railway line project at a cost of Tk 18.52 billion scheduled to be completed by December 2013.
During the implementation period between July 2010 and December 2013, the project was struggling with implementation delay due to lack of funding and land acquisition complexities, a BR official said.
The MoF official said: "More than six months ago, the ADB in its current country operation business plan (COBP) included the Dohazari-Cox's Bazar project for funding. However, the BR recently requested China to finance the same project. It has created a new complexity."
The ADB, under a technical assistance project, has been studying the feasibility and working for preparing a detailed design for the 128km railway line project from 2012.
The bank in its COBP has kept aside US$217 million fund for financing the long-awaited railway track setting up project that would connect the tourist city of Cox's Bazar with port city Chittagong, the MoF official added.
Nevertheless, the Railway Ministry has requested Chinese government bypassing the ADB's financing decision, which is an act of immaturity from the government side in its economic diplomacy, he told the FE.
"Actually the proposed Dohazari-Ramu-Gundhum railway line is proposed to connect Chinese city Kunming through the Myanmar territory in the near future. So, we have requested China for funding the project despite having ADB's funding assurance," a Railway Ministry official told the FE preferring not to be quoted.
He said they are waiting for the decision from the top level of the government about selection of the development partner for the project. "After getting final decision, we would start construction of the railway line."
A senior BR official said the overall cost of the project has already been estimated upward from preliminary cost due to a rise in compensation cost of the affected people on the project site.
The government in 2010 had estimated the compensation for the affected people at Tk 3.00 billion which now increased to nearly Tk 10 billion, more than three times the primary estimate.
Prime Minister Sheikh Hasina had inaugurated the project and construction works of a railway station at the Old Bus Stand at Jhilanja at Cox's Bazar in April 2011.
Earlier, the BR decided to construct the Dohazari-Ramu-Cox's Bazar railway first in 2000. It appointed the Cana Rail, a Canadian firm, which conducted a feasibility study in 2001 last.
The BR official said since the cost of the project has increased, now it needs revision. "We will send the revised proposal to the Planning Commission for approval after selection of the development partner by the high-ups."
