Padma railway project cost to swell by 12pc

FHM Humayan Kabir

The Padma Bridge rail project is likely to be revised, with an increase in its cost and extension of its execution time. 

The implementation of the project has not yet begun.

Officials said that the government is likely to hike the project cost by more than 12 per cent to Tk 392.50 billion from the original estimate of Tk 349.88 billion.

In early 2016, the government approved the country's second largest railway project for linking Dhaka with Jessore through the under-construction Padma Bridge.

The Bangladesh Railway (BR) has recently sought the revision of the railway project.

"The project evaluation committee of the Planning Commission has recommended revising the project. It has also recommended placing it before the Executive Committee of the National Economic Council (ECNEC) for getting it approved," said a Commission official.

On April 27, the government signed a US$ 2.667 billion loan agreement with China for bankrolling the project.

China will make available the major portion of the cost for the railway project and China Railway Group, a Chinese company, has already been appointed to build the railway line.

The BR authorities have also sought extension of the project execution time by another two years up to June 2024 from the current deadline of June 2022. The delay in starting the project due to the long wait for loan confirmation has been cited as the reason for time extension.

"We signed the commercial contract with the China Railway Group about one and a half years ago for starting the construction work of the 172-kilometre railway line. But the delay in confirmation of the loan has delayed the start of construction work," he said.

Since the loan agreement has been signed recently, the construction work will start shortly, he added.

When asked about the reasons for the cost hike, the railway official listed the hike in cost of relevant materials and addition of a few components for the cost-revision.

The land acquisition alone will require some Tk 35 billion for the project, he said.

The Padma Bridge construction work is likely to be completed next year.

The government would lay 172kms single track rail line from Dhaka to Jessore via Padam Bridge and Bhanga of Faridpur to connect the south-western region.

Besides, it will also build 43.2kms loop lines and 23.37kms viaduct on the proposed railway line.

The single-track line is being designed for a maximum speed of 120 km/hour.

• The Financial Express/ may 10 2018