Dhaka-Tongi-Joydebpur railway expansion project cost to rise 294%

The project cost of constructing the third and fourth dual-gauge railway lines on the Dhaka-Tongi route and a second dual-gauge line on the Tongi-Joydebpur route is set to increase by a whopping 294%.

In addition, Bangladesh Railway has sought to extend the implementation period by another five years till 2027. The project was expected to be completed in July this year.

The second revised proposal of the project is likely to be presented at the meeting of the Executive Committee of the National Economic Council (Ecnec) on Tuesday, according to Planning Commission sources.

Bangladesh Railway (BR) undertook the project in July 2012 to introduce faster, safer and more comfortable passenger and freight trains to and from the capital. 

The initial cost of this project was Tk848 crore. In the first revised proposal in 2016, the cost was increased to Tk1,107 crore. In the second proposal, Bangladesh Railway has proposed to increase the cost of the project by Tk2,236 crore to Tk3,342 crore.

Regarding the massive cost increase, officials of the Planning Commission told The Business Standard that the project was undertaken without any feasibility study and detailed design. Later, a number of major changes had to be made in the implementation stage, which drove up the cost.

Initially, the plan was to construct a double rail track on the Tongi Bridge (No 42) over the River Turag. But according to the latest proposal, four tracks will be built on the bridge. This has increased the cost, according to railway sources.

Besides, the Tongi bridge now has a vertical clearance of 3.5 metres, which has to be raised by at least two more metres as per the requirement of the Bangladesh Inland Water Transport Authority (BIWTA), sources said.

Moreover, some parts of the rail truck were previously supposed to have 41 kg (90 lb) rails installed. Now it has been decided to install 60 kg rails, which is another reason for the cost hike. 

Under the project, a total of 185.72 km of railway line including loop lines will be constructed using 60 kg rails.

SM Salimullah Bahar, chief planning officer of the Bangladesh Railway, told The Business Standard, "This railway route is a crucial one in the country and is facing increasing pressure. For this reason, it has been decided to make Tongi Bridge a four-track bridge instead of a double track."

"Soon after the construction of these rail tracks, a large number of heavy and fast intercity locomotives will operate in this section," he added.

Reasons for delay and a new deadline

According to several railway sources, the cost of the project has increased due to the delayed implementation of the project.

The project was supposed to be completed in three years. But it took five years to appoint a consultant, make a design, fix the procurement process and call for tenders. Seeking repeated approvals from the Indian authorities was another reason for the delay.

According to a railway report, the Indian contractor for the project did not supply raw materials, fittings, stones and sleepers to the project site on time. The contractor was absent from the project site on the pretext of Covid.

Railway sources said the implementation work is also being delayed due to the non-handover of the railway line from Dhaka Airport to Kamalapur Station to Bangladesh Railway authorities as the Dhaka Elevated Expressway, a PPP project, is ongoing.

The Dhaka-Tongi-Joydebpur railway section connects Dhaka with other parts of the country. At present, there are two dual-gauge lines on the Dhaka-Tongi section and one dual-gauge line on the Tongi-Joydebpur section. Despite demand, it is not possible to operate additional trains in this section.

Currently, 112 trains are running on the Dhaka-Tongi section and 44 trains on the Tongi-Joydebpur section. If the project is implemented, 250 trains will be able to run on the Dhaka-Tongi section and 90 trains on the Tongi-Joydebpur section.

India to lend an additional $66 million

The Exim Bank of India will contribute 83% of the total cost in the second revised proposal. As a result, Indian debt will increase by Tk2,380.50 crore. Earlier India was supposed to lend Tk902.63 crore for the project.

Officials of Bangladesh Railways and Economic Relations Division said a proposal was sent to the Exim Bank of India to approve an additional loan of $66 million for the second revision of the project in October 2022. India agreed to additional financing in March 2023.

Under the project, two major bridges and 22 minor bridges/culverts will be constructed. Tejgaon, Banani, Tongi and Shirashram station buildings will be reconstructed and Cantonment station buildings will be expanded vertically. 

A Computer Based Interlocking (CBI) signalling system along with telecommunications will be installed at seven stations. Besides, a signal warning system will be installed at 37-level crossing gates.

According to Bangladesh Railway data, the physical progress of this project is 68.75% till April this year. The total expenditure during this period was Tk817.55 crore.