Indian funding delay hinders Dhaka-Tongi-Joydebpur railway expansion

Despite being projected for completion by June 2027, the Dhaka-Tongi-Joydebpur railway expansion project is only 35% completed as of October, with just 1.5% progress made in the last 13 months.

Officials attribute the delays to the lack of no-objection certification from Exim Bank of India, the project's financing body, which is necessary for securing additional funding.

Additionally, construction has been disrupted by the stalled progress of the Dhaka Elevated Expressway.

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

According to railway sources, the project began with an estimated cost of Tk848 crore, but its duration, cost and scope have been extended multiple times.

As of June 2023, the project cost increased to Tk3,343 crore, which includes Tk2,821.16 crore in project aid from India and Tk521.38 crore from the Bangladesh government.

Officials note that in October 2022 a proposal was submitted to Exim Bank of India for an additional loan of $66 million, which was approved in March 2023.

However, new modifications to reform existing lines increased costs, prompting a request for an extra $21.78 million in funding in September.

In November, the Cabinet Committee on Government Procurement approved this proposal, contingent on receiving Exim Bank of India's no objection.

A follow-up application for no objection was submitted in December, but no response has been received yet.

The Indian High Commission in Dhaka did not provide a comment when contacted for a response on the matter.

Project Director Naznin Ara Keya said, "We are in regular contact with Exim Bank of India. There have been seven online meetings so far. But we have not received any reply yet. They had various questions and we have sent them answers."

Officials have stated that the initial plan was to install 41kg rail in certain areas. However, it was later decided to use 60kg rail for all tracks, including the loop line, due to the weakness of the existing lines.

If not renewed, these lines would become unusable in a few years, necessitating an increase in funding, they say.

Naznin told TBS that the initial plan was to build the new Dhaka-Tongi and Tongi-Joydebpur lines first. However, the poor condition of the existing lines prompted a decision to refurbish them, which extended both the duration and cost of the project.

According to project sources, physical progress by September was 36.51%. Although Tk643 crore has been allocated for the current financial year, only Tk6 crore has been spent in the first three months.

Additionally, Tk41.72 crore of Tk217.88 crore could not be utilised last year due to the lack of non-objection from Exim Bank of India.

The project director stated that the new variations of work encompass all construction activities except signalling, meaning that progress cannot proceed without approval. The increase in the scope of the project has resulted in higher costs, necessitating approval from the financing institution.

Sardar Shahadat Ali, director general of Bangladesh Railways, said BR has been in contact with the Indian authorities to expedite approval.

Project officials report that 112 trains currently operate on the Dhaka-Tongi section, while 44 run on the Tongi-Joydebpur section. Once the project is completed, capacity could increase to 250 trains on the Dhaka-Tongi line and 90 on the Tongi-Joydebpur line.

Experts emphasise the need for swift government action to address these issues. Implementing the project would significantly enhance train movement capacity in the capital and the surrounding districts, thereby reducing pressure on Dhaka, they say.

Communication infrastructure expert and Buet Professor Hadiuzzaman told TBS that extending the Dhaka-Tongi rail line is crucial for significantly increasing railway capacity. However, he noted a lack of coordination among institutions in project implementation.

Additionally, the stalled construction of the Dhaka Elevated Expressway is impacting the Dhaka-Tongi rail project, with construction materials still occupying the extended section from Moghbazar to Malibagh.

Hadiuzzaman emphasised that due to the elevated expressway, expanding the railway in the future will not be feasible, highlighting a lack of proper planning.

"The Dhaka-Tongi rail project, initiated in 2012, continues to face space constraints. Priority should have been given to the railway over the elevated expressway," he said.