Bangladesh Railway Turns to ADB for Loans Once more


Asian Improvement Financial institution (ADB) has already topped the lenders’ listing of Bangladesh Railway (BR). However with a number of new tasks developing, the state-run transport company has sought extra mortgage from the financial institution.

Of those new tasks, BR has positioned 5 infrastructure tasks as precedence ones, which would require round $8 billion for implementation. It additionally positioned a number of different tasks — each infrastructural and mechanical — for ADB’s consideration.

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BR officers positioned the proposals, as an ADB delegation led by its director common (South Asia division) Kenichi Yokoyama, met Railways Minister Nurul Islam Sujan on the capital’s Rail Bhaban yesterday.

The ADB delegation, nevertheless, didn’t give any clear assurance to BR, relatively asking it to hurry up its reform programme, scale back working ratio and improve rail fare, assembly sources stated.

Presently, BR spends Tk 287 to earn Tk 100, however the ADB requested the company to convey this right down to Tk 150 per Tk 100.

Regardless of this, BR Director Normal Dhirendra Nath Mazumder, who accompanied the railways minister, termed the assembly “fruitful”.

Replying to a query, he stated the delegation was not empowered to say whether or not ADB will present the mortgage or not, however have been tasked with inserting the proposal earlier than their board.


BR is implementing a 30-year master-plan for 2016 to 2045 divided into six phases. A complete of 230 tasks, with an estimated price of Tk 5,53,662 crore, have been proposed within the plan.

Presently, BR is implementing 9 tasks with ADB loans of about Tk 23, 337.07 crore.

In the meantime, India, China, Japan and South Korea are financing 10 extra BR tasks.

Nonetheless, two different BR tasks, which have been presupposed to be financed by China, are going through uncertainty, after China declined to fund one, and the Chinese language contractors chosen by their authorities declined to work with a curtailed funds.

Of the seven tasks financed by India, six are loans whereas the opposite is a grant. However, all of the tasks are operating not on time, with the neighbouring nation having no rapid plans to provide extra loans to railway, BR officers stated.

Japan and Korea are financing one venture every. Two extra tasks at the moment are within the pipeline with Korea, whereas BR sought a mortgage from Japan for the Joydebpur-Iswardi double line venture, the place China declined to finance.

BR earlier sought loans from the World Financial institution however is but to get any formal assurance. Some firms from nations resembling Russia, UK, China and Turkey had expressed curiosity to put money into BR, however these proposals are but to see any seen progress.

Given this, BR is leaning in direction of ADB, though the Manila-based financial institution had earlier imposed some situations for the loans, together with elevating rail fare, BR sources stated.

At yesterday’s assembly, the railways minister termed ADB “a very good accomplice” whereas searching for the mortgage, sources stated. 


5 precedence tasks BR is searching for loans for are building of a brand new Inland Container Depot (ICD) at Gazipur’s Dhirasram; conversion of Laksam-Pahartali metre gauge (MG) double monitor to twin gauge (DG) double monitor; conversion of Chattogram-Dohazari MG monitor to DG monitor; dialog of Tongi-Bhairab Bazar-Akhaura MG double monitor into DG double monitor; and building of a chord line from Dhaka to Cumilla through Narayanganj.

Besides the ICD venture, the opposite tasks are associated to the event of the Dhaka-Chattogram-Cox’s Bazar hall, crucial transport hall of Bangladesh. BR has already accomplished feasibility research for this below a technical help with ADB’s mortgage.

Presently, most elements of the Dhaka-Chattogram hall is MG double line, whereas dialog work of Akhaura-Laksam part into twin gauge double monitor is ongoing with ADB’s mortgage.

Because the Kamalapur ICD is unable to deal with the rising demand, authorities wish to shift it to Dhirasram. The estimated price of the venture is $362.28 million, of which BR desires $289.82 million from ADB.

The estimated price for the conversion of 123.76-km Laksam-Pahartali MG double monitor to twin gauge (DG) double monitor in Chattogram is $ 1,841.95 million. BR has sought $1,486.82 million from ADB.

Conversion of 52-km Chattogram-Dohazari MG monitor into DG monitor would require $1,168.39 million. BR has sought $767.60 million from ADB.

Estimated price for dialog of the 95.37-km Tongi-Bhairab Bazar-Akhaura MG double monitor into DG double monitor is $1,720.15 million. BR has sought $1,455.34 million from ADB.

Building of the chord line from Dhaka to Cumilla through Narayanganj will scale back the gap from Dhaka to Chattogram by 100 km. BR has taken up a venture, with ADB mortgage, to hold out a feasibility research for it. The venture price might be roughly $3,000 million.

In the meantime, apart from the precedence tasks, some extra tasks have been proposed for ADB’s consideration, together with building of a rail monitor from Panchagarh-Banglabandha, building of a carriage and wagon upkeep workshop at Rajbari, and building of one other workshop at Gazipur’s Dariapara.


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