Railway investment agreed
25 April 2008
The Asian Development Bank (ADB) has agreed a US$ 430 million loan with the Bangladesh Government to improve the country’s rail network.
The money will be provided over five years, through a multi-tranche financing facility. ADB, the Japan Bank for International Cooperation (JBIC), the World Bank and the Bangladesh Government have developed the Railway Sector Investment Program jointly. The loans represents 46.5% of the total needed under the Government’s US$ 924.5 million, seven-year roadmap and investment plan for the railway sector.
In 2007, a US$ 100 million loan will help double capacity of the Tongi-Bhairab Bazar line. In 2008, a US$ 150 million loan will finance sub-projects in the Dhaka- Chittagong and Dhaka-Darsana- Khulna corridors, where demand for intercity passenger trains and freight services is high.
Loans of US$ 100 million and US$ 50 million in 2009 and 2011, respectively, will see further expansion of the network. The Government is expected to contribute US$ 107.5 million towards the total estimated cost of US$ 537.5 million. Bangladesh Railway is the executing agency for the programme.