The government is expecting the lion’s share of the funds needed to implement 40 railway projects aligned with a master plan to come from development partners as loans due to local resource constraints.

 Implementation of the 40 railway projects will require Tk 95,901 crore where foreign loans’ contribution is expected to be Tk 76,932 crore, Planning Commission sources said.   

 The rail projects to be complete by 2035 in line with the railway development master plan have been incorporated in the new Annual Development Programme (ADP) for FY18 without any allocation with a hope to get overseas financing.

 Railway officials said the government will implement the projects under a 20-year master plan starting from 2015 to bring about a radical change in the country’s rail service.

 Foreign loans will play a crucial role in implementing these transformational projects because local resource won’t be enough to meet the financing needs, they added.

 But when the projects will be complete will only be known after confirmation of foreign financing and feasibility studies.  

 Economic Relations Division (ERD) is now trying to mobilise foreign loans for the schemes.

The railway ministry has also completed the primary negotiations with some development partners, railway officials informed.  

 For instance, the government has set a target to complete the planned double-track standard gauge rail line from Dhaka to Chittagong via Comilla-Laksam by 2022 at a cost of Tk 30,955 crore, but managing the funds has become a big challenge.

 Tk 24,764 crore of the estimated project cost has been proposed to come from foreign loans and the government primarily thinks Chinese loan will be a suitable option for this project.     

 The feasibility study of the project is currently underway at a cost of Tk 100 crore and the government received verbal confirmation from the Chinese authorities about the project financing, sources added. 

 Another important project for introducing electric traction system in Dhaka-Chittagong rail corridor requires nearly Tk 8,000 crore where project loan has been estimated at Tk 5,000 crore.    

 Transforming Akhaura-Sylhet section into a duel-gauge track also needs Tk 6,500 crore in foreign loans. The total cost the project has been estimated at Tk 8,000 crore.  

  Another Tk 6,000 crore foreign loan has been estimated for construction of a duel-gauge line in Joydevpur-Ishwardi section at a cost of Tk 7,000 crore.