China Railway gets final nod to build Padma rail network
The government has given the final go-ahead to a Chinese company to start construction of the 215km-long Padma rail link from Dhaka to Jessore.
China Railway Group was commissioned to construct the railroad -- which will link the capital for the first time with Jessore and also connect Dhaka to Khulna, Benapole and Mongla -- for Tk 24,749 crore, or $3.14 billion.
Construction is scheduled to be complete by 2022. A portion of the rail line will be up and running by 2018 -- when the government presents the much-publicised infrastructure project to the public -- such that the Padma bridge can be used by both road and rail.
China Railway initially sought $6.26 billion, excluding the cost of land acquisition and resettlement, consultancy fees and taxes, but during negotiations the proposed expenditure was slashed by about half.
The railway ministry says the cost has been vetted by an independent consultant.
“The contract price is reasonable and reflects the level of pricing that would have been achieved if the project had been promoted through international competitive bidding as planned earlier,” the railway ministry said quoting the consultant's review.
China Railway was not selected through open bidding; it was picked by the Chinese government, which will provide the majority of the project cost by way of soft loans.
The total project cost is Tk 34,989 crore, of which Tk 24,749 crore would be met through China's government loan. The loan will carry 2 percent interest and must be repaid in 20 years after a five-year grace period.
The remaining amount of the project cost will come from the government's own funds.
The approval of the rail link project came yesterday -- 19 months after the start of construction of the Tk 28,793-crore Padma bridge project -- in a meeting of the cabinet committee on purchase chaired by Agriculture Minister Matia Chowdhury.
The committee also approved Tk 2,903 crore in taxes and duties from the Padma rail link project that will go straight to the National Board of Revenue.
The rail link project includes setting up 215km of rail line, construction of 66 main bridges, 244 minor bridges, 14 new rail stations and procurement of 100 passenger coaches, according to the proposal from the railway ministry.
The Padma bridge will be double-decker with a four-lane road on the upper deck and a broad gauge single railway track on the lower deck.
When the train route is operational, there will be scope to establish a rail link between Dhaka and the Payra deep-sea port through Bhanga and Barisal.
The rail line will originate from the Dhaka railway station and run through Gandaria, Mawa, Padma bridge, Jazira, Bhanga, Kashiani and Narail to Jessore.
For the purpose, 1,700 acres of land will have to be acquired, the work for which has already started, according to railway ministry officials.
The Bangladesh army has been appointed as the consultant to facilitate land acquisition and oversee work on the rail project.