Bangladesh on Monday signed a $618 million loan agreement with the Asian Development Bank (ADB) to convert the existing Chattogram–Dohazari metre-gauge railway line into a dual-gauge track.
The move aimed at improving rail connectivity and ensuring uninterrupted train services to the country’s southeast.
The loan agreement was signed in Dhaka between the government of Bangladesh and ADB. Md Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD) under the Ministry of Finance, and HoeYun Jeong, country director of the ADB Bangladesh Resident Mission, signed the agreement on behalf of their respective sides.
Senior officials from both the government and ADB were present at the signing ceremony, according to a release.
The project, titled “Conversion of Existing Chattogram–Dohazari Metre Gauge Track into Dual Gauge Track”, will be implemented by Bangladesh Railway under the Ministry of Railways from July 2023 to June 2028.
According to officials, the project aims to convert around 52 kilometres of metre-gauge track on the Chattogram–Dohazari section, including the Pahartali–Chattogram portion, into a dual-gauge line. This will allow both broad-gauge and metre-gauge trains to operate on the same track.
Once completed, the project is expected to ensure uninterrupted railway connectivity between the capital Dhaka and the Cox’s Bazar tourist destination by linking the Dhaka–Chattogram rail corridor with the Dohazari–Cox’s Bazar rail line, which is currently under construction.
The project will also upgrade design speeds to 120 km per hour for broad-gauge trains and 100 km per hour for metre-gauge trains, with operational speeds set at 100 km per hour and 80 km per hour respectively. In addition, the project includes the procurement of 30 metre-gauge diesel-electric locomotives.
The ADB loan will be repayable over 25 years, including a five-year grace period.
ADB is one of Bangladesh’s largest multilateral development partners and has been providing development assistance since the country became a member of the organisation in 1973.
To date, ADB’s total loans to Bangladesh amount to nearly $35 billion, while total grants stand at about $633.8 million. Its assistance mainly focuses on sectors such as power and energy, transport, local government, education, agriculture, health, water resources, governance and financial services.