[🇧🇩] Bangladesh Railway

[Saif]

Railway unlikely to spend over 20pc ADP fund

Bangladesh Railway is unlikely to spend more than 20 per cent of its annual development programme (ADP) allocation in the current fiscal year due to slow progress of some major projects, including ones under the Indian Line of Credit (LoC). Officials said a reduced demand of Tk 26.35 billion had

thefinancialexpress.com.bd

Railway unlikely to spend over 20pc ADP fund
Munima Sultana
Published :
Dec 06, 2024 01:02
Updated :
Dec 06, 2024 01:02

Bangladesh Railway is unlikely to spend more than 20 per cent of its annual development programme (ADP) allocation in the current fiscal year due to slow progress of some major projects, including ones under the Indian Line of Credit (LoC).

Officials said a reduced demand of Tk 26.35 billion had already been assessed for the revised ADP after reviewing 30 ongoing projects.

At the end of the first half of the fiscal year 2024-25, reduced demands for allocations would be placed for almost all projects, except six, they added.

"The highest revised allocation is likely to be placed for the LoC-funded Dhaka-Tongi-Joydebpur railway expansion project, which involves developing the third and fourth lines in the Dhaka-Tongi section and dual-gauge double lines in the Tongi-Joydebpur one," said an official.

He said though Tk 6.43 billion was supposed to be spent on the project in the current fiscal year, expenditures of Tk 5.09 billion were unlikely till next June due to the delay in getting concurrence on a contract package from the Indian Exim Bank.

"An allocation demand of only Tk 1.33 billion is likely to be placed for the project in the revised ADP," he added.

Similarly, Bangladesh Railway is likely to demand only Tk 103 million for the Khulna-Darshana Junction double line project against the allotted Tk 8.43 billion.

However, an increased demand of Tk 4.98 billion is likely to be placed for the LoC-funded project involving the development of dual-gauge double lines on the Bogura-Shaheed Monsur Ali Station section due to the need for land acquisition spending.

Besides, sources said Bangladesh Railway is likely to place an increased demand of Tk 3.57 billion against a Tk 709 million allocation for a Korean EDCF-funded project. Officials said the project to procure 20 metre-gauge locomotives and 150 metre-gauge carriages would be completed by next June.

They also said as 35 more carriages are likely to arrive in the country soon, all payments need to be cleared.

Moreover, Bangladesh Railway has sought Tk 130 million against an allocation of only Tk 100,000 for a project to rehabilitate rail crossings and improve the standards of level crossings in the western zone. The extra amount has been sought to pay the dues of temporary gatekeepers.​

 

[Bilal9]

Afzal Hossain, a key figure in Padma Bridge rail project, to lead Bangladesh Railway

Md Afzal Hossain has been appointed as the new director general of Bangladesh Railway. Afzal, who currently serves as the additional director general (infrastructure) of the railway, also worked as the project director of the Padma Bridge Rail Link Project. According to a notification issued by t

thefinancialexpress.com.bd

Afzal Hossain, a key figure in Padma Bridge rail project, to lead Bangladesh Railway
bdnews24.com
Published :
Nov 28, 2024 22:59
Updated :
Nov 29, 2024 05:36

View attachment 11095

Md Afzal Hossain has been appointed as the new director general of Bangladesh Railway.

Afzal, who currently serves as the additional director general (infrastructure) of the railway, also worked as the project director of the Padma Bridge Rail Link Project.

According to a notification issued by the Ministry of Railways on Thursday, he will assume his new role on Dec 8.

“The notification was issued this evening. I have been entrusted with the responsibility of director general,” Afzal told bdnews24.com.

He succeeds Sardar Shahadat Ali, who was appointed to the role on Mar 12 this year.​

I give this guy about two years before he turns fully corrupt (or maybe even earlier). I don't know how they qualify these guys, BCS cadre?

 

[Saif]

Project cost to shoot up by 80pc

The cost of the Joydebpur-Ishwardi rail line expansion project may increase to Tk 26,000 crore, over 80 percent higher than the original estimate, mainly due to long delay in starting work after China decided not to fund the project.

www.thedailystar.net

Project cost to shoot up by 80pc

The cost of the Joydebpur-Ishwardi rail line expansion project may increase to Tk 26,000 crore, over 80 percent higher than the original estimate, mainly due to long delay in starting work after China decided not to fund the project.

In November 2018, the Tk 14,250 crore project was taken up to turn the 165km Joydebpur-Ishwardi line, vital for Dhaka's link with the country's north-west, into a dual-gauge double line.

But work on the ground could not be started after China in March 2021 declined to fund it, more than five years after it agreed to finance it.

Japan, following Bangladesh's request, agreed to finance the project and reviewed its feasibility study. Japanese consultants estimated that it would now take Tk 25,949 crore to build the line, which is Tk 11,698.59 crore or 82 percent more than the original estimate.

China had pulled out four months after the Prime Minister's Office ordered reducing the cost of the project by Tk 1,495 (10.49 percent) crore, saying the project cost was inflated.

Now, the project would cost 82 percent more and its deadline would be June 2030.

Because of the delay, Bangabandhu Railway Bridge over the Jamuna, which cost Tk 16,781 crore and is expected to be opened in January, will remain underutilised for at least the next five years, as the double-line bridge will be fed by a single line.

Railways Ministry Adviser Muhammad Fouzul Kabir Khan, however, said, "This [line expansion cost] is an estimate by Japan and has not been finalised yet.

"We will discuss the cost with them," he told The Daily Star on November 30.

Fouzul said when Japan International Cooperation Agency officials met him, he appreciated Japan's support for development projects "but I told them that the projects have to be cost-effective."

He said a Japanese delegation is expected to visit Bangladesh later this month, and they would discuss the railway project, particularly its cost in detail.

WHY TRAINS TAKE SO LONG

Trains between the capital and the north-west region being late has become all too common over the last few years.

Dhaka and those regions are linked by the single-line section between Joydebpur and Ishwardi.

Twenty-two trains can smoothly run every day using the single line, but the line is being used by around 40 trains. As a result, most of the trains, except a few, have to wait at nearby stations to make way for oncoming trains, officials said.

This is made worse by the fact that the distance from one station to another between Joydebpur and Bangabandhu Bridge (East) Station is relatively long, causing each train to wait even longer.

PROJECT DELAY

To fix this, the government in November 2018 took up the Tk 14,250.61 crore project to turn Joydebpur-Ishwardi section into a dual-gauge double line.

This was among the projects for which Dhaka and Beijing signed a memorandum of understanding (MoU) during Chinese President Xi Jinping's Dhaka visit in October 2016.

China was supposed to provide Tk 8,756.75 crore for the line expansion and BR completed negotiation with China Civil Engineering Construction Corporation for implementing the project.

Between March 2019 and January 2021, the railways ministry wrote to the Chinese government several times requesting the signing of a deal.

But, China in March 2021 declined to finance the project citing several reasons, including "a lack of in-depth preliminary work and insufficient feasibility study".

Sources claimed that China's backtracking may have something to do with geo-politics. Bangladesh's rail communication, especially the operation of freight trains with India, would have got a boost once the double-line project was completed. The PMO's directive to cut costs also played a role, they said.

Amid allegations of inflated project cost, the PMO in October 2020 formed a committee to review negotiated contract prices related to three rail projects, to be implemented with Chinese loans under government-to-government initiative.

Under such initiative, the loan-providing country selects the contractor from its country without any competitive bidding.

Following the committee's report, the PMO in November 2020 directed BR to slash Tk 1,495.52 crore from the project's contract price.

COST ESCALATION

After China pulled out of the project, Japanese authorities reviewed the feasibility study. A JICA delegation also held a meeting with railway authorities about different aspects of the project in October this year.

As per the review report, the cost of the project will be Tk 25,949.2 crore, of which JICA will lend Tk 19,103 crore and the government will bear the rest, show documents.

BR sources attribute three major reasons behind such a big escalation of project cost.

When the project was approved in 2019, the cost was estimated following the rate schedule of 2013 but the new estimate was made following the rate schedule of 2023. Rate schedule is the rate or charge for a particular classification of product or service, a BR official said.

Besides, when the project was approved, the dollar-taka exchange rate was around Tk 85 but now it is around Tk 120.

"These two are the major reasons behind the cost escalation," the official said, wishing anonymity.

Moreover, an additional station will be built under the project, which will increase cost, the official said.

BR sources said the railways ministry was informed about the cost escalation and the ministry asked officials concerned to try to lower the cost while drawing the detailed design.

BR has already taken up a Tk 146 crore project to prepare a detailed design for the project.

Cost of the project may change a little after the detailed design, for which appointment of consultants is now at the final stage, sources said, adding that the design work and preparation of the bidding documents could take 15 months.

The sources said a JICA delegation is expected in Dhaka later this month and, if everything goes well, a loan deal is expected in March, they added.​

 

[Saif]

Initiative to build shorter rail link between Dhaka, Ctg resumes

The Bangladesh Railway has resumed an old initiative anew to build a rail link along the shortest distance between Dhaka and Chattogram that will significantly reduce the travel time between the capital and the port city...

www.newagebd.net

Initiative to build shorter rail link between Dhaka, Ctg resumes
Shahin Akhter 09 December, 2024, 00:24

The Bangladesh Railway has resumed an old initiative anew to build a rail link along the shortest distance between Dhaka and Chattogram that will significantly reduce the travel time between the capital and the port city.

Railway officials said that the new rail link along the chord line, which in railway parlance is the shortest distance between two given railway stations, once built, would reduce journey duration to less than three hours. Currently, uninterrupted trains like Sonar Bangla Express and Subarno Express take about five hours for the journey.

The present 321-kilometre Dhaka-Chattogram route follows a long and winding course, touching Tongi and Bhairab before going past Cumilla to reach the port city.

The new line that will run via Cumilla and Narayanagnj would be 231–236km long, 85–90km less than the current distance.

Railway officials said that establishing rail communication along the chord line became urgent for building a shorter and faster rail link between the capital and the port city.

The first initiative was taken on this in 2006 was later abandoned. Then another initiative in 2020 was postponed, to be revived again in October this year.

Under the project, the railway has begun a feasibility study and now is waiting for approval from the interim government’s adviser for the railways ministry Muhammad Fouzul Kabir Khan to carry on with the proposed project, said Bangladesh Railway officials.

The authorities are looking into several options for the new rail link. The route of the first two options is same, Shyampur-Narayanganj-Bandar-Sonargaon-Meghna-Titas-Muradnagar-Debidwar-Burichang-Cumilla Adarsha Sadar, while the length of the option one is 80.6km and the option two is 80.05km.

The route of the 82.5km-long third option is Shyampur-Narayanganj-Bandar-Sonargaon-Meghna-Titas-Daudkandi-Muradnagar-Chandina-Barua-Cumilla-Adarsha Sadar-Cumilla Sadar Dakkhin.

The route of the 89km-long fourth option is Shyampur-Narayanganj-Bandar-Sonargaon-Meghna-Titas-Daudkandi-Muradnagar-Chandina-Barua-Laksam-Cumilla Sadar Dakkhin.

On November 25, at a meeting held on the proposed ‘Construction of a chord line from Narayanganj to Laksam/Cumilla’ project at the Rail Bhaban, the officials agreed on principle on the option one based on the issues related to land acquisition, economic benefit and length.

The rationale and justification of the feasibility study and detailed design for the proposed project estimates the preliminary estimated cost for the chord line at approximately Tk40,000 crore.

This high cost reflects factors, including higher land prices around Dhaka and Narayanganj and the need for substantial viaduct structures, including bridges and culverts, it added.

The document also said that the rail link was established during the 19th century British colonial period as a meter-gauge single line section to maximise coverage across the region.

At present the rail link still operates primarily with meter-gauge tracks as a double line, with the upgraded dual-gauge double lines on the 72km long Akhaura-Laksam and 21km long Dhaka-Tongi sections.

After the 2006 feasibility study, a public-private partnership proposal was sent to the railways ministry in 2012 titled ‘Construction of chord line from Dhaka to Cumilla’ when the estimated cost of the construction had been fixed at about Tk 11,622 crore at that time.

In August 2014, the railway signed a memorandum of understanding with China Railway Eryuan Engineering Group Co Ltd for the project but the railway dropped the project as the government gave focus on high-speed rail connection on the section which was also ditched.

In 2020, another move was taken to conduct another feasibility study on the plan but in March this year then prime minister Sheikh Hasina directed to postpone the study citing financial crisis, according to the railway officials.

After the fall of Sheikh Hasina on August 5 the railway resumed the feasibility study and detailed design for the proposed project in October after getting a nod from the new government, said officials.

‘Currently we are conducting the feasibility study and preparing the detailed design,’ said project director Md Abedur Rahman on Sunday.

He also said that they were yet to fix the option and before the detailed design it was difficult to properly estimate the cost of the project.

‘The adviser will give a decision on the proposed project at first as it is a large one,’ he said, adding, ‘then the proposed project will be sent to the Planning Commission for approval.

Railway officials said that discussions on building a chord line between Dhaka city and the port city had been going on since the 1970s.​

 

[Saif]

Railway fails to earn and run

Some Tk 896.21 billion has been invested for railway development over the past decade since a separate ministry for the sector was established in 2012 yet Bangladesh Railways (BR) fails to earn and run on its own largely for what experts say shady spending of funds. The BR under the Minist

thefinancialexpress.com.bd

Tk 17.92b new project comes under scanners
Railway fails to earn and run
Swallows billions thru shady spending
JAHIDUL ISLAM
Published :
Dec 22, 2024 00:37
Updated :
Dec 22, 2024 00:37

Some Tk 896.21 billion has been invested for railway development over the past decade since a separate ministry for the sector was established in 2012 yet Bangladesh Railways (BR) fails to earn and run on its own largely for what experts say shady spending of funds.

The BR under the Ministry of Railways continues to struggle with revenue shortfalls and even banks on public funds to meet maintenance costs.

Of late, the ministry has submitted a proposal for undertaking a Tk 17.92-billion project to maintain over 1,500 kilometers of railway tracks in the eastern region, about half the country's rail network, said officials of the planning ministry.

The project is to be completed in June 2028, starting from July this year, reveals the project documents.

While BR policy dictates that regular maintenance should be funded through its revenue budget, the planning commission has questioned the ministry's reliance on development funds for such expenses during a recent Project Evaluation Committee (PEC) meeting.

Officials from the railways ministry argue that inadequate revenue allocations had made it impossible to perform necessary maintenance.

The PEC meeting, chaired by Soleiman Khan, Member (Secretary) at that time of the Physical Infrastructure Division at the planning commission, who went on forced retirement recently, concluded with conditional approval for the project, subject to compliance with directives aimed at enhancing efficiency and accountability.

The proposed project aims to address deteriorating railway tracks in the eastern region, ensuring safety and enhancing passenger services. Critical sections covered by the project include the Dhaka-Chattogram, Dhaka-Sylhet, Sylhet-Chattogram, Laksam-Chandpur, Laksam-Noakhali, Dhaka-Mymensingh-Jamalpur routes, which serve as vital transportation links for the region.

Experts and economists attribute the need of funds for maintenance through development projects to unplanned infrastructure growth and BR's recurrent failure to generate sufficient revenue.

Official data from the Implementation Monitoring and Evaluation Division (IMED) reveal that the railways ministry has spent Tk 896.21 billion since the financial year 2011-12.

Currently the ministry is handling 29 development projects with an estimated cost of Tk 1.39 trillion, which achieved financial progress of Tk 637 billion.

"Strategic planning and accountability are crucial to transforming BR into a self-sufficient and profitable organization," experts emphasized.

The project documents highlighted the deteriorating condition of 1,503.61 kilometers of railway tracks in the eastern region, plagued by worn-out sleepers, rails, and ballast.

Ministry officials note that despite its strategic importance, the region's infrastructure has suffered from insufficient funding, manpower shortages, and outdated systems.

"While new lines have been constructed, much of the existing networks remains in dire need of rehabilitation," says a senior BR official.

The proposed initiative includes replacing damaged sleepers, rails, and fittings, filling ballast deficits, and introducing mechanized maintenance systems. These measures aim to reduce accidents, ensure smoother operations, and improve overall service quality.

The Planning Commission has raised concerns about potential duplication of efforts, as maintenance activities are regularly conducted under the revenue budget.

To address this, directives have been issued to clearly separate project activities from those funded under the revenue budget.

Dr Md Shamsul Hoque, Director of the Accident Research Institute at BUET, has criticized the reliance on development funds for routine maintenance, calling it a symptom of previous projects' failure to deliver promised outcomes.

"Approving large-scale projects without ensuring their effectiveness undermines the sector's financial sustainability," he warns, adding that transparency in fund utilization is imperative for meaningful progress.

Sheikh Sakil Uddin Ahmed, Additional Secretary (Planning) at the Ministry of Railways, told the FE that regular maintenance requires a lower investment but periodic maintenance of rail tracks requires a huge sum of investment.

As the limited allocation fails to meet the demand for regular maintenance, the project has been proposed to conduct periodic maintenance and also for rehabilitation of some decades-old tracks, including in areas adjacent to Sylhet and Mymensingh.

The official further stated that similar old infrastructure exists in the western region of the railway network.

"To address this, a separate project, with comparable funding from the Asian Development Bank, is being planned specifically for the western-railway lines," he said.

Bangladesh Railways (BR) has witnessed a significant decline in its rail-line- maintenance performance over the years, according to the Annual Performance Agreement (APA) of the entity.

In the fiscal year 2018, the BR managed to maintain 2,660 kilometers of railway tracks and the length increased to 3,374 kilometers in 2020, the highest in the past decade.

However, since then, maintenance coverage has consistently declined, reaching just 300.39 kilometers in 2024, with projections of 480 kilometers in the current fiscal year and 490 kilometers in 2026.

The sharp decline in maintenance coverage, particularly from 2024 onwards, is attributed to several factors such as inability to allocate sufficient funds for routine maintenance under its revenue budget and manpower shortages, said officials of the BR.

However, a shift in priorities towards large-scale development projects has overshadowed the upkeep of existing infrastructure, says Dr Shamsul Hoque.

The maintenance budget for the railways is said to have remained stagnant. Bangladesh Railways received a budget worth Tk5.08 billion in the current fiscal year for conducting repairs and maintenance activities of all infrastructures, including rolling stocks, tracks, workshops and hospitals, in the two zones of the railways.

According to the Medium-Term Budget Framework (MTBF) of the Finance Division, the budget for maintenance activities has shown inconsistencies, with allocations failing to meet the growing needs of an ageing railway infrastructure.

The allocation was Tk4.26 billion in the fiscal year 2020-21 and rose to Tk 5.31 billion in the FY-2022, the highest in the last five years.

The amount fell to Tk 4.04 billion in 2023, reflecting inconsistency in funding priorities.

The allocations saw a slight recovery in 2024, rising to Tk 5.01 billion, with a marginal increase projected for 2025 at Tk5.08 billion.

The BR has been maintaining a revenue expenditure that is more than double its revenue earnings for the last several years, incurring substantial operating losses. In the last fiscal year (FY 2023-24), it spent Tk 39.24 billion, which is more than double its earnings of Tk 19.25 billion.​

 

[Bilal9]

Dhaka to Khulna Rail link via Padma Bridge reduced by 212 KM, total time needed will be three hours and 45 minutes, which is unprecedented.





Narail enroute has been awarded a new railway station

 

[Saif]

The BR conundrum

The Bangladesh Railway (BR) makes news, more often than not, for all the wrong reasons. One such headline it has made on page 8 of the last Sunday's issue of the FE. The headline says it all but contention of the news explains why the BR suffers from its endemic malaise. Like most of the organisati

thefinancialexpress.com.bd

The BR conundrum
FE
Published :
Dec 23, 2024 21:39
Updated :
Dec 23, 2024 21:39

The Bangladesh Railway (BR) makes news, more often than not, for all the wrong reasons. One such headline it has made on page 8 of the last Sunday's issue of the FE. The headline says it all but contention of the news explains why the BR suffers from its endemic malaise. Like most of the organisations in the public sector, the BR has been limping ever since the country's independence. As is the case in the majority of such organisations and establishments, anachronism is the hallmark. The Bangladesh Telecommunications Company Limited (BTCL), Bangladesh Road Transport Corporation (BRTC), Bangladesh Food and Sugar Industries Corporation, Bangladesh Power Development Board (BPDB), to name just a few, have all proved to be losing concerns.

But why? Their service and products are in high demand and yet they cannot run profitably. Those responsible for overall management and the officers and employees down the rank consider their respective entity a beehive meant for extracting honey. With rare exception, they are top to bottom corrupt and have no love or responsibility for the organisation or establishment they work for. The long saga of corruption in the BR is no different from those of land offices, in power sector, in land telephone connection and customer service, piped gas connection, management of sugar mills as well as in other such establishments. When private cell phone companies are earning whooping profits, the Teletalk Bangladesh Ltd fails not only to earn profit but also provide substandard service. An example of the BRTC throws some light on such developments. While private bus operators add more vehicles to their fleet from their income, the BRTC has relied on subsidies. Once employed, officers and employees take their employment as guaranteed; they feel no urge to take challenges and compete with their rivals. It is the top bosses who have to lead from the front to encourage and inspire officers and employees under them to work hard and earn both profit and reputation.

Unfortunately, this does not happen because of the widespread corruption culture. If the rot takes effect in the head of a fish, the entire body degenerates fast. Apart from such corruption, the BR has long been a victim of a kind of conspiracy in that it was neglected under pressure from the lobbying groups of long-route bus operators. A faulty government policy of far greater investment in developing road communication to the neglect of the mass transportation of railways even led to closure of railway routes and stations. It received reasonably greater attention as late as 2018 when investment in the BR jumped to 106.84 billion from 60.8 billion in its previous year.

Clearly, the BR has been receiving similar or more funds since then, barring 2019 and 2020 — the years the country was wriggling out of the pandemic and its after-effects — for its development projects. Notwithstanding the fresh investment, its revenue income has failed to pick up and it still cannot even bear its routine maintenance cost. This is unacceptable. The same old malaise of irregularities and misuse of funds may have been responsible for this. Comparatively safer, cheaper and more comfortable, a train journey is always preferable to a bus journey. But if the service is poor with disrupted schedules, the train journey is sure to lose its appeal. No doubt, railway needs far greater investment but the expenditure has to be transparent and with the string of accountability attached. The interim government should start the process of such transparency and accountability in expenditure in BR aimed at turning it into a modern and reliable mass transportation service.​