The Asian Development Bank (ADB) and the government today (Sunday) signed agreement for $505 million loan to further improve the country’s railways that will help the national economy and boost subregional trade, reports BSS.
Mohammad Mejbahuddin, Senior Secretary, Economic Relations Division (ERD), and Kazuhiko Higuchi, Country Director, Bangladesh Resident Mission of ADB, signed the agreement on behalf of Bangladesh and ADB respectively, at a programme at ERD, Sher-e-Bangla Nagar, Dhaka.
He said this project would also help improve the overall railway transport system in Bangladesh, and aims to reduce transport costs and improve logistics of strategic corridors, such as Dhaka-Chittagong link, for subregional trade.
The South Asia Subregional Economic Cooperation (SASEC) Railway Connectivity: Akhaura-Laksam Double Track Project will help upgrade the 72-kilometer Akhaura-Laksam section of the Dhaka-Chittagong railway corridor to a double track dual-gauge railway line, along with modern signaling equipment.
The existing track will be upgraded in accordance with the requirements of the Trans Asia Railways network. Eleven railway stations will be reconstructed with special facilities for the elderly, women, children, and disabled. The project will also support capacity development for the permanent project management unit to be established in Bangladesh Railway and for accessing climate mitigation funding.
The Akhaura-Laksam section is part of a major subregional corridor and of the Trans-Asia Railway network. The project was endorsed by the SASEC Trade Facilitation and Transport Working Group in a meeting held in Singapore on 30 October, 2013.
The total project cost is $805 million. The European Investment Bank (EIB) will co-finance the project with $175 million while the government will provide $125 million. The project will be executed by Bangladesh Railway and is expected to be completed by 2022.