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The cost of Cox’s Bazar rail project is coming down by Tk 6,670 crore

The Awami League government took up the project to build a new railway from Dohazari to Cox’s Bazar and from Ramu to Ghundhum on the Myanmar border. The project was approved in 2010. The cost of this project under the government’s fast track has been fixed at 18 thousand 34 crores. In the meantime, the railway construction work has been completed in the section from Dohazari to Cox’s Bazar in Chittagong. And Bangladesh Railway has decided not to implement the Ramu-Cox’s Bazar part of the project for the time being.

In the meeting of the Project Evaluation Committee (PEC) held yesterday, the agency proposed the second revision of the Development Project Proposal (DPP) of the project by excluding the Ramu-Ghundhum portion. It has been proposed to set the construction cost at 11 thousand 363 crores. If the proposal is approved, the cost of this project will be reduced by Tk 6,670 crore. At the same time, it has been proposed to extend the period of Cox’s Bazar rail project by one more year. If this proposal is approved, the Cox’s Bazar rail project will be completed on June 30, 2025.

The Dohazari-Cox’s Bazar railway construction project was approved by the Executive Committee of the National Economic Council (ECNEC) in 2010 with a plan to implement it in two phases. In the first phase, a 100.83 km railway line was to be constructed from Dohazari to Cox’s Bazar. The construction of the railway has already been completed. From December 1, 2023, train operation has also started on Dhaka-Cox’s Bazar route using this railway. The main purpose of this railway construction was to connect the tourist town of Cox’s Bazar to the railway network. Railway officials said that the introduction of safe, comfortable, cost-effective and environment-friendly communication system for tourists and local people has created opportunities for easy and low-cost transportation of fish, salt, rubber raw materials and forest and agricultural products.

The second phase planned to build a railway line from Ramu station to Ghundhum on the Myanmar border. For this, 28.72 kilometers of railway were to be constructed in addition to two stations at Ukhia in Cox’s Bazar and Ghundhum in Bandarban. The objective was to connect with Trans Asian Railway Route-1. The route is supposed to enter Bangladesh through Darshana border from Gede in India and go to Ghundhum border in Myanmar via Ishwardi-Bangabandhu Setu-Jaidevpur via Tongi-Akhaura-Chittagong-Dohajari-Ramu. In order to complete the route, the governments of the two countries had planned to build about 29 kilometers of new railways in the Bangladesh part and the necessary new railways inside Myanmar. However, the prevailing political situation in Myanmar makes the route uncertain.

Railway officials say that the Ramu-Ghundhum section is being excluded from the Cox’s Bazar rail project as the possibility of the route becoming operational in the near future has decreased. The issue has also been mentioned in the DPP amendment of the project. According to the current DPP, the project implementation area includes Chandnaish in Chittagong, Satkania, Lohagara, Chakaria Sadar in Cox’s Bazar, Ramu, Ukhia and Ghundhum in Bandarban. Through the second amendment, Ukhia of Cox’s Bazar and Ghundhum area of Bandarban have been excluded from here.

Apart from the suspension of the Ramu-Ghundhum section, the amendment proposal mentions that the cost has been reduced due to six other ancillary amendments to the project. The auxiliaries are land acquisition and rehabilitation, construction of core railways, newly imposed CD-VAT, consultants, project management units and price coordination. Expenditure on some of these accessories has increased, on some it has decreased.

The current cost of the project is 18 thousand 34 crores. Of this, 13 thousand 115 crores are Asian Development Bank (ADB) loans. The remaining 4 thousand 919 crores of Bangladesh government. In the second amendment of the DDP, ADB’s debt is proposed to be fixed at 8,651 crores and Bangladesh Government’s share at 2,712 crores.

When drawing attention to the decrease in cost, the project director of the Dohazari-Cox’s Bazar rail project said. Subaktgin Vanik told Barta, ‘Due to the omission of the Ghundhum part, this has affected the construction cost. DPP is proposed to be revised in compliance with all the rules of FIDIC contract.’

The Dohazari to Cox’s Bazar and Ramu to Ghundhum railway construction projects were approved by Ekne in July 2010. Initially, the implementation period of the project was till December 2013. The project was then scheduled to be completed in June this year after extending the period in three phases. In the second amendment of the DPP, this period has been proposed to be extended till June next year. However, railway officials say the main work of the project has been completed. A ‘defect liability period’ of one year after construction is proposed.

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