Tk 2.31 Billion to Be Spent on Consultancy Alone!

A new railway line will be constructed from Bogura to Sirajganj. An allocation of Tk 2.31 billion has been proposed solely for consultancy services for the project. Questions have been raised over why such a large amount is needed for consultants.

The project is also undergoing changes in its source of foreign financing and its name. At the same time, the project cost is increasing. These developments have occurred under the Ministry of Railways’ project titled ‘Construction of Dual-Gauge Railway Line from Bogura to Sirajganj.’

After remaining stalled for a long time, an initiative has been taken for the project’s second revision. A meeting of the Project Evaluation Committee (PEC) on the revised proposal will be held on Thursday.

The meeting will take place at the conference room of the Physical Infrastructure Division of the Planning Commission in Sher-e-Bangla Nagar in the capital. Project officials are expected to face questions at the meeting on various issues, including the additional allocation for consultancy services.

Sources said that when the project was originally approved, consultancy expenses were estimated at Tk 684 million. That amount has now been increased by Tk 1.6377 billion, bringing the total allocation for consultancy services to Tk 2.3117 billion.

The Planning Commission said that expenditures in various sectors, including consultancy services, would be discussed at the PEC meeting. Recommendations may be made to reduce costs in these and other sectors.

Project Director Md. Abu Zafar Mia told Agamir Somoy, “This amount has been proposed for consultancy services in line with the standards of development partners, including the World Bank and ADB. This is because we want to ensure that there is no compromise in quality. However, the matter will be discussed at the PEC meeting tomorrow. After that, the expenditure in this sector will be reviewed and reduced as much as possible. Discussions have already been held with AIIB on the matter. We hope the expenditure will come down to a reasonable level.”

Responding to another question, he said, “We have confirmed a loan from the Asian Infrastructure Investment Bank (AIIB) instead of Indian financing. The process of securing the loan is now at the final stage.”

According to sources at the Ministry of Railways, the total cost of the project was originally estimated at Tk 55.797 billion. Of that, Tk 24.331 billion was to come from the government fund and Tk 31.466 billion from the India Line of Credit (LoC). Later, through a special revision, the government’s share was increased to Tk 59.0287 billion.

Now, under the first revision, the Indian loan has been replaced with AIIB financing, increasing the project cost by Tk 66.215 billion to Tk 125.2437 billion. Of this, Tk 38.137 billion will come from government funds and Tk 87.1067 billion from AIIB loans. In this case, the project cost will rise by 52.87 percent.

Meanwhile, the original project period was from July 2018 to June 2023. It was later extended by three years in phases until June 2026. Under the first revision, it has now been proposed to extend the project by another four and a half years until December 2030.

From the start of the project through May this year, Tk 22.7139 billion has been spent. Financial progress has reached 40.71 percent, while physical progress stands at 27.71 percent.

Project Name and Financing Method Changed

The original Development Project Proposal (DPP) identified Indian LoC-3 as the financing source. Under that financing arrangement, the consulting firm prepared the feasibility study, detailed design and draft tender documents. Compensation for land acquisition was also paid to the offices of the deputy commissioners of Bogura and Sirajganj.

However, at the 23rd meeting of the LoC Review Committee held on March 5, 2025, the Indian government removed the project from the LoC-3 framework. AIIB has since expressed interest in becoming the sole financier of the project. As a result, the loan is now being taken from the bank.

Meanwhile, at the fourth Project Implementation Committee (PIC) meeting held on April 28, the project’s title was changed. In the original DPP, the project’s name was ‘Construction of Dual-Gauge Railway Line from Bogura to Shaheed M. Mansur Ali Station, Sirajganj.’ The new title is ‘Construction of New Dual-Gauge Railway Line from Bogura to Sirajganj.’

Economic Relations Division (ERD) Secretary Shahriar Kader Siddiky told Agamir Somoy, “Both India and Bangladesh jointly decided to cancel the Indian loan. The project was being delayed, and they lost interest in it. We also saw that since there was an alternative financing option, it was better to let them go.”

Main Activities of the Project

Under the project, 85.67 kilometers of new dual-gauge railway line will be constructed. The project also includes the construction of major bridges—one 246-meter bridge over the Karatoya River and one 205-meter bridge over the Ichamati River—as well as 121 other small and medium-sized bridges.

In addition, a 178.3-meter railway overpass will be built over the Dhaka-Rangpur Highway and a 1,335-meter road overpass over the Bogura-Natore Highway. The project will also include the construction of eight new railway stations and other related works.

Prime Minister’s Directives

A meeting on the development of the railway transportation system was held on June 16 under the chairmanship of Prime Minister Tarique Rahman.

At the meeting, Prime Minister Tarique Rahman said that a dual-gauge single line must be constructed under the Bogura-Sirajganj railway project. In this regard, the existing Bogura Railway Station and the Kahalu-Gabtali railway line must remain operational.

He also said that, subject to feasibility studies, short-distance railway crossings in Bogura city, including Rajabazar, Thana Mor and Selim Hotel rail crossings, should be integrated and replaced with overpasses or underpasses to ease traffic congestion in the city.