Fraud Ring Hijacks Tk 30,000 Crore Chattogram Monorail Project
Representational image.
A fraud ring is attempting to hijack a massive Tk 30,000 crore infrastructure project in Chattogram by impersonating representatives of two world-renowned construction giants.
Despite a complete lack of verification, the Chittagong City Corporation (CCC) has already signed a Memorandum of Understanding (MoU) with the group, while the Bangladesh Investment Development Authority (BIDA) approved the proposal as a legitimate foreign investment.
The scam centers on a proposed monorail system for Chattogram. While the Dhaka Transport Co-ordination Authority (DTCA) is conducting a separate Tk 70 crore feasibility study for a metro rail, the CCC and BIDA have moved with “mysterious” speed to prioritize the monorail project.
The mastermind, Kawsar Alam Chowdhury, signed the agreement claiming to be the sole authorized representative for Egypt’s state-owned The Arab Contractors and the global giant Orascom Construction.
Documents reveal he used forged names and logos to secure the contract. However, Orascom’s Cairo office told Agamir Somoy that they have no local representatives or affiliation with Chowdhury.
SHUJAN- Citizens for Good Governance Secretary Badiul Alam Majumdar said, “This is a terrible fraud. Promoting foreign investment is positive, but to ensure no fraudster group can deceive people, the minimum background of interested investors should be verified.”
Ali Imam Majumdar, a former Cabinet Secretary and former advisor to the interim government, echoed these concerns, “Those who sign an MoU or contract have a responsibility to verify who they are contracting with. This type of deficiency in a government agency is absolutely unacceptable.”
The “Chattogram Monorail Mass Transit Initiative,” signed on 24 June 2025, outlines a 71.40-kilometer network featuring four routes and 70 stations.
The project, proposed under Build-Operate-Transfer (BOT) and Public-Private Partnership (PPP) models, estimates the total cost at Tk 30,000 crore, while the expenditure for the feasibility study is set at Tk 150 crore.
Following the signing, CCC Mayor Shahadat Hossain lobbied BIDA and multiple ministries for rapid implementation. BIDA Director Md Houmyoun Kabir Khan then urged the Ministry of Road Transport and Bridges, the Local Government Division, and the Power Division to take action.
When asked how a file based on a fraudulent consortium reached three ministries without verification, Houmyoun responded, “It was a long time ago; I cannot recall it now.”
Business Development Director at Orascom’s Cairo office Sherif Sharobim clarified the company’s position via email on 14 June, “Orascom Construction has no presence, business activities, or authorized representatives in Bangladesh.”
The company stated it has no connection to the “Arab Contractors-Orascom-Peninsula Consortium” and warned that the unauthorized use of its name is illegal.
In contrast, Kawsar claimed to Agamir Somoy that the group is legitimate, presenting an expired trade license from Gazipur City Corporation for a company called “Orascom Construction Bangladesh”.
Kawsar asserted, “The Arab Contractors is the primary investor and lead contractor for the Chattogram monorail project. Orascom Construction will implement the field-level work as the EPC contractor. The Bangladesh government has already established formal contact with the chairman of Arab Contractors.”
The consortium’s history is further marred by the involvement of M Ali Nazir Shahin, identified as the CEO of Peninsula Consortium during a project presentation in June 2024.
RAB-1 arrested Shahin in 2022 for defrauding military personnel and was previously sentenced to 18 months in prison for fraud. Bangladesh Army declared him persona non grata in all cantonment areas in 2017.
Investigations reveal this ring has also targeted other major sectors, signing an MoU for a 600MW solar power plant in Khulna and holding high-level meetings with Mongla Port authorities by promising German investment.
While CCC CEO Ashraful Amin admitted the corporation relied on BIDA’s initial approval to justify the contract, neither agency could provide any legal Power of Attorney or board resolutions from the actual Egyptian firms.
