Bangladesh has sought nearly $300 million (Tk 36.60 billion) in financing from the Asian Development Bank (ADB) and the European Investment Bank (EIB) to build the country's first electric railway line, connecting Dhaka with Narayanganj.
The Economic Relations Division (ERD) recently sent a Preliminary Development Project Proposal (PDPP) to the Manila-based ADB and the European lender EIB, seeking funding for the proposed electric traction system on the busy commuter route, according to officials.
The Bangladesh Railway (BR) will implement the project once financing is secured, a Ministry of Railways official said.
The BR has estimated the project cost at Tk 38.22 billion, equivalent to about $311.4 million.
The ADB and EIB have previously expressed interest in financing the project and reviewed a feasibility study conducted by Turkish consultancy firm TUMAS.
The EIB's review identified potential inconsistencies in provisions relating to customs duties, VAT and advance income tax, which may require revisions to the project cost.
"We have already sent the Preliminary Development Project Proposal (PDPP) to the ERD for necessary funds. We are hopeful of getting confirmation of funds from the Manila-based lender and the EIB," said the ministry official.
An ERD official confirmed that the division had recently sent the PDPP to the two lenders to secure the required financing.
Bangladesh Railway (BR) will implement the landmark project, marking a major shift toward sustainable, high-speed mass transit.
The project is currently awaiting primary evaluation from the ADB before moving into the formal appraisal stage.
According to the officials, the proposed electric railway will convert about 50-52 kilometres of one of the country's busiest commuter routes into a high-capacity electric corridor.
The project envisages installing a 25-kilovolt AC overhead catenary system across 186 track-kilometres, along with traction substations and other power infrastructure.
It also includes the procurement of 16 electric multiple-unit (EMU) train sets, construction of a state-of-the-art EMU maintenance workshop and installation of smart operational management and control systems.
The project is expected to significantly increase passenger capacity and train frequency. Daily passenger journeys are projected to rise from about 232,000 to more than 845,000, while daily train services would increase from 65 to 235 trips.
Peak-hour waiting times are expected to fall to about 15 minutes, while travel time would decline by around 18 per cent, officials said. Railway operating costs are projected to fall by about 35 per cent.
The shift from diesel-powered trains to electric traction is also expected to reduce air pollution, greenhouse gas emissions and noise along the corridor.
The project would eventually improve connectivity among Dhaka, Narayanganj and Joydebpur (Gazipur), according to BR officials.
A Planning Commission official said the Development Project Proposal had cleared the initial evaluation and was ready to be placed before the Executive Committee of the National Economic Council (ECNEC) for final approval.
