Chittagong-Cox’s Bazar railway cost overruns by Tk 162 billion, deadline extended to 2022

The government has approved a proposal to extend the time and cost of Chittagong-Cox’s Bazar railway project.

A meeting of the Executive Committee of National Economic Council (ECNEC), chaired by Prime Minister Sheikh Hasina, approved the revised proposal on Tuesday, Planning Minister AHM Mustafa Kamal said.
 
He said the railway project to connect Dohajari with Cox’s Bazar and Bandarban’s Ghumdhum border via Ramu has been extended to 2022.
 
The project cost has been extended by Tk 161.82 billion, which takes the total cost to over Tk 180 billion.
 
The project was cleared in 2010 with an initial cost of Tk 18.52 billon and a deadline of 2013.
 
Kamal said, “Although the deadline has been extended to 2022, Prime Minister Sheikh Hasina has ordered that Dohajari-Ramu-Cox’s Bazar tracks be finish within three years.”

She also asked that this initiative be put on the list of projects that have been fast-tracked, the minister added.
 
“The project cost was measured with metre gauge. Now it has been converted to dual gauge (both metre gauge and broad gauge),” Kamal said, explaining the cost overrun.
 
“The relevant cost has increased due to the conversion and land acquisition.” He added that the land price has increased now from what it was in 2010.
  
Asian Development Bank (ADB) is lending Bangladesh government Tk 131.15 billion for the project.
 
The rest of the cost will be allocated from governments funds.
 
People will be able to travel 100 kilometres from Chittagong’s Dohajari to Cox’s Bazar via Ramu and 28 kilometres from Ramu to Ghumdhum in Ukhia once the tracks are laid.