BR to face crisis with the cancellation of two projects to buy, overhaul 91 engines

While Bangladesh Railways is already struggling with more than 70 per cent of its locomotives being old, it may face further issues as two of its projects, to buy or overhaul 91 locomotives, are going to be cancelled.

The Implementation Monitoring and Evaluation Division last month suggested “ending the incomplete” BR projects, meaning the two long-delayed projects will be cancelled. One project was to procure 70 meter-gauge (MG) locomotives, while the other was to overhaul 21 MG locomotives to mitigate the growing crisis of rail engines. The railways ministry has already written to the authorities concerned not to include these two in the list of projects in the 2023-24 Annual Development Programme (ADP).

In August 2011, the government took up a Tk 1,946 crore project to procure 70 MG locomotives, which were supposed to be added to the BR fleet within June 2017. The deadline was extended twice before the project went through a major revision in 2018, when the cost jumped to Tk 2,659.33 crore with the deadline reset for June 2024.

In October 2018, BR signed a deal with South Korean Hyundai Rotem Company for the procurement of the locomotives. As per the agreement, the company was supposed to arrange the required funds. But in 2021, Hyundai sought to pull out from the project after the government asked it to manage soft loans instead of non-concessional ones as agreed by both sides earlier.

The project authority floated tender thrice over the last four years. A proposal was submitted only the first time. That, however, did not meet the requirements.

Around Tk 5.96 lakh was spent for the overhauling of older locomotives, yet the project was not implemented. The government incurred losses, which is not expected. The authority will carry out proper feasibility studies and other preparatory works to launch the procurement process to modernise the railway soon.