Railway to receive Tk. 93.51cr for green transport overhaul
Staff Reporter :
The government has launched a Tk. 93.51 crore initiative to develop a green railway transport system, with the project aimed at enhancing sustainability and modernising the country’s rail infrastructure.
Titled “Green Railway Transport Preparatory Technical Assistance,” the initiative will be implemented by Bangladesh Railway under the Ministry of Railways, with an expected completion date of March 2027.
Of the total cost, Tk. 28.37 crore will be funded by the Government of Bangladesh, while the remaining Tk. 65.14 crore will be provided as a project loan by the International Development Association (IDA) of the World Bank.
The project received approval from the Executive Committee of the National Economic Council (ECNEC) in a recent meeting.
The project covers several key areas, including major railway stations and critical infrastructure along the Dhaka-Chattogram corridor.
The primary components include expansion and reconstruction of station facilities at Dhaka Airport Railway Station, relocation of operational and maintenance facilities, transformation of Kamalapur Railway Station into a multimodal transport hub, improved rail connectivity between Faujdarhat and Chattogram’s Goods Port Yard/Bay Terminal and enhanced rail infrastructure to support the Mirsharai Economic Zone.
A Planning Commission official revealed that the Special Project Evaluation Committee (SPEC) under the Physical Infrastructure Division reviewed and recommended the project’s implementation on 12 February 2025, subject to certain conditions.
The World Bank has agreed to provide a $6 million Project Preparatory Advance (PPA) from the main loan allocation.
The feasibility studies under the preparatory phase will include assessing the reconstruction of station yards, the relocation of facilities at Kamalapur and Dhaka Airport, and the potential rail links from Faujdarhat to Chattogram’s port terminals.
These studies will also explore the development of multimodal transport hubs and assess the impact of new rail links on the region’s infrastructure.
Following the preparatory phase, the main project will focus on procuring freight locomotives, relief trains, haulage equipment, and developing additional rail infrastructure in the Mirsharai Economic Zone.
Once operational, the green railway system is expected to contribute significantly to reducing carbon emissions, thus helping mitigate environmental pollution.
According to the Planning Commission official, the initiative aims to enhance railway capacity, improve service standards, and modernise infrastructure, all while promoting sustainability in the transport sector.
The modernised rail system is also expected to improve connectivity, reduce transportation costs, foster trade and commerce, and generate employment opportunities. Earlier, the World Bank indicated its interest in financing both the preparatory technical assistance and the main investment project.
This project is included in the list of foreign-funded unapproved projects under the Revised Annual Development Programme (RADP) for the current fiscal year (FY25), with feasibility studies set to be completed during this phase.