The cost of setting up 52-kilometre-long railtrack to connect Mongla port with the divisional city Khulna is likely to rise more than 70% in four years due to slow implementation process and construction of Rupsha Bridge.
It is one of the 15 projects, which is now being implemented by spending from the $1 billion Indian line of credit.
“The cost of railway project linking Mongla to Khulna would be increased to over Tk300 million from Tk175m,” said an official close to the matter.
The construction of Rupsha Bridge is blamed for the rise in cost, sources said.
The government approved the project in December, 2010. Its cost had been estimated to be Tk1,721 crore, of which Tk1,231 crore will come from the Indian line of credit and the rest from the public coffer.
The rail link between Khulna and the country’s second seaport, Mongla, is expected to play a vital role as a transit route to neighbouring countries like India, Nepal and Bhutan.
Once constructed, goods could be carried easily from Mongla to Khuna and other parts of the country, helping reduce transport cost.
The construction of Khulna-Mongla railway line requires at least 1,525 acres of land, said an Economic Relations Division (ERD) official.
According to the project progress report prepared by the ERD almost two months back, the project cost might increase to $288 million from $175 million.
The construction work is expected to start by March next year and the project is scheduled to be completed by September 2018.
Of the 15 projects, only seven have been completed, according to a report.
The seven completed projects, mostly related to procurement of equipment from India, are procurement of double-decker, single-decker AC and articulated buses for Bangladesh Road Transport Corporation, 180 broad gauge (BG) tank wagons and six bogies of brake vans, 50 units of metre gauge (MG) flat wagons and five units of MG brake vans with air brakes for carrying containers, 30 units of BG diesel electric (DE) locomotives, 10 units of BG DE locomotives, 100 units of MG bogies of tank wagons and five units of MG brake vans with air brakes and air brake equipment for carrying aviation fuel, 170 units of MG flat wagons (BFCT) and 11 units of MG bogie brake vans with air brake systems for carrying containers.
The report said 14 projects will be completed within the stipulated time except the construction of Khulna-Mongla port railway line.
The total disbursement of fund by the Indian government till July 8, 2014 under the letter of credit stood at $169.78 million, it said.
Bangladesh Railway earlier planned to construct the track from Shiromoni to Mongla, some 12km north of Khulna Railway Station to avoid construction of rail-bridge over the wide Rupsha River.
The credit line is so far the single largest offer by India to any country. The agreement provides for credit at 1.75% interest rate with a repayment period of 20 years, including a grace period of five years.
The rate of interest was later revised to 1% in May 2012.