Seven road and railway projects, financed by China and India, remain stalled due to multiple reasons, including delay in fund release, complexity over land acquisition, and political instability in the country in July and August.
Despite expiry of their deadlines, two road and five railway projects, undertaken by the government involving about Tk 30,000 crore, are still incomplete. A review shows that most of these projects have not been completed yet mainly due to delay in fund release. Additionally, extension of the project tenure has pushed up their costs significantly.
Work on the 13.5-kilometre expressway from Rampura to Demra’s Shimrail started on January 1, 2020. The most expensive road project, taken up under public-private partnership (PPP) initiative, has an estimated cost of Tk 244 crore per kilometre, the highest rate so far.
Sources said that the government is providing Tk 1,209 crore to this five-year project, but it is not progressing as planned. The project was scheduled for completion in 2026.
According to sources, Roads and Highways Department signed a contract with the Chinese consortium of China Communications Construction Company Limited (CCCC) and China Road and Bridge Corporation (CRBC) on January 9, 2022, for building the expressway. The project cost is estimated at Tk 3,304 crore, with China financing infrastructure and the government covering land acquisition costs.
Reports say that the Chinese contractor threatened to pull out of the project unless the exchange rate for dollar was adjusted as the currency’s value against taka has surged. Bangladesh has already spent Tk 356 crore on the project, and the government would suffer
financial losses if the project is scrapped.
Moreover, the Dhaka Elevated Expressway, first of its kind in the country, faces financial and operational challenges. There are concerns about whether private investors will be able to recover their investments within the stipulated timeframe. There are also doubts about the project’s completion within its deadline.
An agreement to build the expressway was signed on January 19, 2011. Issues with land acquisition, design complications, and funding delays have hindered progress.
After 13 years, work on only 11 kilometres (75 per cent of the work) has been completed, and it was partially opened on September 2, 2023. With only nine months remaining in the current term, experts say that remaining 25 per cent work is unlikely to be completed within the stipulated time. The project might see time and cost overruns, they added.
he project taken up under public-private partnership initiative includes three partners: Italian-Thai Development Public Company (Thailand), Shandong International Economic and Technical Operation Group (China), and Sino-hydro Corporation (China), holding 51 per cent, 34 per cent, and 15 per cent share respectively. Bangladesh Bridge Authority (BBA) is overseeing this expressway.
Insiders report that the Appellate Division of the Supreme Court rejected a High Court status quo order regarding transfer of shares between the project’ investors on September 1, removing legal barriers. However, even after a month, the situation remains unchanged.
Project Director AHM Shakhawat Akhter in a letter raised concerns, saying, “Minimal manpower has been deployed at the site for the past eight months, and no significant work has been done in the last three months. Even after resolving land issues, the construction work on Moghbazar-Malibagh-Khilgaon and other areas has not started yet. Such delays are unacceptable.”
Five railway projects funded by India are also moving at a snail’s pace. Bangladesh Railway (BR) reports that completion of these projects seems uncertain.
Spokesperson for India’s Ministry of External Affairs Randhir Jaiswal said that work on the projects in Bangladesh had been halted due to concerns about law and order. Once stability is restored, work is expected to resume in consultation with the interim government.
One of these projects, the Bogura-Sirajganj dual-gauge rail line, has been taken up at a cost of Tk 5,579 crore, with India providing Tk 3,146 crore and Bangladesh funding the remaining Tk 2,433 crore. Despite multiple deadline extensions, progress remains below 10 per cent, even with the latest deadline extended to June 2026.
BR officials said that disbursement of funds under India’s third line of credit (LoC) remain pending, stalling progress. Despite multiple requests, India has yet to respond to fund release.
Sources say that India-funded projects often face delays in fund release and India sets conditions at every stage. There is a requirement to hire Indian contractors and consultants, which stakeholders believe inflates project costs.
Other Indian-funded projects include the third and fourth dual-gauge lines in the Dhaka-Tongi section and the dual-gauge double line in the Tongi-Joydebpur section. Initiated in July 2012, these projects have been continuing for over a decade.
The initial cost was Tk 848.60 crore, later revised to Tk 3,343.55 crore, with India financing Tk 2,821 crore and Bangladesh covering Tk 521 crore. However, only 36 per cent of the work has been completed.
Project Director Nazneen Ara Keya informed the Bangladesh Post that project work has slowed for a year due to approval complications.
Another project under Indian loans is the double line railway in the Khulna-Darshana Junction section. In the past six and a half years, only 4 per cent of this project has been completed. Project estimates place costs at Tk 3,506 crore, with Tk 2,689 crore from India in loans and the remaining Tk 816 crore from the Bangladesh government.
Project Director Monirul Islam Ferozi mentioned that tender preparations for contractor appointments are underway.
The Parbatipur-Kaunia dual-gauge rail line has an estimated cost of Tk 1,683 crore, with Tk 1,376 crore funded by India. Despite the six-year project duration ending in 2023, feasibility studies are still ongoing, expected to conclude in December.
The Kulaura-Shahbazpur railway restoration project, funded by India, remains incomplete despite its extension for the fourth time. The current extension ends in December 2024, with only 45 per cent work completed.
Project Director Md Sultan Ali told the Bangladesh Post that only Bangladeshi workers are currently working on the project, as Indian officials have gone back to India.
Prof Dr Md Shamsul Haque of Department of Civil Engineering at Bangladesh University of Engineering and Technology (BUET) said that these projects do not protect the country’s interests. Instead, they serve the interests of those who undertake and fund the projects.
He also said the conditions of India’s line of credit (LOC) should have been closed long ago as they contradict the sovereignty of the country.
He further said that since the current government is implementing reforms with long-term goals to achieve a vision for Bangladesh, taking feedback from field-level experiences would ensure a better future path.
When asked about the railway projects, Bangladesh Railway’s Director General, Sardar Shahadat Ali, told the Bangladesh Post that they have informed the secretary. The projects will be reviewed, and the higher authorities will be informed about necessary steps.
Roads and Railways Adviser Fouzul Kabir Khan said, “During a meeting with the Indian high commissioner, we discussed these issues. Some people working on the projects have returned to India. They sought assurance about security from us. Some projects are delayed due to pending funds from them. They assured us that they would expedite the release of funds.”
Ongoing projects under Indian LoC will be completed, but no projects will be undertaken in future without open tender, he added.
