Bangladesh Railway
Construction of Broad Gauge (BG) Rail Line from Bhanga to Payra Port and Kuakata via Barishal
Project Cost:
Debt : Equity Ratio :
0.77 : 0.23
Operation Date:
June 2029
Work Period:
7 years
Payback Period:
30 years
Design Life:
100 years
1. Project Assets 4928.96 million USD
2. EPC/ Supplier/ Implementing authority Bangladesh Railway
3. Project/ SPV/ Company ownership structure N/A
4. Location, area, size Faridpur, Gopalgonj, Madaripur, Barishal, Jhalokathi, Borguna
    and Patuakhali District of Bangladesh.
    Total Length: 214.91 km
    Bridges and Culverts: 486 nos.
    No. of Stations: 19 nos.
    Signalling: CBI
5. Project size/ capacity Total Cost: 4928.96 million USD
    Line capacity of this section is 67 trains/day on both ways
    Forecasted rail passenger-km by 2029-30: 3045.7 million
    Forecasted rail passenger-km by 2058-59: 12665.3 million
    Forecasted freight traffic in ton-km by 2029-30: 2661.9 million
    Forecasted freight traffic in ton-km by 2058-59: 6456.2 million
6. Implementation schedule, commercial operation July 2022 to June 2029
7. Regulatory body, other rules/ permissions MoR, ERD, Planning Commission, MoF etc.

  8. Economic, social, environment and development impact

Bangladesh will get the following benefits:

    • The Government of Bangladesh is constructing multipurpose bridge over the river Padma with a view to connect Dhaka with south-west and southern part of the country.
    • Bangladesh railway has undertaken a project named “Padma Bridge Rail link Project” to construct a Broad Gauge (BG) rail line using the Padma Multipurpose Bridge from Dhaka to Jashore via Bhanga. Under the project construction of rail line is going on full swing.
    • People all over the Bangladesh will get the benefit of speedy, safe, low cost and comfortable transportation system for connecting Madaripur, Barishal, Jhalokati, Barguna, Patukhali districts, Kuakata and Payra Port to railway network.
    • Transportation cost of containers and goods to be send from Payra Port will be reduced considerably. Moreover, agricultural products and fishes produced in this region can be easily transported and marketed which will help the farmers and fishermen to get fair price for their commodities; that mean it will support to poverty reduction. All these in turn will help sustainable improvement of the socio-economic condition of the local people.
    • Bangladesh Railway will be able to expand railway network and provide safe, comfortable, economically cost-effective communication system in the new areas. Consequently, earning of BR will be increased.
    • The tourism and fish trading will be expanded.
    • Kuakata is a promising tourist spot as there is a sea beach. Day by day it becomes attractive to tourist. But it is not connected with the railway network. Under the project the railway line will also be extended to Kuakata.
    • Environmental damages would be reduced through the reduction of air pollution emissions caused by roadway traffics and accidental deaths of water ways and roadways will be reduced remarkably. The proposed rail link will promote export-import activities as well as domestic trade in Bangladesh resulting increase in national GDP.
9. Pro-forma financial model N/A      
10. Project cost compact breakdown        
  Sl. No Item description Estimated Cost (million USD) Total
  1 Land Acquisition and Resettlement 1021.20 0.00 1021.20
  2 Earth works 0.00 926.85 926.85
  3 Track Works 0.00 290.73 290.73
  4 Signalling & Telecom Works 0.00 60.49 60.49
  5 Bridge & Culverts 0.00 1463.83 1463.83
  6 Stations & Buildings 0.00 170.79 170.79
  7 General Requirements 0.00 76.66 76.66
  8 Environment Safeguard 0.00 3.37 3.37
  9 Day Works 0.00 0.71 0.71
  10 Taxes and Other Costs 7.80 292.48 300.27
  11 Consultancy 0.00 165.97 165.97
    Sub-Total1028.99 3451.88 4480.88  
  12 Physical Contingency 2% 20.58 69.04 89.62
  13 Price Contingency 8% 82.32 276.15 358.47
    Grand Total 1131.89 3797.07 4928.96

  11. Financing Structure and source

Investment through foreign funding

12. Any other key highlights

Economic Analysis at 12% discount rate: EIRR: 15.84%

NPV: 1029.76 million USD

Benefit Cost Ratio: 1.43

Financial Analysis at 12% discount rate: FIRR: 13.74%

Benefit Cost Ratio: 1.23

NPV: 740.26 million US

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