Drastic cut in costs of three railway megaprojects likely

Massive fund cuts are likely from three ongoing railway megaprojects as the incumbent interim government finds their bloated estimation done by the deposed Sheikh Hasina administration, officials said Tuesday.

An amount of some Tk 91.00 billion is likely to be slashed from two of the projects and the estimation of another is being scrutinized, they said.

The Ministry of Railway (MoR) under the new custodian has already asked the Bangladesh Railway (BR) to rationalise the project estimation of the ongoing ones through trimming unusual costs from unnecessary components, said a ministry official.

"We have already asked the BR to review their ongoing projects and rationalize the costs. We hope we will get a picture within shorter period about our ongoing projects," Railway Secretary Abdul Baki told the FE.

The state-run rail-service provider is likely to cut about Tk 66 billion from the Dohazari-Rami-Cox's Bazar-Ghundhum railway project while some Tk 25 billion from the Padma rail-link construction project, BR officials said.

They are working to cut out the unnecessary components and the costs from the Japan-funded Jamuna rail-bridge construction project, too, they said.

A senior MoR official said the Sheikh Hasina government undertook some unnecessary projects and some were taken with staggering costs.

"We have started reviewing our ongoing projects. We will rationalize their costs and scope of works," says a BR official about the rightsizing of public-works projects in the changed political milieus of Bangladesh after the August student-people uprising.

The funds will mainly be cut from Tk180.34-billion-cost Dohazari-Cox's Bazar-Ramu-Ghundhum project as the BR has decided not to construct Ramu- to -Ghundum part of the proposed railway line.

Out of total Tk66 billion proposed cut from the Asian Development Bank (ADB)-funded rail-track project, some Tk 25.58 billion will be saved for not building the Ramu-Ghundum part while the remaining funds will be slashed from different other components of the project, said the MoR official.

The railway-service provider has already completed the Dohazar-Cox's Bazar-Ramu railway track-setting project. But the project timeline has already been extended up to June 2025.

The Railway has suspended work on the Ramu-Ghundhum portion of the Dohazari-Cox's Bazar rail link as getting any economic benefit through it amid the ongoing Rohingya crisis and absence of connections in the Myanmar side is uncertain, officials said.

No economic benefit will come from the Ramu-Ghundhum railway line as Bangladesh's relationship with Myanmar is not so good, they said.

According to the project office, they had cut some 28.75km between Ramu and Ghundhum under the project.

The BR started implementing the project in June 2010 to connect Cox's Bazar with the rail network along with the Trans-Asian Railway corridor. The ADB is lending Tk131.15 billion for the Tk180.34-billion project.

Besides, the BR is likely to slash Tk 25 billion from the China-funded Tk 392.47-billion -cost Padma rail- link project.

"While examining, we have found that the BR has kept aside more than Tk10 million for constructing Bhanga station alone which seems to be ambitious. So, we have asked the BR to review cost of all the components of the project," said another MoR official.

Meanwhile, the project was revised within two years as it was taken up at Tk 349.89 -billion cost. But the cost was raised to Tk392.46 billion and the deadline was extended up to June 2025 from the original timeline to June 2022.

The BR is now examining the Japan-funded ongoing Tk 167.81-billion Jamuna railway -link project.

The Sheikh Hasina government undertook the Jamuna Railway Bridge project in December 2016 at a cost of Tk97.34 billion. Later, it has been revised ramping up the cost to Tk 167.81 billion, following a two-year extension.

The MoR official said, "We are also reviewing all or ongoing 29 projects along with three mega ones."

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