The Bangladesh Railway (BR) will build a multipurpose commercial building near Chattogram Rail Station under public-private partnership (PPP) initiative as part of moves to salvage it from recurring losses.
The commercial building on 0.42 acres of land will have a shopping mall, hotel, restaurant, rest-houses, cinema hall/multiplex, convention centre, exhibition centre, and apartments.
Sources said the loss-making state rail-operator will earn money from the building for the next 40 years after completion of its construction in four years.
The BR will sign a concessionaire agreement in this connection with the private partners concerned at Rail Bhaban in the city today (Tuesday) in presence of Railway Minister Nurul Islam Sujon.
Epic Properties Limited and Bestway Properties Management Ltd are the private partner and project company respectively.
Project Director Mohammad Ahsan Jaber told the FE that the Tk 452-million-cost project has been taken as part of the government's move to increase railway sector's contribution to the GDP (gross domestic product)
With this kind of project, the BR will also improve efficiency of land management, and provide better service to commuters.
"As part of the moves to increase earning and contribution to GDP as well as to ensure better land management, the BR has so far taken 12 such projects," he added.
According to the project information, design, build, finance, operate and transfer model of PPP has been followed in the building project.
As per the financial deal, the BR has already received Tk 160 million as upfront premium and Tk 150 million as project development fees.
After the first three years, the agency will receive premium from the private partner on various percentage basis until the end of the contract, and will get total ownership of the building afterwards.
The building area will be 40,000 square-feet, and the BR's 1,000 square feet adjacent land has been allowed to use during the construction period.
The BR invited tender for the multipurpose commercial building in April 2018, and selected the concessionaire through two-envelop system.
The Cabinet Committee on Economic Affairs approved the agreement in June 2019.