Rail Electrification Project for N’ganj-Dhaka-Joydebpur Moves Forward

Bangla Press Desk:  Bangladesh Railway's long-delayed plan to electrify its tracks is finally moving forward, with the country's first electric traction project on the Narayanganj-Dhaka-Joydebpur corridor likely to receive approval soon.

Officials said the 50-kilometre project has been sent to the Planning Commission for approval after completion of a feasibility study and its latest review.

The Tk 38.22 billion project proposal may be placed before the Executive Committee of the National Economic Council (ECNEC) anytime, according to a Railway official familiar with the matter.

Bangladesh Railway completed the feasibility study last year, nearly a decade after the electrification initiative was first taken in 2015.

The study proposed installing a 25kV AC overhead catenary system (OCS), traction substations and related power-supply infrastructure, as well as procuring electric multiple units (EMUs), setting up a modern EMU maintenance workshop and developing supporting railway infrastructure and operational management systems.

The estimated project cost of Tk 38.22 billion, equivalent to about $311.41 million, was recently reviewed by potential development partners, resulting in recommendations on several issues that could push up the cost.

The European Investment Bank (EIB) and the Asian Development Bank (ADB) have assured financing for the project and reviewed the feasibility study conducted by Turkish consultancy firm TUMAS.

The EIB review identified potential inconsistencies in provisions for customs duties, VAT and advance income tax, which could require revisions to the project cost.

It also found that the feasibility study did not adequately assess the traffic model, potential passenger modal shifts or implementation risks when calculating the project's financial and economic internal rates of return.

However, the review found that estimates for civil works, systems, rolling stock, land acquisition and consultancy were broadly in line with actual requirements, including physical and price contingencies.

The Railway official said the development project proposal was submitted in its original form because there was no scope to revise the estimated cost before completion of the procurement process.

Bangladesh Railway first took up the electrification initiative in 2015 to shift from diesel-powered trains to electric traction. The move is intended to reduce noise, greenhouse gas emissions and urban air pollution, while improving energy efficiency and climate resilience.

The initiative has been shelved at least six times since then, with the Narayanganj-Dhaka-Joydebpur route eventually selected as the first corridor for electrification.

The Planning Commission approved Tk 150 million for the feasibility study. Bangladesh Railway eventually signed a contract with Turkish consultant TUMAS on July 16, 2023 to conduct the study, with a plan to explore electrification of the entire Dhaka-Chattogram rail corridor.