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Bangladesh,China : US$ 3 Billion rail network in Bangladesh to be build by China Railway
Publish Date : 23-Jul-2016
China Railway Group has received go-ahead from the government of Bangladesh to build a 215 km-long rail link, set to run from the capital Dhaka to Jessore.
The present proposal comprises the construction of 66 major and 244 minor bridges, 14 stations and the procurement of 100 passenger coaches.
A road and rail bridge with a four-lane road on the upper deck and a single railway track running beneath will span the Padma River.
The state-owned China Railway Group was not given the project through open bidding, however was selected by the Chinese government, which will offer the majority of the financial support in the form of soft loans to Bangladesh.
Initially the company required US$ 6.25 billion for the project, with further payments for land acquisition costs, resettlement fees and taxes; following negotiations, however, the cost was decreased to Tk 24,749 crore (around US$ 3.1 billion).
The railway ministry said, The contract price is reasonable and reflects the level of pricing that would have been achieved if the project had been promoted through international competitive bidding as planned earlier.
Some sections of the line are likely to be in use by 2018 counting the Padma River crossing, with construction scheduled for completion by 2022.
Loans from the Chinese government will met the total project cost is Tk 34,989 crore (US$ 4.46 billion), with Tk 24,749 crore.
