Payra port rail link: Cost of feasibility study goes up by 37pc

The cost of conducting a feasibility study for establishing rail corridor with Payra port through Barishal has been increased significantly due to delay in starting the study work.

Sources said Bangladesh Railway (BR) has revised the study project with the proposal for cost increase by 37 per cent and time extension by three more years due to its failure to complete the study in 2018. It has already sent the proposal to the railways ministry for approval.

Though the BR selected a joint venture of Korea, Spain and Bangladesh at the end of the project tenure last year, they said, it could not make much progress in meeting its contract deadline by January next.

In such a situation, BR has proposed to increase the project cost from Tk 429.9 million to Tk 587.6 million and complete the feasibility study work along with detailed design and tender document preparation by 2021.

BR signed an agreement with the joint venture of Dowha of Korea, TYPSA of Spain and DDC of Bangladesh in July 2018.

Official sources said the time of the study project until 2018 lapsed as BR had to wait for a long time for a UK-based company with whom it signed a memorandum of understanding in 2016.

The firm named DP Rail came to the country with an investment proposal of US$ 7.0 billion on the recommendation and support of a British MP and British High Commission, but it did not contact the BR after signing of the MoU. It proposed setting up of rail link from Dhaka to Payra Port through Barishal after the feasibility study.

However, officials said the proposed rise in the project cost will also increase the volume of works.

They said initially, the study which was proposed for the project was from Bhanga junction to Payra port through Barishal. "Now BR plans to extend the work by carrying out the feasibility study to establish rail line through Barishal, Jhalakathi and Pirojpur and Jhalakathi-Mathbaria at the request of two local MPs," said an official.

He also said as the Payra port has been extended up to Andharmanik River and Ramnabad channel, the volume of works will also increase.

Besides, the Prime Minister's Office issued a directive to carry out the study with the modality of public-private partnership.

"Though we are late, a wide range of study will help the state-owned rail developer and operator realise the potential of establishing rail link with the country's southern region," said the official.

He said this inclusion will also help the BR implement the PM's directive to bring the entire country under the railway network. She gave the directive during her visit to the railways ministry in 2014.

In 2014, BR took up the technical project and got approval from the Planning Commission in October 2016.