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Overview

Chinese Government pledges to provide a loan for the construction of the $3.03 billion USD Dhaka-Chittagong Railway

Commitment Year2016Country of ActivityBangladeshDirect Recipient Country of IncorporationBangladeshSectorTransport And StorageFlow TypeLoan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2016

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

Government Agencies

  • Unspecified Chinese Government Institution

Receiving agencies

Government Agencies

  • Government of Bangladesh

Implementing agencies

State-owned companies

  • Bangladesh Railway
  • China Railway Eryuan Engineering Group Co., Ltd.

Loan desecription

Chinese Government pledges to provide a loan for the construction of the $3.03 billion USD Dhaka-Chittagong Railway

Interest typeUnknown

Narrative

Full Description

Project narrative

On August 11, 2014, Bangladesh's Ministry of Railways and China Railway Eryuan Engineering Group Co., Ltd. signed a Memorandum of Understanding (MoU) on the construction of the Dhaka-Chittagong railway. The MoU was signed with the expectation that the 231.90 kilometer long double track and standard gauge Dhaka-Chittagong Railway would be funded by the Chinese Government. The new route would shorten the distance between the two cities by 90 kilometers and reduce the traveling time from four to three hours. The train was planned to run at 160 kilometers per hour and both haul passengers and cargo. The project was expected to take three years to complete after the start of implementation. The project was expected to cost $3.03 billion USD. In October 2016, the Chinese Government pledged to provide a loan for the project. However, it appears the loan was never formally committed to, and that the project fell through, as on May 31, 2018, a contract between the China Railway Design Group Ltd., Mazumder Enterprise, and Bangladesh Railways signed a contract for a feasibility study and detailed design for a high-speed railway between Dhaka-Chittagong.