China Exim Bank pledges 752.8 million USD for Joydevpur-Ishwardi Dual-Gauge Railway

Project narrative

In 2015, Bangladesh began planning the construction of a double line between Joydevpur (sometimes spelled Joydebpur) and Ishwardi (sometimes spelled Ishurdi). Under the project, around 162.023 kilometers of the existing single line from Joydevpur to Ishwardi out of the 174 kilometers route will be transformed into a dual gauge double line. On November 11, 2017, China Exim Bank signed an agreement with the Government of Bangladesh to support the financing of this project. China Civil Engineering Construction Cooperation was selected for the construction of the dual-gauge double-line rail track from Joydevpur to Ishwardi. In November 2018, the 13th meeting of the Executive Committee of the National Economic Council (ECNEC) of the Government of Bangladesh headed by Prime Minister Sheikh Hasina approved the construction of this dual gauge railway. Based on information from IJGlobal Project Finance & Infrastructure Journal, the project's debt-equity ratio is 80:20. China EXIM Bank is funding the debt portion amounting to USD 752.79 million, and this loan from China Exim Bank has an interest rate of 2%, a 5-year grace period, and a maturity of 20 years. The Government of Bangladesh is funding the equity portion amounting to USD 188.21 million. For the purpose of this project, only the USD 752.79 million of funding from China Exim Bank has been recorded. Based on a report published in 2023, it appears that China pulled its financing of the project in 2021, and that Bangladesh has proceeded with other sources of funding instead. It does not appear that any commitment of funds was made prior to the removal of Chinese financing.