A critical infrastructure initiative designed to connect Bogra and Sirajganj via a direct dual-gauge railway line has seen its projected budget skyrocket following eight years of administrative inertia. Originally sanctioned on 30 October 2018 with an estimated cost of Tk 5,579.70 crore, the project’s revised Development Project Proposal (DPP) now stands at Tk 12,442.55 crore. This represents an unprecedented budget surge of Tk 6,862.85 crore, or approximately 123 per cent above initial projections, even before physical construction has officially commenced.
The financial restructuring comes alongside a major transition in the scheme’s funding mechanism. Under the former Awami League administration, the project relied heavily on an Indian Line of Credit (LoC), which was slated to cover Tk 3,146.59 crore, or roughly 56 per cent of the original outlay. Following political shifts in 2024, the interim administration formally terminated the Indian credit facility in March 2025. Authorities are currently negotiating alternative financing through the Asian Infrastructure Investment Bank (AIIB).
Although political commentary initially linked the cost inflation primarily to the change in donor funding, official project data highlights a broader combination of economic and operational factors:
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Implementation Delays: The project’s original completion target of June 2023 elapsed before structural designs were finalized in June 2023. While the deadline was initially extended to June 2026, the revised DPP pushes completion to 30 June 2031, pushing the timeline 13 years past approval.
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Escalating Land Values: Although refined alignments reduced the land requirement from 960 acres to 901.77 acres, land acquisition costs rose from Tk 1,921 crore to Tk 2,244.16 crore—an increase of Tk 323.16 crore driven by local property price inflation.
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Increased Consultancy Outlays: Technical consultancy fees rose by 240 per cent, from Tk 68.40 crore to Tk 231.71 crore. Officials attribute this Tk 163.31 crore surge to complex engineering, design verification, and oversight requirements under AIIB parameters.
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Macroeconomic Pressures: Project Director Abu Jafor Miah noted that 2018 baseline estimates are no longer feasible due to substantial price increases in core construction materials like steel and cement, compounded by significant foreign exchange adjustments.
A secondary debate regarding potential route alterations was recently resolved. Proposals to bypass Bogra town via a new 15-kilometre section from Ranirhat junction to Gabtoli—which would have added an estimated Tk 1,500 crore—were officially set aside. On 16 June, Prime Minister Tarique Rahman rejected the detour, instructing the Ministry of Railways to adhere strictly to the original route alignment. Railway Secretary Md. Fahimul Islam confirmed the alignment remains unchanged, keeping the Tk 1,500 crore expansion off the revised budget.
The scope of work includes laying approximately 87 kilometres of dual-gauge track, constructing major bridges across two major rivers, building 221 smaller bridges and culverts, and establishing rail overpasses and modernised station junctions. With land acquisition funds already disbursed to local district administrations, physical construction is anticipated to begin within nine months of formal DPP approval and tender finalisation. Once operational, the direct rail corridor will bypass existing lengthy detours, streamlining transit between northern districts and Dhaka.
