The European Investment Bank (EIB) is lending EUR 135 million to the Government of Bangladesh to further improve the country’s railways.
The EUR 135 million loan will serve to finance the construction of a second track and upgrading of the existing track along with the installation of modern signaling equipment on the 72 km section between Laksam and Akhaura in eastern central Bangladesh. The project is part of a broader programme to upgrade, by 2020, the whole 321 km rail corridor between the capital Dhaka and Chittagong, the second city and main seaport, and will also facilitate the rail connection of landlocked Bhutan, Nepal and the north-east states of India with Chittagong port.
The total project cost is approximately EUR 555 million. The Asian Development Bank will co-finance the project to the tune of EUR 332 million while the Government of Bangladesh will provide EUR 88 million. The project will be executed by Bangladesh Railways and is expected to be completed by 2022.
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