Bogura-Sirajganj Rail Project Needs Financial Clarity

The Bogura-Sirajganj railway project has run into another setback, with its estimated cost jumping by Tk4,667 crore. According to a recent report in this newspaper, project officials have raised the estimate from Tk5,579.70 crore to Tk10,242 crore in a revised Development Project Proposal, which the Planning Commission may place before the Executive Committee of the National Economic Council (ECNEC). Such a sharp increase naturally raises questions about how the project will be financed. We believe the authorities should answer those questions before approving the revised proposal. After years of delay, the railway needs more than a new estimate. It needs a firm financial plan.

The concern becomes clearer when we look at the project’s history. The government approved it in October 2018 and initially set June 2023 as the completion date. That deadline was later extended to June 2026. Now, the authorities have proposed June 30, 2031. They have attributed the higher cost to changes in project scope, increased land acquisition costs, rising construction material prices and exchange-rate movements. At the same time, the original financing arrangement has changed. India had initially agreed to provide a Tk3,146.59 crore loan but withdrew from the arrangement after the change of government in August 2024. The Asian Infrastructure Investment Bank has since emerged as a potential financing partner. However, a potential lender is not the same as secured financing. The government needs to settle this matter before taking the project forward.

That is particularly important because the railway has a strong economic rationale. The proposed 87-km dual-gauge line could reduce the existing rail distance between Bogura and Sirajganj by around 114km and cut travel time by nearly three hours. It could make passenger travel easier while helping farmers, traders and industries move goods and raw materials more efficiently. Better rail connectivity could also support economic activity across northern Bangladesh. But these benefits will mean little if funding uncertainty causes further delays. Each additional year can push up land and construction costs, making the final bill even higher. Thus, the authorities must ensure that the financial plan can support the work through completion.

Before approving the revised proposal, therefore, the government should carefully check whether the new estimate is realistic and whether every change in scope is necessary and properly justified. More importantly, it should finalise the financing arrangement and ensure that funds remain available throughout implementation. Competitive procurement can help control spending, while clear milestones can make it easier to identify and address delays. Regular public updates on expenditure and progress would also improve accountability.

We recognise the potential of the Bogura-Sirajganj railway to improve connectivity and strengthen the regional economy. That potential, nevertheless, depends on sound planning and disciplined implementation. The authorities should now provide a credible financial and implementation plan and stick to it. After years of waiting, people in the region deserve to see this long-promised railway move from repeated revisions to actual completion.