DHAKA, 01 November 2021, (TON): After failing to secure Chinese loans for two major railway projects, the government decided to look for alternative sources.

The projects were taken to improve railway connectivity between the capital and north-east and north-west regions.

Officials said “the Railways Ministry wrote to the Economic Relations Division (ERD) asking it to search for alternative fund sources following the directives of Prime Minister Sheikh Hasina.”

The two projects are the Tk 14,250.61-crore Joydebpur-Ishwardi double-line project and Tk 16,104.45-crore Akhaura-Sylhet dual gauge project.

Bangladesh Railway's Director General Dhirendra Nath Mazumder confirmed that the Prime Minister's Office asked the authorities concerned to find alternative sources. He declined to give any further details.

China last month rejected the Bangladesh government's request to re-evaluate its decision to not fund the Joydebpur-Ishwardi project citing "lack of in-depth preliminary work and insufficient feasibility study.”

Besides, the Chinese contractors for these projects have already informed Bangladesh Railway (BR) that they would not work for the projects after the PMO slashed contract prices.

BR officials said “the Joydebpur-Mymensingh-Jamalpur dual gauge conversion project is likely to face uncertainty as the PMO also gave directives to slash its cost.”

They added “the contractor may not agree to work under a downsized cost.”