Bogra–Sirajganj Railway Cost Surges 123 Per Cent Amid Decade of Delays

The long-cherished dream of establishing a direct railway link between Bogra and Sirajganj remains suspended in bureaucratic limbo after eight years of inertia. Initially approved on 30 October 2018 with an estimated budget of Tk 5,579.70 crore, the fundamental construction work on the project has yet to begin. Meanwhile, repeated timeline extensions have seen the proposed outlay in the revised Development Project Proposal (DPP) escalate sharply to Tk 12,442.55 crore. This represents a staggering budget increase of Tk 6,862.85 crore, or approximately 123 per cent over the original figure.

Beyond the soaring costs, the project’s financial underpinning has undergone a structural shift. Under the previous Awami League administration, the scheme was designed to rely heavily on Indian Line of Credit (LoC) funding, which accounted for Tk 3,146.59 crore—roughly 56 per cent of the total original budget. Following the political transition in 2024, the interim government formally cancelled the Indian credit arrangement in March 2025. Efforts are now underway to secure alternative funding through the Asian Infrastructure Investment Bank (AIIB).

While political commentary initially focused on funding cancellations as the primary driver of the inflated cost, an examination of project data reveals a far more complex picture. The price hike stems from a compounding mix of chronic implementation delays, surging land acquisition costs, global inflation, currency depreciation, and expanded consultancy fees.

The project entails constructing roughly 87 kilometres of dual-gauge railway track, incorporating loop lines, major bridges over two large rivers, 221 smaller bridges and culverts, rail overpasses, key junctions, and modern station facilities. However, post-approval delays severely stalled progress. Consultancy hiring took until September 2021, and the final structural design was completed only in June 2023, by which time the original completion deadline of June 2023 had already expired. Although the deadline was later extended to June 2026, the newly revised DPP requests a further four-year extension through to 30 June 2031.

Land acquisition figures vividly illustrate the domestic inflationary pressures. Although final route alignments reduced the required land area from 960 acres to 901.77 acres, the acquisition bill rose from Tk 1,921 crore to Tk 2,244.16 crore based on updated estimates from local district administrations. Consequently, land costs expanded by Tk 323.16 crore despite taking a smaller physical footprint. Project officials confirm that funds have already been handed over to the relevant deputy commissioners’ offices to finalize land purchases.

Expenditure on technical consultancies witnessed an even steeper surge, climbing by 240 per cent from an initial allocation of Tk 68.40 crore to Tk 231.71 crore. Officials attribute this Tk 163.31 crore increase to the stringent technical, vetting, and supervisory standards required under the incoming AIIB financing framework.

Macroeconomic shifts over the eight-year hiatus have also taken a heavy toll. Basic construction materials such as steel and cement have experienced marked price increases, alongside a significant devaluation of the Bangladeshi Taka against the US Dollar. According to Project Director Abu Jafor Miah, the 2018 market estimates are entirely unviable under present economic conditions.

A brief controversy over potential route alterations further delayed progress. Proposals had emerged to bypass Bogra town by constructing a 15-kilometre line from Ranirhat junction to Gabtoli, an modification that would have added an estimated Tk 1,500 crore for extra land, underpasses, overpasses, and station modernization. However, on 16 June, the Ministry of Railways presented the matter to Prime Minister Tarique Rahman, who formally rejected the route alteration and directed that the project proceed according to its original alignment. Railway Secretary Md. Fahimul Islam confirmed that the route dispute is settled, ensuring the additional Tk 1,500 crore cost was not added to the current DPP.

With land acquisition nearing completion, the project awaits formal DPP approval to initiate international tendering. Project officials estimate that physical construction will take another nine months to begin once tendering commences. Once completed, the direct dual-gauge line will eliminate lengthy detours, significantly reducing travel time between Bogra, Sirajganj, and the capital, Dhaka. The primary challenge now facing the administration is ensuring that this vital northern infrastructure link is delivered within its newly revised budget without succumbing to further cost overruns.