Akhaura-Laksam rail project concluded without supplying key equipment worth BDT 1.5 bln

The project was implemented by the CTM Joint Venture, which includes China Railway Engineering Group, Max Infrastructure Limited, and Toma Construction and Company Limited.

The Akhaura-Laksam double-line rail project is crucial for establishing seamless rail connectivity between Dhaka and the port city of Chattogram. This 72-kilometer dual-gauge double-line project was completed by mid-2023. Initially, it included procuring advanced rail equipment across eight categories, valued at around BDT 1.5 billion (at current market rates), which was intended to support automated track installation, swift repairs, and enhanced security. However, despite project completion, these essential pieces of equipment have yet to be received from the contractor. Similarly, the same situation is emerging in the Dohazari-Cox’s Bazar rail project. Contractor companies of these projects continue to benefit from significant concessions, compromising the establishment of a modern, secure rail management system.

In 2016, Bangladesh Railway signed contracts with a Chinese contractor and two local companies, Max and Toma Constructions, to construct a dual-gauge rail line and convert the existing line to dual-gauge under the Akhaura-Laksam project. The project was jointly funded by the Asian Development Bank (ADB), the European Investment Bank (EIB), and the Government of Bangladesh. The project was extended several times, officially concluding in December 2023. It is currently under the Defects Liability Period (DLP).

According to the contract, Bangladesh Railway was to receive modern, automated maintenance equipment from the contractor as part of efforts to modernize rail maintenance. These machines include a large tamping machine, a track car with two trailers, a road-rail vehicle, two ballast tamping machines, and an inspection vehicle—amounting to approximately 25 types of equipment. These items, approved by the consultant and specified in the tender documents for the project, are now valued at BDT 1.4-1.5 billion on the international market. Despite the project’s completion, the railway has not yet received these pieces of machinery.

Project documents reveal that contractor CTM JV promised to deliver over 100 types of equipment, including sleepers and workshop equipment, across 20 categories during tender participation. The current market price for the large tamping machine alone exceeds BDT 600 million, while the road-rail vehicle is priced at BDT 70-100 million, and the track car with trailers (including a lifting crane) is valued at BDT 400-500 million. Other equipment, such as the inspection vehicle, is worth BDT 20 million; the two ballast tamping machines are valued at BDT 80 million, and the ultrasonic rail flaw detection system is priced at BDT 20 million. Furthermore, BDT 125 million worth of equipment in the PS category was not supplied.

The project was implemented by the CTM Joint Venture, which includes China Railway Engineering Group, Max Infrastructure Limited, and Toma Construction and Company Limited. Allegedly, despite project delays, these contractors avoided additional expenses by omitting the equipment and securing special concessions.

When asked about the matter, Railways Ministry Adviser Fouzul Kabir Khan told Bonik Barta, “I have only recently taken charge at the Railways Ministry. I haven’t yet had the opportunity to gather information on all railway matters fully. If the contractor was indeed supposed to supply the equipment and has not, the matter will be reviewed.”

According to the Railway Engineering Department, the Executive Committee of the National Economic Council (ECNEC) approved the Akhaura-Laksam rail line project in 2014, aiming to construct a rail line from Akhaura to Laksam. Although construction began in 2016 and was initially set for completion by June 2020, the project was extended until June 2021. However, in September 2020, construction on Kasba railway station, its double-line track, and the Salda rail bridge was halted following objections from India’s Border Security Force (BSF), citing that the work was within 150 yards of the India-Bangladesh zero line.

Project officials explained that infrastructure development projects typically include conditions for procuring maintenance equipment and providing operator training to facilitate the continuous adoption of modern technology in train operations and maintenance. Under recent railway megaprojects, the procurement of advanced equipment was supposed to be part of the plan. Both the railway authority and consulting firms approved these purchases. However, despite plans to provide modern equipment for the Akhaura-Laksam project, the contractor was issued a performance certificate without supplying the equipment.

When contacted, Akhaura-Laksam Dual-Gauge Double-Line Project Director Tanvirul Islam told Bonik Barta, “The project was completed more than a year ago and is currently within the Defects Liability Period. The senior authorities in the railway department are aware of the procurement or other work that was part of the project. I have no information on this matter. If the contractor failed to supply the equipment as per the contract, legal action will be taken against them.”

A similar situation is unfolding in the Dohazari-Cox’s Bazar rail project. Despite nearing completion, the contractor and project implementation authority have yet to provide the equipment or begin the necessary training and auxiliary work.

The 102.831-kilometer-long Dohazari-Cox’s Bazar railway, one of Bangladesh Railway’s most expensive projects, is being built in two phases. The Dohazari to Chakaria section, contracted at nearly BDT 26.88 billion, is being executed by Chinese contractor China Railway Engineering Corporation (CREC) alongside local partner Toma Construction Company Limited. Meanwhile, the Dohazari to Cox’s Bazar section, contracted at over BDT 35.02 billion, is being managed by China Civil Engineering Construction Corporation (CCECC) and local partner Max Infrastructure Company Limited.

Speaking anonymously, an official from the Railway’s Eastern Division told Bonik Barta, “The equipment necessary for rail operations is procured through projects. This is the standard practice for any mass transport authority worldwide. While previous railway projects were implemented following this approach, the railway has been deceived in the Laksam-Akhaura double line and Dohazari-Cox’s Bazar projects.”

Multiple attempts to reach Dohazari-Cox’s Bazar Project Director Mohammad Suboktagin for comments on this issue were unsuccessful.

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