The Asian Development Bank (ADB) and the Government of Bangladesh have signed a $300 million loan agreement for the 102 kilometer dual-gauge railway connecting Chittagong and Cox's Bazaar on 21 June 2017, through Ms. Jyotsana Varma, Principal Country Specialist, ADB, and Mr. Kazi Shofiqul Azam, Secretary, Economic Relations Division, Bangladesh.

This is the first tranche of the SASEC Chittagong-Cox's Bazaar Railway Project, a $1.5 billion railway project approved by ADB in September 2016 to promote trade and boost regional connectivity in Bangladesh.

Set for completion in 2022, the Chittagong-Cox's Bazaar Railway will be linked to the Trans-Asian Railway route, connecting Bangladesh to its neighbors including China, Myanmar, and Thailand. Additionally, its dual-gauge line will provide for future direct connectivity toward northeast India, Bhutan, and Nepal through the Indian Railway network. This southeastern railway route will also incorporate cargo handling for freight trains.

This railway line promises to boost Cox's Bazaar's potential as a major tourist destination by reducing the travel time from Dhaka to 6 hours. By road, travel from Dhaka to the coastal city of Cox's Bazaar usually takes around 10 hours.

The project is closely aligned with Bangladesh's Seventh Five Year Plan, and will provide safe, efficient, and environmentally-friendly transport, designed with the elderly, women, children, and people with disabilities in mind.

The SASEC Chittagong-Cox's Bazaar Railway Project was initially endorsed by the SASEC Trade Facilitation and Transport Working Group Meeting held in Tokyo on 26 November 2015.

Related Links:

• Bangladesh: South Asia Subregional Economic Cooperation Chittagong-Cox's Bazar Railway Project, Phase 1 - Tranche 1
• ADB releases $300m for Ctg-C'bazar rail
• ADB to provide $300m loan for Ctg- Cox's Bazar railway
• ADB signs $300 million in loans for Bangladesh rail project