Chattogram is poised to become the first Bangladeshi city with a monorail system, following the signing of a Memorandum of Understanding (MoU) on Sunday aimed at easing chronic traffic congestion and modernising urban transit.

According to UNB, the agreement was signed at the World Trade Centre in Chattogram between Chattogram City Corporation (CCC) and a German-Egyptian joint venture—Orascom Group and Arab Contractors Group.

The project, estimated to cost around Tk 25,000 crore, will be fully funded by the implementing firms. After securing approval from the Executive Committee of the National Economic Council (ECNEC), a feasibility study will commence, and construction is expected to take about five years.

“This is a timely and transformative step,” said CCC Mayor Shahadat Hossain. “Chattogram is plagued by traffic jams—we need a fast, efficient solution like the monorail to restore order and improve mobility.”

The city had earlier explored a 54.5-kilometre metro rail system in 2019, but the plan was dropped due to geographic and logistical challenges. CCC later opted for the monorail, which experts say is a cost-effective, space-efficient alternative, requiring 40% less expenditure than metro rail systems and suitable for existing urban layouts.

The monorail, running on a single rail, promises to significantly upgrade the public transport system in Bangladesh’s commercial hub and South Asia’s key gateway.

The MoU signing ceremony was attended by top officials, business leaders, and civil society representatives.