Japan has pledged $630 million to revive Bangladesh’s long-delayed Joydebpur-Ishwardi double-line railway project, marking a significant boost for the country’s rail infrastructure.

The funding, confirmed by the Japan International Cooperation Agency (JICA) on Friday in Dhaka, is part of the second batch of Japan’s 46th Official Development Assistance (ODA) loan package.

The agreement was signed by Shahriar Kader Siddiky, Secretary of the Economic Relations Division, and ICHIGUCHI Tomohide, JICA’s Chief Representative in Bangladesh.

The 162km dual-gauge project—linking the capital with northern and north-western regions—was initially planned with Chinese funding but faced setbacks when China withdrew in 2021.

Japan stepped in with financial and technical assistance, including a previous $32 million loan for engineering services.

The project’s cost, originally estimated at Tk 80 billion in 2015, has since risen to Tk 142.5 billion. Construction is now scheduled to begin in early 2026 and conclude by 2029.

The new rail line will include 25km of loop and siding tracks, 11km of reconstructed lines, and three new stations. Land acquisition of 56 acres is planned.

The loan carries a 2% interest rate for construction, 0.65% for consultancy, and a 0.20% front-end fee, repayable over 30 years with a 10-year grace period.

JICA is already supporting a 4.8km dual-gauge railway bridge over the Jamuna River, enhancing connectivity to Bangladesh’s northwest.