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Railway projects face years of delay, cost overruns: BPPA
BY Insider Desk
August 16, 2025

Nearly half of the tenders under five major Bangladesh Railway projects have seen execution periods extended by 211 to 1,598 days, a government review has found, with no contractors penalised despite repeated deadline breaches.
The Bangladesh Public Procurement Authority (BPPA), under the Implementation Monitoring and Evaluation Division, reviewed 30 tenders worth Tk 90.22 billion and found violations of Public Procurement Rules in evaluation timelines, documentation, and compliance.
Some contracts received up to 12 deadline extensions without liquidated damages.
The review cited missing records, failure to update annual procurement plans, and lack of mandatory internal post-procurement reviews.
It recommended stricter enforcement of timelines, penalties for unjustified delays, wider tender participation, and full adoption of electronic procurement.
One major contract – part of the Dhaka-Tongi and Dhaka-Joydebpur dual-gauge expansion – was awarded to Indian firm AFCONS-KPTL JV for Tk 13.94 billion in 2017.
Originally due in June 2021, only 58% of the work has been completed despite four extensions totalling 1,598 days. Officials now admit the revised June 2026 target is also unlikely.
The SD-1 package of the same project has seen its cost jump from Tk 8.49 billion to Tk 33.43 billion after a 1,386-day extension. The Dohazari–Cox’s Bazar railway project has faced up to 12 extensions in one lot and nine in another.
Transparency International Bangladesh’s Dr Iftekharuzzaman said the findings reflected entrenched collusion inflating costs, with taxpayers bearing the burden. He urged holding violators accountable to curb the misuse of public funds.
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