Bangladesh has secured a USD 641 million loan from the Japan International Cooperation Agency (JICA) to fund a vital railway infrastructure project aimed at boosting connectivity, trade, and regional development. The financing agreement reflects the continued partnership between Bangladesh and Japan in advancing sustainable transport and economic growth. The funding will aid in developing the railway corridor that connects Dhaka, Chattogram, and Coxโs Bazar. This project involves enhancing current tracks, creating new railway lines, and updating signaling and safety technologies. Once completed, the project is expected to dramatically improve passenger and freight transport capacity, reducing travel time and congestion along one of the countryโs most critical economic routes. This initiative is part of the broader Bay of Bengal Industrial Growth Belt (BIG-B) strategy, a collaborative effort between Bangladesh and Japan to strengthen industrial development through transport infrastructure. The railway upgrades will connect key economic zones, ports, and tourism destinations, enhancing both domestic mobility and international trade potential. Transport and infrastructure officials say the project aligns with the governmentโs long-term vision of developing a multimodal transport system that supports inclusive growth. The DhakaโCoxโs Bazar route, in particular, is expected to benefit millions of people, including local businesses, tourists, and exporters who rely on efficient logistics. The JICA loan will be disbursed under favorable terms, with a low interest rate and an extended repayment period, enabling Bangladesh to manage its development financing sustainably. This financial assistance also comes with technical expertise from Japan, ensuring the project is delivered with high standards of safety, environmental responsibility, and operational efficiency. Stakeholders believe the project will also create thousands of jobs during construction and future operations, supporting the national economy and local communities. In addition, improved railway access to Coxโs Bazar is expected to give a significant boost to the tourism sector, which has strong growth potential. The railway project is one of several infrastructure investments being prioritized to support Bangladeshโs transition to a higher-income economy. It complements other Japanese-funded initiatives, including metro rail projects, port expansions, and power sector improvements. As Bangladesh continues to build modern infrastructure with international cooperation, projects like this serve as a foundation for stronger economic resilience, regional integration, and sustainable development.
