JICA signs loan agreement to fund construction of key Gazipur–Pabna railway line

Bangladesh Signs Loan Agreement with JICA for Gazipur–Pabna Dual Gauge Railway

The Government of Bangladesh signed a loan agreement on Friday with the Japan International Cooperation Agency (JICA) for the construction of a dual gauge double-line railway between Joydebpur in Gazipur and Ishwardi in Pabna.

As per the agreement, JICA will provide a Japanese ODA (Official Development Assistance) loan of up to 92,077 million yen—approximately Tk 7,694 crore—to finance the project. The signing ceremony was held on 27 June 2025 at the Economic Relations Division (ERD) in Sher-E-Bangla Nagar, Agargaon, Dhaka.

Md Shahriar Kader Siddiky, Secretary of the ERD, and Ichiguchi Tomohide, JICA’s Chief Representative in Bangladesh, signed the agreement on behalf of their respective sides.

This marks the first tranche of project financing. An earlier loan agreement had already been signed in March 2023 for the procurement of engineering services. Bangladesh Railway has since selected its engineering consultants, and detailed design work is expected to begin shortly.

The 162-kilometre dual gauge double-line railway aims to increase railway transport capacity by expanding the existing single-track route between Joydebpur and Ishwardi. Once completed, the project is expected to significantly strengthen rail connectivity across Bangladesh and maximise the utility of the Jamuna Railway Bridge—another major infrastructure initiative supported by JICA.

Beyond national benefits, the railway will also improve logistics between western Bangladesh and the capital, while enhancing regional connectivity and facilitating broader economic growth.

Speaking at the event, JICA’s Ichiguchi Tomohide remarked, “Today, we agreed to implement a vital project to enhance Bangladesh’s rail connectivity. Our main goal is to support the people of Bangladesh in achieving inclusive, sustainable, and prosperous development. We hope our assistance contributes meaningfully to their efforts to build a better future.”

ERD Secretary Siddiky expressed gratitude to the government and people of Japan for their continued support and partnership in Bangladesh’s development journey.