Bangladesh and India Thursday signed two contracts for the construction of a double-line rail track between Khulna and Darshana and the conversion of the metre gauge line into a dual-gauge line between Parbatipur and Kaunia.

The contract signing ceremony was held in Dhaka between representatives of the consultancy firms from India and the Bangladesh counterpart for the project.

The projects are being implemented with financing under the concessional Indian line of credit (LoC) of $2 billion.

The signing of the consultancy contracts for these important railway connectivity projects is expected to greatly improve sub-regional connectivity, trade and commerce, and accelerate the growth of the entire region, the Indian High Commission in Dhaka said.

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The Khulna-Darsana rail line project is being built at a cost of $312.48 million under LoC. The total length of this rail line is 126.25km (double-line) with a 14.40km loop line, and 147 girder bridges and culverts.

The project is expected to improve connectivity on the Khulna-Dhaka, Khulna-Chilahati, and Khulna-Rajshahi routes and between Mongla Port and Darsana-Gede, and augment the capacity for transportation of goods.

It also aims to facilitate the transportation of fuel to the proposed fuel-based power plants in Harian, Bheramara, Santahar, Bangabandhu Bridge West Station, Amanura, Faridpur, Thakurgaon and Rangpur.

The contract for consultancy services was awarded to the joint venture of Stup Consultants, Aarvee Associates Architects Engineers and Consultants, and Design Consultants (Bangladesh partner).

The Parbatipur-Kaunia rail line project is being built at $120.41 million under LoC.

The project aims at constructing a dual gauge railway track of 57km between Parbatipur and Kaunia junction for improving efficiency and augment line capacity in the Lalmonirhat-Kaunia-Rangpur-Parbatipur-Kanchan-Panchagarh section, Kanchan-Birol border section, and Shantahar-Bogura-Kaunia-Rangpur-Parbatipur-Kanchan-Panchagarh corridor of the Bangladesh Railway.

This would also help ease cross-border traffic through the Birol border.

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Also, fuel can be transported directly to Rangpur from Khulna upon the completion of the project.

The contract for consultancy services was awarded to the joint venture of Aarvee, Stup, and Design.