The project, taken up by the government to transform Kamalapur Railway Hospital into a full-fledged medical college hospital at an estimated cost of Tk 340 crore, remains stalled for a decade.
Despite its approval at a meeting of the Executive Committee of National Economic Council (ECNEC) on August 14, 2013, the project has seen no significant progress to date. The government had planned to build the medical college hospital on five acres of land under a public-private partnership (PPP) initiative.
According to a Bangladesh Railway official, “Though the plan was to upgrade the hospital under a 40-year PPP model, the project remains stalled. Even after a memorandum of understanding (MoU) was signed between the Ministry of Railways and the Ministry of Health, disagreement over asset ownership has halted its further development.”
The authorities have had discussions over the project funding through a government-to-government (G2G) agreement with South Korea, but discussions have yet to yield any results.
Railway sources said that the project includes plans, such as a medical college, medical hotel, hostels, institutional spaces, research and development centres, wellness centres, pharmacies, laboratories, and conference halls. It aims to provide commercial healthcare services as well all within Kamalapur General Hospital Complex. The proposal outlines the establishment of a 50-seat medical college and a nursing institute, alongside expanding the hospital’s capacity to 250 beds.
Under the agreement, private investors would gain usage rights to the railway’s land and facilities for 40-50 years.
Bangladesh Railway has rolled out five such hospital projects under public-private partnership across the country. In addition to Kamalapur, the other proposed projects are in Chattogram, Saidpur, Pakshi, and Khulna.
Bangladesh Railway has provided healthcare services to its employees and their families. However, the railway’s ability to ensure this service diminished over time. This project aims to improve healthcare for railway workers while expanding services to the general people.
As per the plan, 10 per cent of hospital beds will be reserved for railway employees and their families. Another 25 per cent of beds will offer them discount on services.
In a financial perspective, railway officials believe that the project will allow the railway to generate revenue by leasing out land. This would help transition the Bangladesh Railway from a loss-making entity to one that can turn profit through this venture.
Golam Mostafa, the focal person for the project, told Bangladesh Post, “The proposal for appointing a private investor is awaiting approval from the government. The estimated expenditure for hiring a consultant under the PPP authority stands at Tk 3 crore. An Indian firm is currently conducting the feasibility study.”
When questioned about the project’s viability, he said, “The feasibility study suggests that the project will be viable. This is why Bangladesh Railway has decided to submit the proposal for final approval.”
In fact, Kamalapur General Hospital is now limping for a shortage of doctors and necessary equipment.
During recent visit, it was found that the hospital is nearly empty, with long wait to see doctors. Most of the hospital’s rooms remain locked, and 35 of 94 rooms are unused. Although the hospital is labelled as a 100-bed facility, only 41 beds are used.
Bangladesh Railway’s Director General Sardar Shahadat Ali told the Bangladesh Post, “The government undertook the project to upgrade the hospital to a modern facility under the PPP initiative. However, work has been stalled, but the PPP process is ongoing.”
