Kazi Zahidul Hasan :
After persistent negotiations between Dhaka and Beijing, EXIM Bank of China has agreed to provide preferential buyer’s credit (PBC) to Bangladesh for implementing the Padma bridge rail link project.
The Chinese state lender recently confirmed their financing to the project by an official letter to External Relations Division (ERD).
Admitting the matter, ERD Secretary Kazi Shofiqul Azam told The New Nation on Saturday that his division is working on finalising the financial agreement with the Chinese lender. A summary of the agreement has already been sent to the Finance Minister for his consent.
“The loan agreement will be signed after getting consent from the minister,” he said, adding, “It is a matter of time… the deal will be signed soon,”
The loan has a 15-year term, including a five-year grace period, 2 per cent interest rate, 0.2 per cent commitment charge and a service charge of 0.2 per cent, said ERD officials.
Bangladesh Railway (BR) will implement the project with an estimated cost of Tk 35,000 crore.
The EXIM Bank of China promised to provide necessary investment in the beginning of the project, but later they offered to provide only 85 per cent of the total cost.
Bangladesh government agreed with their condition and requested to sign the contract within June 15 this year. But the Chinese bank did not respond to it forcing to stall the project.
In August 2016, BR inked a commercial contract with a Chinese company to construct the 4.8-kilometre bridge under the government-to-government arrangements.
“Signing of the loan agreement with Chinese Bank is underway. The physical work of the project will begin after signing the deal,” Railways Minister Mazibul Hoque told The New Nation yesterday.
Once the Padma bridge rail link project is implemented, it would help establishing rail connectivity between Dhaka and southwestern districts.
Prime Minister Sheikh Hasina’s promise of running rail on the Padma Bridge from the first day of its inauguration remains uncertain as the government could not manage the funds so far.
According to the Planning Ministry, the Padma bridge rail link project includes 172-kilometre-long new rail line, which will start from Kamlapur railway station and will be serving four sections – Dhaka-Gendaria, Gendaria-Mawa, Mawa-Bhanga junction via Padma Bridge and Bhanga-Jessore Bridge. The ministry has also added the project cost in FY2017-2018 budget.
The project is scheduled to be completed by December 31, 2022.
“We are hopeful of completing the project by the stipulated time,” said Railways Minister Mazibul Hoque.
