UNB :
Bangladesh and India have expressed optimism that the utilisation rate of Lines of Credit (LoCs) extended to Bangladesh by India is set to increase significantly in the near future.
With the award of more than $990.85 million worth of contracts under the LoCs during the past three years, and another $325.58 million being finalised within the next few months, the two sides hope it will create new opportunities for shared development of the region and mutual benefits.
Bangladesh and India have noted considerable improvement in the speed of projects reaching the execution or ending stage under the LoCs.
It has been made possible with the active cooperation of the project-implementing agencies of both sides and the extensive coordination efforts between the Economic Relations Division (ERD) and the High Commission.
The 19th Bangladesh-India LoC review meeting was held in Dhaka on October 27-28 to review the progress of 43 projects being taken up for implementation under Government of India LoCs.
Sridharan Madhusudhanan, Joint Secretary (DPA-I), Ministry of External Affairs, Government of India led the Indian delegation and the Bangladesh delegation was led by Md Shahriar Kader Siddiky, Additional Secretary, ERD, Ministry of Finance, Government of Bangladesh.
Representatives of Indian companies executing the LoC projects in Bangladesh also participated in the meeting.
The India-Bangladesh development partnership has grown significantly in recent years, said the Indian High Commission in Dhaka.
Four LoCs worth $7.862 billion had been extended to Bangladesh for undertaking important infrastructure development projects in a wide array of sectors.
The total disbursements as of October 25, 2021, are approximately $865 million.
Under the first LoC of $862 million, 12 out of 15 projects have already been completed and three projects are under execution.
Under the second LoC of $2 billion, two projects are already complete and the other projects are under various stages of implementation. Under the third LoC of $4.5 billion, one project has reached the execution stage, while the other projects are under various stages of DPP finalisation and tendering.
