UNB, Dhaka :
Though nearly five years have elapsed since the signing of a loan agreement with India for implementing various projects, Bangladesh has so far received $ 205.59 million from the Indian Exim Bank out of $751.95 million cleared by the Indian government under its first Line of Credit (LoC).
Out of the 15 project proposals under the first LoC, 16 contracts aggregating $ 351.38 million, proposed by the Bangladesh authorities, have so far been approved by the Exim bank, while disbursements made as of June 30, 2015 is $ 205.59 million, said an official at the Economic Relations Division (ERD).
The Export-Import Bank of India or Indian Exim Bank sent a letter to the ERD on July 10 highlighting the status update on the first LoC projects as of June 30, 2015.
In the letter, Indian Exim Bank regional head Tarun Sharma requested for sending some documents through the Indian High Commission in Dhaka for covering the balance projects under the LoC.
The letter says, “On receipt of the documents from the government of Bangladesh, Exim Bank will forthwith process for issue of Letter of Inclusion under the captioned Line of Credit to enable the Indian exporters and the importers in Bangladesh to proceed with operationalisation.
According to the status update of the first LoC projects, the Indian side is yet to disburse any fund for three projects-construction of the 3rd and 4th dual gauge track between Dhaka-Tongi section and doubling of dual gauge track between Tongi-Joydevpur section, including signaling works on Bangladesh Railway where the Indian government is supposed to provide $ 123.10 million out of the total project cost of $ 149 million.
India is also yet to disburse any fund against rehabilitation of the Khulna-Shahbazpur section of BR (LoC of $ 54.41 million) and replacement and modernisation of signalling and interlocking systems of three stations of the Ashuganj-Akhaura section in the east zone of BR (LoC of $ 3.63 million) as the implementing agency has failed to achieve the progress target.
Besides, the India government has so far disbursed $ 38.68 million out of $ 120 million LoC for the construction of the Second Bhairab and Titas Rail Bridges with approach rail lines, including a feasibility study, while the disbursement against the procurement of 120 BG passenger coaches for Bangladesh Railway was not satisfactory during the period with $ 7.62 million out of the LoC credit worth $ 95.15 million.
Of the 15 projects included in the LoC, 12 are being implemented by the Railways Ministry and one each by the Road Transport & Highway Division, Shipping Ministry and Industries Ministry.
India extended a US$ 1-billion credit line to Bangladesh for developing infrastructure projects, mostly in the communications sector. The loan agreement between the Indian EXIM Bank and the Economic Relations Division (ERD) of the Ministry of Finance was signed in August 2010.
India also converted US$ 200 million out of the US$ 1 billion LoC as grant assistance in June 2012, enabling Bangladesh to utilise it for any priority project.
Meanwhile, India agreed to provide Bangladesh with a new LoC worth $ 2 billion as Memorandum of Understanding (MoU) in this regard was signed between the two countries during the visit of Indian Prime Minister Narendra Modi on June 6.
