UNB, Dhaka :
The credit agreement between Dhaka and New Delhi for extending a new Line of Credit (LoC) of US $ 2 billion to Bangladesh is yet to be inked due to bureaucratic tangles on both sides although eight months have elapsed since the MoU signing.
Sources at the Ministry of Finance said the authorities concerned in the two countries could not yet complete negotiations on conditions of the memorandum of understanding (MoU) to implement 14 important projects under the Indian 2nd LoC.
The MoU on the new LoC was signed here on June 6 last year during Indian Prime Minister Narendra Modi’s Bangladesh visit. To review the progress on the LoC projects (Both 1st and 2nd ones, a meeting was held last month at the Prime Minister’s Office
under the Sub-Regional Cooperation initiative with PM’s Economic Affairs Adviser Dr Moshiur Rahman in the chair.
Sources close to the meeting told UNB that out of the proposed 14 projects under the Indian 2nd LoC, the meeting decided that the Ministry of Railways would reexamine the construction of double line, including signaling, at Khulna-Darshana section of Bangladesh Railway project.
Regarding the development of Ashuganj river port-Dharkhar-Akhaura land port road length, the meeting decided that the Ministry of Road Transport and Bridges would take up the project on priority basis as it is important for connectivity with Agartala, especially when India will start using Chittagong port.
About the Establishment of Indian Economic Zones in Mongla and Bheramara, Kushtia project, the meeting decided that the Bangladesh Economic Zone Authority (BEZA) would expedite the process to hand over land for Indian SEZ so that establishment of industries may start at the earliest.
Officials at the Economic Relations Division (ERD) said India has agreed to amend the conditions regarding the civil projects under the fresh LoC.
Under the amended condition, in case of projects involving civil construction, the eligible goods up to the contract price will be supplied by sellers from India, and may be further reduced from 75 percent to 65 percent. And further reduction can be considered on a case-by-case basis, provided the sourcing is not from a third country.
India’s Exim Bank agreed to reduce the stipulated amount from 75 to 65 percent to implement the construction works in the latest negotiation meeting, held here last year.
Contacted, ERD Additional Secretary Mohammad Asif-uz-Zaman said the credit agreement for the fresh LoC is yet to be signed as some final works are going on to this end.
