UNB, Dhaka :
Though over four years have elapsed since the signing of a loan agreement with India for implementing various development projects in Bangladesh, only seven out of 15 projects under the $ 800-million Indian line of credit (LoC) have been completed, according to a progress report.
India extended a $ 1-billion credit line to Bangladesh for developing infrastructure projects, mostly in the communications sector. The loan agreement between the EXIM Bank of India and the Economic Relations Division (ERD) of the Ministry of Finance was signed in August 2010.
India also converted $ 200 million out of the $ 1 billion LoC as grant assistance in June 2012, enabling Bangladesh to utilise it for any priority project.
As per the progress report on Indian LoC as of August 31, 2014 prepared by the ERD, the seven completed projects are: Procurement of double-decker, single-decker AC and articulated buses for Bangladesh Road Transport Corporation (BRTC) (LoC of $ 36.85 million); procurement of 180 (165) broad-gauge (BG) tank wagons and six bogies of brake vans ($ 17.38m); procurement of 50 units of metre-gauge (MG) flat
wagons (BFCT) and 5 units of MG brake vans with air brakes for carrying containers ( $ 3.28m); procurement of 30 (16) units of BG diesel electric (DE) locomotives ($ 60.95m); procurement of 10 units of BG DE locomotives (LoC of $ 33.05m); procurement of 100 (81) units of MG bogies of tank wagons and five units of MG brake vans with air brakes and air brake equipment for carrying aviation fuel ($ 7.43m); procurement of 170 units of MG flat wagons (BFCT) and 11 units of MG bogie brake vans (BBVs) with air brake systems for carrying containers (LoC of $ 10.73 million).
Of the total 15 projects, only the construction of the Khulna-Mongla port rail line, including a feasibility study, requires land acquisition to implement the project. Meanwhile, the first phase of the feasibility study has completed and the tender is under process.
The report also shows the project cost is likely to increase to $ 288 million from $ 175 million due to the settlement of alignment and construction of Rupsha Bridge and land acquisition.
Talking to UNB, an official at the ERD said the finalisation of tender of this project will complete by January 2015 while the construction work is expected to start by March next year. The project is likely to be completed by September 2018.
The report also says 14 projects will be completed within the stipulated time except the construction of the Khulna-Mongla port rail line, including its feasibility study.
Earlier, the Indian authorities had expressed their dissatisfaction over the slow implementation of four projects under the Indian LoC and urged the Bangladesh government to expedite the works.
These four projects are: Construction of the third and fourth dual gauge tracks at Dhaka-Tongi section and doubling of the dual gauge track at Tongi-Joydevpur section, including signalling works on Bangladesh Railway (BR), and procurement of 120 units of broad gauge coaches (LoC of $ 95.15 million).
The ERD official said the cost of the LoC portion of the doubling of the dual gauge track at the Tongi-Joydevpur section has increased to $ 123 million from $ 88.38 million because delay in project implementation.
Two other projects-Rehabilitation of Kulaura-Shahbazpur section of BR (LoC of $ 54.41 million) and replacement and modernization of signalling and interlocking systems of three stations of Ashuganj-Akhaura section in the east zone of BR (LoC $ 3.63 million) also hit the snag.
Sources at the ERD also said the delivery of necessary equipment is expected to be completed by Indian exporter by this December under the Modernization and Strengthening of Bangladesh Standards and Testing Institution (BSTI) with LoC portion of $ 2.47 million.
The progress report says due to delay in mobilization of equipment, machinery and procurement of materials by the Indian contractor, the desired target could not be achieved for the construction of 2nd Bhairab and 2nd Titas Bridge with approach road with LoC portion of $ 120 million.
Though over four years have elapsed since the signing of a loan agreement with India for implementing various development projects in Bangladesh, only seven out of 15 projects under the $ 800-million Indian line of credit (LoC) have been completed, according to a progress report.
India extended a $ 1-billion credit line to Bangladesh for developing infrastructure projects, mostly in the communications sector. The loan agreement between the EXIM Bank of India and the Economic Relations Division (ERD) of the Ministry of Finance was signed in August 2010.
India also converted $ 200 million out of the $ 1 billion LoC as grant assistance in June 2012, enabling Bangladesh to utilise it for any priority project.
As per the progress report on Indian LoC as of August 31, 2014 prepared by the ERD, the seven completed projects are: Procurement of double-decker, single-decker AC and articulated buses for Bangladesh Road Transport Corporation (BRTC) (LoC of $ 36.85 million); procurement of 180 (165) broad-gauge (BG) tank wagons and six bogies of brake vans ($ 17.38m); procurement of 50 units of metre-gauge (MG) flat
wagons (BFCT) and 5 units of MG brake vans with air brakes for carrying containers ( $ 3.28m); procurement of 30 (16) units of BG diesel electric (DE) locomotives ($ 60.95m); procurement of 10 units of BG DE locomotives (LoC of $ 33.05m); procurement of 100 (81) units of MG bogies of tank wagons and five units of MG brake vans with air brakes and air brake equipment for carrying aviation fuel ($ 7.43m); procurement of 170 units of MG flat wagons (BFCT) and 11 units of MG bogie brake vans (BBVs) with air brake systems for carrying containers (LoC of $ 10.73 million).
Of the total 15 projects, only the construction of the Khulna-Mongla port rail line, including a feasibility study, requires land acquisition to implement the project. Meanwhile, the first phase of the feasibility study has completed and the tender is under process.
The report also shows the project cost is likely to increase to $ 288 million from $ 175 million due to the settlement of alignment and construction of Rupsha Bridge and land acquisition.
Talking to UNB, an official at the ERD said the finalisation of tender of this project will complete by January 2015 while the construction work is expected to start by March next year. The project is likely to be completed by September 2018.
The report also says 14 projects will be completed within the stipulated time except the construction of the Khulna-Mongla port rail line, including its feasibility study.
Earlier, the Indian authorities had expressed their dissatisfaction over the slow implementation of four projects under the Indian LoC and urged the Bangladesh government to expedite the works.
These four projects are: Construction of the third and fourth dual gauge tracks at Dhaka-Tongi section and doubling of the dual gauge track at Tongi-Joydevpur section, including signalling works on Bangladesh Railway (BR), and procurement of 120 units of broad gauge coaches (LoC of $ 95.15 million).
The ERD official said the cost of the LoC portion of the doubling of the dual gauge track at the Tongi-Joydevpur section has increased to $ 123 million from $ 88.38 million because delay in project implementation.
Two other projects-Rehabilitation of Kulaura-Shahbazpur section of BR (LoC of $ 54.41 million) and replacement and modernization of signalling and interlocking systems of three stations of Ashuganj-Akhaura section in the east zone of BR (LoC $ 3.63 million) also hit the snag.
Sources at the ERD also said the delivery of necessary equipment is expected to be completed by Indian exporter by this December under the Modernization and Strengthening of Bangladesh Standards and Testing Institution (BSTI) with LoC portion of $ 2.47 million.
The progress report says due to delay in mobilization of equipment, machinery and procurement of materials by the Indian contractor, the desired target could not be achieved for the construction of 2nd Bhairab and 2nd Titas Bridge with approach road with LoC portion of $ 120 million.
