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The government has dispensed with a $35.89 million project from India’s 2nd Line of Credit (LoC) and decided to implement it with its own funds.
It has made the decision as the Indian authorities have failed to disburse any fund within the stipulated time after floating tenders thrice.
The project named Sheikh Hasina Medical College and Hospital and Nursing College Establishment was approved on December 12 in 2016 by the Executive Committee of the National Economic Council (ECNEC). The commitment was $35.89 million in loans.
The project’s total cost was estimated at Tk 950.55 crore, of which Tk 280 crore would come from the 2nd LoC and the rest from the government exchequer.
The deadline for the project is December 2021.
At a project steering committee meeting on November 11 this year, the Health Services Division proposed de-listing the project from the 2nd LoC.
“We discussed the project’s de-listing at the 19th Joint Commission meeting between Bangladesh and India on October 27-28,” a joint secretary of the Economic Relations Division (ERD) said.
He also said the ERD would take steps about the matter after getting a proposal from the project evaluation committee.
“The Heath Services Division has decided to implement the project using government funds as tenders failed thrice,” the official said.
“The coronavirus pandemic, low tenderers, and Indian tenderers submitting quoted tenders are the reasons for delaying the project’s fund disbursement,” he explained.
Sources at the Planning Commission said some other ministries are pressing the commission for implementing their respective projects with the government’s own funds as Indian funding appears elusive.
The 1st Indian LoC is $862 million, 2nd one $2 billion, and 3rd one $4.5 billion.
India has so far released only $160 million against 12 projects included in the 1st LoC, $99.73 million against six projects of the 2nd LoC, and $37.91 million against the Rooppur Nuclear Power Plant project in the 3rd LoC.
