Home ›› 13 Dec 2020 ›› World Biz
Indian development projects in Bangladesh are moving at a snail’s pace as New Delhi in last 10 years has disbursed Tk 10,625 crore ($ 126 crore) in loan out of total Tk 60,000 crore ($750 crore), according to the Economic Relations Division (ERD) data.
Under such circumstances, a high-level government committee has been formed to monitor the activities of the Indian loan projects. Ministry of Finance has formed the committee on the instructions of Prime Minister Sheikh Hasina.
The eight-member committee is headed by Economic Relations Secretary Fatima Yasmin, according to the information obtained from the ERD.
According to sources, the committee will henceforth take policy decisions on the Line of Credit (LOC) project to carry out ongoing projects and development projects under Indian debt.
The committee will also decide on other policymaking issues, including changes, modifications and amendments to Indian flexible loans. In addition, the committee will meet once a year or more if necessary to review the progress of the ongoing projects.
Sources further said that the committee will present the directions sought by the LOC and the joint meeting team. In addition, policy decisions on Indian grants will be approved by this committee.
If necessary, the committee can induct more members. The other members of the committee are Indian High Commissioner in Dhaka Vikram Kumar Doraiswamy, a member of the National Board of Revenue (NBR), Additional Secretary in the Ministry of Foreign Affairs, Finance and Home Affairs and the Director General of the Prime Minister's Office.
The member secretary of the committee will be the head of the Asian division of the ERD. A senior ERD official said that the prime minister took the decision to speed up projects being implemented mainly on Indian loans.
Over the delay in the projects Shahriar Quader Siddiqui, head of the Asia wing of the ERD, said he hoped a meeting would be held soon on the pace of work of the Indian development projects.
“However, it cannot be said that the implementation of LOC projects is slow because most of the projects are in the purchase stage. Many other projects, including earthworks and utility transfers, have not yet been completed. As a result, the disbursement of loan seems to lose steam,” he said.
“Once projects get out of the purchase period, the fund disbursement will gather pace. An official added that DPP (Development Project Proposal) is being prepared for almost all the projects of the third LOC. When these projects will reach the implementation stage, fund disbursement and project implementation rate will rise,” he added.
So far, 46 development projects have been undertaken with Indian loans but the works on 14 only has already been completed.
The works on eight of them are underway and tenders (procurement) of 11 projects are in process. In addition, 13 projects are in progress and DPP (Development Project Proposal) is under revision.
According to ERD sources, India has pledged $1 billion in loans under the First Line of Credit (LOC). Of this, $ 600 million is in loans and $ 200 million is in grants.
As of last October, the first LOC loan has been disbursed to only $ 61.69 crore (Tk 5,250 crore). Under this 15 projects are to be implemented.
But according to the latest information, implementation of 12 projects has been completed, three more works are underway. It was contracted in 2010 as the first line of credit.
During the visit of Indian Prime Minister Narendra Modi to Dhaka in June 2015, a Memorandum of Understanding (MoU) on a $ 200 million loan was signed under the Second LOC.
Under the second LOC, $ 92.5 million (Tk 7.25 crore) has been disbursed till November. Fifteen projects are being implemented under this loan.
Of these, work on two projects has been completed. And the work of four is going on. Tenders for four more projects are underway and DPPs for five projects are being prepared or revised.
Of the $ 4.5 billion pledged under the third LOC, Tk 54 lakh has been released till November 8.
The third LOC loan agreement of $ 4.5 billion was signed in Dhaka in October 2016 in the presence of the then Indian Finance Minister Arun Jaitley and Bangladesh Finance Minister Abul Maal Abdul Muhith.
Under this 18 projects are to be implemented. According to the latest information, work on Rooppur Nuclear Power Plant is underway. Tenders for seven projects are in process and DPPs for six projects are being prepared.
Among the projects under the third LOC are Buriganga River Restoration, Multipurpose Container Terminal at Chattogram Port, Pyara Port Terminal, Dual Gauge Railway from Bogura to Sirajganj, Syedpur Airport Upgradation, Faridpur's Bhanga to Benapole in Jashore to Maharaik Road from Ramgarh to Khagrachhari upgraded to four lanes, Mirsarai Special Economic Zone created, supply of one lakh LED bulbs in Dhaka, Chattogram and Rajshahi, construction of ICD for railways and roads in Ishwardi,
Hundred MW solar power project in Mongla, liquidation of Dhaka South City Corporation Construction project of four lane road from Cumilla to Sarail via Brahmanbaria town.
Relevant sources said that the delay in the implementation of the project was due to the time required to get the approval of the Indian authorities for the initial approval of the proposal, appointment of consultants and construction work tender documents. In addition, the pace of work of Indian contractors is slow though Exim Bank can give them the money they want.
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