Dhaka set to change Rly projects under $1.0b Indian credit on Delhi's directionFHM Humayan Kabir
Bangladesh is set to bring about major changes in three railway projects under US$1.0 billion Indian credit as per Delhi's direction, officials said Saturday.
"Delhi has directed Dhaka to change the design and name of three projects so that it can supply necessary goods for the schemes to Bangladesh," a senior communications ministry official told the FE.
Delhi has told Dhaka that since Indian suppliers at present do not manufacture metre-gauge (MG) coaches and equipment Bangladesh should change the project, he said.
The government in a meeting presided over by the finance minister AMA Muhith has recently decided to change those railway schemes as per India's direction and asked Bangladesh Railway to revise three projects.
"As per (Delhi's) instruction, we are now working to change the project. Now we will have to procure broad-guage rail coaches instead of our required MG equipment," the communication ministry official said.
The proposed three railway projects which will have to be changed are: procurement of 264 MG passenger carriages with two BG inspection cars, 150 MG passengers carriage and 10 MG diesel and electric modellers united (DEMU).
Under the $1.0 billion credit line, the government has undertaken 12 projects for railway development, five for transport sector improvement and three for port development and other works.
Another communications ministry official said the Indian government has recently suggested to change three railway projects due to their supply constraints.
"We had undertaken our projects as per requirement of the Railway. But now the revised schemes will not serve the interest of the impoverished railway," he said.
The official said as, "Per Bangladesh's requirement we need MG passenger coaches and DEMU but as the Indian companies only build broad-gauge equipment we are forced to follow the lender's requirement."
As per the loan deal, Bangladesh will have to procure all goods, works and services from India for the schemes. Only 15 per cent goods, works or services can be procured from Bangladesh if the contractor failed to source it from India.
A planning ministry official said: "The communications ministry has already sent a revised project proposal on procurement of 10 MG DEMU. Now it has sought change in the name of the project-procurement of 10 BG BEMU."
The communications ministry official said they had invited tenders twice from the Indian coach manufacturers but they did not get any response from the contractor.
Indian suppliers RITS India, Panjab Rail Coach Factory and Integral Coach Factory in Chennai had not taken part in the tender as they now build BG coaches and equipments, he said.
A top Bangladesh Railway official told the FE that if they wanted to spend the Indian loan for railway development they had to change the project as per direction of the lender.
Dhaka set to change Rly projects under $1.0b Indian credit on Delhi's direction
Bangladesh is set to bring about major changes in three railway projects under US$1.0 billion Indian credit as per Delhi's direction, officials said Saturday.
"Delhi has directed Dhaka to change the design and name of three projects so that it can supply necessary goods for the schemes to Bangladesh," a senior communications ministry official told the FE.
Delhi has told Dhaka that since Indian suppliers at present do not manufacture metre-gauge (MG) coaches and equipment Bangladesh should change the project, he said.
The government in a meeting presided over by the finance minister AMA Muhith has recently decided to change those railway schemes as per India's direction and asked Bangladesh Railway to revise three projects.
"As per (Delhi's) instruction, we are now working to change the project. Now we will have to procure broad-guage rail coaches instead of our required MG equipment," the communication ministry official said.
The proposed three railway projects which will have to be changed are: procurement of 264 MG passenger carriages with two BG inspection cars, 150 MG passengers carriage and 10 MG diesel and electric modellers united (DEMU).
Under the $1.0 billion credit line, the government has undertaken 12 projects for railway development, five for transport sector improvement and three for port development and other works.
Another communications ministry official said the Indian government has recently suggested to change three railway projects due to their supply constraints.
"We had undertaken our projects as per requirement of the Railway. But now the revised schemes will not serve the interest of the impoverished railway," he said.
The official said as, "Per Bangladesh's requirement we need MG passenger coaches and DEMU but as the Indian companies only build broad-gauge equipment we are forced to follow the lender's requirement."
As per the loan deal, Bangladesh will have to procure all goods, works and services from India for the schemes. Only 15 per cent goods, works or services can be procured from Bangladesh if the contractor failed to source it from India.
A planning ministry official said: "The communications ministry has already sent a revised project proposal on procurement of 10 MG DEMU. Now it has sought change in the name of the project-procurement of 10 BG BEMU."
The communications ministry official said they had invited tenders twice from the Indian coach manufacturers but they did not get any response from the contractor.
Indian suppliers RITS India, Panjab Rail Coach Factory and Integral Coach Factory in Chennai had not taken part in the tender as they now build BG coaches and equipments, he said.
A top Bangladesh Railway official told the FE that if they wanted to spend the Indian loan for railway development they had to change the project as per direction of the lender.
Dhaka set to change Rly projects under $1.0b Indian credit on Delhi's direction
