India Offers another $1 billion Credit to Bangladesh

[eastwatch]

South Asian Media Net

India offers another $1.0b credit to BD
Tuesday, April 26,2011

India has offered another $1.0 billion credit for infrastructure development in Bangladesh, a senior official of the government said.

Indian Commerce and Industry Minister Anand Sharma gave the offer during his meeting with his counterpart Faruk Khan last Saturday, sources said.

"The minister has expressed India's willingness to offer more credit to develop roads and infrastructural facilities if we have any special project," Faruk Khan told the FE Monday.

"India will respond further if we express our interest in this connection. We have asked them to send their policy and requirements for the proposed credit," the minister added.

Mr. Khan said he has discussed various issues concerning trade and development activities in Bangladesh.

Bangladesh and India on August 7 last year signed a $1.0 billion credit deal, most of which would be spent for development projects.

Bangladesh has already taken up about 20 projects with this credit line. Of these, 12 projects are for development of railway system, five for transport sector and three for port development and other works.

"We've recently sent proposals of 15 projects, out of a total of 20, to India for getting their opinion. The lender is yet to give any feedback in this connection," Economic Relations Division (ERD) Secretary M Musharraf Hossain Bhuiyan told the FE early this month.

The ERD sources said the works for the projects could not start since because of delays by the lender to masking responses. An official expressed the fear that the work for none of the projects might start this fiscal year due to such delays.

Bangladesh will need to take approval from India before starting any project with the credit line. According to the terms and conditions of the deal, Bangladesh needs to purchase at least 85 per cent of goods, works and services from India for the development-related works.

Indian EXIM Bank is providing the loan at a rate of interest of 1.75 per cent, with 24 years' repayment period. Besides, Bangladesh will have to pay 0.5 per cent commitment fee per year if any fund remains unutilised after 12 months from the date of signing the deal.

The Indian government also wants to supervise some of the projects through their consultants, which has created some complexities about their execution.

Talking to the FE Monday Prof. Abu Ahmed of University of Dhaka opposed taking any further 'tight loan from single sources'.

"Taking loan from any source with the hardest terms and conditions will be a burden for Bangladesh. We need to take soft loans from independent sources, which will be cost-effective for the country," he said.

Chairman of Palli Karma Sahayak Foundation Qazi Kholiquzzaman Ahmad told the FE: "We have to check the terms and conditions of the loans before taking them from any sources."

"We need to consider the conditions fairly and objectively, whether those come from India or America," he said.

 

[DelhiDareDevil]

New Delhi is flexing her power, and good to see.

We should try to help all nations in South Asia and doing so, particularly with Sri Lanka and Bangladesh all benefitting.

 

[Roybot]

Could go towards the infrastructure development required for transit facilities.

But on the other hand India is trying to flood Bangladesh with its poor equipments and below par services, through such line of credits. Down with Indian hegemony g

 

[eastwatch]

It is no wonder that India has increased its offer by another billion dollar so that BD can finance the construction of its infrastructures that India will use to facilititate its east-west transit through BD. What a ploy! We build and then pay back the loan money with interest. In addition of repaying $100 million per year for the next 20 years, poor BD will have also to pay an yearly interest of $20 million. India will be paying less than $50 million for transit whereas road maintenance itself will cost BD more than $100 million per year.

Better no credit to BD. Instead, India should use its own fund to build infrastructure inside BD that will be used as transit routes for Indian goods. This India is making fool of BD and is making the position of AL very untenable in the country. BNP does not say a word aagainst any of India's offers, only because these are regarded by the population as selling out to India. These offers benefit BNP enormously by enlarging its voter base.

Well, AL should know it does not need an enemy when India is its friend.

 

[LaBong]

It seems the only way to extort money from GOI is to stick out like a sore thumb or have some ministers in cabinet.

 

[Lord Of Gondor]

Al-Hasina,Al-awami,Al-stooge ruining Bangladeshi people by siding with evil Hindoo Bharatis!!!

 

[LaBong]

It is no wonder that India has increased its offer by another billion dollar so that BD can finance the construction of its infrastructures that India will use to facilititate its east-west transit through BD. What a ploy! We build and then pay back the money with interest. In addition of repaying $200 million per year for the next 10 years, poor BD will have also to pay an yearly interest of $20 million. India will be paying less than $50 million for transit whereas road maintenance itself will cost BD more than $100 million per year.

Not credit to BD, but India should use its own fund to build infrastructure inside BD that will be used as transit routes for Indian goods. This India is making fool of BD and is making the position of AL very untenable in the country. BNP does not say a word aagainst any of India's offers, only because these are regarded by the population as selling out to India.

Well, AL should know it does not need an enemy when India is its friend.

And I got my hope back that the transit deal will not gel and GOI will spend the money to develop Siliguri corridor!

 

[Kinetic]

These are very basic conditions given by all countries for such line of credit.

It is no wonder that India has increased its offer by another billion dollar so that BD can finance the construction of its infrastructures that India will use to facilititate its east-west transit through BD. What a ploy! We build and then pay back the money with interest. In addition of repaying $200 million per year for the next 10 years, poor BD will have also to pay an yearly interest of $20 million. India will be paying less than $50 million for transit whereas road maintenance itself will cost BD more than $100 million per year.

Not credit to BD, but India should use its own fund to build infrastructure inside BD that will be used as transit routes for Indian goods. This India is making fool of BD and is making the position of AL very untenable in the country. BNP does not say a word aagainst any of India's offers, only because these are regarded by the population as selling out to India.

I do not see any India has given any precondition that only India will use those roads, bridges or railways!! Anyone can see any such condition?

Well, AL should know it does not need an enemy when India is its friend.

You know this than why need BD govt to know? You can live with your self propaganda when no one in BD or India is buying those. So what uses? lol

 

[Veeru]

It is no wonder that India has increased its offer by another billion dollar so that BD can finance the construction of its infrastructures that India will use to facilititate its east-west transit through BD. What a ploy! We build and then pay back the money with interest. In addition of repaying $200 million per year for the next 10 years, poor BD will have also to pay an yearly interest of $20 million. India will be paying less than $50 million for transit whereas road maintenance itself will cost BD more than $100 million per year.

Not credit to BD, but India should use its own fund to build infrastructure inside BD that will be used as transit routes for Indian goods. This India is making fool of BD and is making the position of AL very untenable in the country. BNP does not say a word aagainst any of India's offers, only because these are regarded by the population as selling out to India.[/COLOR]

What a foolish argument by that logic even china provides loan to Bangladesh, Sri Lanka or even pakistan are to be pad back with interest and Chinese will use it.

Like Gwadar port china will finance pakistan will pay with interest and its to be used by china.

Same with Sri Lanka china provided loan to Sri Lanka for Hambantota port, Sri Lanka will pay the loan with interest and china will use use the port.

In simple words china is using Sri Lanka/Bangladesh/Pakistan to build projects that will be used by china.

China will gain economically, military, chinese will get jobs building these projects, chinese companies will earn by these projects and in the end Bangladesh/Sri Lanka/Pakistan will pay for it with the interest.

Well, AL should know it does not need an enemy when India is its friend.

Well citizens like you BD don't need any enemy wait a second........... you are saying this while in japan sitting comfortably thousands of kms away from Bangladesh. What a life of a armchair general.

 

[Whiplash]

It is no wonder that India has increased its offer by another billion dollar so that BD can finance the construction of its infrastructures that India will use to facilititate its east-west transit through BD. What a ploy! We build and then pay back the money with interest. In addition of repaying $200 million per year for the next 10 years, poor BD will have also to pay an yearly interest of $20 million. India will be paying less than $50 million for transit whereas road maintenance itself will cost BD more than $100 million per year.

Not credit to BD, but India should use its own fund to build infrastructure inside BD that will be used as transit routes for Indian goods. This India is making fool of BD and is making the position of AL very untenable in the country. BNP does not say a word aagainst any of India's offers, only because these are regarded by the population as selling out to India. These offers benefit BNP enormously by enlarging its voter base.

Well, AL should know it does not need an enemy when India is its friend.

OFMG!!

So even this is a giant conspiracy theory? Dude.. As if bangladeshis are not going to make use of the infrastructure. If those figures you gave are true, then it's still your fault! Your government is a friggin retard for accepting 50 mil as transit cost when it costs 100 mil to repair.
Although i'm pretty sure the razakar that you are, you're just making up all the figures.

 

[Avisheik]

If india really want to be our close friend, they should help us build schools and hospitals instead of concentrating too much on helping us to develop our transport infrastructure

 

[Mirza Jatt]

I love that theory...I wish that is true....if that sreally thecase then well done GoI.

 

[DelhiDareDevil]

If india really want to be our close friend, they should help us build schools and hospitals instead of concentrating too much on helping us to develop our transport infrastructure

India are, with new infractructure, it would be able to export more goods and create more jobs, this can increase Bangladesh tax and hence tax income will increase, which can be used to build hospitals and schools in Bangladesh.

Sometimes, Bangladeshis here see 1 side of the story and dont use commonsense. You should look at how China controls SL and Pakistan ports. Will India do that to Bangladesh port? Doubt it.

 

[Veeru]

If india really want to be our close friend, they should help us build schools and hospitals instead of concentrating too much on helping us to develop our transport infrastructure

India-Bangladesh International Hospital in Joint venture

The deal is done and the cost is estimated Tk 500 crore for building an international hospital in the port city in joint venture with an Indian company.Chittagong Port Authority (CPA) is going to build the big hospital in the port city in joint-effort with the Indian private-sector organization.

“The hospital would be set up under joint venture by the CPA and Narayana Gurudayalaya Group of India at a cost of Tk 500 crore,” said Shipping Minister Shahjahan Khan.Of the cost, CPA would bear Tk 350 crore and Narayana Gurudayalaya Group Tk 150 crore. It would be a 1000-bed hospital. A memorandum of understanding has already been signed between the two sides, the minister added.

The memorandum of understanding was signed during the visit of a high-level delegation, led by the minister, to India from December 13 to 16 last year. The hospital would be set up on 23 acres of land. But the site is yet to be selected. Earlier, an inter-ministerial meeting was held on June 1, where the high officials of the ministries and bodies concerned, including the National Board of Revenue and finance, health and family welfare and local government ministries, were apprised of the plan on setting up the hospital.The decision of establishing the hospital through a joint-effort of Public-Private Partnership was taken in a cabinet meeting on August 2.

ROBIN BUZZ: India-Bangladesh International Hospital in Joint venture

Apollo hospital opens tomorrow


Staff Correspondent

Apollo hospital, the first of five joint venture hospitals being set up in the capital by leading overseas healthcare enterprises and their local partners, opens tomorrow.

Located at Basundhara, the hospital will however take a few more days to open its doors to patients on some medical rounds.

Richard Larison, chief executive officer of the hospital, yesterday told reporters, "We have a mission to improve the standard of healthcare facilities in Bangladesh by transferring technology and training Bangladeshi doctors." Many eminent Bangladeshi doctors working abroad are coming back home in response to invitation from the hospital, he added.

The hospital, built on a 400,000-square-foot area, will be the largest commercially run healthcare provider in Asia. Funded by local business group STS Holdings and managed by American, Indian and Bangladeshi staff, the 10-storied hospital will be the largest of 37 hospitals of India's Apollo group.

The hospital will start with 150 beds but will expand to 450 beds.

It will be equipped with most modern technology in healthcare sector and also have a helipad.

The hospital management plans to set up a nursing institute by September this year and a medical college later.

The Daily Star Web Edition Vol. 5 Num 298


5 joint venture hospitals in city by next year

Naimul Haq

The first of its kind in the country, five joint venture hospitals are being set up in the capital by five leading overseas healthcare enterprises and their local partners.

Of the hospitals, one will open its doors to patients on March 30, two in June, one by the yearend and another by the middle of next year.

The joint ventures involving a total investment of $162 million will run on commercial lines to provide services of international standard at competitive and affordable prices, sources said.

Apollo Hospital Dhaka at Bashundhara, the largest of 37 hospitals of India's Apollo group, starts functioning only after three days.

Sources said the hospital being built on a 400,000-square foot area will be the largest commercially-run healthcare provider in Asia. Funded by local business group STS Holdings and managed by American staff, the 10-storey hospital with 450 beds will also have facilities for handling helicopter ambulance.

Moreover, a 450-bed Square Hospital managed and run by Thailand's Bumrungrad Hospital International in cooperation with local Square Hospitals Ltd begins functioning in June. Construction of the hospital on Panthapath involving an investment of $42 million is nearing completion.

Another 450-bed hospital -- Continental Hospital at Gulshan -- is expected to be ready for services by June this year. The project involving around $37.5 million is being jointly implemented by United Group of Bangladesh and K P J Healthcare, Berhad, of Malaysia.

An American private healthcare giant has invested $ 30 million to provide specialised hospital services by the end of this year. American Hospital Consortium llc (AHCL) envisages use and expansion of the 10-storey building of Kuwait Moitry Hospital and other structures on its premises at Sector-6 in Uttara, lying vacant for the last eight years.

"We have decided to hand over the vacant Kuwait Moitry Hospital to the American company. Twenty per cent of the 200 beds at the hospital must be reserved for free treatment of poor patients," Health Secretary A F M Sarwar Kamal told The Daily Star.

The hospital with US doctors heading all its wings and nursing staff also from that country is likely to operate by the yearend, sources said.

Another 200-bed hospital is likely to open by mid-next year at Nikunja, Uttara, jointly managed by Escort Hospital of India and Japan-Bangladesh-Friendship-Hospital. Foreign and local investment for the project is estimated at about Tk 80 crore.

When the joint venture hospitals equipped with high-tech new generation equipment and apparatus start functioning, Bangladeshi patients will for the first time get treatment directly under foreign doctors, surgeons, physiotherapists, nurses and experts in various fields, sources pointed out.

Under strict foreign management, the joint venture hospitals will offer services ranging from simple medical consultation to complex brain, spine, bone, kidney, eye, heart and even plastic surgeries by foreign doctors, enabling many Bangladeshi patients to avoid costly and troublesome trips to neighbouring countries for treatment.

Foreign doctors would also train local doctors to transfer technology in accordance with the new regulations laid down by the health ministry.

The health ministry recently constituted an 'accreditation board' to approve employment of overseas personnel in the joint-venture hospital projects to ensure quality service and a congenial atmosphere.

"We have to ensure quality services from these hospitals. We are allowing such projects also to encourage technology transfer in medical education. The focus is mainly on producing more trained manpower for healthcare," the health secretary said.

The Daily Star Web Edition Vol. 5 Num 295

 

[nForce]

It is no wonder that India has increased its offer by another billion dollar so that BD can finance the construction of its infrastructures that India will use to facilititate its east-west transit through BD. What a ploy! We build and then pay back the money with interest. In addition of repaying $200 million per year for the next 10 years, poor BD will have also to pay an yearly interest of $20 million. India will be paying less than $50 million for transit whereas road maintenance itself will cost BD more than $100 million per year.

Not credit to BD, but India should use its own fund to build infrastructure inside BD that will be used as transit routes for Indian goods. This India is making fool of BD and is making the position of AL very untenable in the country. BNP does not say a word aagainst any of India's offers, only because these are regarded by the population as selling out to India. These offers benefit BNP enormously by enlarging its voter base.

Well, AL should know it does not need an enemy when India is its friend.

Okay,lets summarize....

1.A loan is fine,as long as you wont have to pay back....

Its a loan after all,and not charity....You are upset because you are not getting donations for that??

2.Even if repayment is okay,still you have a problem with interest.

Its a proposition from business point of view.As you probably know,and perhaps understood,this is a LOAN and loans have to be repaid with interest.Never ever been to a bank or what??and someone just got a Nobel prize from Bangladesh for the prosperity of Grameen bank.

3.Once the roadways get constructed,you again have a problem with India bearing half the maintenance cost.

Okay,the roadways is being constructed in Bangladesh,and it is meant for transportation BOTH WAYS,not one way.The way India is going to benefit from trade,is the same way Bangladesh is going to benefit too.Not only that,since the roadways is constructed in Bangladesh and NOT IN INDIA,hence the people of Bangladesh are going to benefit too apart from the trade benefits.Is it still unfair to expect Bangladesh to pay nearly HALF of the maintenance cost?Rather it should be more than half....

Why do you always expect alms from others?Dont be a crybaby,and expect somebody else to develop your own infrastructure.A loan is given,the amount is being doubled,after construction,a part of the maintenance cost will also be provided,apart from the trade benefits and better connectivity.

And now you expect all these things to come for totally free?? What else?? a private mansion with a swimming pool??