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Indian $1.0b LoC- BR project cost goes up by 85pc

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Indian $1.0b LoC - BR project cost goes up by 85pc

Published : Sunday, 25 November 2012

FHM Humayan Kabir

Bangladesh has faced another operational hurdle to implementing a project under a US$ 1.0 billion Indian line of credit (LoC) as the selected Indian supplier has sought higher prices for supply of railway engines.

This has led to the government's hiking of the project cost by 85 per cent, officials said Saturday.

The officials of the Planning Commission (PC) said the Bangladesh Railway (BR) has sought an additional Tk 1.77 billion fund, 85 per cent higher than the original Tk 2.08 billion project cost, to procure 10 broad gauge (BG) diesel electric locomotives from India.

The high bidding price by the Indian railway engine (locomotive)-supplier has created problems for the government to implement the project under the Indian LoC, a senior PC official told the FE requesting anonymity.

Limited market (only India) for bidding and lack of proper feasibility studies before undertaking the project by the BR are the main reasons behind inflating its cost, he added.


Under the Indian LoC, the BR had undertaken a project, among several others, to procure 10 BG locomotives at a cost of Tk 2.08 billion to implement its railway modernisation project between August 2010 and June 2013.

Since the bidding price is much higher than the original official estimate, the BR has now sought revision of the project cost, raising it by Tk 1.77 billion to Tk 3.86 billion. It has also sought two and a half years additional time for completing the procurement of the locomotives from India.

A BR official, requesting not to be named, said since the Indian locomotive supplier has submitted the bid, involving higher costs than the projected level, and the rate of US dollar against the local currency (Taka) has also appreciated, the overall project cost has soared.

"Under the loan deal, we are bound to procure goods from India. We have no scope to go for any competitive international bidding process and judge the actual price of the railway engines," he told the FE.

As per terms and conditions of the Indian LoC, Bangladesh is obligated to procure at least 85 per cent of all goods, works and services from India.

The BR officials said they have already signed the commercial contract with one Indian locomotive-supplier to import 10 BG diesel electric locomotives.

The locomotives/engines will be added to the fleet of the struggling BR to offer better services to the passengers.

The state-owned BR has been faced, for long, with the problem of an inadequate number of engines as the expiry dates of most of its locomotives are over and many are being operated through overhauling even after completing their standard-operation age.

The government has undertaken some 13 projects in the railway sector under the one billion-dollar Indian LoC to improve its services.

Financial Express :: Financial Newspaper of Bangladesh
 
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This is full fledged indian looting by means of providing credit. Indian govt and institutions are sponsoring and pushing for this armed robbery on Bangladesh pointing Awami Leage goons on Bangladesh.
 
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This is full fledged indian looting by means of providing credit. Indian govt and institutions are sponsoring and pushing for this armed robbery on Bangladesh pointing Awami Leage goons on Bangladesh.

You are not supposed to be chooser, either get them or get nothing. Pakistan also buying/leasing them.
 
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This is full fledged indian looting by means of providing credit. Indian govt and institutions are sponsoring and pushing for this armed robbery on Bangladesh pointing Awami Leage goons on Bangladesh.

Its not our fault that Planning commission could not conduct a proper cost assessment.

Since the bidding price is much higher than the original official estimate, the BR has now sought revision of the project cost, raising it by Tk 1.77 billion to Tk 3.86 billion.
 
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Just chuck this if you sense corruption /cheating / fraud / monopoly. We Indians are too tired of Corruption and want no part of it.
 
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Sophisticated indian looting scheme got exposed, one hand indians are pushing high interest loan and on the other they are artificially inflating price by using ONLY india restriction. What an indian looting extravaganza. Hope Afghanistan and elsewhere people are taking notice of indian looting scam in the name of loan.
 
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Sophisticated indian looting scheme got exposed, one hand indians are pushing high interest loan and on the other they are artificially inflating price by using ONLY india restriction. What an indian looting extravaganza. Hope Afghanistan and elsewhere people are taking notice of indian looting scam in the name of loan.
Did not WB and malayasia want higher interest rate than India. Did India force you to take loan.
 
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Did not WB and malayasia want higher interest rate than India. Did India force you to take loan.

Yes, india forced the loan using stooge Awami league regime so that india can keep dumping its shoddy products no one interested taking.
 
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Yes, india forced the loan using stooge Awami league regime so that india can keep dumping its shoddy products no one interested taking.
First thing first, how much was the interest rate and it is higher than what?
 
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First thing first, how much was the interest rate and it is higher than what?

Interest rates are much lower as compared to China but you cant teach this to these jamati idiots
 
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First thing first, how much was the interest rate and it is higher than what?

nice try to divert the issue, india is looting artificially inflating price by using ONLY india restriction.
We can no tell interest rate history every time a new idiot comes along. Go search in the forum you will find thread on the topic.
 
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jamati here cant discuss with facts :lol:

because we all know whats their main agenda
 
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jamati here cant discuss with facts :lol:

because we all know whats their main agenda

bal thakarey's indian fundamentalists are upset after his demise but this not the place to be upset abou that. Indians can not deal with the fact that indian looting scheme came to surface. Now indians even afraid to see their ugly self.
 
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Can some BD faggot post some stats rather than usual tripes ?

1. India's interest rate is how much ?
2. How much is Indian loan's interest rate is more than the other options BD had ?
3. What was the cost of engines which India is providing to pakistan ?
 
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bal thakarey's indian fundamentalists are upset after his demise but this not the place to be upset abou that. Indians can not deal with the fact that indian looting scheme came to surface. Now indians even afraid to see their ugly self.

I dnt have any problem even all leaders of bjp got dead (sab sale chor hai) let forget thakre..
people like you make him big othewise he was not more then a common man

same one (jamati) post about higher interest rate of indian loan can he also post link to verify his claim or this is like daily jamat or sorry idiotic comment
 
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