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Under $1.0b credit line-India wants early execution of two river transit projects
India wants early execution of two river transit projects
A high official of the shipping ministry said implementation of the projects was delayed because of Indian conditions which are against the interest of Bangladesh
Saturday May 26 2012 12:27:09 PM BDT
New Delhi wants Dhaka to complete two infrastructure projects under the Indian US$1.0 billion credit on a priority basis to help it start transportation of goods in full swing under the protocol on Inland Water Transit and Trade (PIWTT).(The Financial Express)
The projects are -- internal container river port at Ashuganj and Sarail-Brahmanbaria-Sultanpur-Akhaura-Senarbadi road which will cost about $70.05 million. Work on the projects has not yet started despite those were approved about two years ago.
Indian High Commission in Dhaka on behalf of the Ministry of External Affairs last week wrote a letter to the shipping and communication ministries of Bangladesh requesting them for early completion of the bidding process for the two projects so that the projects are completed within a year.
India has expressed concern that it could not start transporting goods in full swing under the Protocol on Inland Water Transit and Trade (PIWTT) for non-implementation of the two projects.
A high official of the shipping ministry said the slow pace of implementation of the projects has raised doubt among the Indian side about the completion of the projects within the tenure of the present government.
"Due to the uncertainty India now wants to see the early completion of the projects to ensure transporting goods to Northeast Indian States under the existing river protocol," the official said preferring anonymity.
Meanwhile, a Bangladesh delegation comprising mainly project directors and engineers will visit Delhi on June 6-7 to discuss implementation status of the projects under the Indian credit line.
Bangladesh and India signed agreement on US$1.0 billion India Line of Credit in August 2010 during the visit of Bangladesh Prime Minister Sheikh Hasina to India in January 2010.
But nearly two years after signing the credit line, no project has so far been completed under the credit. Bangladesh has received only $1.28 million for one project.
Sources said bureaucratic bottlenecks on the part of India as well as inefficiency of various Bangladesh ministries are responsible for slow implementation of the projects.
A high official of the shipping ministry said implementation of the projects was delayed because of Indian conditions which are against the interest of Bangladesh.
However, 15 projects -- mostly in the railway sector -- worth $750 million are in different phases of implementation, said an official of the finance ministry.
About 80 percent projects are aimed at easing transit-transhipment of goods between India states, Nepal and Bhutan through Bangladesh.
As many as 21 projects were taken up under the credit line, but in early April the government dropped six projects worth $250 million. Till now, the government has not decided about any replacement projects.
The $1.0 billion line of credit is the largest ever given by India to any country.
The main terms and conditions of the credit line agreement include 1.75 percent interest (fixed) per annum, 0.5 percent commitment fee per annum on unutilised credit after 12 months from the date of commercial contract approval, and 20 years' repayment period including a grace period of five years.
India wants early execution of two river transit projects
A high official of the shipping ministry said implementation of the projects was delayed because of Indian conditions which are against the interest of Bangladesh
Saturday May 26 2012 12:27:09 PM BDT
New Delhi wants Dhaka to complete two infrastructure projects under the Indian US$1.0 billion credit on a priority basis to help it start transportation of goods in full swing under the protocol on Inland Water Transit and Trade (PIWTT).(The Financial Express)
The projects are -- internal container river port at Ashuganj and Sarail-Brahmanbaria-Sultanpur-Akhaura-Senarbadi road which will cost about $70.05 million. Work on the projects has not yet started despite those were approved about two years ago.
Indian High Commission in Dhaka on behalf of the Ministry of External Affairs last week wrote a letter to the shipping and communication ministries of Bangladesh requesting them for early completion of the bidding process for the two projects so that the projects are completed within a year.
India has expressed concern that it could not start transporting goods in full swing under the Protocol on Inland Water Transit and Trade (PIWTT) for non-implementation of the two projects.
A high official of the shipping ministry said the slow pace of implementation of the projects has raised doubt among the Indian side about the completion of the projects within the tenure of the present government.
"Due to the uncertainty India now wants to see the early completion of the projects to ensure transporting goods to Northeast Indian States under the existing river protocol," the official said preferring anonymity.
Meanwhile, a Bangladesh delegation comprising mainly project directors and engineers will visit Delhi on June 6-7 to discuss implementation status of the projects under the Indian credit line.
Bangladesh and India signed agreement on US$1.0 billion India Line of Credit in August 2010 during the visit of Bangladesh Prime Minister Sheikh Hasina to India in January 2010.
But nearly two years after signing the credit line, no project has so far been completed under the credit. Bangladesh has received only $1.28 million for one project.
Sources said bureaucratic bottlenecks on the part of India as well as inefficiency of various Bangladesh ministries are responsible for slow implementation of the projects.
A high official of the shipping ministry said implementation of the projects was delayed because of Indian conditions which are against the interest of Bangladesh.
However, 15 projects -- mostly in the railway sector -- worth $750 million are in different phases of implementation, said an official of the finance ministry.
About 80 percent projects are aimed at easing transit-transhipment of goods between India states, Nepal and Bhutan through Bangladesh.
As many as 21 projects were taken up under the credit line, but in early April the government dropped six projects worth $250 million. Till now, the government has not decided about any replacement projects.
The $1.0 billion line of credit is the largest ever given by India to any country.
The main terms and conditions of the credit line agreement include 1.75 percent interest (fixed) per annum, 0.5 percent commitment fee per annum on unutilised credit after 12 months from the date of commercial contract approval, and 20 years' repayment period including a grace period of five years.
