TopCat
ELITE MEMBER
- Nov 20, 2008
- 15,736
- -3
- Country
- Location
Govt decides to drop 5 projects
The government has decided to drop five on-going projects which were included in the list for i
implementation, at a cost of US$411 million, under the US$1.0 billion Indian credit package.
The projects, mostly in the railway sector, will be dropped because of 'harder terms and conditions' of the credit, officials said Wednesday.
The ministry of finance (MoF) officials said three projects for railway development, one for dredger procurement and another one for upgrading of Bangladesh Standards and Testing Institution (BSTI) will not be included for financing under the credit line.
The decision was taken at a joint meeting of Finance Minister AMA Muhith, Railway Minister Suranjit Sengupta, Communications Minister Obaidul Quader and Shipping Minister Shajahan Khan last week, said an official.
"We have decided to withdraw four ongoing projects from the $1.0 billion Indian credit package. Another project will be replaced with a fresh one," a senior MoF official told the FE.
"Since the harder terms and conditions of the loan will stand in the way of implementation, we have decided to drop those five projects from the Indian billion dollar credit support", he added.
Some other projects under the ministry of communications (MoC) would be excluded from the Indian credit line, if New Delhi does not relax the terms and condition as per its earlier assurance, the official added.
Under the existing loan deal, Bangladesh will have to procure at least 85 per cent of goods, works and services from India under the $1.0 billion credit line. Only 15 per cent goods, works or services can be procured from Bangladesh if the contractors fail to source it from India.
Dhaka and New Delhi signed a $1.0 billion loan deal with Indian EXIM Bank in August 2010. Bangladesh has undertaken 20 projects under one billion dollar Indian credit.
The MoF official said the government in the last meeting decided to drop procurement of six dredgers at a cost of $140.02 million for the Bangladesh Water Development Board, Bangladesh Inland Water Transport Authority and Mongla Port Authority.
"Since the Indian dredger suppliers have quoted prices at almost double the estimated cost, the project implementation agencies are forced to cancel the bid. Therefore, the government has decided to drop the project," he said.
Besides, the MoF official said the Indian government has not given certification to one of its companies, selected for supplying metre-gauge (MG) passenger coaches under two Bangladesh Railway (BR) projects, which " has forced us to drop the project."
Besides, 125 BG passenger carriages under the $1.0 billion Indian credit line will be replaced with a fresh project - procurement of 70 BG AC passenger coaches at the same cost at $50.66 million.
The official said modernisation and strengthening of BSTI project which was due to be implemented at a cost of $10.63 million, has also been dropped from the $1.0 billion Indian credit package.
In the last meeting with the Indian officials, the Bangladesh side sought relaxation of some "tougher procurement conditions" for road development projects under the same aid credit package.
"New Delhi has sought one week's time. If the lender fails to respond within the deadline, we will scrap the four on-going road development project under its funding," a joint secretary at the MoF said.
The Indian government delegation, in a meeting in Dhaka last week, assured Bangladesh of relaxing procurement conditions for some projects under its US$1.0 billion credit line
Govt decides to drop 5 projects
---------- Post added at 06:50 PM ---------- Previous post was at 06:48 PM ----------
Something is going on behind the scence. Government hastily dropping all the projects under Indian credit. Last week they dropped 8 projects mainly of transit related. This week they just dropped half of the entire credit line. Togeter it is more than 70% of money not taking from India.
Fishy fishy....
The government has decided to drop five on-going projects which were included in the list for i
implementation, at a cost of US$411 million, under the US$1.0 billion Indian credit package.
The projects, mostly in the railway sector, will be dropped because of 'harder terms and conditions' of the credit, officials said Wednesday.
The ministry of finance (MoF) officials said three projects for railway development, one for dredger procurement and another one for upgrading of Bangladesh Standards and Testing Institution (BSTI) will not be included for financing under the credit line.
The decision was taken at a joint meeting of Finance Minister AMA Muhith, Railway Minister Suranjit Sengupta, Communications Minister Obaidul Quader and Shipping Minister Shajahan Khan last week, said an official.
"We have decided to withdraw four ongoing projects from the $1.0 billion Indian credit package. Another project will be replaced with a fresh one," a senior MoF official told the FE.
"Since the harder terms and conditions of the loan will stand in the way of implementation, we have decided to drop those five projects from the Indian billion dollar credit support", he added.
Some other projects under the ministry of communications (MoC) would be excluded from the Indian credit line, if New Delhi does not relax the terms and condition as per its earlier assurance, the official added.
Under the existing loan deal, Bangladesh will have to procure at least 85 per cent of goods, works and services from India under the $1.0 billion credit line. Only 15 per cent goods, works or services can be procured from Bangladesh if the contractors fail to source it from India.
Dhaka and New Delhi signed a $1.0 billion loan deal with Indian EXIM Bank in August 2010. Bangladesh has undertaken 20 projects under one billion dollar Indian credit.
The MoF official said the government in the last meeting decided to drop procurement of six dredgers at a cost of $140.02 million for the Bangladesh Water Development Board, Bangladesh Inland Water Transport Authority and Mongla Port Authority.
"Since the Indian dredger suppliers have quoted prices at almost double the estimated cost, the project implementation agencies are forced to cancel the bid. Therefore, the government has decided to drop the project," he said.
Besides, the MoF official said the Indian government has not given certification to one of its companies, selected for supplying metre-gauge (MG) passenger coaches under two Bangladesh Railway (BR) projects, which " has forced us to drop the project."
Besides, 125 BG passenger carriages under the $1.0 billion Indian credit line will be replaced with a fresh project - procurement of 70 BG AC passenger coaches at the same cost at $50.66 million.
The official said modernisation and strengthening of BSTI project which was due to be implemented at a cost of $10.63 million, has also been dropped from the $1.0 billion Indian credit package.
In the last meeting with the Indian officials, the Bangladesh side sought relaxation of some "tougher procurement conditions" for road development projects under the same aid credit package.
"New Delhi has sought one week's time. If the lender fails to respond within the deadline, we will scrap the four on-going road development project under its funding," a joint secretary at the MoF said.
The Indian government delegation, in a meeting in Dhaka last week, assured Bangladesh of relaxing procurement conditions for some projects under its US$1.0 billion credit line
Govt decides to drop 5 projects
---------- Post added at 06:50 PM ---------- Previous post was at 06:48 PM ----------
Something is going on behind the scence. Government hastily dropping all the projects under Indian credit. Last week they dropped 8 projects mainly of transit related. This week they just dropped half of the entire credit line. Togeter it is more than 70% of money not taking from India.
Fishy fishy....
