Govt to drop 5 projects

Projects for next Indian LOC

The government will drop five projects from the list of 26 included for the next Indian Line of Credit (LoC), which is likely to be signed during Prime Minister Sheikh Hasina’s visit to the neighbouring country within a couple of months. The projects were worth over USD 1 billion. The decision came in the wake of the concerned ministries’ reservations in implementing these projects under the Indian LoC, sources in the ministries concerned said. The projects are the designing and building of broad-gauge railway line from Bhanga to Barisal and feasibility study from Barisal to Payra seaport ($514.14 million), the upgrade of Khulna airport (USD 100 million), Payra port dry bulk coal terminal (USD 300 million), the Bay container terminal in Chittagong (no estimate yet), and the procurement of 30 broad-gauge locomotives (USD 150 million).
However, eight projects out of the 26 have already been decided to be implemented under the next LoC as the  ministries concerned have given their consent. The decisions on 13 other projects are pending and will be informed to the Economic Relations Division (ERD).
About the Payra port dry bulk coal terminal, the shipping ministry said it has no interest in implementing the project under Indian LoC as the project is now under the foreign direct investment (FDI) method.
According to ministry sources, a dry bulk terminal on 500 acres will be developed by the end of 2018 to help import 40 million tonnes of coal per year for up to eight planned coal-fired power plants. This terminal will also facilitate the import of limestone for desulphurisation. The facility will handle other dry bulk cargoes like cement clinkers.
Regarding the Bay container terminal (Chittagong), the ministry said that Asian Development Bank (ADB) has agreed to finance the project. Hence, they are not interested in implementing the project under Indian LoC.
The Chittagong Port Authority (CPA) is moving ahead with the process of implementing the much-awaited Bay terminal project and procuring equipment at the earliest. The Bay terminal on Patenga coast is a priority project. The capacity of the port must be enhanced to cope with the increasing volume of trade and economic advancement of the country, say insiders. About the designing and building of the broad-gauge railway line from Bhanga to Barisal and the feasibility study from Barisal to Payra seaport, the railway ministry said it wants to implement the projects under the public-private partnership method. Sources said the China Civil Engineering and Construction Corporation is also interested in building the railway line. In early-2015, Bangladesh signed an agreement with a Chinese construction firm to set up a broad-gauge railway line from Bhanga to Barisal. The railway ministry also said it has no plan to procure a locomotive at this moment. Besides, the civil aviation ministry wants to upgrade Khulna airport under the PPP model instead of with Indian funds.

 

Govt to drop 5 projects

Projects for next Indian LOC

The government will drop five projects from the list of 26 included for the next Indian Line of Credit (LoC), which is likely to be signed during Prime Minister Sheikh Hasinas visit to the neighbouring country within a couple of months. The projects were worth over USD 1 billion. The decision came in the wake of the concerned ministries reservations in implementing these projects under the Indian LoC, sources in the ministries concerned said. The projects are the designing and building of broad-gauge railway line from Bhanga to Barisal and feasibility study from Barisal to Payra seaport ($514.14 million), the upgrade of Khulna airport (USD 100 million), Payra port dry bulk coal terminal (USD 300 million), the Bay container terminal in Chittagong (no estimate yet), and the procurement of 30 broad-gauge locomotives (USD 150 million). However, eight projects out of the 26 have already been decided to be implemented under the next LoC as the ministries concerned have given their consent. The decisions on 13 other projects are pending and will be informed to the Economic Relations Division (ERD). About the Payra port dry bulk coal terminal, the shipping ministry said it has no interest in implementing the project under Indian LoC as the project is now under the foreign direct investment (FDI) method. According to ministry sources, a dry bulk terminal on 500 acres will be developed by the end of 2018 to help import 40 million tonnes of coal per year for up to eight planned coal-fired power plants. This terminal will also facilitate the import of limestone for desulphurisation. The facility will handle other dry bulk cargoes like cement clinkers. Regarding the Bay container terminal (Chittagong), the ministry said that Asian Development Bank (ADB) has agreed to finance the project. Hence, they are not interested in implementing the project under Indian LoC. The Chittagong Port Authority (CPA) is moving ahead with the process of implementing the much-awaited Bay terminal project and procuring equipment at the earliest. The Bay terminal on Patenga coast is a priority project. The capacity of the port must be enhanced to cope with the increasing volume of trade and economic advancement of the country, say insiders. About the designing and building of the broad-gauge railway line from Bhanga to Barisal and the feasibility study from Barisal to Payra seaport, the railway ministry said it wants to implement the projects under the public-private partnership method. Sources said the China Civil Engineering and Construction Corporation is also interested in building the railway line. In early-2015, Bangladesh signed an agreement with a Chinese construction firm to set up a broad-gauge railway line from Bhanga to Barisal. The railway ministry also said it has no plan to procure a locomotive at this moment. Besides, the civil aviation ministry wants to upgrade Khulna airport under the PPP model instead of with Indian funds.