Financial pacts unlikely this fiscal year

Thanks to bureaucratic tangles, Bangladesh is unlikely to sign financial agreements for several highly probable projects with China, in the outgoing fiscal year, even though they had been targeted. The government had set a target to sign financial agreements for five projects with China in FY 2015–16, amounting to USD 1,490.7 million. The projects are—procurement of six vessels for the Bangladesh Shipping Corporation, under the shipping ministry (for USD 184 million); establishment of a National Tier-4 Data Centre (worth USD 153 million); construction of a tunnel under the Karnaphuli (involving USD 702.64 million); the Dasherkandi sewerage treatment plant (involving USD 280 million); and development of a national ICT intra-network for the Bangladesh government (Phase III) (worth USD 169.56 million). According to an official of the finance ministry, there is no possibility of signing any agreement within this fiscal year, although a target has been set. The official admitted that bureaucratic problems on both sides were the main reason why the agreements were not being signed this fiscal year. However, the official added that commercial agreement contracts have been signed for four projects out of five, and negotiations were going on for the last one. The commercial contracts were signed on April 30, 2015, for procurement of six vessels (USD 184 million) for the Bangladesh Shipping Corporation, under the shipping ministry, and a loan application has been sent to the Exim Bank of China. The official said a draft framework and loan agreement have been received for establishing a National Tier-4 Data Centre. The loan agreement is being processed, he said.
Negotiations for a commercial contract for the construction of the tunnel under the Karnaphuli are being held, while the loan application has been sent to the Exim Bank of China.
Meanwhile, the Executive Committee of the National Economic Council (ECNEC), yesterday, endorsed the much-anticipated construction of a multi-lane road tunnel under the Karnaphuli in Chittagong, at an estimated cost of Tk. 8,446.64 crore. The tunnel is expected to vastly improve the communication systems of the port city.
The Karnaphuli tunnel—govt’s dream project—once implemented, would improve connectivity with Ctg and Cox’s Bazar. Of the total outlay of Tk. 8,446.64 crore for this project, the government will provide Tk. 3,647.20 crore, while the remaining Tk. 4,799.44 crore will come from China, as project assistance.
The project will serve multiple purposes, including making Chittagong a centre of communications, developing the communications system of the Dhaka–Chittagong–Cox’s Bazar National Highway, creating a link with the Asia Highway Network, improving communications on both sides of the river, reducing the pressure of traffic on the two existing bridges, and building ‘One City Two Towns’, à la Shanghai and Hong Kong in China.
The project will be implemented by June 2020, by the Bangladesh Bridges Authority under the road transport and bridges ministry. In June 2015, the road transport and bridges ministry had inked a deal with China Communication Construction Company Ltd (CCCC) for construction of a two-lane tunnel under the Karnaphuli.

Financial pacts unlikely this fiscal year

Thanks to bureaucratic tangles, Bangladesh is unlikely to sign financial agreements for several highly probable projects with China, in the outgoing fiscal year, even though they had been targeted. The government had set a target to sign financial agreements for five projects with China in FY 201516, amounting to USD 1,490.7 million. The projects areprocurement of six vessels for the Bangladesh Shipping Corporation, under the shipping ministry (for USD 184 million); establishment of a National Tier-4 Data Centre (worth USD 153 million); construction of a tunnel under the Karnaphuli (involving USD 702.64 million); the Dasherkandi sewerage treatment plant (involving USD 280 million); and development of a national ICT intra-network for the Bangladesh government (Phase III) (worth USD 169.56 million). According to an official of the finance ministry, there is no possibility of signing any agreement within this fiscal year, although a target has been set. The official admitted that bureaucratic problems on both sides were the main reason why the agreements were not being signed this fiscal year. However, the official added that commercial agreement contracts have been signed for four projects out of five, and negotiations were going on for the last one. The commercial contracts were signed on April 30, 2015, for procurement of six vessels (USD 184 million) for the Bangladesh Shipping Corporation, under the shipping ministry, and a loan application has been sent to the Exim Bank of China. The official said a draft framework and loan agreement have been received for establishing a National Tier-4 Data Centre. The loan agreement is being processed, he said. Negotiations for a commercial contract for the construction of the tunnel under the Karnaphuli are being held, while the loan application has been sent to the Exim Bank of China. Meanwhile, the Executive Committee of the National Economic Council (ECNEC), yesterday, endorsed the much-anticipated construction of a multi-lane road tunnel under the Karnaphuli in Chittagong, at an estimated cost of Tk. 8,446.64 crore. The tunnel is expected to vastly improve the communication systems of the port city. The Karnaphuli tunnelgovts dream projectonce implemented, would improve connectivity with Ctg and Coxs Bazar. Of the total outlay of Tk. 8,446.64 crore for this project, the government will provide Tk. 3,647.20 crore, while the remaining Tk. 4,799.44 crore will come from China, as project assistance. The project will serve multiple purposes, including making Chittagong a centre of communications, developing the communications system of the DhakaChittagongCoxs Bazar National Highway, creating a link with the Asia Highway Network, improving communications on both sides of the river, reducing the pressure of traffic on the two existing bridges, and building One City Two Towns, la Shanghai and Hong Kong in China. The project will be implemented by June 2020, by the Bangladesh Bridges Authority under the road transport and bridges ministry. In June 2015, the road transport and bridges ministry had inked a deal with China Communication Construction Company Ltd (CCCC) for construction of a two-lane tunnel under the Karnaphuli.