India disburses last tranche
$200 million grant
JAGARAN CHAKMA
The Indian government has disbursed the last tranche of the USD 200 million grant that could be utilised for the Padma Multi-Purpose Bridge (PMB) project.
Indias High Commissioner in Dhaka handed over a cheque for USD 15 million to the Government of Bangladesh on May 10, before the visit of Prime Minister Narendra Modi.
Senior secretary of the Economic Relations Division, Mohammad Mejbauddin, told The Independent: We can use it for the PMB. The final decision lies with the government, he said.
He said there is no condition and specific guideline to utilise the USD 200 million grant out of the USD 1 billion line of credit (LoC) earmarked for Bangladesh.
The ERD secretary also said implementation of the new LoC will be faster compared to the earlier LoC as the projects have already been earmarked.
Mejbauddin said over four years since the signing of a loan agreement with India for implementing various development projects in Bangladesh, seven out of 15 projects under the USD 800 million Indian LoC have been completed, according to a progress update of India.
About the disbursement, he said over USD 400 million out of the earlier USD 1 billion LoC, including the USD 200 million grant, has been received.
India extended a USD 1 billion credit line to Bangladesh for developing infrastructure projects, mostly in the communications sector. The loan agreement between the EXIM Bank of India and the Economic Relations Division (ERD) of the ministry of finance was signed in August 2010.
India also converted USD 200 million out of the USD 1 billion LoC as grant assistance in June 2012 during the visit of then finance minister and presently President of India, Pranab Mukherjee, enabling Bangladesh to utilise it for any priority project.
As per the progress report on the Indian LoC as of August 31, 2014 prepared by the ERD, the seven completed projects are: Procurement of double-decker, single-decker AC and articulated buses for the Bangladesh Road Transport Corporation (BRTC) (LoC of USD 36.85 million); procurement of 180 (165) broad-gauge (BG) tank wagons and six bogies of brake vans (USD 17.38 million); procurement of 50 units of metre-gauge (MG) flat wagons (BFCT) and 5 units of MG brake vans with air brakes for carrying containers (USD 3.28 million); procurement of 30 (16) units of BG diesel
electric (DE) locomotives (USD 60.95 million); procurement of 10 units of BG DE locomotives (LoC of USD 33.05 million); procurement of 100 (81) units of MG bogies of tank wagons and five units of MG brake vans with air brakes and air brake equipment for carrying aviation fuel (USD 7.43 million); procurement of 170 units of MG flat wagons (BFCT) and 11 units of MG bogie brake vans (BBVs) with air brake systems for carrying containers (LoC of USD 10.73 million).
Of the total 15 projects, land has to be acquired for construction of the Khulna-Mongla port rail line, including a feasibility study. The first phase of the feasibility study has been completed and tender is under process.
The report says the project cost is likely to increase to USD 288 million from USD 175 million due to the settlement of alignment and construction of the Rupsha bridge and land acquisition.
The report also says 14 projects will be completed within the stipulated time. This Indian credit line is so far the single largest offered by India to any country. The agreement provides for credit at a 1.75 per cent interest rate, with a repayment period of 20 years, including a grace period of five years. The rate of interest was later revised to 1 per cent in May 2012.
