China keeps mum over Padma rail link funding
JAGARAN CHAKMA
The government is facing a funds crisis to implement the Padma rail link project this fiscal year as the Chinese government is yet to respond to Dhakas request. Bangladesh had urged China to accord the utmost priority to the Padma Bridge Rail Link Project in the economic cooperation programme between the two countries, and accordingly arrange necessary funds for this project in 2017. According to sources in the railway ministry, the Prime Ministers Office (PMO) and the finance minister wrote separate letters to Chinas president Xi Jinping and commerce minister, requesting speedy funding for the project.
Under such circumstances, the secretary of the rail ministry, Md. Firoz Salah Uddin, wrote to the planning secretary, Md Ziaul Islam, to allocate Tk. 2,742.13 crore for the project, which was scheduled to be allotted from foreign assistance. The ministry demanded a total amount of Tk. 5,124.43 crore this fiscal year, of which Tk. 3,481.73 crore would come from government funding, Tk. 2,742.13 crore from foreign assistance and the remaining Tk. 739.60 crore from a government matching fund.
The rail secretary pointed out that if they were not able to obtain the necessary funds, the performance of their annual development programme (ADP) would decline by 36 per cent this fiscal year.
He further said there has been no progress on credit agreement with the Exim Bank of China despite the correspondence regarding the issue at the high levels of government.
Earlier, the PMO wrote to the Chinese president, Xi Jinping: As desired by the Honble Prime Minister of Bangladesh, train services will be opened through the Padma Multipurpose Bridge on the same day that the Bridge is completed and opened, the letter said, adding: To achieve such a target, the project has been listed as a Fast-Track Project of the government of Bangladesh and is, therefore, under the direct supervision of the Prime Minister of Bangladesh.
On November 25, Prime Minister Sheikh Hasina approved certain steps
to expedite the signing of the credit deal arrangement for the project.
The Economic Relations Department (ERD) sent a loan proposal of USD 3,138.75 million to the Chinese embassy in Dhaka on 15 September 2016. Once constructed, this railwayfor the first time in the history of Bangladeshwill directly link the capital city Dhaka with the south-western region of Bangladesh, the letter said.
This project is included in theMemorandum of Understanding on Strengthening Investment and Production Capacity Cooperation, which was signed by Chinas commerce minister and Bangladeshs finance minister on 14 October 2016, when Xi Jinping visited Bangladesh.
Moreover, Bangladesh has asked China Railway Group Ltd (CREC) to start construction of the 15-km-long Padma Bridge rail link from Dhaka to Jessore district, sources in Bangladesh Railway said. On August 8 last year, the government signed an agreement with a Chinese construction company to implement the Padma Bridge Rail Link Project. CREC, a Chinese state-owned firm, has been awarded the contract, worth USD 4.44 billion, to build a railway line passing through Bangladeshs largest bridge, currently under construction.
