The implementation of six projects under the first Indian Line of Credit (LoC) is being delayed as the implementing agencies are facing different challenges, according to sources concerned. Howevers, eight of the 15 projects under the first LoC of USD 800 million have already been completed, and one almost complete, according to the minutes of an LoC review meeting held at the Economic Relations Division (ERD) on December 10.
The six projects facing problems are: construction of the Khulna–Mongla port rail line, including the feasibility study (USD 308.92 million); construction of the second Bhairab and second Titas bridges with approach road rail lines (USD 102.9 million); construction of the third and fourth dual-gauge track between the Dhaka¬ and Tongi sections and doubling of the dual-gauge track between the Tongi and Joydevpur sections, including signalling work on Bangladesh Railway (BR) (USD 123.1 million); renovation of the Khulna– Shahbajpur section of BR (USD 78.1 million); replacement and modernisation of the signalling and interlocking system of three stations of the Ashuganj–Akhaura section in the east zone of BR (USD 3.63 million); and modernisation and strengthening of the Bangladesh Standards and Testing Institution (BSTI) (USD 2.47 million).
About the Khulna–Mongla port rail line, the implementing agency said land acquisition took time as land was handed over by the deputy commissioner’s (DC) office, Khulna, on November 3, 2016 and by the Bagerhat DC office on January 1, 2017. The contractor was given the work order on March 9, 2017, and the contractor mobilised manpower at the site on June 5. The contractor IRCON is solely dependent on subcontractors (eight for track and four for station buildings, bridges and culverts). Most of the subcontractors are not experienced. The subcontractor (10–20 km) has not done any work in the past six months from May to Oct 2017. It was removed in November 2017. Hence, the target for the commissioning of the Phultala–Mohammadnagar section is being doubted.
It is alleged that IRCON did not mobilise equipment at the site except six transit mixers. They are fully dependent on subcontractors. The quantity of equipment is very low in comparison with the requirements and, so, more equipment is required.
According to the BR, the consultants are not mobilising manpower as per the contract, there are delays in the issuance of good for construction (GFC) and other drawings, and there are discrepancies in drawings and bill of quantities (BOQ) and tender documents.
Even survey data provided by the consultant did not match the alignment of the design stage. No reference point is available at the site. Besides, the alignment of the Rupsha did not match the land acquired as per advice of the consultant as well as initiatives for the land acquisition of the station approach road are not satisfactory.
Regarding the construction of the second Bhairab and second Titas Bridges with approach rail lines, the BR said a revised variation order has not yet been submitted by the consultant for further necessary action. However, it noted that at present, the works have been completed, barring signalling work at Ashuganj station. The variation order is under process, it said, adding that the final bill will be paid to the contractor after the approval of variation.
With regard to the construction of third and fourth dual-gauge track between Dhaka and Tongi sections and the doubling of the dual-gauge track between Tongi and Joydevpur sections, including signalling works on the BR, it said the project cost—inclusive of other unforeseen contingencies to be involved during the execution of the work—may be increased to some extent.
Besides, it is also to be noted that the proposed stretch of the alignment is situated in the main busy area of the capital Dhaka and its suburban areas, Tongi and Joydebpur. As such, taking into account the stated reality, the project work deems to have been evaluated.
With reference to the modernisation and strengthening of the BSTI, the implementing agency said the project period is over but the supply is yet to be completed. Among 136 type of equipment, 102 types have been received by the BSTI committee. Similarly, among 200 types of chemicals, 200 have been received. Among 160 types of glassware, only 91 types have been received by the committee. The total price of the equipment and other instruments received is USD 1,237,232.51.
It also suggested that India’s Exim Bank and the Indian High Commission can take proper steps to recover the over-payment amount. Besides, the contractor needs to be brought to book for failing to ensure timely supplies, it noted.
Meanwhile, Indian Prime Minister Narendra Modi during his maiden visit to Dhaka on June 2015 announced the second LoC of $2 billion. Later, Bangladesh government and Indian Exim Bank reached a loan deal on March 9, 2016.
On October 4 this year, Bangladesh signed a USD 4.5-billion loan deal with India for the third Line of Credit (LoC) agreement. This amount will be used for 17 priority infrastructure projects, including electricity, railroads, roads, shipping and ports. This is the biggest ever credit India has given to Bangladesh. The deal was announced during Prime Minister Sheikh Hasina’s visit to India in April.
Under the Indian LoC agreements, Bangladesh will pay an interest rate of 1 per cent a year. It will have 20 years to pay back the loans, with a grace period of five years.