The Export-Import Bank of India (Exim Bank) has asked the Bangladesh government to utilise the second Indian line of credit (LoC) worth USD 2 billion, the agreement of which was signed between the bank and the Bangladesh government for implementation of various social and infrastructure development projects. In a letter dated May 30, a copy of which has been obtained by The Independent, the Exim Bank urged the Economic Relations Division (ERD) to utilise the second LoC.
In response the letter, the Prime minister’s office (PMO) directed the Bangladesh Economic Zone Authority (BEZA) to work as per suggestion of Exim Bank of India. PMO asked the BEZA on June 23. A senior official of Economic Relation Division (ERD) admitted said they referred the letter to the PMO for further direction. He also said they will work as per direction from the PMO. “We hope that the LOC would be utilised soon, and as per the delivery schedule or completion of contract, the schedule of individual contracts may be approved under the LOC,” reads the letter. The bank also stressed that that disbursements under the LOC need to be completed within the terminal disbursement period, “which will expire at the end of 48 months from the scheduled completion date specified in the Eligible Contract… and 72 months from the date of execution of the Credit Agreement, and March 8, 2022, in case of other supply contracts”.
It wanted the Bangladesh government to widely publicise the tender, “inviting bids for the eligible contract, through websites or any other suitable media in Bangladesh and India, including the websites of Exim Bank,” and of “bank and industry associations in India, and also publish them in leading newspapers in the interest of greater transparency and cost competitiveness.” Under the LOC agreement, it said: “The Government of Bangladesh may kindly consider appointing Indian PMC for the projects proposed to be covered under the LOC, through the process highlighted in Para 5 above.” According to the Exim Bank’s proposal, in case of large and complex contracts, the project management consultant (PMC) may be appointed by the Bangladesh government from its own resources, and in such cases, it may opt for any consultant of its choice.