India’s Exim Bank has sought a number of documents from Bangladesh before floating tenders for four approved projects under the second Indian Line of Credit (LoC). On August 31, the Exim Bank wrote a letter to the Bangladesh government seeking a number of documents, including procurement rules and regulations related to competitive bidding.
The Exim Bank sought confirmation of the eligible goods and services, including works under the projects, that would be exempt from all kinds of taxes and duties (except income tax), as mentioned in the relevant provisions contained in the double taxation avoidance agreement (DTAA) between India and Bangladesh, of any nature whatsoever,
levied in the borrowing country, including all value-added taxes (VAT), Customs duties, special levies and social security contributions for temporary employees deputed by the seller in relation to the execution of the contract in the borrower’s country. It has also sought draft bid documents and draft tender notices, along with clearly identified milestone activities, on completion of which payments are to be released, for approval of the Exim Bank, prior to the flotation of the tenders.
India gave approval to four projects in the communications sector, involving USD 430.14 million, to be covered under its fresh second USD 2-billion LOC offered to Bangladesh.
The regional head of India’s

Exim Bank, Tarun Sharma, sent a letter confirming the approval of the projects with an overall outlay of USD 528.52 million, comprising USD 430.14 million to be covered under the fresh LoC while the remaining USD 98.38 million would be funded by the Bangladesh government.
These four approved projects are: procurement of trucks for the Bangladesh Road Transport Corporation (BRTC) at an overall cost of USD 27.94 million, where the LoC portion would be USD 20.36 million; procurement of double-decker and single-decker AC and non-AC buses for BRTC for USD 74.66 million, including an LoC contribution of USD 55.83 million; upgrade of the Ashuganj river port-Sarail-Dharkhar-Akhaura land port road to a four-lane national highway at an overall cost of USD 338.77 million, including a USD 283.67-million LoC fund; and the construction of a new carriage workshop at Saidpur workshop, including a feasibility study, at an estimated cost of USD 87.15 million, featuring USD 70.28 million from the fresh Indian LoC.
Earlier, on March 9, the government signed an agreement with India’s Exim Bank to receive a USD 2-billion Indian LoC against 14 development projects in the country’s various sectors.
Under the second Indian LoC, 14 social and infrastructure development projects in the power, railways, road, transportation, information and communication technology (ICT), shipping, health and technical education sectors have been identified for implementation. The fresh USD 2-billion LoC is the biggest credit line that India has so far extended to any country.