China joins race for Dhaka metro-rail building

[bluesky]

25 Oct 2016, 00:10:12 | Updated : 25 Oct 2016, 10:22:22

China joins race for metro-rail building
Indian, Thai firms submit bids also
Munima Sultana
China, which is building Bangladesh's biggest bridge and broad highways, is lately dominating the bidding process for construction of the country's first metro-rail in the capital.

Official sources said two Chinese, one Thai and two Indian companies submitted their proposals on the closing day for submission of request for proposals (RfP) for three packages on October 18 and on September 28. A Japanese firm which came first and crossed the threshold for the metro-rail job backtracked in the end.

The sources said all the shortlisted companies in three packages of work plan, excepting the Japanese one, submitted their proposals. Tokyu Construction of Japan, which pre-qualified for contract packages (CPs) 3 and 4, refrained from laying its stake.

Three companies, two of them Chinese, participated in the RfP for CP-2 which was called to construct necessary infrastructures on the depot land in Uttara.

In the CP 3 and 4, four companies were declared prequalified but three finally submitted their proposals for constructing the first 10 kilometres of the elevated metro-rail track from Uttara to Agargaon.

Two other companies - Simplex, and Larson and Turbo-are participating in the bidding. Both are from India. The first one is vying for CP 2 and the second one (Larson and Turbo) for CP 3 and 4.

China Harbour Engineering Company has participated in all three packages while Sino Hydro Corporation formed a joint venture with Thailand's Italian-Thai Development for the CP-2. The Thai company is also participating in the CP 3 and 4.

The firms of China-the neo-rich nation which has held out pledges for providing billions of dollars for bankrolling Bangladesh's development recipe during the recent Dhaka visit of President Xi Jinping-are now learnt to be dominating the biddings for all the three packages of metro works.

Chinese builders are presently constructing the Padma Multipurpose Bridge and completed two four-lane highways between Dhaka and Chittagong and Dhaka and Mymensingh. Beijing also struck a deal for another four-lane highway on the Dhaka-Sylhet route under the latest aid package.

The Dhaka Mass Rapid Transit Development (DMRTD) Project invited request for proposals for its contract packages 2, 3, and 4 providing scope for the interested companies to give proposals jointly for CP3 and CP4.

Prequalification process for the CP2 began on August 30, 2015 and CP 3 and 4 on June 30, 2015.

The project authority had already called biddings for all of eight packages but awarded its first contract to Tokyu Construction for the development of Uttara depot land on March 27.

Officials said prequalification process for CP 5 and 6 is now going on while evaluation of RfPs for CP 7 and 8 is underway.

The metro-rail, officially known as mass rapid transit line-6 (MRT-6), will run from Uttara to Motijheel to facilitate more than 60,000 daily passengers crossing 20 kilometres uninterrupted over the capital city, wherein traffic now hits impasse at many places along the way.

Japan International Cooperation Agency has been providing necessary supports, including technical and financial, for implementing the long-planned project. The government has set the target to inaugurate the first 10-km MRT line end of 2019.

 

[Mage]

Good. Once we've connected the whole Dhaka through metro rails, we can then ban rickshaw from Dhaka. Hopefully it can be accomplished by 2025.

 

[bluesky]

Above are the 3 different and separate routes proposed and finalized by the BD authorities. The picture is not very clear, so someone may volunteer to send some more informative pictures. I was little worried about the future of the entire metro-rail project after the Gulshan killing. The Japanese main bidder has refrained from bidding, but JICA is certainly financing the project.

I would certainly like to have a Japanese company to participate in this important 1st time project. Japan and its design/construction companies have more than 150 years of experience in railroad construction. Japan also built its first Subway, Ginza Line, even before the beginning of 2nd WW in 1940. Only the day before yesterday I used this line.

 

[Shotgunner51]

Good news

 

[bd_4_ever]

Its pretty much a no-brainer that the Chinese would get it.

 

[Bilal9]

Above are the 3 different and separate routes proposed and finalized by the BD authorities. The picture is not very clear, so someone may volunteer to send some more informative pictures. I was little worried about the future of the entire metro-rail project after the Gulshan killing. The Japanese main bidder has refrained from bidding, but JICA is certainly financing the project.

I would certainly like to have a Japanese company to participate in this important 1st time project. Japan and its design/construction companies have more than 150 years of experience in railroad construction. Japan also built its first Subway, Ginza Line, even before the beginning of 2nd WW in 1940. Only the day before yesterday I used this line.

Here's a bigger one, MRT Line 6 (Blue) will be built first and completed by 2019.....

 

[TopCat]

Here's a bigger one, MRT Line 6 (Blue) will be built first and completed by 2019.....

This is the old route. The new routes are different which incliudes purbachal and other places.

 

[kobiraaz]

Given India has dozens more metro rail and dozens more to come compared to one extremely tiny metro coming into BD, its like you laughing at Indians being richer and more developed than you. I dont think the average paddy peon or RMG sweatshop slave would find it a laughing matter.

20 km metro for population of Dhaka. What a terrible joke. Just like the rest of the "infrastructure" in Dhaka that makes it one of the bottom 3 liveable cities in the world...along with warzones and sub-saharan crapholes.

You are comparing BD with India. And I was comparing You with China and Japan. Seems like I overestimated you..Ok You win

 

[bluesky]

You are a loan-dependent and tiny market.

In Bengali we say "Shomudre Shoyon Jar, Shishirete Bhoy Ki Tar." When India is crying high in the deep sea of foreign loans and credits, you guys are here are weeping for BD with only a meter thick of fog-like loan. Please do not mislead people with your fictitious information on BD economic conditions. Do not please cry when you read the article below:

External debt up 13 p.c. at $390 bn

PTI Graphics
India's external debt.

TOPICS
economy, business and finance

India’s external debt rose by nearly 13 per cent to $390 billion in 2012-13, mainly due to rise in short-term trade credit and external commercial borrowings (ECBs) in the back of high current account deficit, the Reserve Bank said on Thursday.

“The high current account deficit witnessed during 2012-13 and it’s financing increasingly through debt flows particularly by trade credit resulted in significant rise in India’s external debt during 2012-13,” RBI said in a release.

The increase in the debt during 2012-13 was primarily on account of rise in short-term trade credit. There has been sizeable rise in ECBs and rupee denominated NRI deposits as well, it said.

“However, magnitude of increase in external debt was offset to some extent due to valuation change (gain) resulting from appreciation of US dollar against Indian rupee and other international currencies,” the RBI added.

The total external debt was about $345.5 billion at end-March 2012.

RBI further said that excluding the valuation change due to the movement of U.S. dollar against major international currencies and rupee, the external debt as at end-March 2013 would have increased by $55.8 billion. However, the actual increase was lower at $44.6 billion.

As per the data, share of ECBs ($120.9 billion) continued to be highest at 31 per cent of the total debt, followed by short term debt (24.8 per cent) and NRI deposits (18.2 per cent).

Trade credit components of external debt (both long-term and short-term) showed an increase of $20.3 billion during the period.

The NRI deposits increased by $12.2 billion to $70.8 billion as at end-March 2013 primarily on account of increase in rupee denominated NRI deposits reflecting the impact of deregulation of interest rates on these deposits in December 2011, RBI added.

As far as the currency composition of the debt is concerned, the U.S. dollar denominated debt continued to be the largest component with a share of 57.2 per cent, followed by rupee (24 per cent), SDR (7.5 per cent), Japanese yen (6.3 per cent) and euro (3.5 per cent).

The ratio of foreign exchange reserves to external debt as at end-March 2013 at 74.9 per cent was lower than the level of end-March 2012 (85.2 per cent).

Keywords: external debt, Reserve Bank of India, RBI release, external commercial borrowings

 

[Nilgiri]

In Bengali we say "Shomudre Shoyon Jar, Shishirete Bhoy Ki Tar." When India is crying high in the deep sea of foreign loans and credits, you guys are here are weeping for BD with only a meter thick of fog-like loan. Please do not mislead people with your fictitious information on BD economic conditions. Do not please cry when you read the article below:

External debt up 13 p.c. at $390 bn

PTI Graphics
India's external debt.

TOPICS
economy, business and finance

India’s external debt rose by nearly 13 per cent to $390 billion in 2012-13, mainly due to rise in short-term trade credit and external commercial borrowings (ECBs) in the back of high current account deficit, the Reserve Bank said on Thursday.

“The high current account deficit witnessed during 2012-13 and it’s financing increasingly through debt flows particularly by trade credit resulted in significant rise in India’s external debt during 2012-13,” RBI said in a release.

The increase in the debt during 2012-13 was primarily on account of rise in short-term trade credit. There has been sizeable rise in ECBs and rupee denominated NRI deposits as well, it said.

“However, magnitude of increase in external debt was offset to some extent due to valuation change (gain) resulting from appreciation of US dollar against Indian rupee and other international currencies,” the RBI added.

The total external debt was about $345.5 billion at end-March 2012.

RBI further said that excluding the valuation change due to the movement of U.S. dollar against major international currencies and rupee, the external debt as at end-March 2013 would have increased by $55.8 billion. However, the actual increase was lower at $44.6 billion.

As per the data, share of ECBs ($120.9 billion) continued to be highest at 31 per cent of the total debt, followed by short term debt (24.8 per cent) and NRI deposits (18.2 per cent).

Trade credit components of external debt (both long-term and short-term) showed an increase of $20.3 billion during the period.

The NRI deposits increased by $12.2 billion to $70.8 billion as at end-March 2013 primarily on account of increase in rupee denominated NRI deposits reflecting the impact of deregulation of interest rates on these deposits in December 2011, RBI added.

As far as the currency composition of the debt is concerned, the U.S. dollar denominated debt continued to be the largest component with a share of 57.2 per cent, followed by rupee (24 per cent), SDR (7.5 per cent), Japanese yen (6.3 per cent) and euro (3.5 per cent).

The ratio of foreign exchange reserves to external debt as at end-March 2013 at 74.9 per cent was lower than the level of end-March 2012 (85.2 per cent).

Keywords: external debt, Reserve Bank of India, RBI release, external commercial borrowings

External debt only matters as a ratio of GDP stupid. You going to say India is doing a lot better than US and Japan because it has much lower debt/GDP ratio?

So yes BD is highly debt-dependent given it has NO other investment stream. Its FDI is tiny and does not look to change at all. No one is simply interested in shouldering any risk because of BD junk credit rating, poor human capital and LDC status. Its all loans that BD has to pay back with interest....and even that is very tiny amounts given the population of BD and the fact they are MOUs that actually have to come to fruition as a final amount.

It also explains why BD has a hard time borrowing externally and has a lower debt/GDP ratio in the first place. Its a question of supply reluctancy....not demand from BD. Improve your economy to non-LDC status and investment grade rating and then talk about India debt figures.

 

[Dungeness]

You are a loan-dependent and tiny market.

Given India exports metro systems to Australia and the Middle East, no one here is going to miss a LDC 20 km system to be honest (given you probably want a loan for that too)....one that who knows how long will take just for the measly 20km (which Indian metro systems add each year individually in many cases). I mean its good for you that China has enough surplus liquidity to give loans for a measly 20 km system, so of course you have to buy from them. It is no real "accomplishment" for BD other than showing how behind it is in city infra.

Maybe decades later you will have a real consumer class and real cities that start to figure in the hierarchy. Right now Dhaka is rated worse than most in LDC Africa and warzones like Damascus, especially infra-wise (@Roybot saw it for himself)....and your largest manufacturing companies have a yearly revenue of a couple days of ours.

You are not really helping India by insulting your neighboring country, my friend.

 

[Mage]

You are not really helping India by insulting your neighboring country, my friend.

He's not hurting either. It is a public forum. He likes to talk shit about BD, let him do that. He probably lacks female company in his life. Some people like to vent their real life frustrations online. It's their right. In his mind India rules the world. When someone says India is behind China or any other country here, he would outrage and point out how great India is compared to BD. This makes him feel good. Let him enjoy.

 

[Mage]

Anyway little troll, the only people that have no female companionship tend to be ones that speak about such all the time online....projecting their reality on others in some twisted indulgence of theirs. Maybe invest in a fleshlight for your obvious frustration.

I've read people without female company goes grumpy online(Specially happens to middle aged divorced people). Anyway neither your claim nor my claim can be proven at this point.

I'd just ask why come to Bangladeshi threads to talk shit? You and Rain Man seems to do that all the time. While many other come and say good things. Try to feel well without degrading others.

 

[cirr]

Good news for BD.

 

[bd_4_ever]

@Nilgiri - I dont usually reply to your posts as what you discuss with others is your matter. From the top of this thread to the point you first commented, I have not seen a single line where anyone has compared BD to India in terms of railway infrastructure. Indian companies bid, along with Chinese and mostly everyone believes that the contract will go to the latter. Here the comparison is between companies with good RFPs and not countries. There is no denying however that political lobby will play a part in getting these important development projects but that can be left for another discussion.

If your first comment here was to prove that Indian companies are better, then I have failed to see that point. You could have brought up, say, the bidder's company profile, its turnover, growth and what major infrastructure projects have they completed in which countries. Instead, you trigger off a comparison war with "purchasing power", "20 KM joke", "Least livable city" etc. I really dont see the connection with this thread.

Great video you have provided and all the best of luck with that. But I again dont see how a Bombardier plant in India makes a logical sense here. May be the Indian bidders, Simplex & Larson and Turbo, has videos which you could have shared instead?

In general, all of these lead to every thread in this section getting polluted and trolled for no reason, which is the very same thing you have been complaining about as well. Who is to be blamed? You surely cannot clap with one hand.

You got off on a wrong note in this thread and naturally, BD members will get ticked off and come trolling after you. You claim to have the propensity of debating sanely with likewise members but at the same time, you bring up the mud-slinging on a whole nation in course of trying to verbally 'beat' the 'not sane' members. No one is going to have a proper debate with you for that, sane or 'not sane'.