Bangladesh asked to bear half the cost of India-funded road project for improving connectivity with the landlocked eastern states

[Black_cats]

Bangladesh asked to bear half the cost of India-funded road project​

Shakhawat Hossain | Published: 00:08, Feb 06,2022 | Updated: 10:42, Feb 06,2022

The Bangladesh government will have to bear almost half of the expenses of an Indian-funded road project in Brahmanbari for improving connectivity with the landlocked eastern states following a new proposal of cost hike, planning ministry officials said.

The project implementing agency, the Roads and Highways Department, wants the government of Bangladesh to bear 67 per cent of additional Tk 2,229.75 crore costs for the Ashuganj-Akhaura 4-lane highway project being executed under the Indian Line of Credit, said the officials.

The remaining 33 per cent of the extra cost will be borne by the government of India, which pinned hope on the 50-kilometres road for streamlining connectivity between its mainland to eastern state of Tripura and other areas with no direct sea connection.

The planning ministry officials said that the original project financing layout would see a drastic changes if the new proposal by RHD was endorsed by the Executive Committee of the National Economic Council in a meeting on Tuesday.

With an approval from ECNEC, the financial involvement of Dhaka with the project will go up to 49 per cent from the previous 36 per cent, said the planning ministry officials.

RHD chief engineer Md Abdus Sabur told New Age that the country’s financial involvement would go up because of the acquisition of extra land and payment of taxes.

He noted that they needed the acquisition of extra land after the width of the road had been decided to increase to 5.3 metres from the previous 3.0 metres.

The supplementary duty and the Value Added Tax have been included in the proposed revision, he said.

In 2017, RHD started implementing the project at an estimated cost of Tk 3,567.85 crore with New Delhi providing loans of Tk 2,255.76 crore and Tk 1,312 crore by Dhaka.

After the proposed revision, the new project cost will increase to Tk 5,791.60 crore with Delhi providing an overall Tk 2,982 and Dhaka Tk 2,808 crore.

The RHD proposal has also sought to extend the tenure of the project until June 2025 from an extended tenure of June 2022, said planning ministry member Md Mamun-Al-Rashid.

The planning ministry officials said complex rules and regulations under the Indian LoC delayed the floating of the first tender, limited for Indian contractors, by nearly two years.

The Covid pandemic further slowed down the project, they said, adding that less than 40 per cent of the projects had been executed until 2021.

Former project director Arun Alo Chakma said since the project implementation under Indian LoC was new in the country a substantial portion of time was wasted on the documentation process.

The documentation is also verified by the EXIM Bank of India, he said.

Former caretaker government adviser Mirza Azizul Islam said the government should be more careful while negotiating foreign loans.

The mechanism for overcoming lengthy approval procedures should be there to avert delay that escalates project cost as well as debt payment liability, he noted.

The progress of not only the Ashuganj-Akhaura 4-lane highway project but many other projects being implemented under the LoCs have been unsatisfactory due to delay, said planning ministry officials.

Loans worth $865 million have been disbursed until October 2021 under the four LoCs worth over 7.8 billion and linked with 43 projects.

The 19th Bangladesh-India LoC review meeting was held in Dhaka on October 27-28 to review the progress of the projects.

Officials of both countries have expressed optimism that the utilisation rate of LoCs is set to increase significantly soon.

Bangladesh asked to bear half the cost of India-funded road project

The Bangladesh government will have to bear almost half of the expenses of an Indian-funded road project in Brahmanbari for improving connectivity with the landlocked...

www.newagebd.net

 

[cssniper]

Though Bangladesh is more poor than India, i think it's unwise to give up part of ownership of the road for these money.

 

[Tom-tom]

This is taking the mick, unfair trade polices with Bangladesh and a lopsided trade balance that bdesh has with these ***** now India is getting to sacrifice its own economic interest for North East and Bangladesh has to bear half the cost of construction?

This is a mick take.

 

[mb444]

Tell them to fick off... bunch of hindutva turd

 

[Bilal9]

Though Bangladesh is more poor than India, i think it's unwise to give up part of ownership of the road for these money.

What rock have you been hiding under?? Poorer than India?

 

[cssniper]

What rock have you been hiding under?? Poorer than India?

Ok then, wish they could build their own road without India investment.

 

[Bilal9]

Ok then, wish they could build their own road without India investment.

We never, ever needed Indian money to build roads. Indian investment does not even count anywhere in Bangladesh Highway and Expressway budgets.

Selfish Modi Indian Govt. only wants to "invest" when it comes to their own interest - which is below a fraction of one percent of Bangladesh infra, and often uninvitedly included into our plans, if that.

These were all built with local budgets (never Indian), tell Indian Govt. (poorer than Bangladesh) we don't need their measly pathetic funds.

And we are not obligated to connect Indian NE states with the rest of India through Bangladesh. Indians want it, they can built it through India.

 

[cssniper]

We never, ever needed Indian money to build roads. Indian investment does not even count anywhere in Bangladesh Highway and Expressway budgets.

Selfish Modi Indian Govt. only wants to "invest" when it comes to their own interest - which is below a fraction of one percent of Bangladesh infra, and often uninvitedly included into our plans, if that.

These were all built with local budgets (never Indian), tell Indian Govt. (poorer than Bangladesh) we don't need their measly pathetic funds.

And we are not obligated to connect Indian NE states with the rest of India through Bangladesh. Indians want it, they can built it through India.

I'm glad to know what you post above.
As an outsider, my opinion is that Bangladesh could provide India with transportation abilities as long as the Indians wants to connect to their eastern states, but must hold firmly the ownship of these roads. It's a matter of sovereignty and advantage.

Have to admit that I know such little about Bangladesh.

 

[Indos]

I hope it will be TOLL road where the operator is BD state owned enterprise, so Indian trucks and other vehicle should pay to use the road

 

[Bilal9]

I hope it will be TOLL road where the operator is BD state owned enterprise, so Indian trucks and other vehicle should pay to use the road

Majority public opinion is that Indian transport should not use Bangladesh roads. There are security reasons as well as the fact Indian agencies still owe Bangladesh agencies million of dollars in arrears dating back dozens of years. There is nothing in it for us.

The Indian NE states are better used as raw material hinterland by Bangladesh industries for clinker and forestry/agricultural products. Their population in these states are also too small in number and insignificant to be of marketing interest to Bangladesh FMCG firms.