Capacity building needs $7b; Tariff Commission report skips earning aspect

[fallstuff]

Total transit facility not before 4 yrs


Capacity building needs $7b; Tariff Commission report skips earning aspect


Bangladesh will need to invest Tk 49,835 crore in road, rail and river ways and ports in the next two to three years to facilitate transit to India, Nepal and Bhutan.

A government committee on transit gave the estimate in a report placed at a high-level meeting chaired by Finance Minister AMA Muhith yesterday.

The report said Bangladesh can provide only limited transit facility for two to three years initially. Full-fledged handling of transit cargos may be available from the fourth year.

The report, however, gives no estimate of Bangladesh's benefit for giving transit to the three countries, meeting sources said, adding that the committee was asked to include the benefit analysis in the report and resubmit it.

Commerce Minister Faruk Khan, Foreign Minister Dipu Moni, Prime Minister's foreign affairs Adviser Gowhar Rizvi and economic affairs Adviser Mashiur Rahman were present at the meeting at Muhith's residence.

None of the five responded to the awaiting journalists' repeated queries about the discussion.

Tariff Commission Chairman Mujibur Rahman, who heads the committee on transit, said the report needs to be reviewed.

He added that the government has taken the report into consideration and they will hold further discussion.

Mujibur said the meeting gave some guidelines and they will improve the report and submit it soon.

An official told The Daily Star that the meeting discussed fixing of transit fees through a sub-committee. The amount will be determined as per the rules of the World Trade Organisation.

A minister wishing anonymity said the fee will be fixed considering the benefits of all the participating countries.

According to the report, the countries taking the transit facility will save between 12 and 70 percent on their transport cost.

Bangladesh will take a portion of the amount as transit charges in addition to an amount against various services, it added without mentioning any amount.

Of the Tk 49,835 crore ($7.11b) investment, roads will require Tk 11,941 crore, rail Tk 32,023 crore, inland water transport Tk 1,161 crore, Chittagong Port Tk 1,709 crore, Mongla Port Tk 2,798 crore and land ports Tk 202 crore.

The report said the river routes are now unfit for transit. And although roads are somewhat fit, major infrastructural development of rail routes is required. With the present condition, roads are capable of transporting 10 percent of the probable transit traffic.

Quoting opinion of the Bridge Division, the report said the Bangabandhu Bridge is incapable of handling container cargo at present. A separate bridge will be required for those, which will take about three years to construct.

The government assigned the committee to conduct an extensive study to fix the transit routes and fees, prepare its economic analysis, and assess the volume of the traffic through five sub-committees.

The heads of the sub-committees include former UN ESCAP director M Rahmatullah, Executive Director of Centre for Policy Dialogue (CPD) Mustafizur Rahman, Vice-chairman of Policy Research Institution and former World Bank official Sadik Ahmed and Bangladesh Institute of Development Studies (BIDS) Senior Research Fellow Mohammad Yunus.


link:

Daily Star: Total transit facility not before 4 yrs

 

[eastwatch]

Total transit facility not before 4 yrs
Capacity building needs $7b; Tariff Commission report skips earning aspect


Bangladesh will need to invest Tk 49,835 crore in road, rail and river ways and ports in the next two to three years to facilitate transit to India, Nepal and Bhutan. A government committee on transit gave the estimate in a report placed at a high-level meeting chaired by Finance Minister AMA Muhith yesterday.

The report said Bangladesh can provide only limited transit facility for two to three years initially. Full-fledged handling of transit cargos may be available from the fourth year. The report, however, gives no estimate of Bangladesh's benefit for giving transit to the three countries, meeting sources said, adding that the committee was asked to include the benefit analysis in the report and resubmit it.

Commerce Minister Faruk Khan, Foreign Minister Dipu Moni, Prime Minister's foreign affairs Adviser Gowhar Rizvi and economic affairs Adviser Mashiur Rahman were present at the meeting at Muhith's residence. None of the five responded to the awaiting journalists' repeated queries about the discussion.

Tariff Commission Chairman Mujibur Rahman, who heads the committee on transit, said the report needs to be reviewed. He added that the government has taken the report into consideration and they will hold further discussion. Mujibur said the meeting gave some guidelines and they will improve the report and submit it soon.

An official told The Daily Star that the meeting discussed fixing of transit fees through a sub-committee. The amount will be determined as per the rules of the World Trade Organisation. A minister wishing anonymity said the fee will be fixed considering the benefits of all the participating countries. Acording to the report, the countries taking the transit facility will save between 12 and 70 percent on their transport cost.

Bangladesh will take a portion of the amount as transit charges in addition to an amount against various services, it added without mentioning any amount.
Of the Tk 49,835 crore ($7.11b) investment, roads will require Tk 11,941 crore, rail Tk 32,023 crore, inland water transport Tk 1,161 crore, Chittagong Port Tk 1,709 crore, Mongla Port Tk 2,798 crore and land ports Tk 202 crore.

The report said the river routes are now unfit for transit. And although roads are somewhat fit, major infrastructural development of rail routes is required. With the present condition, roads are capable of transporting 10 percent of the probable transit traffic. Quoting opinion of the Bridge Division, the report said the Bangabandhu Bridge is incapable of handling container cargo at present. A separate bridge will be required for those, which will take about three years to construct.

The government assigned the committee to conduct an extensive study to fix the transit routes and fees, prepare its economic analysis, and assess the volume of the traffic through five sub-committees. The heads of the sub-committees include former UN ESCAP director M Rahmatullah, Executive Director of Centre for Policy Dialogue (CPD) Mustafizur Rahman, Vice-chairman of Policy Research Institution and former World Bank official Sadik Ahmed and Bangladesh Institute of Development Studies (BIDS) Senior Research Fellow Mohammad Yunus.
link:
Daily Star: Total transit facility not before 4 yrs

Our Roads & Highway Deptt. is now able to spend only less than $1 billion per year. So, I do not see any possiblity that they are that capable to spend a staggering $7 billion only in 4 years to build up additional infrastructure needed to start the transit. Big projects need big money, but they also need a huge pool of trained manpower. BD neither has the money nor organizations to readily undertake such big projects.

Indian engineers and planners perhaps already know that it is impossible for BD. How it is possible to do these without even arranging a single dollar of the propsed $7 billion fund? Of course, India should provide all the needed funds. Even then, India will have to wait for another 8 years to complete all these projects.

 

[TopCat]

Our Roads & Highway Deptt. is now able to spend only less than $1 billion per year. So, I do not see any possiblity that they are that capable to spend a staggering $7 billion only in 4 years to build up additional infrastructure needed to start the transit. Big projects need big money, but they also need a huge pool of trained manpower. BD neither has the money nor organizations to readily undertake such big projects.

Indian engineers and planners perhaps already know that it is impossible for BD. How it is possible to do these without even arranging a single dollar of the propsed $7 billion fund? Of course, India should provide all the needed funds. Even then, India will have to wait for another 8 years to complete all these projects.

In Dhaka Chittagong highway everyday 50000 vehicle ply through. Why do we need 7bln dollar for indian 1700 vehicle a day. Nobody wll even notice them as such low traffic volume. Is NE of India a Singapore?

 

[eastwatch]

In Dhaka Chittagong highway everyday 50000 vehicle ply through. Why do we need 7bln dollar for indian 1700 vehicle a day. Nobody wll even notice them as such low traffic volume. Is NE of India a Singapore?

I think, you have to read the news below in conjunction with this news to understand why should it take $7 billion to facilitate transit. Now, let us see how India reacts to our cost estimate. So, will India come out with paying $7 billion to build the infrastructure? I doubt, India will do so.

Someone plying through Aricha/Padma knows how time-consuming it is to cross the ferry there. BD certainly needs to upgrade all these infrastructures and build new ones, such as a new Jamuna bridge. The construction cost will, no doubt, cross $2.5 billion. So, all together we will need $7 billion or more. India gets so much of benefits out of this arrangement only by spending $7 billion.

P.S: There has been no talk yet about the number of 1700 daily vehicles in the BD-India talks.

http://www.defence.pk/forums/bangla...ransit-facility-thru-15-road-rail-routes.html

 

[LaBong]

I hope BD will not give India transit and that will force the babus to build infra in north Bengal.

 

[eastwatch]

I hope BD will not give India transit and that will force the babus to build infra in north Bengal.

$7 billion is too big a money and 4 years is too short a time to use that much of money on infrastructure building. The big question remains to be answered, who will foot the bill, India or Bangladesh? Logically, it should be India. Let us see what happens in the coming few weeks.

AL or BNP, they all know the public sentiment is against giving transit to India. From the very beginning India failed to culture a coordial relationship with BD. Instead, it followed a policy of bullying. But, it did not pay.

One country's people are not liked by the other. A kind of cold war keeps the countries away from each other. So, the GoB has diplomatically put a big price tag so that India is dissuaded from asking 15 different transit routes.

Instead of seeking new routes, India should be happy with the existing river transit facilities that it is enjoying since the time of Ziaur Rahman. It should also request the GoB to renew the newly established river cum road transit through Ashuganj. However, India must understand that it will have to renegotiate Ashuganj with BD if BNP comes to power.

 

[LaBong]

$7 billion is too big a money and 4 years is too short a time to use that much of money on infrastructure building. The big question remains to be answered, who will foot the bill, India or Bangladesh? Logically, it should be India. Let us see what happens in the coming few weeks.

AL or BNP, they all know the public sentiment is against giving transit to India. From the very beginning India failed to culture a coordial relationship with BD. Instead, it followed a policy of bullying. But, it did not pay.

One country's people are not liked by the other. A kind of cold war keeps the countries away from each other. So, the GoB has diplomatically put a big price tag so that India is dissuaded from asking 15 different transit routes.

Instead of seeking new routes, India should be happy with the existing river transit facilities that it is enjoying since the time of Ziaur Rahman. It should also request the GoB to renew the newly established river cum road transit through Ashuganj. However, India must understand that it will have to renegotiate Ashuganj with BD if BNP comes to power.

I hope BNP comes to power and scraps the transit deal which would mean developing massive infra in Siliguri corridor.

 

[eastwatch]

I hope BNP comes to power and scraps the transit deal which would mean developing massive infra in Siliguri corridor.

India asked for 15 different transits, and Bangladesh showed India the door by asking a $7 billion price tag. Not a bad stunt by BD politicians who are learning fast the Indian style, give in one hand and take back by the other. We may not need BNP, AL has already scrapped the deal. India should now fully develop the chicken neck corridor, and build a $100 billion transport infrastructure there.

BD is already allowing about 5 river routes to transit Indian goods, and one rail link for human transportation. So, this goodwill gesture by BD should be reciprocated by India. India should allow a BD-Pakistan transit. We need this transit to enter the central asian market. Central asia's Turkmenistan can become a substitute source of cotton and delicious fruits.

 

[twoplustwoisfour]

Our Roads & Highway Deptt. is now able to spend only less than $1 billion per year. So, I do not see any possiblity that they are that capable to spend a staggering $7 billion only in 4 years to build up additional infrastructure needed to start the transit. Big projects need big money, but they also need a huge pool of trained manpower. BD neither has the money nor organizations to readily undertake such big projects.

Indian engineers and planners perhaps already know that it is impossible for BD. How it is possible to do these without even arranging a single dollar of the propsed $7 billion fund? Of course, India should provide all the needed funds. Even then, India will have to wait for another 8 years to complete all these projects.

If you read the news before quoting it, we won't need to go back and keep discussing the same issues over and over again:

Of the Tk 49,835 crore ($7.11b) investment, roads will require Tk 11,941 crore, rail Tk 32,023 crore, inland water transport Tk 1,161 crore, Chittagong Port Tk 1,709 crore, Mongla Port Tk 2,798 crore and land ports Tk 202 crore.