The government has selected three projects in railway sector to get US$490 million in funds from India's proposed new line of credit (LoC) worth US$2.0 billion, after the rejection of two others.
Officials said the selection was finally made after the lending side had given the green signal on the three out of five projects proposed by the Bangladesh Railway.
An official concerned said the rejected two projects were on the setting up of a railway workshop in Rajbari and cord line on Kodda-Jamtoli section in Sirajganj.
"Both the projects are equally important to ensure railway link with the southwestern part of the country," he said, preferring not to be named.
However, rejecting the projects proposed from the Bangladesh side, the Indian side has shown interest in funding a new railway-sector project to establish an inland container terminal at Iswardi.
"We have already taken a move to get approval for the pre- development project proposals on the three projects. Process is also on to prepare the PDPP for the project in which the Indian side has shown interest," said the official.
The BR prepared a list of five projects after a memorandum of understanding was signed between Bangladesh and India during the Indian Prime Minister's groundbreaking trip to Dhaka on June 06.
After receiving the list and requirements, the Economic Relations Division (ERD), which has been negotiating the process of signing the second LoC with India, sent it to the Indian High Commission for getting the approval.
The BR officials said they received the approval for the three projects along with the recommendation for new one last week.
Of the three approved projects, the BR has estimated US$87 million as project aid for the construction of new carriage workshop, $300 million for the construction of double line, including signaling system, in Khulna-Darshana section and $105 million for conversion of metre-gauge line to dual-gauge one in Parbatipur-Kawnia section.
The estimated costs of these projects are $105 million, $380 million and $130 million respectively.
Under the first LoC, which was signed in January 2011 for $1.0 billion worth of credits, 15 development projects, 13 in railway sector, were taken to get $800 million.
Almost five years have elapsed since the signing of the first LoC, but Bangladesh has so far received only $205.59 million out of $751.95 million cleared by the Indian government through India's EXIM Bank.
BR officials said the projects to be listed for the second LoC are not at final stages as negotiation in this regard is still on to resolve some tough conditions set in the draft agreement.
Different ministries which are readying their projects for the funds from the Indian government's second credit scheme for Bangladesh have already expressed reservations on some clauses that contain some "unreasonable" conditions.
The ERD has made a move to raise those issues during the negotiation with the Indian side.
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