Bangladesh has recently exhorted China to extend the period of loan availability for the Padma Bridge Rail Link Project (PBRLP) up to 17 May 2025, according to finance ministry sources.
Citing information from the project implementer Bangladesh Railway, finance ministry told the Chinese authorities that although the project was scheduled for completion by 04 April 2024, it would take more time.
As the current loan availability period and the grace period will expire on 17 May 2024, the ministry requested the Chinese counterpart to take immediate action to raise the issue with the Exim Bank of China to extend the period up to 17 May 2025.
However, the China Railway Group Limited (CREC), the contractor of the project, said they had completed almost all the work, apart from some minor task like installation of the signalling system in some points.
Contacted, Li Lin, director (public relations and administration) of CREC for the PBRLP, said: "On March 30th and 31st, China Railway Group Limited (CREC) successfully conducted the completion test and commissioning for the remaining section of the Padma Bridge Rail Link Project (PBRLP) between Bhanga and Jashore."
"This achievement signifies a significant milestone in the project's progress, indicating that the work has been substantially completed and is now ready for commercial operation. With only minor tasks remaining at a few stations, which will not hinder the project's completion, it is anticipated that the overall handover process will be finalised following formal procedures in the next two to three months."
Prime Minister Sheikh Hasina has inaugurated the first phase of the 172-km rail link project, from Dhaka to Bhanga section, on 10 October 2023.
Commercial train operation has already been started for this section.
However, according to BR officials, the physical progress in the Dhaka-Mawa portion, the Mawa-Bhanga portion and the Bhanga-Jashore portion are 83 per cent, 97.50 per cent and 83 per cent and respectively.
The PBRLP is being implemented to connect the capital city of Dhaka with the south-western district of Jashore through Padma Bridge at $3.13 billion.
Of the amount, China is providing $2.67 billion as loan.
At the initial stage, the Covid-19 pandemic halted the project, according to an official.
The issues of land acquisition and utility shift, changes of scope such as Bhanga junction, TT Para and Tularampur Bridge, Dhaka-Gendaria third line also caused the delay.
According to the ministry, the project authorities and the contractor are trying hard to accomplish the task by the April 04 deadline.
However, the issuance of 'Taking over certificate and processing of the contractor's final payment will not be completed within the current loan availability period', says a finance ministry official.
On the other hand, in response to Dhaka's, Beijing sought more information to justify the time extension.
China felt that the project could be completed within 04 April 2024 and suggested acceleration in the construction work, officials said, adding that China favoured advance processing of the 'taking over issue'.
They also favour timely payment within the current availability period, sources in the finance ministry said referring to the Chinese response.
China also opined that if additional work was done under physical contingency as per the loan deal, the borrower should inform the lender in writing within 30 days from the date of any significant amendment or supplement to the contract, said the officials.
They also sought more information on the additional work for further assessment.
mirmostafiz@yahoo.com