Bangladesh has requested China to extend loan-availability period for the Padma Bridge rail- link project by one year as the project execution trails the train, already on commercial run.
Officials say the lending timeline has been requested to be extended from May 17, 2024 to May 2025 for implementing the rest of the megaproject aimed at rail communications between the capital, Dhaka, and the south-southwestern Bangladesh alongside road transport crossing over the mighty river Padma.
Prime Minister Sheikh Hasina ceremoniously inaugurated the first phase of 'Padma Bridge Rail Link' project's Dhaka-to-Bhanga section on October 10, 2023 and commercial train operation in this part of the route already started.
But, according to the Ministry of Railways, the overall progress on the rail project runs behind schedule.
The physical progresses on Dhaka-Mawa, Mawa-Bhanga and Bhanga-Jashore segments are 83 per cent , 97.50 per cent and 83 per cent respectively.
China Exim Bank is financing the over Tk 39.25-billion (Tk 39,258.13 crore, to be exact) project on a G2G basis. Of the total cost, as per contract, China's Exim Bank is to lend about Tk21 billion.
Under the final loan agreement, signed with China in April 2018, the remaining funds, amounting to over Tk18 billion, will come from government exchequer.
Construction works on the project are being carried out by Chinese contractor CREC.
This one happens to be among a number of megaprojects for infrastructure development funded and executed by China in Bangladesh.
The scheduled completion date for the rail project is April 04, 2024 and loan-availability period and the grace period will expire on May 17, 2024.
According to the rail ministry, the COVID-19 pandemic impacted the project a lot in the preliminary stages, thus causing the delay.
"Moreover, delay in land acquisition and utility shifting, changes in scope such as Bhanga Junction, TT Para and Tularampur Bridge, Dhaka-Gandaria 3rd line, inadequate mobilisation of manpower, equipment and resources by the contractor also caused delay," says one official.
The contractor has mentioned that other than the pandemic, their original programme for some critical works was also impacted by variations or land acquisition.
"In such a scenario, they asked for time extension," says a senior official of the finance ministry, adding that the project authority and the contractor are trying hard to accomplish the tasks by April 04, 2024.
"However, the issuance of the Takeover Certificate and processing of contractor's final payment after issuance of Takeover Certificate will not be completed within the current loan- availability period…and, therefore, it is necessary to extend the loan-availability period for at least 12 months, i.e., up to 17 May 2025," says an official in explaining the reason for seeking the time extension.
The government has requested Chinese government to take immediate action to raise the issue with the Exim Bank to extend the lending time up to May 17, 2025.
Officials concerned have said with unwavering commitment and joint endeavours, they have solved most of the implementation difficulties of this project.
Earlier, loan-availability period was extended in the case of Karnaphuli Tunnel Project.
Under the Padma Bridge rail project, a 172-km railway is being built to connect the capital to Jashore at the country's south-west border point, and construction of the section from Dhaka to Bhanga is completed.
mirmostafiz@yahoo.com