Indian LoC projects limping

Munima Sultana | Published: July 30, 2016 00:00:00 | Updated: February 01, 2018 00:00:00

Performance of railway projects being implemented under the Indian line of credit of US $ 1.0 billion is still poor even six years after signing of the credit agreement.
According to the Bangladesh Railway, almost half of the projects involving around $690 million could not be completed. Performance of some projects is still insignificant.
The BR has been implementing 12 projects under the first LoC signed between Bangladesh and India in January, 2010.
Though five projects amounting to $120 million and related to procurement were completed, status of development projects including construction of railway tracks and bridges is not satisfactory.
According to the BR's report, progress of 3rd and 4th dual gauge railway tracks between Dhaka and Tongi section and doubling of dual gauge track between Tongi and Joydebpur including signaling work is only 2.25 per cent up to May 2016.
Similarly, 2.0 per cent progress was made in implementing a project to rehabilitate Kulaura-Shahbazpur section.
Among three other projects, replacement and modernisation of signaling and interlocking system of three stations of Ashuganj and Akhaura could make only 20 per cent progress while construction of Khulna-Mongla port rail line 23.5 per cent till May.
However, progress of lone project - construction of 2nd Bhairab and 2nd Titas bridge with approach rail lines---was found to be more than 75 per cent.
BR officials said progress of most of the railway projects has been poor due to delay in getting clearance from the Indian EXIM Bank.
"In almost all the cases, clearances from the EXIM Bank were received six months after signing of the contracts of the projects making their performance poor," said an official preferring not to be named. Clearance from the Exim Bank of India for construction of Khulna-Mongla port rail line was received in February this year though the contract signing in this regard was completed in September and October last year.
The BR completed signing of contracts for the construction work of 3rd and 4th dual gauge railway track between Dhaka and Tongi in June 2015 but the Indian bank gave clearance in this regard in January this year.
Rehabilitation of Kulaura-Shahbazpur section project received Exim Bank's approval at the end of February this year though its contract was signed in August 2015.
The report showed that procurement of 180 broad gauge wagons, six bogie brake vans, 50 meter gauge flat wagons and MG brake van, 30 BG DE locomotives, 10 BG DE locomotives, 100 MG bogie tank wagons and 3 MG brake vans, 170 MG flat wagons and 11 MG brake van was completed.
Procurement of 120 BG coaches is expected to be completed by November this year.
The BR has also included four projects under the Indian government 2nd LoC to construct double line track from Khulna to Darsana, build new carriage workshop in Saidpur, constructÂ new dual gauge rail line from Bogra to Sirajganj, Raipur via Sadanandapur and convert MG trackÂ to dual gauge on Parbotipur-Kaunia section and a conversion.
Expected funding for these projects is $737 million.
smunima@yahoo.com