$90m loan deal with two Arab donors next week
Thursday, 7 October 2010
FHM Humayan Kabir
The government is likely to sign memorandum of understanding (MoU) with two Arab donors for nearly US$90 million credit next week to finance building of 8.25-kilometre Mogbazar-Mouchak flyover, officials said Wednesday.
Finance ministry official said a mission from the Saudi Arabia and OPEC fund will visit Bangladesh next week to discuss financing Bangladesh's fourth flyover project in the capital city.
"The mission will discuss and assess the importance of the Mogbazar-Mouchak flyover scheme. A memorandum of understanding is likely to be signed," a joint secretary of the Economic Relations Division (ERD) official told the FE.
He said the Saudi Fund for Development and the OPEC Fund have assured of providing $58 million and $28 million respectively for building the flyover by 2013.
The government will build the 8.25km Maghbazar-Mouchak flyover at a cost of US$115 million to ease the gridlock in Dhaka city, which causes economic losses worth nearly Tk20 billion a year.
A study finds that about 3.2 million business hours are lost every day, which is about one hour per working people for the severe traffic congestion in the overcrowded capital city Dhaka.
The ERD joint secretary said: "We are ready to sign MoU on the possible funding with the two donors during their next mission in Dhaka."
After the MoU, we are hopeful of signing the final loan deals by December this year, which will help the project implementing agency -- the Local Government Engineering Department (LGED)-- start the construction work from early next year.
"We've sent project proposal for getting approval of the government's highest body ECNEC (executive committee of the national economic council). Now we are taking preparations for floating tender for constructing the flyover," said Nazmul Alam, a project engineer of the LGED.
He said the four-lane flyover will have three separate components.
The government is likely to sign memorandum of understanding (MoU) with two Arab donors for nearly US$90 million credit next week to finance building of 8.25-kilometre Mogbazar-Mouchak flyover, officials said Wednesday.
Finance ministry official said a mission from the Saudi Arabia and OPEC fund will visit Bangladesh next week to discuss financing Bangladesh's fourth flyover project in the capital city.
"The mission will discuss and assess the importance of the Mogbazar-Mouchak flyover scheme. A memorandum of understanding is likely to be signed," a joint secretary of the Economic Relations Division (ERD) official told the FE.
He said the Saudi Fund for Development and the OPEC Fund have assured of providing $58 million and $28 million respectively for building the flyover by 2013.
The government will build the 8.25km Maghbazar-Mouchak flyover at a cost of US$115 million to ease the gridlock in Dhaka city, which causes economic losses worth nearly Tk20 billion a year.
A study finds that about 3.2 million business hours are lost every day, which is about one hour per working people for the severe traffic congestion in the overcrowded capital city Dhaka.
The ERD joint secretary said: "We are ready to sign MoU on the possible funding with the two donors during their next mission in Dhaka."
After the MoU, we are hopeful of signing the final loan deals by December this year, which will help the project implementing agency -- the Local Government Engineering Department (LGED)-- start the construction work from early next year.
"We've sent project proposal for getting approval of the government's highest body ECNEC (executive committee of the national economic council). Now we are taking preparations for floating tender for constructing the flyover," said Nazmul Alam, a project engineer of the LGED.
He said the four-lane flyover will have three separate components.