EDCF tags strings to fund $1.2b project

Construction of the Kalurghat rail-cum-road bridge would cost nearly US$ 1.2 billion to be financed mainly by the Economic Development Cooperation Fund (EDCF) of South Korea under certain conditions.
The external financing arm of the Republic of Korea has agreed to finance the much-hyped bridge over the Karnaphuli River in Chattogram after concluding its fact-finding mission and negotiation with the government recently, sources said.
According to the financing plan, the EDCF would lend $ 724 million while the government of Bangladesh and private financiers would provide the remaining $410.62 million.
The EDCF mission in their meeting with the concerned government agencies, however, placed a string of conditions for providing the fund, sources said.
According to the proposal, the proportion of consulting services to be provided by South Korea will be 62 per cent or more of the total consulting services cost of $ 47.14 million.
It also proposed that the proportion of goods and services to be provided from the Republic of Korea shall be 54 per cent or more of the total cost of goods and services, which is $ 573.65 million.
It also said the goods and services which will be impossible or uneconomical to purchase from the eligible sourcing countries, may be procured from countries other than the eligible sourcing countries with the prior consent of the bank.
Any goods and services to be procured from countries other than the eligible sourcing countries with the prior consent of the bank to be financed from the loan proceeds of the goods and services shall be up to 6.0 per cent of the total cost of goods and services.
The project executing agency shall exercise its obligations to ensure that the procurement of consulting services and goods and services comply with the percentage requirements stipulated above, and shall submit the related documents to the bank, certifying that it has performed its applications to check whether the percentage requirements have been fulfilled.
The 6.9-kilometre-long structure, including 0.7km main bridge, will be 31.95-metre wide to accommodate dual-gauge double rail track and two-lane road, and will have 13.9-metre clearance under it. However, the minimum clearance will be 12.2-metre.
The Kalurghat Bridge was originally built in 1931 as a meter gauge single-track rail bridge, and was converted into a rail-cum-road bridge in 1962.
However, it is impossible for trains and vehicles to use the bridge simultaneously, resulting in severe traffic congestion.
Moreover, the bridge itself is outdated and deteriorated causing trains to operate at a speed of only around 10 km/h.
Consequently, rehabilitating the old bridge is felt necessary to ensure smooth communication between Chattogram and its southern part.

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