Govt moves to execute proposed $4.0b Ganges Barrage Project

The government is going ahead with its plan to implement the proposed Ganges Barrage Project, aiming at optimum use of its water in irrigation and cut salinity level in the country's southwest region.
According to a document obtained by UNB, the water resources ministry held a meeting in December last with a state-owned Chinese firm, Hydrochina Corporation, which is keen to implement the US$ 4.0 billion(400 crore) barrage project.
During the meeting, the Vice President of Hydrochina Corporation informed that the Chinese government would provide US$ 20 billion concessional loans to the South Asian countries for the next five years whereas the barrage project required US$ 4.0 billion.
About the interest rate of the loan, he said the interest rate of Exim Bank, China is 1.5 per cent while commitment fee 0.2 per cent and management fee 0.2 per cent. Payment period will be 16 years with a grace period of 4 years.
Hydrochina Corporation vice president said they would like to sign a memorandum of understanding (MoU) with the implementing agency in order to organise preliminary preparations and activities in this regard.
Acting project director of the proposed Ganges Barrage Project Rowshan Ali Khan informed that two Chinese firms-Hydrochina Corporation and Sino-Hydro Corporation Limited-have already shown their interest to finance the project and their proposals were sent to the Economic Relations Division (ERD) of the ministry of finance.
Aiming to implement the project, the government has already completed the feasibility study and design of the proposed 2.1 km Ganges Barrage and it decided Pangsha of Rajbari district as the site, about 98 kilometres downstream from Farakka Barrage built on common Ganges River in the Indian state of West Bengal.
Over Tk 314.14 billion (31,414 crore) (US$ 4.0b) is required to implement the project in a seven-year period, but the government is yet to mobilise the funds.