Govt to spend from 2nd Indian LoC as bid for grant ‘ignored’

The government moves to upgrade the Ashuganj-Akhaura transit road with funds from the 2nd Indian line of credit (LoC) as a bid for reconstructing it with a grant from the neighbouring country seems unheeded, sources said.
They said the two-lane road got severely damaged for allowing India to carry heavy equipment to the landlocked Indian state of Tripura in 2013 for setting up a power plant.
According to the sources, the Ministry of Road Transport and Bridges (MoRTB) has taken initiative to get a fund worth US$ 284 million from the US$2.0 billion 2nd LoC after receiving a letter from the Economic Relations Division (ERD) few months back.
They, however, said the ministry earlier had sent a proposal to the ERD to get a grant for rebuilding the 50.58km road wrecked by heavy-duty vehicle movement.
The Ashuganj-Akhaura road that connects Ashuganj river port and Akhaura land port with Agartala has become important regional corridor for transhipment and transit specially after the signing of the Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicle Agreement.
Official sources said the DPR (detailed project report) on the Ashuganj-Akhaura road improvement project was completed as one of four potential projects for the 2nd LoC under the ministry and it would soon be sent to the ERD for necessary action.
The DPRs on the rest three LoC potential projects are in the process of completion to procure 500 trucks and as many buses, and road-maintenance equipment.
ERD sources said the Ashuganj-Akhaura road project has been included as a potential project under the LoC upon discussion with the Indian side.
They, however, said these projects are not final.
But the ministries concerned have been advised to prepare DPR of those projects in keeping with the development partners' interests.
"Nothing is final here. After the signing of the framework of agreement on the US$2.0 billion LoC, all projects will be finalised," said Asif uz-Zaman, additional secretary at Asia desk.
According to the DPR, the two-lane Ashuganj-Akhaura road will start from Ashuganj river port and end at Akhaura land port through Sarail and Darkhar. Cost of the project has been estimated at US$339 million. Of the total cost, US$284 million is expected to be sought from the LoC.
The US$2.0 billion LoC was announced during Indian Prime Minister Narendra Modi's visit to Bangladesh in June.
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