LoC-funded projects still in slow lane

The Indian line of credit (LoC)-funded projects in the road-transport sector are still slow in progress, excepting those taken to procure goods.
Eight projects are under implementation under three LoCs at an estimated cost of $947.61 million to upgrade infrastructure facilities in Bangladesh.
The Roads and Highways Department (RHD) has been implementing five projects while the Bangladesh Road Transport Corporation (BRTC) three others under the LoCs signed in 2010, 2016 and 2017.
However, sources said the BRTC could only complete purchasing buses and trucks at $126 million.
The RHD has also a procurement project taken under the second LoC which is still to be completed.
It could only record 48 per cent of its target to buy building equipment and machinery at $59.84 million until September 2021 even after a lapse of four years.
The Indian government has committed to providing $7.8 billion under the three LoCs.
Sources says most of the RHD projects have been delayed due to taking longer time in preparing development project proposals (DPPs), fund release from India and the concurrence to select consultants or contractors.
Official sources, however, attribute the Covid-19 pandemic to slowdown in most projects for restrictions on border movement and travel since March 2020.
They have received goods like laboratory equipment, shot-mixing asphalt plant, bulldozer, heavy-duty crane, motorcycles and air compressor with trolley from India.
But goods like bulldozer (chain) and wrecker took time for not completing combined evaluation.
The RHD is also executing Ashuganj-Sarail-Dharkar-Akhaura road project under second LoC, and Baraiyerhat-Ramgarh, Benapole-Jashore-Narail-Bhanga, and Cumilla-Brahmanbaria-Sarail schemes under third LoC.
Sources say the project for upgrading 50.58-kilometre road from Ashuganj river port to Akhaura land port is under revision for the implementer's failure to meet the June 2020 completion deadline.
The revised DPP has been prepared proposing an increase in both time and money as the project's progress was recorded at only 26 per cent, they add.
The national developer of road facilities now seeks the project's extension until 2025 and an escalation in cost to $698.71 million from $448.67 million.
It has also sought to increase Indian credit to $354.73 million from the current $283.67 million.
Of the projects under third LoC, the DPPs for Benapole-Bhanga and Cumilla-Sarail projects are yet to be prepared.
Some 38-kilometre Baraiyerhat-Ramgarh road project is due for completion by December next year, but the tender process only just began last month.
Land acquisition work is not completed yet.

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