In a dramatic turn of events, a Chinese company expresses its willingness to be re-engaged in the much-hyped Sylhet-Akhaura dual-gauge rail project after its dereliction following costing disagreement.
Officials say the development takes place weeks after Bangladesh Railways' decision to seek out new donor following the Chinese company's decision to quit the Tk 160-billion project titled 'Conversion of Meter-Gauge Rail Line to Dual Gauge in Akhaura-Sylhet Section of Bangladesh Railway'.
In a letter to the Rail Ministry, China Railway Construction Bridge Engineering Bureau Group Company Ltd (CRBG) says that the Chinese funding for the project is still valid and they want to renegotiate, sources in the railway ministry say, quoting the letter.
According to the CRBG, 'confusion had arisen' regarding the negotiated cost of the project.
"We, therefore, are requesting you for arranging renegotiation with our company as per PBC Guideline on G2G basis," the letter reads.
"We believe that with the efforts of both sides, consensus would be reached and the current difficulties of the project would be overcome," the Chinese side adds in the letter.
The firm assured the ministry that as a state-owned company, they have 'sufficient capability to implement the project' and deliver their best services to the government of Bangladesh.
After the Chinese contractor's decision to quit the project, Bangladesh Railway sent a revised preliminary development project proforma (PDPP) for the Akhaura-Sylhet dual-gauge rail-track construction to the Economic Relations Division (ERD) requesting for new donor.
The tenure of this one is rescheduled, and now the implementation period will be January 2022 to June 2026. The project was approved in 2016 and originally scheduled to be completed by 2020.
In its letter to the ERD sent on February 3 BR said the cost of the Akhaura-Sylhet dual-gauge rail project is slashed to Tk 126 billion with Tk 112 billion being project assistance.
Bangladesh had negotiated with China the implementation of this project and signed a loan agreement wherein the project cost was estimated at Tk 161 billion of which China agreed to lend Tk 106 billion.
China is supposed to finance 66.16 per cent of the total project cost.
But the project could not be started despite completing the procedures that include managing Chinese concurrences for funding, selection of contractor and approval for the negotiated price because of the objection from the PMO and the Planning Commission over the 'high cost'.
They noted that the cost is much higher than that of similar rail projects.
Last year, the PMO asked the BR to cut down the cost of Akhaura-Sylhet project by Tk 3,354.31 crore or 20.8 percent of the total outlay.
When the BR informed the CRBG of the government decision, the Chinese contractors refused to accept the revised cost.
According to reports, following the refusal of the Chinese company to do the job under the revised cost, India's state-run Ircon International expressed its interest in implementing the project.
The Indian company also promised to arrange funding for the project through the Exim Bank of India, rail officials say.
According to the document, the project aims to convert 225km metre-gauge line to 239km dual-gauge one.
mirmostafiz@yahoo.com