China's delay in funding railway project raises alarm


MIR MOSTAFIZUR RAHAMAN | Published: February 07, 2021 09:36:34 | Updated: February 07, 2021 22:38:04


China's delay in funding railway project raises alarm

The delay in evaluation of a loan amounting to Tk 142.50 billion (14,250.61 crore) project to be funded by China has raised concern among the authorities.

The loan proposal for the project titled 'dual gauge, double line between Joydebpur and Iswardi of Bangladesh Railway' was sent to China almost two years ago for the review, but it has not been completed yet, said a senior railway official.

The government has sent another letter to the Chinese government for expediting the process two weeks ago, officials familiar with the development told the FE.

However, a Chinese official has recently said that the Covid-19 pandemic derailed many routine activities and delayed the process.

The project was approved on November 4, 2018 by the ECNEC and the Chinese government has agreed to fund the government to government (G to G) project.

According to the agreement, China will provide Tk 87.5 billion as project assistance and the Bangladesh government will provide Tk 54.9 billion.

The railway official said that the quick evaluation of the loan proposal is necessary as this project is interlinked with another crucial project namely the 'Bangabandhu Sheikh Mujib Railway Bridge' over the river Jamuna.

The Joydebpur-Iswardi dual gauge line will run through the 4.8 km-long bridge and the physical works for the bridge project will start soon.

This bridge project worth Tk 167.80 billion is being implemented with support from the Japan International Cooperation Agency (JICA), which provided Tk 121.49 billion.

The two projects are vital to the rail communications between the western and eastern parts of the country, the official said, adding the foundation stone of the bridge project's construction work was laid on November 29.

Urging China to expedite the loan proposal, railway officials said the implementation of the two projects needs to be synchronised to achieve the actual benefit.

Narrating the history of the long delay, an official of the rail ministry said the loan application of the project was sent to the Chinese Embassy in Dhaka on March 21, 2019 and then the Chinese Embassy sent it to Beijing.

"We have come to know that the loan application has been under evaluation of the ministry of commerce since then" another official of the finance ministry said.

The railway minister wrote a letter to the Chinese Embassy on August 21, 2019 to expedite the loan evaluation process.

On November 17, 2019 another letter was sent calling for the expeditious processing, officials said.

The project is scheduled for completion by December 2024 and the China Civil Engineering Construction Corporation has been selected as the contractor of the project.

mirmostafiz@yahoo.com

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