The work on implementation of the projects have started under the $1 billion loan agreement (with India) is going to be started before the Dhaka visit of Indian Prime Minister Dr Manmohan Singh. Indian Prime Minister Dr Manmohan Singh is likely to visit Bangladesh in September 2011.
Approved Projects
A total of seven projects have been finally approved under the agreement. Meanwhile, an agreement with the contractors for purchasing 165 broad gauge tank wagons (for railway), signed on 4 July. The other agreements signed in phases after selection of separate contractors.
Officials of the External Resources Division (ERD) of the Foreign Ministry and the Communications Ministry said that excepting 165 broad gauge tank wagons, the agreements on procuring 10 broad gauge diesel electric engines and 450 buses for BRTC (Bangladesh Road Transport Corporation) will be signed soon.
Bangladesh Communications Minister Syed Abul Hossain said that the appointment of contractors for the projects of the Communication Ministry, approved by the Indian Government, will be made soon. The minister said the tank wagon project will cost nearly taka 1.85 billion.
When asked to know about the matter, Bangladesh Railway Director General Abu Taher said that Indian company Texmaco Limited has been selected as contractor of the project to purchase 165 tank wagons. The organization will supply the wagons within one year. Abu Taher said: ‘The agreement with Texmaco Limited was scheduled to be signed on 30 June 2011, but it could not be done because of procedural reasons.’
ERD sources said that 20 projects on road and railway communication infrastructure, shipping and quality control were sent to Indian Foreign Ministry through Indian High Commission in Dhaka in several phases from 26 February to 16 March 2011.
The projects included 18 schemes of the Communication Ministry, 2 of the Shipping and Industries ministry. Of the 18 projects of the Communication Ministry, 12 are related with railway. Indian has already been given approval to appoint contractors of 7 projects, including 6 of railway, and begin the next phase of the work. But India has raised question about the cost of two railway projects and one project of BSTI (Bangladesh Standards and Testing Institution), the organization monitoring quality of products. The country advised to re-fix cost of the project through a fresh evaluation.
Nearly one year back on 7 August 2010, India and Bangladesh signed the $1 billion agreement in Dhaka. This is the highest amount of loan that India has given to any country so far.
Bangladesh Railway sources said the project implementation process took much time due to ambiguity about some projects and calling of tenders before approval. Particularly tender invitation process began before the railway project sending to India. The bidding began in November 2010. Meanwhile, the work orders have been issued to the contracting firms to purchase 180 broad gauge tank wagons and 6 bogie brake vans.
Foreign Ministry sources said India has presented its stance at the recently held foreign secretary level meeting between the two countries. Recently, demand letter (DO letter) was sent to the Bangladesh Railway lodging an objection against the process of appointing contractors without approval from India. India gave approval to the 7 projects after receiving an explanation from the Bangladesh Railway.
Seven Approved Projects
India sent a letter on 15 June 2011 giving its consent for seven projects. The projects are the purchasing of 50 meter gauge (MG) flat wagons, 150 MG flat bogies, 30 broad gauge diesel electric engines, 100 meter gauge bogie tank wagons, 170 meter gauge flat wagons and 300 double-decker buses, 50 articulated buses and 100 single-decker buses.
Three Projects Under Questions: India has asked for evaluating three projects. The projects are the second Bhairab and Titias bridges with railway connection, establishing railway communication from Khulna to Mongla seaport and purchasing equipment for modernization of the BSTI. India recently told the ERD that there have been ambiguities in the studies conducted for the implementation of the projects on Bhairab and Titas bridges and establishing railway communication from Khulna to Mongla port. India could agree with the estimated cost of these projects. For this reason, New Delhi has suggested to conduct fresh studies on the projects. In the case BSTI project, India says Bangladesh should mention more explicitly what types of machinery and equipment it requires.
According to the version of the communication ministry, the projects on Bhairab and Titas bridges and railway communication from Khulna to Mongla port are virtually concerning with works that means the use of soil, sand and cement is prominent in the schemes. According to the terms of condition of the Indian loan, 85 percent equipment will have to be purchased from that country.
Nazim Panjetan, general manger of the EXIM Bank of India, who signed the agreement on behalf of New Delhi, at a meeting in Dhaka in November 2010, said side by side with other materials bricks, sands, soils, cement, rods and bitumen will have to be purchased from India. In the wake of this, Roads Division in February 2011 sought instructions of Prime Minister's office in this regard. The Road Division said these materials are locally available and because of this prices of the items have been determined according to the local market. The department said more money and time will be required if these items are collected from India. The Prime Minister's office on 17 February 2011 sent a letter to the communication ministry in this regard. The letter said,’ In particular cases local items are procured with money sanctioned under foreign loans. This rule could be followed in this regard.’
More Time in Engine and Bogie Projects
Contractors recently held a meeting with officials of Bangladesh Railway after purchasing tender schedules for supplying railway meter gauge engines, bogies and brake vans. In the meeting, they said theses equipment are normally supplied in a period ranging from one and a half years to two years. It will take more time to supply all these engines, bogies and brake vans as the internal demands for the items in India higher.
Because of this a proposal has been made to increase the time limits of the four projects concerning meter gauge of the contractors. On the basis of their proposal, the communication ministry has informed India about the extension of the time.
One official of Bangladesh Railway said 18 to 24 months will be required for procuring bogies and engines of the railway. But in India the use of meter gauge line is very less. They virtually produce meter gauge bogies and engines for export. In the wake of the present supply order position, the Indian contractors have clearly told that they would not be able to supply the items within two years.
According to the terms of condition in the agreement, Bangladesh will a pay an annual commitment fee at the rate of 0.50 percent to the suppliers before purchasing the items.
Approved Projects
A total of seven projects have been finally approved under the agreement. Meanwhile, an agreement with the contractors for purchasing 165 broad gauge tank wagons (for railway), signed on 4 July. The other agreements signed in phases after selection of separate contractors.
Officials of the External Resources Division (ERD) of the Foreign Ministry and the Communications Ministry said that excepting 165 broad gauge tank wagons, the agreements on procuring 10 broad gauge diesel electric engines and 450 buses for BRTC (Bangladesh Road Transport Corporation) will be signed soon.
Bangladesh Communications Minister Syed Abul Hossain said that the appointment of contractors for the projects of the Communication Ministry, approved by the Indian Government, will be made soon. The minister said the tank wagon project will cost nearly taka 1.85 billion.
When asked to know about the matter, Bangladesh Railway Director General Abu Taher said that Indian company Texmaco Limited has been selected as contractor of the project to purchase 165 tank wagons. The organization will supply the wagons within one year. Abu Taher said: ‘The agreement with Texmaco Limited was scheduled to be signed on 30 June 2011, but it could not be done because of procedural reasons.’
ERD sources said that 20 projects on road and railway communication infrastructure, shipping and quality control were sent to Indian Foreign Ministry through Indian High Commission in Dhaka in several phases from 26 February to 16 March 2011.
The projects included 18 schemes of the Communication Ministry, 2 of the Shipping and Industries ministry. Of the 18 projects of the Communication Ministry, 12 are related with railway. Indian has already been given approval to appoint contractors of 7 projects, including 6 of railway, and begin the next phase of the work. But India has raised question about the cost of two railway projects and one project of BSTI (Bangladesh Standards and Testing Institution), the organization monitoring quality of products. The country advised to re-fix cost of the project through a fresh evaluation.
Nearly one year back on 7 August 2010, India and Bangladesh signed the $1 billion agreement in Dhaka. This is the highest amount of loan that India has given to any country so far.
Bangladesh Railway sources said the project implementation process took much time due to ambiguity about some projects and calling of tenders before approval. Particularly tender invitation process began before the railway project sending to India. The bidding began in November 2010. Meanwhile, the work orders have been issued to the contracting firms to purchase 180 broad gauge tank wagons and 6 bogie brake vans.
Foreign Ministry sources said India has presented its stance at the recently held foreign secretary level meeting between the two countries. Recently, demand letter (DO letter) was sent to the Bangladesh Railway lodging an objection against the process of appointing contractors without approval from India. India gave approval to the 7 projects after receiving an explanation from the Bangladesh Railway.
Seven Approved Projects
India sent a letter on 15 June 2011 giving its consent for seven projects. The projects are the purchasing of 50 meter gauge (MG) flat wagons, 150 MG flat bogies, 30 broad gauge diesel electric engines, 100 meter gauge bogie tank wagons, 170 meter gauge flat wagons and 300 double-decker buses, 50 articulated buses and 100 single-decker buses.
Three Projects Under Questions: India has asked for evaluating three projects. The projects are the second Bhairab and Titias bridges with railway connection, establishing railway communication from Khulna to Mongla seaport and purchasing equipment for modernization of the BSTI. India recently told the ERD that there have been ambiguities in the studies conducted for the implementation of the projects on Bhairab and Titas bridges and establishing railway communication from Khulna to Mongla port. India could agree with the estimated cost of these projects. For this reason, New Delhi has suggested to conduct fresh studies on the projects. In the case BSTI project, India says Bangladesh should mention more explicitly what types of machinery and equipment it requires.
According to the version of the communication ministry, the projects on Bhairab and Titas bridges and railway communication from Khulna to Mongla port are virtually concerning with works that means the use of soil, sand and cement is prominent in the schemes. According to the terms of condition of the Indian loan, 85 percent equipment will have to be purchased from that country.
Nazim Panjetan, general manger of the EXIM Bank of India, who signed the agreement on behalf of New Delhi, at a meeting in Dhaka in November 2010, said side by side with other materials bricks, sands, soils, cement, rods and bitumen will have to be purchased from India. In the wake of this, Roads Division in February 2011 sought instructions of Prime Minister's office in this regard. The Road Division said these materials are locally available and because of this prices of the items have been determined according to the local market. The department said more money and time will be required if these items are collected from India. The Prime Minister's office on 17 February 2011 sent a letter to the communication ministry in this regard. The letter said,’ In particular cases local items are procured with money sanctioned under foreign loans. This rule could be followed in this regard.’
More Time in Engine and Bogie Projects
Contractors recently held a meeting with officials of Bangladesh Railway after purchasing tender schedules for supplying railway meter gauge engines, bogies and brake vans. In the meeting, they said theses equipment are normally supplied in a period ranging from one and a half years to two years. It will take more time to supply all these engines, bogies and brake vans as the internal demands for the items in India higher.
Because of this a proposal has been made to increase the time limits of the four projects concerning meter gauge of the contractors. On the basis of their proposal, the communication ministry has informed India about the extension of the time.
One official of Bangladesh Railway said 18 to 24 months will be required for procuring bogies and engines of the railway. But in India the use of meter gauge line is very less. They virtually produce meter gauge bogies and engines for export. In the wake of the present supply order position, the Indian contractors have clearly told that they would not be able to supply the items within two years.
According to the terms of condition in the agreement, Bangladesh will a pay an annual commitment fee at the rate of 0.50 percent to the suppliers before purchasing the items.
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