Bangladesh eyes $4 billion from third Indian Line of Credit
Zafar Ahmed, bdnews24.com
Published: 2017-02-09 12:47:14.0 BdST Updated: 2017-02-09 13:00:31.0 BdST
Bangladesh has short-listed development projects worth almost US$4 billion, which it hopes to fund from the next Line of Credit (LOC) extended by India.
Indian Prime Minister Narendra Modi is expected to announce its third LOC to Bangladesh during Prime Minister Sheikh Hasina's next visit to the neighbouring country.
Hasina was scheduled to make the visit in December last year, but it was postponed and officials of the two countries are now sorting out details to finalise it.
The Economic Relation Division (ERD) has drawn up a list of 17 projects and forwarded it to the foreign affairs ministry.
India has given $1 billion and $2 billion through its first and second LOCs respectively extended to Bangladesh.
The loans have a 20-year repayment term, including a grace period of five years and a one percent annual interest rate along with 0.5 percent commitment fee.
Bangladesh hopes the third LOC would be around $4 billion, which is equivalent to Tk 320 billion according to the current exchange rate.
ERD Secretary Kazi Shofiqul Azam said they have made an initial list of projects to be reviewed by the Indian and Bangladesh authorities.
"The discussions are on and some of the projects have been cleared. We have forwarded a list of 17 projects to the foreign ministry," he told bdnews24.com
Azam said nothing is finalised as yet and the projects will be further scrutinised until the prime minister's visit takes place. "Until now, we are targeting 4 billion (US dollar). Let's see how much we can get."
According to a communication between the ERD and the foreign ministry, an inter-ministry meeting on Dec 11 short-listed the 17 projects.
Sixteen of these projects are expected to cost $3.57 billion
The letter, however, does not mention the cost of a project titled 'Upgradation of LCS to ICP on Both Side.'
An ERD official told bdnews24.com, "If this project is included, a total $4 billion would be needed for the 17 projects. That is what we are looking for."
Rooppur Nuclear power plant's waste management infrastructure
Bogra-Sirajganj dual gauge rail track
Gazipur Combined Cycle (gas/LNG) 450MW power plant
Bogra (Bangladesh) - Jhharkhand (India) 400KV power transmission line
Mollahat 100MW Solar PV power plant
Payra Sea Port multi-purpose terminal
Infrastructure development of several Special Economic Zones (SEZ)
SEZ for India in Chittagong's Mirsarai
100-acre Export Processing Zone (EPZ)in Chittagong's Mirsarai
SEZ in Payra/Maheshkhali
Revival of the Buriganga River
Upgrading the Benapole-Jessore-Narhail Road to 4-lane
Upgrading the Ramgarh-Baraiar Hat Road to 4-lane
Upgrading the Comilla (Maynamati)-Brahmanbarhia-Sarail Road to 4-lane
Rail and road connectivity for Ishwardi (Pabna) Internal Container Depot
Ashuganj (Brahmanbarhia) - Jokiganj (Sylhet) Road Development
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