Bangladesh eyes $4 billion from third Indian Line of Credit

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."

Proposed Project	Estimated Cost
Rooppur Nuclear power plant's waste management infrastructure	$940 million
Bogra-Sirajganj dual gauge rail track	$501.2 million
Gazipur Combined Cycle (gas/LNG) 450MW power plant	$402.4 million
Bogra (Bangladesh) - Jhharkhand (India) 400KV power transmission line	$177 million
Mollahat 100MW Solar PV power plant	$157.6 million
Payra Sea Port multi-purpose terminal	$350 million
Infrastructure development of several Special Economic Zones (SEZ)	$300 million
SEZ for India in Chittagong's Mirsarai	$100 million
100-acre Export  Processing Zone (EPZ)in Chittagong's Mirsarai	$50 million
SEZ in Payra/Maheshkhali	$100 million
Revival of the Buriganga River	$196.1 million
Upgrading the Benapole-Jessore-Narhail Road to 4-lane	$100 million
Upgrading the Ramgarh-Baraiar Hat  Road to 4-lane	$50 million
Upgrading the Comilla (Maynamati)-Brahmanbarhia-Sarail Road to 4-lane	$75 million
Rail and road connectivity for Ishwardi (Pabna) Internal Container Depot	$35 million
Ashuganj (Brahmanbarhia) - Jokiganj (Sylhet) Road Development	$38 million