Raillway projects at snail’s pace as funds come slow

The installation of two of the three planned rail lines is at a nascent stage while that of  the other is halfway through as only $590 million of the $7,300 million, earmarked by India under four lines of credit to Bangladesh, was disbursed in last 10 years.

Economic Relations Division secretary Monowar Ahmed, while talking to New Age on the new-year eve, said that obstacles on both sides should be blamed for the lower-than-expected fund disbursement under the lines of credit.  

During the first five years, as of June 2015, the amount received was $205.59 million, just about one-third of the money disbursed over the 10-year period.

The directors of the railway projects said that the sluggish implementation of the projects, undertaken since 2010, could not be improved despite regular meetings between officials of the two countries in this regard.

India announced the first line of credit worth $1 billion in 2010, the second worth $2 billion in 2016, the third worth 4.5 billion in 2017 and the fourth worth $500 million in 2019.

A total of 15 projects were taken up under the first line of credit, of which 12, mainly linked to purchasing Indian goods, have been completed.

But the three railway projects—the construction of the third and fourth dual-gauge railway tracks on the Dhaka–Tongi section and the doubling of the dual-gauge tracks between Tongi and Joydevpur, including the upgradation of the signal systems; the rehabilitation of the Kulaura–Shahbazpur section; and the construction of a Khulna–Mongla Port rail line—are yet to complete.

A sum of $200 million under the first credit line was also converted as grant for the under-construction Padma Multipurpose Bridge.

A total of 16 projects were envisaged under the second credit line. Of them, 13 were in the final stage of bidding as of August while a sum of $15.5 million was disbursed.

The third credit line worth $4.5 billion became effective in 2017.

So far, according to the Economic Relations Division officials, four out of the 17 projects undertaken were approved until August.

The fourth line of credit of $500 million was meant for procuring hardware for the military from India. 

The country is yet to buy any military hardware with the fund.

ERD officials said that the projected cost of the three under-construction railway projects was $149 million, with $123.10 million to come from the first line of credit.

Dhaka–Tongi–Joydevpur rail-line project director Shahidul Islam said that the project duration was extended again, due to the slow implementation, until June 2023 after the previous deadline, extended in 2015, expired in June 2019.

The Tk1,106.80-crore project, undertaken in 2012, saw the execution of only 18.30 per cent until August last, according to a Bangladesh Railway update.

Some 17 per cent of the Tk555.98-crore Kulaura–Shahbazpur rail-line rehabilitation project, taken up in 2011, was completed by December, said its project director Tanvirul Islam.

He said that the performance of Delhi-based firm Kalindee Rail Nirman, appointed in December 2017 for the work, was not up to the mark.

He also said that the current deadline, which is to expire in 2020, will need to be extended for at least two more years.

The construction of the Khulna–Mongla Port rail line at a cost of Tk3,801.61 crore, approved in December of 2010, saw a 58.89 per cent completion until August last and is likely to miss the extended deadline of June, 2020.

On the other hand, seven procurement-related projects, under the first credit line, were completed duly.

According to the Indian high commission in Dhaka, India’s Ashok Leyland Ltd was awarded the contract for supplying 290 double-decker buses worth $23.32 million for the Bangladesh Road Transport Corporation.

The delivery of the buses started in March 2012 and the last lot of 23 buses arrived at the Chaitipur BRTC depot on October 30, 2012.

Under the same line of credit, 50 articulated and 88 single-decker buses, also supplied by Indian companies, at a cost of $13 million joined the BRTC fleet in July 2013.

Other procurement deals under the first credit line were: purchase of 180 broad-gauge tank wagons and six brake-van coaches ($17.38 million); purchase of 50 metre-gauge flat wagons and 50 metre-gauge brake vans with airbrakes for carrying containers ($3.28 million);  procurement of 30 broad-gauge diesel electric locomotives ($60.95 million); procurement of 10 broad-gauge diesel electric locomotives ($33.05 million); procurement of 100 metre-gauge tank wagons and five metre-gauge brake vans with air brakes and air-brake equipment for carrying aviation fuel ($7.43 million); procurement of 170 metre-gauge flat wagons and 11 metre-gauge brake vans with air-brake systems for carrying containers ($10.73 million).

Procurement-related deals have also been getting priority under the second line of credit worth two billion dollars.

In 2018, the government decided to procure 600 vehicles at a cost of Tk683 crore–300 double-decker, 200 air-conditioned and 100 single-decker non-AC buses–under the second credit line.

In March last, 100 buses reached the country.

The ERD secretary said that the procurement policies prescribed by the Indian side and the delay in acquiring land in Bangladesh were the main obstacles to the fund disbursement and the implementation of the railway construction and rehabilitation projects at the expected pace.

But 2019, according to him, should be regarded as the most crucial one in last one decade as the stagnation in the implementation of the projects eased in the year.

Monowar hoped that the disbursement of loans under the lines of credit will pick up in the current year.

News Courtesy: www.newagebd.net