India, Bangladesh officials express satisfaction at robust pace of project implementation

Dhaka : India and Bangladesh officials expressed satisfaction at the robust cooperation between the two sides in implementing projects under the Government of India’s Lines of Credit scheme, and felt there has been considerable improvement in the speed at which projects are reaching the execution and tendering stage due to the active cooperation of all stakeholders.

The two sides held a meeting to review the progress of 43 projects being taken up for implementation under the GoI’s Lines of Credit scheme as part of the 19th India-Bangladesh LOC Review Meeting, which was held in Dhaka on October 27-28.

Bangladesh is the largest development partner under India’s LOC programme, with four LOCs worth USD 7.862 billion extended to Bangladesh for undertaking important infrastructure development projects in a wide array of sectors.

Under the first LOC of USD 862 million, 12 of the 15 projects have already been completed and three projects are under execution.

Under the second LOC of USD 2 billion, two projects are already completed and the other projects are under various stages of implementation.

Under the third LOC of USD 4.5 billion, one project has reached execution stage, while the other projects are under various stages of DPP (Development Project Proposal) finalisation and tendering.

The total amount disbursed as of October 25, 2021 is around US$ 865 million.

There is considerable improvement in the speed of projects reaching execution/tendering stage which has been made possible with active cooperation of the project-executing agencies of both sides and with the extensive coordination efforts between the Economic Relations Division of Bangladesh and the Indian High Commission.

With award of more than USD 990.85 million worth of contracts under the GoI LOCs during the past three years, and another USD 325.58 million being finalized within the next few months, the utilization rate of LOCs is set to increase significantly in the near future, said a press statement.

Sridharan Madhusudhanan, Joint Secretary (DPA-I), Ministry of External Affairs, Government of India, led the Indian delegation and the Bangladesh delegation was led by Md. Shahriar Kader Siddiky, Additional Secretary, ERD, Ministry of Finance, Government of Bangladesh. Representatives of Indian companies executing the LOC projects in Bangladesh also participated in the meeting.

During the LOC Review Meeting, both sides expressed satisfaction with the robust cooperation on LOC projects. The two delegation heads appreciated the fact that all stakeholders on LOC projects are in constant touch, hold frequent and detailed review meetings and are making all efforts for the expeditious execution of projects.

A detailed discussion was held, Line Ministry-wise, to review project progress.

The existing issues with project implementation and possible resolution mechanisms were identified. Detailed time lines were determined for all steps involved in project implementation.

Both sides agreed that the LOC review mechanism is an ideal platform to monitor the progress of projects, understand and remove procedural bottlenecks and ensure timely implementation.

The successful implementation of projects under the GoI LOCs and the continuous engagement of the two countries on ongoing and proposed projects underlines the commitment of both sides for creating new opportunities for shared development of the region and mutual benefit, the statement said.

Both delegation heads recalled that the importance of bilateral co-operation between India and Bangladesh, utilizing the LOCs, was highlighted by Prime Minister Narendra Modi of India during the virtual Summit held with Prime Minister of Bangladesh Sheikh Hasina on December 17, 2020.

Earlier, the Indian delegation comprising MEA officials from Delhi, High Commission of India officials and Exim Bank of India officials visited the LOC project site for the Power Evacuation facilities of the Rooppur Nuclear Power plant, the Ashuganj Inland River Port project site as well as the Ashuganj-Sarail-Dharkhar-Akhaura Road project site on October 25-26.

The delegation met all the stakeholders involved in project implementation and held in-depth discussions to review project progress and resolve the impediments to the project progress.

They agreed to hold the 20th Bilateral LOC Review Meeting in Delhi in April 2022.

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