Bangladesh, India satisfied as 14 Lines of Credit projects completed

Bangladesh and India have expressed satisfaction with the progress in implementing the projects taken under the Indian Lines of Credit (LOCs) extended to Bangladesh as 14 such projects have been completed so far.

Delegations from the two countries met at the 19th India-Bangladesh LOC Review Meeting in Dhaka on 27-28 October to review the progress of 43 projects taken under the Indian LOC, said a press release from the High Commission of India in Dhaka. 

Sridharan Madhusudhanan, joint secretary (DPA-I) at India's Ministry of External Affairs led the Indian delegation, while Md Shahriar Kader Siddiky, additional secretary at Economic Relations Division (ERD) under the Ministry of Finance, Bangladesh, led the Bangladesh delegation at the meeting.

Representatives of Indian companies executing the LOC projects in Bangladesh also participated in the meeting.

Bangladesh is the largest development partner under India's LOC programme, with four LOCs worth $7.862 billion extended to Bangladesh for undertaking important infrastructure development projects in a wide array of sectors. Total disbursements as of 25 October, 2021 were approximately $865 million.

Under the first LOC of $862 million, 12 out of 15 projects have already been completed and three projects are under execution. Under the second LOC of $2 billion, two projects are already complete and the other projects are under various stages of implementation.

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

There is considerable improvement in the speed of projects reaching execution and 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 ERD and the Indian High Commission.

With award of more than $990.85 million worth of contracts under the Indian LOCs during the past three years, and another $325.58 million being finalised within the next few months, the utilisation rate of LOCs is set to increase significantly in the near future, said the press release.

During the LOC Review Meeting, 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. 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 India's LOCs and the continuous engagement of the two countries on ongoing and proposed projects underline the commitment of both sides for creating new opportunities for shared development of the region and mutual benefit.

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

Prior to the LOC Review Meeting, 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 25-26 October 2021.

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

It was agreed that the 20th Bilateral LOC Review Meeting would be held in Delhi in April 2021.