Bangladesh has requested the Indian side for the enhancement of local material content in the procurement process and revision of the LoC agreement
The government of Bangladesh and Government of India have reviewed the progress of Indian Lines of Credit (LoC)-funded projects.
The first meeting of the High-Level Project Monitoring Committee was held virtually on Sunday to review the progress.
Bangladesh has requested the Indian side for the enhancement of local material content in the procurement process and revision of the LoC agreement.
The high-profile project monitoring committee is one of the several initiatives taken jointly by both sides to expedite the progress of the projects and sort out the issues regarding the implementation of LoC-funded projects and suggest the way forward.
In the meeting, discussions were held on DPP preparation and follow-up measures to expedite projects at various stages of tendering.
Additionally, it was decided to take steps to simplify the bidding process, which will speed up the awarding of contracts to the winning bidders and accelerate the implementation of projects.
The total commitment of the Government of India under the loan agreement with the Government of Bangladesh is $7862 million in which $500 million for the purchase of defence equipment is also included.
At present, out of 46 projects under three loan agreements with the Government of India, 14 projects have been completed, eight are ongoing, 15 are in the tender stage, and 14 are under preparation.
About 83% of the projects are still in the planning/DPP (about 41%) and tender (about 42%) stage.
The Government of Bangladesh has so far signed agreements with project implementing agencies worth about $1276.39 million which is 17% of the total loan agreement. Under the agreement, Exim Bank of India has so far disbursed $719.78 million (56% of the contract value).
The first loan agreement has been converted into a $200 million grant.
The high-level project monitoring committee meeting was attended by the Secretary, Economic Relations Division of Ministry of Finance of Bangladesh, the High Commissioner of India in Dhaka, Bangladesh, officials of Prime Minister's office, Ministries of Finance, Foreign Affairs and Security Services Division, National Board of Revenue [NBR], Government of Bangladesh and Exim Bank of India.