Bangladesh to start LoC projects with procurement of vehicles from India

Development projects using second $2 billion Indian line of credit (LoC) will first begin with procurement of trucks and buses from India. The Ministry of Road Transport and Bridges recently wrote to the Planning Commission for considering two projects worth $102 million under the new LoC. Under the two projects, Bangladesh Road Transport Corporation (BRTC) will buy 500 trucks and 600 buses in line with the LoC deal under which 75% goods and services will have to be procured from the Indian market. The rest 25% can be sourced from Bangladesh market or any other third country. After nearly one-year negotiation, Dhaka and New Delhi signed an agreement on 2nd LoC on March 9. The above two projects are of the 13 development projects planned to be implemented using LoC. Sources at the Planning Commission said the Road Transport and Bridges Ministry already sent two projects under the new LoC. The BRTC would procure buses and trucks from the Indian market within next three years up to June 2019, they added. According to the project proposals, 350 trucks with a capacity of 15 tonnes, 150 trucks with a 10-tonne capacity, 300 double-decker buses, 200 single-decker AC buses and 100 single-decker non-AC buses will be procured. The proposed 13 projects, including the procurement one, are setting up of double railway tracks in Khulna-Darshana line, converting the Parbatipur-Kaunia metre gauge line to a dual-gauge track, upgrading the Syedpur railway workshop, installation of Barapukuria-Bogra-Kaliakair 400-kilovolt power-transmission line, procurement of modern equipment to upgrade the Roads and Highways Department, setting up of four medical colleges and hospitals, national burn and plastic surgery institute and construction of 49 polytechnic and teacher-training institutes. Meanwhile, Bangladesh used $862 million out of first LoC for the 15 projects including railway, road, transport and laboratory development. Of the total 15 projects under the first LoC, seven have so far been completed and the rest eight are underway, according to officials.