The government will take $50 million credit from the Development Bank of Belarus to procure equipment and motor vehicles for construction and maintenance services needed by the country’s city corporations and municipalities, official sources said.
Bangladesh has 321 municipalities and 11 city corporations. A Local Government Division official said: “It was a long negotiation between Belarus and Bangladesh last year to finalise the $50 million credit programme.”
“We will take a loan from the Development Bank of Belarus JSC at one percent simple interest, which is quite a low rate compared to that offered by local private commercial banks,” the official said.
A proposal by the Local Government Division to procure 11 types of equipment and motor vehicles with credit from the Development Bank of Belarus will be placed at the Cabinet Committee on Public Purchase. The proposal was signed by Abdul Malek, the secretary in charge of the Local Government Division.
The proposal reads: “The Local Government Division will acquire equipment and motor vehicles at European standard at a low cost which is good for the government exchequer.”
According to the proposal, Bangladesh and Belarus have already signed a framework agreement on the provision of export commodity credit. This covers the procurement of equipment and motor vehicles for city corporations and municipalities without any service charge.
Bangladesh will put up a 15% advance to import equipment and the remaining 85% in loans will be repaid over 11 years at 1% interest, according to the proposal.
Moreover, the Development Bank of Belarus will give a three-year grace period for its credit programme.
The Belarusian government will provide a two-year warranty for the import of the equipment, as per the proposal.
The municipal shopping list includes wheel loaders, excavators, combination asphalt rollers, log grapples with kickouts, log grapples, hydraulic hammers, twin drum vibratory rollers, bulldozer blades, drill machines, backhoe loaders and skid steer loaders.
