Bangladesh – Disruption of foreign funding threatens promising railway projects, as gov’t explores other options

Location: Joydebpur & Dhaka

Language: Bengali

Sound: Natural

Duration: 00:05:47

Source: A24 Agency

Restrictions: A24 Subscribers

Dateline: 04-03-2022

Storyline

A disruption of foreign funding is putting two railway projects in Bangladesh at risk of not being completed. The railway projects, which come as part of the Belt and Road infrastructure projects in Bangladesh, saw a halt following Bangladesh’s reassessment of the programs and lowering their costs after it had found that the cost was much higher than what it should have been. The Chinese withdrew funding the projects following the government’s announcement. China had agreed to provide Bangladesh with loans to fund up to 85% of the project on the condition that Chinese companies must be given the tender for the railway projects. The Japan International Cooperation Agency (JICA), has shown interest in funding one of the projects.

Shotlist:

– (Soundbite) Mr. Rezaul Islam, Station Master, Joydebpur Railway Station

“The Joydebpur – Ishwardiproject is under processing as part of priority development activity by the government. If this double-line project is being completed on time, it would have been a landmark railway project to communicate link up northern Bangladesh and across the country.”

–  (Soundbite) Mr. Bellal Hossain, a local journalist and social activist

“Joydebpur is an old railway station and junction. It lies halfway traveling from northern Bangladesh to Dhaka. If the proposed railway projects were to be completed, it would have a huge impact on communication for the people of this area with people in the northern parts of Bangladesh, as traveling would take less time. This would also reduce traffic by reducing pressure on the main roads.”

– (Soundbite) Dr. Ahsan H. Mansur, the Executive Director of the Policy Research Institute

“The problem with these two projects is that they are among the few projects of railways that cost too much. But after a reassessment, with a very logical ground, the government has realized that these projects should not cost that much money. From there started the issues of the railways. The Chinese company negotiating for the project has declined to complete the projects. The government has also taken a stand on its decision. They informed the company that they can leave if they want to, but we will implement the project at a slashed cost. This was a real picture. This is a very small issue and might raise some dissatisfaction only. I do not think this issue will snowball into a strategic issue. As this is related with our economy, and our government has the right to look after our  trade and economic interests, which is good for us.”

– (Soundbite) Dr. Imtiaz Ahmed, professor of politics at the University of Dhaka.

“In case of a loan-based investment, China generally does not go into considerations of criteria such as internal humanitarian issues and transparency; things that must be taken into considerations when it comes to Western investments. So far, when China goes for a loan-based investment in another country, they mainly want to see the feasibility, profitability and return of their investment. So, in that case, if Bangladesh reduces the project cost and China feels this will have an impact on their margin, definitely, there could be negotiations. Now, this decision can be changed only on a political level.”

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