Bangladesh, Japan strike deal for $2.8 billion Dhaka metro rail

[Maysun]

Bangladesh, Japan sign metro rail loan deal

Dhaka (The Daily Star/ANN) - Bangladesh and Japan signed separate deals on Wednesday under which Tokyo will provide US$792.82 million to implement four projects in Bangladesh, including the long-cherished metro rail system.
Of the amount, US$784.82 million is a soft loan while the rest is a grant. With an interest rate of 0.01 percent, the loan is payable in 40 years including a 10-year grace period.
Japan will initially be providing US$116.32 million.
Japan had earlier agreed to provide 85 percent of the total metro rail cost of US$2.7 billion, while the rest of the cost was to be borne by the Bangladeshi government.
Wednesday's deal was for a pre-construction phase. A separate deal for the rest of the funding for the project will be signed at a later date, officials said.

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Finally!!

[Naimul_Hd]

Good news. I really hope this project also finishes like 'Hatir Jheel project'

[Jadukor]

A step in the right direction. This should ease off the traffic on the street a little. A lot of my friends with offices in Motijheel will be very happy with this news. Hope this time govt ensures zero corruption.

[Maysun]

Metro rail foundation stone by July 15

[Blah]

Can't wait for opposition parties (which ever party in 2021) starts burning down trains during "protests".

On a positive note, 40 year loan for .01 interest. Seriously, who does that? Over the years, Japan has been a huge development source , I don't think we can truly ever repay their help.

Of course, from a technical and economic point fo view this also helps Japan, as we are most likely obligated by the loan conditions to only buy tools from japanese companies and hire japanese technicians/developers, which is already one of the best in the world. Even under these conditions I don't see many countries help Bangladesh as much as japan has done over the years.

On a related note:

While preparing tender evaluation criteria for selecting bidders for a large power project involving a few hundred million dollars, the Northwest Power Generation Company Ltd (NWPGC) has fixed some very unusual conditions that suit only one particular Japanese bidder.

According to several bidders participating in the tender for setting up a gas-fired 450 MW power plant, the NWPGC has formulated tender evaluation criteria where the proposed plant’s life has been fixed at 30 years whereas all other power projects in the country are based on a plant life of 20 years.

“This will artificially increase plant life to get financial benefit of higher plant output and efficiency,” said an expert who has experience of implementing several large power projects.

“In case of this tender, there is one short-listed Japanese bidder that uses a power generator with output and efficiency higher than most other brands of power generators,” noted an official.

“However, that equipment is not the most economical as its maintenance cost is very high. If the bid criteria are set with a 20-year plant life cycle, that company’s offer will face disadvantage compared to other bidders’ offers.”


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[Rabz]

Don't get hopes too high. Nothing but election year glitters.
It is customary and traditional that the incumbent PM gets overly affectionate on cutting ribbons and laying foundation stone on the election year. Best example, both our honorable ladies have their 'own' stone on the BGMEA building

It took the govt t-h-r-e-e long years just to finalise the route and that is even after the donor country ready to finance 75% of the cost, done all the previous research and paper works and was literally anxious to hand over the money to us to start the work.
All the govt had to do is do ONE thing, and when JICA finally have had enough and was about to leave, only then 'they' could decide this left or that right.

So, I'm keeping my hopes to a bare minimum for the 2017 first deadline.

Originally Posted by Naimul_Hd
Good news. I really hope this project also finishes like 'Hatir Jheel project'

Then the project should have been started by the Army govt

Originally Posted by Jadukor
A step in the right direction. This should ease off the traffic on the street a little. A lot of my friends with offices in Motijheel will be very happy with this news. Hope this time govt ensures zero corruption.

Zero corruption ??
On a billion dollar mega infrastructure project in Bangladesh ?
kharan kharan, age ektu haishsha ni bhai

[al Furqaan]

As long as they build something its a start I suppose.

There was a funny thing I saw on the New York City Subway. There was a really old newspaper headline that read about so-and-so line being finished by "Summer 1943".

Turns out, MTA is now projecting that line to finally be finished by 2018.

[Gladiators]

churi koruk - I honestly don't care, but just don't take it to such levels that it crosses the admittedly very high threshold foreign donors have for corruption in countries like ours.

[Rabz]

^^ Exactly.
Kha, tobe kom kom kha.
Churi kor, dakati koris na.

[riankhan]

So, now we are accepting the corruption as 'their' right!?! As if 'they supposed to/deserve' something from it!!

No offense, just feeling sad