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The government has decided to scrap the Dhaka-Chattogram high speed rail line project as China complained that the signing of a MoU on the scheme between Bangladesh Railway (BR) and a Chinese company was illegal and invalid.
In a rare incident, China has expressed its shock over the signing of the memorandum of understanding (MoU) between the state-owned BR and China Railway Construction Cooperation, International (CRCCI) on the Dhaka-Chattogram high speed rail line construction project.
"Our office is shocked to learn that China Railway Construction Cooperation (International) Limited (CRCCI) and Bangladesh Railway (BR) signed a MoU on the construction of 'Dhaka-Chattogram via Cumilla/Laksam high speed railway line project' on November 06, 2018, in which it is mentioned that the project would be implemented with the Chinese G-to-G financing," said the Chinese embassy in a letter sent to the finance ministry recently.
As CRCCI is a state-owned company and no state-owned company in China has the right to make any commitment with other governments on the G-to-G financing arrangement on behalf of the government of China, the letter said.
According to the regulations, it said, no Chinese company is allowed to sign any international documents with the line ministry or the owner before the project is put into storage by the government of China.
"The government of China does not recognise the validity and legality of the MoU. It will be highly appreciated if the Bangladesh side could immediately cancel the MoU and strictly follow the working procedures of the G-to-G projects agreed by both sides," the letter reads.
Talking to the FE on condition of anonymity, a senior official of the finance ministry said the Prime Minister's Office (PMO) had sought their opinion after receiving the letter from the Chinese government.
After a detailed discussion, the official said, they had decided to scrap the project.
When contacted, Director General of Bangladesh Railway Rafiqul Islam told the FE that they were yet to receive any instructions to scrap the project.
"We shall follow the instructions of the PMO," he added.
Earlier in June this year, BR signed a contract to appoint consultancy services for carrying out a feasibility study and detailed design for the construction of Dhaka-Chattogram via Cumilla/Laksam high speed railway project.
The contract was signed between BR and China Railway Design Corporation, China and Mazumder Enterprise, Bangladesh consortium at a cost of Tk 1.02 billion and to be funded by Bangladesh government.
During the contract-signing ceremony, Railways Minister Md Mazibul Hoque said they had taken an initiative to run high-speed trains on the Dhaka-Chattogram route which would take maximum two hours to complete the journey.
BR devised a Tk 500-billion plan to implement the high speed railway project.