Lower project costs with softer loans: Japan urged

Bangladesh's interim government has formally requested Japan to review its funded projects in different sectors, including metro rails, for lowering the costs with easier-terms of loans.

A high-level delegation led by Finance Adviser Dr Salehuddin Ahmed visited Japan last week and showed government's willingness to continue long-term relationship of Bangladesh and Japan with more investment from the developed country of Asia, sources said.

But, they said, the delegation also expressed concern over cost escalation in their funded projects due to closed tender and firm conditions.

The 10-member delegation from Economic Relations Department, Civil Aviation and Tourism Ministry, Bangladesh Railway and Dhaka Mass Transit Company Limited visited Japan on September 1-4.

The Asian Development Bank (ADB) organised the visit titled Advanced Railway Development and Multimodal Transport and Tourism integration aimed at sharing knowledge on multimodal transport system in Japan. The delegation also met ministers concerned and high officials of Japan International Cooperation Agency (JICA).

The Japanese Finance Minister, Deputy Ministers for Economy, Trade and Industry, and Land, Infrastructure, Transport and Tourism and the JICA President were among them.

Rail and Road Transport Adviser Dr Sheikh Moinuddin and ERD Secretary Shahriar Kader Siddiky were also in the Bangladesh delegation.

Sources said as part of the ADB-sponsored visit for knowledge on modern technology of Japan to introduce multimodal transport system with tourism component, the delegation also visited stations of Japan Railway east and west and company to operate Kyoto High Speed.

However, they said, bilateral meetings were held with agencies concerned, including JICA, for official discussion about various projects.

A meeting with officials of the Japan External Trade Organisation (JETRO) was also held regarding the process of signing economic partnership agreement between Japan and Bangladesh.

The FE writer tried to reach the Finance Adviser and the ERD Secretary for comment on the trip, but got response from the Special Assistant only.

Dr Moinuddin said the visit was mainly focused on learning transit-oriented development (ToD) and activities in multimodal transport system integrating rail, road, inland transport, real estate and tourism.

But he confirmed that a request from the delegation was made for restructuring the JICA guideline with the scope of open tender. He also said, "The delegation expressed government's willingness to continue the long relationship between the two countries and showed interest in getting funds for the country's development."

Sources said the Japanese side assured the Bangladesh delegation of looking into the request.

The Japanese side was also learnt to have requested the Bangladesh government to settle the issue of operation and management of the 3rd Terminal of Hazrat Shahjalal International Airport as Japan is interested in it.

JICA has been implementing various development projects, mostly in rail, road, shipping, civil aviation and energy, but three metro-rail projects are now facing challenges for increase in cost of implementation

The 3rd terminal could not be opened pending completion of negotiations with a Japanese consortium for O and M or operation and maintenance.

smunima@yahoo.com