China promised to provide loans for eight transport sector projects eight years ago, but only one of those has been completed so far.

Two other projects are currently underway, but those are running behind schedule, documents show.

Two more projects have been taken off the list while the implementation of the three others has not started due to multiple reasons.

The delay in implementation means Bangladesh will struggle to enhance the capacity of its rail lines, highways and sea ports with a view to serve the steadily growing economy, officials said.

Amid such a situation, Bangladesh is expected to seek more Chinese loans for several transport projects during Prime Minister Sheikh Hasina's China visit from July 8 to 10. The projects may include construction of Bhanga-Payra rail line and Mass Rapid Transit Line-2.

During his visit to Bangladesh in October 2016, Chinese President Xi Jinping pledged to provide about $20 billion loan -- the largest amount committed by a bilateral partner of Bangladesh -- over the following four years to implement 27 projects.

But as of January this year, the two sides managed to sign agreements on only nine projects involving $8.08 billion, figures from the Economic Relations Division (ERD) show.

Of the $8.08 billion, Bangladesh could utilise only $4.91 billion, less than a quarter of the amount promised by China. Red tapism on both sides is largely to blame for the slow disbursement of loans, said officials.

Of the 27 projects, eight were for the transport sector, including four under the railways ministry, three under the road transport and bridges ministry, and one under the shipping ministry.

RAIL PROJECTS

Four railway projects were supposed to be implemented with the Chinese loans to build new a rail line and expand three existing ones.

The Padma Bridge Rail Link Project is the only railway project being implemented now with the Chinese loan.

The Ecnec in May 2016 approved the project to connect the capital with Jashore with a 169km line via the Padma Bridge at a cost of
Tk 34,989 crore. The project was supposed to be completed within June 2022.

But the loan agreement with China was delayed. In April 2018, the ERD inked a Tk 21,036 crore loan agreement with Exim Bank of China, and the physical work of the project finally started in October 2018.

As the project deadline was deferred to June 2025, the cost went up to Tk 39,246 crore.

The Dhaka-Bhanga section of the line was opened in October last year while the Bhanga-Jashore section is expected to be inaugurated within a month or two.

The Joydebpur-Ishwardi double line project, taken up in November 2018, was supposed to be implemented within December 2024.

But China in March 2021 refused to finance the Tk 14,250.61 crore project citing "a lack of in-depth preliminary work and insufficient feasibility study".

China's decision came four months after the Prime Minister's Office in November 2020 directed the BR to cut the negotiation price of three projects, including the Joydebpur-Ishwardi double line scheme, as the cost review committee found that the costs were relatively high.

The two other projects involve converting the Akhaura to Sylhet and Joydebpur-Mymensingh-Jamalpur sections into dual-gauge from metre-gauge.

The government decided to implement the Joydebpur-Ishwardi double line project with Japanese loan and the PMO directed the railway authorities to look for other financiers for the Tk 16,780.95 crore Akhaura-Sylhet project.

The Joydebpur-Mymensingh-Jamalpur project has not been approved by Ecnec yet and the railways authorities are continuing negotiation with the selected Chinese contractor for the last three years without any visible progress, officials said.

TUNNEL, ROAD, FLYOVER PROJECTS

Construction of the Bangabandhu Tunnel under the Karnaphuli river in Chattogram is the only transport sector project completed so far under the Chinese loan facility.

The tunnel was opened to traffic in October last year after the Tk 10,690 crore project was implemented by Bangladesh Bridge Authority (BBA).

The BBA is now implementing the Dhaka-Ashulia Elevated Expressway Project with Chinese loan.

The project, which was supposed to be completed within June 2022 at a cost of Tk 16,901 crore, was delayed as the Chinese authorities took time to approve the loan. The project cost has now gone up to Tk 17,553 crore and deadline has been deferred to June 2026.

Another project, which was supposed to be implemented with Chinese loan, was to convert the Dhaka-Sylhet Highway into four-lane one.

A Chinse contractor was selected for the work and the government signed a primary deal in this regard.

But the Chinese firm then allegedly offered bribes to then newly appointed secretary of the Road Transport and Highways Division to give the go-ahead to the work at an inflated cost.

Speaking at a programme in January 2018, then finance minister AMA Muhith said the company was blacklisted for trying to bribe the government official.

Roads and Highways Department is now implementing the project with the Asian Development Bank's loan.

MONGLA PORT PROJECT

Another transport project was supposed to be implemented for expansion and modernisation of the Mongla port facilities with Chinese loan.

The Mongla Port Authority submitted a Development Project Proposal (DPP) long ago but and Planning Commission in November last year sent back the DPP, involving around Tk 4,500 crore, recommending more scrutiny, a port authority official said.

"We have already sent back the DPP to the shipping ministry after scrutiny," the official said wishing not to be named.