Bangladesh in line for large scale railway procurement

Bangladesh Railway has announced its intention to procure 30 broad gauge locomotives, 100 metre gauge tank wagons and 10 diesel electric rail cars from India under a $1 billion credit line deal.

"The total cost of the procurement will be over Tk 10 billion and it'll be financed under the Indian credit line," BR director general T A Chowdhury said earlier this week. "We'll procure those from India according to the agreement signed between the two governments," he said.

Dhaka and New Delhi signed a $1 billion credit line agreement in August last year for implementing different projects in Bangladesh.

The projects will be discussed in the Executive Committee of National Economic Council (ECNEC) on Tuesday and the railway will float tenders immediately if those are passed, Chowdhury said.

"The equipment will be procured within 12 months of the approval; if it delays Bangladesh will have to a pay commitment charges on the loan amount," he said.

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