Dhaka, Sep 3 (Representative) Work on the Ashuganj-Akhaura four-lane highway, a key Indian credit-funded project in Bangladesh, has come to a halt after the resignation of prime minister Sheikh Hasina and her departure from the country on August 5, a media report said. Officials from the Indian contracting firm, Afcons Infrastructure Limited, have abandoned the project and returned to India, Prothom Alo reported. The project, aimed at upgrading approximately 50 km of road from Ashuganj in Brahmanbaria in Chittagong district to the Akhaura border to a four-lane highway, is currently suspended. The return of the Indian officials and rejoining work is uncertain. As a result, the implementation of the project is in limbo. This road upgrade project, stretching from the Ashuganj river port in Brahmanbaria to the Akhaura border, was initiated in 2017. After a revision, the project cost was estimated at Tk 57.91 billion, with Tk 29.82 billion funded by Indian loans under the second Indian Line of Credit (LOC). The remaining Tk 28.09 billion is to be provided by the Bangladesh government. The project is scheduled to be completed by June 2025.
However, only 50 per cent of the work have been finished by June 2024. As per the rules governing LOC-funded projects, Indian contractors must be appointed, and 65 per cent of the project’s goods and services must be sourced from the country, Prothom Alo writes.In 2018, after the project was approved by the Executive Committee of the National Economic Council (ECNEC), the Indian contractor Afcons Infrastructure Limited was appointed to carry out all three packages of the project. However, progress was severely hampered in 2019, 2020, and 2021 due to the COVID-19 pandemic. Work resumed in full swing in 2022, with about 300 Indian nationals working alongside local engineers and labourers.But everything changed after the fall of Sheikh Hasina on August 5. On the following day, Afcons Infrastructure withdrew all their workers from the project area. They were taken to India through the border in Akhaura-Agartala. In this regard project manager Md Shamim Ahmed said, “All workers of the contractor have gone to India due to security reasons after the political changeover on 5 August. Meanwhile, they have been contacted informally. They said they would return to work after they received a go-ahead on security from the Indian high commission. “Various project materials have been left in a state of disarray. The incomplete work has increased public suffering, with many vehicles having to navigate through dangerous potholes and encountering severe traffic congestion. As a result, drivers and commuters have to endure immense suffering.
Meanwhile, uncertainty has emerged over the future of Indian loans. The planning ministry is reviewing the feasibility of ongoing and proposed projects funded by Indian LOCs. This review will include the assessment of current and proposed projects under three Indian LOCs. Project stakeholders believe that many projects funded under these LOCs are primarily for Indian interests. For instance, the four-lane road from Ashuganj to Akhaura is expected to facilitate the transit of Indian goods.India had promised Bangladesh loans totaling USD 7.36 billion across three LOCs in 2010, 2016, and 2017. However, the actual disbursement has been much lower than expected, with only USD 1.80 billion released to date.A total 36 projects have so far been taken in sectors such as road and rail connectivity, energy, and infrastructure, under the three LOCs. Of these, 15 have been completed, eight are ongoing, and the remaining projects are either in the stages of consultant and contractor appointments or proposal preparation, the Bangladeshi daily writes.