A Chinese company nominated as the contractor for Akhaura-Sylhet rail line development has urged Bangladesh to arrange renegotiation as the project is being stalled due to a dispute over the negotiated cost.
State-owned China Railways Construction Bridge Engineering Bureau Group Company Limited (CRBG) on March 3 made the request in a letter sent to Dr Md Humayun Kabir, secretary of railways ministry.
CRBG pulled itself out of the contract alleging that Bangladesh had cut the cost of the project unilaterally.
The company, in the letter, said the Chinese government is still funding the project and it wishes to enter into renegotiation.
“We, therefore request you for arranging re-negotiation with our company as per PBC (People’s Bank of China) Guideline,” the letter said.
It also hoped that both parties would be able to “reach a consensus” if the initiative is taken and assured that the state-owned company has the “capability to implement the project”.
On April 9, 2019, the Executive Committee of the National Economic Council (ECNEC) approved the project to convert the 225km Akhaura-Sylhet metre rail line into a 239.14km dual gauge line.
The cost of the project was estimated at Tk 16,104 crore and CRBG was given the Engineering, procurement and construction (EPC) contract at a cost of Tk 12,079 crore.
However, following a directive of the prime minister, the inter-ministerial committee recommended a reduction in the cost of the project by Tk 3,354 crore.
