Dhaka, July 21: Dhaka and New Delhi have finalised 14 development projects to be implemented with an Indian loan of $1 billion.
Both the countries will be directly benefited as some of the projects are aimed at enhancing connectivity between Bangladesh and India's northeastern region.
The South Asian neighbours have been quick to follow up on the decisions taken during Prime Minister Sheikh Hasina's New Delhi visit in January.
Indian Prime Minister Manmohan Singh announced a line of credit of $1 billion during the visit for a range of projects including railway infrastructure, supply of broad guage locomotives and passenger coaches and dredging of rivers.
Bangladeshi officials said Tuesday that Dhaka submitted 29 projects for utilising the $1 billion loan. Of them, the two sides at a recent meeting held in New Delhi reviewed the 29 projects and finalised 14 for implementation, Daily Star reported Wednesday.
Most of the projects are for development of railway infrastructure in Bangladesh.
Officials say the projects have been sent to the planning ministry for final approval. After the ministry's clearance, the finance ministries of the two countries will sign a loan agreement to utilise the loan.
Dhaka will procure six high-powered dredgers for $71.7 million. One of the dredgers will be used for dredging at Mongla Port, three for Bangladesh Inland Water Transport Authority and two for Bangladesh Water Development Board.
An internal container port will come up at Ashuganj at a cost of $36.2 million.
Bangladesh and India have recently signed an agreement under which Ashuganj in Bangladesh and Silghat in India have been declared ports of call.
Besides that, 10 locomotive engines will be available to Bangladesh Railway at a cost of $35.5 million. Dhaka will also purchase 125 broad gauge passenger coaches for $53.6 million.
India will construct a railway bridge on river Titas, which will cost $120 million.
For road transport, Dhaka will buy 300 double-decker buses for $30 million, besides 50 luxury buses that will cost $6 million.
A power gridline will be set up for $158 million. Under the project, a 400 KV inter-connector will be set up from Bahrampur in India to Bheramara in Bangladesh.