The ones, who disagree are not Experts. They are only India Haters.
--- In alochona@yahoogroups.com, Isha Khan <bdmailer@...> wrote:
>
> Experts divided over benefits of billion dollar deal
>
> The billion dollar Indian credit line agreement has come up for critical
> scrutiny apparently on the merit of the projects as to how much they are
> having national priority to be implemented by taking a commercial loan.
>
> The 14 projects to be executed under the loan are on top of the list of
> India for opening its transit route through Bangladesh to the northeast.
>
> The Awami League-led government has taken the political decision to this
> effect but critics wondered why it has taken the decision to finance
> basically Indian projects with a huge loan.
>
> The projects in the list are aimed at developing supportive infrastructures
> to create necessary conditions to create transit through Bangladesh.
>
> BIDS research director Dr KAS Murshed in a recent work on
> India-Bangladesh-Northeast: Transit and Strategic Configuration ruled out
> the claim that Bangladesh will anyway benefit from the opening of transit.
>
> Many people here toeing the government policy line tend to say that
> Bangladesh would fetch up to US$ 3.0 from transit related activities
> annually.
>
> The Indian team visiting Ashuganj after the signing of the loan agreement to
> see the riverine spot to develop the port of call there made similar claim.
> But all such claims are misleading and having no basis of any cost-benefit
> calculation, knowledgeable sources said.
>
> Even the World Bank and such other organisations promoting the transit
> corridor is yet to carry out such cost-benefit estimate and people wonder
> why they are not doing it. Murshed, however opined that railway may have
> some relevance to transit but the revenue prospect from railway transit will
> also remain limited up to US$ 30 million. But the country may stand to lose
> market in the northeast from such opening to direct Indian traffic, he
> maintained.
>
> People wonder if the country is really buying troubles with the credit line
> and moreover how will it repay the money without viable revenue income from
> the facilities.
>
> Akbar Ali Khan, a former secretary and adviser of the caretaker government
> wondered whether the projects to be funded under the loan are really
> essential for Bangladesh.
>
> He told the press that taking such loans is not something new, but the
> nation must have critical assessment on the merits and demerits of such
> loans to be used for funding projects.
>
> He said India always remained a critical factor to Bangladesh politics. So
> before doing anything the country should have its own critical exercise.
>
> He said the serious question is not the rate of interest at 1.75 percent per
> annum with 0.50 commitment fees on unutilized credit after 12 months or the
> 20 repayment period is enough or not.
>
> It is reported that under the agreement, Bangladesh has the obligation to
> buy 80 percent of the merchandise from Indian suppliers, in addition to
> sourcing hundred percent consultancy services.
>
> It means the tied loan will make sure the recycling of the money to the
> Indian economy, except making some payment to local labours.
>
> The higher commitment fees for the loan is moreover, focused on making sure
> that the entire loan should be used in time to avoid penalty and to
> achieving total Indian strategic goals without failing.
>
> This is why the Prime Minister is reported to be partly unhappy with the
> terms of the loan, news reports said.
>
> BNP and the major opposition termed the loan as quite 'disgraceful' and
> landed sharp criticism against it. But Finance Minister AMA Muhith said it
> would help create condition to making Bangladesh a 'best servicing transit
> nation' in the region.
>
> Pranab Mukherjee speaking after the signing of the agreement here said, he
> is "confident that this credit line will be the stepping stone for a shared
> destiny to transform our bilateral engagement."
>
> http://www.ittefaq.com/issues/2010/08/10/news0033.htm
>
------------------------------------
[Disclaimer: ALOCHONA Management is not liable for information contained in this message. The author takes full responsibility.]
To unsubscribe/subscribe, send request to alochona-owner@egroups.comYahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/alochona/
<*> Your email settings:
Individual Email | Traditional
<*> To change settings online go to:
http://groups.yahoo.com/group/alochona/join
(Yahoo! ID required)
<*> To change settings via email:
alochona-digest@yahoogroups.com
alochona-fullfeatured@yahoogroups.com
<*> To unsubscribe from this group, send an email to:
alochona-unsubscribe@yahoogroups.com
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/