India wants its Exim Bank to monitor the projects it is financing in Bangladesh.
For this, the two countries are likely to sign a five-year agreement during Prime Minister Sheikh Hasina’s four-day visit to the neighbouring country beginning from today.
As per the agreement, Dhaka will provide support to the bank’s resident representative.
The bank’s staff can undertake periodic site visit and appraise the critical issues, attend meetings covered by the Economic Relations Division (ERD) and project authorities and resolve issues.
Bangladesh will also have to permit import of one motor vehicle for each representative and re-export of the items without any incidence of tax and duty.
The Indian bank opened its representative office in Dhaka in October 2017.
Through the bank the Indian government has extended three lines of credit (LOCs) amounting to $7.5 billion -- including $500 million for defence cooperation.
A total of 47 development projects were included under the LOCs. Twelve of the projects involving $355.69 million have been completed in the last eight years.
Ten projects are at the tender stage and the remaining 18 are at the: planning or details project planning or approval stages.