Bangladesh’s mega rail link project faces fund crunch

China Railway Group Ltd, the contractor for the biggest project of Bangladesh Railway (BR), Padma Rail link project, said the Bangladesh government owes it $400 million, reported Daily Star

Feb 25, 2021
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China Railway Group Ltd, the contractor for the biggest project of Bangladesh Railway (BR), Padma Rail link project, said the Bangladesh government owes it $400 million, reported Daily Star. 

The firm also stated the payment delay rendered it unable to buy sufficient construction materials and pay subcontractors and suppliers on time.

"Project execution is naturally slowing down, and project costs are increasing day by day," CREC, said in a press release.

"The government of Bangladesh has set a target of opening both rail and road on the Padma Bridge on the same day. However, the fund crisis seems to have emerged as an impediment to completing the construction process," reads the statement.

The firm also claimed that it had borrowed heft money to keep the project fast track.

Golam Fakhruddin Ahmed Chowdhury, the project director from Bangladesh Rail, said he would not comment about the allegations. He claimed when he contacted the officials of the firm they denied releasing any such press release.

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