Extension of loan availability period sought for Karnaphuli tunnel

The Karnaphuli Multi Lane Road Tunnel project authority has requested an extension of the loan availability period from the Exim Bank of China.

The authority requested a 6-month extension till May 6, 2023. The period has ended on November 6, 2021.

Md Harunur Rashid Chowdhury, the project’s director, recently sent a letter to the Bangladesh Bridge Authority (BBA) in this regard.

The request was made due to the delayed commencement of the project and the likelihood that the project may take longer than the loan availability period, the letter said.

In June 2015, the project’s contract price was fixed at $70.58 crore. For which, two loan agreements were signed between the Economic Relations Division and the EXIM Bank of China in October, 2016.

The delay in commencement was caused because the loan became available after one month it became effective because of the employer needing to fulfil all required conditions in the agreement, the letter said.

Furthermore, the delay in meeting the condition was caused by a delay in exchanging necessary documents by the employer, the letter said.