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ELEVATED EXPRESSWAY

Thais eager to help resolve traffic jam

Envoy suggests Dhaka to go for donors' soft loan

RAFIQ HASAN
Thailand is eager to help resolve traffic congestion in Dhaka with its Bangkok experience but Bangladesh should turn to donor countries for soft loans for the scheme, said Thailand Ambassador Suphat Chitranukroh Thursday.
"We can share the experience and help each other, but we are not a donor country to provide you loan at a low interest rate," he said referring to the first talks between Dhaka and Bangkok on constructing a 20km elevated expressway in the capital that ended inconclusively Monday.
The Thai delegation proposed to construct, as the first phase of the project, an expressway approximately 13km long, from Gulistan to the existing flyover at Mohakhali, at an estimated cost of Tk 1,218 crore with the money from Export Import Bank of Thailand.
While the Thai side wanted the loan to be provided as a commercial loan, the rate of interest for which is 6-7 percent, the Bangladesh side wanted the money as a soft loan, at an interest rate of less than 2 percent.
"For a low interest rate, both parties will have to go for a high level discussion," Ambassador Chitranukroh told The Daily Star yesterday before inaugurating the new Thai visa centre at Gulshan-1.
"Political intervention is required for this," he said, adding that Exim Bank has agreed to provide 60 percent of the fund at a normal commercial rate.
He said Bangladesh could approach donor agencies like the Asian Development Bank (ADB) and the Kuwait Development Fund for rest of the money.
Besides, the ambassador said, Thailand has its own development agenda because of the economic crisis it is facing after the tsunami havoc last year. "Lots of infrastruc-
ture was destroyed and economic activities suffered because of the tsunami. The GDP growth also declined recently to 5 percent from 7 percent".
Suphat said his country introduced a number of alternative transport systems like sky trains, monorails and underground train to ensure a comfortable journey for Bangkok's population of around eight million.
Bangladesh will also have to devise alternative modes of transport in Dhaka to ease huge traffic congestion on the roads.
On the condition of Thai contractors building the expressway, the ambassador observed that the issue could be resolved through negotiation.
The next round of talks will commence in Bangkok within 3-4 months, he said.
On a direct road link between Dhaka and Bangkok, the Thai envoy said the project of the Asian Highway is progressing fast and a direct road link might be possible by 2012-2015.
Appointed envoy to Bangladesh four months ago, Suphat observed that the rough mountainous territory of Mayanmar was the main obstacle to establishing a direct road link.
He, meanwhile, appreciated Bangladesh for establishing the Dhaka-Yangon road link.