Bangladesh may review, scrap non-beneficial MoUs & projects signed with India: Reports
Times of India – September 2, 2024
Bangladesh's interim government, under the leadership of Nobel laureate Muhammad Yunus, is considering the possibility of reviewing and potentially cancelling any Memorandum of Understandings (MoUs) that were signed with India if they are found to be non-beneficial to the country, according to several Bangladeshi media reports citing quotes from the interim foreign minister.
While there has been no formal announcement regarding the review of the MoUs, sources cited by a report in Prothom Alo said the Indian government perceives the review consideration as an early phase for the new administration in Bangladesh, which may develop a different stance as it matures.
As per the reports, Bangladesh's interim foreign affairs minister Touhid Hossain, during a recent press conference emphasised that MoUs are not binding agreements and can be modified or revoked as necessary.
"MoUs are not agreements. Those can always be revised. If the Bangladesh government thinks those MoUs are not beneficial, those can always be reviewed," Bangladesh media quoted Hossain telling reporters at the Ministry of Foreign Affairs after returning from Organisation of Islamic Cooperation (OIC) meeting.
He noted that if the Bangladeshi government determines that these MoUs do not serve the nation's interests, they can certainly be reassessed.
Several political analysts have said the interim government is under the perception that the
Sheikh Hasina administration had a close relationship with India and may have favored Indian interests excessively when signing the MoUs.
In response to questions about the potential extradition of former Prime Minister Sheikh Hasina, who has taken refuge in India following her ousting on August 5, Hossain stated that the government would pursue her extradition if legally necessary. He mentioned that if a court mandates action to bring her back from India, the government would make every effort to comply, although the final decision rests with India, which has its own legal protocols to follow. Despite the existence of an extradition treaty between the two nations, the process may be complex.
In June 2024, Sheikh Hasina's administration signed a total of ten MoUs with India, which included seven new agreements and the renewal of three existing ones. These agreements were established during high-level discussions at the Hyderabad House in India, coinciding with Hasina's two-day state visit.
India-funded projects also under review
Meanwhile, uncertainty has also emerged over the future of Indian loans to Bangladesh.
The planning ministry is reviewing the feasibility of ongoing and proposed projects funded by Indian Line of Credits (LOCs).
This review will include the assessment of current and proposed projects under three Indian LoCs, Prothom Alo reported.
Project stakeholders believe that many projects funded under these LoCs are primarily for Indian interests. For instance, the four-lane road from Ashuganj to Akhaura is expected to facilitate the transit of Indian goods, said the report citing officials.
India had promised Bangladesh loans totaling $7.36 billion across three LoCs in 2010, 2016, and 2017. However, the actual disbursement has been much lower than expected, with only $1.80 billion released to date, according to Bangladeshi media reports.
A total 36 projects have so far been taken in sectors such as road and rail connectivity, energy, and infrastructure, under the three L0Cs. Of these, 15 have been completed, eight are ongoing, and the remaining projects are either in the stages of consultant and contractor appointments or proposal preparation.
As per a deal signed between India and the now-ousted Hasina government, Indian Exim Bank provided Lines of Credit (LoC) for various projects.
The Ashuganj-Akhaura road project was one such initiatives funded through the second LoC.
As per the rules governing LoC-funded projects, Indian contractors must be appointed, and 65% of the project's goods and services must be sourced from the country, said the report by Prothom Alo.
Border link project halted
In a related development, an Indian credit-funded project to upgrade approximately 50 kilometers of road from Ashuganj in Brahmanbaria to the Akhaura border, has been suspended as officials from the Indian contracting firm have abandoned the project and returned to India, said a report by Prothom Alo citing sources.
This road upgrade project was initiated in 2017.
After a revision, the project cost was estimated at Tk 57.91 billion (approx Rs 4,000 crore), with Tk 29.82 billion (approx Rs 2,000 crore) funded by Indian loans under the second Indian Line of Credit (LoC).
The remaining Tk 28.09 billion (approx Rs 1,970 crore) is to be provided by the Bangladesh government. The project is scheduled to be completed by June 2025. However, only 50% of the work have been finished by June 2024.
Teesta water-sharing deal
Meanwhile, Bangladesh's interim government said it wants to restart dialogue with India on the Teesta water sharing treaty.
Adviser on water resources Syeda Rizwana Hasan asserted that upper-riparian and lower-riparian countries should adhere to international principles on the distribution of water.
Speaking to PTI in Dhaka, Hasan expressed confidence that the Teesta treaty and other water-sharing agreements with India would be resolved amicably through dialogue but suggested that Bangladesh might consider international legal documents and principles if an agreement cannot be reached.
"I have discussed the issue of Teesta water sharing with all relevant stakeholders (in Bangladesh). We have discussed that we need to restart the process and dialogue regarding the Teesta treaty. We also have to work on the Ganges treaty, which is coming to an end in two years," she told PTI in an interview on Sunday.
"Both sides agreed, and a draft of the Teesta water-sharing agreement was prepared, but the agreement was not signed due to the opposition of the West Bengal Chief Minister. The fact remains that we have not been able to finalise the agreement. So, we will start from that point with the draft of the agreement and urge India to come forward and restart the dialogue process," she said.
India and Bangladesh were set to ink a deal on Teesta water sharing during then-Prime Minister Manmohan Singh's Dhaka visit in 2011, but West Bengal Chief Minister Mamata Banerjee declined to endorse it, citing scarcity of water in her state.
"We would try to find an amicable solution. As this is an international water issue, it also concerns other countries' consideration of legal entitlement. So, how much water is available and whether it is sufficient is unclear to us. Even if very minimal water is available, the flow must continue to Bangladesh due to international sharing norms," she said.
South Asia News: Under the leadership of Muhammad Yunus, Bangladesh's interim government is contemplating a review of MoUs and infra projects with India. If these MoUs
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