China to provide $550.40m for single-point mooring
STAFF REPORTER
China will provide USD 550.40 million to Bangladesh to implement the much-anticipated Installation of Single-Point Mooring (SPM) with Double Pipeline project in an effort to ensure the countrys energy security.
Of the total amount of USD 550.40 million, China will provide around USD 82.56 million under the Chinese governments concessional loan while the remainder of USD 467.84 million will come under its preferential buyers credit.
A framework agreement was signed between China and Bangladesh yesterday. Economic Relations Division (ERD) secretary Kazi Shofiqul Azam and Chinese ambassador in Dhaka, Ma Mingqiang, inked the deal on behalf of their respective sides at the ERD conference room in the city. State minister for power, energy and mineral resources Nasrul Hamid was present.
The main objectives of the project, to be implemented under the Energy and Mineral Resources Division, are to strike a balance between the demand and supply of the countrys energy needs and ensure its energy security. It will also reduce system losses during imports of refined and non-refined fuel by lighterage operations.
Delivering his speech on the occasion, Nasrul Hamid said though the Bangladesh Petroleum Corporation (BPC) is one of the largest companies in Bangladesh, with an annual turnover of USD 5 billion, yet it is tasked only with importing oil and then selling it.
This is the first time that BPC is going in for an infrastructure project, he added.
The state minister said after signing this Framework Agreement that the government would feel more encouraged to go in for bigger projects. He added that the SPM Project would be an eye-opener, both for Bangladesh and China, in this sector.
Mentioning that the government is setting up the entire Bangladesh gas network system, Nasrul Hamid said, Were also going to set up two land-based liquefied natural gas (LNG) terminals, wherein were looking for good partners. China could be a good partner.
Referring to the exploration of gas in Bhola, he said there was a lot of ideas that Bangladesh wanted to share with China.
Hamid also said China would help Bangladesh in two big power sector projects, of which one would be implemented by the Dhaka Power Distribution Company Ltd. (DPDC) and the other by the Power Grid Company of Bangladesh Ltd. (PGCB).
He said China is expected to disburse funds for the SPM project from next January and it would take 36 months to build two deep sea pipelines from the sea at the Eastern Refinery.
Once the SPM project is implemented, the oil unloading time will be reduced to only 48 hours from 12 days while the country would be able to save USD 100 million per year by addressing the system losses.
Chinese ambassador to Dhaka, Ma Mingqiang, said this SPM project is of vibrant importance for the countrys energy sector as it will save around USD 100 million per year while, side by side, the unloading time would be significantly reduced.
Lauding the dynamic leadership of Prime Minister Sheikh Hasina, the Chinese ambassador said Bangladesh has been a model for the developing countries and, in fact, Bangladesh and China are the two fastest developing countries in the world.
He said the implementation of the SPM project can impart further impetus to Bangladeshs economic development, saying, We hope this project will be implemented as fast as we can do it. China is known to be fast and we need to show how fast we can bewe need to deliver good quality work.
