China to fund Tk 3,505cr for 2 sewerage treatment projects

After hectic negotiation for three years, China has finally decided to finance two projects of the Dasherkandi Sewerage Treatment Plant, three 39,000 DWT (deadweight tonne) bulk carriers and 39,000 DWT oil tankers for the Bangladesh Shipping Corporation (BSC).
According to a source in the Economic Relations Division (ERD), the Chinese embassy on July 10 sent two separate framework agreements to provide a concessional loan at 2 per cent annual interest with a five-year grace period.
According to a draft framework, China has agreed to provide USDS 447.32 million (Tk. 3,505.32 crore) for these two projects.
The ERD source said the date of signing of the agreement is yet to be fixed.
The Dasherkandi Sewerage Treatment Plant project, with an outlay of Tk. 3,317.77 crore, has got the go-ahead from the Executive Committee of National Economic Council (ECNEC). One of its objectives is to protect the environment and the nearby Hatirjheel project.
The Dhaka Water and Sewerage Authority (WASA), under the Local Government Division, is supposed to implement the project by December 2019. Of the total project cost of Tk. 3,317.77 crore (USD 280 million), Tk. 1,123.77 crore will come from the national exchequer, Tk. 2,184 crore as assistance from China Exim Bank, and Tk. 10 crore from the organisation’s own fund.
The sewerage treatment plant, with a capacity to treat 500 million litres of sewage daily, will be built at Khilgaon in Dhaka. A sewage lifting station will also be built. Sixty acres of land have been acquired at Khilgaon to build the plant.
The local government and rural development ministry undertook the project to treat the sewage water of major parts of Dhaka city, which now falls into the Balu river through the Hatirjheel project. These areas include Dhanmondi, Kalabagan, Gulshan, Banani, Baridhara, Bashundhara, Mohakhali, DOHS, Tejgaon, Moghbazar, Eskaton, Niketon, Aftabnagar and Badda.
The China National Machinery Corporation (CNMC) will provide three oil tankers and three bulk carrier tankers to the state-run BSC on suppliers’ credit from China Exim Bank Ltd. The BSC has decided to procure six ships after buying its last bulk cargo vessel, MV Banglar Shikha, in 1991.
The project summary says it will help the government save a huge amount of foreign currency it spends on importing fuel, fertiliser, sugar, and cement clinker. “The capacity of BSC will be enhanced if the six new vessels can carry imported goods from abroad and the government can save a huge amount of foreign currency,” the project summary says.
In 2011, the BSC had sent a proposal to the CNMC for six vessels and signed an MoU on June 15, 2012. On April 30, the shipping ministry signed a contract with the CNMC. The cost of each tanker is Tk. 282 crore, while each bulk carrier will cost Tk. 197 crore.
The six vessels are supposed to reach Bangladesh within this year.

China to fund Tk 3,505cr for 2 sewerage treatment projects

After hectic negotiation for three years, China has finally decided to finance two projects of the Dasherkandi Sewerage Treatment Plant, three 39,000 DWT (deadweight tonne) bulk carriers and 39,000 DWT oil tankers for the Bangladesh Shipping Corporation (BSC). According to a source in the Economic Relations Division (ERD), the Chinese embassy on July 10 sent two separate framework agreements to provide a concessional loan at 2 per cent annual interest with a five-year grace period. According to a draft framework, China has agreed to provide USDS 447.32 million (Tk. 3,505.32 crore) for these two projects. The ERD source said the date of signing of the agreement is yet to be fixed. The Dasherkandi Sewerage Treatment Plant project, with an outlay of Tk. 3,317.77 crore, has got the go-ahead from the Executive Committee of National Economic Council (ECNEC). One of its objectives is to protect the environment and the nearby Hatirjheel project. The Dhaka Water and Sewerage Authority (WASA), under the Local Government Division, is supposed to implement the project by December 2019. Of the total project cost of Tk. 3,317.77 crore (USD 280 million), Tk. 1,123.77 crore will come from the national exchequer, Tk. 2,184 crore as assistance from China Exim Bank, and Tk. 10 crore from the organisations own fund. The sewerage treatment plant, with a capacity to treat 500 million litres of sewage daily, will be built at Khilgaon in Dhaka. A sewage lifting station will also be built. Sixty acres of land have been acquired at Khilgaon to build the plant. The local government and rural development ministry undertook the project to treat the sewage water of major parts of Dhaka city, which now falls into the Balu river through the Hatirjheel project. These areas include Dhanmondi, Kalabagan, Gulshan, Banani, Baridhara, Bashundhara, Mohakhali, DOHS, Tejgaon, Moghbazar, Eskaton, Niketon, Aftabnagar and Badda. The China National Machinery Corporation (CNMC) will provide three oil tankers and three bulk carrier tankers to the state-run BSC on suppliers credit from China Exim Bank Ltd. The BSC has decided to procure six ships after buying its last bulk cargo vessel, MV Banglar Shikha, in 1991. The project summary says it will help the government save a huge amount of foreign currency it spends on importing fuel, fertiliser, sugar, and cement clinker. The capacity of BSC will be enhanced if the six new vessels can carry imported goods from abroad and the government can save a huge amount of foreign currency, the project summary says. In 2011, the BSC had sent a proposal to the CNMC for six vessels and signed an MoU on June 15, 2012. On April 30, the shipping ministry signed a contract with the CNMC. The cost of each tanker is Tk. 282 crore, while each bulk carrier will cost Tk. 197 crore. The six vessels are supposed to reach Bangladesh within this year.