Projects include dual gauge rail tracks in Joydevpur�Mymensingh, Joydevpur-Ishurdi
sections, Padma bridge rail link, Dhaka-Ashulia elevated expressway
Chinese shot in the arm
Beijing to give $6.38b for eight projects
JAGARAN CHAKMA
Beijing has nominated eight projects to provide a loan of USD 6.38 billion in response to Dhakas request for financial cooperation in important projects in Bangladesh, according to sources at the Economic Relations Division (ERD).
With a two-lane tunnel underneath the Karnaphuli River project, the total amount will reach USD 7.3 billion. Earlier, Bangladesh had sent a list of 15 important projects and sought financial cooperation, as per the request of China, to be included in Chinas 13th five-year plan (2016-2020).
The nominated projects are: Balancing modernisation, rehabilitation and expansion of public sector jute mills under the Bangladesh Jute Mills Corporation (USD 280 million); construction of the DG track parallel to the existing MG line in the JoydevpurMymensingh section (USD 258.36 million); construction of a DG line (dual gauge) between the Joydevpur-Ishurdi section (USD 752.79 million); Padma bridge rail link (Phase-I) USD 1,658.57 million; Padma bridge rail link (Phase-II) USD 917.18 million; power grid network strengthening project under PCGB (USD 1,689.12 million); modernisation of telecommunication network for digital connectivity (USD 270.47 million); and construction of Dhaka-Ashulia elevated expressway (USD 1,750.47 million).
Meanwhile, on Tuesday, the government signed a deal with a Chinese state-owned company for the construction of the much-talked-about two-lane tunnel underneath the Karnaphuli river in Chittagong.
Road transport and bridges secretary MAN Siddique and China Communication Construction Company Ltd (CCCCL) chairman Liu Qitao inked the deal on behalf of their respective sides.
China will provide Tk. 705.80 million for the project and rest of the funds will come from the Bangladesh government exchequer.
ERD officials said they are currently negotiating with different companies suggested by the Chinese government. They also said a number of Chinese companies have placed proposal regarding the projects.
Earlier, the Chinese embassy had informed the Prime Ministers Office (PMO) that the list of 15 development projects submitted to Beijing, involving over USD 8.69 billion, for inclusion in Chinas 13th five-year plan (2016-2020), would be considered positively. The Embassy of China in Bangladesh avails itself of this opportunity to renew to the PMO of Bangladesh the assurance of its highest consideration, the embassy had stated.
The Chinese embassy had also stated that other projects are also in the pipeline.
For better coordination and facilitation of these projects, it would be meaningful if a special high-level committee could be set up under the PMO, the Chinese embassy suggested.
ERD officials said a commercial deal will be signed with the Chinese companies after completing negotiations and a financial agreement will follow suit. However, the entire process would take some time, they added.
