China firm wants commercial contract for highway upgrade

China Harbour Engineering Company Limited (CHEC) has sought cooperation from the Government of Bangladesh for signing a commercial contract on upgrading the Dhaka-Sylhet highway to four lanes, with a separate service lane on either side. In November last year, CHEC wrote to the road transport and bridges ministry that the framework agreement, signed during the visit of Chinese president Xi Jinping in October 2016, is not acceptable by China's Exim Bank, as it was not in accordance with the procedure agreed to by both governments.
“As per the procedure agreed to by both governments, a commercial contract is to be singed. This was clearly mentioned in the nomination letter issued by the Chinese government. Therefore, we are unable to submit application for project funds to the China Exim Bank,” CHEC said.
“CHEC is committed to starting the project as early as possible in 2017. Therefore, we are very much in need of getting the project funds allocated by China Exim Bank for 2017. Therefore, we sincerely request your kind consideration to finalise and sign the commercial contract for this project before November,” it added.   
However, sources in the Economic Relations Division (ERD) said the process is on and they are trying to finalise negotiations for a number of projects. They also said the outcome of negotiations would not be visible before March.
According to the framework agreement, it is mandatory that a commercial contract agreement is signed within 180 days. The road transport and bridges ministry has in the meantime formed a committee, headed by the secretary of the Road Transport and Bridges Division, to expedite financing of the project.
Earlier, finance minister AMA Muhith had directed the Economic Relations Division (ERD) to take the initiative to accept China’s financing proposals for a four-lane highway from Dhaka to Sylhet. Besides, Muhith said that except China, no assurance of financial assistance for the highway has been received yet. “China has offered its cooperation for the project. We should take a final decision regarding this issue,” he added. He also asked the ERD to inform the road transport and bridges ministry about the initiative.

China firm wants commercial contract for highway upgrade

China Harbour Engineering Company Limited (CHEC) has sought cooperation from the Government of Bangladesh for signing a commercial contract on upgrading the Dhaka-Sylhet highway to four lanes, with a separate service lane on either side. In November last year, CHEC wrote to the road transport and bridges ministry that the framework agreement, signed during the visit of Chinese president Xi Jinping in October 2016, is not acceptable by Chinas Exim Bank, as it was not in accordance with the procedure agreed to by both governments. As per the procedure agreed to by both governments, a commercial contract is to be singed. This was clearly mentioned in the nomination letter issued by the Chinese government. Therefore, we are unable to submit application for project funds to the China Exim Bank, CHEC said. CHEC is committed to starting the project as early as possible in 2017. Therefore, we are very much in need of getting the project funds allocated by China Exim Bank for 2017. Therefore, we sincerely request your kind consideration to finalise and sign the commercial contract for this project before November, it added. However, sources in the Economic Relations Division (ERD) said the process is on and they are trying to finalise negotiations for a number of projects. They also said the outcome of negotiations would not be visible before March. According to the framework agreement, it is mandatory that a commercial contract agreement is signed within 180 days. The road transport and bridges ministry has in the meantime formed a committee, headed by the secretary of the Road Transport and Bridges Division, to expedite financing of the project. Earlier, finance minister AMA Muhith had directed the Economic Relations Division (ERD) to take the initiative to accept Chinas financing proposals for a four-lane highway from Dhaka to Sylhet. Besides, Muhith said that except China, no assurance of financial assistance for the highway has been received yet. China has offered its cooperation for the project. We should take a final decision regarding this issue, he added. He also asked the ERD to inform the road transport and bridges ministry about the initiative.