Bangladesh seeks $18 billion loan from China

@the_news_21

New Delhi: Set to sink further in the debt trap laid by Beijing, Bangladesh has asked China a loan of $18 billion to implement the development projects in its country on a priority basis. The request for financial assistance comes as the pandemic continues to grapple Dhaka’s domestic economy – with major hits on its textile and manufacturing sectors.

According to sources, the letter seeking the loan was sent by the Bangladeshi Finance Ministry to the Chinese High Commission in Dhaka for implementing 26 projects. Local media reports quoted a senior official at the ministry saying that a letter has been indeed sent to the Chinese government seeking an $18 billion loan on concessional and preferential basis for implementing mega projects.

China under President Xi Jinping has provided loans for six priority projects out of 26 projects signed during his visits to Bangladesh. The remaining projects have been pending for four and a half years, but Beijing has not confirmed the loan. The ERD has sought two types of loans for the 26 projects. These are Government Concessional Loan (GCL) and Preferential Buyers Credit (PBC).

Reports claimed that the government under Sheikh Hasina is now giving more importance to implementing the mega projects, which have been halted due to the novel coronavirus pandemic in the country, to rebound the economy.

Officials in Dhaka claimed that the first meeting of the Investment Co-operation Working Group (ICWG) between Bangladesh and China was held on December 2 in 2019. ERD sought loans for 17 projects on a priority basis. Of this, US$970.02 million is for strengthening PGCB’s grid network and construction of the Dhaka-Ashulia Elevated Expressway project will cost $1155.18 million. 

Thus in order to establish digital connectivity, a project will be taken with a cost of $837 million. Balancing Modernisation Rehabilitation and Expansion (BMRE) of the public sector jute mills project to be taken with a cost of $280 million.

Also, the Chinese Economic Zone Project in Chattogram will cost $221.18 million. Double Lane (Dual Gauge) railway line between Joydebpur-Ishwardi section at $1,045.59 million. The Rajshahi WASA surface water treatment plant will be constructed of $276.25 million, with the development of six BTV stations that will cost $125.12 million. Expansion and modernization of Mongla Port Facilities will cost $353.52 million while system loss reduction by replacing 5 million electric meters project will cost $467.95 million. A project to be formulated with a cost of $2,856,56 million for construction of Marine Drive Expressway and Coastal Protection Works from Shitakunda-Chattogram-Cox’s Bazar. Conversion of MG Railway Track into DG Railway Track in Akhaura to Sylhet Section of BR will cost of $1272.93 million.

The government has also sought $200 million for the construction of a new ICD near Dhirashram Railway Station. Hasina-led government is also looking to secure $805.35 million for expansion and strengthening of the power system network under the DPDC area and $853.05 million for the Teesta River Comprehensive Management Project. Around $250 million is sought for the purchase of six ships, $535.92 million for the development of the four-lane Barisal-Patuakhali-Kuakata Road. The construction of High-Tech Bridge on Rural Roads in Bangladesh aimed to achieve a village to city connectivity will cost of $800 million.