11 priority projects: BD sits with China Sept 09 to confirm $5.4b loan

Bangladesh is likely to seek confirmation of US$ 5.40 billion Chinese loan for 11 priority projects, whose implementation has been delayed for years due to lack of foreign assistance, officials said on Wednesday.

The government officials concerned are going to sit with Chinese officials in Dhaka next week for getting concrete assurance of financial support for the 11 projects.

Dhaka has been waiting for years to get Beijing's response for these, they also said.

The Bangladesh government sought financial support amounting to some $20 billion from Beijing more than four years ago for bankrolling a total of 27 development projects.

According to the plan, Bangladesh would implement the projects between 2016 and 2020 with the fund.

In the meantime, China has confirmed loan for five projects only. The rest of the 27 projects are still struggling due to fund shortage, the officials noted.

They further told the FE that implementation of most of these projects has been delayed due to absence of funding assurance. Now the government will talk with China for funding the 11 priority projects.

"We will sit in a meeting with the Chinese officials in Dhaka on September 9 for getting Beijing's solid assurance of assistance for the 11 priority projects," said an official of the Ministry of Finance (MoF).

"The meeting can be a tri-partite one, as the Economic Relations Division (ERD), line ministries of the proposed projects, and representatives from the Chinese Embassy in Dhaka will take part in it," he added.

Another official of the MoF said holding the meeting with China has become very essential, as Bangladesh has been struggling with execution of most of the proposed 27 projects.

"The country sought $20 billion assistance from China more than four years ago. But, we have not yet received adequate response from them. Now we want to be confirmed about the lender's position on the financing," he added.

The MoF official said in the discussion next week, Dhaka will seek to know Beijing's position on the pledged financing for the 11 projects.

Among these, Bangladesh will seek assurance on providing $1.27 billion funds for converting metre-gauge (MG) railway track to dual-gauge (DG) from Akhaura to Sylhet, $1.04 billion funds for construction of double railway lines between Joydebpur and Ishwardi, $970.02 million funds for the Power Grid Company of Bangladesh Ltd's (PGCB) network expansion and strengthening project, and $837 million funds for digital connectivity project.

Besides, the country will also try to know China's position regarding $276.25 million proposed funding for the Rajshahi Water Supply and Sewerage Authority's (WASA) surface water treatment plant project, $125 million funding for setting up six TV stations of the Bangladesh Television (BTV), $353.5 million for modernisation of the Mongla Port facilities, $280 million for BMRE (balancing, modernisation, rehabilitation and expansion) of the state-owned jute-mills, and $221 million for Chinese economic and industrial zones in Chittagong project.

The MoF officials said they hope that the meeting on September 9 will develop the Bangladesh-China economic cooperation further.

During Prime Minister Sheikh Hasina's Beijing visit in this July, the countries signed two loan agreements for expanding and strengthening power system network in areas under the Dhaka Power Distribution Company Ltd (DPDC). China will provide $1.4 billion funds under the deals.

Besides, Bangladesh and China also signed seven other instruments in different sectors, including aid for the Rohingyas, economic and technical cooperation, investment, power, culture and tourism etc., the officials said.

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