Bangladesh expects an announcement of US$40 billion in project assistance from China in the next five years during Chinese President Xi Jinping’s state visit to Dhaka, official sources said. Bangladesh government has already informed China Exim Bank, the state funding agency of Chinese government, of it while Economic Relations Division (ERD) and the bank have reached a consensus about funding to 21 local projects, ERD sources said. “We’ll be seeking $40 billion in project assistance from the Chinese government in the next five years. Of the potential assistance, we’re giving highest priority to funding for Chinese economic zone in Chittagong,” State Minister for Finance and Planning MA Mannan told reporters recently. During Xi Jinping’s Dhaka visit on October 14-15, an MoU between the two governments regarding the funding is expected to be signed, official sources added. ERD officials said there will be scope for inclusion of some priority projects of the government in the funding list prior to the President’s visit as the government is still working on scrutinising priority projects in response to demands from different ministries. The ERD sent a list of 25 projects to China Exim Bank for funding and the bank primarily showed interest in 21 projects. Later, some ministries proposed some more projects. The Power Division alone sought $27.13 billion for its 22 power projects, according to official sources. Prime Minister’s Office (PMO) will finalise the list of priority projects and a decision came for seeking Chinese assistance for some priority projects in a recent meeting held at PMO, sources added. Bangladesh government has already allocated 700 acres of land for setting up the Chinese economic zone in Chittagong. Chinese government has assured Bangladesh of providing $280 million to the project, including $50 million in grants, ERD sources said. The government is proposing $1,603.2 million funding for Dhaka-Sylhet highway four-lane project, $2,856.5 million for building Sitakunda-Chittagong-Cox’s Bazar coastal road, $1,756 million for upgrading Akhaura-Sylhet meter gauge rail line to broad gauge line, $500 million for installation of single point mooring with double pipeline project and $500 million for surface water treatment plant project of Rajshahi WASA. Besides, $1,658.5 million is being sought for Padma bridge rail link (phase-1) project, $917.1 million for Padma bridge rail link (phase-2) project, $1.39 billion for constructing Dhaka-Ashulia expressway. Out of the power projects, $3.80 billion will be sought for two units of 1320MW power plant in Pyra, Patuakhali, $3.39 billion for 1200MW power plant in Cox’s Bazar and $1,573 million for 1320MW coal-based power plant of RPCL under BREB. ERD officials hope that assurance of financing for some of these projects may come during Jinping’s visit. Commercial contracts for some important projects may also be signed during the visit. Loan contract may be signed for development of national ICT infra-network for Bangladesh government phase-3, Karnaphuli river tunnel project, Chinese economic zone project, procuring six vessels from China and Dasherkandi water treatment plant project, they added.
