Dhaka to seek China’s credit support

Bangladesh would seek multi-billion-dollar credit support from China to implement its mega infrastructure projects, including building a deep-sea port near Sonadia Island in Chittagong.
Prime Minister Sheikh Hasina, who is now on a visit to China, would seek the financial assistance during a meeting with her Chinese counterpart, Li Keqiang, official sources said on Sunday. The meeting of the two premiers will be held today (Monday).
A senior External Resource Division (ERD) official told the New Nation yesterday that the Bangladesh Prime Minister would seek Chinese soft loan to implement a total of 14 mega development projects during her meeting with the Chinese leader.
The projects include Ganges barrage, a rail bridge over the Jamuna river, a high-speed “chord” train line between Dhaka and Comilla, a multi-lane tunnel under the Karnaphuli river, an exclusive economic zone for China and a deep-sea port near Sonadia Island.
Earlier, the Government took up these projects for Chinese investment and later it communicated to the Chinese Government for their funding support.
 “In reply to our proposal, the Chinese Government has shown keen interest to invest in the country’s mega infrastructure projects and it later asked for a list of the development projects from us,” the ERD official added.
The government has already sent the list of mega projects that China can invest. We also calculated the amount of funds needed to implement the projects.
As per a primary estimation, Bangladesh needs $9.0 billion for the implementation of these infrastructure projects.
 “A deal in this regard is expected to be signed between the two countries after the meeting with Sheikh Hasina and Li Keqiang,” said the ERD official.
Bangladesh would seek Chinese fund with an interest rate of 1.5 per cent setting a repayment period of 20 years.
He further said several countries including China have already made the proposal to build a deep-sea port near Sonadia Island at a cost of $5.0 billion. “Possibly a deal will also be signed with the Chinese Government for building the mega project,” he added.
According to him, China remained a key development partner for Bangladesh and in the last three years, its financial support with low interest rates surged significantly.