China to sign record US$25 billion in loans to Bangladesh

[Bengal_Tiger]

While lower interest rates should be welcomed, but the real take away of such mega projects is how much knowledge is transferred to the locals especially engineering know how. So that future projects are managed fully internally, which leads to savings and future expansions.

Basically it should not go the CPEC way, where even the workers are Chinese. Not much knowledge retained in Pakistan.

Yes you're right.

I'm sure the government and the business establishment are focused on indigenization of expertise and knowledge.

In military affairs it's called "ToT" (transfer of technology).

Whilst BD gets praise by some these days, that's only because that praise is to offset the general picture of it as an impoverished land, yes BD does deserve praise. However if you look closer we have a lot of work to do.

1. We are almost a one-trick pony with 80% of exports being textiles, something we are trying to rectify with diversification of products e.g pharmaceuticals, consumer goods, shipping etc.

2. Bangladesh is more like Indonesia (another big Muslim country) and following its trajectory of economic development. Bangladesh is following the path of other S.E. Asian states e.g. Thailand, Malaysia etc.

Pakistan can be compared to its S.W Asian, greater middle eastern brothers such as Afghanistan, Iraq, Syria, Yemen and is following that path.

 

[Project Dharma]

Good, whatever leads to development in the region makes us happy. Let's compete on investments and financial strength and get rid of the madrassas and the terrorism

 

[Metty]

China to sign record US$25 billion in loans to Bangladesh :biggrin2:
President Xi's visit heralds timely assistance for infrastructure projects which have been languishing for nearly a decade due to lack of funds
By Syed Tashfin ChowdhuryDHAKA, October 14, 2016 3:32 PM (UTC+8)

The streets of Dhaka adorned with posters of Chinese President Xi Jinping and Bangladesh Prime Minister Sheikh Hasina and the flags of the two nations -- Photo credit Shamin Ahmed
Chinese President Xi Jinping arrived in Dhaka to a red carpet welcome on Friday amid expectations of a record US$25 billion in loan agreements involving over 25 projects being signed between the two countries.

Most of the deals will support major infrastructure projects in Bangladesh which have been languishing for nearly a decade due to lack of funds, although Foreign Minister Abul Hassan Mahmood Ali declined to divulge details.

However, on the eve of Xi’s visit, a planning ministry secretary told Asia Times: “Some of the prestigious infrastructure projects that may to get loans include the Padma Bridge rail link project (US$2.57 billion), the Dhaka-Chittagong Railway project (US$ 3.03 billion), Sitakundu-Cox’s Bazaar Marine drive expressway and coastal protection (US$2.85 billion) and the four-lane Dhaka-Sylhet high way project (US$1.6 billion).”

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The proposed 169 kilometer Padma Bridge rail link will be constructed in four sections connecting central Bangladesh with the south of the country.

The Dhaka-Chittagong railway project will include a double-track standard-gauge railway line between Dhaka and Chittagong cutting travel time by three hours.

The Dhaka-Sylhet Highway project will see the upgrade of a 226-kilometer highway from Kanchpur to Sylhet. As a part of the upgrade, 60 small bridges, four flyovers and 27 box culverts will also be built on the highway.

The 160-kilometer Marine Drive Expressway will eventually connect with the Asian Highway-41 and the Bangladesh–China–India–Myanmar (BCIM) Economic Corridor.

The official said other projects earmarked for Chinese support are in “the communications, power, fuel, and information technology sectors.”

Calls Asia Times to the Chinese embassy in Dhaka went unanswered.

In contrast to record loan agreements, India extended a US$2 billion credit line to Bangladesh during the visit of Prime Minister Narendra Modi to Bangladesh in March 2016.

Xi’s Bangladesh visit is also significant as the first by a Chinese president to Bangladesh in 30 years.

Speaking to Chinese news agency Xinhua, Bangladeshi premier Sheikh Hasina said on Wednesday: “China has become our largest trading partner and we consider it a trusted partner in realizing our dreams. China is the leading generator of many of our mega-projects in terms of finance, capitalization and technology.”

Ahead of Xi’s visit, China’s ambassador in Dhaka Ma Mingqiang said Chinese investment in Bangladesh would increase significantly.

Commenting on Xi’s visit, international expert Dr. Delwar Hossain told Asia Times: “Dhaka and Beijing’s bilateral ties are already strong. After this visit, this will reach the next level.”

Hossain, associate professor for the Department of International Relations at the University of Dhaka, added: “Through the visit and the said loan deals … China is considering Bangladesh as a strong bilateral partner in mutual economic growth. From Bangladesh’s end, most of the infrastructure projects have been languishing for seven to eight years. It is great we are getting the funding at a right time.”

Security was beefed up from Thursday ahead of Xi’s visit. The stretch of road which leads to Le Meridien, the hotel where he will be staying, has been closed to traffic for 24 hours from 10am on Friday.

http://www.atimes.com/article/china-sign-record-us25-billion-loans-bangladesh/

yyyyyyyyyyeeeeeeeeeeeessssssssssssssssssssssssssssssssssssssssssssss


justlike pakistan......

 

[amoy]

China rightly belongs to South Asia too. Even better if SAARC, in which China is an observer, is entirely scrapped. China anyway can grow ties with South Asian peers on bilateral basis. India has floated BIMSTEC for a while - (a subregion around the Bay of Bengla?). Well, enough of fancy acronyms these days. What is needed is the wherewithal + capability to execute plans and deliver on targets.

China: Bangladesh's major development partner

Over the years China has become Bangladesh's major development partner. It contributes in infrastructure development, relief programmes at the time of natural disaster, gives political support in the global arena, and in trade and investment. China is one of the major trading partners of Bangladesh. China exports machineries, textile goods, cotton, paper, chemicals, etc. It is the number one military hardware source of Bangladesh. Bangladesh exports to China include readymade garments, fish, prawn, shrimps, raw jute and jute goods, leather goods, handicrafts, etc. Trade balance is heavily tilted in favour of China. In 2014-15 import payments to China was US$ 8.23 billion and export receipts form the country was only US$ 0.72 billion. In other words, Bangladesh imports 11 times more than its export to China. China invested US$ 0.42 billion in the same period. Net trade cash outflow during that financial year was US$ 7.09 billion.

China has contributed significantly in infrastructure development in Bangladesh compared to other development partners in the form of soft loans. China-Bangladesh Friendship Bridge (Buriganga Bridge) was one of the Chinese friendship's landmark contributions in the 1980's; 1990's landmark is Bangabandhu Convention Centre. China committed US$ 301.17 million during 1975 to 2001 in infrastructure development. During 2002-09 it was US$ 303.01 million. During 2010-16 the commitment made a remarkable jump to US$ 915.82 million. The jump implies that the bondage between the countries is getting stronger. It is expected that its contribution would reach to US$ 23 billion in next five years in the form of soft loans. Currently many development projects are in China's wish list. Some of them are Padma Bridge Rail Link (US$ 3.3 billion), Power Plant at Payra (US$ 3.0 billion), Marine Drive Expressway (US$ 2.86 billion), Expansion, Strengthening of Power System Network (US$ 2.04 billion), Akhaura-Sylhet Dual Gauge Rail Line (US$ 1.76 billion), Dhaka-Sylhet 4-Lane Highway (US$ 1.6 billion), and Dhaka-Ashulia Elevated Expressway (US$ 1.39 billion).

Chinese soft loan terms and conditions are 2.0 per cent interest with a repayment period of 15 years plus five years of grace period. The loan also carries 0.2 per cent commitment fees and 0.2 per cent management fees. In case of such loans, Chinese government selects the contractor and stipulates that all materials for the projects be purchased from China. Since October 23, 2015 China's central bank, People's Bank of China (PBC) interest rates have remained static at 4.35 per cent. In other words, Chinese central bank is lending with its commercial banks at 4.35 per cent, where it is offering less than half of its base interest rate to Bangladesh. Bangladesh government is trying hard to decrese the rate to 1.0 per cent and introduce limited tender system. Bangladesh is enjoying limited tender system in case of Indian soft loan. Under limited tender system, bidders from the loan providing country participate in the tendering process, instead of being handpicked by the government. Bangladesh should also negotiate that the materials that are available in Bangladesh (e.g., cement, rod, etc.) should be purchased locally. In this way cost of the projects may even be lowered.

Over the last few decades China has invested its trade surpluses in trillions of dollars in US and European bonds. In recent years these bonds are not producing expected yields, as both the US and Europe are maintaining almost zero interest rates in their countries since the 2008 financial crisis. On the other hand, with the increase in labour cost in China, Chinese investors are interested to shift their factories in low-labour cost regions. Bangladesh is one of the suitable places for relocating Chinese labour-intensive factories. Bangladesh is preparing two special economic zones: one in Munshiganj and other, in Chittagong for receiving Chinese investments in manufacturing sector.

Both Dhaka and Beijing are interested in building and improving international connectivity using land routes. Bangladesh's geographical position provides big advantages. Being a Bay of Bengal country and having land connections with India and Myanmar, Bangladesh can channel goods from its ports to India's land-locked eastern provinces, Nepal and Bhutan. Bangladesh, India, Nepal and Bhutan have already signed agreements for seamless transportation of people and goods. Bangladesh would be able to channel goods from Kolkata to Kunming via Ruili-Bhamo-Lashio-Mandalay-Tamu-Imphal-Sylhet after the construction of planned Kolkata-Kunming land route. It would also be able to transport goods to Gundum of Myanmar through Cox's Bazar by railroad, which is under construction and will be completed by 2022. Developing rail network, land roads, and river connectivity Bangladesh could become a sub-regional trading hub that will earn billions of dollars in near future.

China has great interest in the restoration of ancient Silk Road that connects Asian countries with Europe. In this regard China initiated 'One Belt, One Road (OBOR)' project. South Asian countries can connect to OBOR through China's another sub-regional initiative called K2K route (Kunming-Ruili-Bhamo-Lashio-Mandalay-Tamu-Imphal-Sylhet-Dhaka-Kolkata). The K2K initiative has been taken under another sub-regional platform named BCIM-EC (Bangladesh-China- India-Myanmar - Economic Corridor). Public Administration Minister Syed Ashraful Islam who is also Awami League General Secretary, recently suggested in a public speech restoration of an old Bangladesh-China road link.

 

[Project Dharma]

For the pakis that are happy, saalo sharam karo doob maro... even bangladeshi investment is called a loan which means it will be paid back.. tumhari to straight up bheekh hai :hippo::hippo:

 

[busesaway]

The problem with Bangladesh is that it has a very high birth rate. Their 2050 population will be close to 220 million, while Pakistani will be close to 350 million. (The two combined will be 600 million - approaching 1/2 of India).

From a personal perspective, it's important to note that South India's population will be around 250 million due to the high likelihood of negative population growth. I worry about the future of South Indians, even in Europe we're being pushed aside politically in favor of Muslims.

 

[amoy]

China to fund Bangladesh for 9th friendship bridge, other infrastructure projects
Xinhua | Updated: 2017-05-11 18:25

DHAKA -- China will fund Bangladesh for construction of the ninth Bangladesh-China Friendship Bridge and other infrastructure development projects.

Bangladesh's Economic Relations Department (ERD) Secretary Kazi Shofiqul Azam and Chinese Ambassador to Bangladesh Ma Mingqiang signed an agreement in this regard on Thursday in Bangladeshi capital Dhaka.

Ma said China has been supporting Bangladesh's infrastructure development to help it realize its economic development goals.

"I hope that we can use this money smartly and more efficiently so that more and more people can benefit from this excellent relationship between Bangladesh and China," Ma said.

Kazi Shofiqul Azam said Bangladesh's relationship with China is excellent and outstanding.

Seven friendship bridges have been completed across Bangladesh under Chinese grants, and the eighth one is under construction, he said.

"It will be a symbol of friendship actually. We hope that we will be able to sign another grant agreement in near future."

The Chinese assistance will play a vital role on the economic and social development of the country as well as the communication sector, an ERD statement said.

ERD said the location of the ninth Bangladesh-China Friendship Bridge and other infrastructure projects will be settled later on through negotiations of the two governments.

The eighth friendship bridge is under construction over Kocha River in southern Bangladesh. The length of the bridge will be 1,400 meters and Bangladesh Roads and Highway department has been carrying out the project.

The construction of the first Bangladesh-China Friendship Bridge, with a span of more than 917 meters in length, began in October 1986, and was completed in February 1989.