Projects with Chinese Loans: One complete, eight running at adequate pace
Last Updated on August 22, 2023 8:40 am
One of the development projects undertaken on Chinese loans has been completed while eight others are being implemented in full swing following a prolonged hiatus for the pandemic, said relevant officials and Economic Relations Division (ERD).
A memorandum of understanding titled “Strengthening investment and production capacity cooperation”, comprising 27 projects and a cost of $20 billion, was signed during Chinese President Xi Jinping’s visit to Bangladesh in 2016.
Agreements for loans of $8.08 billion for nine have been signed, out of which the Chinese authority disbursed $4.47 billion till June 2023.
The eight projects are running at an “adequate” pace at the moment and disbursement of funds is also “satisfactory”, said a senior ERD official.
The ERD is sitting with project implementing entities, the embassy of China and the Exim Bank of China from time to time to identify bottlenecks, he said.
The project that has been said to be completed is titled “Development of ICT Infra-network for Bangladesh Government Phase III”.
The project encompassed ensuring internet access for 60 per cent of the country’s population by establishing broadband connections in 2,600 unions.
It also sought to enhance the distribution of technical knowledge and provide high-speed internet facilities at the union level for connecting Union Digital Centres.
Agreements for loans of $8.08 billion for nine have been signed, out of which the Chinese authority disbursed $4.47 billion till June 2023
It cost $156.56 million, all of which has been disbursed.
Of the eight ongoing projects, the one closest to completion is “Bangabandhu Sheikh Mujibur Rahman Tunnel” under the Karnaphuli river in Chattogram.
The first tunnel in South Asia to be constructed under a river, 98 percent of it is complete.
The project will be opened to traffic on October 18. “It is 100 percent sure,” said the project’s director, Md Harunur Rashid.
It is costing $705.8 million, of which $660.51 million has been received till June.
Similarly, another project on “Installation of Single Point Mooring with Double Line” has had 98 percent of it complete.
The implementing agency, Eastern Refinery Limited, has had its deadline extended for a fourth time by one year to June 2024 while the cost raised by around Tk 1,000 crore, or 15 percent.
This was due to the increase in the exchange rate of the taka against the US dollar, which was needed for paying foreign contractors and consultants.
The project is costing $465.46 million, of which $550.67 million has been received till June.
Next to follow suit is the Padma Bridge Rail Link, which has been said to have achieved 80 per cent progress till June.
However, Bangladesh Railway sought a one-year extension on the loan availability to avoid cost revisions.
The project’s director, Afzal Hossain, hopes to complete the project in due time, that is June 2024.
The rail line is costing $2667.94 million, of which $1,991.47 million has been received till June.
Another project on constructing a 24-kilometre elevated expressway connecting Dhaka to Ashulia has achieved 15 per cent progress till June.
There were a few challenges, including over land acquisition, said the project director, Shahabuddin Khan.
It is costing around $1.2 billion, of which $170.6 million has been disbursed till June, and is expected take until June 2026 to complete.
Apart from these, three projects are now being evaluated and loan applications have been sent over seven projects.