China keen to provide loan for another metro rail project

Loans for the development of a metro rail line that would travel via Sadarghat from Gabtoli to Narayanganj are of interest to China Exim Bank.

The Tk 600 billion metro rail-2 project would receive Tk 450 billion from China.

On Wednesday afternoon, the visiting Chinese Exim Bank delegation met with the Economic Relations Division (ERD). At the meeting conducted in the ERD auditorium, the ERD team was led by Mirana Mahrukh, the extra secretary for ERD.

During the conference, nine different projects were discussed. In addition to metro rail, the Chinese bank is considering lending money for the Tk 410.80 billion Bhanga to Payra port railway project.

Bangladesh also expressed interest in Chinese loans for the Muktarpur bridge in Munshiganj and the building of a new bridge over the Kocha River in Pirojpur. The construction of broad gauge railway track from Dhalarchar in Pabna to Panchuria in Faridpur, dual gauge rail track from Joydebpur in Gazipur to Jamalpur, a railway workshop in Rajbari, and the conversion of the metre gauge line from Bhairab Bazar to Mymensingh are among the other railway projects listed for Chinese loans. The meeting from yesterday included discussion of these initiatives.

In the interim, the availability of Chinese cash worth USD 5 to USD 7 billion was discussed. Bangladesh notified China about the trade facility’s interest rate, payback schedule, and grace period for trade with other nations or organizations.

According to an ERD source, loans made in Chinese yuan can be used to establish a fund similar to the export development fund. Payment in Yuan will be made to Bangladeshi exporters in exchange for Chinese goods.

According to an ERD official, prime minister Sheikh Hasina’s planned travel to China from July 8–11 may be the occasion to make the announcement regarding the Chinese loans for these road and rail projects.

For the past year, China has not given Bangladesh any loans. As of May 2023, a Chinese loan was available for Rajshahi WASA’s infrastructure development project. Whenever China offers funding for a project, the Chinese government usually chooses the contractor for that particular project. The job is carried out by that contractor. The ability to choose contractors through a tendering process is nonexistent.