Head of the European Union delegation in Dhaka Charles Whiteley has said that the European Investment Bank wants to do more business in Bangladesh as the country is a “good risk” for loans.
He also said that with its development, Bangladesh is in a position to choose with whom it wants to do business.
“We don't lecture countries like Bangladesh; instead, we work in genuine partnership with them, recognizing their status as an emerging power,” he said while speaking at the DCAB Talk of Diplomatic Correspondents Association, Bangladesh on Monday.
DCAB President Nurul Islam Hasib and General Secretary Ashiqur Rahman Apu conducted the program.
The ambassador spoke on the EU, and Bangladesh partnership and the new initiative of the “Global Gateway” through which Brussels is offering “quality” for infrastructure development and technology transfer.
He, however, said climate change is the biggest challenge for Bangladesh as the country is graduating from the LDC.
‘We don’t lecture Bangladesh’
The ambassador will soon leave Bangladesh ending his three-year tenure in Dhaka.
“Bangladesh's voice is increasingly important, and that's because of your economic clout, the fact your economy is growing so well, and also the presence you bring to the world stage in different contexts. And that voice is being heard, including through the Climate Vulnerable forum,” he said.
The ambassador highlighted a "psychological change" in the EU, Bangladesh relations.
“We don't lecture countries like Bangladesh. We work in genuine partnership with them as an emerging power and an emerging economic power. And that's where the psychological change. Sometimes people are puzzled. They say...you should say this to Bangladesh. You should say that to Bangladesh. So that's not the right starting point. We discuss and we address difficulties and challenges together, like climate change, like the various conflicts around the world, like digitalization,” he said.
‘Good risk for loans’
The Global Gateway came to the fore in Bangladesh last year when Prime Minister Sheikh Hasina was invited in October to Brussels for the Global Gateway Forum.
The European Investment Bank also signed €400 million for renewable energy projects. The support includes both loans and grants and technical assistance.
“Bangladesh is in a position to choose because many countries want to do business with Bangladesh. It's plain and simple. Countries are offering loans or grants to support the development of infrastructure.
“Of course, you have your homegrown paid key pieces of infrastructure, like Padma Bridge, but as a country that has a relatively healthy debt to GDP ratio, I think the last figure I saw was 37%, as a country where IMF is pleased to work and sign off on the continuing support that the IMF is giving, as a country where you have never defaulted on a debt, that’s a very interesting profile to have.
“I think the average debt to GDP ratio in Asia is something like 80%. The average in the EU is over 80%. So that figure is quite a striking one. And that means basically, Bangladesh is a good risk for loans. And that's why the European Investment Bank wants to do more business here,” Charles Whiteley said.
Why is the Global Gateway different?
Global Gateway is seen by many analysts as a European version of China's Belt and Road Initiative.
The ambassador, however, does not agree.
“It's very different from the Chinese offer. What we're about is offering a different vision of support to connectivity, infrastructure and digitalization,” he said, adding that the first difference is about building “genuine partnerships”.
He emphasized quality infrastructure, fair competitive tenders, and not mandating specific firms.
“And when I say the best deal, it's not just about who makes the cheapest bid. You have to look at quality. And I think we are in the business of working on quality infrastructure that stands the test of time, that doesn't collapse after several years and needs replacing.
“So my first point is it's (global gateway) a quality offer. The second point is it's not just about the money. We bring in support for technical assistance and advice and expert input and it's a kind of technology transfer. So the best example is the renewable energy facility, which the prime minister signed with our president Ursula von der Leyen in Brussels in October last year,” he said.
The final point about why the global gateway is different from other offers, he said, is this “meeting of interests”.
Unlike other countries, Bangladesh positively embraces EU regulations, seeing them as beneficial for long-term competitiveness and environmental improvement.
This strategic patience and investment in quality and compliance are expected to give Bangladesh a competitive edge in the future, he said.
