Bangladesh asks Chinese bank to fund $1bn-worth of development projects

Finance Minister AMA Muhith on Thursday announced that Bangladesh has asked for a loan of $1bn from China-based Asian Infrastructure Investment Bank. Minister Muhith met with AIIB Vice-President DJ Pandian at the Secretariat. DJ Pandian said Bangladesh is a rapidly growing country who needs to strengthen its infrastructure to provide for millions of citizens. He expressed his eagerness to foster a strong relationship between Bangladesh and AIIB. The AIIB established in 2016 looks to infrastructure in the Asia-Pacific region. It has 80 member countries and a capital of $100bn, which is two-thirds of the Asian Development Bank and half of the World Bank. The minister said the loan could sponsor seven infrastructure projects including power, rail and roads. The minister also said two of the projects have already been approved. The first project will connect 2.5m people in the rural areas to the national grid. It will also upgrade two sub-stations and convert 85km of overhead distribution lines in North Dhaka. It was approved on June 24, 2016. It also was the first AIIB project to be approved by a government. The second project is improving the natural gas infrastructure and efficiency of Titas Gas Field. It will also involve constructing 181km-long gas pipeline from Bakhrabad to Chittagong.