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China proposes $2.4bn for Padma Bridge

  • Published at 10:12 am July 9th, 2013
China proposes $2.4bn for Padma Bridge

Chinese state-owned company Poly Technologies Incorporation hasproposed a special investment of $2.4bn for the Padma Multipurpose Bridge with a view to assist the government in constructing the bridge.

The offer came on Tuesday under the government to government (G2G) agreement on a“build-own-operate-transfer” (BOOT) basis.

A four-member delegation led by China Exim Bank Assistant President Yang Biao has given the proposal to Communications Minister Obaidul Quaderon behalf of the company while holding a meeting with him in his secretariat office.

The other members of the delegation are Exim Bank Business Manager Li Yiding, Poly Technologies Incorporation General Manager Zhao Lingzhi and Senior Project Manager Jiang Ying.

Emerging from the meeting, Obaidul Quader told reporters:“The Chinese authority has proposed an investment of US$2.4bn which will be provided under the G2G contract on a BOOT basis.”

He said: “The Economic Relation Division (ERD) is examining the proposal. We are considering the proposal as a positive one and are likely to sign a memorandum of understanding (MoU) with them after protecting the interests of our country.”

Mentioning that the proposal is a better one than that of the World Bank, the minister said: “It will reduce the pressure on theforeign exchange reservesof the country.”

However, he could not disclose any detail information in this regard.

Obaidul informed that the Chinese authority also expressed their interest to invest in some other infrastructural projects including the Dhaka-Chittagong Elevated Expressway.

On March 19, 2012, Chinese Ambassador Li Jun said his government would consider financing the Padma bridge project if Bangladesh formally approached them.

“We will consider it if the Bangladesh government makes a formal proposal about [funding of the Padma bridge] to us,” said Jun.

He said the Chinese government has not received any formal proposal from Bangladesh on funding the bridge.However, the envoy suggested Bangladesh first settle the issue with the World Bank.

On June 3, 2012, China expressed its interest in financing the second Padma Bridge. It also agreed to conduct a feasibility study on constructing the Dhaka-Chittagong Elevated Expressway train line.

February of the current year, a Chinese firm offered to construct the Padma Bridge and to arrange a $2bn loan from China Development Bank for the project at an interest rate of 2%.

On February 19, Finance Minister AMA Muhith sought to know the Chinese government’s position on the proposal to implement the Padma Bridge project.