Dhaka [Bangladesh], August 13 (ANI): A number of Chinese-backed projects in Bangladesh have been performing below par, and have raised concerns among experts, in wake of the situation in Sri Lanka and Pakistan, whose economies have crippled under the burden on Beijing’s debt, Bangladesh-based Daily Asian Age reported.
The China-Bangladesh bilateral ties have been in heated discussions for last several years for reasons of China’s augmenting interest in engaging Bangladesh more profoundly in the Belt and Road Initiative (BRI). China is also working with Bangladesh in a number of development projects.
From a global perspective, it has been observed that Chinese financial deals have jeopardized the economy of many countries including Sri Lanka, Pakistan, Zimbabwe, Angola, Nigeria, Sudan, Serbia etcetera, Daily Asian Age reported.
As per the Bangladesh-based daily, if these drawbacks are not overcome immediately, the Payra Power Plant may come to a closure within a few months.
The US was the top investor with 661.12 million USD in investment in FY2022, which was 19.2 per cent of the total foreign direct investment, , Daily Asian Age reported citing the central bank report.
As a rapidly growing multinational organization in Bangladesh, South China Limited has earned a solid reputation both locally and globally in the textile and clothing sectors over the years.
With its state-of-the-art technology and a highly competent management team, the company has successfully etched its brand name worldwide as a reliable manufacturer of textile products.
Laying emphasis on people-to-people contact, Calvin Ngan, who is also the managing director of South China Ltd, said, “In China, Chinese New Year also means Spring celebration, it is a moment for gathering, for expressing our thanks and to give blessing to our friends and family.”
“The past three years of the pandemic have been a stormy winter for many of us. Fears and worries loom over our heads. We faced and overcame challenges that were not seen in our generation,” he added.
“2023 is a very special year. It is the year of the rabbit. The pandemic winter has ended, and spring has come. We see our motherland opening up the border, no more quarantine. Flights between Bangladesh and China are increasing. Economic and cultural activities begin to pick up. We are seeing more Chinese coming to Bangladesh and more Bangladeshi going to China,” Daily Asian Age quoted Calvin as saying.
Meanwhile, Shah Mohammad Mahboob, director general of International Investment Promotion of the Bangladesh Investment Development Authority (BIDA), said while addressing the event, the business environment in Bangladesh has marked a gradual improvement in recent years as the country has become a hub of investment in the South Asian region.
Director of Hong Kong Economic and Trade Office in Bangkok Sheung-yuen Lee, in his speech, said Hong Kong has become one of the leading investors in Bangladesh, pouring 1.8 billion USD to date mainly in the textile and energy sectors. Bilateral trade has already reached over 1 billion USD, as per the Bangladesh-based daily.
The government is set to provide an additional 170 million Euors or 183 million USD to the Payra Port Authority from the Bangladesh Infrastructure Development Fund (BIDF).
The Bangladesh Bank would provide the amount to Sonali Bank to pay the bill of the Belgium-based Jundunul NV, the contractor of the Capital and Maintenance Dredging of the Ramnabad Channel of the Payra Port project, Daily Asian Age quoted a central bank official, who requested not to be named.
The BIDF was established in March 2021 to finance development projects in Bangladesh using foreign reserves. So far, the Payra Port project is the only project funded by the BIDF, with 77 million Euros already disbursed in four phases.
Despite concerns that the release of funds will further decrease the foreign currency reserve, the central bank is expected to release the funds as per agreement, as per Daily Asian Age.
As of February 8, the country’s foreign exchange reserve was 32,639 million USD, according to the central bank data.
The director of the project, Rajiv Tripura, declined to comment on the fund release when contacted.
Sonali Bank officials confirmed that the Payra Port Authority had applied for the funds and that the process of releasing the funds from the central bank is underway.
An official of Bangladesh Bank on condition of anonymity said the fund will be released amid the ongoing foreign reserve crisis in the country because there is an agreement on this. However, he said a decision has been taken not to fund any more projects under the BIDF for the time being, according to Daily Asian Age.
Meanwhile, the Capital and Maintenance Dredging of the Ramnabad Channel project, which has a cost of 4,950 crore Bangladeshi Taka, will create a 75 km channel with a depth of 10.5 meters, allowing ships with a capacity of 40,000 tons to use the Payra Port.
Former adviser to caretaker government Dr Wahid Uddin Mahmud said, “Bangladesh has to work very cautiously on Chinese financial schemes. Sri Lanka and Pakistan paid a big price not being able to pay back Chinese loans”.
Dr. Zahid Hussain, former World Bank lead economist, Dhaka office said, “Bangladesh should reduce its dependence on external debts. Challenges like dollar crisis and anomalies in the banking system have made things rather uncertain. So, the authorities concerned have to take every step very carefully”, Daily Asian Age reported. (ANI)
This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.