Dhaka likely to join Silk Road initiative

Bangladesh could join the Silk Road initiative of China as both the countries are likely to sign a deal in this regard during the upcoming visit of Chinese President Xi Jinping to Dhaka, officials said Tuesday.

Officials said Dhaka and Beijing are likely to sign 10 deals including the Silk Road initiative during the two-day visit of Mr Xi from October 14 to October 15.

Finance and foreign ministry officials said a Memorandum of Understanding (MoU) is likely to be signed between Dhaka and Beijing on the China-initiated 'Silk Road Economic Belt' and the '21st-century Maritime Silk Road' initiatives.

"In the Joint Economic Commission (JEC) meeting held in Bangladesh in August last, Beijing had requested Dhaka to join its Silk Road initiative. Dhaka agreed in principle to join it," said an MoF official.

Mr Xi Jinping will arrive in Dhaka on October 14 morning from Cambodia on a two-day visit. The Chinese President would start his three-nation visit on October 13 from Cambodia. He will also visit India from October 15 to October 17 to take part in the 8th BRICS Summit in Goa.

After 30 years, it will be the first state visit by a Chinese president to Bangladesh.

Kong Xuanyou, assistant foreign minister of China at a news conference in Beijing said, "Bangladesh is China's important partner in the South Asian and the Indian Ocean region, and the visit will be a milestone for the China-Bangladesh relationship."

During Mr Xi's visits, China will sign a number of cooperative documents with Cambodia and Bangladesh regarding the Belt and Road Initiative, proposed by him in 2013, which focuses on improving infrastructure and boosting interconnection, said the China Daily quoting Mr Kong.

The Silk Road initiative is focused on connectivity and cooperation among countries primarily between China and the rest of Eurasia, which consists of two main components, the land-based 'Silk Road Economic Belt' and oceangoing 'Maritime Silk Road'.

Experts say the China-Pakistan Economic Corridor (CPEC) and the Bangladesh-China-India-Myanmar (BCIM) Economic Corridor are officially classified as closely related to the Belt and Road initiative.

An additional secretary at the MoF told the FE that 10 different deals including a government-to-government framework on Karanaphuli tunnel construction project in Chittagong, three separate loan agreements for three development projects, and six separate MoUs might be signed.

He said the Economic Relations Division (ERD) might sign three separate loan agreements worth nearly US$350 million with China for the Dasherkandi water treatment plant, procurement of 6-ocean going vessels and a disaster management project.

Besides, a MoU on financing 25 development projects over the next five years is likely to be signed during the visit of the Chinese president, he said requesting anonymity.

It will require nearly $30 billion funds for implementing the 25 development projects over the years, said the additional secretary.

China provided loans to Bangladesh at 2.0 per cent interest rate for implementing different projects.

Sources said alongside the project assistance, total investment plan between Bangladesh and China focusing on sub-regional connectivity is likely to be the main focus of discussion at Mr Xi's visit.

Mr Xi will meet President Abdul Hamid, and Prime Minister Sheikh Hasina during his 2-day visit in Dhaka.

UNB adds: Talking about the list of key projects, a Foreign Ministry senior official said Economic and Industrial Zone in Chittagong for Chinese investors have been kept on top of the key projects list followed by Bangladesh Garment Industrial Park.

He said there are seven categories of projects namely industrial parks, railways, roads, power, petroleum, livelihood projects and information technology.

Officials said both Bangladesh and China are willing to strengthen economic ties, promote infrastructure construction and industrialisation process together and they acknowledged the importance of building a platform for cooperation projects.

Sharing the objectives of such cooperation, ERD officials said it aims to build a platform for communication and cooperation of both sides, promote investment and production capacity cooperation in key fields.

Apart from the listed ones, other projects will be selected upon mutual consultation by both sides, the draft MoU says.

According to officials, both Bangladesh and Chinese will follow five cooperation approaches under the MoU.

These are investment, both direct and indirect ones, infrastructure building and operation, construction of economic and industrial zones, technology communication and transfer, personal exchange and training and labour service cooperation.

The two sides will appoint ERD, Bangladesh and Department of Outward Investment and Economic Cooperation, China, as the correspondent institutions under the agreement and will convene working meetings at a suitable time to review and promote related works.

Asked, an official said any question or dispute arising from interpretation and implementation of the memorandum will be resolved through 'friendly negotiations and diplomatic channel'.

There are five projects in railway category. These are Padma Bridge Rail Link Project, construction of double line between Joydebpur and Ishwardi station, construction of dual gauge track parallel to the existing MG line in Joydebpur-Mymensingh section, conversion of MG railway track into DG track in Akhaura to Sylhet and construction of new Inland Container Depot near Dhirasram Railway Station.

Four projects are being considered under road category, which are construction of multi-lane road tunnel under the river Karnaphuli, construction of Marine Drive Expressway and Coastal Protection Works from Sitakund-Chittagong-Cox's Bazar, Dhaka-Ashulia Elevated Expressway Project and Dhaka-Sylhet Four-Lane Highway project.

The projects under power category are Expansion and Strengthening of Power System in DPDC area, system loss reduction, power grid network strengthening project under PGCB, Gazaria 350MW coal fired Thermal Power Plant, extension of the existing underground mining operation of Barapukuria Coal Mine and increasing its current production capacity and pre-payment metering project for BPDB's distribution zones.

There is only one project is being considered under petroleum category - installation of single point mooring with a double pipeline.

Rajshahi Surface Water Treatment Plant, Water Supply, Sanitation, Drainage and Solid Waste Management for Small Size Municipalities, establishment of five full-fledged TV stations of Bangladesh Television; Balancing, Modernisation, Rehabilitation and Expansion

(BMRE) programme for the public sector jute mills under BJMC and Expansion and Modernization of Mongla Port Facilities are being considered as livelihood projects.

Meanwhile, four projects are being considered under information technology category.

These are Info-Sarkar (Phase III), modernisation of telecommunication network for digital connectivity, establishing digital connectivity and modernisation of rural and urban lives in Bangladesh through ICT.