China Extends $560 Loan to BD

[eastwatch]

South Asian Media Net

China offers Bangladesh $560m
Monday, May 31,2010

BEIJING: China has offered to lend Bangladesh $560 million to set up a fertiliser factory, a senior official said on Sunday. "China will give the loan from its concessionary window to build the Urea fertiliser factory in Sylhet, 280 kilometres (175 miles) northeast of capital Dhaka," said Musharraf Hussain Bhuiyan, secretary of the economic relations division at the finance ministry. The factory expected to be constructed by the end of 2014 will have a capacity to produce 1,750 tonnes of urea a day, the official told Reuters.

He said Bangladesh sought the loan at a recent joint economic commission meeting with China.

Beijing has agreed and conveyed the loan offer to the state-run Bangladesh Chemical Industries Corporation (BCIC), the official said.

Bangladesh needs around 3.0 million tonnes of urea annually, of which 1.8 million tonnes is met through domestic production while the rest is imported, mainly from China, Tunisia, Australia and a number of Gulf countries.

 

[eastwatch]

South Asian Media Net

China offers Bangladesh $560m
Monday, May 31,2010

BEIJING: China has offered to lend Bangladesh $560 million to set up a fertiliser factory, a senior official said on Sunday. "China will give the loan from its concessionary window to build the Urea fertiliser factory in Sylhet, 280 kilometres (175 miles) northeast of capital Dhaka," said Musharraf Hussain Bhuiyan, secretary of the economic relations division at the finance ministry. The factory expected to be constructed by the end of 2014 will have a capacity to produce 1,750 tonnes of urea a day, the official told Reuters.

He said Bangladesh sought the loan at a recent joint economic commission meeting with China.

Beijing has agreed and conveyed the loan offer to the state-run Bangladesh Chemical Industries Corporation (BCIC), the official said.

Bangladesh needs around 3.0 million tonnes of urea annually, of which 1.8 million tonnes is met through domestic production while the rest is imported, mainly from China, Tunisia, Australia and a number of Gulf countries.

Note that even though China exports fertilizer to BD, it has come forward to help build a fertilizer factory there. We need this factory very badly.

 

[bd_4_ever]

South Asian Media Net

China offers Bangladesh $560m
Monday, May 31,2010

BEIJING: China has offered to lend Bangladesh $560 million to set up a fertiliser factory, a senior official said on Sunday. "China will give the loan from its concessionary window to build the Urea fertiliser factory in Sylhet, 280 kilometres (175 miles) northeast of capital Dhaka," said Musharraf Hussain Bhuiyan, secretary of the economic relations division at the finance ministry. The factory expected to be constructed by the end of 2014 will have a capacity to produce 1,750 tonnes of urea a day, the official told Reuters.

He said Bangladesh sought the loan at a recent joint economic commission meeting with China.

Beijing has agreed and conveyed the loan offer to the state-run Bangladesh Chemical Industries Corporation (BCIC), the official said.

Bangladesh needs around 3.0 million tonnes of urea annually, of which 1.8 million tonnes is met through domestic production while the rest is imported, mainly from China, Tunisia, Australia and a number of Gulf countries.

Good news! We need this factory, at least to be self-sufficient to some extent.

Is there no other strings attached to the loan anyway??

 

[eastwatch]

Good news! We need this factory, at least to be self-sufficient to some extent.

Is there no other strings attached to the loan anyway??

I do not think there will be an open direct stringe attached to the loan, except that it will be a package under which it will be required to ask a Chinese company to build the fertilizer factory on a turnkey basis. Quite a stringe, but we cannot help it, because we need it very urgently.

By the way, the raw material for urea is natural gas or methane, denoted as CH4. In the process of producing ammonium in a plant, nitrogen is collected from air. This nitrogen is reacted with CH4 in many steps. In the process, carbon is released to the air and nitrogen is reacted with hydrogen in order to produce nitrogen hydrate or ammonium, NH4. This is the basis of urea, in short.

About 20,000 cft of gas is needed to produce a ton of urea. The cost of this raw material is only $100. But, the price of a ton of urea may be more than $500, but I just do not know. Under optimum condition, a ton of urea may produce 5 ton of ADDITIONAL rice. 5 ton rice is valued at about $1,500.

So, when the gas is used to produce fertilizer and the fertilizer is used to produce food, the value added cost becomes 15 times more than the basic cost of gas. So, a fertilizer plant is the best way to utilize our gas efficiently.

Iajdani or Leonblack said in a post a few moths ago that it is not worth to use gas to produce electricity. I agree with him and would like to add that producing urea is one of the best ways to use this gas.

 

[M8R]

So in other words it is not cost effective option..?are there better alternatives?

 

[eastwatch]

So in other words it is not cost effective option..?are there better alternatives?

I am not sure what you really want to know. But, to produce fertilizer is one of the best ways to use gas. Electricity can also be produced by burning coals or by the falling water. But, these two cannot produce fertilizer.

Please note that theoretically speaking, coal can also produce fertilizer, but it is not cost effective, because, coal has less hydrogen. It is CH3, but gas has four hydrogen, it is CH4. So, coal is not used.

 

[fire]

Read the title. It seriously needs to be edited.

China Extends $560 Loan to BD

 

[eastwatch]

Read the title. It seriously needs to be edited.

Better you read the news and do not limit it to the title of a news report. Our correspondents are not that good in English as the Indians. We are still a little behind.

 

[satishkumarcsc]

Better you read the news and do not limit it to the title of a news report. Our correspondents are not that good in English as the Indians. We are still a little behind.

The news article is fine...no mistakes..you missed the million in $560m in the thread title...that is what he meant.

 

[idune]

The way Awami regime is making the country foreign loan dependent, there will be hundred of these type of loan. Now qiestion is indian dalal like eastwatch will open new thread to duck the fact about awami destruction of Bangladesh?

 

[deepak75]

The way Awami regime is making the country foreign loan dependent, there will be hundred of these type of loan. Now qiestion is indian dalal like eastwatch will open new thread to duck the fact about awami destruction of Bangladesh?

Bandhu, the loan as I can read is not for addressing a Balance of Payment crisis or to service internal or external creditors or even for servicing current account.

The loan is actually for setting up a project which will by the end benefit the economy across a value chain including saving valuable foreign exchange being spent in the import of this essential commodity for the agragarian economy of Bangladesh.

So I am surprised that you are showing such aversion to idea of foreign investments.

However, if you were skeptical on the grounds that due to the Build and Deliver strings attached the investment, China is in effect taking the money back to its state corporations, I could agree a little bit.

But then the Shylock will take his pound of flesh my dear.

So more reasons for Bangladesh to make sure that the returns from this project are worth several more bits than the cost that they are paying for raising the capital.

 

[eastwatch]

The way Awami regime is making the country foreign loan dependent, there will be hundred of these type of loan. Now qiestion is indian dalal like eastwatch will open new thread to duck the fact about awami destruction of Bangladesh?

Idune, it made me laugh to read you are calling me an Indian agent. Do not worry about the destruction of BD. BD can be destroyed in a few decades if AL also follows the looting examples of BNP.

 

[Justin Joseph]

The way Awami regime is making the country foreign loan dependent, there will be hundred of these type of loan. Now qiestion is indian dalal like eastwatch will open new thread to duck the fact about awami destruction of Bangladesh?

Personal attacks are against the rules of this forum.

It reflects your upbringing and how you hate Bangla people.

 

[BelligerentPacifist]

$560 could buy BD a dilapidated old car for sure! Or a tooth replacement! Good for BD.

 

[eastwatch]

Read the title. It seriously needs to be edited.

Sorry for the inadvertent mistake in the title of this thread. However, I could not correct it. May be the moderator can help me. Or a poster with sound knowledge may help me out. Thanks.