China likely to give $638m loan - Airport, 4G upgrade and ship purchase
The Chinese government is likely to provide US$638 million loan to the government for procurement of vessels and upgradation of Cox's Bazar airport and the telecommunications networks, officials said Saturday.
China has already completed negotiations for the credit to implement three development projects, officials of the Economic Relations Division (ERD) said.
"We are hopeful of signing the loan deal by October this year. It will be one of the largest loan deals between the government of China and that of Bangladesh," said a Joint Secretary of the ERD.
The Civil Aviation Authority will upgrade the Cox's Bazar airport to an international standard, taking $225 million loan from China.
The Bangladesh Shipping Corporation (BSC) will borrow $240 million to import six dredgers in a bid to enrich the fleet of the state-owned marine transport provider.
The Bangladesh Telecommunication Company Limited (BTCL) will upgrade its network to the fourth generation of communication technology, by borrowing funds, worth $173 million, from the government of China.
An ERD official said the government agencies will complete the commercial contract first with the Chinese contractor for the works. "Then we will sign the loan deal."
Bangladesh now borrows funds under the Chinese loans at 2.0 per cent rate of interest with a maturity of 20 years.
But it becomes a non-concessional loan as per the government's definition. The government calculates the loan, based on its grant element. If the grant element is 35 per cent or above, it is defined as a concessional loan.
Bangladesh discourages borrowing non-concessional loans.
For this purpose, the ERD is negotiating with the government of China to downsize the credit part, bring down the rate of interest and extend the repayment periods, officials said.
A Civil Aviation Ministry official said they would upgrade the airport at Cox's Bazar in order to attract more local and foreign tourists.
The Aviation Industry Corporation of China (AVIC) is likely to be appointed as the contractor for upgrading the infrastructural facilities at the Cox's Bazar airport up to the international standard.
The BSC officials said they would purchase nearly 40,000 tonnage capacity of bulk carriers and 1,200 TEU (twenty equivalent unit) of container vessels from China to improve the state-owned marine service provider.
China likely to give $638m loan :: Financial Express :: Financial Newspaper of Bangladesh
The Chinese government is likely to provide US$638 million loan to the government for procurement of vessels and upgradation of Cox's Bazar airport and the telecommunications networks, officials said Saturday.
China has already completed negotiations for the credit to implement three development projects, officials of the Economic Relations Division (ERD) said.
"We are hopeful of signing the loan deal by October this year. It will be one of the largest loan deals between the government of China and that of Bangladesh," said a Joint Secretary of the ERD.
The Civil Aviation Authority will upgrade the Cox's Bazar airport to an international standard, taking $225 million loan from China.
The Bangladesh Shipping Corporation (BSC) will borrow $240 million to import six dredgers in a bid to enrich the fleet of the state-owned marine transport provider.
The Bangladesh Telecommunication Company Limited (BTCL) will upgrade its network to the fourth generation of communication technology, by borrowing funds, worth $173 million, from the government of China.
An ERD official said the government agencies will complete the commercial contract first with the Chinese contractor for the works. "Then we will sign the loan deal."
Bangladesh now borrows funds under the Chinese loans at 2.0 per cent rate of interest with a maturity of 20 years.
But it becomes a non-concessional loan as per the government's definition. The government calculates the loan, based on its grant element. If the grant element is 35 per cent or above, it is defined as a concessional loan.
Bangladesh discourages borrowing non-concessional loans.
For this purpose, the ERD is negotiating with the government of China to downsize the credit part, bring down the rate of interest and extend the repayment periods, officials said.
A Civil Aviation Ministry official said they would upgrade the airport at Cox's Bazar in order to attract more local and foreign tourists.
The Aviation Industry Corporation of China (AVIC) is likely to be appointed as the contractor for upgrading the infrastructural facilities at the Cox's Bazar airport up to the international standard.
The BSC officials said they would purchase nearly 40,000 tonnage capacity of bulk carriers and 1,200 TEU (twenty equivalent unit) of container vessels from China to improve the state-owned marine service provider.
China likely to give $638m loan :: Financial Express :: Financial Newspaper of Bangladesh
