China offers Bangladesh soft loans of $15-20b

[Arthur]

Any idea about the transparency of the deal?

Like BAL ever cared about transparency.No politicians in BD cares shit about transparency to say the truth.

 

[browser]

What is the total repay amount including intrest after 15 years.compound or simple intrest?

Chinese contractor and chinese material.....This clause is not fare.

No free lunch my friend.
Contractors margins are 30% of construction costs so that adds a further 2% p.a. to the interest rate.

So interest rate is closer to 5%.

Still not a bad deal if Bangladesh can generate revenues (toll) for the projects.

 

[bongbang]

Simple logic dada if you have more money you will go for old day mahajan or sahukar style business.China have a huge for ex reserve. if china not invest these there value will be decrasing in time.But 2% interest will not be problem with such a huge investment, good for bangladesh.In future we may connect to our northeastern through these rail line which may further used as a trans asian rail line.

Monitor means why so less in BD? BD is more progressive country than pak

 

[Arthur]

No free lunch my friend.
Contractors margins are 30% of construction costs so that adds a further 2% p.a. to the interest rate.

So interest rate is closer to 5%.

Still not a bad deal if Bangladesh can generate revenues (toll) for the projects.

Hmm..interesting!!5% interest rate means 75% in 15 years!!!

max of the revenues will go to repay the interest!!

 

[Zabaniyah]

Like BAL ever cared about transparency.No politicians in BD cares shit about transparency to say the truth.

BAL doesn't have much of a choice to be honest.

To promote economic growth there must be investment. And for investment (both local and foreign) to occur, there must be sufficient infrastructure and power; something that investors have been long demanding.

Then, there also the army which desire a place for themselves there who in turn are supplied by none other than China. This is another important factor because the army's support for the regime is crucial. Without it, they will fall.

Yes, there will be corruption, but the project needs to be implemented (if not fully). Otherwise, it'll impact future generations and would ultimately harm the ruling regime.

 

[Shotgunner51]

China has offered Bangladesh soft loans of $15-20 billion to help it expand railway networks across the country.

Officials of the Chinese embassy in Dhaka placed the loan proposal at a high-level meeting with Bangladesh officials at the Prime Minister's Office in January, railways ministry sources told The Daily Star.

Later that month, the PMO formed a three-member committee, headed by an additional secretary of the railways ministry, which primarily identified eight projects involving $10.79 billion.

Railways ministry officials said they sent a list of the projects to the Economic Relations Division of the finance ministry last month for holding discussions with the Chinese government.

Wishing anonymity, a finance ministry high-up said the ministry already sent a list of four projects to the Chinese government for assistance.

The projects are Padma bridge rail link (Dhaka-Mawa-Bhanga) involving $2.18 billion; Padma bridge rail link (Bhanga-Jessore) costing $1.14 billion; double line (Joydevpur-Ishwardi) involving $897 million; and double track line (Joydevpur-Mymensingh) costing $331 million.

The railways ministry has signed memorandums of understanding with China Railway Group Ltd for the two Padma bridge rail link projects.

According to finance ministry officials, China has invested trillions of dollars against treasury bonds in the US and countries in Europe.

As interest rates on those bonds continue to fall, China is now eager to invest in developing countries which will bring it profits through interest and also help it expand its businesses.

A finance ministry official said Bangladesh wants to avail itself of the opportunity, but on easier borrowing terms.

The ministry has been in talks with the Chinese government for softening the terms and conditions of the loans for the railway sector, said the official, asking not to be named.

At present, China charges 2 percent interest on soft loans with a repayment period of 15 years, including five years of grace period. The loan also carries 0.2 percent commitment fees and 0.2 percent management fees.

In case of such loans, the Chinese government selects the contractor, and stipulates that all materials for the projects have to be purchased from China.

On April 12, Finance Minister AMA Muhith held a meeting with Chinese Ambassador Ma Mingqiang and requested the envoy to take steps to soften the terms of the loans.

The minister later told reporters that China had assured it would lower the interest rate on the loan. But the rate was yet to be fixed.

Muhith said the Chinese ambassador told him that China had huge funds and wanted to invest those under softer terms.

The minister said China has always assisted Bangladesh, and the cooperation reached a new height following the Bangladesh prime minister's visit to China in June last year.

He said they already gave the Chinese government a list of projects for getting loans.

On the issue, Zahid Hussain, lead economist at World Bank's Dhaka office, said, “Development of the railways is very important for building an environment-friendly internal transportation system in Bangladesh. The financial needs are massive. So in principle, getting financing from China is highly welcome.”

“It will be important to make sure that the terms and conditions are affordable and transparent and that the procurement system ensures value for money for Bangladesh,” Zahid told this correspondent.

China offers soft loans of $15-20b | The Daily Star

Good news!

Best wishes to people of Bangladesh!

 

[Cat Shannon]

40+ billion dollar investment in Pakistan and now 15 billion dollar to Bangladesh dal me kuch kala hai

Pura dal kaala hai.

They bribed billions to rajapasaka to shut his eyes to China in Sri Lanka.

They publicly beat up Maldives ex president in front of court, in front of media cameras, broke his arm because he wasn't letting China build a nuclear submarine base in Maldives.

You said it about Pakistan. In Pakistan, they run, electricity, gas, roads and other business infrastructure, defence almost 80%, internet through the 3g and 4g service provider. They will run Pakistan in the next ten years while Pakistanis will roar at Modi.

Same they will do for bangladesh. You'll see that as well.

 

[MadDog]

Pura dal kaala hai.

They bribed billions to rajapasaka to shut his eyes to China in Sri Lanka.

They publicly beat up Maldives ex president in front of court, in front of media cameras, broke his arm because he wasn't letting China build a nuclear submarine base in Maldives.

You said it about Pakistan. In Pakistan, they run, electricity, gas, roads and other business infrastructure, defence almost 80%, internet through the 3g and 4g service provider. They will run Pakistan in the next ten years while Pakistanis will roar at Modi.

Same they will do for bangladesh. You'll see that as well.

What bull crap, There are around 5-6 cell phone providers, only one Zong mobile (4G internet) is owned by China Mobile, the rest are different companies, Mobilink, Warid, Telenor, etc, all other companies other than zong provide 3G or LTE eg Warid is owned by a middle east based company, and they don't run any electricity, gas or roads, looks like u watch too much "India TV or Zee News"

 

[Zabaniyah]

Pura dal kaala hai.

They bribed billions to rajapasaka to shut his eyes to China in Sri Lanka.

They publicly beat up Maldives ex president in front of court, in front of media cameras, broke his arm because he wasn't letting China build a nuclear submarine base in Maldives.

You said it about Pakistan. In Pakistan, they run, electricity, gas, roads and other business infrastructure, defence almost 80%, internet through the 3g and 4g service provider. They will run Pakistan in the next ten years while Pakistanis will roar at Modi.

Same they will do for bangladesh. You'll see that as well.

Don't know about Pakistan or Maldives. But in Bangladesh, no China telecom operator operate here. Huawei provide hardware, but Ericsson has the lion's share of that.

Much of our power sector generation are currently done by local privately owned enterprises.

 

[Rajaraja Chola]

Good for BD if actually implemented. But the interest rates of 2% s still too high.
India offered it for 1% last time I remember for 1Billion dollars for credits. But if BD can put toll taxes it is really worth it

 

[Khalid Newazi]

BAL doesn't have much of a choice to be honest.

To promote economic growth there must be investment. And for investment (both local and foreign) to occur, there must be sufficient infrastructure and power; something that investors have been long demanding.

Then, there also the army which desire a place for themselves there who in turn are supplied by none other than China. This is another important factor because the army's support for the regime is crucial. Without it, they will fall.

Yes, there will be corruption, but the project needs to be implemented (if not fully). Otherwise, it'll impact future generations and would ultimately harm the ruling regime.

It does have a choice, like making the deal more transparent.

 

[Ammyy]

They publicly beat up Maldives ex president in front of court, in front of media cameras, broke his arm because he wasn't letting China build a nuclear submarine base in Maldives.

That was not Chinese victory but biggest lose of India.

 

[Zabaniyah]

It does have a choice, like making the deal more transparent.

You and I both know that transparency is like a distant dream. They have at least satisfy the key stakeholders in the country. Otherwise, it'll endanger the regime in the long term.

 

[Cyberian]

Monitor means why so less in BD? BD is more progressive country than pak

I don't think the Arabs are turning to Bangladesh for military assistance in Yemen.

 

[Anubis]

I don't think the Arabs are turning to Bangladesh for military assistance in Yemen.

Ofcourse not...they need mercenaries to fight their wars...they will obviously look for a country that fails to see its own interests and give into religious hype...if they needed 'assistance' they have bigger powers in their power to talk to!