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Enhance transmission infrastructure to attract Chinese investment: CPD

The think-tank suggested adopting a short-term build-operate-transfer model to address infrastructure issues 
Photo: Star

Bangladesh needs to rapidly develop its transmission infrastructure to attract Chinese investment, according to the Centre for Policy Dialogue (CPD).

Without this, Chinese businesses may hesitate to invest in renewable energy projects, despite the potential benefits, said the think-tank.

The CPD suggested that adopting a short-term Build-Operate-Transfer (BOT) model could help address infrastructure challenges in order to meet Chinese investors' expectations.

The CPD made the suggestions during a dialogue titled "Overseas investment in the renewable energy sector: how to attract Chinese investment in Bangladesh?" held at Lakeshore Hotel in Dhaka today.

"There are some key risks that persist, including currency risks due to local currency volatility, permit risks from bureaucratic hurdles, and financing risks related to securing affordable funding," CPD Research Director Khondaker Golam Moazzem said in a keynote paper, highlighting several key challenges.

"Additional challenges include land acquisition issues, social acceptance, grid limitations, and off-taker credit risks, all impacting project feasibility."

A major concern for Chinese investors is the Bangladesh government's insistence on resolving disputes domestically, which contradicts international norms that favour neutral, third-party arbitration, he said.

Also, the ongoing foreign reserve crisis and the lack of guaranteed initiatives for foreign investors have raised concerns about the ability to repatriate returns in US dollars, Moazzem added.

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Enhance transmission infrastructure to attract Chinese investment: CPD

The think-tank suggested adopting a short-term build-operate-transfer model to address infrastructure issues 
Photo: Star

Bangladesh needs to rapidly develop its transmission infrastructure to attract Chinese investment, according to the Centre for Policy Dialogue (CPD).

Without this, Chinese businesses may hesitate to invest in renewable energy projects, despite the potential benefits, said the think-tank.

The CPD suggested that adopting a short-term Build-Operate-Transfer (BOT) model could help address infrastructure challenges in order to meet Chinese investors' expectations.

The CPD made the suggestions during a dialogue titled "Overseas investment in the renewable energy sector: how to attract Chinese investment in Bangladesh?" held at Lakeshore Hotel in Dhaka today.

"There are some key risks that persist, including currency risks due to local currency volatility, permit risks from bureaucratic hurdles, and financing risks related to securing affordable funding," CPD Research Director Khondaker Golam Moazzem said in a keynote paper, highlighting several key challenges.

"Additional challenges include land acquisition issues, social acceptance, grid limitations, and off-taker credit risks, all impacting project feasibility."

A major concern for Chinese investors is the Bangladesh government's insistence on resolving disputes domestically, which contradicts international norms that favour neutral, third-party arbitration, he said.

Also, the ongoing foreign reserve crisis and the lack of guaranteed initiatives for foreign investors have raised concerns about the ability to repatriate returns in US dollars, Moazzem added.

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সংস্কার ও নির্বাচন প্রক্রিয়া নিয়ে চলতি মাসেই ঘোষণার ইঙ্গিত প্রধান উপদেষ্টার

জাতীয় নির্বাচনের আগে প্রয়োজনীয় সংস্কারের গুরুত্ব পুনর্ব্যক্ত করে প্রধান উপদেষ্টা ড. মুহাম্মদ ইউনূস চলতি মাসের শেষের দিকে সংস্কার ও নির্বাচন প্রক্রিয়া সম্পর্কে একটি ঘোষণার ইঙ্গিত দিয়েছেন।

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