Offers of Chinese investments and loans

By what has been expressed by the visiting Chinese Commerce Minister Gao Hucheng, we are given to understand that China has offered to invest US$350 million in various sectors of the economy. There is also scope for China extending soft loans to various infrastructure projects like railway, jute and bridge construction. This is all welcome news for us. However, before Chinese investment materialises, we have to get a move on the land allocation issue for setting up an exclusive Chinese economic zone in Chittagong. 

From what has been stated by the finance minister, it is understood that the Chinese government has agreed, in principle, to provide finance for a number of major projects. The construction of the Karnaphuli tunnel, setting up of an industrial park and expansion of the railway network are all on the table. Chinese soft loans carry interest at 2 percent per annum. This however remains a subject of negotiations between the two countries to bring it down. Railway will play a major role in transporting bulk commodities and raw materials in the near future as the country moves towards imported coal for power generation.

With Bangladesh government already having identified railway projects worth nearly $11 billion, it is imperative to take the Chinese overtures seriously. Our Achilles' heel has been slow project implementation of projects. Issues related to land acquisition need to be prioritised if the government is serious about establishing 22 special economic zones that will be the cornerstone for attracting FDI.