China to give over US$ 800 million credit for 2 projects in Bangladesh
Dhaka, Sep 8 (UNB) - China will provide over US$ 800 million credit assistance to Bangladesh to implement two projects - establishment of a new plant at Shahjalal Fertilizer Factory and introducing 3G system in the telephone system.
“China is ready to finance the two projects and their terms also seems acceptable to us,” said Finance Minister AMA Muhith while briefing reporters after a meeting at the Finance Ministry.
Presided over by the Finance Minister, Planning Minister AK Khandker, Industries Minister Dilip Barua, Post and Telecommunications Minister Raziuddin Ahmed Razu, Economic Affairs Adviser to the Prime Minister Dr. Mashiur Rahman and Economic Relations Division (ERD) Secretary Musharraf Hossain Bhuiyan attended the meeting.
The Finance Minister said that during the Prime Minister Sheikh Hasina’s official visit to China earlier in the year, some agreements were signed of which two are under the process of implementation.
He said that the first project is establishing a new plant at Shahjalal Fertilizer Factory of a production capacity of half a million of tons of fertilizer per year at a cost of US$ 616 million.
He said that China has conducted feasibility study for the project and a contract will be signed with a Chinese company.
Muhith informed that the financial terms is almost near to the Indian 1 billion dollar line of credit as its interest rate would be 2 percent with 20 years repayment facility, 5 years grace period, 0.2 percent each commitment charges and management charges.
The Finance Minister informed that the 2nd project is introduction of 3G network in the telephone system with an estimated amount of US$ 211 million.
He said that the project was earlier scheduled to be undertaken in 2006 with 2.5G technology.
“But, now the technology has advanced and it would be developed with 3G technology. A contract will be signed with another Chinese company to start the project works shortly,” he added.
The Finance Minister, however, informed that both the projects would be placed before the Economic Affairs Committee for their consideration just after the Eid-ul-Fitr vacation.
“China is ready to finance the two projects and their terms also seems acceptable to us,” said Finance Minister AMA Muhith while briefing reporters after a meeting at the Finance Ministry.
Presided over by the Finance Minister, Planning Minister AK Khandker, Industries Minister Dilip Barua, Post and Telecommunications Minister Raziuddin Ahmed Razu, Economic Affairs Adviser to the Prime Minister Dr. Mashiur Rahman and Economic Relations Division (ERD) Secretary Musharraf Hossain Bhuiyan attended the meeting.
The Finance Minister said that during the Prime Minister Sheikh Hasina’s official visit to China earlier in the year, some agreements were signed of which two are under the process of implementation.
He said that the first project is establishing a new plant at Shahjalal Fertilizer Factory of a production capacity of half a million of tons of fertilizer per year at a cost of US$ 616 million.
He said that China has conducted feasibility study for the project and a contract will be signed with a Chinese company.
Muhith informed that the financial terms is almost near to the Indian 1 billion dollar line of credit as its interest rate would be 2 percent with 20 years repayment facility, 5 years grace period, 0.2 percent each commitment charges and management charges.
The Finance Minister informed that the 2nd project is introduction of 3G network in the telephone system with an estimated amount of US$ 211 million.
He said that the project was earlier scheduled to be undertaken in 2006 with 2.5G technology.
“But, now the technology has advanced and it would be developed with 3G technology. A contract will be signed with another Chinese company to start the project works shortly,” he added.
The Finance Minister, however, informed that both the projects would be placed before the Economic Affairs Committee for their consideration just after the Eid-ul-Fitr vacation.
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