Chinese back in Padma bridge - bdnews24.com
Chinese back in Padma bridge
Staff Correspondent, bdnews24.com
Published: 2013-07-09 07:27:59.0 GMT Updated: 2013-07-09 08:14:48.0 GMT
State-owned China Poly Group International has promised to invest $2.4 billion in the 6.15 kms rail-road bridge, which Bangladesh wants to build with its own resources.
Communication Minister Obaidul Quader told media persons that the Chinese state-owned firm has expressed its desire to sign a memorandum of understanding (MoU) with Bangladesh to seal the deal.
Quader says the Chinese firm has proposed to fund and built the bridge on a Build-Operate-Transfer (BOT) basis.
The company has proposed to sign the MoU under Government-to-Government (G2G) arrangements. The proposal had come earlier, but official talks took place today, he told reporters on Tuesday.
He was speaking after meeting the representatives of the Chinese firm and Exim Bank.
The proposal has been sent to the Economic Relations Division (ERD), Quader said. "The final decision will be taken after the proposal is evaluated.
He said Bangladeshs interest will be given priority while taking any decision on how the Padma bridge, Bangladesh's biggest-ever infrastructure project, is financed and built.
Chinas proposal may be a better one than the World Banks one.
The World Bank was supposed to give a $1.2 billion fund for the $2.9 billion project.
But Bangladesh government in January this year withdrew its funding request to the global lender after a tug-of-war over graft allegations involving ministers and government officials.
That was followed by Chinese and Malaysian proposals to fund and built the huge bridge but the Sheikh Hasina government put all speculation to rest by announcing it will fund the project with its own resources.
Finance Minister AMA Muhith allocated TK 68.52 billion ($ 0.88 billion) for the project in the 2013-14 national budget while a Tk 91 billion global tender was floated for the construction of the bridge's mainframe.
Now it seems the Hasina government is reconsidering the issue of foreign funding and this Chinese firm seems to be prepared for financing almost 80 percent of the project cost, leaving Bangladesh no worry to look for other funding source like ADB or JICA.
China Poly Group Corporation grew up around a domestic company, Poly Technologies Inc in Feb 1993 and is now one of the most profitable of the 166 government-run enterprises operating under the supervision and management of the State Assets Supervision and Administration Commission (SASAC).
After more than 20 years of growth, this company has emerged as one of the Chinese company in construction, real estate and global trading.
It is also investing in the culture industry and now ranks 63rd among the top 500 import & export enterprises of China, according to a Chinese Commerce Ministry publication.
The Poly Group website says it has invested tens of billions RMB in over 13 million sq meters of projects which are under construction, while more than 15 million square meters of land are in reserve.
@idune, what is your take in this great new offer by the Chinese on Padma Bridge. Do you think, it is really feasible?
Chinese back in Padma bridge
Staff Correspondent, bdnews24.com
Published: 2013-07-09 07:27:59.0 GMT Updated: 2013-07-09 08:14:48.0 GMT
State-owned China Poly Group International has promised to invest $2.4 billion in the 6.15 kms rail-road bridge, which Bangladesh wants to build with its own resources.
Communication Minister Obaidul Quader told media persons that the Chinese state-owned firm has expressed its desire to sign a memorandum of understanding (MoU) with Bangladesh to seal the deal.
Quader says the Chinese firm has proposed to fund and built the bridge on a Build-Operate-Transfer (BOT) basis.
The company has proposed to sign the MoU under Government-to-Government (G2G) arrangements. The proposal had come earlier, but official talks took place today, he told reporters on Tuesday.
He was speaking after meeting the representatives of the Chinese firm and Exim Bank.
The proposal has been sent to the Economic Relations Division (ERD), Quader said. "The final decision will be taken after the proposal is evaluated.
He said Bangladeshs interest will be given priority while taking any decision on how the Padma bridge, Bangladesh's biggest-ever infrastructure project, is financed and built.
Chinas proposal may be a better one than the World Banks one.
The World Bank was supposed to give a $1.2 billion fund for the $2.9 billion project.
But Bangladesh government in January this year withdrew its funding request to the global lender after a tug-of-war over graft allegations involving ministers and government officials.
That was followed by Chinese and Malaysian proposals to fund and built the huge bridge but the Sheikh Hasina government put all speculation to rest by announcing it will fund the project with its own resources.
Finance Minister AMA Muhith allocated TK 68.52 billion ($ 0.88 billion) for the project in the 2013-14 national budget while a Tk 91 billion global tender was floated for the construction of the bridge's mainframe.
Now it seems the Hasina government is reconsidering the issue of foreign funding and this Chinese firm seems to be prepared for financing almost 80 percent of the project cost, leaving Bangladesh no worry to look for other funding source like ADB or JICA.
China Poly Group Corporation grew up around a domestic company, Poly Technologies Inc in Feb 1993 and is now one of the most profitable of the 166 government-run enterprises operating under the supervision and management of the State Assets Supervision and Administration Commission (SASAC).
After more than 20 years of growth, this company has emerged as one of the Chinese company in construction, real estate and global trading.
It is also investing in the culture industry and now ranks 63rd among the top 500 import & export enterprises of China, according to a Chinese Commerce Ministry publication.
The Poly Group website says it has invested tens of billions RMB in over 13 million sq meters of projects which are under construction, while more than 15 million square meters of land are in reserve.
@idune, what is your take in this great new offer by the Chinese on Padma Bridge. Do you think, it is really feasible?
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