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Dhaka, Beijing to seal the deal on deep-sea port

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Hasina goes to China on June 6

Bangladesh wants to conclude the negotiations with China on construction of a deep-sea port at Sonadia in Cox’s Bazar during the visit of Prime Minister Sheikh Hasina there.

“We have analysed three proposals [for deep-sea port] that were submitted to the government and we found the Chinese proposal is the best. We hope to sign an instrument with China during the visit of the prime minister in Beijing,” said a senior official of the Foreign Ministry.

Sheikh Hasina is going to China on June 6 on a five-day trip and is scheduled to return home on June 11.

Bangladesh has long been negotiating the mega-project and invited all interested countries to submit their proposals and three countries – the Netherlands, United Arab Emirates and China – showed interest, said the official.

“They made presentations before the high-powered committee headed by the principal secretary where foreign and shipping secretaries are also members,” he said.

After evaluation, the committee found that the Chinese proposal was the best, he added.

“During the visit, we would like to hand over a ‘letter of intent’ to the Chinese side to build the port,” the official said, adding that the multi-billion
dollar project at Sonadia can be set up by a single country or it can be a consortium.

“We want to keep it open. Depending on the situation, a consortium can be formed to build the port following consultation between Bangladesh and China.”

When asked about geopolitical pressure, he said, “Bangladesh should first consider its national interest. We waited too long for the project.”

An inter-ministerial meeting on the prime minister’s visit to China was held at the Foreign Ministry yesterday with Foreign Secretary Md Shahidul Haque in the chair and various issues, including deep-sea port, were discussed in the meeting.

Bangladesh has two sea ports – Chittagong and Mongla – and felt the need to have the deep-sea port because of the growing demand from business people.

At present, both the ports handle over $60 billion of trade, which is growing at a faster rate.

Hasina’s visit

The prime minister will fly to Kunming from Dhaka to attend the South Asia Expo and will have an interaction with Chinese businessmen to encourage them to make more investment in Bangladesh, said another official of the Foreign Ministry.

“She will fly to Beijing on June 8 and will have official talks with Chinese Prime Minister Li Keqiang,” he said. They will declare a joint statement after the meeting.

She will also call on Chinese President Xi Jinping and will have another interaction with Chinese businessmen, he said.

“The primary focus of the visit will be to lure investment and cooperation in deep-sea port, power and infrastructure,” he added.

Bangladesh has already awarded Padma Bridge project to a Chinese company and signed a contract yesterday.

Bangladesh has multi-dimensional cooperation with China and it is the biggest trading partner of Bangladesh with two-way trade is over $10 billion but it is heavily tilted towards Beijing.

- See more at: Dhaka, Beijing to seal the deal on deep-sea port | Dhaka Tribune
:yay::yay::yay::yay::yay:
 
Bangladesh plays China card

BANGLADESH Prime Minister Sheikh Hasina flies out on 6th June to China. First she attends the Kunming Business Fair in the Yunnan province and thereafter goes to Beijing invited by her Chinese counterpart Li Keqiang.
The Prime Minister is keen to build infrastructure and development projects in Bangladesh so as to make the country a middle income country by 2021. While the Western nations and the EU have distanced themselves from big investments after the 5th January non-inclusive parliamentary elections, India, China, Russia and Japan have firmly supported the government and expressed keen interest to invest in Bangladesh. 'Look to the East' has ushered in a new phase of Bangladesh foreign policy under the current government.
On 29th May the Prime Minister returned after a four day visit to Japan and the trip yielded the "single largest commitment" by a country for Bangladesh's development, State Minister for Foreign Affairs told a press conference. Replying to a question, he said the visit also proved Japan's confidence in the present government more than any other time.
Bangladesh now turns toward China and during the last three years, its financial support has surged significantly. The more investment Bangladesh receives from China, its goal of becoming a middle income country by 2021 will be quicker.
China has been recognised as one of the global economic leaders because of the scale of its commerce and exports of consumer goods. Now China is going to the next stage on the global scene as an investor. It means China will be known as the source of capital, rather than goods.
China has a huge reserve of investment funds that cannot be absorbed internally. Total foreign investment financial outflows are over US$70 trillion. China holds significant reserves of currency ($3.2 trillion) and financial instruments, but these have been impacted by an appreciation in its currency RMB and an expansionary financial environment through the recent rounds of quantitative easing.
Another fact is that in developed economies Chinese investors also saw high costs, restrictive labour practices and unclear messages on investment by the state owned Chinese enterprises. It is therefore not surprising that China is attracted to investment in Bangladesh in areas which would generate good returns to China. The two nations have everything to gain from adapting and developing this investment relationship. Trade relationship is not deeply involved with a country while investment is.
In trade, the relationship exists between the buyer and the seller and not between the countries. If a buyer gets a cheaper price or a seller receives higher price, they shift to another buyer or seller. There is no deeper involvement between them while investing in a country, Bangladesh and China are deeply involved. The governments and the people interact closely in the case of investment and the relationship is lasting.
Ordinarily the loan is provided by China for 10 to 13 years with a grace period of 3 years only.
Given the above background, the government of Bangladesh is reportedly seeking Chinese soft loan for 20 years with a grace period of 5 years for 14 infrastructure projects. The important projects include a rail bridge over the Jamuna river and a high-speed “chord” train line between Dhaka and Comilla. Another project envisaged under the loan is the construction of a 4.8km long dual-gauge double-track rail bridge — parallel to the Bangabandhu Jamuna Bridge.
It is reported that government has decided that the Padma Multi-purpose bridge, the country's largest-ever infrastructure project, is to be built by China Major Bridge Engineering Company (CMBEC). The CMBEC will get the $1.55 billion job against a revised estimated cost of $1.77 billion.

Analysts say that there are some issues that need to be factored in by Bangladesh. First in receiving huge loans for such mega projects from China, Bangladesh needs to comprehensively assess the costs of such funds, including both the explicit costs such as interest and commitment fees and the implicit costs such as conditions on procurement of goods, works and services. Second, while the Indian press is highlighting the possibility of a "robust partnership" between Delhi and Beijing after Chinese Premier Li Keqiang called to congratulate his new Indian counterpart, Narendra Modi reportedly has strong reservations over growing Chinese influence in the neighbouring states for its strategic interests. And this may have impact on India's policy toward Bangladesh
Furthermore if the deep sea port in Bangladesh is built by the Chinese companies, India's maritime security in the Indian Ocean may face a threat. This apprehension emanates from Indian perception that China has been gradually encircling India by the so-called “String of Pearls”. The term “pearls” means naval facilities that China has reportedly been developing in Pakistan, Sri Lanka, Myanmar, Thailand and Cambodia. It is therefore desirable that a consortium of foreign companies may build the seaport.
Third, deep engagement with China by maritime nations such as Bangladesh with access to the Indian Ocean may not be to Japan's when it has been highly critical over the Chinese military's assertiveness on disputed islands claimed by Vietnam and the Philippines in the South China Sea at the recent Asia Security Summit in Singapore.
source: BOTTOM LINE | Bangladesh plays China card
 
Awesome. :woot:

These ports could expand their trade volume enormously in the near future, given the fast growth rate of Bangladesh's economy, and the importance of the region in terms of global trade.

There is a huge amount to be gained from both sides here. :tup:
 
Welcome to the fold ;)

Awesome. :woot:

These ports could expand their trade volume enormously in the near future, given the fast growth rate of Bangladesh's economy, and the importance of the region in terms of global trade.

There is a huge amount to be gained from both sides here. :tup:

Someone is going to have a bad day....very bad day.
 
I don't understand. :undecided:

I know what Dragon means though. :D

"Hindustan ko barh gaya hai khatttraaaw "

Danger for Hindustan has increased.

"Dragon ny kardiya hai ghera tanggg"

The dragon (China) is tightening its grip around us.

These are usual headlines coupled with thunder noises when they address two evils China and Pakistan.
 
"Letter of Intent", basically Hasina needed something for her China trip. This deal is far from done.
 
Indian Reaction
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Hasina goes to China on June 6

Bangladesh wants to conclude the negotiations with China on construction of a deep-sea port at Sonadia in Cox’s Bazar during the visit of Prime Minister Sheikh Hasina there.

“We have analysed three proposals [for deep-sea port] that were submitted to the government and we found the Chinese proposal is the best. We hope to sign an instrument with China during the visit of the prime minister in Beijing,” said a senior official of the Foreign Ministry.

Sheikh Hasina is going to China on June 6 on a five-day trip and is scheduled to return home on June 11.

Bangladesh has long been negotiating the mega-project and invited all interested countries to submit their proposals and three countries – the Netherlands, United Arab Emirates and China – showed interest, said the official.

“They made presentations before the high-powered committee headed by the principal secretary where foreign and shipping secretaries are also members,” he said.

After evaluation, the committee found that the Chinese proposal was the best, he added.

“During the visit, we would like to hand over a ‘letter of intent’ to the Chinese side to build the port,” the official said, adding that the multi-billion
dollar project at Sonadia can be set up by a single country or it can be a consortium.

“We want to keep it open. Depending on the situation, a consortium can be formed to build the port following consultation between Bangladesh and China.”

When asked about geopolitical pressure, he said, “Bangladesh should first consider its national interest. We waited too long for the project.”

An inter-ministerial meeting on the prime minister’s visit to China was held at the Foreign Ministry yesterday with Foreign Secretary Md Shahidul Haque in the chair and various issues, including deep-sea port, were discussed in the meeting.

Bangladesh has two sea ports – Chittagong and Mongla – and felt the need to have the deep-sea port because of the growing demand from business people.

At present, both the ports handle over $60 billion of trade, which is growing at a faster rate.

Hasina’s visit

The prime minister will fly to Kunming from Dhaka to attend the South Asia Expo and will have an interaction with Chinese businessmen to encourage them to make more investment in Bangladesh, said another official of the Foreign Ministry.

“She will fly to Beijing on June 8 and will have official talks with Chinese Prime Minister Li Keqiang,” he said. They will declare a joint statement after the meeting.

She will also call on Chinese President Xi Jinping and will have another interaction with Chinese businessmen, he said.

“The primary focus of the visit will be to lure investment and cooperation in deep-sea port, power and infrastructure,” he added.

Bangladesh has already awarded Padma Bridge project to a Chinese company and signed a contract yesterday.

Bangladesh has multi-dimensional cooperation with China and it is the biggest trading partner of Bangladesh with two-way trade is over $10 billion but it is heavily tilted towards Beijing.

- See more at: Dhaka, Beijing to seal the deal on deep-sea port | Dhaka Tribune
:yay::yay::yay::yay::yay:
and Will China be allowed to have some sort of Naval presence at this port
 
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