As we know China is one of the big providers of development assistance to Bangladesh, which already surpassed one billion dollar in some estimates and financing major infrastructure projects include six friendship bridges while one more bridge is under construction mainly built with Chinese grants. Meanwhile some big projects with Chinese loans are under way. But what is agonizing for Bangladesh is unsolicited projects without competitive bidding. It raises project cost high. We must say both the countries must find out a mechanism for lowest bidding in big projects.
We know the visit of Xi Jinping this time bears special significance as China is working under his initiative to recreate the ancient Silk Route along with developing an Economic Belt encompassing all Asian countries by road and rail connectivity and maritime shipping lines and to link them with Europe and Africa. It is a highly ambitious plan Mr Xi has taken up to create new market for the huge Chinese economy all over to sustain the double-digit growth of the Chinese economy while helping economies of other countries to grow. But many also fear China may use its stronger presence to gain strategic leverage.
Xi Jinping is expected to offer billions of dollars investment in Bangladesh to finance big physical infrastructures projects. It aims at building the Bangladesh section of the Silk Route and Asian Economic Belt. News report quoted Bangladesh Foreign Minister AH Mahmood Ali as saying that 25 MOUs may be signed during his 24 hour visit to Dhaka while another official source indicated the investment package may run well over US$25 billion.
This is no doubt a big investment plan of the Chinese government in Bangladesh to bring new boost to already chalked out development strategy for the region under Bangladesh, China, India and Myanmar (BCIM) Economic Corridor. The success of all such investments however will depend on the internal condition of peace and unity. Otherwise neither side will be benefitted. It is a big responsibility to create conditions for proper utilisation of funds coming from China.
Xi Jinping has already visited India, Pakistan, Sri Lanka and Maldives in last two years to advance his Silk Route and Economic Belt plan. He is visiting Bangladesh now to complete his Silk Route plan. But what is note-worthy here is that the trade balance with China is almost ten times against Bangladesh at this moment and how the new loan burden will impact our trade balance. We would call for more solicited projects to keep project cost at low.
