Thursday, November 14, 2019 | ePaper

China funded projects: Delay would create problems

  • Print
A JOINT working group has been formed to probe the slow progress of the 27 projects involving around $20 billion that China had agreed to provide during President Xi Jinping's Dhaka visit in October 2016. China has so far disbursed only $981.36 million -- less than 5 percent of the amount promised -- since the preliminary agreements were signed between the two countries more than two and a half years ago.
During Prime Minister Sheikh Hasina's visit to China earlier this month, the two sides signed an agreement to form a working committee to identify the reasons for the delay and eliminate those. The development can be viewed as one of the important take aways from the tour. Preliminary agreements for large sums of loans are invariably signed on foreign tours or when heads of State or government visit Bangladesh but most of the projects are not implemented in due time.
Bureaucratic red tape is largely at fault for the snail's pace of progress in the projects. In Bangladesh, the projects must get approval from several committees, which is a   long-drawn-out exercise. The situation is almost similar in case of China. For instance, if they do not agree to or fail to understand even a particular word in the project documents, they send the file back to Bangladesh for the process to start anew. China's Exim Bank has some limitations: only a few officials of the bank deal with foreign loans. Also, Chinese firms lobby hard in both the countries to get contracts, causing further delay. Furthermore, even after loan agreements are signed, which is the last step for projects bankrolled by China, funds are released slowly.
Since the various bottlenecks are well known it should not be a problem to figure out how to release the funds properly. Bangladesh needs to be aware of the fact that it has to pay back the USD 20 billion so it can't afford to use the funds inefficiently, or we will end up becoming like Sri Lanka and end up leasing part of our sovereign territory. We have been macro economically prudent so far --but we must continue it for the foreseeable future.


More News For this Category

Free Chattogram Port from corruption

ALLEGATIONS have been raised against a section of Chattogram Port Authority officials for their involvement in various illegal activities, including taking bribes from the port users. They raised the allegations

People need safe and reliable train service

IN Brahmanbaria's Kasba, Dhaka-bound inter-city train Turna Nishita Express by breaching traffic signal hit Chattogram-bound another inter-city train Udayan Express on Tuesday leaving 16 people dead and injured another 70

BRICS

Ma Zhaoxu :The 11th BRICS Summit slated to take place from Nov. 13 to 14 in Brasilia, capital of Brazil, has drawn extensive attention and anticipation from the international community.The

A Verdict

Afsar Ahmad :Has the Supreme Court verdict on the decades-old Ayodhya dispute resolved the vexed issue? Technically, the answer may be yes, but emotionally, that perhaps is not the case.Though

Rehabilitate cyclone-hit people in an emergency basis

CYCLONE Bulbul has affected huge areas of crops and fish farms in the southern coastal districts, according to preliminary reports by the government agencies concerned. The cyclone, which swept over

An innocent`s imprisonment

AFTER 27 days of imprisonment being wrongfully arrested by police, 19-year-old Rajan walked out on Monday. Police arrested Rajan Bhuiyan instead of Habibullah Rajan from the same village Gopalnagar, Brammanpara

Climatic Variability

Shishir Reza :Bangladesh is an agricultural country. Climate change has emerged as a global concern in the past 20 years. One particular worry is the potential disastrous consequence for agriculture

Readers’ Forum

Nutrition and National DevelopmentThere are couples of definitions of malnutrition. The most widely used applied definition of nutrition/malnutrition encompasses three major determinants of nutrition - food, care and health. Nutrition

Ghana files case against Myanmar, Bangladesh can't sit idle

NEWS media on Monday reported that Gambia, which is predominantly a Muslim country, filed a case at the United Nations' top court accusing Myanmar of committing genocide against its Rohingya

Save the Sundarbans, it will protect us

THE Sundarbans, now most neglected world's largest mangrove forest, again has protected the country from the mighty storm 'Bulbul'. Not only the Bangladesh, the Sundarbans this time has also saved