China may confirm US$461 million worth of loans for bankrolling two more projects in Bangladesh after a long wait for development assistance from a package deal, officials say.
Beijing may confirm $276 million loan for Rajshahi WASA and another $185 million for Bangladesh Shipping Corporation (BSC) to procure six vessels, they add.
"China has almost completed evaluation of the Rajshahi WASA project. A Chinese contractor is discussing with BSC procedures to complete a commercial deal for getting supply of six vessels," said a Ministry of Finance (MoF) official Monday.
"After the evaluation and commercial deal, we will go for negotiation with Chinese EXIM Bank for getting the loans for both the projects very soon. We are eagerly waiting for the financial help," he added.
Meanwhile, Dhaka is in long wait for confirmation of funding for at least six projects as China has been delaying more than a couple of years the firming up of the assured loans.
Delays over confirmation of the loans have already affected execution of those projects in time although relevant government agencies have taken preparation to jumpstart work, government officials concerned said.
Earlier, the government had shared a list of 27 priority projects with China in 2016 for getting finance within five years.
During Chinese President Xi Jinping's visit to Bangladesh in October 2016, a memorandum of understanding for the 27 projects was signed for some US$21 billion worth of funds from Beijing. The implementation of these projects was supposed to be completed by 2020.
But most of those projects still remained unimplemented for lack of confirmation of the assistance over the years, officials said.
According to MoF, Beijing has so far confirmed $7.8 billion in loans for eight Bangladeshi projects following the MoU signing in 2016.
An Economic Relations Division (ERD) official said the latest deal with China was signed in October 2021 wherein a $1.13 billion worth of loan was confirmed for constructing Dhaka-Ashulia elevated expressway, one of the megaprojects the neo-rich Asian country helps in Bangladesh, including the iconic Padma Bridge.
Before the $1.13-billion-loan deal, the previous one was signed more than a year ago, he said.
According to the implementing agencies, Rajshahi WASA is going to borrow the $276 million from China for upgrading the northwestern city's water-supply and-sewerage system.
Besides, the BSC will procure six oceangoing vessels to be used for transporting goods in foreign trade across the world.
Meanwhile, another MoF official said they had also requested Beijing to confirm other loans it assured for in 2016.
"We are communicating with the Chinese government over the years. But the confirmation of the loans even for the above-mentioned two assured projects has yet to be finalised," he told the FE, requesting anonymity.
The pending loans include $125 million for bankrolling six TV stations' improvement project for Bangladesh Television, establishing digital connectivity with the proposed $400-million support, Mongla port jetty-installation project with $353 million, and the water-supply and-distribution system from Dasherkandi water-treatment plant.
A DWASA official says it is a crying need to install the supply-and distribution system aligning with the Dasherkandi sewage-treatment plant. So they need the fund confirmation immediately.
He says they are also requesting Beijing to confirm finances for the remaining four projects in the pipeline, too.
China is one of the largest bilateral development partners of Bangladesh as it has so far confirmed credits worth some $7.80 billion for eight projects.
During July-August period of the current fiscal year (FY) 2022-23, China disbursed $187.19 million worth of loans to Bangladesh, ERD data showed.
