Chinese-funded projects in Bangladesh will continue as scheduled, assured Chinese Ambassador to Bangladesh, Yao Wen. The ambassador made this announcement following a meeting with Finance and Commerce Adviser Salehuddin Ahmed at the Secretariat today (20 August).

“This is my first meeting with the Finance and Planning Adviser since the formation of the interim government,” Ambassador Yao Wen remarked. “We had a productive discussion. Our relationship with the interim government will continue. We will work together.”

Ambassador Yao further emphasized the ongoing commitment to the existing projects while also hinting at discussions surrounding potential new initiatives. “The projects will continue,” he stated, adding, “and there were discussions about potential new support.”

The ambassador also addressed concerns regarding the interest rates on Chinese loans. “Objections raised by Bangladesh regarding the interest rates were discussed. There is an opportunity for further discussions on this matter,” Yao Wen confirmed.

In response, Finance and Planning Adviser Salehuddin Ahmed highlighted the government’s proposals to lower interest rates on Chinese loans and to extend the repayment periods by an additional ten years. “We have talked with our ambassadors,” Salehuddin said. “We will continue the economic matters we have started. We will try to implement the projects. We have requested them to continue their technical and financial support. They have assured us that they will do more than usual. If there are any issues, we will identify them quickly and not delay.”

Addressing the financial challenges left by the previous administration, Adviser Salehuddin acknowledged, “The previous government created some problems. We didn’t need to take on so many projects. Now, we have a debt burden. These are unfortunate things. We will try to help as much as possible.”

The discussion also touched on the ongoing Teesta project, where both China and Canada are involved. Salehuddin mentioned that while issues exist, detailed discussions are still pending. He also highlighted the enormous debt burden left by the previous government, amounting to Tk18 lakh crore. “It’s a huge pressure, an immense pressure. We have to tell the donors that this is a huge pressure. We are reviewing this and discussing it among ourselves. Starting with such a huge debt burden is very difficult for us,” he explained.

Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division, echoed the adviser’s concerns and mentioned that they have proposed reducing interest rates and extending repayment periods. “They have agreed to communicate our concerns to the Beijing headquarters and will inform us soon,” Siddiqi added.

The meeting underscores the ongoing cooperation between Bangladesh and China, even under the interim government, with both sides committed to addressing existing challenges and advancing bilateral projects.

Source: The Business Standard