Chinese-funded projects will continue: Envoy

Chinese Ambassador to Bangladesh Yao Wen assured that projects funded by China in Bangladesh will proceed as planned. 

The announcement came after a meeting with Finance and Planning 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,” said Yao Wen. “We had a productive discussion. Our relationship with the interim government will continue. We will work together.”

Yao Wen also addressed ongoing projects, saying that they will continue and that there were discussions about potential new support. 

Regarding concerns over Chinese loan interest rates, he said, “Objections raised by Bangladesh regarding the interest rates were discussed. There is an opportunity for further discussions on this matter.”

Finance and Planning Adviser Salehuddin mentioned proposals to lower interest rates on Chinese loans and extend 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.”

Salehuddin also noted the challenges left by the previous government, saying, “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.”

On the Teesta project, Salehuddin mentioned that there are issues with both China and Canada, but detailed discussions have yet to occur. 

He also addressed the Tk18 lakh crore debt burden left by the Awami League government, saying, “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.”

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