China to develop 750-acre industrial zone in B’desh as part of South Asia push

Thursday, 5 April 2018 00:00 - - {{hitsCtrl.values.hits}}

Dhaka (Reuters): China is developing a 750-acre industrial park in Bangladesh which will largely be used by Chinese manufacturing firms as part of its push to expand links with South Asia and beyond, a Chinese official said yesterday (4 April).

State-run China Harbour Engineering Company will hold a 70% share in a still-forming joint venture with the Bangladesh Special Economic Zone Authority (BSEZA) for the park, the Chinese Embassy’s (Dhaka) Economic and Commercial Counselor Li Guangjun had stated.

“This is the first time China has received such a facility from the Bangladesh government where Chinese investors will be able to set up industries- mainly manufacturing firms,” Li told Reuters.

China is investing billions of dollars in building ports, power stations and roads in Sri Lanka, Bangladesh, Nepal and Pakistan as part of its Belt and Road initiative to build trade and transport corridors across Asia and beyond.

The industrial park will be in Bangladesh’s main port city of Chittagong and will take five years to become fully operational.

Li said Chinese investment in Bangladesh would soon reach $10 billion, mainly focused on power, road and infrastructure projects.

Most financing for Chinese investment in Bangladesh comes through soft Chinese loans, with interest rates of 2% and repayment periods of 20 years.

In Sri Lanka, China has faced criticism for tough loan conditions which critics say have pushed the island nation into debt and forced it to hand over majority control of the Hambantota port to China in an equity-for-debt swap.

Li said the land acquisition process needs to be faster in Bangladesh for projects to reach completion.