Bangladesh interim government may approve the much-awaited China-funded Mongla-seaport-development project. The project was sent back from the Executive Committee of the National Economic Council (ECNEC) in 2020 as the ousted Sheikh Hasina government favoured a similar project proposed to be funded by India. The Planning Commission (PC) is going to place the stalled project proposal before the ECNEC, expected to convene on January 28.
Issues involving the Dhaka-Beijing cooperation, apparently are gathering pace following Foreign Affairs Adviser Touhid Hossain’s maiden China mission after the August-5th student-mass uprising brought regime change. He came back from China on January 23 after the four-day visit when he had talks with the Chinese foreign minister.
China has assured Bangladesh of providing Tk 35.93 billion or $335.78 million worth of loan for implementing the proposed port-development project, deemed important as the Mongla is set to become a regional porting hub.
Earlier in 2020, the past government allowed Indian financial support for a separate project on upgrading the Mongla seaport, now gaining prominence with major communications-infrastructure development done by China in the region connecting the capital, Dhaka.
Currently, the Mongla Port Authority (MPA) under the Ministry of Shipping has been implementing the Tk60.15-billion project since 2020 for upgrading the port with part financing of Tk44.59 billion from Indian loans. During the visit of the Foreign Adviser, China proposed to Bangladesh government for making investment in Mongla-seaport development, among other areas of cooperation.
Dhaka considered the proposal on a positive approach as it wants more concessional loans and their speedy confirmation from Beijing to upgrade infrastructures as a couple of the assured loans is pending for years. A few years back, Beijing proposed to invest in Bangladesh’s second-largest port, Mongla, for the development, a senior Economic Relations Division (ERD). Earlier, the project was put on hold by the deposed Sheikh Hasina government allegedly on “geopolitical considerations” in September last year.
The entire western part of Bangladesh and its adjoining areas are considered hinterland, having a unique opportunity to play vital role in the arena of international and regional trade and economy, officials told their Chinese counterparts regarding the importance of the project. In unlocking its potential, the Mongla seaport recently registered a record in terms of ship arrivals, cargo handling, and revenue earning. In 2020, the port saw a turnout of 970 ships-the highest in its 70-year history. It earned a profit of Tk 1.30 billion from the limited-scale port operations.
