China is set to sign off on loans worth over $24 billion to Bangladesh during President Xi Jinping’s visit on Friday. China plans to finance around 25 projects, including a 1,320 megawatt (MW) power plant, and is also keen to build a deep sea port in Bangladesh. Japan has also offered finance at low interest rates to build a port in Bangladesh.
The move to sign the loan comes a day before China’s President Xi Jinping heads to Goa for the BRICS Summit. Jinping’s visit to Bangladesh is a first by a Chinese president in 30 years.
Last year, India gave a $2 billion credit line to Bangladesh, which India considers an ally.
A China-based company Jiangsu Etern Co Ltd has signed a $1.1 billion deal with Bangladesh to develop the power grid network in the South Asian country, which is also looking to be a part of China’s “One Belt, One Road” initiative.
China earlier had proposed an economic corridor linking Bangladesh, Myanmar, China and northern India.
