Upgraded ties usher in new era for China-Bangladesh cooperation

(Xinhua) Updated: 2016-10-15 17:14

BELT AND ROAD OPPORTUNITIES

"Bangladesh, with its favorable geographic location and huge population, market potential and cooperation space, is an indispensable partner for China to advance the Belt and Road Initiative and production capacity cooperation in South Asia and the Indian Ocean region," Xi said in a signed article carried by leading Bangladeshi newspapers on Friday.

The Belt and Road Initiative, proposed by Xi in 2013, comprises the Silk Road Economic Belt and the 21st Century Maritime Silk Road. It is aimed at building a trade and infrastructure network connecting Asia with Europe and Africa along the ancient trade routes.

Bangladesh's firm support for the Belt and Road Initiative and and the building of an economic corridor linking Bangladesh, China, India and Myanmar (BCIM) have borne fruit.

The multipurpose road-rail Padma Bridge, being built by the China Major Bridge Engineering Company, is the largest and most challenging infrastructure project in Bangladesh's history.

Once opened in 2018, it will significantly improve transportation in Bangladesh's northeast and southwest regions and bolster the Bangladeshi economy by 1.5 percent according to the estimation of economists.

The bridge will also make it more convenient for neighboring countries to use Bangladesh's seaports, and promote the country's trade with China, India and Myanmar.

Chinese enterprises have also signed deals with Bangladesh to build a two-lane tunnel underneath the Karnaphuli River, the first of its kind in Bangladesh, and to carry out detailed engineering design for a four-lane expansion of a national highway.

"Infrastructure is crucial to Bangladesh's development. The Belt and Road Initiative and the BCIM Economic Corridor will help improve air, rail and road transport for countries involved," Jiang Jingkui with Peking University said.

Better infrastructure calls for greater investment. The Asian Infrastructure Investment Bank (AIIB), of which Bangladesh is a founding member, and the Silk Road Fund, among others, could serve as financial sources.

In June, the AIIB approved its first four loans, including one worth 165 million U.S. dollars for a power distribution system upgrade and expansion project in Bangladesh.

"The Silk Road Fund, the Asian Infrastructure Investment Bank and the New Development Bank will help Bangladesh achieve its development goals. We expect closer China-Bangladesh cooperation under the Belt and Road framework," said Xiang Junyong, research fellow with Chongyang Institute for Financial Studies at Renmin University of China.