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    South Asia
     Nov 9, 2012


Bangladesh boosts cash ties with China
By Syed Tashfin Chowdhury

DHAKA - Bangladesh, under the hand of Prime Minister Sheikh Hasina, has strengthened its economic ties with China through a series of agreements that will help boost the South Asian country's tourism industry and power sector. Not to be outdone, opposition leader Khaleda Zia returned from a week-long trip to Beijing claiming a breakthrough on plans to build an important bridge that will link Dhaka with the east of the country.

Sheikh Hasina's administration signed a number of deals with Chinese officials during and after an October 21 visit to Dhaka by a delegation led by Li Changchun, a member of China's top political body, the Politburo Standing Committee.

China will disburse US$200 million as a soft loan to the Bangladesh government to develop the airport in Cox's Bazar, in

 

the southeast of the country, the country's top tourist spot and promoted as having the longest beach in the world. Work includes widening and lengthening the runway and improving safety features to a standard that will allow international flights. At present, the nearest international airport is at Chittagong, four hours away by road.

The agreement involves the Civil Aviation Authority Bangladesh and Avic International Engineering Co, under the Aviation Industry Corporation of China.

Separately, in the biggest deal yet involving a Bangladeshi private-sector company with a Chinese company, Summit Bibiyana II Power Company and First Northeast Electric Power Engineering Company signed a $220 million deal to build a 341MW power project in Habiganj by 2014.

Summit Bibiyana is a venture of Summit Group in Bangladesh, which is owned by the family of present Civil Aviation and Tourism Minister Faruk Khan.

Other agreements covering economic and technical cooperation including the provision of US$226 million to implement a water treatment plant at Dhaka Wasa, near Dhaka.

Khaleda Zia, leader of the opposition Bangladesh Nationalist Party, returned from China saying that Beijing has agreed to provide "all help" in the construction of a second Padma Bridge. Construction of the $3 billion bridge has been delayed by concerns at the World Bank and other backers over possible corruption in the contracting process.

Khaleda Zia's China visit was "fruitful", senior BNP member Khandaker Mosharraf Hossain was quoted by United News of Bangladesh as saying, Beijing has agreed "in principle" to assist Bangladesh in constructing a second Padma Bridge and an export processing zone as proposed by Zia.

During her visit, BNP met key Chinese leaders including Vice President Xi Jingpin, Foreign Minister Yang Jiechi and Vice Minister of the International Department of the Chinese Communist Party Chen Fengxiang. According to Mosharraf, Xi said China is ready to work with Bangladesh towards establishing road and rail links between Chittagong and Kunming in southwest China, constructing a deep water port at Sonadia, near Mongla, in southwest Bangladesh, and helping to modernize the Bangladesh armed forces.

Mosharraf denied a claim by Mahbub-ul-Alam Hanif, joint general secretary of the ruling Awami League, that Khaleda went to China to complain about the Bangladesh government. "Khaleda Zia did not go to China willingly to complain against anybody rather she had been there at the invitation of CPC," he said.

Khaleda Zia followed up her China visit with a week-long trip to India at the invitation of the New Delhi government. Zia has recently shifted away from the BNP's former "anti-India" stance. At a meeting with India's recently appointed Foreign Minister Salman Khurshid in Hyderabad on October 30 she said India-Bangladesh "connectivity" is "inevitable".

Earlier, BNP had opposed Bangladesh granting transit facilities for India to connect its landlocked northeastern states with the rest of the country - which a deep water port at Sonadia would facilitate. She urged New Delhi's participation in a consortium with China to build the port. Khaleda said in India that her political party "does not want to look back but wants to look ahead and build a new era in relations between the two countries".

In Dhaka, Daily Star quoted senior BNP members as saying the BNP increasingly realized that it much to for its anti-India strategy and that India is now a big factor in regional and international politics is the reason behind this shift. Some went to on to allege that Jamaat-e-Islami and Islami Oikya Jote, two of the BNP's Islamist political allies since 2001, had persuaded Khaleda Zia to take up the anti-India stance.

Khaleda and her team are to visit the United Kingdom and United States in December and January as these nations are greatly significant for the BNP "in terms of their political and economic influence over Bangladesh".

Syed Tashfin Chowdhury is the Editor of Xtra, the weekend magazine of New Age, in Bangladesh.

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