[BRI] China to finance the Marine Drive Expressway from Sitakunda to Chittagong and Cox's Bazar

On September 21, 2016, the Bangladesh cabinet committee on Economic Affairs approved the Roads and Highways Department's proposals allowing China Harbour Engineering Company to build two mega-roads for about 380 billion Bangladesh taka ($4.8 billion). One of the projects involves the construction of a marine drive expressway, as well as coastal protection, from Sitakunda to Chittagong and Cox's Bazar. A news report by the Manila Standard suggests that the project, which has a total cost of $2.85 billion, will be financed by Chinese loans. The Financial Express states that the project will be financed through Preferential Buyer's Credits from China, which was pledged during the visit of President Xi Jinping to Bangladesh in 2016. The ReconnectingAsia database lists the Bank of China as the funder of the project but does not provide a funding amount. Other sources identify the expected funder as China Eximbank. The same source above also suggests that the Expressway will start construction in 2019 and is expected to be finished in 2021. Funds have not been disbursed yet for the project. In July 2018, a news agency in Bangladesh reported that earlier in January, the Chinese engineering contractor had been ousted from the Dhaka-Sylhet highway development project for offering a bribe to a secretary of the Road, Transport, and Bridges Ministry. Zahidul Haque, additional secretary of the Economic Relations Division, said if the Ministry cancels the preliminary agreement with China Harbour Engineering, the Chinese firm has no right to go for arbitration as no final agreement was signed. Voice of America reports in the same year that, according to Bangladeshi finance minister AMA Muhith, China Harbour Engineering Co was been blacklisted from participating in future projects. According to the Business Times, as of July 2020, financing for the expressway still has not been secured.

Additional details

It is also unclear as to whether the funding was ever committed-to, as AidData was unable to locate an official loan agreement. The pledge was likely made by either the Bank of China or the Export-Import Bank of China.

Number of official sources

0

Number of total sources

13