Bangladesh has decided to request China to reduce interest rates on their loans bankrolling big-budget development agenda and expedite disbursement of the funds committed for different projects, officials said.

As learnt from sources in the Ministry of Foreign Affairs, the matter is expected to be raised during a bilateral meeting between Chinese President Xi Jinping and Bangladesh Prime Minister Sheikh Hasina scheduled to be held at 2:30pm (local time) on August 23 on the sidelines of the BRICS summit in Johannesburg this week.

Sheikh Hasina was set to fly for Johannesburg, South Africa, today (Tuesday) and there is a possibility of a one-on-one meeting between the two leaders.

However, asked about the matter, Foreign Minister Dr AK Abdul Momen said schedules of sidelines summit talks were not fixed yet.

“There is a possibility, but not confirmed,” he said when asked whether there would be a bilateral meeting between the leaders of Bangladesh and China-the two Asian nations now having best of relations, especially on the economic front.

Making a flashback on a promised development funding, the foreign minister said in 2016, during the visit of the Chinese President to Dhaka, agreements on several projects worth over 23 billion US dollars were signed but so far only around 4.0 billion dollars were disbursed.

“We shall request China to expedite the disbursement,” he said, adding that Bangladesh also wants pared-down interest rates on Chinese loan.

“We will request that if they reduce the rate, it would benefit us,” he said, pointing out that China is a major development partner of Bangladesh in its quest for status change into a higher-income country.

According to statistics eight projects under Chinese funding are now ongoing.

Among these, the disbursement of funds for the Padma rail-link project is 1991.47 million dollars against the project loan of $2667.94 million, disbursement for Karnaphuli Tunnel project is 660.51 million dollars against 705.80 million, disbursement for Single Point Mooring project is 465.46 million dollars against 550.67 million, disbursement for telecom modernisation project is 224.53 million against 231.50 million, disbursement for DPDC project is 534.75 million dollars against 1402.93 million, disbursement of PGCB project is 219.08 million against 966.28 million, disbursement for Ashulia expressway project is 170.60 million against 1126.99 million and 55.25 million disbursed against 276.25 million for Rajshahi WASA treatment plant project .

Climate change, regulated migration, and promotion of trade and investment will also be high on the agenda in Bangladesh’s talks with China.

In this regard the FM said, “They have given us significant facilities in trade but still the balance is one-sided so Bangladesh wants to raise its share.”

He indicates a way of bringing some balance in trade: more Chinese investment in Bangladesh can resolve this problem.

The foreign ministry said since the Bangladesh prime minister is scheduled to have a bilateral meeting with Indian Prime Minister Narendra Modi on the sidelines of the G20 summit in the second week of September, a meeting with Mr Modi in Johannesburg is unlikely.

“But there will be a courtesy call,” says Dr Momen.

He also said Bangladesh believes in peace and stability in the region-and this message is conveyed to all.

“I am very happy that India also believes in the same policy. Our Prime Minister conveyed the same message when world leaders came here during the 50th-anniversary celebration of the independence of Bangladesh. Sheikh Hasina is considered symbol of regional peace and stability,” he notes.

His remarks carry a veiled reference to geopolitical tensions and big-power rivalries in the Indo-Pacific region.

Asked whether the same narratives would be conveyed to China during the bilateral summit meet, the foreign minister said if he would be there, he would raise these issues.

mirmostafiz@yahoo.com