Chinese co comes up with new proposal - Padma Bridge

[iajdani]

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China has come up with a proposal to build the much-coveted Padma Bridge at the estimated cost of US$2.9 billion as per the existing design in three years, officials said.

Communications ministry officials said the Chinese company-China Railway Bridge Bureau Group Co. Ltd.-in its proposal to the Bridge Division last week said it would build the bridge on the build-own-transfer (BOT) basis.

The company would construct the bridge following the existing design on its own within three years by investing 70 per cent or $2.0 billion out of the total cost of $2.9 billion, said a senior communications ministry official.

The remaining 30 per cent of the bridge cost would have to be provided by the government of Bangladesh, he told the FE requesting for anonymity

As per proposal, the Chinese company, which has the experience of building the 36-kilometre-long Hangzhou Bay Bridge in China, will form a consortium comprising three Chinese companies and the Bangladesh Bridge Authority (BBA) to build the 6.15-kilometre bridge.

The official said the Chinese company would borrow its portion of the fund, $2.0 billion, from one of its state-owned commercial banks. If disbursed, the Bangladesh government would have to repay it in 20 years without any interest.

"It is a package proposal. The consortium will invest 70 per cent of the cost and procure all the elements on its own. It will mobilise the funds and complete the construction within three years. Then it will hand over the bridge to Bangladesh," he said.

The official said, "We are seriously examining the Chinese proposal and if we find it viable, we will go for negotiations soon to start the construction work on the steel-fabricated bridge."

According to the proposal, the Bangladesh government will have to ensure the sovereign guarantee for the loan.

The Chinese company, however, proposed that it would save some money from the $2.9 billion and the Bangladesh government would have to allow them to repatriate the fund to China, the finance ministry official said quoting the proposal.

The Chinese company in its proposal also agreed to allow an international firm, appointed by Bangladesh government, to supervise the construction work on the Padma Bridge, the communications ministry official said.

He also said it would be a lucrative offer for the country. "But we need to negotiate with the Chinese consortium keeping the quality in mind."

Since China is a major supplier of construction materials like steel and also advanced in technology, it might be possible to build the bridge within three years by the consortium, the official added.

"The consortium will bring manpower from China and procure most of the materials from its origin country. It will only procure few materials like cement, sands and bricks from Bangladesh," the official said.

When it comes to the investment offer, it is interesting to note that the government will get an opportunity to invest the 30 per cent or $900 million worth of fund out of the total $2.9 billion in the local currency as the Chinese company will spend the money in Bangladesh.

The Chinese company has also proposed that it will build the railway-cum-road bridge as a 6-lane one, instead of 4-lane as in the existing design, at the estimated cost of $2.9 billion.

After cancellation of a loan of $1.20 billion by the World Bank for the bridge project, the government was looking for alternative options for building the much-awaited bridge.

The Chinese company built the 36-km-long Hangzhou Bay Bridge in the sea during 2003 to 2007 and now it is open to traffic.


Chinese co comes up with new proposal

Chinese are freaking innovative. I like them and their business proposal are quite interesting.

So now the bridge will be of 6 lanes instead of 4 lanes.

No, interest on loan..

Repayment in 20 years.

GOB will own the bridge.

Chinese companies will take whatever money they will save from $2.9 billion dollar.

Great

[LaBong]

^

+ GOB has to provide 30% of 2.9 billion.

So, Chinese will invest 2 billion.
They will take whatever money they save.
Rest will be re-payed by GOB in 20 years.
GOB will pay 1 billion.

I'm sure the bridge won't cost Chinese more than 2 billion.

They are indeed innovative.

What was the estimated cost of bridge under world bank?

[iajdani]

^

+ GOB has to provide 30% of 2.9 billion.

So, Chinese will invest 2 billion.
They will take whatever money they save.
Rest will be re-payed by GOB in 20 years.
GOB will pay 1 billion.

I'm sure the bridge won't cost Chinese more than 2 billion.

They are indeed innovative.

What was the estimated cost of bridge under world bank?

The cost estimated $2.9 billion dollar. They are not asking anything more rather arranging fund for $2 billion dollar interest free.

[LaBong]

What was the estimated cost under world bank

They are asking Bangladesh to pay one billion as well as repayment of 2 billion in 20 years, all the while taking whatever they can save from 2.9 billion.

Also they will source the materials and workforce from china.

I'm sure they will try to save as much as they can

[KS]

Bollywood has enough art directors to build a bridge across the Padma..

Will we get the deal ?

[Md Akmal]

@ Good !!! THat's what we want ???? "Joy Sk Hasina ". We should immediately contact the Chinese Govt.

@ No percentage ! No "Hafta", Good !!! Must be the great idea of Begum Khaleda Zia ???????????

@ " Ustad er mar shes ratre ".

[UKBengali]

I like this idea.

Now let us have other projects by the Chinese is a similar fashion.

[xuxu1457]

A good way to improve infrastructure

[CaPtAiN_pLaNeT]

I think one info is missing here. China will own the bridge for 20 years. So likely they will take away the toll money based on the BOT agreement as well for the next 20 years.

By the way here is another interesting proposal...

$1b Indian credit Fund can be used for Padma Bridge: Indian official

$1b Indian credit Fund can be used for Padma Bridge: Indian official | REFLECTION NEWS

July 14, 2012 | Filed under: National | Posted by: admin

The Bangladeshi government can use the promised $1 billion Indian credit line for constructing the Padma Bridge, said an Indian official on Friday.

While talking to a news agency, the official said that New Delhi does not have any objection to the diversion the credit line as the World Bank scraped loan exposing the project to a difficult state.

He said, “As per our condition, Bangladesh could use the amount for any purpose. Bangladesh can use the fund for the Padma bridge construction as it is a big project and will need huge amount of fund.”

However, the economic relations division officials in Dhaka said, “The credit amount was already channeled for different infrastructure projects, especially for railway development.”

The matter will be considered after getting any official proposal from India, they said.

Dhaka and New Delhi signed the $1 billion loan agreement to finance infrastructure development in Bangladesh two years ago while the amount was the biggest credit package by India to any nation.

[jha]

Its a very good project. Should be done on priority basis. Bangladesh cant construct this on its own..?

[UKBengali]

Its a very good project. Should be done on priority basis. Bangladesh cant construct this on its own..?

Not really.

There is little chance that 1 billion dollars a year for the next 3 years can be easily found, especially when there are so many other priorities currently.

[jha]

Not really.

There is little chance that 1 billion dollars a year for the next 3 years can be easily found, especially when there are so many other priorities currently.

Then chinese option is also good. Only troubling thing is the money saving part. If this clause does not have an impact on the quality of construction, then its a good proposal.

[iajdani]

I think one info is missing here. China will own the bridge for 20 years. So likely they will take away the toll money based on the BOT agreement as well for the next 20 years.

I thought the same at first. But the Chinese company will make money on construction not through toll. The bridge will be owned by GOB from day one.

What was the estimated cost under world bank

They are asking Bangladesh to pay one billion as well as repayment of 2 billion in 20 years, all the while taking whatever they can save from 2.9 billion.

Also they will source the materials and workforce from china.

I'm sure they will try to save as much as they can

I told you it was $2.9 billion dollar under WB. If they save money from $2.9 billion then why will it be our problem? Let them have it.

I am sure there were some money over estimated for our Abul/Rehana and Gang (10%) as kickback. Chinese company will take that as profit which I strongly support. We are getting a sweet deal in the form of $2 billion interest free loan. Plus we can use our budget allocation of $900 million in the form of local currency. So we dont have to back nearly $4 billion dollar in greenback instead we only payback $2 billion in greenback.

Then chinese option is also good. Only troubling thing is the money saving part. If this clause does not have an impact on the quality of construction, then its a good proposal.

The design is ours, the monitoring consultant is ours. If you keep a vigil eye then it should be fine.

[Hyperion]

Chinese are really getting their act together, and for the first time are learning how to play good geo-politics!

An excellent way to simultaneously 'assist', and 'bridge' any remaining gap into the hearts and minds of BD's!

[UKBengali]

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I thought the same at first. But the Chinese company will make money on construction not through toll. The bridge will be owned by GOB from day one.



I told you it was $2.9 billion dollar under WB. If they save money from $2.9 billion then why will it be our problem? Let them have it.I am sure there were some money over estimated for our Abul/Rehana and Gang (10%) as kickback. Chinese company will take that as profit which I strongly support. We are getting a sweet deal in the form of $2 billion interest free loan. Plus we can use our budget allocation of $900 million in the form of local currency. So we dont have to back nearly $4 billion dollar in greenback instead we only payback $2 billion in greenback.



The design is ours, the monitoring consultant is ours. If you keep a vigil eye then it should be fine.

This are the Chinese we are talking about.

I am quite sure that this 6-lane bridge will cost them at most 2 billion to build.#