Recently, China Communications Construction, China Road and Bridge Corporation and the Bangladeshi government signed a PPP project for the Dakarad Viaduct. The Ladd Viaduct project is located in the southeast of Dhaka, with a total length of 13.5 kilometers. It will be upgraded and transformed into a 4-lane expressway with a concession period of 25 years. Electricity and transportation are important areas for Chinese-funded enterprises to invest in Bangladesh. This project is another transportation infrastructure investment made by Chinese-funded enterprises in Bangladesh following the Dhaka Airport Elevated Expressway Project and the Dhaka Ring Expressway. project.

The PPP/BOT investment field of Bangladesh's transportation infrastructure deserves the attention of Chinese-funded enterprises. The Bangladeshi government encourages rail transit investment through the PPP model and promotes connectivity with neighboring countries. In order to achieve the sustainable development goals in 2030 and transform Bangladesh into a developed country by 2041, the Bangladeshi government has implemented a medium-term road development plan, and plans to upgrade all national highways in the country to four lanes. By the 2022-23 fiscal year, the Bangladesh Ministry of Transport's budget allocation will increase to Tk 773.65 billion, an average annual increase of 14.65%. In addition, the Bangladeshi government attaches great importance to railway construction and plans to promote the railway to become a modern mass transportation system.

PPP project of Chinese-funded enterprises in Bangladesh

The project is jointly invested, constructed and operated by Shandong Expressway Group International Cooperation Company, China Hydropower Construction Group International Engineering Co., Ltd. and Thailand's Italian Thai Company. The owner is the Bridge Bureau under the Ministry of Communications of Bangladesh. The total length of the Dhaka Airport Elevated Expressway is nearly 46 kilometers, of which the main line is 19.73 kilometers long and the ramp is 26.58 kilometers long. In the south of the city, it is connected to the Chittagong Highway. The total investment of the project is about 1.26 billion US dollars, the franchise period is 25 years, and the construction period is 42 months. The Export-Import Bank of China and the Industrial and Commercial Bank of China signed an agreement with the project company in April 2019 to provide a US$861 million loan for the project.

This project is the first major infrastructure project in Bangladesh to be implemented in the PPP mode, and it is also one of the largest infrastructure projects implemented by the government to alleviate traffic congestion in the capital.” Dhaka Ring Expressway Project, which is funded by Sichuan Railway Investment Sichuan Road and Bridge Group, a subsidiary of the group, and related companies in Bangladesh jointly invest, construct and operate. The project is located in the north of Dhaka, the capital of Bangladesh, and mainly connects the northern industrial zone and the northeastern industrial zone of Bangladesh, as well as the southern part of Bangladesh and the largest port in the country, Chittagong. It is about 48 kilometers long, with a total investment of about 2.844 billion yuan. Keywords: engineering construction, engineering news

In November 2021, the project successfully completed the signing of the syndicated loan financing agreement. Financing is provided by a syndicate formed by China Development Bank Sichuan Branch and a local infrastructure construction fund company in Bangladesh, with a total overseas loan of US$184.3 million and a total domestic loan of 10.75 billion taka (approximately US$122.87 million), with a loan term of 18 years . This financing model and the method of forming the syndicate are of milestone significance, creating a precedent for Bangladeshi domestic banks and Chinese banks to form a syndicate to jointly provide loans for PPP projects in Bangladesh.Editor/XingWentao