11 Chinese firms willing to invest $9.21b in Bangladesh

Eleven Chinese companies and state-owned enterprises have proposed investing $9.21 billion in Bangladesh after their chief executives and senior representatives, spanning various sectors, met Prime Minister Tarique Rahman in Beijing on Thursday, according to company-wise investment proposals obtained by The Business Standard.

However, officials cautioned that the figures remain preliminary. "These numbers were proposed by the companies themselves," Bangladesh Investment Development Authority (Bida) Executive Chairman Chowdhury Ashik Mahmud Bin Harun told TBS.

"We have not yet carried out any verification or due diligence, so we cannot assess the likelihood of these investments materialising," he added.

Infographic: TBS

The $9.21b proposed investment

Among the proposed investments, China's state-owned Sichuan Road and Bridge Group has expressed interest in investing $4.5 billion in the Dhaka-Chattogram Highway under a public-private partnership (PPP) arrangement. The company has proposed enhancing national connectivity through the project.

The Chinese company's interest comes at a time when the Chinese government has proposed connecting Kunming with Bangladesh's ports of Cox's Bazar-Chattogram, Mongla and Payra through Myanmar. Foreign Minister Khalilur Rahman said at a press briefing on his China visit that Bangladesh is reviewing the proposal.

Bangladesh is also planning to upgrade the Dhaka-Chattogram Highway. The Roads and Highways Department has already submitted a Tk71,000 crore project proposal to the Planning Commission for improving the route. Meanwhile, the Bridges Division is working on a separate plan to transform the key highway into an elevated expressway.

Meanwhile, China's Zhongxin Environmental Protection Group has expressed interest in investing $1.65 billion to establish an e-waste recycling and disposal industrial project at the Payra Port Industrial Zone.

Shanghai Environment Co Ltd has also shown interest in investing $800 million in Bangladesh's waste-to-energy sector. The company plans to invest in projects in Narayanganj, Gazipur and Dhaka South City Corporation areas.

China Shandong Zhongxin Pharmaceutical has proposed setting up a large-scale medical herb cultivation industry in Bangladesh. The company expressed interest in investing $190 million and said all products produced at the facility would be exported to China. The project would require 25,000 bigha of land and create employment opportunities for 50,000 people.

China Kepel Education Group has expressed interest in investing $270 million to establish universities and vocational training institutes in Bangladesh.

China's largest rolling stock manufacturer, CRRC Ziyang, is reportedly interested in establishing a rolling stock assembly plant jointly with Bangladesh Machine Tools Factory. The Chinese company has proposed investing $190 million in the sector.

Huasin Textile Industries Co Ltd has expressed interest in investing $190 million to expand recycled cotton production, manufacture cylindrical lithium batteries and establish a 200MW solar power plant at the Payra Port Industrial Zone.

China's largest logistics company, SF Express, plans to invest $180 million to establish a cold-chain logistics facility and bonded warehouse at Mongla Port. The company believes the project will help expand e-commerce and exports.

Shenzhen Kaifa Technology Co Ltd has proposed investing $250 million to set up a smart electric meter manufacturing plant in Bangladesh.

China Civil Engineering Construction Corporation has proposed investing $650 million to establish the Mongla Port Economic Zone, build bonded warehouses and attract Chinese investment. The Bangladesh Economic Zones Authority (Beza) has already signed an agreement with the state-owned Chinese company to develop the economic zone.

China Future Energy Group Holdings has expressed interest in investing $250 million to extract gas from Bhola under a production sharing contract in partnership with Bapex.