Military drone deal with China: What are the conditions
The Tk608.08 crore project includes Tk570.60 crore for opening letters of credit (LCs) and making payments to import and install the plant and related technology
Bangladesh plans to sign a government-to-government (G-to-G) agreement with China to set up a military drone manufacturing facility, enhancing the country's air defence capabilities.
The Tk608.08 crore project includes Tk570.60 crore for opening letters of credit (LCs) and making payments to import and install the plant and related technology, according to a copy of the proposal seen by The Business Standard.
5 conditions in the proposal
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The finance ministry approved the proposal, subject to five conditions. These include meeting the current fiscal year's expenditure from existing allocations, without seeking any additional budget for this procurement, according to the approved proposal.
From the next fiscal year to FY2028-29, the required funds must be managed within the Bangladesh Air Force's approved annual budget ceilings. All payments must comply with prevailing financial rules and be executed through letters of credit (LCs).
The ministry also stipulated that the approved funds cannot be used for any purpose other than the proposed contract.
China's state-owned CETC International initially quoted Tk643.61 crore, including shipping costs. However, after discussions between Bangladesh Air Force officials and representatives of the Chinese company in November, the contract value was renegotiated and reduced by Tk35.53 crore to Tk608.07 crore.
According to CETC International's website, the company is China's only large-scale technology corporation covering all areas of electronic information, including defence electronics, security electronics, and informatisation, with its products reaching more than 110 countries.
In defence electronics, CETC has developed seven main product systems: air base early warning, integrated electronic information systems, radar, communication and navigation, electronic warfare, UAV electronic equipment, and integrated IFF.
Its security and electronic information portfolio includes public security, e-government, intelligent transportation, new energy, components, and other related products and services.
