China may write off loans till 2008

Securing a closer and stronger friendship and cooperative partnership, China is expected to come up with some important announcements, including write-off of loans given to Bangladesh till 2008.
Diplomatic sources said Chinese Vice President Xi Jinping, who will pay a two-day official visit to Bangladesh on June 14-15, may announce write-off of loans, establishment of direct rail link between Dhaka and Kunming via Myanmar and assistance in building a deep sea port at Sonadia island for boosting trade and investment.
China has provided Bangladesh 1.5 billion US dollar so far, of which 978 million US dollar is hard loans.
Official sources said in commemorating the 35th anniversary of diplomatic relations, China is very much willing to strengthen and develop relations of friendship and cooperation with Bangladesh.
They said China is very much willing to establish direct rail link between Dhaka and Kunming, and help build a deep sea port at Sonadia Island.
“We are expecting important announcement by Xi Jinping regarding the Bangladesh-China direct link and their financial support for construction of a deep sea port,” said a senior foreign ministry official.
During the Prime Minister Sheikh Hasina's visit to China on March 17-22, Beijing assured Bangladesh of using the deep sea port, which is very important for its viability, they added.
Since the planned seaport will require huge investment, assistance from more than one country will be needed. China will benefit from it as prices of Chinese products abroad will be less because of shortening of distance, they added.
Officials said Dhaka and Beijing decided to establish “closer comprehensive partnership of cooperation from the strategic perspective" and the Xi Jinping's visit will be highly positive and get a new momentum of cooperation.
At the official talks, sources said a number of important issues, including Chinese assistance to construct Padma Bridge, will come up for discussion. An agreement related to economic cooperation will also be signed.
Official sources said Bangladesh will request China to use its good offices to convince Myanmar to begin construction of a road from Bangladesh's Gundhum area to Bolibazar in Myanmar. Bangladesh will pay for the construction of the 25km (16 mile) road. The road will be extended to connect Bangladesh with China and Thailand.