The Export-Import Bank of India (Exim Bank) is bullish on investing in Bangladesh’s economic development with its total support reaching $9.46 billion, consisting of credit lines as well as loans for various developmental projects.
“Our overall support to Bangladesh now stands at $9.46 billion on various developmental projects. It is in our interest to have a stable and prosperous neighbourhood. We started a little late in Bangladesh but some of the projects are nearing completion now,” David Rasquinha, Managing Director, Exim Bank, told BusinessLine .
During the recent visit of Bangladeshi Prime Minister Sheikh Hasina to India, an agreement was signed between Exim Bank of India, Bangladesh India Friendship Power Company Ltd and Bangladesh’s Ministry of Power, Energy and Mineral Resources.
Power plant“This is the largest single project Indian investment in Bangladesh. This is for an ultra super-critical power plant in the Rampal district of Bangladesh. Bangladesh has a power deficit. Almost 25 per cent of the population there has no access to power. So this project will go a long way towards bridging that deficit,” Rasquinha added.
Under the facility agreement, India will make investments worth $2 billion in the project, out of which $1.6 billion will be financed by Exim Bank for constructing 1320-MW Maitree Power Project in Rampal, Bangladesh. The power plant will be built by BHEL.
Creating economic activity“Not only will this have an economic impact in Bangladesh, it will equally have an economic effect in India because BHEL’s capacity is being utilised, employment is being generated in BHEL’s plants in India. BHEL has a host of ancillary support so economic activity is created. A line of credit given to others creates a great deal of economic activity right here in India,” Rasquinha added.
Once commissioned, the Maitree Project is expected to be the largest power plant in Bangladesh.
Apart from this, Exim Bank has extended two new LoCs to Bangladesh worth $4.5 billion and $500 million, which include projects in the areas of port construction, railways, roads, airports, power and energy, telecom and shipping.
In addition to this, LoCs worth $2 billion and $862 million each have been granted to Bangladesh for supply of buses, railway wagons, passenger coaches, diesel electric locomotives, dredger and ancillary vessels, construction of railways bridges and railway lines, among others.
Some of the projects that are nearing completion are the Bhairab and Titas railway bridges in that country.
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