Bangladesh is set to receive $24.45 billion in bilateral assistance from China for 34 projects and programmes, as the two countries look to take their economic ties to a new height.

This is the largest bilateral financial assistance for Bangladesh since independence, and it is aimed at helping the country further develop its infrastructure. 

The two sides yesterday signed a Memorandum of Understanding on strengthening investment and production capacity cooperation.

The MoU includes a list of 28 projects for which Dhaka would get $21.5 billion from Beijing in financial assistance, according to Bangladesh's Economic Relations Division (ERD).

However, neither side gave any details about the MoUs, framework agreements and loan agreements signed yesterday.

Foreign Secretary Md Shahidul Haque told journalists that 27 agreements and MoUs were inked between the two countries.  

Last night, the two sides issued a joint statement, which didn't contain any details of the agreements or financing.

Seeking anonymity, an ERD official said the MoU on strengthening investment and production capacity cooperation includes a list of 28 projects but it doesn't mention the amount of Chinese funds.

Apart from the MoU, the two sides inked two loan agreements involving $464 million, and another loan deal under which China will provide Bangladesh $1.9 billion for a coal-fired power plant near Payra port in Patuakhali.

Besides, Beijing will give $583 million in financial assistance under three cooperation programmes.

According to the draft MoU, more projects would be included in the list upon consultations between the two sides.

Some of the projects were already approved by the Executive Committee of the National Economic Council and the Cabinet Committee on Economic Affairs.

The draft MoU says both sides would encourage organisations and enterprises of the two countries to cooperate in the fields of infrastructure construction, energy and power, transportation, communication and establishment of economic and industrial zones and other fields.

The MoU said there would be five cooperation approaches. These are: Investment, both direct and indirect; infrastructure construction and operation, planning, design, supply, construction, operation and technical cooperation; construction of economic and industrial zone, scientific park, process zone, development zones and special economic zones; technology communication and transfer; personal  exchange and training; and labour service cooperation.

If needed, the two sides would jointly formulate medium and long-term development plans on investment and capacity cooperation, and adjust the list of the key projects mentioned in the MoU.

As per the MoU, in case of projects supported by Chinese concessional funds, Bangladesh would select Chinese enterprises for their implementation in line with the country's existing laws and China's relevant policies.

Bangladesh's ERD and China's Department of Outward Investment and Economic Cooperation would work together to ensure proper implementation of the commitments. And if necessary, they would hold meetings from time to time and solve the problems.

The ERD official said the tenure of the MoU would be two years, and it would be automatically renewed for two more years unless any of the two sides writes to the other for terminating it six months prior to its expiry date.

The tenure of the MoU may be extended further if both the sides want so.

The two countries also signed framework and loan agreements on two more projects that involve purchase of six ships from China with a loan of $184 million and setting up of Dasherkandi Water Treatment Plant with a loan of $280 million. 

The Dasherkandi project would treat water from the Balu river for Hatirjheel and adjacent areas. 

Besides, China will provide $1.9 billion for setting up a 1,320-megawatt coal-based power plant near Payra port. The deal is the culmination of an MoU signed during Prime Minister Sheikh Hasina's visit to China in 2014. The Bangladesh authorities are acquiring land to set up the plant.

The two sides also signed three cooperation agreements.

As per one of the agreements, Bangladesh would receive $83 million in grants for “The Project of Disaster Emergency Operation Centre and Information Platform”.

The agreement involves purchase of some 1,000 motorbikes, which would be able to move quickly in narrow roads of cities, allowing fire-fighters to carry out their operation swiftly.  

According to the second cooperation agreement, the Chinese government would also provide $500 million from 2016 to 2020 for special assistance projects aimed at disaster prevention and reduction, said an ERD official.

The funds would be used to construct emergency operation centres and emergency shelters, and train government officials, technicians and members of communities.

The third cooperation agreement is aimed at carrying out feasibility study to set up three bridges with Chinese financing.

Since the establishment of diplomatic ties in 1975, China has provided financing to set up eight bridges in Bangladesh.

Economic relations between the two countries deepened in recent years.

China is currently Bangladesh's largest trading partner, while Bangladesh is China's third largest trading partner in South Asia, according to Chinese government data.

Bangladesh is also China's third largest project contract market in South Asia.

Two-way trade between the two countries reached $14.7 billion in 2015, up 17 percent year-on-year.