Foreign minister Hasan Mahmud said on Sunday that Bangladesh would have to consider India鈥檚 proposal to implement the Teesta development project first since it was a common river between the two countries.
Addressing a press conference ahead of prime minister Sheikh Hasina鈥檚 four-day visit to China, scheduled from July 8 to July 11, he said that they had another proposal from China for the same project on the trans-boundary river inside Bangladesh.
鈥楾he Teesta is a joint river between the two countries. India has given us a proposal for the Teesta project in Bangladesh, and they will send a technical team to work jointly with us. So naturally, we will have to consider India鈥檚 proposal first, as we have another proposal from China for the same project,鈥� Hasan Mahmud told reporters, responding to a question.
He said that prime minister Sheikh Hasina would leave Dhaka for Beijing on Monday on a state visit at the invitation of China鈥檚 Premier of the State Council, Li Qiang.聽
He, however, said that no treaties but 20 to 22 memorandums of understanding on cooperation in various areas, including the economic and banking sectors, infrastructure development, trade and investment, and the digital economy, were likely to be signed during the PM鈥檚 visit to China.聽
Asked whether the Teesta project issue would be discussed during the bilateral meeting with her Chinese counterpart in Beijing, the minister said that it might be discussed if the Chinese side raised the issue.
Addressing a press conference on her India visit from June 21 to 22, Sheikh Hasina said in Dhaka on June 25 that it would be easy for Bangladesh if the Teesta restoration project received support from India.
Beijing and New Delhi are already on a collision course after India鈥檚 latest proposal to finance the Teesta restoration and management project.
China has already offered both financial and technical support for the project after conducting a feasibility study.
During the PM鈥檚 visit, Bangladesh will seek China鈥檚 financial assistance amid pressure on its foreign currency reserves and in the repatriation of Rohingya to their homeland, Myanmar, during the bilateral talks scheduled for July 10, according to officials.聽
鈥楥hina is our big development partner. They have made huge investments in Bangladesh, and they have played a key role in our infrastructure development over the past few decades. So development and economic cooperation will get priority,鈥� said Hasan Mahmud, referring to the PM鈥檚 visit.
Bangladesh鈥檚 finance minister, foreign minister, prime minister鈥檚 private industry and investment adviser, and state ministers for commerce, energy, information and communication technology, along with a business delegation and senior officials concerned, will accompany Hasina during the visit.
Hasina will attend a bilateral meeting with Li Qiang at the Great Hall of the People in Beijing on July 10, where about 20 Memorandums of Understanding are expected to be signed in their presence, said the foreign minister.
Hasina will also hold a meeting with Chinese President Xi Jinping at the same place on the same day.
鈥楾he MoUs on cooperation in the economic and banking sector, trade and investment, digital economy, infrastructure development, assistance in disaster management, construction of the 6th and 9th Bangladesh-China friendship bridges, export of agricultural products from Bangladesh, and people-to-people connectivity are likely to be signed during the visit,鈥� he said.
Hasan, however, said that no loan agreement would be signed and no specific amount of financial assistance would be sought in the bilateral talks.
鈥楾here will be no loan deals. We will only sign MoUs on economic cooperation. Once all parameters are met, we will seek assistance in the finance and banking sectors as per our needs based on that MoU,鈥� said Hasan.
Bangladesh is currently facing a severe dollar crisis, with foreign exchange reserves dropping to $26.81 billion in June this year from $46.15 billion in December 2021, according to Bangladesh Bank data.
According to the balance of payments and international investment position manual, the country鈥檚 foreign exchange reserves were $21.78 billion at the end of June.
The reserve improved slightly in June after the International Monetary Fund released $1.152 for Bangladesh in the third tranche of a $4.7 billion loan package as much-needed economic relief for Bangladesh.
The foreign minister, however, dismissed concerns about pressure on foreign exchange reserves.
The minister said that Hasina would meet the president of the Asian Infrastructure Investment Bank, Jin Liqun, and attend a summit on trade, business, and investment opportunities between Bangladesh and China during her visit.
China is one of the largest trade partners of Bangladesh, with bilateral trade reaching $18.50 billion in the 2022鈥�23 financial year, according to the latest data from the Dhaka Chamber of Commerce, which cited the Export Promotion Bureau and Bangladesh Bank sources.
The trade balance is heavily tilted towards China, which exported products worth $17.82 billion to Bangladesh and imported products, mostly jute yarn, worth $677.36 million from Bangladesh in the financial year.
Hasina last visited Beijing in July 2019, while Chinese president Xi Jinping visited Bangladesh in October 2016.
