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[behuge] 05/7/2019 10:37

Or maybe not ....

[baxtea1] 05/7/2019 10:34

Some chunky sells today. James cashing in his options maybe?

[behuge] 05/7/2019 10:04

Who cares about the daily price? Not me for sure. What i care is will the project be done or not? It will IMO

[behuge] 05/7/2019 09:55

Ramping Or deramping that’s the question.....

[behuge] 05/7/2019 09:19

Gcm news this month

[behuge] 04/7/2019 17:49

GCM the big mammoth coming

[jayviper] 04/7/2019 16:52

We live in hope mate..fingers crossed we get some news soon. Even a little spike to clear my overdraft would do for now ha ha ha

[behuge] 04/7/2019 16:52

PM’s China Visit: $2.37b loan deals likely for power sector

File photo of Prime Minister Sheikh Hasina.
Jagaran Chakma
Dhaka will sign two agreements with Beijing to borrow $2.37 billion for two power projects during Prime Minister Sheikh Hasina’s four-day China visit from July 1, finance ministry officials said yesterday.

Of the loan amount, $1.4 billion will be for expanding and strengthening the power supply network under Dhaka Power Distribution Company (DPDC).

The rest $970.02 million will be spent for strengthening the power grid network under the Power Grid Company of Bangladesh (PGCB).

Both the loans will be non-concessional and will carry a repayment period of 20 years with a grace period of five years.

The PM recently gave her consent to taking $1.02 billion of the $1.4 billion loan for the DPDC project at 3 percent interest. China will provide the rest $381.16 million at 2 percent interest.


The interest rate on the loan for the PGCB project will be 2 percent.

Officials at the Economic Relations Division (ERD) said that in the past, the country never took any non-concessional loans at an interest rate of above 2.5 percent from bilateral and multilateral development partners.

Bangladesh will have to pay an additional interest of $104.66 million during its repayment period because of the high interest rate of 3 percent, they mentioned.

The Exim Bank of China will provide $1.02 billion of the $1.4 billion loan for the DPDC project as preferential buyer’s credit (PBC).

According to a summary of the loan proposal submitted to the PM, the government has to pay 0.25 percent in commitment fee and 0.25 percent in management fee.

The management fee will have to be paid within 30 days of loan effectiveness no matter whether the loan is disbursed or not.

This is a normal practice in case of Chinese loans, said ERD officials.

In 2017, Bangladesh sought $5.03 billion from the Exim Bank of China for the Padma Bridge Rail Link project and the two power projects under the DPDC and PGCB, an ERD official told The Daily Star, seeking anonymity.

China agreed to provide funds for the Padma Rail Link project at 2 percent interest. But it said the rate would be 4.5 percent for the two power projects as the funds would have to be mobilised from the market, the official mentioned.

Later, the interest rate for the PBC portion of the loan for the DPDC project was set at 3 percent, and the ERD agreed to the rate, the official added.

Former secretary Arastoo Khan, who served the ERD for around a decade, said Chinese loans are always non-concessional, and they do not like to take risk while doing business.

He further said the World Bank, the Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA) offer concessional loans and their interest rates are very low.

According to him, PBC always bears high interest but the interest rate never goes above 2.5 percent.

Arastoo said the lenders have increased the interest rates as Bangladesh has become a lower middle-income country. Now, it has to take non-concessional loans.

Another former secretary, Mohammad-Asif-uz-Zaman, who also served the ERD, said loans with such a high interest rate can create a slight risk for the government in future.

ERD officials said following Bangladesh’s graduation to a lower middle-income country, major development partners started readjusting their terms and conditions by either raising the interest rate or by shortening the maturity and grace period.

The WB has already increased its interest rate to 2 percent from the previous 0.75 percent (in addition to 0.25 percent commitment fee and 0.25 percent front-end fee) while JICA raised its interest rate to 1 percent from 0.014 percent.

Similar interest rates have been imposed by the ADB, the second largest multi-lateral development partner of Bangladesh.

Seeking anonymity, a finance ministry official said Bangladesh wanted to borrow funds for the two power projects at 2 percent interest like it did in case of five other China-funded projects, deals on which were signed in October 2016.

The interest rate on the loans for the five projects was 2 percent for both grant and PBC portions, added the official.

[behuge] 04/7/2019 16:45

What nothing new andy five deals signed for power. GCM proposal will follow shortly now

[andyandy4] 04/7/2019 16:42

..nothing new

[behuge] 04/7/2019 16:15

GCM proposal will come shortly. Place your bets before it’s too late

The agreements followed bilateral talks between Prime Minister Sheikh Hasina and her Chinese counterpart Li Keqiang at the Great Hall of People on Thursday.

Dhaka Power Distribution Company or DPDC will receive $1.4 billion in loans under the agreements.

The Power Grid Company of Bangladesh or PGCB will get over $280 million and Bangladesh government will get over $70 million under the framework agreements, according to officials of the Economic Relations Division.

FIVE DEALS

# Framework agreement of expansion and strengthening of power system network under DPDC

# Government concessional loan agreement of expansion and strengthening of power system network under DPDC area project

# Preferential buyer's credit loan agreement of expansion and strengthening of power system network under DPDC area project

# Framework agreement of power grid network strengthening project under PGCB project

# Agreement on economic and technical cooperation between Bangladesh and China

On the deals, DPDC Executive Director (Engineering) Md Ramiz Uddin Sarker told bdnews24.com the loan was being taken to implement a DPDC development project worth $1.65 billion.

Of the amount, Bangladesh will provide $247 million and China $381 million. And Exim Bank of China will lend $1.02 billion.

Under the five-year project, 14 grid substations with 132/33 kV voltages each and 40 sub-stations with 33/11 kV voltages each will be built in Dhaka and Narayanganj.

Besides, some high-rise buildings will be constructed for the DPDC, among which there will be a twin tower in Hatirpool area and a 20-storey building in Hatirjheel.

The PGCB will implement 14 projects, including expansion of the transmission line, with the loans, according to officials.

Apart from the five agreements, the two memoranda of understanding have been signed between the two nations on the establishment of investment cooperative working group and hydrological information sharing of Yalu Zhangbo and Brahmaputra River, and cultural exchange and tourism programme.

Under another agreement, China will provide the forcibly displaced Rohingyas from Myanmar with 2,5000 tonnes of rice.

[behuge] 04/7/2019 15:59

GCM will be massive. Everyone has been warned. Buy now before it’s too late

[jayviper] 04/7/2019 15:47

I know him and a few others where saying June would be a big month so.....

[jayviper] 04/7/2019 15:01

All very quiet over on LSE either Bees has been booted or he has finally moved on to get and dupe some people over another investment