This is the first investment MoU Bangladesh Investment Development Authority (BIDA) has signed since it came into being last year following the merger of the Privatisation Commission and the Board of Investment.
BIDA Director Touhidur Rahman and China Building Materials Federation Director Ding Lizhong signed the MoU titled ‘Cooperation Proposal for China-Bangladesh Building Material Upgrade Project and the Development of Industrial Park’ at the BIDA office on Wednesday.
BIDA Executive Director Kazi M Aminul Islam witnessed the signing.
This would be the first foreign investment in the construction materials sector in Bangladesh as well, BIDA Director Rahman told bdnews24.com.
“The MoU is just the beginning,” he said.
Over 6,600 Chinese construction materials companies are the members of this Chinese Federation that coordinates outward investments.
BIDA, earlier in January, announced major reforms in several sectors as it tries to woo in both local and international investments by doing better in the World Bank’s ‘ease of doing’ business ranking.
The new executive chairman set an ambitious goal of improving Bangladesh ranking in the index to below 100 from the current 176 in the next five years.
China is heavily investing in Bangladesh’s infrastructure development sector in what analysts say a race with India and Japan for influence.
In a latest development, US giant Chevron Corp announced that it is selling its three Bangladesh gas fields, worth an estimated $2 billion, to a Chinese consortium.
Once completed, the deal would mark China's first major energy investment in Bangladesh.