Muhith alerts officials over project proposals made by Chinese firms

Finance Minister AMA Muhith has alerted officials about the workings of Chinese companies pursuing projects in Bangladesh.

Muhith says that even though Chinese firms are owned by the state, they act like private firms by trying to ‘sell’ projects.

He was briefing the media about his recent tour of China, which launched the Asian Infrastructure Investment Bank (AIIB), seen as a rival to the US-led World Bank. 

Muhith said he was specially honoured at the programme for being a senior participant.

“They (Chinese firms) are interested in a number of projects. Even their state-owned companies are good salesmen. They bring their projects and get them passed,” he said.

He asked officials to assess whether the projects proposed by Chinese firms were relevant for Bangladesh.

“I should alert you. We will not accept many of the projects being pursued by (Chinese) agents. Because you must look at your deed servicing capacity,” he said. 

“Bangladesh has a wonderful record as far as public deeds are concerned. We can’t destroy the record we have,” he said.

“We’ll have to look at the projects on the basis of priority. In one case, a project is in the 10th position on my priority list, but a Chinese party wants it taken it to the No. 1 position,” he said.

“I am asking my colleagues to be very alert about them. Your project may be important to you, but it may not be a national priority. We have prepared a list of priority projects. There is no need to go for projects other than these,” he said.

Asked if his observations will affect Bangladesh’s ties with China, Muhith said, “No, there will be no impact. I will safeguard my interests just as they safeguard theirs.

“We should be careful while purchasing. There is the question of whom to get the technology from.

“My instruction to my colleagues is – please follow the list of priority. Discuss the issues. The discussions today bring your projects within the list of priorities three or five years later,” he said.

China has offered to finance a number of projects worth $10 billion in Bangladesh’s power, railway and infrastructure sectors.

Muhith unhappy with ERD

The finance minister has blamed the Economic Relations Division for the failure in getting AIIB membership.

Bangladesh took part in the launching ceremony as an observer.

“I am unhappy about this issue. Twenty countries took part in the launching as members. The others were observers or countries willing to get membership.

“I am unhappy because we could have become a member had our ERD been more vigilant,” he said.

Bangladesh has signed a Memorandum of Understanding for membership, Muhith said.

“But it needed ratification. The law is ready, but it was not passed in the last session. We did not realise the urgency. That was negligence,” he added.

But he spoke highly of ERD Additional Secretary Asif Uz Zaman's performance in China.

“The pleasure is that Asif Uz Zaman is one of us. He was the hero of the conference… ministers, the bank’s president- everyone was calling him. It was an honour for Bangladesh,” he said.