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The Chinese and Bangladeshi governments signed in Dhaka yesterday a general loan agreement for the project of Installation of Digital Telephone Exchanges in Metropolitan Cities, Important District Headquarters and Upazila Growth Centers in Bangladesh.

 

Chai Xi, Chinese ambassador to Bangladesh, and Ismail Zabihullah, secretary of Economic Relations Division under Finance Ministry of Bangladesh, signed the agreement on behalf of their respective governments.

 

Under the general loan agreement, the Export and Import Bank of China will provide buyers loan of US$211 million for implementing the project. The project is expected to finish in June 2010. Bangladesh Telegraph & Telephone Board under Ministry of Posts and Telecommunication will execute the project.

 

The objective of the project is to meet the potential demand for telecommunication services and enhance tele-density and tele-access in Bangladesh.

 

At the signing ceremony, Ismail thanked the Chinese government for its long-term assistance to Bangladesh and for its help in building the digital telephone exchange project for the country.

 

Chai Xi said at the same function the project is to promote mutual development for the two countries. He said it is a win-win project.

 

Bangladeshi Prime Minister Khaleda Zia first proposed the project to Chinese Premier Wen Jiabao in Shanghai in May 2004. During Wen's visit to Bangladesh in April 2005, the two governments signed an Understanding of Memorandum for this project, involving US$400 million.

 

The agreement signed yesterday is for the first phase of the project. If the project goes smoothly, the Bangladeshi government will sign the second phase of the project that will involve US$189 million.

 

(Xinhua News Agency September 29, 2006)