Dhaka, Beijing sign instrument for procurement of 4 vessels

The governments of Bangladesh and China signed a framework agreement on Sunday, February 8, worth RMB 1.67 billion (equivalent to about Tk 2486.31 cr) for the procurement of four new vessels for the Bangladesh Shipping Corporation (BSC).

Secretary of the Economic Relations Division (ERD) Md Shahriar Kader Siddique signed the framework agreement on behalf of the Bangladesh government, while Chinese Ambassador to Bangladesh Yao Wen signed on behalf of the Chinese government.

Under the framework agreement, a loan agreement between the ERD and the Export-Import Bank of China will be signed soon, said a handout.

As part of a project, BSC will procure four new vessels including two crude oil tankers, one mother tanker and one mother bunker carrier.

The new vessels are expected to significantly enhance BSC’s capacity to transport crude oil and essential products, contributing in the long run to strengthening the country’s energy security and accelerating national development, it said.

Under the signed framework agreement, the Chinese government has ensured concessional financing for the project at an interest rate of 2 percent.

The loan will have a repayment period of 20 years, including a five-year grace period.

Source: UNB