Bangladesh Cuts Cost of China-Funded BRI Railway Projects; Beijing Withdraws Funding
China has withdrawn its BRI (Belt and Road Initiative) funding for railway projects in Bangladesh, after the recipient country proposed significant cuts in costs. This happened amidst increasing tension between the two countries. According to media reports, the government of Prime Minister Sheikh Hasina found that Chinese companies were charging three times the normal price […]
China has withdrawn its BRI (Belt and Road Initiative) funding for railway projects in Bangladesh, after the recipient country proposed significant cuts in costs. This happened amidst increasing tension between the two countries. According to media reports, the government of Prime Minister Sheikh Hasina found that Chinese companies were charging three times the normal price for construction, and slashed $5.72 billion from the China-funded Akhaura-Sylhet and Joydebpur-Ishwardi railway projects that are part of the BRI agreement signed between the two countries. The main conditions of the contract with China required that the contractors of the railway construction be selected by the Chinese government, and the government of Bangladesh pay for land acquisition, resettlement of locals, and worker wages. The Chinese government pays construction costs, which account for about 80 percent to 85 percent of the total cost of the projects. Chinese companies were selected for the projects, but after the ...
