Bangladesh is expected to sign a US$400 million loan agreement with China for the development and modernisation of Mongla Port during Prime Minister Tarique Rahman’s four-day visit to Beijing, which begins on Tuesday, according to government officials.

Officials at the Ministry of Foreign Affairs (MoFA) said the visit is also likely to see the signing of a grant agreement for the construction of a 1,000-bed hospital in Nilphamari district with Chinese financial assistance.

Besides the financing agreements, Bangladesh and China are expected to sign around 10 memorandums of understanding (MoUs) in areas including green energy, electric vehicles, solar power, media cooperation, training programmes and the development of the Chinese Economic and Industrial Zone in Chittagong.

A senior MoFA official said Bangladesh may seek nearly US$6 billion in Chinese funding for a range of projects and programmes during the visit.

The official noted that Bangladesh’s development priorities have changed significantly since the two countries identified 27 priority projects during Chinese President Xi Jinping’s visit to Dhaka in 2016. As a result, the list has been updated to reflect the country’s current needs.

The original 2016 agreement involved a US$20 billion Chinese assistance package for infrastructure, energy and communication projects.

The Mongla Port Development and Modernisation Project, approved by the previous interim government, has an estimated cost of Tk 40.68 billion (about US$400 million), with China having assured financing support for the initiative.

In addition, Bangladesh is implementing a Tk 15.38 billion project for dredging the Pashur Channel to ensure navigability of the port.

The proposed Nilphamari Hospital project, with an estimated cost of Tk 24.59 billion, is expected to receive Tk 22.80 billion in grant assistance from China, while the Bangladesh government will contribute Tk 1.79 billion.

During the visit, China may also propose the introduction of Panda Bonds and the use of its Cross-Border Interbank Payment System (CIPS) as part of efforts to promote the international use of the yuan.

Government officials, however, declined to elaborate on Bangladesh’s position regarding these financial proposals.