China has primarily agreed to invest in a nearly Tk 10,000 crore project to build modern housing for residents of Korail, Sat Tola and Bhasantek slums, said State Minister for LGRD and Cooperatives Mir Shahe Alam on Thursay.
Chinese Ambassador to Bangladesh Yao Wen gave the assurance during a courtesy meeting with newly appointed LGRD and Cooperatives Minister Dr Abdul Moyeen Khan at the Secretariat, he told reporters after the meeting.
“They have said that even if they cannot invest the entire amount at once, they will invest here in phases on a priority basis,” Shahe Alam said.
He said the Local Government Division submitted a proposal to China through the Economic Relations Division (ERD) to develop modern housing in the three slum areas.
“The housing will be modern and they will be able to live there free of rent,” he said.
During the meeting, the two sides also discussed increasing Chinese investment in waste-to-energy projects, sewerage systems and solar power generation.
A Chinese company is working on a waste-to-energy project at the Aminbazar landfill and once operational, the project is expected to generate 42 megawatts of electricity from waste and supply it to the national grid.
The target is to start supplying the electricity to the national grid within the next 18 months, the state minister said.
A formal tripartite agreement for the project is expected to be signed in Beijing on Sept 2.
He said agreements have already been reached among the relevant parties, while the final financing agreement will be signed between the investing bank, company and relevant Bangladeshi parties.
Bangladesh has also sought Chinese assistance to fully operationalise the Dasherkandi Sewage Treatment Plant project.
Currently, about 30 percent of the sewerage connections are operational, while the remaining 70 percent are yet to be completed.
A project proposal worth around Tk 1,000 crore has been submitted to the Planning Commission to connect Gulshan, Baridhara and Banani areas to the system.
“If they can invest, the pressure on our state coffers will be reduced at this moment. We will not need the Tk 1,000 crore,” Mir Shahe Alam said, adding that China has also agreed to work on the matter.
The meeting also discussed Chinese cooperation in solar power generation.
There are plans to install solar panels on the roofs of government institutions, including union parishad and upazila parishad offices, municipalities, city corporations and rural markets.
No specific investment amount was mentioned for the solar power initiative.
The state minister said Chinese banks and businesses would invest in the sector as required.
Shahe Alam said PowerChina was requested to take steps to start work on the project quickly. The landfill waste could potentially generate around 40 to 50 megawatts of electricity daily for supply to the national grid, he added.