The Saudi Arabia government has come forward with investment proposals of about $40 billion for funding chemical industry; setting up aviation facilities, oil refinery; telecommunication; and establishing high-speed railway in Bangladesh. Considering its significance, the government of Bangladesh has already prepared a ‘Concept Note’ outlining details of the proposed investment opportunities. Prime Minister Sheikh Hasina is expected to place the proposal to the government of Saudi Arabia during her visit.
Earlier, under the leadership of Nojibur Rahman, Principal Secretary to the Prime Minister, three high-level meetings of the executive monitoring committee have already been held. Another meeting, led by Finance Minister A H M Mustafa Kamal, was held on May 14 in view of the proposed investment. The high-speed railway link from Dhaka to Cox's Bazar and the usual rail links, from Dhaka to Payra via Barishal and to all divisional cities, will be implemented gradually with the Saudi government’s fund, sources in the Bangladesh Investment Development Authority (BIDA) said.
The high-speed rail connectivity would be the single largest investment worth $20 billion to be agreed. Besides, more funds are expected to be invested in various other projects including setting up oil refinery, aircraft repair and airport maintenance facilities, establishing 5G telecommunication, improving the stock exchange and others.
A number of deals are expected to be signed during Prime Minister Sheikh Hasina’s visit to Saudi Arabia. Executive Chairman of BIDA Kazi M Aminul Islam said that although this is Prime Minister Sheikh Hasina’s political tour, bilateral trade and investment will also get preference. “On behalf of Bangladesh, a huge investment in various projects including oil refinery development, establishing chemical plants, high-speed train link, aviation repairs, improving telecommunication will be sought,” he added.
“At present the Saudi Arabian government has $250 billion foreign investments, particularly for development of various developing countries. Hopefully, in the coming bilateral meeting between Prime Minister Sheikh Hasina and Saudi government, the investment issue will get momentum,” he continued. Setting up high speed train between Dhaka and Cox’s Bazar and Dhaka to Payra Port via Barishal will bring an expected investment of $20 billion as per the investment proposal.
Apart from this, more investment in other development projects is also likely to come in the bilateral meeting during the prime minister’s official tour to Saudi Arabia. A deal of about $7b to $15b is likely to be signed to set up an oil refinery, petrochemical complex and storage facility. Bangladesh Petroleum Corporation (BPC) and Saudi ARAMCO may sign the agreement.
Besides, investment for setting up an aircraft repair and maintenance facility in Lalmonirhat worth of $1 billion is likely to be inked between the two countries, according to the project proposal. Saudi Arabia's lone aircraft repair and maintenance company, Al Salam Aerospace is jointly owned by its government and the Boeing. The country has already expressed its interest for developing the facility in Lalmonirhat.
The facility will be jointly developed by the air forces of the two countries, sources said. To introduce 5G services in the country, the government is expected to seek fund from the Saudi government to invest in the state-owned telecommunications company Teletalk as its strategic partner for developing the services in the country. According to the project proposal, around $1.2b will be needed to upgrade Teletalk.
A urea-ammonia factory will also be set up in the northwest of Bangladesh at a cost of $2-$3 billion with the Saudi investment. Under a joint venture platform, both countries are likely to set up a hydropower plant in Nepal for exporting cheap electricity to Bangladesh at a cost of $ 3.5 billion. Authority concerned is hoping that the investment will come by next year.
