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China for immediate BMRE of Karnaphuli Paper Mills

UNB, Dhaka
China will seek a clear commitment from Bangladesh government on the implementation of US$ 87 million BMRE project of Karnaphuli Paper Mills (KPM) during Prime Minister Khaleda Zia's visit to Bejing.
The prime minister is expected to visit China from August 17.
"It is our fervent hope that her visit will take our bilateral relations to newer heights and impart the required momentum to the implementation process of the above project," Chinese Ambassador to Bangladesh Chai Xi said in a letter to Industries Minister Matiur Rahman Nizami.
In the letter dated July 17, he said delay in the implementation of the Balancing, Modernisation, Rehabilitation and Expansion (BMRE) project of KPM might create unnecessary misunderstanding between the two countries.
"To further delay the implemen-
tation of the project at this stage will mean the loss of an opportunity to bolster the bilateral co-operation between China and Bangladesh and may even contribute to unnecessary misunderstanding between our two countries," Xi said.
The ambassador said early implementation will have abiding salutary implications on bilateral relations and contribute to further consolidating the relationship and co-operation between the two countries.
Sources said the Chinese government is putting pressure on Bangladesh government to execute the BMRE since the signing of the agreement during the Awami League rule in 2001.
Earlier, Xi wrote a letter to the principal secretary to the prime minister requesting commencement of the work of BMRE project of KPM before Chinese Premier Wen Jiabao's visit to Dhaka last April.
Economic Relations Division (ERD) sources said an international
tender for BMRE of the KPM, established in 1953, was invited during the previous government. China National Machinery Import and Export Corporation (CMC) was awarded the contract through competitive bidding, they said.
The sources said an agreement was signed between the CMC and the finance ministry for implementation of the project under suppliers' credit. According to the agreement, work order was given to the CMC on May 31, 2001. After assuming the office, the alliance government suspended the US$ 87 million BMRE project, they said.
Meanwhile, a senior official of the industries ministry said a quarter is trying to make the KPM sick with a view to selling out the mill.
BCIC officials said the implementation of the BMRE project will not only turn the mill into a profitable one, but will also meet the demand for papers in local market to a great extent.