Bangladesh is all set to receive a new line of credit from China for the purchase of four ocean-going vessels, although it plans to scale it down due to rising costs.
Officials initially planned to purchase six ships, but the high exchange rate of the US dollar and increased manufacturing costs prompted them to revise the project.
During the two-and-a-half-year negotiation period, the cost of the ships increased by nearly 50 percent, leaving the previously estimated budget sufficient for the acquisition of only four ships.
China is providing a supplier credit of US$ 235 million to facilitate the procurement plan. Bangladesh is expected to sign the commercial credit agreement by September this year.