China offers preferential loan to renovate KPM      

China has offered preferential loan to renovate the Karnaphuli Paper Mills (KPM) in Chittagong to enhance its production capacity to 30,000 metric tonnes a year.

In a letter to the Industries Secretary on December 5, 2014, DGM of the China National Machinery Import and Export Corporation (CMC) Zhao Zhengxian also requested the Bangladesh government to take necessary steps for signing an MoU between CMC and Bangladesh Chemical Industries Corporation (BCIC) to facilitate the works.

kpmSources at the Economic Relations Division (ERD) said an international tender for Balancing, Modernisation, Rehabilitation and Expansion (BMRE) of the Karnaphuli Paper Mills (KPM), established in 1953, was invited during the 1996-2001 AL government, and the CMC was awarded the contract through an international competitive bidding process.

The sources said an agreement was then signed between the CMC and the Finance Ministry for implementing the project under suppliers’ credit and a work order was given to CMC on May 31, 2001. But the BNP-Jamaat alliance government, after assuming office, shelved the US$ 87-million BMRE project without assigning any reason.

The Awami League government, after assuming office for the third time, reopened the project and it was discussed at a meeting held on March 23, 2014 with the BCIC chairman in the chair.

Later, a CMC delegation visited the KPM on March 25, 2014 and put forwarded a preliminary ideas on the BMRE of KPM on April 7, 2014.

CMC DGM Zhao Zhengxian in the letter said following discussions with the KPM officials they have made two proposals—one is installation or construction of a new paper mill with production capacity of 48,000 metric tonnes per year and another is renovation of the existing paper mills with production capacity of 37,500 metric tonnes.

“Under the circumstances, we’re now submitting herewith energy efficient, new technology, environment friendly and financially competitive above mentioned proposal renovation of the existing paper mill with increased capacity of 30,000 metric tonnes per year for your kind consideration and approval,” added the official.

Requesting the Industries Secretary for taking positive steps in this regard, the CMC DGM also noted that they would be able to help apply Chinese government preferential loan to implement KPM’s BMRE.

CMC has been operating its business in Bangladesh since 1988 and has accumulated its rich experience in manifold and managing complicated projects on EPC basis in Bangladesh.

CMC has implemented Barapukuria Coal Mine Project, Barapukuria 2×125 MW coal fired power plant project, Sirajganj 150 MW gas turbine (dual fuel) power station (phase-1) and ongoing conversion of the single cycle GT unit 225 MW combined cycle power station (phase-II) on the same premises.

  • UNB