In a significant and strategic decision, Prime Minister Sheikh Hasina has expressed her preference for India to implement the Teesta River project, a move that underscores her commitment to Bangladeshs long-term prosperity and regional stability. This decision comes amidst competing offers from China and India, both eager to undertake the project. By choosing India, Hasina has made a wise and forward-thinking decision that promises to benefit Bangladesh while avoiding the pitfalls associated with Chinese investments.
The Teesta River project, estimated at a cost of $1 billion, is vital for the conservation and development of the Teesta River, which plays a crucial role in Bangladeshs agriculture and water management. During her recent visit to New Delhi, Hasina discussed the project with Indian Prime Minister Narendra Modi, who assured that an Indian technical team would soon visit Dhaka to commence talks on the project. This collaboration marks a significant step in enhancing the bilateral relationship between the two countries, focusing on mutual benefits and regional cooperation.
Choosing India over China for the Teesta project is a decision rooted in strategic foresight and economic prudence. India, being the upper riparian state of the Teesta River, has a better understanding of the rivers dynamics and the technical know-how to implement the project efficiently. Moreover, Indias approach to investment and development is fundamentally different from Chinas, which has been notorious for its debt-trap diplomacy.
Chinese investments in Bangladesh have surged since the country joined the Belt and Road Initiative (BRI) in 2016. While these investments initially seem attractive, they come with strings attached. Chinese loans are often accompanied by high-interest rates and short repayment periods, placing enormous financial burdens on the recipient countries. For instance, Bangladeshs loans from China have an interest rate of about 2% with a repayment period of 10-15 years, compared to the 30-40 years typically offered by multilateral lenders like the World Bank. This structure results in hefty instalment payments that strain Bangladeshs economy, which is already grappling with high inflation, dwindling foreign reserves, and a significant trade deficit.
The cautionary tales of countries like Sri Lanka and Pakistan, which have found themselves ensnared in Chinas debt-trap diplomacy, serve as stark reminders. Sri Lankas Hambantota Port, handed over to China on a 99-year lease due to the countrys inability to repay Chinese loans, is a glaring example of the risks associated with Chinese investments. Similarly, Pakistans Gwadar Port and other infrastructure projects under the China-Pakistan Economic Corridor (CPEC) have led to mounting debts and economic instability.
In Bangladesh, numerous Chinese projects have faced delays and cost overruns due to sluggish loan approvals and disbursement processes. Projects like the Dhaka-Ashulia Expressway have seen significant cost inflations due to these delays. Moreover, a report from US-based AidData highlights that 59% of Chinese-backed projects in Bangladesh are grappling with ESG (Environmental, Social, and Governance) risks, with the affected project value skyrocketing from $1 billion in 2015 to over $12 billion by 2021.
Indias investment philosophy is grounded in sustainability and strategic partnership. Indias "Neighborhood First" policy prioritizes regional cooperation and development, ensuring that investments are mutually beneficial. Unlike China, India does not engage in building infrastructure around the world merely for strategic leverage. Instead, Indian investments are focused on areas that genuinely need development, ensuring that the projects are viable and beneficial for the local population.
Prime Minister Hasinas decision to favor India for the Teesta project reflects her understanding of these dynamics. She recognizes that Indian investment is not "easy money" but a strategic partnership that ensures long-term benefits for Bangladesh. By choosing India, Hasina is steering Bangladesh clear of the economic pitfalls associated with Chinese investments, safeguarding the countrys sovereignty and economic stability.
Beyond the economic considerations, Hasinas decision also has significant geopolitical implications. By choosing India, Bangladesh is reinforcing its commitment to regional stability and cooperation. The Teesta project is not just about water management; it is a symbol of the strong bilateral relationship between India and Bangladesh. This partnership is crucial for maintaining peace and stability in South Asia, especially in the face of Chinas aggressive expansionist policies.
Prime Minister Hasinas decision is a testament to her leadership and vision for Bangladesh. By prioritizing India for the Teesta project, she has made a strategic choice that promises to bring long-term benefits to the country. This move not only strengthens the bilateral relationship with India but also ensures that Bangladeshs development is sustainable and free from the economic traps associated with Chinese investments.
PM Hasinas preference for India to implement the Teesta project is a brilliant and strategic decision that aligns with Bangladeshs long-term interests. It underscores her commitment to sustainable development, regional cooperation, and economic stability. By choosing India over China, Hasina is ensuring that Bangladesh does not fall into the great game of South Asia, but instead, emerges as a strong and sovereign nation. This decision will undoubtedly benefit Bangladesh in the long run, reinforcing its position as a key player in the region and ensuring a brighter future for its people.
The writer is a former Indian Council for Cultural Relations (ICCR) scholar, holding a B.Tech in Electrical Engineering from NIT Durgapur, India
