Bangladesh is moving ahead with plans to implement the Teesta River Comprehensive Management and Restoration Project with Chinese assistance, seeking $550 million in loans from Beijing.

Chinese Ambassador to Bangladesh Yao Wen conveyed Beijing’s strong interest in the project during a one-hour meeting with Foreign Secretary Asad Alam Siam at the Ministry of Foreign Affairs on Monday.

Sources confirmed that China responded positively to Dhaka’s loan request, signaling readiness to engage in the ambitious river project.

As part of the process, a Chinese technical expert team will visit Bangladesh later this year to conduct feasibility assessments. Officials noted that the project’s first phase is estimated at $750 million, of which $550 million is expected to come from Chinese financing, with the remainder covered by the Bangladesh government. Work is targeted to begin in 2026 and conclude by 2029.

The Teesta initiative has long drawn interest from both China and India. In May 2024, India’s then-Foreign Secretary Vinay Kwatra expressed New Delhi’s willingness to invest in the project during his Dhaka visit. The former Awami League government had favored Indian involvement, with then-Prime Minister Sheikh Hasina stating that she preferred India to take the lead despite China’s readiness.

Discussions on Monday also covered follow-ups from Chief Adviser Prof Muhammad Yunus’s recent visit to China, including hospital construction and other Chinese-funded projects in Bangladesh. Ambassador Yao further briefed on President Xi Jinping’s Global Governance Initiative (GGI), to which Bangladesh has been invited. Since the July uprising, Chinese investments in Bangladesh have exceeded $800 million, making Beijing the largest contributor during the period, the envoy added.

Foreign ministry insiders said Dhaka is strategically balancing its options, noting that several Bangladeshi rivers originate in China where multiple dams have been built. Involving Beijing in the Teesta project could create leverage for future water-flow negotiations.