Government Awaits $550 Million Chinese Loan to Revive Teesta Project

The Government of Bangladesh is preparing to revive the long-stalled Teesta River Comprehensive Management and Restoration Project (TRCMRP). The project, which requires $747.25 million, is expected to restore 170.87 square kilometers of land in its first phase. Most of the funding – about $550.62 million – will come from a Chinese loan. If implemented, the project will transform the Teesta basin by 2029, introducing modern agriculture, industrial parks, housing areas, and a solar power plant.

New Push to Restart the Teesta Project

After being stuck for years, Bangladesh and China have reopened talks on the Teesta restoration project. The goal is to begin work by January next year and complete the first phase within four years.

The teesta project, originally planned in 2016, was delayed due to changing geopolitical situations. Now, during the interim government period, both countries have agreed to move forward.

Project Cost and Funding

The total cost of the first phase is estimated at $747.25 million. Out of this, around $550.62 million is expected to come from a Chinese loan.

The revised project proposal has already been submitted to the Chinese Embassy in Dhaka and will soon be sent to Beijing for final approval.

What the Project Will Do

The TRCMRP focuses mainly on dredging the Teesta River and restoring land lost to erosion over the decades. In the first phase, 102 kilometers of the river will be dredged.

According to the revised proposal, the recovered land will be used for:

Modern urban development (6.82 sq km)
Large industrial parks (72.93 sq km)
Advanced agriculture (54.67 sq km)
Resettlement of displaced families (36.45 sq km)

A solar power plant will also be built to promote renewable energy.

Officials believe this combination of urbanization, industrialization, agriculture, and resettlement will turn the Teesta basin, especially Rangpur region, into a new economic hub of northern Bangladesh.

“Conditional policy approval has been given to the proposal, and some cost components have been asked to be rationalized,” said Planning Advisor Wahiduddin Mahmud.

The Larger Vision for Teesta

In total, the teesta project aims to recover 400 sq km of land, but the first phase will focus on 170.87 sq km.

The restored land will be divided into four key sectors:

Urban Complexes – Residential areas, commercial centers, and civic facilities.
Industrial Parks – Including a solar power plant for renewable energy.
Agricultural Land – Improved farming methods to boost food production.
Resettlement Areas – Housing for people displaced by river erosion.

Why the Project is Needed

The Teesta is Bangladesh’s fourth largest transboundary river, stretching 315 km, of which 113 km flow inside Bangladesh. The river suffers from:

Severe erosion
Flood risks due to lack of protective measures
Loss of land, crops, and homes every year

Currently, existing embankments cannot be maintained properly due to lack of funds, leaving thousands of families vulnerable to disasters.

Engineering Works Planned

The first phase will include:

Repairing 79.6 km of existing embankments
Building 124.2 km of new embankments
Repairing 15 existing groynes and adding 50 new ones
Strengthening riverbanks and protecting infrastructure

These measures will safeguard land, houses, schools, markets, offices, and public facilities along the Teesta.

Additionally, at least 30% of non-technical jobs created under the project will be reserved for the poor, women, and persons with disabilities/autism.