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Bangladesh to sign deals with India for $5 billion loan, electricity

Bangladesh's Prime Minister Sheikh Hasina enters the General Assembly Hall to speak during the 71st United Nations General Assembly in Manhattan, New York, U.S. September 21, 2016. REUTERS/Eduardo Munoz/Files

DHAKA (Reuters) - Bangladesh will sign up to 35 agreements and memoranda of understanding during Prime Minister Sheikh Hasina’s state visit to India, Foreign Minister Abul Hasan Mahmood Ali said on Tuesday.

The prime minister is due to leave for a four-day visit on Friday.

A senior energy official said Bangladesh would sign a number of agreements to import electricity. At present Bangladesh produces up to 8,500 MW of electricity and demand rises more than eight percent annually.

“The deals include among others expansion of bilateral trade and investments, cooperation in energy sector, availing credit, distribution and management of water of common river, safer guard of border, ensuring security, prevention of illegal trade of drugs and human trafficking,” the foreign minister told a news conference.

India is expected to announce a fresh credit worth about $5 billion for infrastructure development, like railways, roads and waterways, one official said.

“That will be a concessionary credit, as a symbol of excellent relations between the two countries,” he said.

Reporting By Serajul Quadir; Editing by Stephen Powell