China is set to loans worth more than $24 billion to Bangladesh during President Xi Jinping's state visit on Friday.

President Xi's visit, described by Chinese media as a "milestone," will mark the first visit by any Chinese head of state to Bangladesh in three decades. The Chinese leader's trip aims to increase the country's participation in infrastructure developments during a time when India is pushing investment of its own in Bangladesh, Reuters reported.

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China plans to back about 25 projects, including a 1,320 megawatts power plant and a deep seaport, M.A. Mannan, Bangladesh junior finance minister, said.

"Xi's visit will set a new milestone. [A] record amount of loan agreements will be signed during the visit, roughly $24 million," he told Reuters.

"Our infrastructure needs are big, so we need huge loans," he added. Construction of highways and development of information technology are among the proposed projects, according to NDTV.

In 2015, Indian Prime Minister Narendra Modi announced a $2 billion credit line during a visit to Dhaka, but China is poised to go beyond that.

"I really don't think there is a zero sum game going on in Bangladesh between China and India. Bangladesh welcomes both Chinese and Indian investment," Zhao Gancheng, director of South Asia Studies at Shanghai Institute for International Studies, said.

Meanwhile, Bangladesh supported China's "One Belt, One Road" project to boost trade and transport links across Asia and into Europe. India, on the other hand, is reluctant about the plan, with concern that it is an attempt to tilt the balance in China's favor.

"Bangladesh has an enormous need for investment, and I don't think it's going to become a strategic site for strategic competition," Zhao said.

Meanwhile, earlier this year, China has planned to give a lump-sum amount of $9 billion loan to Bangladesh to upgrade its railway system, a move that is part of its $30 billion modernization plan.

In August, state-backed China Railway Group also won the $3.1 billion bid to build Bangladesh's railway network, linking capital Dkaha to Jessore.

TagsBangladesh, china, Xi Jinping, Loans, Bangladesh modernization project