Explained | China, Bangladesh in talks over Teesta project

Bangladesh and China are actively advancing negotiations on the Teesta Comprehensive Management and Restoration Project, with the Bangladesh Water Developmen...

What Happened

Bangladesh and China are actively advancing negotiations on the Teesta Comprehensive Management and Restoration Project, with the Bangladesh Water Development Board (BWDB) and Chinese state-owned POWERCHINA having signed an extension to a memorandum of understanding on January 29, 2026.
Under the MoU extension, POWERCHINA is to prepare a concept paper by December 2026 and complete a feasibility study during the year, after which project finalisation is expected.
Bangladesh's Foreign Minister raised the Teesta project during a meeting with China's Foreign Minister in Beijing in May 2026, signalling formal diplomatic backing from the highest level.
The project's first phase is estimated at USD 747.25 million, of which approximately USD 550.62 million is expected to come from Chinese concessional loans — making China the dominant financier.
The project scope includes dredging 140 million cubic metres of sediment, reclaiming 171 sq km of land, repairing 110 km of embankment, constructing 124 km of new embankments, and developing 224 km of roads across 82 transportation and jetty locations.
The Teesta supports approximately 14% of Bangladesh's crop production and the livelihoods of 10 to 14 million people, making it a high-stakes agricultural and food-security issue.
India has not signed a Teesta water-sharing treaty with Bangladesh despite decades of negotiations — a failure that has directly accelerated Bangladesh's turn towards China for river management support.

Static Topic Bridges

The Teesta River: Geography and Basin Significance

The Teesta is a Himalayan river originating from the Tso Lhamo Lake in North Sikkim at an elevation of approximately 5,280 metres. It flows southward through gorges and rapids in the Sikkim Himalaya before entering West Bengal and eventually Bangladesh. The Teesta is the largest river of Sikkim and the second-largest in West Bengal after the Ganges. It is a tributary of the Brahmaputra (called the Jamuna in Bangladesh), joining it at Phulchhari Upazila.

Origin: Tso Lhamo Lake, North Sikkim (approximately 5,280 m elevation); fed by Gurudongmar Lake and glaciers of the Tso Lhamo Khangtse glacier system.
Length: 309 km total — approximately 305 km in India (Sikkim and West Bengal) and 114 km in Bangladesh; the river basin in India covers 9,855 sq km.
Basin distribution: 83% of the Teesta basin lies in India (Sikkim 72.43%, West Bengal 27.57%); 17% in Bangladesh.
Major tributaries: Rangeet River (largest; right bank), Lachung Chhu, Dik Chhu, Rani Khola (left bank), Zemu Chhu (right bank).
Economic significance in Bangladesh: Supports ~14% of national crop production; livelihoods of 10–14 million people; the river is the fourth-largest in Bangladesh.

Connection to this news: The project is designed to mitigate Bangladesh's chronic dry-season water shortage on the Teesta — caused largely by upstream flow reduction from dams inside India — through dredging, embankment, and water-storage infrastructure financed primarily by China.

The Teesta Water Dispute: History and the 2011 Impasse

The India-Bangladesh Teesta water dispute dates to the partition of 1947, when the river's catchment was divided. Bangladesh depends on the Teesta for dry-season irrigation (November–May), but upstream dam construction in India — particularly the Gajoldoba Barrage in West Bengal — has substantially reduced downstream flows, impairing over 100,000 hectares of irrigated land in Bangladesh.

1983: First temporary water-sharing arrangement — India 39%, Bangladesh 36% of Teesta waters (the balance was left unallocated).
2011: India and Bangladesh negotiated an interim arrangement — India 42.5%, Bangladesh 37.5% during the dry season — to be operative for 15 years. The deal was expected to be signed during PM Manmohan Singh's visit to Dhaka, but was blocked by West Bengal Chief Minister Mamata Banerjee, who cited concerns over West Bengal farmers' water security.
Constitutional constraint: Water is a State subject under the Indian Constitution (Entry 17, State List). Any inter-state or international water-sharing agreement requires the affected state government's concurrence, giving West Bengal an effective veto.
Since 2011: Successive Indian governments have acknowledged the dispute but been unable to override the state-level political obstacle. The treaty remains unsigned as of 2026.

Connection to this news: The persistent failure to conclude a Teesta treaty is the direct political context for Bangladesh's engagement with China. Dhaka has pursued China as an alternative partner to address the water management deficit India has been unable or unwilling to resolve unilaterally.

China's Dam-Building and Transboundary River Strategy

China is the world's largest dam-builder and controls the headwaters of many of Asia's major rivers — including the Brahmaputra (Yarlung Tsangpo), Mekong, Salween, Irrawaddy, and Indus. This geographic position gives China significant strategic leverage over downstream nations. POWERCHINA is a state-owned enterprise specialising in hydropower, dam construction, and water infrastructure, with a major global project portfolio particularly in Asia, Africa, and South America.

China has built over half the world's large dams (more than 23,000 out of approximately 45,000 globally).
Key Chinese dams on the upper Brahmaputra (Yarlung Tsangpo): Zangmu (2015, 510 MW), Jiexu, Jiacha, and the planned Great Bend mega-dam (60,000 MW — the world's largest proposed hydropower project).
POWERCHINA signed an MoU with Bangladesh's BWDB for the Teesta project in 2019; the January 2026 extension renews and advances this arrangement.
China's loan terms for large infrastructure often include sovereign guarantees and state-to-state financing, raising concerns about debt dependency — particularly for smaller economies.

Connection to this news: China's engagement with Bangladesh on the Teesta is part of a broader pattern of leveraging transboundary water infrastructure to deepen strategic ties with India's neighbours — echoing similar dynamics in Nepal, Myanmar, and Sri Lanka. India views Chinese infrastructure in Bangladesh's river system — sharing sensitive border zones — as a strategic encirclement concern.

India-Bangladesh Relations: Strategic Context

India and Bangladesh share a 4,156-km border — the longest international boundary India maintains with any country — and deep economic, cultural, and security ties. Bangladesh is one of India's largest trading partners in South Asia, and India is Bangladesh's biggest source of imports. The bilateral relationship, however, periodically faces friction over river water, trade asymmetries, border incidents, and, most recently, the political transition following the change of government in Dhaka in 2024.

India-Bangladesh border: 4,156 km (the world's fifth-longest land border); governed by the Land Boundary Agreement ratified in 2015.
Key shared rivers: Ganges (Ganga-Padma), Brahmaputra (Jamuna), Meghna, Teesta — all flow from India into Bangladesh.
Ganges water-sharing: Governed by the Farakka Treaty (1996), a 30-year treaty signed between India and Bangladesh, expiring in 2026 and currently under renegotiation.
Trade: India is Bangladesh's second-largest export market and largest import source; bilateral trade stood at approximately USD 14 billion in 2023-24.
Security cooperation: India and Bangladesh maintain joint mechanisms on anti-insurgency (particularly North-East India), border management, and disaster response.

Connection to this news: Bangladesh's engagement with China on the Teesta project signals a recalibration of its strategic alignment — using Chinese involvement as leverage in its water negotiations with India while simultaneously deepening economic and infrastructure ties with Beijing. India's inability to deliver the Teesta treaty is a direct diplomatic cost.

Key Facts & Data

Teesta river total length: approximately 309 km (305 km India, ~114 km Bangladesh).
Teesta basin in India: 9,855 sq km (Sikkim 72.43%, West Bengal 27.57%).
Teesta supports ~14% of Bangladesh's crop production; livelihoods of 10–14 million people.
MoU extension signed: January 29, 2026 — BWDB (Bangladesh) and POWERCHINA (China).
Project first phase cost: USD 747.25 million; Chinese loan component: USD 550.62 million.
Project scope: Dredge 140 million cubic metres sediment; reclaim 171 sq km land; 110 km embankment repaired; 124 km new embankments; 224 km roads; 82 jetty/transport locations.
2011 Teesta deal (not signed): India 42.5%, Bangladesh 37.5% of dry-season flows — blocked by West Bengal government.
Water is a State List subject under the Indian Constitution (Entry 17, Seventh Schedule) — state concurrence required for international water-sharing.
Farakka Treaty (1996): India-Bangladesh Ganges water-sharing, 30-year term, expiring 2026.
India-Bangladesh border: 4,156 km.