Bangladesh yesterday signed a $335.78 million loan agreement with China’s Export-Import Bank to expand and modernise Mongla Port, including the construction of two container terminals equipped with modern machinery.
The loan agreement, worth RMB 2.404 billion or Tk 3,592.90 crore, was signed yesterday, according to a press release issued by the Economic Relations Division (ERD) of the Ministry of Finance.
Under the project, the Mongla Port Authority will construct two container terminals, a container yard, a container delivery yard and a cargo handling yard. The port will also undergo necessary modernisation.
The Chinese government has confirmed concessional financing for the project at an interest rate of 2%, according to the agreement.
The loan will have a repayment period of 20 years, including a five-year grace period.
Alia Meher, joint secretary of the ERD, signed the agreement on behalf of the Bangladesh government, while Fengjun Tian, assistant general manager of China’s EXIM Bank, signed on behalf of the Chinese side.