Bangladesh has signed a loan agreement worth $335.78 million with the Export-Import Bank of China to expand and modernise Mongla Port, the country’s second-largest seaport.
The agreement, valued at RMB 2.404 billion or about Tk 3,592.90 crore, was signed on 12 October, according to the Economic Relations Division (ERD) of the Ministry of Finance. ERD Joint Secretary Alia Meher signed for Bangladesh, while Fengjun Tian, assistant general manager of China Exim Bank, signed for the lender.
What the money will build
Under the project, the Mongla Port Authority will build two container terminals, a container yard, a container delivery yard and a cargo handling yard. The new terminals will be fitted with modern cargo-handling equipment as part of a wider upgrade of the port.
Loan terms
The Chinese government has confirmed concessional financing at 2 percent interest. The loan is repayable over 20 years, including a five-year grace period.
Why it matters
Chattogram still handles the bulk of Bangladesh’s seaborne trade. Expanding container capacity at Mongla is seen as key to easing pressure on Chattogram and serving importers and exporters in the country’s south-west, especially since the Padma Bridge shortened the road link between Mongla and Dhaka.
Source: The Daily Star, ERD press release.
Photo: Nahian shuvo / Wikimedia Commons, CC BY-SA 4.0
