The Bangladesh government has signed a loan deal of US$109.78 million, €29.42 million and ¥132.49 million with the Asian Infrastructure Investment Bank (AIIB) to improve power transmission infrastructure.
Mirana Mahrukh, additional secretary to the Economic Relations Division, and Rajat Misra, acting vice-president for Investment Clients Region-I and Financial Institutions and Funds, Global (VP IC1), signed the loan deal on Thursday on behalf of their respective sides, according to an ERD release.
The loans will be utilised in the “Southern Chattogram and Kaliakoir Transmission Infrastructure Development Project.”
A project agreement was also signed by SM Zafrul Hasan, chief engineer (additional charge), Power Grid Bangladesh PLC, the project implementing agency.
The main objective of the project is to improve the reliability and capacity of the power transmission network in the Southern Chattogram and Kaliakoir regions of Bangladesh.
The loan will be received in standard terms and conditions of the AlIB. The maturity period of the loan is 32 years including seven years grace period.
The interest rate for the US dollar loan is SOFR + variable spread, while that of the Euro loan will take into account six-month EURIBOR + variable spread and RMB loan will bear an interest rate of three-month SHIBOR + variable spread.
Besides, there will also be 0.25 percent one time front end fee on the loan amount, while the loan has a commitment fee of 0.25 percent on the undisbursed amount.
