Bangladesh has signed a $335.78 million concessional loan agreement with China to expand and modernise Mongla Port, including the construction of two container terminals and supporting cargo-handling facilities.
The loan of 2.404 billion Chinese yuan, equivalent to Tk 3,592.90 crore, was signed on October 10 between the government and the Export-Import Bank of China (China Exim Bank), according to an ERD news release.
The Chinese government is providing the financing at an annual interest rate of 2%, with a repayment period of 20 years, including a five-year grace period.
The Mongla Port Authority, under the Ministry of Shipping, will implement the project.
Alia Meher, joint secretary of the Economic Relations Division (ERD), and Fengjun Tian, assistant general manager of China Exim Bank, signed the agreement on behalf of their respective sides.
Under the project, the port will get two container terminals equipped with modern machinery, alongside a container yard, a container delivery yard and a cargo-handling yard.
The expansion is expected to strengthen the port’s cargo-handling infrastructure and support its modernisation as Bangladesh seeks to improve maritime trade facilities.