China provides USD 336m loan for Mongla Port modernization

Dhaka : Bangladesh has signed a USD 335.78 million concessional loan agreement with China to expand and modernize facilities at Mongla Port, aiming to upgrade container handling capacity and improve port infrastructure. The agreement, worth 2.404 billion yuan or approximately BDT 35.93 billion, was signed on October 10, according to a press release from the Economic Relations Division (ERD). Alia Meher, joint secretary of the ERD, signed the agreement on behalf of Bangladesh, while Fengjun Tian, assistant general manager of the Export-Import Bank of China, represented the Chinese side. The project will be implemented by the Mongla Port Authority under the Ministry of Shipping. Planned infrastructure includes two container terminals equipped with modern machinery, a container yard, a container delivery yard and a cargo handling yard. Under the agreement, China will provide financing at an annual interest rate of 2 percent. The loan has a repayment period of 20 years, including a five-year grace period. The modernization initiative is expected to strengthen the port's infrastructure and improve its capacity to handle containerized cargo. The development also forms part of Bangladesh's efforts to upgrade maritime transport facilities and support trade through its seaports. Mongla, located in southwestern Bangladesh, is one of the country's principal seaports. The project's implementation will be led by the port authority under the government's shipping ministry.