China provides $335.78m loan to modernise Mongla Port

Bangladesh has signed a US$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 agreement, signed on 10 October, is worth RMB 2.404 billion, equivalent to Tk3,592.90 crore, according to a press release issued by the Economic Relations Division (ERD).
Under the agreement, the Chinese government has confirmed concessional financing at an interest rate of 2%, with a repayment period of 20 years, including a five-year grace period.
The project, titled “Expansion and Modernisation of Mongla Port Facilities”, will be implemented by the Mongla Port Authority under the Ministry of Shipping.
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 bank. 

The project will include the construction of two container terminals, a container yard, a container delivery yard and a cargo-handling yard, alongside other necessary upgrades to port facilities.
The modernisation is expected to strengthen the port’s cargo-handling infrastructure and improve its capacity to handle container traffic.
The loan agreement marks another step in Bangladesh-China development cooperation, with Chinese financing supporting the planned expansion of one of Bangladesh’s key seaports.