In a significant boost to infrastructure development in Bangladesh, South Korea has committed US$815 million in loans for the construction of the Kalurghat railway cum road bridge in Chattogram.

The  loan agreement was signed in Dhaka on Thursday between the Economic Relations Division (ERD) of Bangladesh and the Korean EXIM Bank.

ERD Secretary Shahriar Kader Siddiky and Chairman and CEO of Korean EXIM Bank signed two separate loan deals to fund the much-anticipated Kalurghat bridge project.

According to the agreements, the Economic Development Cooperation Fund (EDCF) will provide a $724.73 million loan, while the Economic Development Promotion Facility (EDPF) will contribute $90.18 million.

The signing ceremony was attended by Finance Minister Abul Hassan Mahmood Ali, State Minister Waseqa Ayesha, Railway State Minister Md Zillul Hakim, and Korean Ambassador to Bangladesh Park Young-sik.

The Bangladesh Railway (BR) has recently undertaken a project at a cost of Tk115.66 billion and is awaiting approval from the Planning Commission.

Out of this cost, BR proposes to allocate Tk 44.37 billion from the government's internal resources, with the remaining Tk71.28 billion to be sourced from the Korean lender as a project loan.

The project, titled "Construction of rail-cum-road bridge over the river Karnaphuli at Kalurghat," is expected to commence shortly and aims to be completed by December 2030.

Finance Minister Abul Hassan Mahmood Ali highlighted the importance of the relationship between Bangladesh and South Korea, emphasising the wide range of cooperation in trade, investment, education, human resources development, and cultural exchanges.

He mentioned that the Korean EXIM Bank has been investing in numerous development projects and programmes and will continue to support with $6 billion until 2027.

He expressed confidence that the bilateral relationship with the Korean government will further strengthen.

State Minister for Railway Md Zillul Hakim echoed these sentiments, emphasising the reliability of South Korea as a partner in Bangladesh's development.

He stated that the support from the Korean EXIM Bank will enhance social and economic development initiatives in the country, further solidifying the bilateral relationship.

This project marks a significant milestone in Bangladesh's infrastructure development and reflects the strong partnership between Bangladesh and South Korea, said the people concerned.