Sunday, 19 September, 2021

$47m addl Korean loan for water supply project

  • Staff Correspondent
  • 30 June, 2021 12:00 AM
  • Print news
$47m addl Korean loan for water supply project

Popular News

Bangladesh is getting $47 million additional soft loan from the Korean government to implement a water supply project in the eastern part of the country.

A loan agreement on “Bhandal Jhuri Water Supply Project-Supplementary Loan” for the additional financing was signed between the two sides at a function in Dhaka on Tuesday.

The initial size of the funding from Korea for this project was $97 million. With this additional financing, total foreign assistance for this project will increase to $137 million.

Md Shahriar Kader Siddiky, Wing Chief (Asia, JEC and F&F), of Economic Relations Division (ERD) and Kim Tae-soo, Executive Director, the Export-Import Bank of Korea signed the deal on behalf of their respective sides, an ERD relase said.

The main objectives of this project is to Provide 60,000m3/day of safe water for domestic and non-domestic use by developing water supply system at the left bank of Karnaphuli River.

It will also secure sustainable source of water and improve the livelihood and promote economic development through provision of safe drinking water.

Since 1993, Korea Eximbank, a government agency of Korea, has been Providing soft loan for socio-economic infrastructure development and expansion of information technology  in Bangladesh.

Under the Local Government Division, Chattogram WASA is implementing “Bhandal Jhuri Water  Supply Project-Supplementary Loan”  project through Economic Development Cooperation Fund ( EDCF), Korea.

After the initiation of  ERD,  Korea government responded quickly for proving the supplementary loan, ERD officials said.

The additional funds will be disbursed within 30 June, 2023 by the Korea Eximbank, they added.

The new loans will bear 0.01 percent interest rate and its maturity period will be 40 years, including 15 years of grace period.