Bangladesh signs $335.78 million loan agreement with China for Mongla Port — NDTV

Bangladesh has signed a $335.78 million loan agreement with the Export-Import Bank of China to expand and modernize Mongla Port. The funds will be directed toward the construction of two container terminals with modern equipment, NDTV World reports.

Loan terms

According to the state agency Bangladesh Sangbad Sangstha, China confirmed concessional financing for the project at 2% per annum. The agreement was signed on October 10 by Aliya Meher of Bangladesh's Economic Relations Division and Fengjun Tian, assistant general manager of the Export-Import Bank of China.

The project also provides for the development of a container yard, a container delivery yard, and a cargo handling yard. The agreement was concluded following an arrangement reached during Bangladeshi Prime Minister Tariq Rahman's visit to China in June.

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Previous agreement with India

Earlier, India obtained the right to operate a terminal at Mongla Port under an agreement with India Ports Global Limited. The project aimed to strengthen regional transit and maritime trade within bilateral cooperation.

NDTV notes that after Tariq Rahman's visit to China, plans for Mongla Port and the Teesta Masterplan project came within the scope of Chinese involvement. India's Ministry of External Affairs had previously stated that it was monitoring developments in neighboring countries and would respond if necessary.

Bangladesh's Foreign Minister Khalilur Rahman previously told NDTV that Dhaka does not view its foreign policy as a zero-sum game and does not consider relations with other countries to be a problem.