Bangladesh has secured a $335.78 million concessional loan from China’s Export-Import Bank to expand and modernise Mongla Port, including building two container terminals and dedicated cargo-handling yards. The loan agreement, worth RMB2.404 billion (Tk3,592.8975 crore or $335.78 million), was signed on 10 October, according to a press release from the Ministry of Finance’s Economic Relations Division (ERD).

Alia Meher, joint secretary at the ERD, and Fengjun Tian, assistant general manager of China Exim Bank, signed the agreement on behalf of their respective sides.

Under the project, the Mongla Port Authority, under the shipping ministry, will build two container terminals equipped with modern machinery. The project will also include a container yard, a container delivery yard, and a cargo-handling yard.

China Exim Bank will provide the loan at a concessional interest rate of 2%, with a 20-year repayment period, including a five-year grace period, the release said.

The project is expected to modernise port facilities and increase cargo-handling capacity at Mongla Port, Bangladesh’s second-largest seaport.