Bangladesh has secured a $335.78 million concessional loan from China to support the expansion and modernization of Mongla Port, the country’s second-largest seaport. The loan agreement was signed on October 10 in Dhaka between the Bangladesh government and the Export–Import Bank of China, according to a statement from the Economic Relations Division of the Ministry of Finance.

The deal was formalized by Alia Meher, joint secretary of the Economic Relations Division, and Fengjun Tian, assistant general manager of the Chinese bank, representing their respective sides.

The upgrade project, titled “Expansion and Modernisation of Mongla Port Facilities,” aims to bolster the port’s capacity and operational efficiency. Planned improvements include the construction of two container terminals equipped with modern handling machinery, a container yard, a container delivery yard, and a cargo handling yard.

The loan terms specify an annual interest rate of 2.0 percent, with repayment scheduled over 20 years. A grace period of five years has been incorporated, allowing Bangladesh an initial window before repayments commence. The financing underscores Bangladesh’s ongoing efforts to enhance its maritime infrastructure and strengthen its role in regional trade.

Mongla Port, located in southwestern Bangladesh, plays a crucial role in facilitating the country’s import and export activities. The Chinese loan reflects broader economic cooperation between Bangladesh and China, particularly in infrastructure development projects designed to support Bangladesh’s economic growth and connectivity within South Asia.