KEXIM signs $0.81b loan agreement for Kalurghat point project

The Export-Import Bank of Korea (KEXIM) has signed a $0.81b loan agreement for construction of rail-cum-road bridge across the river Karnaphuli at Kalurghat point, Chattogram Project.

The loan agreement includes $0.72 billion from the Economic Development Cooperation Fund (EDCF) and $0.09 billion from Economic Development Promotion Facility (EDPF), reads a press release issued on Sunday.

KEXIM Chairman and CEO Hee-sung Yoon signed the loan agreement with the Ministry of Finance’s Economic Relations Division Secretary Md Shahriar Kader Siddiky. The signing took place on June 27 at the Economic Relations Division office.

Ambassador of the Republic of Korea to Bangladesh Young-sik Park also attended the signing ceremony.

With a total project cost of $1.24 billion, the project will receive $0.43 billion in funding from the Bangladeshi government, with the remaining $0.81 billion provided by EDCF and EDPF of South Korea.

Notably, this project marks the largest-ever EDCF supported endeavor and the first instance of combined financing from EDCF and EDPF in Bangladesh.

Upon completion, the bridge spanning the Karnaphuli River will serve as the sole rail-cum-road bridge between Chattogram Port and the industrial zone. This is expected to significantly reduce logistics costs, revitalize trade, and consequently contribute substantially to Bangladesh's economic growth.

This loan agreement establishes a tailored Official Development Assistance (ODA) designed specifically to address Bangladesh's extensive infrastructure development needs, in alignment with the Indo-Pacific Strategy, which is a principal component of the Korean Government's foreign policy agenda.

After the LA ceremony, KEXIM Chairman and CEO Hee-sung Yoon paid a courtesy call on Prime Minister Sheikh Hasina at her parliament office.

He emphasised, “The Korean government has expressed its strong admiration for Bangladesh's impressive economic trajectory.

“Recognising the Bangladesh government's commitment to fostering innovative industrial development policies, the Korean government and the KEXIM have pledged to further strengthen their support for Bangladesh's industrial development with EDCF and EDPF”