C T Online Desk: Korea will provide US $0.81 billion for the construction of rail-cum-road bridge across the river Karnaphuli at Kalurghat point, Chattogram.
Construction of the bridge is expected to significantly reduce logistics costs, revitalise trade, and consequently contribute substantially to Bangladesh’s economic growth.
An agreement to this effect was signed on 27 June at the Economic Relations Division office in Dhaka.
Hee-sung Yoon, Chairman and CEO of the Export-Import Bank of Korea (KEXIM) signed the loan agreement with Shahriar Kader Siddiky, Secretary, of the Economic Relations Division, Ministry of Finance.
Young-sik Park, Ambassador of the Republic of Korea to Bangladesh, also attended the signing ceremony, according to a press release of the Embassy on Sunday (30 June).
With a total project cost of $1.24bn, the project will receive $0.43bn in funding from the Bangladeshi government, with the remaining $0.81bn provided by Korea Economic Development Co-operation Fund (EDCF) and Economic Development Promotion Fund (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,” reads the press release.
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 signing ceremony, Hee-sung Yoon, Chairman and CEO, of KEXIM paid a courtesy call to Prime Minister Sheikh Hasina at her parliament office.
He emphasised: “The Korean government has expressed its strong admiration for Bangladesh’s impressive economic trajectory. Recognizing 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.”
