On 10 October 2026, Bangladesh signed a concessional loan agreement worth $335.78 million with China’s Export-Import Bank to expand and modernise Mongla Port. The loan is equivalent to RMB 2.404 billion or Tk 3,592.8975 crore. The project, titled “Expansion and Modernisation of Mongla Port Facilities”, will be implemented by the Mongla Port Authority under the Ministry of Shipping.
Maritime Transport and Mongla Port
Mongla Port is in Bagerhat district in southwestern Bangladesh, on the Pashur River and near the Sundarbans. It is one of Bangladesh’s principal seaports and provides the country with access to maritime trade through the Bay of Bengal. Seaports support international trade by handling imports and exports, including containerised and bulk cargo. The loan agreement was signed by Alia Meher, Joint Secretary at Bangladesh’s Economic Relations Division, and Fengjun Tian, Assistant General Manager of China Exim Bank. The Economic Relations Division is part of Bangladesh’s Ministry of Finance and manages external economic assistance and development cooperation.
Container-Port Infrastructure
The project includes two container terminals equipped with modern machinery, a container yard, a container delivery yard and a cargo-handling yard. Container terminals receive, store and transfer containers between ships and land transport. Container yards provide space to store and organise containers before delivery or onward movement. The proposed facilities form part of the port’s expansion and modernisation programme. The Mongla Port Authority aims to complete the project by December 2028. The project’s total cost is Tk 4,068.23 crore, including a Tk 475.33 crore contribution from the Bangladesh government.
Concessional Loan Terms
China’s Export-Import Bank is providing the loan at a 2% interest rate, with a repayment period of 20 years. The repayment schedule includes a five-year grace period. A concessional loan generally carries terms more favourable than standard commercial borrowing, such as a lower interest rate or a longer repayment period.
Important Facts for Exams
- Mongla Port is located on the Pashur River in southwestern Bangladesh.
- The Economic Relations Division is Bangladesh’s government agency for external economic assistance.
- The project includes two container terminals and three types of yards: a container yard, a container delivery yard and a cargo-handling yard.
- The loan has a 2% interest rate, a 20-year repayment period and a five-year grace period.
Mongla Port’s expansion project has a scheduled completion date of December 2028. The Bangladesh government’s contribution to the project is Tk 475.33 crore.
