KEXIM, ERD sign loan agreement on construction of rail-road bridge at Kalurghat

The Export-Import Bank of Korea (KEXIM) signed $0.81 billion loan agreement with for construction of rail-road bridge across the river Karnaphuli at Kalurghat point in Chattogram, said a press release,

The loan agreement features $0.72 billion from Economic Development Cooperation Fund (EDCF) and $0.09 billion from Economic Development Promotion Facility (EDPF).

Hee-sung Yoon, chairman and CEO, KEXIM signed the loan agreement with Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division, Ministry of Finance.

The signing took place on 27 June at the Economic Relations Division office.

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

With a total project cost of $1.24 billion, the project will receive $0.43bn in funding from the Bangladeshi government, with the remaining $0.81bn 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 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 LA ceremony, Hee-sung Yoon, vhairman and CEO, KEXIM paid a courtesy call on Prime Minister Sheikh Hasina at her parliament office.

He emphasized: “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”