Summary
Bangladesh has signed a $335.78 million concessional loan with China’s Export-Import Bank to expand and modernize Mongla Port, its second-largest seaport. The 2% loan, repayable over 20 years with a five-year grace period, will fund two container terminals and dedicated cargo yards under a Tk 4,068 crore project due for completion by December 2028.
Article
Dhaka: Bangladesh has secured a concessional loan of $335.78 million from China’s Export-Import Bank to finance the expansion and modernization of Mongla Port, according to the Economic Relations Division (ERD) of the Ministry of Finance.
The loan agreement, worth RMB 2.404 billion (Tk 3,592.8975 crore), was signed on October 10, 2026. Alia Meher, Joint Secretary at the ERD, and Fengjun Tian, Assistant General Manager of China Exim Bank, signed on behalf of their respective sides.
What are the loan terms?
China will provide the loan at a concessional interest rate of 2%, with a repayment period of 20 years, including a five-year grace period.
What will the loan fund?
The Mongla Port Authority, under Bangladesh’s Ministry of Shipping, will build two container terminals equipped with modern handling equipment. The project also includes a container yard, a container delivery yard and a cargo-handling yard.
How much will the project cost?
The Executive Committee of the National Economic Council (ECNEC) approved the Tk 4,068.23 crore expansion and modernisation project in February 2025. Of that total, Tk 475.33 crore comes from the Bangladesh government, while the remaining Tk 3,592.90 crore, now secured, is the Chinese loan. The Mongla Port Authority is to complete the project by December 2028.
The project has been several years in the making. The port authority signed an MoU with China Civil Engineering Construction Company in July 2021, and ECNEC first approved a version of the project in 2023 at Tk 4,282.76 crore, including a Chinese loan of Tk 3,782.36 crore on a government-to-government basis. The revised cost and loan amount were set in the 2025 approval.
Why is Bangladesh expanding Mongla?
The government aims to turn Mongla into a regional hub. At the time of ECNEC approval, then Planning Adviser Wahiduddin Mahmud said greater container capacity could expand trade with Bhutan, Nepal and China.
Mongla’s importance has grown since the Padma Bridge opened in June 2022, improving road access from Dhaka to the country’s southwest. The port handled a record 59,736 TEUs in FY2019-20, a small volume compared with Chittagong, reflecting the gap Bangladesh hopes to close.
How does India figure in Mongla’s development?
Mongla is also the site of a separate capacity enhancement project financed through an Indian Exim Bank line of credit of about $530 million. That Tk 6,014.62 crore project includes two container terminals, container handling and delivery yards and a vessel jetty, with plans to add capacity of 15 million tonnes of cargo and 400,000 TEUs.
Why does it matter for regional shipping?
The Chinese loan places both Beijing and New Delhi in financing roles at the same strategically located port in the Bay of Bengal. For regional shippers, expanded container capacity at Mongla could offer an alternative to congested Chittagong for cargo bound for southwest Bangladesh and landlocked neighbours. How quickly the terminals are built, and whether shipping lines add calls, will determine whether Mongla can grow into the regional hub Dhaka envisions.
FAQs
How much has China lent for Mongla Port?
China’s Export-Import Bank is providing $335.78 million (RMB 2.404 billion, or Tk 3,592.90 crore).
What are the loan terms?
The loan carries a 2% interest rate and a 20-year repayment period, including a five-year grace period.
What will be built at Mongla Port?
Two container terminals, a container yard, a container delivery yard and a cargo-handling yard.
What is the total project cost?
The project costs Tk 4,068.23 crore, with Tk 475.33 crore from the Bangladesh government and the rest from the Chinese loan.
When will the project be completed?
The Mongla Port Authority is scheduled to finish the project by December 2028.
