Bangladesh has signed a $335.78 million concessional loan agreement with China to expand and modernise Mongla Port, the country’s second-largest seaport, located about 80 kilometres from the Indian border. The move is being closely watched in South Asia because of the port’s strategic location and its potential impact on regional trade and connectivity.
According to Bangladesh’s state-run BSS news agency, the funding will be used to construct two new container terminals and dedicated cargo-handling yards at Mongla Port. The project is intended to increase the facility’s capacity, improve efficiency and strengthen Bangladesh’s maritime infrastructure as trade volumes continue to grow.
The agreement is valued at 2.404 billion Chinese yuan, equivalent to approximately $335.78 million or 3,592 crore Bangladeshi taka. China will provide the financing through a concessional loan carrying a relatively low 2 per cent interest rate. The repayment period is set at 20 years, including a five-year grace period, giving Bangladesh favourable terms for the large infrastructure project.
The deal was signed between Bangladesh’s Economic Relations Division (ERD) and the Export-Import Bank of China (EXIM Bank) for the “Expansion and Modernisation of Mongla Port Facilities” project. Officials say the upgrade will help transform Mongla into a more competitive regional shipping hub capable of handling larger cargo volumes and supporting economic growth in the country’s southwest.
The development is notable because it comes roughly a year after Bangladesh’s interim administration cancelled a proposed Indian Economic Zone project planned near the same port area. That decision had drawn attention to the evolving balance of foreign investment and strategic interests in Bangladesh.
Analysts say the Mongla expansion reflects Dhaka’s continued effort to attract infrastructure financing while improving trade connectivity. Supporters argue the project will boost exports, logistics and industrial development, while critics are likely to examine the long-term implications of growing Chinese involvement in key infrastructure.
Once completed, the upgraded port is expected to strengthen Bangladesh’s position in regional maritime trade and improve cargo movement across the Bay of Bengal.