South Korea KEXIM Bank loan agreement for Bangladeshrail and infrastructure

On June 27, Yoon Hee-sung, President of the Export-Import Bank of Korea (KEXIM), and Shamsul Alam, Deputy Minister of Finance, signed a significant loan agreement in Dhaka, Bangladesh, for the construction of the Karnaphuli railway-road bridge. This landmark agreement, involving a substantial loan of $810 million from KEXIM, marks a major step in enhancing Bangladesh's infrastructure. The total project cost is estimated at $1.24 billion, with the Bangladeshi government contributing $430 million. The Economic Development Cooperation Fund (EDCF) will provide $720 million, and the Economic Development Promotion Fund (EDPF) will contribute $90 million, making it the largest project ever supported by the EDCF.

The Karnaphuli Bridge project will involve the construction of a combined railway and road bridge over the Karnaphuli River in the southeastern Chattogram region, along with its connecting roads. Chattogram, as the main seaport of Bangladesh, is a critical economic hub, and the new bridge is expected to significantly improve transportation and logistics. This improvement will facilitate industrial advancement and economic growth in the region. President Yoon emphasized the importance of the project, highlighting the commitment of KEXIM to support essential infrastructure development in Bangladesh.

Bangladesh has been focusing on improving its transportation network to support economic growth and development, and the Karnaphuli Bridge project is a key part of these efforts. The bridge will enhance connectivity and facilitate industrial advancement, contributing to the country's overall economic development. The project also aligns with global development goals, such as the United Nations Sustainable Development Goals (SDGs), which emphasize building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation (SDG 9).

The loan agreement for the Karnaphuli Bridge project underscores the growing economic partnership between South Korea and Bangladesh. Over the years, the two countries have strengthened their bilateral relations, particularly in trade, investment, and development cooperation. As the project progresses, it is expected to bring significant benefits to the Chattogram region and Bangladesh as a whole, enhancing connectivity, supporting industrial growth, and contributing to sustainable development efforts.