Bangladesh has signed a RMB 2.404 billion ($335.78 million or 3,592.8975 crore taka) loan agreement with the Export-Import Bank of China to expand and modernise facilities at Mongla Port.

The project, titled “Expansion and Modernisation of Mongla Port Facilities”, will be implemented by the Mongla Port Authority under the Ministry of Shipping.

Alia Meher, joint secretary of the Economic Relations Division (ERD), and Fengjun Tian, assistant general manager of the Export-Import Bank of China, signed the agreement on October 10 on behalf of their respective sides, according to an ERD press release issued on Monday.

The project includes the construction of two container terminals equipped with modern machinery, a container yard, a container delivery yard and a cargo handling yard.

Under the agreement, China will provide the loan at a concessional interest rate of 2%. The repayment period is 20 years, including a five-year grace period.