The rail-road bridge over the Karnaphuli River will serve as the sole dual-purpose bridge between Chittagong Port and industrial zone upon completion.
This is expected to significantly reduce logistics costs, revitalize trade, and consequently contribute substantially to Bangladesh's economic growth, said the South Korean Embassy in Dhaka on Sunday.
With a total project cost of $1.24 billion, the project will receive $0.43 billion in funding from the Bangladeshi government, with the remaining $0.81 billion provided by EDCF and EDPF of South Korea.
Notably, this project marks the largest-ever EDCF supported endeavour and the first instance of combined financing from EDCF and EDPF in Bangladesh.
KEXIM has recently signed a $0.81 billion loan agreement for the construction of a rail-road bridge across the river Karnaphuli at Kalurghat point, Chittagong.
The loan agreement features $0.72 billion from Economic Development Cooperation Fund (EDCF) and $0.09 billion from Economic Development Promotion Facility (EDPF)
Export-Import Bank of Korea (KEXIM) Chairman and CEO Hee-sung Yoon signed the loan agreement with the Secretary, Economic Relations Division of the Ministry of Finance Md Shahriar Kader Siddiky.
The signing ceremony took place on Thursday at the Economic Relations Division office. The Ambassador of the Republic of Korea to Bangladesh Young-sik Park also attended the signing ceremony.
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, said the South Korean Embassy in Dhaka.
KEXIM Chairman and CEO Hee-sung Yoon also paid a courtesy call on Prime Minister Sheikh Hasina at her parliament office after the loan agreement signing ceremony.
“The Korean government has expressed its strong admiration for Bangladesh's impressive economic trajectory,” he said.
Recognizing the Bangladesh government's commitment to fostering innovative industrial development policies, the South Korean government and the KEXIM have pledged to further strengthen their support for Bangladesh's industrial development with EDCF and EDPF, he added.
