Bangladesh Secures $335.78 Million Chinese Concessional Loan for Mongla Port Modernisation

Key facts

• Bangladesh and China signed a $335.78 million (RMB 2.404 billion or Tk 3,592.90 crore) concessional loan agreement on October 10, 2026 in Dhaka to finance the expansion and modernisation of Mongla Port.
• The agreement was signed between Alia Meher, Joint Secretary of Bangladesh's Economic Relations Division (ERD), and Fengjun Tian, Assistant General Manager of the Export-Import Bank of China (Exim Bank), which is the lending entity.
• The loan carries a preferential interest rate of 2 per cent per annum with a 20-year tenure including a 5-year grace period.
• The project includes construction of two container terminals, cargo-handling yards, modern quay gantry cranes, automated cargo systems, and dredging and channel widening along the Pasur River.
• Mongla Port, Bangladesh's second-largest maritime gateway after Chattogram, is located about 80 kilometres from the Indian border.
• Mongla Port sits on the east bank of the Pasur River, roughly 71 nautical miles inland from the Bay of Bengal.
• The expansion was originally earmarked for Indian contractors under a bilateral Line of Credit framework, with Evita Constructions (a Hiranandani Group subsidiary) designated, but the Indian contract was cancelled due to delays and political transitions, allowing China to step in.
• Indian experts view the deal as part of China's 'String of Pearls' strategy in the Indian Ocean Region, alongside Gwadar (Pakistan), Hambantota (Sri Lanka), Kyaukphyu (Myanmar), and Djibouti.
• Mongla lies close to India's Siliguri Corridor, the narrow 22-kilometre strip of land connecting eastern India to its North-Eastern states.
• Bangladesh formally joined China's Belt and Road Initiative during President Xi Jinping's 2016 visit to Dhaka, unlocking over $20 billion in proposed infrastructure loans.
• China supplies roughly 70-80 per cent of the Bangladesh Armed Forces' military hardware, including submarines, frigates, fighter jets, and tanks.
• Bangladeshi Prime Minister Tarique Rahman visited Beijing in June 2026 as part of his first overseas trip in office.
• India is expected to respond by accelerating its own port projects, including Sittwe Port in Myanmar under the Kaladan Multi-Modal Transit Transport Project, Chabahar Port in Iran, and the Galathea Bay transshipment port in the Great Nicobar Island, while deepening rail, waterway, pipeline, and grid connectivity with Dhaka.