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Overview

China EXIM Bank pledges to provide $249 million for the modernization of the Mongla Port in Bangladesh in 2016

Commitments (Constant USD, 2023)$271,589,672
Commitment Year2016Country of ActivityBangladeshDirect Recipient Country of IncorporationBangladeshSectorTransport And StorageFlow TypeLoan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2016

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Mongla Port Authority

Implementing agencies

State-owned companies

  • China National Complete Engineering Corporation of China (CCEC)

Loan desecription

China EXIM Bank pledges to provide $249 million for the modernization of the Mongla Port in Bangladesh in 2016

Interest typeUnknown

Narrative

Full Description

Project narrative

During President Xi Jinping's 2016 state visit to Bangladesh from October 14-15, 2016, a Memorandum of Understanding was signed to finance the expansion and modernization of Mongla Port facilities. According to an October 2016 article from Asia News Network, the total estimated cost of the project was 550 million USD, of which China would provide 249 million USD through a soft loan. The remainder of the funding would be provided by the Government of Bangladesh. According to IJGlobal, China Exim Bank would provide a 350.7 million USD export credit facility for the project, and the Government of Bangladesh would provide 199.3 million USD of equity investment for the project. The transaction amount has been coded as 249 million USD, since this is the lowest figure reported. According to the October 2016 article from Asia News Network, China National Complete Engineering Corporation was selected to implement the project. The Mongla Port Authority website does not appear to include information related to Chinese financing or implementation of Mongla Port modernization, and the China National Complete Engineering Corporation website similarly does not seem to contain information related to this project. It is verified that CNCEC failed to acquire the funding and stopped communicating with the Bangladeshi side. On July 8, 2021, the government signed a MOU with China Civil Engineering Construction Company, who stated it would be able to fund the project. In 2023, it was announced that China had agreed to finance the port expansion and modernization project.