South Korea To Provide $3 Billion Loan To B’desh For Metro & Other Projects

Seoul: Bangladesh will receive up to USD 3 billion from South Korea for the development of its MRT Line 4 metro line, the purchase of CNG buses, and the modernization of the railway signalling system. According to a statement from the South Korean Embassy in Bangladesh, a new Framework Agreement was signed on May 4 in Incheon.

The 56th Annual General Meeting of the Board of Governors of the Asian Development Bank (ADB), which was held in Korea, served as the occasion for the signing ceremony for the USD 3 billion concessional loans from the Economic Development Cooperation Fund (EDCF) for the years 2023 through 2027.

The EDCF loans will be repaid over a 40-year period, with a 15-year grace period, and an annual interest rate between 0.01% and 0.05%, as per the agreement. According to the loan agreement, the projects must be chosen after thorough discussion between the two administrations.

Bangladesh is now the second-largest receiver of Korean official development assistance (ODA) worldwide after the signing of the new framework agreement. Through the EDCF, the Korean government has funded 30 development projects to date for a total of USD 1.7 billion.