Govt signs loan agreement with AIIB
The Project Agreement was signed by SM Zafrul Hasan, chief engineer (additional charge), Power Grid Bangladesh PLC on behalf of the implementing agency
The government has entered into a loan agreement of $109.78 million, €29.42 million, and ¥132.49 million with the Asian Infrastructure Investment Bank (AIIB) to implement the "Southern Chattogram and Kaliakair Transmission Infrastructure Development Project."
Mirana Mahrukh, additional secretary of the Economic Relations Division, and Rajat Misra, acting vice-president for Investment Clients Region-I and Financial Institutions and Funds, Global (VP IC1), signed the deal on behalf of the country and the AIIB, respectively, on 10 December, according to a press statement.
The project agreement was signed by SM Zafrul Hasan, chief engineer (Additional Charge) of Power Grid Bangladesh, on behalf of the implementing agency.
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This project has been undertaken by Power Grid Bangladesh under the Power Division of Bangladesh.
The main objective of the project is to improve the reliability and capacity of the power transmission network in the Southern Chattogram and Kaliakair regions of Bangladesh.
The loan will be received under the standard terms and conditions of the Beijing-headquartered multilateral development bank.
The maturity period of the loan is 32 years, including a seven-year grace period.
The interest rate of the loan: a) USD: SOFR + variable spread b) EUR: 6-Month EURIBOR + variable spread c) RMB: 3-month SHIBOR + variable spread.
Additionally, a front-end fee of 0.25% of the loan amount (one-time) and a commitment fee of 0.25% on the undisbursed amount will be paid.
