$260m loan agreement signed with Asian Infrastructure Investment Bank

The government has signed a $260 million loan agreement with the Asian Infrastructure Investment Bank (AIIB) to build a bridge crossing the Brahmaputra River in Mymensingh.

To reduce traffic congestion on the existing Shambhuganj Bridge over the Brahmaputra River, the Roads and Highways Department (RHD) will build the proposed Kewatkhali Bridge on the river, says a press release.

According to the release, the construction of the new bridge is expected to facilitate road connectivity between several districts of Mymensingh division and land ports, EPZs, and economic zones in the region. Construction is scheduled to be completed by June 2025.

Economic Relations Division Secretary Fatima Yasmin, and AIIB Vice President (Investment Operations Region-1) DJ Pandian signed the agreement on behalf of their respective organisations.

The existing Shambhuganj Bridge, the 2nd China-Bangladesh friendship bridge over the Brahmaputra River, in Mymensingh, connects several districts of the division with Dhaka. Every day numerous vehicles, including trucks carrying stone, coal, and other imported materials from three major land ports located in Mymensingh division, use this bridge. The capacity of the bridge, built three decades ago, has now become inadequate for timely communication, says the press release.

Construction of the new bridge will attract new investments and open the door to economic development.

The project will cover the construction of a 320-metre long steel arch bridge, a 780-metre long approach to the bridge, a 551m road overpass, a 240m railway overpass, a 4 lane 6.20km highway, including SMVT lanes, and one toll plaza.

The repayment period of the loan is 33.5 years including a five year grace period, to be received under standard AIIB terms and conditions,. The payable front end fee is 0.25% and the commitment fee is 0.25% per annum for any undisbursed amount, reads the press release.