AMN
South Korea will provide up to USD 3 billion to Bangladesh for the construction of its metro line MRT Line 4 and procurement of CNG buses and modernisation of the railway signalling system. A new Framework Arrangement was signed on Thursday, May 4 at Incheon, said an official release from the Embassy of South Korea in Bangladesh.
The signing ceremony for the USD 3 billion concessional loan from the Economic Development Cooperation Fund (EDCF) for the year 2023 through 2027 was signed on the occasion of the 56th Annual General Meeting of the Board of Governors of Asian Development Bank (ADB) held in Korea.
According to the Arrangement, the repayment period of the EDCF loans will be 40 years, including a 15 year grace period, with the annual interest rate between 0.01 percent and 0.05 percent.. The loan arrangement stipulates that the projects will be identified in close consultation between the two governments.
With the signing of the new framework arrangement, Bangladesh has become the second largest recipient of Korea’s Official Development Aid (ODA) across the globe. So far, the Korean government has supported 30 development projects with an aggregate amount of USD 1.7 billion through the EDCF.