On October 10, Bangladesh’s Economic Relations Division and China’s Export‑Import Bank signed a $335.78 million loan at 2 % interest to upgrade Mongla Port, financing two new container terminals, a container yard, a delivery yard and a cargo handling yard.
The loan follows Bangladesh Prime Minister Tarique Rahman’s June visit to China, during which the two governments agreed to deepen economic ties after strained India‑Bangladesh relations in August 2024.
India has long held rights to operate a terminal at Mongla through India Ports Global Limited, a strategic foothold it hopes to use to counter China’s growing presence in the Indian Ocean. The new loan effectively places the port’s expansion under Chinese control, a move that Delhi has described as a "close watch" situation.
Local port workers in Khulna district say the expansion will create up to 1,500 jobs, but some communities fear environmental impacts.
Construction is scheduled to begin in early 2027, with an expected completion in 2029, after Bangladesh finalizes environmental clearance and infrastructure contracts.