Under a supplementary agreement in the maritime sector, South Korea will provide Bangladesh with a loan of USD 626 million.

On Tuesday, a loan agreement was signed between the Government of Bangladesh and the Export-Import Bank of Korea (Korea Eximbank) for the implementation of the project titled “Establishment of Global Maritime Distress and Safety System (GMDSS) and Integrated Maritime Navigation System (IMNS).” The loan will be disbursed from Korea’s Economic Development Cooperation Fund (EDCF).

Mirana Mahrukh, Additional Secretary of the Economic Relations Division (ERD), and Kim Ki-sang, Director General of Korea Eximbank, signed the agreement on behalf of their respective governments.

According to a press release from the ERD, the Department of Shipping under the Ministry of Shipping will implement the project.

This follows an earlier loan agreement for USD 37.5 million already signed for the same project. The goal is to enhance maritime safety and communication by establishing seven coastal lighthouses and radio stations, along with a command and control center in Dhaka. The project also includes modernizing existing lighthouses and constructing new ones to enable continuous communication with vessels at sea.

Since 1993, Korea Eximbank has been providing concessional loans for Bangladesh’s priority development sectors.

The loan will carry an interest rate of 0.01% with a repayment period of 40 years and 5 months, including a grace period of 15 years and 5 months.