The government has signed a loan agreement of US$109.78 million, 29.42 million EUR and 132.49 million RMB with the Asian Infrastructure Investment Bank (AIIB) to implement the "Southern Chattogram and Kaliakoir Transmission Infrastructure Development Project".
Additional Secretary of Economic Relations Division Mirana Mahrukh and Rajat Misra, acting vice-president for Investment Clients Region I and Financial Institutions and Funds, Global (VP IC1) signed the agreement on behalf of the country and the AlIB respectively on December 10.
The Project Agreement was signed by SM Zafrul Hasan, Chief Engineer (Additional Charge), Power Grid Bangladesh PLC on behalf of the implementing agency, said an ERD press release here today.
This project has been taken by the Power Grid Bangladesh PLC 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 Kaliakoir regions of Bangladesh.
The loan will be received in standard terms and conditions of the AlIB. The Maturity Period of the loan is 32 years including 7 years 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. In addition, the Front End Fee is 0.25 percent of the loan amount (one-time) while Commitment Fee 0.25 percent of the undisbursed amount will be paid.
