By Abbas Nazil
Bangladesh is poised to approve a long-delayed, Chinese-funded project to upgrade Mongla seaport, with China assuring a loan of Tk 35.93 billion ($335.78 million).
The development is expected to position Mongla as a regional port hub, enhancing trade and economic activities in the region.
The proposal, previously stalled, is set to be reviewed by the Executive Committee of the National Economic Council (ECNEC) on January 28.
The project was initially sidelined in 2020 by the Sheikh Hasina government in favor of a similar initiative funded by India.
However, the current interim government, following a regime change triggered by the August 5 student-led uprising, is now reconsidering the Chinese proposal.
The momentum for Dhaka-Beijing cooperation gained traction after Foreign Affairs Adviser Touhid Hossain’s recent visit to China, where he held talks with the Chinese foreign minister.
During the four-day trip, China reaffirmed its commitment to provide concessional loans for Mongla’s development, among other infrastructure projects.
Mongla seaport, Bangladesh’s second-largest, has become increasingly significant, especially with ongoing infrastructure improvements in the region connecting the capital, Dhaka.
The Mongla Port Authority (MPA) has been implementing a Tk 60.15-billion project since 2020, partially financed by Tk 44.59 billion in Indian loans.
However, the Chinese-funded project offers an opportunity to accelerate the port’s development and expand its capacity.
The western region of Bangladesh and its surrounding areas, considered the port’s hinterland, hold immense potential for international and regional trade.
The Mongla seaport has recently demonstrated this potential, setting records in ship arrivals, cargo handling, and revenue generation.
In 2020, the port handled 970 ships—the highest in its 70-year history—and generated a profit of Tk 1.30 billion despite limited operations.
China had initially proposed investing in the seaport several years ago, but the plan was shelved due to alleged geopolitical considerations by the previous administration.
The interim government’s positive reception of Beijing’s renewed proposal highlights its focus on securing more concessional loans and fast-tracking their confirmation to enhance infrastructure development.
With increasing attention from both India and China, Mongla is poised to become a strategic asset in the region’s trade network.
The anticipated approval of the Chinese-funded project marks a critical step in unlocking the port’s full potential, promising long-term economic benefits for Bangladesh.