China has confirmed that it is giving $1.3 billion worth of preferential buyers' credit to Bangladesh to build the Dhaka-Ashulia elevated expressway.
Chinese EXIM Bank and the Bangladesh government's Economic Relations Division (ERD) signed a loan deal on October 26, ERD officials said on Thursday.
The loan will be utilised to construct the 24-kilometre four-lane expressway to ease traffic in Dhaka city.
ERD additional secretary Shahriar Kader Siddiky and EXIM Bank deputy general manager Zhang Tianqin inked the agreement.
The loan will mature in 20 years with 2.0-per cent interest rate. It will have five years' grace period from day one of the loan delivery.
According to the project details, the governed will build the freeway from Dhaka airport to Dhaka EPZ via Abdullahpur, Dhaur, Boro Ashulia-Jirabo and Baipail.
In addition, its ramp will be 10.84km, flyover 1.915km in Nabinagar, bridges 2.72km and drainage 18km.
The China National Machinery Import and Export Corporation has been selected for the project work, according to officials.
Road transport and bridges ministry officials say the work on the construction of the expressway is scheduled for completion by June 2026.
The overpass will cost an estimated Tk 169.01 billion. The Chinese bank will supply Tk 94.73 billion and nearly Tk 70 billion be borne by Bangladesh.
China is one of the largest bilateral development partners of Bangladesh as it has so far confirmed loans worth $7.80 billion for eight projects, including the one in question.
Following a 2016 memorandum of understanding, Dhaka requested Beijing to provide financial support for a total of 27 priority projects here.
