AIIB lends $260m for Mymensingh bridge

The government has signed a loan agreement of $260 million with the Asian Infrastructure Investment Bank (AIIB) to construct the Kewatkhali bridge in Mymensingh.

Fatima Yasmin, secretary of the economic relations division at the finance ministry, and DJ Pandian, vice-president of Investment Operations (Region-1) of the AIIB, signed the agreement.

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Under the project, a 320-metre steel arch bridge, 780-metre approach bridge, 551-metre road overpass, 240-metre railway overpass, 6.20-kilometre highway with four lanes, including slow-moving vehicular traffic (SMVT) lanes and one toll plaza, will be constructed.

The loan will be received in standard terms and conditions of AIIB.

The repayment period of the loan is 33.5 years, including a five year grace period.

The payable front end fee is 0.25 per cent and the commitment fee is 0.25 per cent per annum for an undisbursed amount.

The Road Transport and Highways Division has taken the project as the capacity of the existing Shambhuganj Bridge over the Brahmaputra River in Mymensingh is inadequate against the huge pressure of vehicles, according to a press release of the finance ministry.

The implementation of the project will reduce the additional traffic congestion on the existing bridge and facilitate road connectivity between several districts in the division and land ports, EPZs and economic zones of the region, it said.

The Department of Roads and Highways will implement the project from July 2021 to June 2025.