Bangladesh will receive $260 million from the Asian Infrastructure Investment Bank (AIIB) to implement the Kewatkhali bridge project in Mymensingh.

The Economic Relations Division (ERD) signed a deal with the AIIB on Monday in this regard. Fatima Yasmin, secretary of ERD and DJ Pandian, vice-president of Investment Operations (Region 1) of AIIB signed the deal on behalf of their respective sides.

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

READ: AIIB approves $260 million loan for Mymensingh bridge

The loan will be received in AIIB’s standard terms and conditions. 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, said 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 the land ports, EPZs and economic zones of the region, the ministry added.

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